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shall be allowed to file the necessary motion for the return or restitution of the amount
unjustly paid. The parties’ covenants, as well as the acknowledgment by the seafarer
of receipt in full of the judgment award, were embodied in a receipt of the judgment
award with undertaking. The CA, upon being informed of the settlement, dismissed the
petition for certiorari for being moot and academic. In support of the dismissal, the CA
also relied on Career Philippines. In reversing and setting aside the order of dismissal
issued by the CA, the Court in Transmarine wrote:
In Career Philippines, believing that the execution of the LA Decision was
imminent after its petition for injunctive relief was denied, the employer filed
before the LA a pleading embodying a conditional satisfaction of judgment
before the CA and, accordingly, paid the employee the monetary award in
the LA decision. In the said pleading, the employer stated that the
conditional satisfaction of the judgment award was without prejudice to its
pending appeal before the CA and that it was being made only to prevent
the imminent execution.
The CA later dismissed the employer’s petition for being moot and academic,
noting that the decision of the LA had attained finality with the satisfaction
of the judgment award. This Court affirmed the ruling of the CA, interpreting
the "conditional settlement" to be tantamount to an amicable settlement of
the case resulting in the mootness of the petition for certiorari, considering
(i) that the employee could no longer pursue other claims, and (ii) that the
employer could not have been compelled to immediately pay because it had
filed an appeal bond to ensure payment to the employee.
Stated differently, the Court ruled against the employer because the
conditional satisfaction of judgment signed by the parties was highly
prejudicial to the employee. The agreement stated that the payment of the
monetary award was without prejudice to the right of the employer to file a
petition for certiorari and appeal, while the employee agreed that she would
no longer file any complaint or prosecute any suit of action against the
employer after receiving the payment.
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In the present case, the Receipt of the Judgment Award with Undertaking
was fair to both the employer and the employee. As in Leonis Navigation,
the said agreement stipulated that respondent should return the amount to
petitioner if the petition for certiorari would be granted but without prejudice
to respondent’s right to appeal. The agreement, thus, provided available
remedies to both parties.
It is clear that petitioner paid respondent subject to the terms and
conditions stated in the Receipt of the Judgment Award with Undertaking.
Both parties signed the agreement. Respondent neither refuted the
agreement nor claimed that he was forced to sign it against his will.
Therefore, the petition for certiorari was not rendered moot despite
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