8/3/2019 Tiglao v. Manila Railroad

1/1

Tiglao vs. Manila Railroad

98 Phil 181

Art. 1180, Setting of Period

Issue

W/N a company may be excused for payment of salary diff of its retired employees when the

agreement is subject to condition that salary differentials from date of exhaustion will be paid whenfunds for the purpose are available, if the company is losing its business?

Facts

Petitioners are 35 retired employees of defendant company who sought to recover salary diff

due to them under MOA with defendant Under the MOA, employed affected by the standardized plan will receive standardized salaries

provided that any salary diff from date of exhaustion will be paid when funds for the purposeare available

Held

Art. 1180. When the debtor binds himself to pay when his means permit him to do so, theobligation shall be deemed to be one with a period, subject to the provisions of Article

1197.

MOA does not stipulate that salary diff shall be paid only from surplus profits It is not appearing that defendant was bankcrupt the obligation to pay said salary diff may be

considered as one with term whose duration has been left to the will of the debtor, so thatpursuant to art. 1197, the duration of the term may be fixed by courts