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SECONDDIVISION

[G.R.No.153660.June10,2003]

PRUDENCIO BANTOLINO, NESTOR ROMERO, NILO ESPINA, EDDIE LADICA,

ARMAN QUELING, ROLANDO NIETO, RICARDO BARTOLOME, ELUVER
GARCIA, EDUARDO GARCIA and NELSON MANALASTAS, petitioners, vs.
COCACOLABOTTLERSPHILS.,INC.,respondent.
DECISION
BELLOSILLO,J.:

This is a Petition for Review on Certiorari under Rule 45 of the Rules of Court assailing the
Decision of the Court of Appeals[1] dated 21 December 2001 which affirmed with modification the
decisionoftheNationalLaborRelationsCommissionpromulgated30March2001.[2]
On 15 February 1995 sixtytwo (62) employees of respondent CocaCola Bottlers, Inc., and its
officers,LiperconServices,Inc.,PeoplesSpecialistServices,Inc.,andInterimServices,Inc.,fileda
complaint against respondents for unfair labor practice through illegal dismissal, violation of their
securityoftenureandtheperpetuationoftheCaboSystem.Theythusprayedforreinstatementwith
fullbackwages,andthedeclarationoftheirregularemploymentstatus.
For failure to prosecute as they failed to either attend the scheduled mandatory conferences or
submittheirrespectiveaffidavits,theclaimsoffiftytwo(52)complainantemployeesweredismissed.
Thereafter,LaborArbiterJoseDeVeraconductedclarificatoryhearingstoelicitinformationfromthe
ten (10) remaining complainants (petitioners herein) relative to their alleged employment with
respondentfirm.
Insubstance,thecomplainantsaverredthatintheperformanceoftheirdutiesasroutehelpers,
bottle segregators, and others, they were employees of respondent CocaCola Bottlers, Inc. They
furthermaintainedthatwhenrespondentcompanyreplacedthemandpreventedthemfromentering
thecompanypremises,theyweredeemedtohavebeenillegallydismissed.
In lieu of a position paper, respondent company filed a motion to dismiss complaint for lack of
jurisdiction and cause of action, there being no employeremployee relationship between
complainants and CocaCola Bottlers, Inc., and that respondents Lipercon Services, Peoples
Specialist Services and Interim Services being bona fide independent contractors, were the real
employers of the complainants.[3] As regards the corporate officers, respondent insisted that they
couldnotbefaultedandbeheldliablefordamagesastheyonlyactedintheirofficialcapacitieswhile
performingtheirrespectiveduties.
On29May1998LaborArbiterJoseDeVerarenderedadecisionorderingrespondentcompany
to reinstate complainants to their former positions with all the rights, privileges and benefits due
regularemployees,andtopaytheirfullbackwageswhich,withtheexceptionofPrudencioBantolino
whose back wages must be computed upon proof of his dismissal as of 31 May 1998, already
amountedtoanaggregateofP1,810,244.00.[4]
In finding for the complainants, the Labor Arbiter ruled that in contrast with the negative
declarations of respondent companys witnesses who, as district sales supervisors of respondent
companydeniedknowingthecomplainantspersonally,thetestimoniesofthecomplainantsweremore
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credibleastheysufficientlysuppliedeverydetailoftheiremployment,specificallyidentifyingwhotheir
salesmen/drivers were, their places of assignment, aside from their dates of engagement and
dismissal.
On appeal, the NLRC sustained the finding of the Labor Arbiter that there was indeed an
employeremployeerelationshipbetweenthecomplainantsandrespondentcompanywhenitaffirmed
intotothelattersdecision.
Inaresolutiondated17July2001theNLRCsubsequentlydeniedforlackofmeritrespondents
motionforconsideration.
Respondent CocaCola Bottlers appealed to the Court of Appeals which, although affirming the
findingoftheNLRCthatanemployeremployeerelationshipexistedbetweenthecontendingparties,
nonetheless agreed with respondent that the affidavits of some of the complainants, namely,
PrudencioBantolino,NestorRomero,NiloEspina,RicardoBartolome,EluverGarcia,EduardoGarcia
and Nelson Manalastas, should not have been given probative value for their failure to affirm the
contentsthereofandtoundergocrossexamination.Asaconsequence,theappellatecourtdismissed
their complaints for lack of sufficient evidence. In the same Decision however, complainants Eddie
Ladica,ArmanQuelingandRolandoNietoweredeclaredregularemployeessincetheyweretheonly
onessubjectedtocrossexamination.[5]Thus
xxx(T)helaborarbiterconductedclarificatoryhearingstoferretoutthetruthbetweentheopposingclaimsof
thepartiesthereto.Hedidnotsubmitthecasebasedonpositionpapersandtheiraccompanyingdocumentary
evidenceasafullblowntrialwasimperativetoestablishthepartiesclaims.Astheirallegationswerepoles
apart,itwasnecessarytogivethemampleopportunitytorebuteachothersstatementsthroughcross
examination.Infact,privaterespondentsLadica,QuellingandNietoweresubjectedtorigidcrossexamination
bypetitionerscounsel.However,thetestimoniesofprivaterespondentsRomero,Espina,andBantolinowerenot
subjectedtocrossexamination,asshouldhavebeenthecase,andnoexplanationwasofferedbythemorbythe
laborarbiterastowhythiswasdispensedwith.Sincetheywererepresentedbycounsel,thelattershouldhave
takenstepssoasnottosquandertheirtestimonies.Butnothingwasdonebytheircounseltothateffect.[6]
PetitionersnowprayforrelieffromtheadverseDecisionoftheCourtofAppealsthat,instead,the
favorablejudgmentoftheNLRCbereinstated.
In essence, petitioners argue that the Court of Appeals should not have given weight to
respondentsclaimoffailuretocrossexaminethem.Theyinsistthat,unlikeregularcourts,laborcases
aredecidedbasedmerelyonthepartiespositionpapersandaffidavitsinsupportoftheirallegations
and subsequent pleadings that may be filed thereto. As such, according to petitioners, the Rules of
Courtshouldnotbestrictlyappliedinthiscasespecificallybyputtingthemonthewitnessstandtobe
crossexaminedbecausetheNLRChasitsownrulesofprocedurewhichwereappliedbytheLabor
Arbiterincomingupwithadecisionintheirfavor.
Initsdisavowalofliability,respondentcommentedthatsincetheotherallegedaffiantswerenot
presentedincourttoaffirmtheirstatements,muchlesstobecrossexamined,theiraffidavitsshould,
as the Court of Appeals rightly held, be stricken off the records for being selfserving, hearsay and
inadmissible in evidence. With respect to Nestor Romero, respondent points out that he should not
have been impleaded in the instant petition since he already voluntarily executed a Compromise
Agreement,WaiverandQuitclaiminconsiderationofP450,000.00.Finally,respondentarguesthatthe
instantpetitionshouldbedismissedinviewofthefailureofpetitioners[7]tosignthepetitionaswellas
theverificationandcertificationofnonforumshopping,inclearviolationoftheprinciplelaiddownin
Loquiasv.OfficeoftheOmbudsman.[8]
The crux of the controversy revolves around the propriety of giving evidentiary value to the
affidavits despite the failure of the affiants to affirm their contents and undergo the test of cross
examination.

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Thepetitionisimpressedwithmerit.TheissueconfrontingtheCourtisnotwithoutprecedentin
jurisprudence.TheoftcitedcaseofRabagov.NLRC[9]squarelygrapplesasimilarchallengeinvolving
theproprietyoftheuseofaffidavitswithoutthepresentationofaffiantsforcrossexamination.Inthat
case,weheldthattheargumentthattheaffidavitishearsaybecausetheaffiantswerenotpresented
for crossexamination is not persuasive because the rules of evidence are not strictly observed in
proceedings before administrative bodies like the NLRC where decisions may be reached on the
basisofpositionpapersonly.
InRasev.NLRC,[10]thisCourtlikewisesidelinedasimilarchallengewhenitruledthatitwasnot
necessary for the affiants to appear and testify and be crossexamined by counsel for the adverse
party.Torequireotherwisewouldbetonegatetherationaleandpurposeofthesummarynatureofthe
proceedingsmandatedbytheRulesandtomakemandatorytheapplicationofthetechnicalrulesof
evidence.
SouthernCotabatoDev.andConstructionCo.v.NLRC[11]succinctlystatesthatunderArt.221of
theLaborCode,therulesofevidenceprevailingincourtsoflawdonotcontrolproceedingsbeforethe
LaborArbiterandtheNLRC.Further,itnotesthattheLaborArbiterandtheNLRCareauthorizedto
adopt reasonable means to ascertain the facts in each case speedily and objectively and without
regardtotechnicalitiesoflawandprocedure,allintheinterestofdueprocess.Wefindnocompelling
reasontodeviatetherefrom.
To reiterate, administrative bodies like the NLRC are not bound by the technical niceties of law
and procedure and the rules obtaining in courts of law. Indeed, the Revised Rules of Court and
prevailing jurisprudence may be given only stringent application, i.e., by analogy or in a suppletory
character and effect. The submission by respondent, citing People v. Sorrel,[12] that an affidavit not
testified to in a trial, is mere hearsay evidence and has no real evidentiary value, cannot find
relevanceinthepresentcaseconsideringthatacriminalprosecutionrequiresaquantumofevidence
different from that of an administrative proceeding. Under the Rules of the Commission, the Labor
Arbiterisgiventhediscretiontodeterminethenecessityofaformaltrialorhearing.Hence,trialtype
hearingsarenotevenrequiredasthecasesmaybedecidedbasedonverifiedpositionpapers,with
supportingdocumentsandtheiraffidavits.
AstowhetherpetitionerNestorRomeroshouldbeproperlyimpleadedintheinstantcase,weonly
need to follow the doctrinal guidance set by Periquet v. NLRC[13] which outlines the parameters for
validcompromiseagreements,waiversandquitclaims
Notallwaiversandquitclaimsareinvalidasagainstpublicpolicy.Iftheagreementwasvoluntarilyenteredinto
andrepresentsareasonablesettlement,itisbindingonthepartiesandmaynotlaterbedisownedsimplybecause
ofachangeofmind.Itisonlywherethereisclearproofthatthewaiverwaswangledfromanunsuspectingor
gullibleperson,orthetermsofsettlementareunconscionableonitsface,thatthelawwillstepintoannulthe
questionabletransaction.Butwhereitisshownthatthepersonmakingthewaiverdidsovoluntarily,withfull
understandingofwhathewasdoing,andtheconsiderationforthequitclaimiscredibleandreasonable,the
transactionmustberecognizedasavalidandbindingundertaking.
In closely examining the subject agreements, we find that on their face the Compromise
Agreement[14]andRelease,WaiverandQuitclaim[15]aredevoidofanypalpableinequityastheterms
of settlement therein are fair and just. Neither can we glean from the records any attempt by the
parties to renege on their contractual agreements, or to disavow or disown their due execution.
Consequently,thesamemustberecognizedasvalidandbindingtransactionsand,accordingly,the
instantcaseshouldbedismissedandfinallyterminatedinsofarasconcernspetitionerNestorRomero.
Wecannotlikewiseaccommodaterespondentscontentionthatthefailureofallthepetitionersto
signthepetitionaswellastheVerificationandCertificationofNonForumShoppingincontravention
of Sec. 5, Rule 7, of the Rules of Court will cause the dismissal of the present appeal. While the
LoquiascaserequiresthestrictobservanceoftheRules,ithoweverprovidesanescapehatchforthe
transgressortoavoidtheharshconsequencesofnonobservance.Thus
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xxxxWefindthatsubstantialcompliancewillnotsufficeinamatterinvolvingstrictobservanceoftherules.
Theattestationcontainedinthecertificationonnonforumshoppingrequirespersonalknowledgebytheparty
whoexecutedthesame.Petitionersmustshowreasonablecauseforfailuretopersonallysignthecertification.
Utterdisregardoftherulescannotjustlyberationalizedbyharkingonthepolicyofliberalconstruction
(underscoringsupplied).
IntheirEx Parte Motion to Litigate as Pauper Litigants, petitioners made a request for a fifteen
(15)dayextension,i.e.,from24April2002to8May2002,withinwhichtofiletheirpetitionforreview
inviewoftheabsenceofacounseltorepresentthem.[16]Therecordsalsorevealthatitwasonlyon
10 July 2002 that Atty. Arnold Cacho, through the UST Legal Aid Clinic, made his formal entry of
appearance as counsel for herein petitioners. Clearly, at the time the instant petition was filed on 7
May 2002 petitioners were not yet represented by counsel. Surely, petitioners who are nonlawyers
couldnotbefaultedfortheprocedurallapsesincetheycouldnotbeexpectedtobeconversantwith
the nuances of the law, much less knowledgeable with the esoteric technicalities of procedure. For
thisreasonalone,theproceduralinfirmityinthefilingofthepresentpetitionmaybeoverlookedand
shouldnotbetakenagainstpetitioners.
WHEREFORE, the petition is GRANTED. The Decision of the Court of Appeals is REVERSED
and SET ASIDE and the decision of the NLRC dated 30 March 2001 which affirmed in toto the
decisionoftheLaborArbiterdated29May1998orderingrespondentCocaColaBottlersPhils.,Inc.,
toreinstatePrudencioBantolino,NiloEspina,EddieLadica,ArmanQueling,RolandoNieto,Ricardo
Bartolome,EluverGarcia,EduardoGarciaandNelsonManalastastotheirformerpositionsasregular
employees,andtopaythemtheirfullbackwages,withtheexceptionofPrudencioBantolinowhose
back wages are yet to be computed upon proof of his dismissal, is REINSTATED, with the
MODIFICATION that herein petition is DENIED insofar as it concerns Nestor Romero who entered
intoavalidandbindingCompromiseAgreementandRelease,WaiverandQuitclaimwithrespondent
company.
SOORDERED.
Quisumbing,AustriaMartinez,andCallejo,Sr.,JJ.,concur.
[1]PennedbyAssociateJusticeMartinS.Villarama,Jr.,concurredinbyAssociateJusticesConchitaCarpioMoralesand

SergioL.Pestano,formerNinthDivision,CourtofAppeals.
[2]PennedbyCommissionerVictorianoCalaycay,SecondDivision,NLRC,concurredinbyPresidingCommissionerRaulT.

AquinoandCommissionerAngelitaA.Gacutan.
[3]OriginalRecords,p.41.
[4]Id.at545.
[5]Rollo,p.26.
[6]Id.at32.
[7]Oftheseven(7)petitionersonlyRicardoBartolomesignedtheverificationandcertificationofnonforumshopping
[8]G.R.No.139396,15August2000,338SCRA62.
[9]G.R.No.82868,5August1991,200SCRA158.
[10]G.R.No.110637,7October1994,237SCRA523.
[11]G.R.No.121582,16October1997,280SCRA853.
[12]G.R.No.119332,29August1997,278SCRA368.
[13]G.R.No.91298,22June1990,186SCRA724.
[14]Rollo,p.82,AnnexA.
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[15]Id.at84,AnnexB.
[16]Petitionerscounselofrecord,Atty.ArmandoAmpil,hadsignifiedhisintentiontowithdrawfromthecaseinviewofhis

commitmentinotherequallyimportantcases.

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