SO ORDERED.
Brion, Bersamin, Villarama, Jr. and Sereno, JJ.,
concur.
Petition granted, judgment and resolution reversed and
set aside.
Note.—Section 3407 of the Tariff and Customs Code of
the Philippines is not a penal provision governing the
conduct of a customs broker—the liability for smuggling is
provided for in Section 3601. (Remigio vs. Sandiganbayan,
374 SCRA 114 [2002])
——o0o——
G.R. No. 190381. October 6, 2010.*
COCA-COLA BOTTLERS PHILIPPINES, INC., petitioner,
vs. RODRIGO MERCADO, ANTONIO VILLERO, LUISITO
MANTIBE, MARCELO FABIAN, EDMUNDO YALUNG,
EDILBERTO GUEVARRA, MICHAEL GUICO, ANGEL
FERNANDO, ERNESTO DELA CRUZ, EFREN
FERNANDO, ROBERTO TORRES, JIMMY DUNGO,
WILLY OCAMPO, SANDRO DIZON, ALLAN OCAMPO,
CARLITO MANABAT, CARLITO SINGIAN, JAY
MANABAT, ERIC AQUINO, RODRIGO DAVID, NICOLAS
LUQUIAZ,** LUCIO MANTIBE, PRUDENCIO PALALON,
RAFAEL CABRERA, ROMMER SINGIAN,*** ROGELIO
MALIT, ALVIN ANDAYA,
_______________
* SECOND DIVISION.
** Also referred to as Nicolas Luquias in the Compromise Agreement
and in the Joint Release, Waiver and Quitclaim.
*** Also referred to as Romer Singian in the Compromise Agreement
and in the Joint Release, Waiver and Quitclaim.
475
VOL. 632, OCTOBER 6, 2010 475
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
EMERITO B. DUNGCA, ALMIRANTE GORAL,**** AND
NICOLAS CURA, respondents.
Actions; Compromise Agreements; A compromise agreement is
a contract whereby the parties undertake reciprocal obligations to
resolve their differences in order to avoid litigation or put an end
to one already instituted—it is a judicial covenant having the force
and effect of a judgment, subject to execution in accordance with
the Rules of Court, and having the effect and authority of res
judicata upon its approval by the court where the litigation is
pending.—Under the Civil Code of the Philippines, contracting
parties may establish such stipulations, clauses, terms, and
conditions, as they deem convenient, so long as they are not
contrary to law, morals, good customs, public order, or public
policy. A compromise agreement is a contract whereby the parties
undertake reciprocal obligations to resolve their differences in
order to avoid litigation or put an end to one already instituted. It
is a judicial covenant having the force and effect of a judgment,
subject to execution in accordance with the Rules of Court, and
having the effect and authority of res judicata upon its approval
by the court where the litigation is pending. Finding the
Compromise Agreement dated June 16, 2010 between petitioner
and respondents to be validly executed, not being contrary to law,
morals, good customs, public order, or public policy, we, therefore,
accept and affirm the same.
MANIFESTATION AND MOTION in the Supreme Court.
The facts are stated in the resolution of the Court.
Bernardino F. Consulta for petitioner.
Nenita C. Mahinay for respondents.
476
476 SUPREME COURT REPORTS ANNOTATED
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
RESOLUTION
NACHURA, ***** J.:
Before us is a Manifestation and Motion1 filed by
respondents, stating that petitioner has satisfied the
judgment award in their favor by way of a Compromise
Agreement2 dated June 16, 2010. On the basis of the
Compromise Agreement, the parties filed a motion for
judgment, which was granted by the Labor Arbiter in an
Order3 dated June 21, 2010, declaring NLRC Case No.
RAB-III-02-3910-02,4 the origin of the instant case, as
closed and terminated. Respondents pray that the petition
for review before us be dismissed for having been rendered
moot and academic by petitioner’s satisfaction of judgment.
The Compromise Agreement reads—
COMPROMISE AGREEMENT
“WHEREAS, in February 2002, MICHAEL MEROVIN
GUICO [“Guico”], ANGEL FERNANDO [“Fernando”], LUISITO
MANTIBE [“Mantibe”], WILLY OCAMPO [“Ocampo”], ALLAN
OCAMPO [“Ocampo”], ALMERANTE GORAL [“Goral”],
CARLITO MANABAT [“Manabat”], ERNESTO DELA CRUZ
[“Dela Cruz”], JAY MANABAT [“Manabat”], NICOLAS CURA
[“Cura”], SANDRO DIZON [“Dizon”], NICOLAS LUQUIAS
[“Luquias”], RODRIGO MERCADO [“Mercado”], ALVIN
ANDAYA [“Andaya”], ANTONIO VILLERO [“Villero”],
EDILBERTO GUEVARRA [“Guevarra”], EFREN FERNANDO
[“Fernando”], EMERITO DUNGCA [“Dungca”], ERIC AQUINO
[“Aquino”], JIMMY DUNGO [“Dungo”], MARCELO FABIAN
[“Fabian”], ROBERTO
_______________
**** Also referred to as Almerante Goral in the Compromise Agreement and in
the Joint Release, Waiver and Quitclaim.
***** In lieu of Associate Justice Antonio T. Carpio per Special Order No. 898
dated September 28, 2010.
1 Rollo, pp. 616-618.
2 Id., at pp. 625-629.
3 Id., at p. 619.
4 Entitled, “IBM Local I, Rodrigo Mercado, et al. v. Coca-Cola Bottlers Phils.,
Inc., R.S. Cunanan General Services and Romac Services and Trading
Corporation.”
477
VOL. 632, OCTOBER 6, 2010 477
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
TORRES [“Torres”], RODRIGO DAVID [“David”], ROMER
SINGIAN [“Singian”], CARLITO SINGIAN [“Singian”],
EDMUNDO YALUNG [“Yalung”], PRUDENCIO PALALON
[“Palalon”], RAFAEL CABRERA [“Cabrera”], ROGELIO
MALIT [“Malit”] and LUCIO MANTIBE [“Mantibe”]
(collectively, the “Complainants”) were among the complainants
who filed a complaint for illegal dismissal and regularization with
claims for wage and benefits differential according to CBA, moral
and exemplary damages against COCA COLA BOTTLERS
PHILIPPINES INC. [the “Company”] docketed as NLRC Case
No. RAB-III-02-3901-02 and NLRC NCR CA No. 037888-03
entitled “Rodrigo Mercado, et al. v. Coca-Cola Bottlers Phils., Inc.,
et al.”
WHEREAS, on 30 September 2003, Labor Arbiter Herminio V.
Suelo rendered a Decision dismissing the Complaint against the
Company;
WHEREAS, complainant’ Appeal was granted by the NLRC in
its 30 July 2008 Resolution; the dispositive portion of which
states:
WHEREFORE, the Motion for Reconsideration of
complainants is GRANTED. The Decision dated January
31, 2005 is SET ASIDE and VACATED, and NEW ONE
entered;
(a) declaring respondent Coca-Cola Bottlers Phils., Inc.
as the employer of complainants;
(b) finding complainants to have been dismissed
illegally;
(c) ordering Coca-Cola Bottlers Philippines, Inc. to
reinstate complainants to their former positions as regular
employees without loss of seniority rights and with other
privileges and with payment of full backwages from the
date of dismissal on June 3, 2002 until actual
reinstatement;
(d) declaring Romac Services & Trading Co. Inc. and
Rogelio S. Cunanan General Services to be engaged in
labor-only contracting; and
(e) ordering respondent Coca-Cola Bottlers Phils. Inc. to
pay attorney’s fees at 10% of the total award.
The other claims are dismissed for lack of merit.
SO ORDERED.
478
478 SUPREME COURT REPORTS ANNOTATED
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
WHEREAS, CCBPI filed a Petition for Certiorari with the
Court of Appeals docketed as CA G.R. SP No. 108404 entitled
“Coca-Cola Bottlers Philippines, Inc. vs. National Labor Relations
Commission and Rodrigo Mercado, et al.”
WHEREAS, on 20 August 2009, the Eight Division of the Court
of Appeals rendered a Decision denying the Petition;
WHEREAS, the Company filed a Motion for Reconsideration
which was denied by the Court of Appeals in its 18 November
2009 Resolution;
WHEREAS, the Company filed a Petition for Review on
Certiorari with the Supreme Court, which is docketed as G.R. No.
190381 entitled “Coca-Cola Bottlers Philippines, Inc. vs. Rodrigo
Mercado, et al.”
WHEREAS, the Company has nevertheless decided to
settle/satisfy complainants’ claims/award and thus put an end to
NLRC Case No. RAB-III-02-3901-02; NLRC NCR CA No. 037888-
03; CA G.R. SP No. 108404 and G.R. No. 190381;
NOW THEREFORE, for and in consideration of the foregoing
premises and the mutual covenants set forth hereinbelow, the
parties agree as follows:
1. Complainants shall each receive financial assistance in the
amount as follows:
NAME AMOUNT
Michael Merovin Guico P 2,153,850.00
Angel Fernando 2,266,300.00
Luisito Mantibe 2,266,300.00
Willy Ocampo 2,266,300.00
Allan Ocampo 2,655,550.00
Almerante Goral 2,655,550.00
Carlito Manabat 2,655,550.00
Ernesto Dela Cruz 2,655,550.00
Jay Manabat 2,655,550.00
Nicolas Cura 2,655,550.00
Sandro Dizon 2,655,550.00
Nicolas Luquias 2,941,000.00
Rodrigo Mercado 2,941,000.00
479
VOL. 632, OCTOBER 6, 2010 479
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
Alvin Andaya 3,036,150.00
Antonio Villero 3,036,150.00
Edilberto Guevarra 3,036,150.00
Efren Fernando 3,036,150.00
Emerito Dungca 3,036,150.00
Eric Aquino 3,036,150.00
Jimmy Dungo 3,036,150.00
Marcelo Fabian 3,036,150.00
Roberto Torres 3,036,150.00
Rodrigo David 3,036,150.00
Romer Singian 3,036,150.00
Carlito Singian 3,269,700.00
Edmundo Yalung 3,269,700.00
Prudencio Palalon 3,269,700.00
Rafael Cabrera 3,269,700.00
Rogelio Malit 3,269,700.00
Lucio Mantibe 3,330,250.00
as complete settlement of their claims in NLRC NCR Case No. 00-
07-07574-99/NLRC NCR CA No. 030908-02 and/or full
satisfaction of the judgment award, including the reinstatement
aspect thereof, in CA G.R. SP No. 108404 and G.R. No. 190381.
2. Complainants agree that the amount received is in
consideration of any and all monetary claims they might have as
well as and including separation pay in lieu of their actual
reinstatement as regular employees including any other liability
or claims arising from, in relation to and/or in connection with
their assignment with the Company.
3. By virtue of this Agreement, complainants consider their
claims (including the reinstatement aspect thereof) in NLRC RAB
III-02-3901-02/NLRC NCR CA No. 037888-03 as fully settled, and
the judgment award in CA G.R. SP No. 108404 and G.R. No.
190381 (including the reinstatement aspect thereof) as fully
satisfied, and hereby consider said cases as dismissed, with
prejudice, and undertake to desist from prosecuting and/or
instituting any other case or claim against any and/or all the
respondents.
480
480 SUPREME COURT REPORTS ANNOTATED
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
IN WITNESS WHEREOF, the parties have hereunto affixed
their signatures this 16th day of June 2010 at the City of San
Fernando, Pampanga.
COMPLAINANTS: LAGUESMA MAGSALIN CONSULTA
& GASTARDO
Counsel for Coca-Cola Bottlers
(Signed) Philippines, Inc.
MICHAEL MEROVIN GUICO 706 Prestige Tower, F. Ortigas Jr. Road
Ortigas Center, Pasig City
(Signed) By:
ANGEL FERNANDO
(Signed) BERNARDINO F. CONSULTA
LUISITO MANTIBE PTR No. 5922571; 01-11-10; Pasig City
IBP No. 810944; 01-11-10; Quezon City
Roll No. 33337
(Signed) MCLE Compliance No. III-0010894
WILLY OCAMPO 31 March 2010
(Signed) (Signed)
ALLAN OCAMPO CARLOS LUIS L. FERNANDEZ
PTR No. 5922576; 01-11-10; Pasig City
IBP No. 810942; 01-11-10; Quezon City
(Signed) Roll No. 45321
ALMERANTE GORAL MCLE Compliance No. III-0010898
31 March 2010
(Signed)
CARLITO MANABAT
(Signed)
ERNESTO DELA CRUZ
(Signed)
JAY MANABAT
(Signed)
NICOLAS CURA
(Signed)
SANDRO DIZON
(Signed)
NICOLAS LUQUIAS
(Signed)
RODRIGO MERCADO
481
VOL. 632, OCTOBER 6, 2010 481
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
(Signed)
ALVIN ANDAYA
(Signed)
ANTONIO VILLERO
(Signed)
EDILBERTO GUEVARRA
(Signed)
EFREN FERNANDO
(Signed)
EMERITO DUNGCA
(Signed)
ERIC AQUINO
(Signed)
JIMMY DUNGO
(Signed)
MARCELO FABIAN
(Signed)
ROBERTO TORRES
(Signed)
RODRIGO DAVID
(Signed)
ROMER SINGIAN
(Signed)
CARLITO SINGIAN
(Signed)
EDMUNDO YALUNG
(Signed)
PRUDENCIO PALALON
(Signed)
RAFAEL CABRERA
(Signed)
ROGELIO MALIT
(Signed)
LUCIO MANTIBE
482
482 SUPREME COURT REPORTS ANNOTATED
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
Assisted by:
(Signed)
ATTY. NENITA C. MAHINAY
In its own Manifestation and Compliance,5 petitioner
confirms the parties’ amicable settlement through the
Compromise Agreement and professes that it interposes no
objection to respondents’ prayer for dismissal of the
petition. Petitioner also submits, aside from a copy of the
Compromise Agreement, a Joint Release, Waiver and
Quitclaim6 dated June 16, 2010, where the respondents
acknowledged receipt of the amounts indicated in the
Compromise Agreement as complete settlement of all their
claims against petitioner, relative to this case, and in
consideration of which they—
“1. x x x remise, release and forever discharge the Company,
its successors-in-interest, stockholders, officers, directors, agents
or employees from any action, sum of money, damages, claims and
demands whatsoever, which in law or in equity [they] ever had,
now have, or which [they, their] successors and assigns hereafter
may have by reason of any matter, cause or thing whatsoever, up
to the time of these presents, the intention hereof being
completely and absolutely to release the Company as well as its
successors-in-interest, stockholders, officers, directors, agents or
employees from all liabilities arising wholly, partially or directly
from our temporary assignment/engagement with the Company.
2. x x x acknowledge the temporary nature of [their]
assignment/engagement with the Company and the absence of an
employer-employee relationship between [them] and the
Company, and [they] further acknowledge that [they] have no
intention whatsoever of being reinstated to [their] previous
assignment at the Company.
3. x x x also manifest that the payment by the Company of
any or all of the foregoing sum of money shall not be taken by
[them, their] heirs or assigns as a confession and/or admission of
liability on the part of the Company, as well as its successors-in-
interest, stockholders, officers, directors, agents or employees for
any matter,
_______________
5 Rollo, pp. 621-624.
6 Id., at pp. 630-633.
483
VOL. 632, OCTOBER 6, 2010 483
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
cause, demand or claim that [they] may have against any or all of
them. [They] acknowledge that [they] have received all amounts
that are now, or in the future, may be due [them] from the
Company. [They] also acknowledge that during the entire period
of [their] temporary assignment/engagement with the Company,
[they] received and were paid all compensations, benefits and
privileges to which [they] were entitled under the law, and if
[they] are hereinafter be found in any manner to have been
entitled to any amount, the above consideration is a full and
complete satisfaction of any and all such undisclosed claims.
4. x x x warrant that [they] will institute no action and will
not continue to prosecute any pending action, against the
Company, as well as its successors-in-interest, stockholders,
officers, directors, agents or employees, by reason of [their]
temporary assignment/engagement with the Company, including
the case docketed as G.R. No. 190381 pending before the Supreme
Court.
5. x x x finally declare that [they] have read and fully
understand this document, and the release, waiver and quitclaim
hereby given is made willingly and voluntarily and with full
knowledge of [their] rights under the law.”7
The Joint Release, Waiver and Quitclaim was signed
individually by respondents and their counsel of record.
Under the Civil Code of the Philippines,8 contracting
parties may establish such stipulations, clauses, terms, and
conditions, as they deem convenient, so long as they are not
contrary to law, morals, good customs, public order, or
public policy. A compromise agreement is a contract
whereby the parties undertake reciprocal obligations to
resolve their differences in order to avoid litigation or put
an end to one already instituted.9 It is a judicial covenant
having the force
_______________
7 Id., at p. 631.
8 Article 1306.
9 Calingin v. Civil Service Commission, G.R. No. 183322, October 30,
2009, 604 SCRA 818, 824; Valdez v. Financiera Manila, Inc., G.R. No.
183387, September 29, 2009, 601 SCRA 291, 310-311; California
Manufacturing Company, Inc. v. City of Las Piñas, The, G.R. No. 178461,
June 22, 2009, 590 SCRA 453, 457.
484
484 SUPREME COURT REPORTS ANNOTATED
Coca-Cola Bottlers Philippines, Inc. vs. Mercado
and effect of a judgment, subject to execution in accordance
with the Rules of Court, and having the effect and
authority of res judicata upon its approval by the court
where the litigation is pending.10
Finding the Compromise Agreement dated June 16,
2010 between petitioner and respondents to be validly
executed, not being contrary to law, morals, good customs,
public order, or public policy, we, therefore, accept and
affirm the same.
WHEREFORE, the Manifestation and Motion of
respondents Rodrigo Mercado, et al. is GRANTED. The
Compromise Agreement dated June 16, 2010 between
petitioner Coca-Cola Bottlers Philippines, Inc. and
respondents Rodrigo Mercado, et al. is AFFIRMED, and
judgment is rendered accordingly. The instant controversy
is DISMISSED. No costs.
SO ORDERED.
Velasco, Jr.,****** Peralta, Mendoza and Sereno,*******
JJ., concur.
Manifestation and Motion granted, Compromise
Agreement affirmed.
Note.—A judicial compromise may be annulled or
modified on the ground of vitiated consent or forgery.
(Borja, Sr. vs. Sulyap, Inc., 399 SCRA 601 [2003])
——o0o——
_______________
10 California Manufacturing Company, Inc. v. City of Las Piñas, The,
id.; Viesca v. Gilinsky, G.R. No. 171698, July 4, 2007, 526 SCRA 533, 557-
558.
****** Additional member in lieu of Associate Justice Antonio T.
Carpio per Special Order No. 897 dated September 28, 2010.
******* Additional member in lieu of Associate Justice Roberto A.
Abad per Special Order No. 903 dated September 28, 2010.
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