DOCTRINES: There is forum-shopping whenever, as a result of an adverse opinion in one forum, a party seeks a favorable opinion (other than by appeal or certiorari) in another. The principle applies not only with respect to suits filed in the courts but also in connection with litigations commenced in the courts while an administrative proceeding is pending, as in this case, in order to defeat administrative processes and in anticipation of an unfavorable administrative ruling and a favorable court ruling. This is specially so, as in this case, where the court in which the second suit was brought, has no jurisdiction.
FACTS:
In G.R. No. 85939
Private respondents were employees of Pangasinan Review, Inc. (PRI), a corporation engaged in the business of printing, bookbinding and publishing newspapers whose corporate life legally expired on October 27, 1982 after fifty years of corporate existence. However, it actually continued its business operations until it was advised by the SEC in a letter dated January 10, 1985.
The Board of Directors minus Zamuco and Mrs. Fernandez who were then absent, acting as a Board of Liquidators of the company passed a resolution conveying corporate properties of the defunct PRI, to the NPRI which had been newly incorporated.
The nineteen private respondents, among others, filed with the Chairman of the Board of Liquidators thru the SEC a written claim for payment of their separation pay and ECOLA, copy furnished to Atty. Zamuco, Chairman of the Board of Liquidators, and to the Ministry of Labor and Employment at Dagupan City. Atty. Zamuco directed the said claimants to submit supporting papers to the Chairman or Secretary of the Board of Liquidators so that their claims could be processed prompting the counsel of said claimants to move for the provisional dismissal of the NLRC case.
On October 9, 1986, however, the private respondents revived their claims with the MOLE Dagupan Office when nothing positive was arrived at. They filed a formal complaint against PRI for payment of their separation pay, 13th month pay, ECOLA and damages. LA Rimando rendered the disputed decision. PRI appealed. NLRC affirmed the appealed Decision of the LA.
LA Saludares, who replaced LA Rimando, called the parties to a conference but only the private respondents appeared. Fernandez (President of PRI) and Zabala (Board Chairman of NPRI) failed to appear on the two scheduled conferences. LA Olairez, who replaced LA Saludares, issued a Special Order for garnishment. NPRI filed a 3rd party claim on the levied/garnished properties but it was denied.
In G.R. No. 86968
Shortly before the 3rd party claim was denied by LA Olairez, NPRI filed with RTC Dagupan City a complaint against the labor arbiter and the private respondents for injunction and damages with prayer for restraining order and/or writ of preliminary injunction. Judge Sison of the RTC issued a TRO. Olairez filed a motion to dismiss on the ground of lack of jurisdiction but it was denied.
Aside from the Civil Case, Fernandez had filed a letter-complaint with the Ombudsman against petitioner Olairez, questioning the judgment award in the labor case. Olairez received a copy of the complaint.
ISSUE:
Whether petitioner is guilty of forum shopping. (YES)
HELD:
At the outset, We declare petitioner guilty of forum shopping when it filed, despite the pendency of G.R. 85939, Civil Case D9187 before the Regional Trial Court, Branch 40, Dagupan City. We agree with the Solicitor General that the petition (G.R. 85939) and the action before the Regional Trial Court involve "the same transactions, the same essential facts and circumstances”:
In the action before the Regional Trial Court, as in the action before this Honorable Court, the validity and legality of the proceedings in NLRC Case No. SUB-RAB-I-071-86 and the propriety of implementing the decision therein against the petitioner were the basic issues. So, too, the relief was basically the same: the prevention of such implementation or execution. (p.130, Rollo, G.R. 85939)
In the case of Villanueva v. Adre (G.R. No. 80863, April 27, 1989, 172 SCRA 876), We stated:
There is forum-shopping whenever, as a result of an adverse opinion in one forum, a party seeks a favorable opinion (other than by appeal or certiorari) in another. The principle applies not only with respect to suits filed in the courts but also in connection with litigations commenced in the courts while an administrative proceeding is pending, as in this case, in order to defeat administrative processes and in anticipation of an unfavorable administrative ruling and a favorable court ruling. This is specially so, as in this case, where the court in which the second suit was brought, has no jurisdiction.
DISPOSITIVE PORTION:
ACCORDINGLY, in G.R. No. 85939, the NLRC decision is AFFIRMED and the petition for certiorari is hereby DISMISSED. The temporary restraining order issued in said case is hereby SET ASIDE.
In G.R. No. 86968, the writ of certiorari is GRANTED. Civil Case No. D-9187 in the Regional Trial Court, Branch 40, Dagupan City is ordered DISMISSED for lack of jurisdiction of the said court.
Mr. Renato C. Zabala and Atty. Felipe P. de Vera, Sr., are required to show cause why they should not be held in contempt for having filed a complaint before the Regional Trial Court of Dagupan City and the Ombudsman on the same issue raised in this petition seeking the same prayer and relief. Atty. Felipe P. de Vera, Sr. is likewise directed to show cause why he should not be suspended from the practice of law by reason of his having committed an act of forum shopping, both within ten (10) days from receipt of this decision.
Double costs against private respondent New Pangasinan Review, Inc.
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