FACTS: Donald Kwok, petitioner, with his father-in-law, Patricio Lim, established a

corporation named Philippine Carpet Manufacturing Corporation (PCMC), the

respondent, together with their stockholders which Mr. Lim became the president and
chairman of the BOD and Mr. Kwok the Executive VP and Chief Operations Officer.
When Mr. Kwok retired after 36 years of service, he demanded the cash equivalent of
his sick and absence leave during the entire duration of his service aside from his
monthly salary of Php 160,000 which totaled Php 7,080,546.00 with interest (dated from
November 16, 1965 October 31, 1996) which the respondent corporation refused to
concede because the petitioner was not entitled to such privileges which is the reason
why the petitioner filed a complaint against the petitioner. The petitioner claimed that Mr.
Lim gave him a verbal promise of unlimited sick and vacation leave benefits which can
be turned into cash upon retirement or resignation together with other additional
benefits such as golf and country club membership, to charge the corporations account,
6% P/L Sharing in net income of corporation (which according to the petitioner, all were
granted except the accumulated cash from sick and absence leave.)
The corporation denied all the petitioners allegations saying that petitioner upon
retirement already received an amount of 6,902,387.19 which equates to all the benefits
due to him. However, petitioner still wants to claim Php 7,080,546.00 without factual and
legal evidence. Furthermore, corporation added that the chairman of the BOD together
with its VPs had unlimited discretion of their time and was never required to file a sick or
vacation leave because the said officers are not privileged to sick leave benefits, no
such policy exists. Mr. Lim also denied making verbal agreements to his son-in-law (and
no one can attest to its factuality since no witnesses can validate.) In the corporation
memorandum, it was stated that only regular, confidential and managerial employees
are entitled to such sick leave benefit and petitioner does not fall under this category.
With all facts gathered, NLRC decided to order the respondent corporation to pay the
sum of Php 7,080,546.00 with 10% interest and attorneys fees in favor of the petitioner
which the respondent. The case was raised for reconsideration in the Court of Appeals
by respondents which was denied from appellate courts due to its resolutions.