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682 Phil. 198
SECOND DIVISION
[ G.R. No. 179469, February 15, 2012 ]
C.F. SHARP & CO. INC. AND JOHN J. ROCHA, PETITIONERS, VS.
PIONEER INSURANCE & SURETY CORPORATION, WILFREDO C.
AGUSTIN AND HERNANDO G. MINIMO, RESPONDENTS.
DECISION
PEREZ, J.:
Whether a local private employment agency may be held liable for breach of contract
for failure to deploy a seafarer, is the bone of contention in this case.
Assailed in this petition for review are the Decision[1] dated 30 October 2003 and the
29 August 2007 Resolution of the Court of Appeals in CA-G.R. CV No. 53336 finding
petitioners C.F. Sharp Co. Inc. (C.F. Sharp) and John J. Rocha (Rocha) liable for
damages.
Responding to a newspaper advertisement of a job opening for sandblasters and
painters in Libya, respondents Wilfredo C. Agustin and Hernando G. Minimo applied
with C.F. Sharp sometime in August 1990. After passing the interview, they were
required to submit their passports, seaman’s book, National Bureau of Investigation
clearance, employment certificates, certificates of seminars attended, and results of
medical examination. Upon submission of the requirements, a Contract of Employment
was executed between respondents and C.F. Sharp. Thereafter, respondents were
required to attend various seminars, open a bank account with the corresponding
allotment slips, and attend a pre-departure orientation. They were then advised to
prepare for immediate deployment and to report to C.F. Sharp to ascertain the schedule
of their deployment.
After a month, respondents were yet to be deployed prompting them to request for the
release of the documents they had submitted to C.F. Sharp. C.F. Sharp allegedly
refused to surrender the documents which led to the filing of a complaint by
respondents before the Philippine Overseas Employment Administration (POEA) on 21
January 1991.
On 30 October 1991, POEA issued an Order finding C.F. Sharp guilty of violation of
Article 34(k) of the Labor Code, which makes it unlawful for any entity “to withhold or
deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and its
implementing rules and regulations.” Consequently, C.F. Sharp’s license was suspended
until the return of the disputed documents to respondents. POEA likewise declared that
it has no jurisdiction to adjudicate the monetary claims of respondents.
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