G.R. No. 152318
http://sc.judiciary.gov.ph/jurisprudence/2009/april2009/152318.htm
Court of Appeals relied on our ruling in Air Service Cooperative v. Court of Appeals.
[29]
The
central issue in that case was whether a decision of a Labor Arbiter rendered without jurisdiction
over the subject matter may be annulled in a petition before a Regional Trial Court. That case may
be differentiated from the present case, since the Regional Trial Court does not have original or
appellate jurisdiction to review a decision rendered by a Labor Arbiter. In contrast, there is no doubt,
as affirmed by jurisprudence, that the Court of Appeals has jurisdiction to review, by way of its
original certiorari jurisdiction, decisions ruling on complaints for illegal dismissal.
Nonetheless, the Court of Appeals is correct in pronouncing the general rule that the proper
recourse from the decision of the Labor Arbiter is to first appeal the same to the NLRC. Air Services
is in fact clearly detrimental to petitioners position in one regard. The Court therein noted that on
account of the failure to correctly appeal the decision of the Labor Arbiter to the NLRC, such
[30]
judgment consequently became final and executory.
GTZ goes as far as to request that the Court
re-examine Air Services, a suggestion that is needlessly improvident under the circumstances. Air
Services affirms doctrines grounded in sound procedural rules that have allowed for the considered
and orderly disposition of labor cases.
[31]
The OSG points out, citing Heirs of Mayor Nemencio Galvez v. Court of Appeals,
that even
when appeal is available, the Court has nonetheless allowed a writ of certiorari when the orders of
the lower court were issued either in excess of or without jurisdiction. Indeed, the Court has ruled
before that the failure to employ available intermediate recourses, such as a motion for
reconsideration, is not a fatal infirmity if the ruling assailed is a patent nullity. This approach
suggested by the OSG allows the Court to inquire directly into what is the main issuewhether GTZ
enjoys immunity from suit.
The arguments raised by GTZ and the OSG are rooted in several indisputable facts. The
SHINE project was implemented pursuant to the bilateral agreements between the Philippine and
German governments. GTZ was tasked, under the 1991 agreement, with the implementation of the
contributions of the German government. The activities performed by GTZ pertaining to the SHINE
project are governmental in nature, related as they are to the promotion of health insurance in the
Philippines. The fact that GTZ entered into employment contracts with the private respondents did
not disqualify it from invoking immunity from suit, as held in cases such as Holy See v. Rosario,
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