(NLRC), when the amendatory legislation expanding its jurisdiction, and removing
overseas employment related claims from the ambit of POEA jurisdiction. The case
was then raffled to Labor Arbiter, Vladimir Sampang.
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After considering the pleadings and evidences, on July 8, 1997, the Labor Arbiter
Vladimir P. L. Sampang, in conformity with petitioners plea to hold respondents
solidarily liable, granted all the damages, (plus legal interest), as prayed for by the
petitioner. The dispositive portion of his Decision reads:
WHEREFORE, premises considered, the respondents are hereby ordered to jointly
and solidarily pay complainants the following:
1. US$176,400.00 (US$2,100.00 x 12 months x 7 years)
or P4,586,400.00 (at P26.00 per US$1.00) by way of lost income;
2. interest at the legal rate of six percent (6%) per annum
or P1,238,328.00 (from November 1992 to May 1997 or 4 years);
3. moral damages of P200,000.00;
4. exemplary damages of P100,000.00; and
5. 10% of the total award, or P612,472.80, as attorneys fees.
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On appeal, private respondents raised before the National Labor Relations
Commission (NLRC) the following grounds:
(a) the action before the Arbiter, as he himself concedes, is a complaint
based on torts due to negligence. It is the regular courts of law which
have jurisdiction over the action;
(b) Labor Arbiters have jurisdiction over claims for damages arising from
employer-employee relationship (Art. 217, Section (a) (3));
(c) In this case, gross negligence is imputed to respondents Garate and
Asis, who have no employer-employee relationship with the late Capt.
Virgilio Tolosa;
(d) The labor arbiter has no jurisdiction over the controversy;