In the case at bar, petitioner became the accredited recruitment agency of the principal,
M.S. Al Babtain Recruitment Office, on September 3, 1990, after MARS had filed on
July 5, 1990, its answer to Macarayas complaint for illegal dismissal. Petitioner got
involved only on January 9, 1992, when it was impleaded in the case upon MARS
motion. The case having been submitted for decision long before it became a party,
petitioner naturally filed an answer alleging its own claims against MARS.
Under the Rules of Court which were then in effect and applicable to the case at bar,
when MARS failed to file an answer to petitioners cross-claim, it should have been
declared in default with respect to such claim.xvii[17] In labor cases, however, technical
rules of procedure are not applicable,xviii[18] but may apply only by analogy or in a
suppletory character, for instance, when there is a need to attain substantial justice and
an expeditious, practical and convenient solution to a labor problem.xix[19] Hence, when
the POEA opted to overlook petitioners cross-claim against MARS, petitioner
was denied substantial justice.
MARS impleaded petitioner in the case after it had been submitted for decision and
one-and-a-half years after it had filed its answer. During this hiatus, the case lay
dormant in the POEA. It should be noted that petitioner became the accredited
recruitment agency on September 3, 1990, two months after MARS had filed its answer
to the complaint. The POEAs inaction ad interim provided MARS with an opportunity to
escape liability.
Basic principles of justice and equity, however, dictate that MARS should not be totally
cleared of its liability to Macaraya under the peculiar circumstances of this case. Section
6, Rule II, Book III of the POEA Rules may not be used as a shield against liability by a
recruitment agency that has been substituted by a foreign principal as its local
recruitment agency after it has clearly incurred liability in favor of an overseas worker.
After all, the POEA is presumed by law to have intended right and justice to prevailxx[20]
in promulgating its rules. Consequently, considering that it was MARS with whom
Macaraya entered into a contract and that it had been accorded due process at the
proceedings before the POEA, it is but meet and just that MARS be the one to be held
accountable for her claims.
In so ruling, the Court is not in any way invalidating Section 6, Rule II, Book III of the
POEA Rules. The presumption of its validity remains. Its application in this case should,
however, be an exception to the rule. Petitioner shall pay Macaraya the amount due her
under the assailed POEA decision, without prejudice to its right to be reimbursed by
MARS under the provision of the Civil Code that (w)hoever pays for another may
demand from the debtor what he has paid.xxi[21]
WHEREFORE, the resolutions of the NLRC dated March 21, 1994, and August 10,
1994, are hereby AFFIRMED, subject to the modification that respondent Mars
International Manpower, Inc. shall reimburse petitioner ABD Overseas Manpower