GUATSON INTERNATIONAL TRAVEL AND TOURS, INC VS NLRC CASE DIGEST

G.R. No. 100322 March 9, 1994
GUATSON INTERNATIONAL TRAVEL AND TOURS, INC., PHILIPPINE INTEGRATED LABOR ASSISTANCE CORPORATION, MERCURY EXPRESS INTERNATIONAL COURIER SERVICES, INC., petitioners,
vs.
NATIONAL LABOR RELATIONS COMMISSION AND JOLLY ALMORADIE, respondents.

CORPORATION LAW; ALTER EGO

FACTS:

• Jolly M. Almoradie was first employed by Mercury Express International Courier Service, Inc. (MEREX)  as Messenger, when it closed its operations, Almoradie was absorbed by MEREX's sister company Philippine Integrated Labor Assistance Corp. (Philac), likewise as Messenger. Almoradie was transferred to Guatson Travel, allegedly also a sister company of MEREX and Philac, as Liaison Officer and was promoted to the position of Sales Representative.

• Almoradie was reverted to the position of Messenger and he was again given the position of Account Executive, the nature of work of which is similar to that of a sales representative. Almoradie accepted the transfer with the understanding that he will solely discharge the duties of an account executive and will no longer be required to do messengerial work.

• Almoradie was allegedly summoned by Henry Ocier to his office and was there and then forced by the latter to resign. Ocier taunted Almoradie with threats that it he will not resign, he will file charges against him which would adversely affect his chances of getting employed in the future.

• Almoradie filed a complaint for illegal Dismissal

• The Labor Arbiter dismissed his case

• Upon Almoradie's appeal, the NLRC reversed the decision of the Labor Arbiter

• Anent NLRC's grant of separation pay and backwages to private respondent Jolly M. Almoradie, petitioners argues that the companies, Guatson Travel Company, Philac Merex have separate and distinct legal personalities such that the latter companies should not be held liable; assuming, for the sake of argument that private respondent was illegally dismissed.

ISSUE:

Whether or not the companies have separate and distinct legal personalities

HELD:

• YES. The three companies are owned by one family, such that majority of the officers of the companies are the same. 

• Under the doctrine of piercing the veil of corporate fiction, when valid ground exists, the legal fiction that a corporation is an entity with a juridical personality separate and distinct from its members or stockholders may be disregarded.

• The companies are located in one building and use the same messengerial service. Moreover, there was no showing that private respondent was paid separation pay when he was absorbed by Philac upon closure of Merex; nor was there evidence that he resigned from Philac when he transferred to Guatson Travel.