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Gagui v.

Dejero and Permejo (2013)

Facts:

Respondents Dejero and Permejo filed separate complaints for illegal dismissal
against PRO Agency Manila, and Al Mahwes.
LA found in their favor and held the agency and Al Mahwes liable for payment.
o Issued Writ of Execution but was unsatisfied.
o Respondents filed a motion to Implead PRO Agencys Corporate Officers and
Directors as Judgment Debtors.
o Gagui was included as the VP/Stockholder/Director of PRO Agency.
o Motion was granted and held Gagui as liable.
Gaguis bank deposit was garnished in the amount of P85K.
On another Writ of Execution (3rd na to), Gaguis 2 parcel of lands in Pampanga were
levied.
Gagui filed a Motion to Quash 3rd Alias Writ of Execution.
She alleged that apart from not being made aware that she was impleaded as one of
the parties to the case, the Decision did not hold her liable in any form whatsoever.
Impleading her for the purpose of execution was tantamount to modifying a decision
that had long become final and executory.
LA denied the Motion to quash on the ff grounds:
o Records disclosed that despite having been given sufficient notices to be able
to register an opposition, petitioner refused to do so, effectively waiving her
right to be heard;
o Under RA 8042, corporate officers may be held solidarily liable with the
placement agency for the judgment award.
NLRC: denied appeal.
o Insofar as overseas migrant workers are concerned, it is RA 8042 itself that
provides for the liability of the corporation and its officers and directors.
CA: affirmed NLRC.
o No need for petitioner to be impleaded because she is made solidarily liable
by express provision of the law.
o GR is that corporate officers, directors, and stockholders are not liable,
except when they are made liable for their corporate act by a specific
provision of law.

Issue + Ruling:

WON Gagui should be solidarily liable. NO.

At the outset, RA 8042 is a police power measure intended to regulate the


recruitment and deployment of OFWs. It aims to curb injustices and abuses suffered
by OFWs.
Sec. 10 of RA 8042 provides that the liability of the principal/employer and the
recruitment agency for any claims shall be joint and several.
In Sto. Tomas v. Salac, it was held that: pending adjudication of the case, the liability
of corporate officers and directors is not automatic. To make them solidarily liable
with their company, there must be finding that they were remiss in directing the
affairs of that company, such as sponsoring or tolerating the conduct of illegal
activities.
In the case, there was no finding of neglect on the part of Gagui. In fact, respondents
made no mention of any instance when petitioner allegedly failed to manage the
agency in accordance with law, thereby contributing to their illegal dismissal.
Gagui is correct that impleading her for the purpose of execution is tantamount to
modifying a decision that had long become final and executory.