tongko v. manulife

7/23/2019 Tongko v. Manulife

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TONGKO V. MANUFACTURERS LIFE 2008

VELASCO, JR.,J.:

The Case

This Petition for Reie! on Certior"ri #n$er R#%e &'

see(s the reers"% of the M"r)h 2*+ 200' ,e)ision -/of the

Co#rt of Ae"%s 1CA in CA3G.R. SP No. 882'4+ entit%e$ The

Manufacturers Life Insurance Co. (Phils.), Inc. v. National

Labor Relations Commission and Greorio !. Ton"o.The

"ss"i%e$ $e)ision set "si$e the ,e)ision $"te$ Sete56er 27+

200& "n$ Reso%#tion $"te$ ,e)e56er + 200& ren$ere$ 69

the N"tion"% L"6or Re%"tions Co55ission 1NLRC in NLRC NCR

CA No. 0&022030&.

The Facts

M"n#f")t#rers Life Ins#r"n)e Co. 1Phi%s.+ In). 1M"n#%ife is "

$o5esti) )oror"tion en:":e$ in %ife ins#r"n)e

6#siness. Ren"to A. Ver:e% ,e ,ios !"s+ $#rin: the erio$

5"teri"%+ its Presi$ent "n$ Chief E;e)#tie O

It is #n$erstoo$ "n$ ":ree$ th"t

the A:ent is "n in$een$ent )ontr")tor "n$nothin: )ont"ine$ herein sh"%% 6e )onstr#e$or interrete$ "s )re"tin: "n e5%o9er3e5%o9ee re%"tionshi 6et!een theCo5"n9 "n$ the A:ent.

; ; ; ;" The A:ent sh"%% )"n"ss for

"%i)"tions for Life Ins#r"n)e+ Ann#ities+Gro# o%i)ies "n$ other ro$#)ts o?ere$ 69the Co5"n9+ "n$ )o%%e)t+ in e;)h"n:e forroision"% re)eits iss#e$ 69 the A:ent+5one9 $#e or to 6e)o5e $#e to theCo5"n9 in rese)t of "%i)"tions oro%i)ies o6t"ine$ 69 or thro#:h the A:ent orfro5 o%i)9ho%$ers "%%otte$ 69 the Co5"n9to the A:ent for seri)in:+ s#6@e)t tos#6se#ent )onBr5"tion of re)eit of"95ent 69 the Co5"n9 "s ei$en)e$ 69"n O

="n#"r9 to ,e)e56er 0+ 2002 3 P 8'+0*.07200 3 +2&+747.2000 3 8+004+80.48*** 3 +7*7+8&.0'**8 3 &+80'+.4&**7 3 2+822+20.00-4/

The ro6%e5 st"rte$ so5eti5e in 200+ !hen

M"n#%ife instit#te$ 5"no!er $ee%o5ent ro:r"5s in the

re:ion"% s"%es 5"n":e5ent %ee%. Re%"tie thereto+ ,e ,ios

"$$resse$ " %etter $"te$ Noe56er + 200-&/to Ton:(o

re:"r$in: "n O)to6er 8+ 200 Metro North S"%es M"n":ers

Meetin:. In the %etter+ ,e ,ios st"te$>

The Brst ste to tr"nsfor5in: M"n#%ife into "6i: %e":#e %"9er h"s 6een er9 )%e"r toin)re"se the n#56er of ":ents to "t %e"st

+000 stron: for " st"rt. This 5"9 see5$i"5etri)"%%9 oose$ to the !"9 M"n#%ife!"s r#n !hen 9o# Brst @oine$ theor:"ni"tion. Sin)e then+ ho!eer+s#6st"nti"% )h"n:es h"e t"(en %")e in theor:"ni"tion+ "s these h"e 6een in#en)e$69 $ee%o5ents 6oth fro5 !ithin "n$!itho#t the )o5"n9.; ; ; ;The iss#es "ro#n$ ":ent re)r#itin: "re)entr"% to the inten$e$ o6@e)ties hen)e thenee$ for " Senior M"n":ers 5eetin: e"r%ier%"st 5onth !hen Kein OConnor+ SVPA:en)9+ too( to the oor to $eter5ine fro5
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o#r senior ":en)9 %e"$ers !h"t 5ore )o#%$6e $one to 6o%ster 5"no!er $ee%o5ent.At e"r%ier 5eetin:s+ Kein h"$ resente$infor5"tion !here ei$ent%9+ 9o#r Re:ion!"s the %o!est erfor5er 1on " er M"n":er6"sis in ter5s of re)r#itin: in 2000 "n$+ "sof to$"9+ )ontin#es to re5"in one of the%"::"r$s in this "re".hi%e $is)#ssions+ in :ener"%+ !ere ositieother th"n for )ert"in )o55ents fro5 9o#ren$ !hi)h !ere er)eie$ to 6e #n)"%%e$

for+ it 6e)"5e )%e"r th"t " one3on3one5eetin: !ith 9o# !"s ne)ess"r9 to ens#reth"t 9o# "n$ 5"n":e5ent+ !ere on thes"5e %"ne. As :%e"ne$ fro5 so5e of 9o#rreio#s )o55ents in rior 5eetin:s 16othin :ro# "n$ one3on3one+ it !"s not )%e"rth"t !e !ere ro)ee$in: in the s"5e$ire)tion.Kein he%$ s#6se#ent series of 5eetin:s!ith 9o# "s " res#%t+ one of !hi)h I @oine$6rie9. In those s#6se#ent 5eetin:s 9o#reiter"te$ )ert"in ie!s+ the "%i$it9 of!hi)h !e )h"%%en:e$ "n$ s#6se#ent%9fo#n$ "s h"in: no 6"sis.ith s#)h ie!s )o5in: fro5 9o#+ I !"s "

6it )on)erne$ th"t the rest of the MetroNorth M"n":ers 5"9 6e " 6it )onf#se$ "s tothe $ire)tions the )o5"n9 !"s t"(in:. Forthis re"son+ I so#:ht " 5eetin: !itheer9one in 9o#r 5"n":e5ent te"5+in)%#$in: 9o#+ to )%e"r the "ir+ so to se"(.This note is inten$e$ to )onBr5 the ite5sth"t !ere $is)#sse$ "t the s"i$ Metro NorthRe:ions S"%es M"n":ers 5eetin: he%$ "t the7F Conferen)e roo5 %"st 8 O)to6er.; ; ; ;Iss#e H 2> So5e M"n":ers "re #nh"9 !iththeir e"rnin:s "n$ !o#%$ !"nt to reert tothe osition of ":ents.This is "n often ree"te$ iss#e 9o# h"er"ise$ !ith 5e "n$ !ith Kein. For thisre"son+ I %")e$ the iss#e on the t"6%e6efore the rest of 9o#r Re:ions S"%esM"n":ers to erif9 its "%i$it9. As 9o# 5#sth"e note$+ no S"%es M"n":er )"5e for!"r$on their o!n to )onBr5 9o#r st"te5ent "n$it too( 9o# to n"5e M"%o# S"5son "s "so#r)e of the s"5e+ "n "%%e:"tion th"t M"%o#herse%f $enie$ "t o#r 5eetin: "n$ in 9o#rer9 resen)e.This on%9 )onBr5s+ Gre:+ th"t those rior)o55ents h"e no so%i$ 6"sis "t "%%. I no!6e%iee !h"t I h"$ tho#:ht "%% "%on:+ th"t

these "%%e:"tions !ere si5%9 5e"nt to5#$$%e the iss#es s#rro#n$in: the in"6i%it9of 9o#r Re:ion to 5eet its ":en)9$ee%o5ent o6@e)tiesIss#e H 4> S"%es M"n":ers "re $oin: !h"tthe )o5"n9 "s(s the5 to $o 6#t+ in thero)ess+ the9 e"rn %ess.; ; ; ;A%% the "6oe not!ithst"n$in:+ !e h"$ 9o#ro!n re)or$s )he)(e$ "n$ !e fo#n$ th"t 9o#5"$e " %ot 5ore 5one9 in the Je"r 2000ers#s ***. In "$$ition+ 9o# "%soo%#nteere$ the infor5"tion to Kein !hen

9o# s"i$ th"t 9o# ro6"6%9 !i%% 5"(e 5ore5one9 in the Je"r 200 )o5"re$ to Je"r2000. O6io#s%9+ 9o#r "6oe st"te5ent"6o#t 5"(in: %ess 5one9 $i$ not refer to9o# 6#t the !"9 9o# "r:#e$ this oint h"$#s "%5ost 6e%iein: th"t 9o# !ere so#tin:the :ose% of tr#th !hen 9o# !ere not. ; ; ;; ; ; ;A%% of " s#$$en+ Gre:+ I h"e 6e)o5e 5#)h5ore !orrie$ "6o#t 9o#r "6i%it9 to %e"$ this

:ro# to!"r$s the ne! $ire)tion th"t !eh"e 6een $is)#ssin: these "st fe! !ee(s+i.e.+ M"n#%ifes :o"% to 6e)o5e " 5"@or":en)93%e$ $istri6#tion )o5"n9 inthe Phi%iines. hi%e "s 9o# )%"i5+ 9o#h"e not stoe$ "n9one fro5 re)r#itin:+ Ih"e neer he"r$ 9o# ro")tie%9 #sh for:re"ter ":en)9 re)r#itin:. Jo# h"e not6een ro")tie "%% these 9e"rs !hen it)o5es to ":en)9 :ro!th.; ; ; ;I )"nnot "?or$ to see " 5"@or re:ion f"i% to$e%ier on its $ee%o5ent"% :o"%s ne;t 9e"r"n$ so+ !e "re 5"(in: the fo%%o!in:

)h"n:es in the interi5>. Jo# !i%% hire "t 9o#r e;ense" )o5etent "ssist"nt !ho )"n#n%o"$ 9o# of 5#)h of the ro#tinet"s(s !hi)h )"n 6e e"si%9$e%e:"te$. This "ssist"nt sho#%$ 6eso )hosen "s to )o5%e5ent 9o#rs(i%%s "n$ he% 9o# in the "re"s!here 9o# fee% 5"9 not 6e 9o#r)# of te".Jo# h"e st"te$+ if not i5%ie$+ th"t9o#r !or( "s Re:ion"% M"n":er5"9 6e too t";in: for 9o# "n$ for9o#r he"%th. The "6oe )o#%$ so%ethis ro6%e5.; ; ; ;2. E?e)tie i55e$i"te%9+ Kein"n$ the rest of the A:en)9Oer"tions !i%% $e"% !ith the NorthSt"r Dr"n)h 1NSD in "#tono5o#sf"shion. ; ; ;I h"e $e)i$e$ to 5"(e this )h"n:eso "s to re$#)e 9o#r s"n of)ontro% "n$ "%%o! 9o# to)on)entr"te 5ore f#%%9 onoerseein: the re5"inin: :ro#s#n$er Metro North+ 9o#r Centr"%Unit "n$ the rest of the S"%esM"n":ers in Metro North. I !i%% ho%$

9o# so%e%9 resonsi6%e for 5eetin:the o6@e)ties of these re5"inin::ro#s.

; ; ; ;The "6oe )h"n:es )"n en$ "t this oint"n$ the9 nee$ not :o "n9 f#rther. This+ho!eer+ is entire%9 $een$ent #on 9o#.D#t 9o# h"e to #n$erst"n$ th"t 5eetin:)oror"te o6@e)ties 69 eer9one is ri5"r9"n$ !i%% not 6e )o5ro5ise$. e "re5eetin: to#:h )h"%%en:es ne;t 9e"r "n$ I!o#%$ !"nt eer96o$9 on 6o"r$. An9resist"n)e or ho%$in: 6")( 69 "n9one !i%% 6e$e"%t !ith "))or$in:%9.


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S#6se#ent%9+ ,e ,ios !rote Ton:(o "nother %etter

$"te$ ,e)e56er 8+ 200+-'/ter5in"tin: Ton:(os seri)es+

th#s>

It !o#%$ "e"r+ ho!eer+ th"t

$esite the series of 5eetin:s "n$

)o55#ni)"tions+ 6oth one3on3one 5eetin:s6et!een 9o#rse%f "n$ SVP Kein OConnor+so5e of the5 !ith 5e+ "s !e%% "s :ro#5eetin:s !ith 9o#r S"%es M"n":ers+ "%%these e?orts h"e f"i%e$ in he%in: 9o# "%i:n9o#r $ire)tions !ith M"n":e5ents "o!e$":en)9 :ro!th o%i)9.

; ; ; ;On "))o#nt thereof+ M"n":e5ent is

e;er)isin: its rero:"tie #n$er Se)tion &of 9o#r A:ents Contr")t "s !e "re no!iss#in: this noti)e of ter5in"tion of 9o#rA:en)9 A:ree5ent !ith #s e?e)tie Bfteen$"9s fro5 the $"te of this %etter.

Therefro5+ Ton:(o B%e$ " Co5%"int $"te$ Noe56er

2'+ 2002 !ith the NLRC ":"inst M"n#%ife for i%%e:"%

$is5iss"%. The )"se+ $o)(ete$ "s NLRC NCR C"se No. 3

0440302+ !"s r"e$ to L"6or Ar6iter M"rit" V. P"$o%in".

In the Co5%"int+ Ton:(o+ in " 6i$ to est"6%ish "n

e5%o9er3e5%o9ee re%"tionshi+ "%%e:e$ th"t ,e ,ios :"e

hi5 se)iB) $ire)ties on ho! to 5"n":e his "re" of

resonsi6i%it9 in the %"tters %etter $"te$ Noe56er + 200. e

f#rther )%"i5e$ th"t M"n#%ife e;er)ise$ )ontro% oer hi5 "s

fo%%o!s>

S#)h )ontro% !"s )ert"in%9 e;er)ise$ 69reson$ents oer the herein )o5%"in"nt. It!"s M"n#%ife !ho hire$+ ro5ote$ "n$ :"e"rio#s "ssi:n5ents to hi5. It !"s the)o5"n9 !ho set o6@e)ties "s re:"r$sro$#)tions+ re)r#it5ent+ tr"inin: ro:r"5s"n$ "%% ")tiities ert"inin: to its 6#siness.M"n#%ife res)ri6e$ " Co$e of Con$#)t

!hi)h !o#%$ :oern in 5in#te $et"i% "%%"se)ts of the !or( to 6e #n$ert"(en 69e5%o9ees+ in)%#$in: the s"%es ro)ess+ the#n$er!ritin: ro)ess+ si:n"t#res+ h"n$%in:of 5one9+ o%i)9ho%$er seri)e+)onB$enti"%it9+ %e:"% "n$ re:#%"tor9re#ire5ents "n$ :ro#n$s for ter5in"tion ofe5%o95ent. The %etter of Mr. ,e ,ios$"te$ 0 Noe56er 200 %eft no $o#6t "s to!ho !"s in )ontro%. The s#6se#entter5in"tion %etter $"te$ 8 ,e)e56er200 ":"in est"6%ishe$ in no #n)ert"inter5s the "#thorit9 of the hereinreson$ents to )ontro% the e5%o9ees ofM"n#%ife. P%"in%9+ the reson$ents !ie%$e$)ontro% not on%9 "s to the en$s to 6e

")hiee$ 6#t the !"9s "n$ 5e"ns of"tt"inin: s#)h en$s.-/

Ton:(o 6o%stere$ his "r:#5ent 69 )itin: Insular Life

#ssurance Co., Ltd. v. NLRC ($th%ivision)-7/"n$ Great Paci&c

Life #ssurance Cor'oration v. NLRC+-8/!hi)h Ton:(o )%"i5e$ to

6e si5i%"r to the inst"nt )"se.

Ton:(o f#rther )%"i5e$ th"t his $is5iss"% !"s !itho#

6"sis "n$ th"t he !"s not "?or$e$ $#e ro)ess. e "%so )ite$

the M"n#%ife Co$e of Con$#)t 69 !hi)h his ")tions !ere

)ontro%%e$ 69 the )o5"n9.

M"n#%ife then B%e$ " Position P"er !ith Motion to

,is5iss $"te$ Fe6r#"r9 27+ 2004+-*/in !hi)h it "%%e:e$ th"t

Ton:(o is not its e5%o9ee+ "n$ th"t it $i$ not e;er)ise )ontro

oer hi5. Th#s+ M"n#%ife )%"i5e$ th"t the NLRC h"s no

@#ris$i)tion oer the )"se.

In " ,e)ision $"te$ Ari% '+ 200&+ L"6or Ar6ite

M"rit" V. P"$o%in" $is5isse$ the )o5%"int for %")( of "n

e5%o9er3e5%o9ee re%"tionshi. P"$o%in" fo#n$ th"t "%9in:

the fo#r3fo%$ test in $eter5inin: the e;isten)e of "n e5%o9er3

e5%o9ee re%"tionshi+ none !"s fo#n$ in the inst"n

)"se. The $isositie ortion thereof st"tes>

EREFORE+ re5ises )onsi$ere$+

@#$:5ent is here69 ren$ere$ ,ISMISSINGthe inst"nt )o5%"int for %")( of @#ris$i)tion+there 6ein: no e5%o9er3e5%o9eere%"tionshi 6et!een the "rties.

SO OR,ERE,.

Ton:(o "e"%e$ the "r6iters ,e)ision to the NLRC

!hi)h reerse$ the s"5e "n$ ren$ere$ " ,e)ision

$"te$ Sete56er 27+ 200& Bn$in: Ton:(o to h"e 6een

i%%e:"%%9 $is5isse$.

The NLRCs First ,iision+ !hi%e Bn$in: "n e5%o9er

e5%o9ee re%"tionshi 6et!een M"n#%ife "n$ Ton:(o "%9in:

the fo#r3fo%$ test+ he%$ M"n#%ife %i"6%e for i%%e:"% $is5iss"%. It

f#rther st"te$ th"t M"n#%ife e;er)ise$ )ontro% oer Ton:(o "s

ei$en)e$ 69 the %etter $"te$ Noe56er + 200 of ,e ,ios

"n$ !rote>
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The "6oe35entione$ %etter sho!s

the e;tent to !hi)h reson$ents )ontro%%e$)o5%"in"nts 5"nner "n$ 5e"ns of $oin:his !or( "n$ ")hiein: the :o"%s set 69reson$ents. The %etter sho!s ho!reson$ents )on)erne$ the5se%es !ith the5"nner )o5%"in"nt 5"n":e$ the MetroNorth Re:ion "s Re:ion"% S"%es M"n":er+ tothe oint th"t reson$ents een h"$ " s"9on ho! )o5%"in"nt inter")te$ !ith otherin$ii$#"%s in the Metro North Re:ion. The

%etter is in f")t re%ete !ith )o55ents "n$)riti)is5s on ho! )o5%"in"nt )"rrie$ o#this f#n)tions "s Re:ion"% S"%es M"n":er.

More i5ort"nt%9+ the %etter)ont"ins "n "6#n$"n)e of $ire)ties oror$ers th"t "re inten$e$ to $ire)t%9 "?e)t)o5%"in"nts "#thorit9 "n$ 5"nner of)"rr9in: o#t his f#n)tions "s Re:ion"% S"%esM"n":er.-0/; ; ;

A$$ition"%%9+ the First ,iision "%so r#%e$ th"t>

F#rther ei$en)e of -reson$ents/

)ontro% oer )o5%"in"nt )"n 6e fo#n$ inthe re)or$s of the )"se. -These/ "re the$i?erent )o$es of )on$#)t s#)h "s the A:entCo$e of Con$#)t+ the M"n#%ife Fin"n)i"%Co$e of Con$#)t+ "n$ the M"n#%ife Fin"n)i"%Co$e of Con$#)t A:ree5ent+ !hi)h sere "sthe fo#n$"tions of the o!er of )ontro%!ie%$e$ 69 reson$ents oer )o5%"in"ntth"t is f#rther 5"nifeste$ in the $i?erent"$5inistr"tie "n$ other t"s(s th"t he isre#ire$ to erfor5. These )o$es of )on$#)t)orro6or"te "n$ reinfor)e the $is%"9 ofreson$ents o!er of )ontro% in their 0Noe56er 200 Letter to )o5%"in"nt.-/

The falloof the Sete56er 27+ 200& ,e)ision re"$s>


the "e"%e$ ,e)ision is here69 reerse$"n$ set "si$e. e Bn$ )o5%"in"nt to 6e "re:#%"r e5%o9ee of reson$ent M"n#%ife"n$ th"t he !"s i%%e:"%%9 $is5isse$ fro5e5%o95ent 69 reson$ents.

In %ie# of reinst"te5ent+

reson$ent M"n#%ife is here69 or$ere$ to"9 )o5%"in"nt se"r"tion "9 "s "6oeset forth. Reson$ent M"n#%ife is f#rtheror$ere$ to "9 )o5%"in"nt 6")(!":es fro5the ti5e he !"s $is5isse$ on 02 ="n#"r9

2002 # to the Bn"%it9 of this $e)ision "%so"s in$i)"te$ "6oe.; ; ; ;A%% other )%"i5s "re here69

$is5isse$ for #tter %")( of 5erit.

Fro5 this ,e)ision+ M"n#%ife B%e$ " 5otion for

re)onsi$er"tion !hi)h !"s $enie$ 69 the NLRC First ,iision in

" Reso%#tion $"te$ ,e)e56er + 200&.-2/

Th#s+ M"n#%ife B%e$ "n "e"% !ith the CA $o)(ete$

"s CA3G.R. SP No. 882'4. There"fter+ the CA iss#e$ the

"ss"i%e$ ,e)ision $"te$ M"r)h 2*+ 200'+ Bn$in: the "6sen)e

of "n e5%o9er3e5%o9ee re%"tionshi 6et!een the "rties

"n$ $ee5in: the NLRC !ith no @#ris$i)tion oer the )"se. The

CA "rrie$ "t this )on)%#sion !hi%e ":"in "%9in: the fo#r3fo%$

test. The CA fo#n$ th"t M"n#%ife $i$ not e;er)ise )ontro% oe

Ton:(o th"t !o#%$ ren$er the %"tter "n e5%o9ee of M"n#%ife

The $isositie ortion re"$s>


the resent etition is here69 GRANTE, "n$the !rit r"9e$ for "))or$in:%9GRANTE,.The "ss"i%e$ ,e)ision $"te$Sete56er 27+ 200& "n$ Reso%#tion $"te$,e)e56er + 200& of the N"tion"% L"6orRe%"tions Co55ission in NLRC NCR C"se No.

0033044032002 1NLRC NCR CA No.0&022030& "re here69 ANNULLE, "n$ SETASI,E. The ,e)ision $"te$ Ari% '+ 200& ofL"6or Ar6iter M"rit" V. P"$o%in" is here69REINSTATE,.

en)e+ Ton:(o B%e$ this etition "n$ resente$ the

fo%%o!in: iss#es>

A

The Co#rt of Ae"%s )o55itte$:r"e "6#se of $is)retion in :r"ntin:reson$ents etition for )ertior"ri.

D

The Co#rt of Ae"%s )o55itte$:r"e "6#se of $is)retion in "nn#%%in: "n$settin: "si$e the ,e)ision $"te$ Sete56er27+ 200&"n$ Reso%#tion $"te$ ,e)e56er +200& in Bn$in: th"t there is no e5%o9er3e5%o9ee re%"tionshi 6et!een etitioner"n$ reson$ent.

C

The Co#rt of Ae"%s )o55itte$:r"e "6#se of $is)retion in "nn#%%in: "n$settin: "si$e the ,e)ision $"te$ Sete56er27+ 200&"n$ Reso%#tion $"te$ ,e)e56er +200& !hi)h fo#n$ etitioner to h"e 6een

i%%e:"%%9 $is5isse$ "n$ or$ere$ hisreinst"te5ent !ith "95ent of 6")(!":es.-4/

Rest"te$+ the iss#es "re> 1 "s there "n e5%o9er3e5%o9ee

re%"tionshi 6et!een M"n#%ife "n$ Ton:(o "n$ 12 If 9es+ !"s

M"n#%ife :#i%t9 of i%%e:"% $is5iss"%

The Courts Ruling
http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn10http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn10http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn11http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn12http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn13http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn10http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn11http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn12http://sc.judiciary.gov.ph/jurisprudence/2008/november2008/167622.htm#_ftn13


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This etition is 5eritorio#s.

Tongko Was An Emlo!ee o" #anuli"e

The 6"si) iss#e of !hether or not the NLRC h"s

@#ris$i)tion oer the )"se reso%es itse%f into the #estion of

!hether "n e5%o9er3e5%o9ee re%"tionshi e;iste$ 6et!een

M"n#%ife "n$ Ton:(o. If no e5%o9er3e5%o9ee re%"tionshi

e;iste$ 6et!een the t!o "rties+ then @#ris$i)tion oer the

)"se roer%9 %ies !ith the Re:ion"% Tri"% Co#rt.

In the $eter5in"tion of !hether "n e5%o9er3

e5%o9ee re%"tionshi e;ists 6et!een t!o "rties+ this Co#rt

"%ies the fo#r3fo%$ test to $eter5ine the e;isten)e of the

e%e5ents of s#)h re%"tionshi. In Paci&c Consultants

International #sia, Inc. v. chonfeld+ the Co#rt set o#t the

e%e5ents of "n e5%o9er3e5%o9ee re%"tionshi+ th#s>

=#risr#$en)e is Br5%9 sett%e$ th"t!heneer the e;isten)e of "n e5%o95entre%"tionshi is in $is#te+ fo#r e%e5ents)onstit#te the re%i"6%e 9"r$sti)(> 1" these%e)tion "n$ en:":e5ent of the e5%o9ee16 the "95ent of !":es 1) the o!er of$is5iss"% "n$ 1$ the e5%o9ers o!er to)ontro% the e5%o9ees )on$#)t. It is the so3)"%%e$ )ontro% test !hi)h )onstit#tes the

5ost i5ort"nt in$e; of the e;isten)e of thee5%o9er3e5%o9ee re%"tionshi th"t is+!hether the e5%o9er )ontro%s or h"sresere$ the ri:ht to )ontro% the e5%o9eenot on%9 "s to the res#%t of the !or( to 6e$one 6#t "%so "s to the 5e"ns "n$ 5etho$s69 !hi)h the s"5e is to 6e "))o5%ishe$.St"te$ other!ise+ "n e5%o9er3e5%o9eere%"tionshi e;ists !here the erson for!ho5 the seri)es "re erfor5e$ reseresthe ri:ht to )ontro% not on%9 the en$ to 6e")hiee$ 6#t "%so the 5e"ns to 6e #se$ inre")hin: s#)h en$.-&/

The NLRC+ for its "rt+ "%ie$ the fo#r3fo%$ test "n$

fo#n$ the e;isten)e of "%% the e%e5ents "n$ $e)%"re$ Ton:(o

"n e5%o9ee of M"n#%ife. The CA+ on the other h"n$+ fo#n$

th"t the e%e5ent of )ontro% "s "n in$i)"tor of the e;isten)e of

"n e5%o9er3e5%o9ee re%"tionshi !"s %")(in: in this )"se.

The NLRC "n$ the CA 6"se$ their r#%in:s on the s"5e Bn$in:s

of f")t 6#t $i?ere$ in their interret"tions.

The NLRC "rrie$ "t its )on)%#sion+ Brst+ on the 6"sis

of the %etter $"te$ Noe56er + 200 "$$resse$ 69 ,e ,ios to

Ton:(o. A))or$in: to the NLRC+ the %etter )ont"ine$ "n

"6#n$"n)e of $ire)ties or or$ers th"t "re inten$e$ to $ire)t%9

"?e)t )o5%"in"nts "#thorit9 "n$ 5"nner of )"rr9in: o#t his

f#n)tions "s Re:ion"% S"%es M"n":er. It en#5er"te$ these

$ire)ties or or$ers "s fo%%o!s>

. Jo# !i%% hire "t 9o#re;ense " )o5etent "ssist"nt !ho )"n#n%o"$ 9o# of 5#)h of the ro#tine t"s(s!hi)h )"n 6e e"si%9 $e%e:"te$. ; ; ;

; ; ; ;This "ssist"nt sho#%$ 6e hire$

i55e$i"te%9.2. E?e)tie i55e$i"te%9+

Kein "n$ the rest of the A:en)9 Oer"tions!i%% $e"% !ith the North St"r Dr"n)h 1NSD in"#tono5o#s f"shion ; ; ;.

; ; ; ;I h"e $e)i$e$ to 5"(e this )h"n:e

so "s to re$#)e 9o#r s"n of )ontro% "n$"%%o! 9o# to )on)entr"te 5ore f#%%9 onoerseein: the re5"inin: :ro#s #n$erMetro North+ 9o#r Centr"% Unit "n$ the restof the S"%es M"n":ers in Metro North. ; ; ;

4. An9 resist"n)e or

ho%$in: 6")( 69 "n9one !i%% 6e $e"%t !ith"))or$in:%9.

&. I h"e 6een

str"i:htfor!"r$ in this 59 %etter "n$ I (no!

th"t !e )"n )ontin#e to !or( to:ether 6#t it!i%% h"e to 6e on 59 ter5s. An9thin: e%seis #n"))et"6%e

The NLRC f#rther r#%e$ th"t the $i?erent )o$es o

)on$#)t th"t !ere "%i)"6%e to Ton:(o sere$ "s the

fo#n$"tions of the o!er of )ontro% !ie%$e$ 69 M"n#%ife oer

Ton:(o th"t is f#rther 5"nifeste$ in the $i?eren

"$5inistr"tie "n$ other t"s(s th"t he !"s re#ire$ to

erfor5.

The NLRC "%so fo#n$ th"t Ton:(o !"s re#ire$ to

ren$er e;)%#sie seri)e to M"n#%ife+ f#rther 6o%sterin: the

e;isten)e of "n e5%o9er3e5%o9ee re%"tionshi.

Fin"%%9+ the NLRC r#%e$ th"t Ton:(o !"s inte:r"te$

into " 5"n":e5ent str#)t#re oer !hi)h M"n#%ife e;er)ise$

)ontro%+ in)%#$in: the ")tions of its o


6/25

th"t s#)h inte:r"tion "$$e$ to the f")t th"t Ton:(o $i$ not

h"e his o!n ":en)9 6e%ie$ M"n#%ifes )%"i5 th"t Ton:(o !"s

"n in$een$ent )ontr")tor.

The CA+ ho!eer+ )onsi$ere$ the Bn$in: of the

e;isten)e of "n e5%o9er3e5%o9ee re%"tionshi 69 the NLRC

"s f"r too s!eein: h"in: "s its on%9 6"sis the %etter $"te$

Noe56er + 200 of ,e ,ios. The CA $i$ not )on)#r !ith the

NLRCs r#%in: th"t the e%e5ents of )ontro% "s ointe$ o#t 69

the NLRC "re s#

F#rther+ not eer9 for5 of )ontro%

th"t " "rt9 reseres to hi5se%f oer the)on$#)t of the other "rt9 in re%"tion to theseri)es 6ein: ren$ere$ 5"9 6e "))or$e$the e?e)t of est"6%ishin: "n e5%o9er3e5%o9ee re%"tionshi. The f")ts of this )"sef"%% s#"re%9 !ith the )"se of Ins#%"r LifeAss#r"n)e Co.+ Lt$. s. NLRC. In s"i$ )"se+!e he%$ th"t>

Logicall!, the line

shoul$ %e $ra&n %et&een rulesthat merel! ser'e as gui$elinesto&ar$s the achie'ement o"the mutuall! $esire$ result

&ithout $ictating the means ormetho$s to %e emlo!e$ inattaining it, an$ those thatcontrol or () the metho$olog!an$ %in$ or restrict the art!hire$ to the use o" such means.The (rst, &hich aim onl! toromote the result, create noemlo!er*emlo!eerelationshi unlike the secon$,&hich a$$ress %oth the resultan$ the means use$ to achie'eit.-7/1E5h"sis s#%ie$.

e r#%e$ in Insular Life #ssurance Co., Ltd. v

NLRC 1Insularth"t>

It is+ therefore+ #s#"% "n$ e;e)te$

for "n ins#r"n)e )o5"n9 to ro5#%:"te "set of r#%es to :#i$e its )o55ission ":entsin se%%in: its o%i)ies th"t the9 5"9 not r#n"fo#% of the %"! "n$ !h"t it re#ires orrohi6its. Of s#)h " )h"r")ter "re the r#%es

!hi)h res)ri6e the #"%iB)"tions of ersons!ho 5"9 6e ins#re$+ s#6@e)t ins#r"n)e"%i)"tions to ro)essin: "n$ "ro"% 69the Co5"n9+ "n$ "%so resere to theCo5"n9 the $eter5in"tion of there5i#5s to 6e "i$ "n$ the s)he$#%es of"95ent. None of these re"%%9 in"$es the":ents )ontr")t#"% rero:"tie to "$ot hiso!n se%%in: 5etho$s or to se%% ins#r"n)e "this o!n ti5e "n$ )onenien)e+ hen)e)"nnot @#stiB"6%9 6e s"i$ to est"6%ish "ne5%o9er3e5%o9ee re%"tionshi 6et!eenhi5 "n$ the )o5"n9.-8/

en)e+ !e r#%e$ in Insularth"t no e5%o9er

e5%o9ee re%"tionshi e;iste$ therein. o!eer+ s#)h r#%in:

!"s te5ere$ !ith the #"%iB)"tion th"t h"$ there 6een

ei$en)e th"t the )o5"n9 ro5#%:"te$ r#%es or re:#%"tions

th"t e?e)tie%9 )ontro%%e$ or restri)te$ "n ins#r"n)e ":ents

)hoi)e of 5etho$s or the 5etho$s the5se%es in se%%in:

ins#r"n)e+ "n e5%o9er3e5%o9ee re%"tionshi !o#%$ h"e

e;iste$. In other !or$s+ the Co#rt in Insularin no !"9

$eBnitie%9 he%$ th"t ins#r"n)e ":ents "re not e5%o9ees o

ins#r"n)e )o5"nies+ 6#t r"ther 5"$e the s"5e " )"se3to3

)"se 6"sis. e he%$>The reson$ents %i5it the5se%es

to ointin: o#t th"t D"si"os )ontr")t !iththe Co5"n9 6o#n$ hi5 to o6sere "n$)onfor5 to s#)h r#%es "n$ re:#%"tions "s the%"tter 5i:ht fro5 ti5e to ti5e res)ri6e. +osho&ing has %een ma$e that an! suchrules or regulations &ere in "actromulgate$, much less that an! rulese)iste$ or &ere issue$ &hicheecti'el! controlle$ or restricte$ hischoice o" metho$s or the metho$sthemsel'es o" selling insurance.

A%sent such sho&ing, the Court &illnot seculate that an! e)cetions or-uali(cations &ere imose$ on thee)ress ro'ision o" the contractlea'ing asiao ... "ree to e)ercise hiso&n /u$gment as to the time, lace an$means o" soliciting insurance.-*/1E5h"sis s#%ie$.

There is no )oni)t 6et!een o#r r#%in:s in Insular"n$

in Great Paci&c Life #ssurance Cor'oration. e s"i$ in the

%"tter )"se>
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7/25

-I/t )"nnot 6e :"ins"i$ th"t

Gre"%ife h"$ )ontro% oer ri"tereson$ents erfor5"n)e "s !e%% "s theres#%t of their e?orts. A cursor! rea$ing o"their resecti'e "unctions asenumerate$ in their contracts re'ealsthat the coman! racticall! $ictatesthe manner %! &hich their /o%s are to%e carrie$ out. For inst"n)e+ the ,istri)tM"n":er 5#st roer%9 "))o#nt+ re)or$ "n$

$o)#5ent the )o5"n9s f#n$s sot3)he)("n$ "#$it the !or( of the one s#erisors+)onsere the )o5"n9s 6#siness in the$istri)t thro#:h reinst"te5ents+ fo%%o! #the s#65ission of !ee(%9 re5itt"n)e reortsof the $e6it ":ents "n$ one s#erisors+resere )o5"n9 roert9 in :oo$)on$ition+ tr"in #n$erst#$ies for the ositionof $istri)t 5"n":er+ "n$ 5"int"in his #ot"of s"%es 1the f"i%#re of !hi)h is " :ro#n$ forter5in"tion. On the other h"n$+ " ones#erisor 5#st $ire)t "n$ s#erise thes"%es ")tiities of the $e6it ":ents #n$erhi5+ )onsere )o5"n9 roert9 thro#:hreinst"te5ents+ #n$ert"(e "n$ $is)h"r:ethe f#n)tions of "6sentee $e6it ":ents+

sot3)he)( the re)or$s of $e6it ":ents+ "n$ins#re roer $o)#5ent"tion of s"%es "n$)o%%e)tions 69 the $e6it ":ents.-20/1E5h"siss#%ie$.

D"se$ on the fore:oin: )"ses+ if the se)iB) r#%es

"n$ re:#%"tions th"t "re enfor)e$ ":"inst ins#r"n)e ":ents or

5"n":ers "re s#)h th"t !o#%$ $ire)t%9 "?e)t the 5e"ns "n$

5etho$s 69 !hi)h s#)h ":ents or 5"n":ers !o#%$ ")hiee

the o6@e)ties set 69 the ins#r"n)e )o5"n9+ the9 "re

e5%o9ees of the ins#r"n)e )o5"n9.

In the inst"nt )"se+ M"n#%ife h"$ the o!er of )ontro%

oer Ton:(o th"t !o#%$ 5"(e hi5 its e5%o9ee. Seer"%

f")tors )ontri6#te to this )on)%#sion.

In the A:ree5ent $"te$ =#%9 + *77 e;e)#te$

6et!een Ton:(o "n$ M"n#%ife+ it is roi$e$ th"t>

The A:ent here69 ":rees to )o5%9!ith "%% re:#%"tions "n$ re#ire5ents of theCo5"n9 "s herein roi$e$ "s !e%% "s5"int"in " st"n$"r$ of (no!%e$:e "n$)o5eten)9 in the s"%e of the Co5"n9sro$#)ts !hi)h s"tisBes those set 69 theCo5"n9 "n$ s# Petition for Reie! $"te$ '

Ari% 200' $"te$ A#:#st '+ 200'+ M"n#%ife "tt")he$ "

&. On Sete56er + **+ 59 seri)es !ereen:":e$ 69 M"n#%ife "s "n A:en)9Re:ion"% S"%es M"n":er 1RSM forMetro So#th Re:ion #rs#"nt to "nA:en)9 Contr")t. As s#)h RSM+ Ih"e the fo%%o!in: f#n)tions>

. Refer "n$

re)o55en$rose)tie":ents toM"n#%ife

2. Co")h":ents to6e)o5ero$#)tie
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4. Re:#%"r%95eet !ith+ "n$)oor$in"te")tiities of ":ents "

4. In ="n#"r9 **7+ I !"s "ssi:ne$"s " Dr"n)h M"n":er 1DM of M"n#%ife forthe Metro North Se)tor

&. As s#)h DM+ I ren$er the

fo%%o!in: seri)es>". Refer "n$ re)o55en$

rose)tie":ents toM"n#%ife

6. Tr"in "n$ )oor$in"te ")tiities ofother )o55ission":ents

). Coor$in"te ")tiities of A:en)9M"n":ers !ho+ int#rn+ tr"in "n$)oor$in"te")tiites of other)o55ission":ents

$. A)hiee ":ree$ ro$#)tiono6@e)ties inter5s of NetAnn#"%ie$Co55issions "n$C"se Co#nt "n$re)r#it5ent:o"%s "n$

e. Se%% the "rio#s ro$#)ts ofM"n#%ife to 59

erson"% )%ients.

hi%e M". Lo#r$es S"5son+ " Unit M"n":er of

M"n#%ife+ st"te$ in her A

". To ren$er orre)o55en$ rose)tie":ents to 6e %i)ense$+tr"ine$ "n$ )ontr")te$ tose%% M"n#%ife ro$#)ts "n$!ho !i%% 6e "rt of 59Unit6. To )oor$in"te ")tiitiesof the ":ents #n$er 59Unit in their $"i%9+ !ee(%9"n$ 5onth%9 se%%in:")tiities+ 5"(in: s#reth"t their rese)tie s"%est"r:ets "re 5et). To )on$#)t erio$i)tr"inin: sessions for 59

":ents to f#rther enh"n)etheir s"%es s(i%%s.$. To "ssist 59 ":ents!ith their s"%es ")tiities69 !"9 of @oint Be%$!or(+)ons#%t"tions "n$ one3on3 one e"%#"tion "n$"n"%9sis of "rti)#%"r"))o#nts.e. To roi$e oort#nitiesto 5oti"te 59 ":entsto s#))ee$ %i(e )on$#)tin:

ro5os to in)re"ses"%es ")tiities "n$en)o#r":in: the5 to 6eino%e$ in )o5"n9 "n$in$#str9 ")tiities.f. To roi$e oort#nitiesfor rofession"% :ro!thto 59 ":ents 69en)o#r":in: the5 to 6e "5e56er of the LUCAP1Life Un$er!ritersAsso)i"tion of the Phi%iines.

A )o5"rison of the "6oe f#n)tions "n$ those

)ont"ine$ in the A:ree5ent !ith those )ite$ in Great Paci&c

Life #ssurance Cor'oration-2'/ree"%s " stri(in: si5i%"rit9 th"

!o#%$ 5ore th"n s#ort " si5i%"r Bn$in: "s in th"t )"se.

Th#s+ there !"s "n e5%o9er3e5%o9ee re%"tionshi 6et!een

the "rties.

A$$ition"%%9+ it 5#st 6e ointe$ o#t th"t the f")t th"

Ton:(o !"s t"s(e$ !ith re)r#itin: " )ert"in n#56er of ":ents

in "$$ition to his other "$5inistr"tie f#n)tions+ %e"$s to no

other )on)%#sion th"t he !"s "n e5%o9ee of M"n#%ife.

In his %etter $"te$ Noe56er + 200+ ,e ,ios h"re$

on the $ire)tion of M"n#%ife of 6e)o5in: " 5"@or ":en)93%e$

$istri6#tion )o5"n9 !here69 :re"ter ":en)9 re)r#it5ent is

re#ire$ of the 5"n":ers+ in)%#$in: Ton:(o. ,e ,ios 5"$e it

)%e"r th"t ":ent re)r#it5ent h"s 6e)o5e the ri5"r9 5e"ns

69 !hi)h M"n#%ife inten$s to se%% 5ore o%i)ies. More

i5ort"nt%9+ it is Ton:(os "%%e:e$ f"i%#re to fo%%o! this rin)i%e

of re)r#it5ent th"t %e$ to the ter5in"tion of his e5%o95ent

!ith M"n#%ife. ith this+ it is ines)""6%e th"t Ton:(o !"s "n

e5%o9ee of M"n#%ife.

Tongko Was 0llegall! 1ismisse$
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9/25

In its Petition for Certior"ri $"te$ ="n#"r9 7+

200'-2/B%e$ 6efore the CA+ M"n#%ife "r:#e$ th"t een if

Ton:(o is )onsi$ere$ "s its e5%o9ee+ his e5%o95ent !"s

"%i$%9 ter5in"te$ on the :ro#n$ of :ross "n$ h"6it#"% ne:%e)t

of $#ties+ ine

In the inst"nt )"se+ ri"te

reson$ent+ $esite the !ritten re5in$erfro5 Mr. ,e ,ios ref#se$ to sh"e # "n$"%to:ether $isre:"r$e$ the %"tters "$i)eres#%tin: in his %"::"r$ erfor5"n)e )%e"r%9in$i)"tie of his !i%%f#% $iso6e$ien)e of the%"!f#% or$ers of his s#erior. ; ; ;

; ; ; ;As ri"te reson$ent h"s "tent%9

f"i%e$ to erfor5 " er9 f#n$"5ent"% $#t9+"n$ th"t is to 9ie%$ o6e$ien)e to "%%re"son"6%e r#%es+ or$ers "n$ instr#)tions ofthe Co5"n9+ "s !e%% "s :ross f"i%#re tore")h "t %e"st 5ini5#5 #ot"+ the

ter5in"tion of his en:":e5ent fro5M"n#%ife is hi:h%9 !"rr"nte$ "n$ therefore+there is no i%%e:"% $is5iss"% to se"( of.

It is re"$i%9 ei$ent fro5 the "6oe3#ote$ ortions

of M"n#%ifes etition th"t it f"i%e$ to )ite " sin:%e iot" of

ei$en)e to s#ort its )%"i5s. M"n#%ife $i$ not een oint o#t

!hi)h or$er or r#%e th"t Ton:(o $iso6e9e$. More i5ort"nt%9+

M"n#%ife $i$ not oint o#t the se)iB) ")ts th"t Ton:(o !"s

:#i%t9 of th"t !o#%$ )onstit#te :ross "n$ h"6it#"% ne:%e)t of

$#t9 or $iso6e$ien)e. M"n#%ife 5ere%9 )ite$ Ton:(os "%%e:e$

%"::"r$ erfor5"n)e+ !itho#t s#6st"nti"tin: s#)h )%"i5+ "n$

e#"te$ the s"5e to $iso6e$ien)e "n$ ne:%e)t of $#t9.

e )"nnot+ therefore+ "))et M"n#%ifes osition.

In uebec, r. v. National Labor Relations

Commission+ !e r#%e$ th"t>hen there is no sho!in: of "

)%e"r+ "%i$ "n$ %e:"% )"#se for theter5in"tion of e5%o95ent+ the %"!)onsi$ers the 5"tter " )"se of i%%e:"%$is5iss"% "n$ the 6#r$en is on the e5%o9erto roe th"t the ter5in"tion !"s for " "%i$or "#thorie$ )"#se. This 6#r$en of roof"rori"te%9 %ies on the sho#%$ers of thee5%o9er "n$ not on the e5%o9ee 6e)"#se" !or(ers @o6 h"s so5e of the)h"r")teristi)s of roert9 ri:hts "n$ istherefore !ithin the )onstit#tion"% 5"nt%e ofrote)tion. No erson sh"%% 6e $erie$ of%ife+ %i6ert9 or roert9 !itho#t $#e ro)ess

of %"!+ nor sh"%% "n9 erson 6e $enie$ thee#"% rote)tion of the %"!s.

Aroos thereto+ Art. 277+ "r. 16+

of the L"6or Co$e 5"n$"tes in e;%i)itter5s th"t the 6#r$en of roin: the "%i$it9of the ter5in"tion of e5%o95ent rests onthe e5%o9er. F"i%#re to $is)h"r:e thisei$enti"% 6#r$en !o#%$ ne)ess"ri%9 5e"nth"t the $is5iss"% !"s not @#stiBe$+ "n$+therefore+ i%%e:"%.-27/

e ":"in r#%e$ in Times Trans'ortation Co., Inc. v

National Labor Relations Commissionth"t>The %"! 5"n$"tes th"t the 6#r$en

of roin: the "%i$it9 of the ter5in"tion ofe5%o95ent rests !ith the e5%o9er.F"i%#re to $is)h"r:e this ei$enti"r9 6#r$en!o#%$ ne)ess"ri%9 5e"n th"t the $is5iss"%!"s not @#stiBe$+ "n$+ therefore+ i%%e:"%.Uns#6st"nti"te$ s#si)ions+ "))#s"tions "n$)on)%#sions of e5%o9ers $o not roi$e for%e:"% @#stiB)"tion for $is5issin: e5%o9ees.In )"se of $o#6t+ s#)h )"ses sho#%$ 6ereso%e$ in f"or of %"6or+ #rs#"nt to theso)i"% @#sti)e o%i)9 of o#r %"6or %"!s "n$Constit#tion.-28/

This 6#r$en of roof !"s )%"riBe$ in Communit-

Rural *an" of an Isidro (N..), Inc. v. Paeto 5e"n

s#6st"nti"% ei$en)e+ to !it>

The L"6or Co$e roi$es th"t "n

e5%o9er 5"9 ter5in"te the seri)es of "ne5%o9ee for @#st )"#se "n$ this 5#st 6es#orte$ 69 s#6st"nti"% ei$en)e. Thesett%e$ r#%e in "$5inistr"tie "n$ #"si3@#$i)i"% ro)ee$in:s is th"t roof 6e9on$

re"son"6%e $o#6t is not re#ire$ in$eter5inin: the %e:"%it9 of "n e5%o9ers$is5iss"% of "n e5%o9ee+ "n$ not een "reon$er"n)e of ei$en)e is ne)ess"r9 "ss#6st"nti"% ei$en)e is )onsi$ere$s#


10/25

Moreoer+ "s to M"n#%ifes f"i%#re to )o5%9 !ith the

t!in noti)e r#%e+ it re"sons th"t Ton:(o not 6ein: its e5%o9ee

is not entit%e$ to s#)h noti)es. Sin)e !e h"e r#%e$ th"t

Ton:(o is its e5%o9ee+ ho!eer+ M"n#%ife )%e"r%9 f"i%e$ to

"?or$ Ton:(o s"i$ noti)es. Th#s+ on this :ro#n$ too+ M"n#%ife

is :#i%t9 of i%%e:"% $is5iss"%. In uebec, r.+ !e "%so st"te$>

F#rther5ore+ not on%9 $oes o#r

%e:"% s9ste5 $i)t"te th"t the re"sons for$is5issin: " !or(er 5#st 6e ertinent%9s#6st"nti"te$+ it "%so 5"n$"tes th"t the5"nner of $is5iss"% 5#st 6e roer%9$one+ other!ise+ the ter5in"tion itse%f is:r"e%9 $efe)tie "n$ 5"9 6e $e)%"re$#n%"!f#%.-40/

For 6re")h of the $#e ro)ess re#ire5ents+ M"n#%ife

is %i"6%e to Ton:(o in the "5o#nt of PhP 40+000 "s in$e5nit9

in the for5 of no5in"% $"5":es.-4/

Fin"%%9+ M"n#%ife r"ises the iss#e of the )orre)tness of

the )o5#t"tion of the "!"r$ to Ton:(o 5"$e 69 the NLRC 69

)%"i5in: th"t onco v. National Labor Relations

Commission-42/is in"%i)"6%e to the inst"nt )"se+ )onsi$erin:

th"t Son:)o !"s $is5isse$ on the :ro#n$ of retren)h5ent.

An e;"5in"tion of oncoree"%s th"t it 5"9 6e

"%ie$ to the resent )"se. In th"t )"se+ =ose Son:)o !"s "

s"%es5"n of F.E. #e%%i: 1M+ In). !hi)h ter5in"te$ the

seri)es of Son:)o on the :ro#n$ of retren)h5ent $#e to

Bn"n)i"% %osses. The iss#e r"ise$ to the Co#rt+ ho!eer+ !"s

!hether )o55issions "re )onsi$ere$ "s "rt of !":es in or$er

to $eter5ine se"r"tion "9. Th#s+ the f")t th"t Son:)o !"s

$is5isse$ $#e to retren)h5ent $oes not h"5er the

"%i)"tion thereof to the inst"nt )"se. h"t is iot"% is th"t

!e r#%e$ in oncoth"t )o55issions "re "rt of !":es for the

$eter5in"tion of se"r"tion "9.

Arti)%e 27* of the L"6or Co$e on se)#rit9 of ten#re

ertinent%9 roi$es th"t>In )"ses of re:#%"r e5%o95ent thee5%o9er sh"%% not ter5in"te the seri)es of"n e5%o9ee e;)et for " @#st )"#se or

!hen "#thorie$ 69 this Tit%e. An e5%o9ee!ho is #n@#st%9 $is5isse$ fro5 !or( sh"%% 6eentit%e$ to reinst"te5ent !itho#t %oss ofseniorit9 ri:hts "n$ other rii%e:es "n$ tohis f#%% 6")(!":es+ in)%#sie of "%%o!"n)es+"n$ to his other 6eneBts or their 5onet"r9e#i"%ent )o5#te$ fro5 the ti5e his)o5ens"tion !"s !ithhe%$ fro5 hi5 # tothe ti5e of his ")t#"% reinst"te5ent.

In Triad ecurit- / #llied ervices, Inc. v. 0rtea

1r. 1Triad+ !e th#s st"te$ th"t "n i%%e:"%%9 $is5isse$ e5%o9ee

sh"%% 6e entit%e$ to 6")(!":es "n$ se"r"tion "9+ i

reinst"te5ent is no %on:er i"6%e>

As the %"! no! st"n$s+ "n i%%e:"%%9

$is5isse$ e5%o9ee is entit%e$ to t!ore%iefs+ n"5e%9> 6")(!":es "n$reinst"te5ent. These "re se"r"te "n$$istin)t fro5 e")h other. o!eer+se"r"tion "9 is :r"nte$ !herereinst"te5ent is no %on:er fe"si6%e 6e)"#seof str"ine$ re%"tions 6et!een the e5%o9ee

"n$ the e5%o9er. In e?e)t+ "n i%%e:"%%9$is5isse$ e5%o9ee is entit%e$ to eitherreinst"te5ent+ if i"6%e+ or se"r"tion "9 ifreinst"te5ent is no %on:eri"6%e "n$ 6")(!":es.-44/

T"(in: into )onsi$er"tion the )"ses

of onco"n$ Triad+ !e Bn$ )orre)t the )o5#t"tion of the

NLRC th"t the 5onth%9 :ross !":e of Ton:(o in 200 !"s PhP

'8+&&.7. For h"in: 6een i%%e:"%%9 $is5isse$+ Ton:(o is

entit%e$ to reinst"te5ent !ith f#%% 6")(!":es #n$er Art. 27*

of the L"6or Co$e. ,#e to the str"ine$ re%"tionshi 6et!een

M"n#%ife "n$ Ton:(o+ reinst"te5ent+ ho!eer+ is no %on:e

"$is"6%e. Th#s+ Ton:(o !i%% 6e entit%e$ to 6")(!":es

fro5 ="n#"r9 2+ 2002 1$"te of $is5iss"% # to the Bn"%it9 o

this $e)ision. Moreoer+ M"n#%ife !i%% "9 Ton:(o se"r"tion

"9 of one 1 5onth s"%"r9 for eer9 9e"r of seri)e th"t is

fro5 *77 to 200 "5o#ntin: to PhP 2+&4'+&7&.2&

)onsi$erin: th"t reinst"te5ent is not fe"si6%e. Ton:(o sh"%

"%so 6e entit%e$ to "n "!"r$ of "ttorne9s fees in the "5o#nt of

ten er)ent 10 of the "::re:"te "5o#nt of the "6oe

"!"r$s.

W2EREFORE+ the etition is here69 3RA+TE1. The

"ss"i%e$ M"r)h 2*+ 200' ,e)ision of the CA in CA3G.R. SP No

882'4 is REVERSE1 "n$SET AS01E. The ,e)ision
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11/25

$"te$ Sete56er 27+ 200& of the NLRC is RE0+STATE1 !ith

the fo%%o!in: 5o$iB)"tions>

M"n#%ife sh"%% "9 Ton:(o the fo%%o!in:>

1 F#%% 6")(!":es+ in)%#sie of "%%o!"n)es "n$ other

6eneBts or their 5onet"r9 e#i"%ent fro5 ="n#"r9 2+ 2002 #

to the Bn"%it9 of this ,e)ision

12 Se"r"tion "9 of one 1 5onth s"%"r9 for eer9

9e"r of seri)e fro5 *77 # to 200 "5o#ntin: to PhP

2+&4'+&7&.2&

14 No5in"% $"5":es of PhP 40+000 "s in$e5nit9 for

io%"tion of the $#e ro)ess re#ire5ents "n$

1& Attorne9s fees e#i"%ent to ten er)ent 10 of

the "fore5entione$ 6")(!":es "n$ se"r"tion "9.

Costs ":"inst reson$ent M"n#%ife.

SO OR1ERE1.

TONGKO V. MANUFACTURERS LIFE 200

R E S O L 4 T 0 O +

R0O+,J.:

This reso%es the Motion for Reconsideration-/$"te$

,e)e56er 4+ 2008 B%e$ 69 reson$ent The M"n#f")t#rers Life

Ins#r"n)e Co. 1Phi%s.+ In). 1M"n#%ife to set "si$e o#r ,e)ision

of Noe56er 7+ 2008. In the "ss"i%e$ $e)ision+ !e fo#n$ th"t

"n e5%o9er3e5%o9ee re%"tionshi e;iste$ 6et!een M"n#%ife

"n$ etitioner Gre:orio Ton:(o "n$ or$ere$ M"n#%ife to "9

Ton:(o 6")(!":es "n$ se"r"tion "9 for i%%e:"% $is5iss"%.

The fo%%o!in: f")ts h"e 6een st"te$ in o#r ,e)ision

of Noe56er 7+ 2008+ no! #n$er re)onsi$er"tion+ 6#t "re

ree"te$+ si5%9 for #roses of )%"rit9.

The contractual relationshi %et&een Tongko

an$ #anuli"e ha$ t&o %asic hases. The (rst or initial

hase %egan on Jul! 5, 5677+ #n$er " C"reer A:ents

A:ree5ent 1#reement th"t roi$e$>It is #n$erstoo$ "n$ ":ree$ th"t

the A:ent is "n in$een$ent )ontr")tor "n$nothin: )ont"ine$ herein sh"%% 6e )onstr#e$or interrete$ "s )re"tin: "n e5%o9er3e5%o9ee re%"tionshi 6et!een theCo5"n9 "n$ the A:ent.

; ; ; ;" The A:ent sh"%% )"n"ss for

"%i)"tions for Life Ins#r"n)e+ Ann#ities+Gro# o%i)ies "n$ other ro$#)ts o?ere$ 69the Co5"n9+ "n$ )o%%e)t+ in e;)h"n:e forroision"% re)eits iss#e$ 69 the A:ent+5one9 $#e to or 6e)o5e $#e to theCo5"n9 in rese)t of "%i)"tions oro%i)ies o6t"ine$ 69 or thro#:h the A:ent orfro5 o%i)9ho%$ers "%%otte$ 69 the Co5"n9to the A:ent for seri)in:+ s#6@e)t tos#6se#ent )onBr5"tion of re)eit of"95ent 69 the Co5"n9 "s ei$en)e$ 69"n O


12/25

Ton:(os :ross e"rnin:s )onsiste$ of )o55issions+

ersisten)9 in)o5e+ "n$ 5"n":e5ent oerri$es. Since the

%eginning, Tongko consistentl! $eclare$ himsel" sel"*

emlo!e$ in his income ta) returns. Thus, under oath,

he declared his gross business income and deducted

his business expenses to arrive at his taxable business

income. #anuli"e &ithhel$ the correson$ing 589 ta)

on Tongkos earnings.; So5e M"n":ers "re #nh"9 !iththeir e"rnin:s "n$ !o#%$ !"nt to reert tothe osition of ":ents.This is "n often ree"te$ iss#e 9o# h"er"ise$ !ith 5e "n$ !ith Kein. For thisre"son+ I %")e$ the iss#e on the t"6%e6efore the rest of 9o#r Re:ions S"%esM"n":ers to erif9 its "%i$it9. As 9o# 5#sth"e note$+ no S"%es M"n":er )"5e for!"r$on their o!n to )onBr5 9o#r st"te5ent "n$it too( 9o# to n"5e M"%o# S"5son "s "so#r)e of the s"5e+ "n "%%e:"tion th"t M"%o#

herse%f $enie$ "t o#r 5eetin: "n$ in 9o#rer9 resen)e.This on%9 )onBr5s+ Gre:+ th"t those rior)o55ents h"e no so%i$ 6"sis "t "%%. I no!6e%iee !h"t I h"$ tho#:ht "%% "%on:+ th"tthese "%%e:"tions !ere si5%9 5e"nt to5#$$%e the iss#es s#rro#n$in: the in"6i%it9of 9o#r Re:ion to 5eet its ":en)9$ee%o5ent o6@e)tiesIss#e H 4> S"%es M"n":ers "re $oin: !h"tthe )o5"n9 "s(s the5 to $o 6#t+ in thero)ess+ the9 e"rn %ess.

; ; ; ;A%% the "6oe not!ithst"n$in:+ !e h"$ 9o#ro!n re)or$s )he)(e$ "n$ !e fo#n$ th"t 9o#5"$e " %ot 5ore 5one9 in the Je"r 2000ers#s ***. In "$$ition+ 9o# "%soo%#nteere$ the infor5"tion to Kein !hen9o# s"i$ th"t 9o# ro6"6%9 !i%% 5"(e 5ore5one9 in the Je"r 200 )o5"re$ to Je"r2000. O6io#s%9+ 9o#r "6oe st"te5ent"6o#t 5"(in: %ess 5one9 $i$ not refer to9o# 6#t the !"9 9o# "r:#e$ this oint h"$#s "%5ost 6e%iein: th"t 9o# !ere so#tin:the :ose% of tr#th !hen 9o# !ere not. ; ; ;

; ; ; ;A%% of " s#$$en+ Gre:+ I h"e 6e)o5e 5#)h

5ore !orrie$ "6o#t 9o#r "6i%it9 to %e"$ this:ro# to!"r$s the ne! $ire)tion th"t !eh"e 6een $is)#ssin: these "st fe!!ee(s+ i.e.,M"n#%ifes :o"% to 6e)o5e "5"@or ":en)93%e$ $istri6#tion )o5"n9 inthe Phi%iines. hi%e "s 9o# )%"i5+ 9o#h"e not stoe$ "n9one fro5 re)r#itin:+ Ih"e neer he"r$ 9o# ro")tie%9 #sh for:re"ter ":en)9 re)r#itin:. Jo# h"e not6een ro")tie "%% these 9e"rs !hen it)o5es to ":en)9 :ro!th.

; ; ; ;I )"nnot "?or$ to see " 5"@or re:ion f"i% to$e%ier on its $ee%o5ent"% :o"%s ne;t 9e"r
http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn5http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn5


13/25

"n$ so+ !e "re 5"(in: the fo%%o!in:)h"n:es in the interi5>

. Jo# !i%% hire "t 9o#r e;ense" )o5etent "ssist"nt !ho )"n#n%o"$ 9o# of 5#)h of the ro#tinet"s(s !hi)h )"n 6e e"si%9$e%e:"te$. This "ssist"nt sho#%$ 6eso )hosen "s to )o5%e5ent 9o#rs(i%%s "n$ he% 9o# in the "re"s!here 9o# fee% 5"9 not 6e 9o#r)# of te".

Jo# h"e st"te$+ if not i5%ie$+ th"t9o#r !or( "s Re:ion"% M"n":er5"9 6e too t";in: for 9o# "n$ for9o#r he"%th. The "6oe )o#%$ so%ethis ro6%e5.

; ; ; ;2. E?e)tie i55e$i"te%9+ Kein"n$ the rest of the A:en)9Oer"tions !i%% $e"% !ith the NorthSt"r Dr"n)h 1NSD in "#tono5o#sf"shion. ; ; ;I h"e $e)i$e$ to 5"(e this )h"n:eso "s to re$#)e 9o#r s"n of

)ontro% "n$ "%%o! 9o# to)on)entr"te 5ore f#%%9 onoerseein: the re5"inin: :ro#s#n$er Metro North+ 9o#r Centr"%Unit "n$ the rest of the S"%esM"n":ers in Metro North. I !i%% ho%$9o# so%e%9 resonsi6%e for 5eetin:the o6@e)ties of these re5"inin::ro#s.

; ; ; ;The "6oe )h"n:es )"n en$ "t this oint"n$ the9 nee$ not :o "n9 f#rther. This+ho!eer+ is entire%9 $een$ent #on 9o#.D#t 9o# h"e to #n$erst"n$ th"t 5eetin:)oror"te o6@e)ties 69 eer9one is ri5"r9"n$ !i%% not 6e )o5ro5ise$. e "re5eetin: to#:h )h"%%en:es ne;t 9e"r+ "n$ I!o#%$ !"nt eer96o$9 on 6o"r$. An9resist"n)e or ho%$in: 6")( 69 "n9one !i%% 6e$e"%t !ith "))or$in:%9.-/

S#6se#ent%9+ $e ,ios !rote Ton:(o "nother %etter+

$"te$ ,e)e56er 8+ 200+ ter5in"tin: Ton:(os seri)es>

It !o#%$ "e"r+ ho!eer+ th"t $esite theseries of 5eetin:s "n$ )o55#ni)"tions+6oth one3on3one 5eetin:s 6et!een 9o#rse%f"n$ SVP Kein OConnor+ so5e of the5 !ith5e+ "s !e%% "s :ro# 5eetin:s !ith 9o#r

S"%es M"n":ers+ "%% these e?orts h"e f"i%e$in he%in: 9o# "%i:n 9o#r $ire)tions !ithM"n":e5ents "o!e$ ":en)9 :ro!th o%i)9.

; ; ; ;

On "))o#nt thereof+ M"n":e5ent ise;er)isin: its rero:"tie #n$er Se)tion &of 9o#r A:ents Contr")t "s !e "re no!iss#in: thisnotice o" termination o" !ourAgenc! Agreement &ith use?e)tieBfteen $"9s fro5 the $"te of this %etter. -7/

Ton:(o reson$e$ 69 B%in: "n i%%e:"% $is5iss"

)o5%"int !ith the N"tion"% L"6or Re%"tions Co55ission

1NLRC Ar6itr"tion Dr"n)h. e essenti"%%9 "%%e:e$ des'ite the

clear terms of the letter terminatin his #enc-

#reement th"t he !"s M"n#%ifes e5%o9ee 6efore he !"s

i%%e:"%%9 $is5isse$.-8/

Th#s+ the threshol$ issueis the e;isten)e of "n

e5%o95ent re%"tionshi. A Bn$in: th"t none e;ists

ren$ers the #estion of i%%e:"% $is5iss"% 5oot " Bn$in: th"t

"n e5%o95ent re%"tionshi e;ists+ on the other h"n$

ne)ess"ri%9 %e"$s to the nee$ to $eter5ine the "%i$it9 of the

ter5in"tion of the re%"tionshi.

#. Ton"os Case for m'lo-ment Relationshi'

Ton:(o "sserte$ th"t "s Unit M"n":er+ he !"s "i$ "n "nn#"

oer3ri$er not e;)ee$in: P'0+000.00+ re:"r$%ess of ro$#)tion

%ee%s "tt"ine$ "n$ e;)%#sie of )o55issions "n$ 6on#ses. e

"%so )%"i5e$ th"t "s Re:ion"% S"%es M"n":er+ he !"s :ien "

tr"e% "n$ entert"in5ent "%%o!"n)e of P4+000.00 er 9e"r in

"$$ition to his oerri$in: )o55issions he !"s t"s(e$ !ith

n#5ero#s "$5inistr"tie f#n)tions "n$ s#erisor9 "#thorit9

oer M"n#%ifes e5%o9ees+ "si$e fro5 5ere%9 se%%in: o%i)ies

"n$ re)r#itin: ":ents for M"n#%ife "n$ he re)o55en$e$ "n$

re)r#ite$ ins#r"n)e ":ents s#6@e)t to ettin: "n$ "ro"% 69

M"n#%ife. e f#rther "%%e:es th"t he !"s "ssi:ne$ " $eBnite

%")e in the M"n#%ife o


14/25

"r9in: "5o#nts+ )o5#te$ 6"se$ on the re5i#5 "i$ in f#%%

"n$ ")t#"%%9 re)eie$ 69 M"n#%ife on o%i)ies o6t"ine$ thro#:h

"n ":ent.As s"%es 5"n":er+ Ton:(o !"s "i$ oerri$in: s"%es

)o55ission $erie$ fro5 s"%es 5"$e 69 ":ents #n$er his

#nitstr#)t#re6r"n)hre:ion. M"n#%ife "%so oints o#t th"t it

deducted and 2ithheld a 345 ta6 from all commissions

Ton"o received7 Ton"o even declared himself to be self+

em'lo-ed and consistentl- 'aid ta6es as suchi.e., he availed

of ta6 deductions such as ordinar- and necessar- trade,

business and 'rofessional e6'enses to 2hich a business is

entitled.

M"n#%ife "sserts th"t the %"6or tri6#n"%s h"e no @#ris$i)tion

oer Ton:(os )%"i5 "s he !"s not its e5%o9ee "s

)h"r")terie$ in the fo#r3fo%$ test "n$ o#r r#%in:

in Caruncon v. National Labor Relations Commission.-0/

The Conficting Rulings o the Lower Tribunals

The %"6or "r6iter $e)ree$ th"t no e5%o9er3e5%o9ee

re%"tionshi e;iste$ 6et!een the "rties. o!eer+ the NLRC

reerse$ the %"6or "r6iters $e)ision on "e"% it fo#n$ the

e;isten)e of "n e5%o9er3e5%o9ee re%"tionshi "n$

)on)%#$e$ th"t Ton:(o h"$ 6een i%%e:"%%9 $is5isse$. In the

etition for certiorari !ith the Co#rt of Ae"%s 1C#+ the

"e%%"te )o#rt fo#n$ th"t the NLRC :r"e%9 "6#se$ its

$is)retion in its r#%in: "n$ reerte$ to the %"6or "r6iters

$e)ision th"t no e5%o9er3e5%o9ee re%"tionshi e;iste$

6et!een Ton:(o "n$ M"n#%ife.

ur !ecision o "ovember #, $%%&

In o#r ,e)ision of Noe56er 7+ 2008+ !e reerse$

the CA r#%in: "n$ fo#n$ th"t "n e5%o95ent re%"tionshi

e;iste$ 6et!een Ton:(o "n$ M"n#%ife. e )on)%#$e$ th"t

Ton:(o is M"n#%ifes e5%o9ee for the fo%%o!in: re"sons>

. O#r r#%in: in the Brst Insular-/)"se $i$ not

fore)%ose the ossi6i%it9 of "n ins#r"n)e ":ent 6e)o5in: "n

e5%o9ee of "n ins#r"n)e )o5"n9 if ei$en)e e;ists

sho!in: th"t the )o5"n9 ro5#%:"te$ r#%es or re:#%"tions

th"t e?e)tie%9 )ontro%%e$ or restri)te$ "n ins#r"n)e ":ents

)hoi)e of 5etho$s or the 5etho$s the5se%es in se%%in:

ins#r"n)e+ "n e5%o9er3e5%o9ee re%"tionshi !o#%$ 6e

resent. The $eter5in"tion of the e;isten)e of "n e5%o9er3

e5%o9ee re%"tionshi is th#s on " )"se3to3)"se 6"sis

$een$in: on the ei$en)e on re)or$.

2. M"n#%ife h"$ the o!er of )ontro% oer Ton:(o

s#

2. Ton:(o #n$ertoo( to )o5%9 !ith

M"n#%ifes r#%es+ re:#%"tions "n$ othe

re#ire5ents+ i.e.+ the $i?erent )o$es of )on$#)

s#)h "s the A:ent Co$e of Con$#)t+ the M"n#%ife

Fin"n)i"% Co$e of Con$#)t+ "n$ the Fin"n)i"% Co$e of

Con$#)t A:ree5ent

2.2 The "rio#s "


15/25

M"n#%ife $is":ree$ !ith o#r ,e)ision "n$ B%e$ the

resent 5otion for re)onsi$er"tion on the

fo%%o!in: 3RO4+1S>. The Noe56er 7-+ 2008/

,e)ision io%"tes M"n#%ifes ri:ht to $#ero)ess 69> 1" )onBnin: the reie! on%9 tothe iss#e of )ontro% "n$ #tter%9 $isre:"r$in:"%% the other iss#es th"t h"$ 6een @oine$ in

this )"se 16 5is)h"r")teriin: the$ier:en)e of )on)%#sions 6et!een the CA"n$ the NLRC $e)isions "s )onBne$ on%9 toth"t on )ontro% 1) :ross%9 f"i%in: to)onsi$er the Bn$in:s "n$ )on)%#sions of theCA on the 5"@orit9 of the 5"teri"% ei$en)e+ese)i"%%9 -Ton:(os/ $e)%"r"tion in hisin)o5e t"; ret#rns th"t he !"s " 6#sinesserson or se%f3e5%o9e$ "n$ 1$ "%%o!in:-Ton:(o/ to re#$i"te his s!orn st"te5ent in" #6%i) $o)#5ent.

2. The Noe56er 7-+ 2008/

,e)ision )ontr"enes sett%e$ r#%es in)ontr")t %"! "n$ ":en)9+ $istorts not on%9the %e:"% re%"tionshis of ":en)ies to se%% 6#t"%so $istri6#torshi "n$ fr"n)hisin:+ "n$i:nores the )onstit#tion"% "n$ o%i)9 )onte;tof )ontr")t %"! is33is %"6or %"!.

4. The Noe56er 7-+ 2008/

,e)ision i:nores the Bn$in:s of the CA onthe three e%e5ents of the fo#r3fo%$ testother th"n the )ontro% test+ reerses !e%%3sett%e$ $o)trines of %"! on e5%o9er3e5%o9ee re%"tionshis+ "n$ :ross%95is"%ies the )ontro% test+ 69 se%e)tin:+!itho#t 6"sis+ " fe! ite5s of ei$en)e tothe e;)%#sion of 5ore 5"teri"% ei$en)e tos#ort its )on)%#sion th"t there is )ontro%.

&. The Noe56er 7-+ 2008/

,e)ision is @#$i)i"% %e:is%"tion+ 6e9on$ the

s)oe "#thorie$ 69 Arti)%es 8 "n$ * of theCii% Co$e+ 6e9on$ the o!ers :r"nte$ tothis Co#rt #n$er Arti)%e VIII+ Se)tion of theConstit#tion "n$ )ontr"enes thro#:h@#$i)i"% %e:is%"tion+ the )onstit#tion"%rohi6ition ":"inst i5"ir5ent of )ontr")ts#n$er Arti)%e III+ Se)tion 0 of theConstit#tion.

'. For "%% the "6oe re"sons+ the

Noe56er 7-+ 2008/ ,e)ision 5"$e#ns#st"in"6%e "n$ reersi6%e errors+ !hi)hsho#%$ 6e )orre)te$+ in )on)%#$in: th"tReson$ent M"n#%ife "n$ Petitioner h"$ "ne5%o9er3e5%o9ee re%"tionshi+ th"tReson$ent M"n#%ife i%%e:"%%9 $is5isse$

Petitioner+ "n$ for )onse#ent%9 or$erin:Reson$ent M"n#%ife to "9 Petitioner6")(!":es+ se"r"tion "9+ no5in"%$"5":es "n$ "ttorne9s fees.-4/

T2E CO4RTS R4L0+3

(. The )nsurance and the Civil Codes*the +arties )ntent and stablished)ndustr- +ractices

e )"nnot )onsi$er the resent )"se #re%9 fro5 "

%"6or %"! erse)tie+ o6%iio#s th"t the f")t#"% "nte)e$ents

!ere set in the ins#r"n)e in$#str9 so th"t the Ins#r"n)e Co$e

ri5"ri%9 :oerns. Ch"ter IV+ Tit%e of this Co$e is !ho%%9

$eote$ to Ins#r"n)e A:ents "n$ Dro(ers "n$ se)iB)"%%9

$eBnes the ":ents "n$ 6ro(ers re%"tionshi !ith the ins#r"n)e

)o5"n9 "n$ ho! the9 "re :oerne$ 69 the Co$e "n$

re:#%"te$ 69 the Ins#r"n)e Co55ission.

The Ins#r"n)e Co$e+ of )o#rse+ $oes not !ho%%9

re:#%"te the ":en)9 th"t it se"(s of+ "s ":en)9 is " )ii% %"!

5"tter :oerne$ 69 the Cii% Co$e. Th#s+ "t the er9 %e"st

three sets of %"!s n"5e%9+ the Ins#r"n)e Co$e+ the L"6o

Co$e "n$ the Cii% Co$e h"e to 6e )onsi$ere$ in %oo(in: "t

the resent )"se. Not to 6e for:otten+ too+ is the A:ree5ent

1"rt%9 rero$#)e$ on ":e 2 of this ,issent "n$ !hi)h no one

$is#tes th"t the "rties "$ote$ to :oern their re%"tionshi

for #roses of se%%in: the ins#r"n)e the )o5"n9 o?ers. To

for:et these other %"!s is to t"(e " 59oi) ie! of the resent

)"se "n$ to "$$ to the #n)ert"inties th"t no! e;ist in

)onsi$erin: the %e:"% re%"tionshi 6et!een the ins#r"n)e

)o5"n9 "n$ its ":ents.

The 5"in iss#e of !hether "n ":en)9 or "n

e5%o95ent re%"tionshi e;ists $een$s on the in)i$ents of

the re%"tionshi. The L"6or Co$e )on)et of )ontro% h"s to 6e

)o5"re$ "n$ $istin:#ishe$ !ith the )ontro% th"t 5#s

ne)ess"ri%9 e;ist in " rin)i"%3":ent re%"tionshi. The

rin)i"% )"nnot 6#t "%so h"e his or her s"9 in $ire)tin: the

)o#rse of the rin)i"%3":ent re%"tionshi+ ese)i"%%9 in )"ses

!here the )o5"n93reresent"tie re%"tionshi in the

ins#r"n)e in$#str9 is "n ":en)9.

a. The la2s on insurance and aenc-
http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn13http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn13


16/25

The 6#siness of ins#r"n)e is " hi:h%9 re:#%"te$

)o55er)i"% ")tiit9 in the )o#ntr9+ in ter5s "rti)#%"r%9 of

!ho )"n 6e in the ins#r"n)e 6#siness+ !ho )"n ")t for "n$ in

6eh"%f of "n ins#rer+ "n$ ho! these "rties sh"%% )on$#)t

the5se%es in the ins#r"n)e 6#siness. Se)tion 8 of the

Ins#r"n)e Co$e roi$es th"t No 'erson, 'artnershi', or

association of 'ersons shall transact an- insurance business

in the Phili''ines e6ce't as aent of a 'erson or cor'oration

authoried to do the business of insurance in

the Phili''ines. Se)tions 2** "n$ 400 of the Ins#r"n)e Co$e

on Ins#r"n)e A:ents "n$ Dro(ers+ "5on: other roisions+

roi$e>Se)tion 2**. No ins#r"n)e )o5"n9 $oin:6#siness in the Phi%iines+ nor "n9 ":entthereof+ sh"%% a! an! commission orother comensation to an! erson "or

ser'ices in o%taining insurance+ #n%esss#)h erson sh"%% h"e Brst ro)#re$ fro5the Co55issioner " %i)ense to ")t "s "nins#r"n)e ":ent of s#)h )o5"n9 or "s "nins#r"n)e 6ro(er "s herein"fter roi$e$.

No erson sh"%% ")t "s "n

ins#r"n)e ":ent or "s "n ins#r"n)e 6ro(erin the so%i)it"tion or ro)#re5ent of"%i)"tions for ins#r"n)e+ or re)eie forseri)es in o6t"inin: ins#r"n)e+ "n9)o55ission or other )o5ens"tion fro5"n9 ins#r"n)e )o5"n9 $oin: 6#siness inthe Phi%iines or "n9 ":ent thereof+!itho#t Brst ro)#rin: " %i)ense so to ")tfro5 the Co55issioner ; ; ; TheCo55issioner sh"%% s"tisf9 hi5se%f "s tothe )o5eten)e "n$ tr#st!orthiness of the"%i)"nt "n$ sh"%% h"e the ri:ht to ref#seto iss#e or rene! "n$ to s#sen$ or reo(e"n9 s#)h %i)ense in his $is)retion.

Se)tion 400. An9 erson !ho for)o5ens"tion so%i)its or o6t"ins ins#r"n)eon 6eh"%f of "n9 ins#r"n)e )o5"n9 ortr"ns5its for " erson other th"n hi5se%f"n "%i)"tion for " o%i)9 or )ontr")t ofins#r"n)e to or fro5 s#)h )o5"n9 oro?ers or "ss#5es to ")t in the ne:oti"tin:of s#)h ins#r"n)e sh"%% 6e "n ins#r"n)e":ent !ithin the intent of this se)tion "n$sh"%% there69 6e)o5e %i"6%e to "%% the$#ties+ re#ire5ents+ %i"6i%ities "n$

en"%ties to !hi)h "n ins#r"n)e ":ent iss#6@e)t.

The "%i)"tion for "n ins#r"n)e ":ents %i)ense re#ires "

!ritten e;"5in"tion+ "n$ the "%i)"nt 5#st 6e of :oo$ 5or"%

)h"r")ter "n$ 5#st not h"e 6een )oni)te$ of " )ri5e

ino%in: 5or"% t#rit#$e.-&/The ins#r"n)e ":ent !ho )o%%e)ts

re5i#5s fro5 "n ins#re$ erson for re5itt"n)e to the

ins#r"n)e )o5"n9 $oes so in " B$#)i"r9 )"")it9+ "n$ "n

ins#r"n)e )o5"n9 !hi)h $e%iers "n ins#r"n)e o%i)9 o

)ontr")t to "n "#thorie$ ":ent is $ee5e$ to h"e "#thorie$

the ":ent to re)eie "95ent on the )o5"n9s 6eh"%f

-'/Se)tion 4 f#rther rohi6its the o?er+ ne:oti"tion+ o

)o%%e)tion of "n9 "5o#nt other th"n th"t se)iBe$ in the

o%i)9 "n$ this )oers "n9 re6"te fro5 the re5i#5 or "n9

se)i"% f"or or "$"nt":e in the $ii$en$s or 6eneB

"))r#in: fro5 the o%i)9.

Th#s+ #n$er the Ins#r"n)e Co$e+ the ":ent 5#st+ "s

" 5"tter of #"%iB)"tion+ 6e %i)ense$ "n$ 5#st "%so ")t !ithin

the "r"5eters of the "#thorit9 :r"nte$ #n$er the %i)ense "n$

#n$er the )ontr")t !ith the rin)i"%. Other th"n the nee$ fo

" %i)ense+ the ":ent is %i5ite$ in the !"9 he o?ers "n$

ne:oti"tes for the s"%e of the )o5"n9s ins#r"n)e ro$#)ts+ in

his )o%%e)tion ")tiities+ "n$ in the $e%ier9 of the ins#r"n)e

)ontr")t or o%i)9. R#%es re:"r$in: the $esire$ res#%ts 1e..

the re#ire$ o%#5e to )ontin#e to #"%if9 "s " )o5"n9

":ent+ r#%es to )he)( on the "r"5eters on the "#thorit9

:ien to the ":ent+ "n$ r#%es to ens#re th"t in$#str9+ %e:"

"n$ ethi)"% r#%es "re fo%%o!e$ "re 6#i%t3in e%e5ents of )ontro

se)iB) to "n ins#r"n)e ":en)9 "n$ sho#%$ not "n$ )"nnot 6e

re"$ "s e%e5ents of )ontro% th"t "tten$ "n e5%o95en

re%"tionshi :oerne$ 69 the L"6or Co$e.

On the other h"n$+ the Cii% Co$e $eBnes "n ":ent "s

" erson -!ho/ 6in$s hi5se%f to ren$er so5e seri)e or to $o

so5ethin: in reresent"tion or on 6eh"%f of "nother+ !ith the

)onsent or "#thorit9 of the %"tter.-/hi%e this is " er9 6ro"$

$eBnition th"t on its f")e 5"9 een en)o5"ss "n

e5%o95ent re%"tionshi+ the $istin)tions 6et!een ":en)9

"n$ e5%o95ent "re s#


17/25

the "ssi:ne$ t"s( 6"se$ on the "r"5eters o#t%ine$ in the

ertinent %"!s.

Un$er the :ener"% %"! on ":en)9 "s "%ie$ to

ins#r"n)e+ "n ":en)9 5#st 6e e;ress in %i:ht of the nee$ for

" %i)ense "n$ for the $esi:n"tion 69 the ins#r"n)e )o5"n9. In

the resent )"se+ the A:ree5ent f#%%9 seres "s :r"nt of

"#thorit9 to Ton:(o "s M"n#%ifes ins#r"n)e ":ent.-7/This

":ree5ent is s#%e5ente$ 69 the )o5"n9s ":en)9

r")ti)es "n$ #s":es+ $#%9 "))ete$ 69 the ":ent in )"rr9in:

o#t the ":en)9.-8/D9 "#thorit9 of the Ins#r"n)e Co$e+ "n

ins#r"n)e ":en)9 is for )o5ens"tion+-*/" 5"tter the Cii%

Co$e R#%es on A:en)9 res#5es in the "6sen)e of roof to

the )ontr"r9.-20/Other th"n the )o5ens"tion+ the rin)i"% is

6o#n$ to "$"n)e to+ or to rei56#rse+ the ":ent the ":ree$

s#5s ne)ess"r9 for the e;e)#tion of the ":en)9.-2/D9

i5%i)"tion "t %e"st #n$er Arti)%e **& of the Cii% Co$e+ the

rin)i"% )"n "oint t!o or 5ore ":ents to )"rr9 o#t the

s"5e "ssi:ne$ t"s(s+-22/6"se$ ne)ess"ri%9 on the se)iB)

instr#)tions "n$ $ire)ties :ien to the5.

ith "rti)#%"r re%e"n)e to the resent )"se is the

roision th"t In the e;e)#tion of the ":en)9+ the ":ent sh"%%

")t in "))or$"n)e !ith the instr#)tions of the rin)i"%.-24/This

roision is ertinent for #roses of the ne)ess"r9 )ontro%

th"t the rin)i"% e;er)ises oer the ":ent in #n$ert"(in: the

"ssi:ne$ t"s(+ "n$ is "n "re" !here the instr#)tions )"n

intr#$e into the %"6or %"! )on)et of )ontro% so th"t 5in#te

)onsi$er"tion of the f")ts is ne)ess"r9. A re%"te$ "rti)%e is

Arti)%e 8* of the Cii% Co$e !hi)h 6in$s the ":ent to ren$er

"n "))o#nt of his tr"ns")tions to the rin)i"%.

. The Cited Case

The ,e)ision of Noe56er 7+ 2008 refers to the

Brst Insular"n$ Gre'alife)"ses to est"6%ish th"t the )o5"n9

r#%es "n$ re:#%"tions th"t "n ":ent h"s to )o5%9 !ith "re

in$i)"tie of "n e5%o9er3e5%o9ee re%"tionshi.-2&/The

,issentin: Oinions of =#sti)e Pres6itero Ve%"s)o+ =r. "n$

=#sti)e Con)hit" C"rio Mor"%es "%so )ite Insular Life

#ssurance Co. v. National Labor Relations

Commission1se)on$ Ins#%"r )"se-2'/to s#ort the ie! th"

Ton:(o is M"n#%ifes e5%o9ee. On the other h"n$+ M"n#%ife

)ites the Caruncon)"se "n$#8P Mutual *ene&

#ssociation, Inc. v. National Labor Relations

Commission1AFPMDAI )"se-2/to s#ort its "%%e:"tion th"

Ton:(o !"s not its e5%o9ee.

A caveath"s 6een :ien "6oe !ith rese)t to the

#se of the r#%in:s in the )ite$ )"ses 6e)"#se none of the5 is

on "%% fo#rs !ith the resent )"se the #ni#eness of the

f")t#"% sit#"tion of the resent )"se reents it fro5 6ein:

$ire)t%9 "n$ re"$i%9 )"st in the 5o%$ of the )ite$ )"ses. These

)ite$ )"ses "re the5se%es $i?erent fro5 one "nother this

$i?eren)e #n$ers)ores the nee$ to re"$ "n$ #ote the5 in

the )onte;t of their o!n f")t#"% sit#"tions.

The resent )"se "t Brst :%"n)e "e"rs "%i:ne$ !ith

the f")ts in the Caruncon+ the Gre'alife+ "n$ the second

Insular Life)"ses. A )riti)"% $i?eren)e+ ho!eer+ e;ists

"s these cite$ cases $ealt &ith the roer lega

characteri=ation o" a subse/uentmanagement contract

that suerse$e$ the original agenc! contract %et&een

the insurance coman! an$ its agent.Caruncon$e"%

!ith " s#6se#ent A:ree5ent 5"(in: C"r#n:)on: " Ne!

D#siness M"n":er th"t )%e"r%9 s#erse$e$ the A:ree5en

$esi:n"tin: C"r#n:)on: "s "n ":ent e5o!ere$ to so%i)i

"%i)"tions for ins#r"n)e. The Gre'alife case+ on the othe

h"n$+ $e"%t !ith the roer %e:"% )h"r")teri"tion of the

"oint5ent of the R#i 6rothers to ositions hi:her th"n their

ori:in"% osition "s ins#r"n)e ":ents. Th#s+ "fter "n"%9in:

the $#ties "n$ f#n)tions of the R#i 6rothers+ as these were

enumerated in their contracts+ !e )on)%#$e$ th"t the

)o5"n9 r")ti)"%%9 $i)t"te$ the 5"nner 69 !hi)h the R#i

6rothers !ere to )"rr9 o#t their @o6s. Fin"%%9+ the second

Insular Life case$e"%t !ith the i5%i)"tions of $e %os Re9es

"oint5ent "s ")tin: #nit 5"n":er !hi)h+ %i(e the

s#6se#ent )ontr")ts in the Caruncon"n$

the Gre'alife )"ses+ !"s )%e"r%9 $eBne$ #n$er " s#6se#ent

)ontr")t. 0n all these cite$ cases, a $etermination o" the
http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn17http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn18http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn18http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn19http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn20http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn20http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn21http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn21http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn22http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn22http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn23http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn25http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn25http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn26http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn26http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn17http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn18http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn19http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn20http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn21http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn22http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn23http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn25http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn26


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resence o" the La%or Co$e element o" control &as

ma$e on the %asis o" the stiulations o" the

su%se-uent contracts.

In st"r( )ontr"st !ith the Caruncon, the Gre'alife+

"n$ thesecond Insular Life )"ses, the on%9 )ontr")t or

$o)#5ente)tant an$ su%mitte$ as e'i$encein the

resent )"se is the A:ree5ent " #re ":en)9 ":ree5ent in

the Cii% Co$e )onte;t si5i%"r to the ori:in"% )ontr")t in the

&rst Insular Lifecase"n$ the )ontr")t in the#8PM*#I

case. An$ !hi%e Ton:(o !"s %"ter on $esi:n"te$ #nit 5"n":er

in *84+ Dr"n)h M"n":er in **0+ "n$ Re:ion"% S"%es

M"n":er in **+ no for5"% )ontr")t re:"r$in: these

#n$ert"(in:s "e"rs in the re)or$s of the )"se. An9 s#)h

)ontr")t or ":ree5ent+ h"$ there 6een "n9+ )o#%$ h"e "t the

er9 %e"st roi$e$ the 6"ses for roer%9 "s)ert"inin: the

@#ri$i)"% re%"tionshi est"6%ishe$ 6et!een the "rties.

These )riti)"% $i?eren)es+ "rti)#%"r%9 6et!een the

resent )"se "n$ theGre'alife "n$ thesecond Insular Life

cases,sho#%$ therefore i55e$i"te%9 $rie #s to 6e 5ore

r#$ent "n$ )"#tio#s in "%9in: the r#%in:s in these )"ses.

C. (nal-sis o the vidence

).. The A:ree5ent

The ri5"r9 ei$en)e in the resent )"se is the =#%9

+ *77 A:ree5ent th"t :oerne$ "n$ $eBne$ the "rties

re%"tions #nti% the A:ree5ents ter5in"tion in 200. This

A:ree5ent stoo$ for 5ore th"n t!o $e)"$es "n$+ %ase$ on

the recor$s o" the case,!"s neer 5o$iBe$ or no"te$. It

"ss#5es ri5")9 6e)"#se it $ire)t%9 $e"%t !ith the n"t#re of

the "rties re%"tionshi # to the er9 en$ 5oreoer+ 6oth

"rties neer $is#te$ its "#thenti)it9 or the "))#r")9 of its

ter5s.

D9 the A:ree5ents e;ress ter5s+ Ton:(o sere$ "s

"n ins#r"n)e ":ent for M"n#%ife+ not "s "n e5%o9ee. To 6e

s#re+ the A:ree5ents %e:"% )h"r")teri"tion of the n"t#re of

the re%"tionshi )"nnot 6e )on)%#sie "n$ 6in$in: on the

)o#rts "s the $issent )%e"r%9 st"te$+ the )h"r")teri"tion of

the @#ri$i)"% re%"tionshi the A:ree5ent e56o$ie$ is " 5"tter

of %"! th"t is for the )o#rts to $eter5ine. At the s"5e ti5e

tho#:h+ the )h"r")teri"tion the "rties :"e to thei

re%"tionshi in the A:ree5ent )"nnot si5%9 6e 6r#she$ "si$e

6e)"#se it e56o$ies their intent "t the ti5e the9 entere$ the

A:ree5ent+ "n$ the9 !ere :oerne$ 69 this #n$erst"n$in:

thro#:ho#t their re%"tionshi. At the er9 %e"st+ the roision

on the "6sen)e of e5%o9er3e5%o9ee re%"tionshi 6et!een

the "rties )"n 6e "n "i$ in )onsi$erin: the A:ree5ent "n$ its

i5%e5ent"tion+ "n$ in "re)i"tin: the other ei$en)e on

re)or$.

The "rties %e:"% )h"r")teri"tion of their intent

"%tho#:h not )on)%#sie+ is )riti)"% in this )"se 6e)"#se this

intent is not i%%e:"% or o#tsi$e the )onte5%"tion of %"!

"rti)#%"r%9 of the Ins#r"n)e "n$ the Cii% Co$es. Fro5 this

erse)tie+ the roisions of the Ins#r"n)e Co$e )"nnot 6e

$isre:"r$e$ "s this Co$e 1"s heretofore "%re"$9 note$

e;ress%9 enisions " rin)i"%3":ent re%"tionshi 6et!een the

ins#r"n)e )o5"n9 "n$ the ins#r"n)e ":ent in the s"%e of

ins#r"n)e to the #6%i). For this reason, &e can take

/u$icial notice that as a matter o" 0nsurance Co$e

%ase$ %usiness ractice, an agenc! relationshi

re'ails in the insurance in$ustr! "or the urose o"

selling insurance.The A:ree5ent+ 69 its e;ress ter5s+ is in

"))or$"n)e !ith the Ins#r"n)e Co$e 5o$e% !hen it roi$e$

for " rin)i"%3":ent re%"tionshi+ "n$ th#s )"nnot %i:ht%9 6e

set "si$e nor si5%9 6e )onsi$ere$ "s "n ":ree5ent th"t $oes

not ree)t the "rties tr#e intent. This intent+ in)i$ent"%%9+ is

reinfor)e$ 69 the s9ste5 of )o5ens"tion the A:ree5en

roi$es+ !hi)h %i(e!ise is in "))or$"n)e !ith the ro$#)tion

6"se$ s"%es )o55issions the Ins#r"n)e Co$e roi$es.

Si:niB)"nt%9+ ei$en)e sho!s th"t Ton:(os ro%e "s "n

ins#r"n)e ":ent neer )h"n:e$ $#rin: his re%"tionshi !ith

M"n#%ife.If )h"n:es o))#rre$ "t "%%+ the )h"n:es $i$ not

"e"r to 6e in the n"t#re of their )ore re%"tionshi. Ton:(o

essenti"%%9 re5"ine$ "n ":ent+ 6#t 5oe$ # in this ro%e

thro#:h M"n#%ifes re)o:nition th"t he )o#%$ #se other ":ents


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"roe$ 69 M"n#%ife+ 6#t oer"tin: #n$er his :#i$"n)e "n$

in !hose )o55issions he h"$ " sh"re. For !"nt of " 6etter

ter5+ Ton:(o erh"s )o#%$ 6e %"6e%e$ "s " %e"$ ":ent !ho

:#i$e$ #n$er his !in: other M"n#%ife ":ents si5i%"r%9 t"s(e$

!ith the se%%in: of M"n#%ife ins#r"n)e.

Li(e Ton:(o+ the ei$en)e s#::ests th"t these other

":ents oer"te$ #n$er their o!n ":en)9 ":ree5ents. Th#s+ if

Ton:(os )o5ens"tion s)he5e )h"n:e$ "t "%% $#rin: his

re%"tionshi !ith M"n#%ife+ the )h"n:e !"s so%e%9 for #roses

of )re$itin: hi5 !ith his sh"re in the )o55issions the ":ents

#n$er his !in: :ener"te$. As "n ":ent !ho !"s re)r#itin: "n$

:#i$in: other ins#r"n)e ":ents+ Ton:(o %i(e!ise 5oe$ # in

ter5s of the rei56#rse5ent of e;enses he in)#rre$ in the

)o#rse of his %e"$ ":en)9+ " rero:"tie he en@o9e$ #rs#"nt

to Arti)%e *2 of the Cii% Co$e. Th#s+ Ton:(o re)eie$

:re"ter rei56#rse5ents for his e;enses "n$ !"s een

"%%o!e$ to #se M"n#%ife f")i%ities in his inter")tions !ith the

":ents+ "%% of !ho5 !ere+ in the stri)t sense+ M"n#%ife ":ents

"roe$ "n$ )ertiBe$ "s s#)h 69 M"n#%ife !ith the Ins#r"n)e

Co55ission.

Th"t Ton:(o "ss#5e$ " %e"$ershi ro%e 6#t

neerthe%ess !ho%%9 re5"ine$ "n ":ent is the ineit"6%e

)on)%#sion th"t res#%ts fro5 the re"$in: of the A:ree5ent 1the

on%9 ":ree5ent on re)or$ in this )"se "n$ his )ontin#in: ro%e

there#n$er "s s"%es ":ent+ fro5 the erse)tie of the

Ins#r"n)e "n$ the Cii% Co$es "n$ in %i:ht of !h"t Ton:(o

hi5se%f "tteste$ to "s his ro%e "s Re:ion"% S"%es M"n":er. To

6e s#re+ this interret"tion )o#%$ h"e 6een )ontr"$i)te$ if

other ":ree5ents h"$ 6een s#65itte$ "s ei$en)e of the

re%"tionshi 6et!een M"n#%ife "n$ Ton:(o on the %"tters

e;"n$e$ #n$ert"(in:s. In the "6sen)e of "n9 s#)h ei$en)e+

ho!eer+ this re"$in: 6"se$ on the ""i%"6%e ei$en)e "n$

the "%i)"6%e ins#r"n)e "n$ )ii% %"! roisions 5#st st"n$+

s#6@e)t on%9 to o6@e)tie "n$ ei$enti"r9 L"6or Co$e tests on

the e;isten)e of "n e5%o9er3e5%o9ee re%"tionshi.

In "%9in: s#)h L"6or Co$e tests+ ho!eer+ the

enfor)e5ent of the A:ree5ent $#rin: the )o#rse of the

"rties re%"tionshi sho#%$ 6e note$. Fro5 *77 #nti% the

ter5in"tion of the A:ree5ent+ Ton:(os o))#"tion !"s to

se%% M"n#%ifes ins#r"n)e o%i)ies "n$ ro$#)ts. Doth "rtie

")#ies)e$ !ith the ter5s "n$ )on$itions of the

A:ree5ent. Ton:(o+ for his "rt+ "))ete$ "%% the 6eneBts

o!in: fro5 the A:ree5ent+ "rti)#%"r%9 the :enero#s

)o55issions.

Ei$en)e in$i)"tes th"t Ton:(o )onsistent%9 )%#n: to

the ie! th"t he !"s "n in$een$ent ":ent se%%in: M"n#%ife

ins#r"n)e ro$#)ts sin)e he in"ri"6%9 $e)%"re$ hi5se%f "

6#siness or se%f3e5%o9e$ erson in his in)o5e t";

ret#rns. This consistenc! &ith, an$ action ma$e

ursuant to the Agreement &ere ieces o" e'i$ence

that &ere ne'er mentione$ nor consi$ere$ in our

1ecision o" +o'em%er 7, >88?."$ the9 6een )onsi$ere$

the9 )o#%$+ at the ver- least+ sere "s Ton:(os "$5issions

":"inst his interest. Stri)t%9 se"(in:+ Ton:(os t"; ret#rns

)"nnot 6#t 6e %e:"%%9 si:niB)"nt 6e)"#se he )ertiBe$ #n$e

o"th the "5o#nt he e"rne$ "s :ross 6#siness in)o5e+ )%"i5e$

6#siness $e$#)tions+ %e"$in: to his net t";"6%e in)o5e. This

sho#%$ 6e ei$en)e of the Brst or$er th"t )"nnot 6e 6r#she$

"si$e 69 " 5ere $eni"%. Een on " %"95"ns ie! th"t is $eoi$

of %e:"% )onsi$er"tions+ the e;tent of his "nn#"% in)o5e "%one

ren$ers his )%"i5e$ e5%o95ent st"t#s $o#6tf#%.-27/

"n$ in h"n$ !ith the )on)et of "$5ission ":"inst

interest in )onsi$erin: the t"; ret#rns+ the )on)et of estoe

" %e:"% "n$ e#it"6%e )on)et-28/ne)ess"ri%9 5#st )o5e into

%"9. Ton:(os reio#s "$5issions in seer"% 9e"rs of t";

ret#rns "s "n in$een$ent ":ent+ "s ":"inst his 6e%"te$ )%"i5

th"t he !"s "%% "%on: "n e5%o9ee+ "re too $i"5etri)"%%9

oose$ to 6e si5%9 $is5isse$ or i:nore$. Interestinl-,

1ustice !elascos dissentin o'inion states that Ton"o 2as

forced to declare himself a business or self+em'lo-ed 'erson

b- Manulifes 'ersistent refusal to reconie him as its

em'lo-ee.0$12Regrettabl-, the dissent has shown no

basis or this conclusion, an understandable omission

since no evidence in act exists on this point in the

records o the case. In f")t+ !h"t the ei$en)e sho!s is
http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn27http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn28http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn28http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn29http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn27http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn28http://sc.judiciary.gov.ph/jurisprudence/2010/june2010/167622.htm#_ftn29


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Ton:(os f#%% )onfor5it9 !ith+ "n$ ")tion "s+ "n in$een$ent

":ent #nti% his re%"tionshi !ith M"n#%ife too( " 6"$ t#rn.

Another interestin: oint the $issent r"ise$ !ith rese)t to

the A:ree5ent is its )on)%#sion th"t the A:ree5ent ne:"te$

"n9 e5%o95ent re%"tionshi 6et!een Ton:(o "n$ M"n#%ife so

th"t the )o55issions he e"rne$ "s " s"%es ":ent sho#%$ not

6e )onsi$ere$ in the $eter5in"tion of the 6")(!":es "n$

se"r"tion "9 th"t sho#%$ 6e :ien to hi5. This "rt of the

$issent is )orre)t "%tho#:h it !ent on to t!ist this )on)%#sion

69 "ssertin: th"t Ton:(o h"$ $#"% ro%es in his re%"tionshi !ith

M"n#%ife he !"s "n ":ent+ not "n e5%o9ee+ in so f"r "s he

so%$ ins#r"n)e for M"n#%ife+ 6#t !"s "n e5%o9ee in his

)"")it9 "s " 5"n":er.Th#s+ the $issent )on)%#$e$ th"t

Ton:(os 6")(!":es sho#%$ on%9 6e !ith rese)t to his ro%e "s

M"n#%ifes 5"n":er.

The )on)%#sion !ith rese)t to Ton:(os e5%o95ent

"s " 5"n":er is+ of )o#rse+ #n"))et"6%e for the %e:"%+ f")t#"%

"n$ r")ti)"% re"sons $is)#sse$ in this Reso%#tion. In 6rief+

the "actual reasonis :ro#n$e$ on the %")( of ei$enti"r9

s#ort of the )on)%#sion th"t M"n#%ife e;er)ise$ )ontro% oer

Ton:(o in the sense #n$erstoo$ in the L"6or Co$e. The legal

reason+ "rt%9 6"se$ on the %")( of f")t#"% 6"sis+ is the

erroneo#s %e:"% )on)%#sion th"t M"n#%ife )ontro%%e$ Ton:(o

"n$ !"s th#s its e5%o9ee.The ractical reason+ on the

other h"n$+ is the h"o) th"t the $issents #n!"rr"nte$

)on)%#sion !o#%$ )"#se the ins#r"n)e in$#str9 th"t+ 69 the

%"!s o!n $esi:n+ oer"te$ "%on: the %ines of rin)i"%3":ent

re%"tionshi in the s"%e of ins#r"n)e.

).2. Other Ei$en)e of A%%e:e$ Contro%

A :%"rin: ei$enti"r9 :" for Ton:(o in this )"se is

the %")( of ei$en)e on re)or$ sho!in: th"t M"n#%ife eer

e;er)ise$ 5e"ns3"n$35"nner )ontro%+ een to " %i5ite$

e;tent+ oer Ton:(o $#rin: his "s)ent in M"n#%ifes s"%es

%"$$er. In *84+ Ton:(o !"s "ointe$ #nit

5"n":er. Ine;%i)"6%9+ Ton:(o neer 6othere$ to resent "n9

ei$en)e "t "%% on !h"t this $esi:n"tion 5e"nt.This "%so ho%$s

tr#e for Ton:(os "oint5ent "s 6r"n)h 5"n":er in **0+ "n$

"s Re:ion"% S"%es M"n":er in **. The 6est ei$en)e o

)ontro% the ":ree5ent or $ire)tie re%"tin: to Ton:(os $#ties

"n$ resonsi6i%ities !"s neer intro$#)e$ "s "rt of the

re)or$s of the )"se. The realit- is, 'rior to de %ios letter,

Manulife had 'racticall- left Ton"o alone not onl- in doin

the business of sellin insurance, but also in uidin the

aents under his 2in.As $is)#sse$ 6e%o!+ the "%%e:e$

$ire)ties )oere$ 69 $e ,ios %etter+ heretofore #ote$ in f#%%

!ere o%i)9 $ire)tions "n$ t"r:ete$ res#%ts th"t the )o5"n9

!"nte$ Ton:(o "n$ the other s"%es :ro#s to re"%i:n !ith in

their o!n se%%in: ")tiities. This is the re"%it9 th"t the "rties

resente$ ei$en)e )onsistent%9 te%%s #s.

h"t+ to Ton:(o+ sere "s ei$en)e of %"6or %"! )ontro% "re

the )o$es of )on$#)t th"t M"n#%ife i5oses on its ":ents in

the s"%e of ins#r"n)e. The 5ere resent"tion of )o$es or o

r#%es "n$ re:#%"tions+ ho!eer+ is not'er sein$i)"tie o

%"6or %"! )ontro% "s the %"! "n$ @#risr#$en)e te")h #s.

As "%re"$9 re)ite$ "6oe+ the Ins#r"n)e Co$e

i5oses o6%i:"tions on 6oth the ins#r"n)e )o5"n9 "n$ its

":ents in the erfor5"n)e of their rese)tie o6%i:"tions

#n$er the Co$e+ "rti)#%"r%9 on %i)enses "n$ their rene!"%s

on the reresent"tions to 6e 5"$e to otenti"% )#sto5ers+ the

)o%%e)tion of re5i#5s+ on the $e%ier9 of ins#r"n)e o%i)ies

on the 5"tter of )o5ens"tion+ "n$ on 5e"s#res to ens#re

ethi)"% 6#siness r")ti)e in the in$#str9.

The :ener"% %"! on ":en)9+ on the other h"n$

e;ress%9 "%%o!s the rin)i"% "n e%e5ent of )ontro% oer the

":ent in " 5"nner )onsistent !ith "n ":en)9 re%"tionshi. In

this sense+ these )ontro% 5e"s#res )"nnot 6e re"$ "s

in$i)"tie of %"6or %"! )ontro%. Fore5ost "5on: these "re the

$ire)ties th"t the rin)i"% 5"9 i5ose on the ":ent to

")hiee the "ssi:ne$ t"s(s+ to the e;tent th"t the9 $o not

ino%e the 5e"ns "n$ 5"nner of #n$ert"(in: these t"s(s

The %"! %i(e!ise o6%i:"tes the ":ent to ren$er "n "))o#nt in

this sense+ the rin)i"% 5"9 i5ose on the ":ent se)iB)

instr#)tions on ho! "n "))o#nt sh"%% 6e 5"$e+ "rti)#%"r%9 on

the 5"tter of e;enses "n$ rei56#rse5ents. To these

e;tents+ )ontro% )"n 6e i5ose$ thro#:h r#%es "n$ re:#%"tions


21/25

!itho#t intr#$in: into the %"6or %"! )on)et of )ontro% for

#roses of e5%o95ent.

Fro5 @#risr#$en)e+ "n i5ort"nt %esson th"t the &rst

Insular Life)"se te")hes #s is th"t " )o55it5ent to "6i$e 69

the r#%es "n$ re:#%"tions of "n ins#r"n)e )o5"n9 $oes

not i'so facto5"(e the ins#r"n)e ":ent "n e5%o9ee. Neither

$o :#i$e%ines so5eho! restri)tie of the ins#r"n)e ":ents

)on$#)t ne)ess"ri%9 in$i)"te )ontro% "s this ter5 is $eBne$ in

@#risr#$en)e.3ui$elines in$icati'e o" la%or la& control,

as the 3rst )nsular Liecase tells us, shoul$ not merel!

relate to the mutuall! $esira%le result inten$e$ %! the

contractual relationshi@ the! must ha'e the nature o"

$ictating the means or metho$s to %e emlo!e$ in

attaining the result, or o" ()ing the metho$olog! an$

o" %in$ing or restricting the art! hire$ to the use o"

these means.In f")t+ res#%ts3!ise+ the rin)i"% )"n i5ose

ro$#)tion #ot"s "n$ )"n $eter5ine ho! 5"n9 ":ents+ !ith

se)iB) territories+ o#:ht to 6e e5%o9e$ to ")hiee the

)o5"n9s o6@e)ties. These "re 5"n":e5ent o%i)9 $e)isions

th"t the %"6or %"! e%e5ent of )ontro% )"nnot re")h. O#r r#%in:

in these rese)ts in the &rst Insular Life)"se !"s r")ti)"%%9

reiter"te$ inCaruncon. Th#s+ "s !i%% 6e sho!n 5ore f#%%9

6e%o!+ M"n#%ifes )o$es of )on$#)t+-40/"%% of !hi)h $o not

intr#$e into the ins#r"n)e ":ents 5e"ns "n$ 5"nner of

)on$#)tin: their s"%es "n$ on%9 )ontro% the5 "s to the $esire$

res#%ts "n$ Ins#r"n)e Co$e nor5s+ )"nnot 6e #se$ "s 6"sis for

" Bn$in: th"t the %"6or %"! )on)et of )ontro% e;iste$

6et!een M"n#%ife "n$ Ton:(o.

The $issent )onsi$ers the i5osition of "$5inistr"tie "n$

5"n":eri"% f#n)tions on Ton:(o "s in$i)"tie of %"6or %"!

)ontro% th#s+ Ton:(o as manaer, but not as insurance

aent,6e)"5e M"n#%ifes e5%o9ee. It $re! this )on)%#sion

fro5 !h"t the other M"n#%ife 5"n":ers $is)%ose$ in their

"-4/

,#ties of M"n#%ifes M"n":er ,#

3 to ren$er or re)o55en$ rose)tie":ents to 6e %i)ense$+ tr"ine$ "n$)ontr")te$ to se%% M"n#%ife ro$#)ts "n$!ho !i%% 6e "rt of 59 Unit

3 tr"in #n$

3 to )oor$in"te ")tiities of the ":ents #n$er

-the 5"n":ers/ Unit in -the ":ents/ $"i%9+!ee(%9 "n$ 5onth%9 se%%in: ")tiities+5"(in: s#re th"t their rese)tie s"%est"r:ets "re 5et3 to )on$#)t erio$i) tr"inin: sessions for-the/ ":ents to f#rther enh"n)e their s"%ess(i%% "n$3 to "ssist -the/ ":ents !ith their s"%es")tiities 69 !"9 of @oint Be%$!or(+)ons#%t"tions "n$ one3on3one e"%#"tion"n$ "n"%9sis of "rti)#%"r "))o#nts

3 roer%9

f#n$s+ ss#erisore5itt"n)s#eriso3 $ire)t "":ents #nf#n)tions re)or$ $o)#5ent

Asi$e fro5 these "


22/25

the 'anulie managers roleis to

coordinate activities of the aents under the manaers 9nit in

the aents dail-, 2ee"l-, and monthl- sellin activities,

ma"in sure that their res'ective sales tarets are met.

the !istrict 'anagers dut-

in 4repalieis to 'ro'erl- account, record, and document

the com'an-:s funds, s'ot+chec" and audit the 2or" of the

one su'ervisors, conserve the com'an-:s business in the

district throuh reinstatements, follo2 u' the submission of

2ee"l- remittance re'orts of the debit aents and one

su'ervisors, 'reserve com'an- 'ro'ert- in ood condition,

train understudies for the 'osition of district manaers, and

maintain his ;uota of sales (the failure of 2hich is a round

for termination).

the5one 6upervisors 7also in

4repalie8has the dut- to direct and su'ervise the sales

activities of the debit aents under him, conserve com'an-

'ro'ert- throuh reinstatements, underta"e and dischare

the functions of absentee debit aents, s'ot+chec" the

records of debit aents, and insure 'ro'er documentation of

sales and collections b- the debit aents.

These @o6 )ontents "re !or%$s ""rt in ter5s of

)ontro%. In Gre'alife+ the $et"i%s of ho! to $o the @o6 "re

se)iBe$ "n$ re3$eter5ine$ in the resent )"se+ the

oer"tie !or$s "re the s"%es t"r:et+ the 5etho$o%o:9 6ein:

%eft #n$eBne$ e;)et to the e;tent of 6ein: )oor$in"tie. To

6e s#re+ " )oor$in"tie st"n$"r$ for " 5"n":er )"nnot 6e

in$i)"tie of )ontro% the st"n$"r$ on%9 essenti"%%9 $es)ri6es

!h"t " Dr"n)h M"n":er is the erson in the %e"$ !ho

or)hestr"tes ")tiities !ithin the :ro#. To )oor$in"te+"n$

there69 to %e"$ "n$ to or)hestr"te+ is not so 5#)h " 5"tter of

)ontro% 69 M"n#%ife it is si5%9 " st"te5ent of " 6r"n)h

5"n":ers ro%e in re%"tion !ith his ":ents fro5 the oint of

ie! of M"n#%ife !hose 6#siness Ton:(os s"%es :ro# )"rries.

A $ist#r6in: note+ !ith rese)t to the resente$

"


23/25

5ore ":ents is not " 5e"ns3"n$35etho$ )ontro% "s it re%"tes+

5ore th"n "n9thin: e%se+ "n$ is $ire)t%9 re%e"nt+ to M"n#%ifes

o6@e)tie of e;"n$e$ 6#siness oer"tions thro#:h the #se of

" 6i::er s"%es for)e !hose 5e56ers "re "%% on " rin)i"%3

":ent re%"tionshi. An imortant oint to note here is

that Tongko &as not suer'ising regular "ull*time

emlo!ees o" #anuli"e engage$ in the running o" the

insurance %usiness@ Tongko &as eecti'el! gui$ing his

cors o" sales agents, &ho are %oun$ to #anuli"e

through the same Agreement that he ha$ &ith

#anuli"e, all the &hile sharing in these agents

commissions through his o'erri$es.This is the %e"$ ":ent

)on)et 5entione$ "6oe for !"nt of " 5ore "rori"te

ter5+ sin)e the tit%e of Dr"n)h M"n":er #se$ 69 the "rties is

re"%%9 " 5isno5er :ien th"t !h"t is ino%e$ is not " se)iB)

re:#%"r 6r"n)h of the )o5"n9 6#t " )ors of non3e5%o9e$

":ents+ $eBne$ in ter5s of )oere$ territor9+ thro#:h !hi)h

the )o5"n9 se%%s ins#r"n)e. Sti%% "nother oint to )onsi$er is

th"t Ton:(o !"s not een settin: o%i)ies in the !"9 " re:#%"r

)o5"n9 5"n":er $oes )o5"n9 "i5s "n$ o6@e)ties !ere

si5%9 re%"9e$ to hi5 !ith s#::estions on ho! these

o6@e)ties )"n 6e re")he$ thro#:h the e;"nsion of " non3

e5%o9ee s"%es for)e.

Interestin:%9+ " %"r:e "rt of $e ,ios %etter fo)#se$ on

in)o5e+ !hi)h M"n#%ife $e5onstr"te$+ in Ton:(os )"se+ to 6e

#n"?e)te$ 69 the ne! :o"% "n$ $ire)tion the )o5"n9 h"$

set. In)o5e in ins#r"n)e ":en)9+ of )o#rse+ is $een$ent on

res#%ts+ not on the 5e"ns "n$ 5"nner of se%%in: " 5"tter for

Ton:(o "n$ his ":ents to $eter5ine "n$ "n "re" into !hi)h

M"n#%ife h"$ not !"$e$. Un$eni"6%9+ $e ,ios %etter )ont"ine$

" $ire)tie to se)#re " )o5etent "ssist"nt "t Ton:(os o!n

e;ense. hi%e )o#)he$ in ter5s of " $ire)tie+ it )"nnot

stri)t%9 6e #n$erstoo$ "s "n intr#sion into Ton:(os 5etho$ of

oer"tin: "n$ s#erisin: the :ro# of ":ents !ithin his

$e%ine"te$ territor9. More th"n "n9thin: e%se+ the $ire)tie

!"s " si:n"% to Ton:(o th"t his res#%ts !ere #ns"tisf")tor9+

"n$ !"s " s#::estion on ho! Ton:(o

tongko v. manulife

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