NATIONAL MINES AND ALLIED WORKERS’ UNION (NAMAWU) et al. v. HON. ISIDRO VERA, et al.

Cuevas, J. 9 November 1984 GR No. L-4430

Doctrine The prohibition against injunctions or TROs in the Labor Code applies only to cases stemming from labor disputes.
Summary RTC issued an injunction against Union trying to levy property claimed by a third party in order to satisfy an NLRC judgment. Upheld by SC.
Facts  AWARD AND EXECUTION: Union won an NLRC judgment (ULP for unpaid compensations) against employer Philippine Iron
Mines amounting to ~P4.3-M. They obtained a writ of execution to satisfy the judgment against the properties in Rizal.
 KULANG ANG BAYAD: Unable to satisfy the judgment, properties in Camarines Norte were also levied.
 YUNG PAMBAYAD, PINAMBAYAD NA SA IBA: However, prior to the decision, the properties had been foreclosed and bought at
public auction by Manila Banking Corp. and Philippine Commercial and Industrial Bank. Union filed a case to annul the
foreclosure, which is still pending in the RTC as of this decision.
 BANKS’ CLAIM: On account of the auction sale, the banks filed for a preliminary injunction against Union and sheriffs from taking
the property. They based their rights as assignees to the mortgage originally constituted with the DBP, and that the Union
proceeded with the levy despite knowledge that they were no longer the employer’s property.
 INJUNCTION GRANTED: Judge Vera granted the injunction, holding that the banks are not a party to the NLRC award and thus
their property cannot be used to satisfy the judgment.
 Certiorari filed w/ SC
Ratio/Issues
I. Whether the issuance of the injunction was proper (YES)

(1) (see doctrine)

(2) As applied: The banks’ claim does not arise from a labor dispute but a mortgage, foreclosure and auction sale. This being a
civil proceeding under the RTC’s jurisdiction, the injunction was properly issued.
(3) Further, under the rules for execution, the right to levy property is without prejudice to the right of third persons or other
claimants vindicating their claim to the property by any proper action.
(4) The sheriff may not levy the property of parties not included in the NLRC decision.
(5) To sanction petitioners’ theory will result in deprivation of property without due process of law. To deny the injunction to
the banks would result in a greater evil than that sought to be avoided by the Labor Code provision in question.

Held Petition DISMISSED.

Prepared by: Job de Leon [Labor 2 | Prof. Daway]