4/9/2020 E-Library - Information At Your Fingertips: Printer Friendly On 10 March 1995, respondents filed a Complaint for breach of contract and damages against C.F. Sharp and its surety, Pioneer Insurance and Surety Corporation (Pioneer Insurance), before the Regional Trial Court (RTC) of Pasay City. Respondents claimed that C.F. Sharp falsely assured them of deployment and that its refusal to release the disputed documents on the ground that they were already bound by reason of the Contract of Employment, denied respondents of employment opportunities abroad and a guaranteed income. Respondents also prayed for damages. Pioneer Insurance filed a cross claim against C.F. Sharp and John J. Rocha, the executive vice-president of C.F. Sharp, based on an Indemnity Agreement which substantially provides that the duo shall jointly and severally indemnify Pioneer Insurance for damages, losses, and costs which the latter may incur as surety. The RTC rendered judgment on 27 June 1996 favoring respondents, to wit: WHEREFORE, plaintiffs’ causes of action having been proved with a preponderance of evidence, judgment is hereby ordered as follows: a. Declaring the non-deployment of plaintiffs and the refusal to release documents as breach of contract; b. By way of compensatory damages, awarding $450 per month and $439 overtime per month, which should have been received by plaintiffs from other employers, making a joint and solidary obligation on the part of the two defendants – C.F. Sharp and Pioneer for the period covered by the employment contracts; c. Ordering each defendant to pay each plaintiff P50,000.00 as moral damages and another P50,000.00 each as exemplary damages; d. Ordering defendants to share in the payment to plaintiffs of P50,000.00 attorney’s fees; e. Defendants to pay litigation expenses and costs of suit.[2] The trial court ruled that there was a violation of the contract when C.F. Sharp failed to deploy and release the papers and documents of respondents, hence, they are entitled to damages. The trial court likewise upheld the cause of action of respondents against Pioneer Insurance, the former being the actual beneficiaries of the surety bond. On appeal, C.F. Sharp and Rocha raise a jurisdictional issue — that the RTC has no jurisdiction over the instant case pursuant to Section 4(a) of Executive Order No. 797 which vests upon the POEA the jurisdiction over all cases, including money claims, arising out of or by virtue of any contract involving workers for overseas employment. C.F. Sharp and Rocha refuted the findings of the trial court and maintained that the perfection and effectivity of the Contract of Employment depend upon the actual deployment of respondents. The Court of Appeals upheld the jurisdiction of the trial court by ruling that petitioners are now estopped from raising such question because they have actively participated in the proceedings before the trial court. The Court of Appeals further held that since elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/21758 2/11

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