THIRD DIVISION REPUBLIC OF THE PHILIPPINES, represented by the SOCIAL SECURITY COMMISSION nd SOCIAL SECURITY SYSTEM, Petitioners, !

"R" N#" $%&$'$ Present: YNARES-SANTIAGO, J., n, AUSTRIA-MARTINEZ, AZCUNA, C ICO-NAZARIO, and REYES, JJ. Pro!"#$ated: Chairperso

- versus -

ASIAPRO COOPERATIVE, Respondent.

No%e!&er '(, '))* +- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -+

,ECISION

C ICO-NAZARIO, J.: -e.ore this Co"rt is a Petition .or Re%ie/ on Certiorari "nder R"#e 01 o. the 233* Re%ised R"#es o. Ci%i# Pro4ed"re see5in$ to ann"# and set aside the ,e4ision 67--8i.
s"pport9ootnotes:--;82:67--8endi.:--; 7

and Reso#"tion67--8i.

7s"pport9ootnotes:--;8':67--8endi.:--;

o. the Co"rt o. Appea#s in

CA-G.R. SP No. <*'(=, dated 1 >an"ar? '))= and ') Mar4h '))=, respe4ti%e#?, /hi4h ann"##ed and set aside the Orders o. the So4ia# Se4"rit? Co!!ission @SSCA in SSC Case No. =-211)*-)(, dated 2* 9e&r"ar? '))0 67--8i. 7s"pport9ootnotes:--;8(:67--8endi.:--; and 2= Septe!&er '))0,67--8i. 7
s"pport9ootnotes:--;80:67--8endi.:--;

respe4ti%e#?, there&? dis!issin$ the petition-4o!p#aint dated 2'

>"ne '))( .i#ed &? herein petitioner So4ia# Se4"rit? S?ste! @SSSA a$ainst herein respondent. erein petitioner Rep"&#i4 o. the Phi#ippines is represented &? the SSC, a B"asiC"di4ia# &od? a"thoriDed &? #a/ to reso#%e disp"tes arisin$ "nder Rep"&#i4 A4t No. 22=2, as a!ended &? Rep"&#i4 A4t No. <'<'. 67--8i.
7s"pport9ootnotes:--;81:67--8endi.:--;

Petitioner SSS is a

$o%ern!ent 4orporation 4reated &? %irt"e o. Rep"&#i4 A4t No. 22=2, as a!ended. On the other hand, herein respondent Asiapro Cooperati%e @AsiaproA is a !"#ti-p"rpose 4ooperati%e 4reated p"rs"ant to Rep"&#i4 A4t No. =3(< 67--8i. 7s"pport9ootnotes:--;8=:67--8endi.:--; and d"#?

re$istered /ith the Cooperati%e ,e%e#op!ent A"thorit? @C,AA on '( No%e!&er 2333 /ith Re$istration Certi.i4ate No. )-='(-'0=).67--8i. 7s"pport9ootnotes:--;8*:67--8endi.:--; The ante4edents o. this 4ase are as .o##o/s: Respondent Asiapro, as a 4ooperati%e, is 4o!posed o. o/ners-!e!&ers. Under its &?-#a/s, o/ners-!e!&ers are o. t/o 4ate$ories, to /it: @2A re$"#ar !e!&er, /ho is entit#ed to a## the ri$hts and pri%i#e$es o. !e!&ershipE and @'A asso4iate !e!&er, /ho has no ri$ht to %ote and &e %oted "pon and sha## &e entit#ed on#? to s"4h ri$hts and pri%i#e$es pro%ided in its &?-#a/s.67--8i.
7s"pport9ootnotes:--;8<:67--8endi.:--;

Its pri!ar? o&Ce4ti%es are to pro%ide

sa%in$s and 4redit .a4i#ities and to de%e#op other #i%e#ihood ser%i4es .or its o/ners!e!&ers. In the dis4har$e o. the a.oresaid pri!ar? o&Ce4ti%es, respondent 4ooperati%e entered into se%era# Ser%i4e Contra4ts 67--8i. 7s"pport9ootnotes:--;83:67--8endi.:--; /ith Stan.i#4o - a di%ision o. ,OFE Phi#ippines, In4. and a 4o!pan? &ased in -"5idnon. The o/ners-!e!&ers do not re4ei%e 4o!pensation or /a$es .ro! the respondent 4ooperati%e. Instead, the? re4ei%e a share in the ser%i4e s"rp#"s 67--8i.
7s"pport9ootnotes:--;82):67--8endi.:--;

/hi4h the respondent 4ooperati%e

earns .ro! di..erent areas o. trade it en$a$es in, s"4h as the in4o!e deri%ed .ro! the said Ser%i4e Contra4ts /ith Stan.i#4o. The o/ners-!e!&ers $et their in4o!e .ro! the ser%i4e s"rp#"s $enerated &? the B"a#it? and a!o"nt o. ser%i4es the? rendered, /hi4h is deter!ined &? the -oard o. ,ire4tors o. the respondent 4ooperati%e. In order to enCo? the &ene.its "nder the So4ia# Se4"rit? Fa/ o. 233*, the o/ners!e!&ers o. the respondent 4ooperati%e, /ho /ere assi$ned to Stan.i#4o reB"ested the ser%i4es o. the #atter to re$ister the! /ith petitioner SSS as se#.-e!p#o?ed and to re!it their 4ontri&"tions as s"4h. A#so, to 4o!p#? /ith Se4tion 23-A o. Rep"&#i4 A4t No. 22=2, as a!ended &? Rep"&#i4 A4t No. <'<', the SSS 4ontri&"tions o. the said o/ners-!e!&ers /ere eB"a# to the share o. &oth the e!p#o?er and the e!p#o?ee. On '= Septe!&er '))', ho/e%er, petitioner SSS thro"$h its Gi4e-President .or Mindanao ,i%ision, Att?. Eddie A. >ara, sent a #etter 67--8i.
7s"pport9ootnotes:--;822:67--8endi.:--;

to the

respondent 4ooperati%e, addressed to its Chie. E+e4"ti%e O..i4er @CEOA and Genera# Mana$er Feo G. Par!a, in.or!in$ the #atter that &ased on the Ser%i4e Contra4ts it e+e4"ted /ith Stan.i#4o, respondent 4ooperati%e is a4t"a##? a !anpo/er 4ontra4tor s"pp#?in$ e!p#o?ees to Stan.i#4o and .or that reason, it is an e!p#o?er o. its o/ners!e!&ers /or5in$ /ith Stan.i#4o. Th"s, respondent 4ooperati%e sho"#d re$ister itse#. /ith petitioner SSS as an e!p#o?er and !a5e the 4orrespondin$ report and re!ittan4e o.

pre!i"! 4ontri&"tions in a44ordan4e /ith the So4ia# Se4"rit? Fa/ o. 233*. On 3 O4to&er '))',67--8i. 7s"pport9ootnotes:--;82':67--8endi.:--; respondent 4ooperati%e, thro"$h its 4o"nse#, sent a rep#? to petitioner SSSHs #etter assertin$ that it is not an e!p#o?er &e4a"se its o/ners-!e!&ers are the 4ooperati%e itse#.E hen4e, it 4annot &e its o/n e!p#o?er. A$ain, on '2 O4to&er '))',67--8i.
7s"pport9ootnotes:--;82(:67--8endi.:--;

petitioner SSS sent a #etter to respondent 4ooperati%e

orderin$ the #atter to re$ister as an e!p#o?er and report its o/ners-!e!&ers as e!p#o?ees .or 4o!p"#sor? 4o%era$e /ith the petitioner SSS. Respondent 4ooperati%e 4ontin"o"s#? i$nored the de!and o. petitioner SSS. A44ordin$#?, petitioner SSS, on 2' >"ne '))(, .i#ed a Petition 67--8i. 7s"pport9ootnotes:--;820:67-8endi.:--;

&e.ore petitioner SSC a$ainst the respondent 4ooperati%e and Stan.i#4o pra?in$ that

the respondent 4ooperati%e or, in the a#ternati%e, Stan.i#4o &e dire4ted to re$ister as an e!p#o?er and to report respondent 4ooperati%eHs o/ners-!e!&ers as 4o%ered e!p#o?ees "nder the 4o!p"#sor? 4o%era$e o. SSS and to re!it the ne4essar? 4ontri&"tions in a44ordan4e /ith the So4ia# Se4"rit? Fa/ o. 233*. The sa!e /as do45eted as SSC Case No. =-211)*-)(. Respondent 4ooperati%e .i#ed its Ans/er /ith Motion to ,is!iss a##e$in$ that no e!p#o?er-e!p#o?ee re#ationship e+ists &et/een it and its o/ners-!e!&ers, th"s, petitioner SSC has no C"risdi4tion o%er the respondent 4ooperati%e. Stan.i#4o, on the other hand, .i#ed an Ans/er /ith Cross-4#ai! a$ainst the respondent 4ooperati%e. On 2* 9e&r"ar? '))0, petitioner SSC iss"ed an Order den?in$ the Motion to ,is!iss .i#ed &? the respondent 4ooperati%e. the SSC dated 2= Septe!&er '))0. Intendin$ to appea# the a&o%e Orders, respondent 4ooperati%e .i#ed a Motion .or E+tension o. Ti!e to 9i#e a Petition .or Re%ie/ &e.ore the Co"rt o. Appea#s. S"&seB"ent#?, respondent 4ooperati%e .i#ed a Mani.estation statin$ that it /as no #on$er .i#in$ a Petition .or Re%ie/. In its p#a4e, respondent 4ooperati%e .i#ed a Petition .or Certiorari &e.ore the Co"rt o. Appea#s, do45eted as CA-G.R. SP No. <*'(=, /ith the .o##o/in$ assi$n!ent o. errors: 67--8i. 7s"pportFists:--; I. 67--8endi.:--;The Orders dated 2* 9e&r"ar? '))0 and 2= Septe!&er '))0 o. 8herein petitioner: SSC /ere iss"ed /ith $ra%e a&"se o. dis4retion a!o"ntin$ to a @si4A #a45 or e+4ess o. C"risdi4tion in that: The respondent 4ooperati%e !o%ed .or the re4onsideration o. the said Order, &"t it /as #i5e/ise denied in another Order iss"ed &?

67--8i. 7s"pportFists:--;A. 67--8endi.:--;8Petitioner: SSC ar&itrari#? pro4eeded /ith the 4ase as i. it has C"risdi4tion o%er the petition a quo, 4onsiderin$ that it .ai#ed to .irst reso#%e the iss"e o. the e+isten4e o. an e!p#o?er-e!p#o?ee re#ationship &et/een 8respondent: 4ooperati%e and its o/ners-!e!&ers. 67--8i. 7s"pportFists:--;-. 67--8endi.:--;Ihi#e indeed, the 8petitioner: SSC has C"risdi4tion o%er a## disp"tes arisin$ "nder the SSS Fa/ /ith respe4t to 4o%era$e, &ene.its, 4ontri&"tions, and re#ated !atters, it is respe4t."##? s"&!itted that 8petitioner: SSC !a? on#? ass"!e C"risdi4tion in 4ases /here there is no disp"te as to the e+isten4e o. an e!p#o?ere!p#o?ee re#ationship. 67--8i. 7s"pportFists:--;C. 67--8endi.:--;Contrar? to the ho#din$ o. the 8petitioner: SSC, the #e$a# iss"e o. e!p#o?er-e!p#o?ee re#ationship raised in 8respondentHs: Motion to ,is!iss 4an &e pre#i!inari#? reso#%ed thro"$h s"!!ar? hearin$s prior to the hearin$ on the !erits. o/e%er, an? inB"ir? &e?ond a pre#i!inar? deter!ination, as /hat 8petitioner SSC: /ants to a44o!p#ish, /o"#d &e to en4roa4h on the C"risdi4tion o. the Nationa# Fa&or Re#ations Co!!ission 8NFRC:, /hi4h is the !ore 4o!petent &od? 4#othed /ith po/er to reso#%e iss"es re#atin$ to the e+isten4e o. an e!p#o?!ent re#ationship. 67--8i. 7s"pportFists:--; II. 67--8endi.:--;At an? rate, the 8petitioner: SSC h s n# ()r*sd*+t*#n t# t ,e +#-n*. n+e #/ the pet*t*#n a quo. 67--8i. 7s"pportFists:--;A. 67--8endi.:-;8Respondent: is not an e!p#o?er /ithin the 4onte!p#ation o. the Fa&or Fa/ &"t is a !"#ti-p"rpose 4ooperati%e 4reated p"rs"ant to Rep"&#i4 A4t No. =3(< and 4o!posed o. o/ners-!e!&ers, not e!p#o?ees. 67--8i. 7s"pportFists:--;-. 67--8endi.:--;The ri$hts and o&#i$ations o. the o/ners-!e!&ers o. 8respondent: 4ooperati%e are deri%ed .ro! their Me!&ership A$ree!ents, the Cooperati%es -?-Fa/s, and Rep"&#i4 A4t No. =3(<, and not .ro! an? 4ontra4t o. e!p#o?!ent or .ro! the Fa&or Fa/s. Moreo%er, said o/ners-!e!&ers enCo? ri$hts that are not 4onsistent /ith &ein$ !ere e!p#o?ees o. a 4o!pan?, s"4h as the ri$ht to parti4ipate and %ote in de4ision!a5in$ .or the 4ooperati%e. 67--8i. 7s"pportFists:--;C. 67--8endi.:--;As .o"nd &? the -"rea" o. Interna# Re%en"e 8-IR:, the o/ners!e!&ers o. 8respondent: 4ooperati%e are not paid an? 4o!pensation in4o!e.67--8i. 7s"pport9ootnotes:--;821:67--8endi.:--; @E!phasis s"pp#ied.A

On 1 >an"ar? '))=, the Co"rt o. Appea#s rendered a ,e4ision $rantin$ the petition .i#ed &? the respondent 4ooperati%e. The de4reta# portion o. the ,e4ision reads: 0HEREFORE, the petition is !RANTED. The assai#ed Orders dated 82* 9e&r"ar? '))0: and 82= Septe!&er '))0:, are ANNULLED and SET ASIDE and a ne/ one is entered DISMISSIN! the petition-4o!p#aint dated 82' >"ne '))(: o. 8herein petitioner: So4ia# Se4"rit? S?ste!.67--8i. 7s"pport9ootnotes:--;82=:67-8endi.:--;

A$$rie%ed &? the a.oresaid ,e4ision, petitioner SSS !o%ed .or a re4onsideration, &"t it /as denied &? the appe##ate 4o"rt in its Reso#"tion dated ') Mar4h '))=. en4e, this Petition. In its Me!orand"!, petitioners raise the iss"e o. 1hether #r n#t the C#)rt #/ Appe 2s erred *n n#t /*nd*n- th t the SSC h s ()r*sd*+t*#n #3er the s)b(e+t 4 tter nd *t h s 3 2*d b s*s *n deny*n- resp#ndent5s M#t*#n t# D*s4*ss . The said iss"e is s"pported &? the .o##o/in$ ar$"!ents: 67--8i. 7s"pportFists:--; I" 67--8endi.:--;The 6pet*t*#ner SSC7 h s ()r*sd*+t*#n #3er the pet*t*#n8+#4p2 *nt /*2ed be/#re *t by the 6pet*t*#ner SSS7 )nder R"A" N#" 9&9&" 67--8i. 7s"pportFists:--; II" 67--8endi.:--;Resp#ndent 6+##per t*3e7 *s est#pped /r#4 :)est*#n*n- the ()r*sd*+t*#n #/ pet*t*#ner SSC /ter *n3#,*n- *ts ()r*sd*+t*#n by /*2*n- n 6A7ns1er 1*th 6M7#t*#n t# 6D7*s4*ss be/#re *t"

67--8i. 7s"pportFists:--; III" 67--8endi.:--;The 6pet*t*#ner SSC7 d*d n#t +t 1*th -r 3e b)se #/ d*s+ret*#n *n deny*nresp#ndent 6+##per t*3e5s7 6M7#t*#n t# 6D7*s4*ss" 67--8i. 7s"pportFists:--; IV" 67--8endi.:--;The e;*sten+e #/ n e4p2#yer8e4p2#yee re2 t*#nsh*p *s :)est*#n #/ / +t 1here present t*#n #/ e3*den+e *s ne+ess ry" 67--8i. 7s"pportFists:--; V" 67--8endi.:--;There *s n e4p2#yer8e4p2#yee re2 t*#nsh*p bet1een 6resp#ndent +##per t*3e7 nd *ts 6#1ners84e4bers7" Petitioners 4#ai! that SSC has C"risdi4tion o%er the petition-4o!p#aint .i#ed &e.ore it &? petitioner SSS as it in%o#%ed an iss"e o. /hether or not a /or5er is entit#ed to 4o!p"#sor? 4o%era$e "nder the SSS Fa/. Petitioners a%o/ that Se4tion 1 o. Rep"&#i4 A4t No. 22=2, as a!ended &? Rep"&#i4 A4t No. <'<', e+press#? 4on.ers "pon petitioner SSC the

po/er to sett#e disp"tes on 4o!p"#sor? 4o%era$e, &ene.its, 4ontri&"tions and pena#ties thereon or an? other !atter re#ated thereto. Fi5e/ise, Se4tion 3 o. the sa!e #a/ 4#ear#? pro%ides that SSS 4o%era$e is 4o!p"#sor? "pon a## e!p#o?ees. Th"s, /hen petitioner SSS .i#ed a petition-4o!p#aint a$ainst the respondent 4ooperati%e and Stan.i#4o &e.ore the petitioner SSC .or the 4o!p"#sor? 4o%era$e o. respondent 4ooperati%eHs o/ners-!e!&ers as /e## as .or 4o##e4tion o. "npaid SSS 4ontri&"tions, it /as %er? o&%io"s that the s"&Ce4t !atter o. the a.oresaid petition-4o!p#aint /as /ithin the e+pertise and C"risdi4tion o. the SSC. Petitioners si!i#ar#? assert that granting arguendo that there is a prior need to deter!ine the e+isten4e o. an e!p#o?er-e!p#o?ee re#ationship &et/een the respondent 4ooperati%e and its o/ners-!e!&ers, said iss"e does not pre4#"de petitioner SSC .ro! ta5in$ 4o$niDan4e o. the a.oresaid petition-4o!p#aint. Considerin$ that the prin4ipa# re#ie. so"$ht in the said petition-4o!p#aint has to &e reso#%ed &? re.eren4e to the So4ia# Se4"rit? Fa/ and not to the Fa&or Code or other #a&or re#ations stat"tes, there.ore, C"risdi4tion o%er the sa!e so#e#? &e#on$s to petitioner SSC. Petitioners ."rther 4#ai! that the denia# o. the respondent 4ooperati%eHs Motion to ,is!iss $ro"nded on the a##e$ed #a45 o. e!p#o?er-e!p#o?ee re#ationship does not 4onstit"te $ra%e a&"se o. dis4retion on the part o. petitioner SSC &e4a"se the #atter has the a"thorit? and po/er to den? the sa!e. Moreo%er, the e+isten4e o. an e!p#o?ere!p#o?ee re#ationship is a B"estion o. .a4t /here presentation o. e%iden4e is ne4essar?. Petitioners a#so !aintain that the respondent 4ooperati%e is a#read? estopped .ro! assai#in$ the C"risdi4tion o. the petitioner SSC &e4a"se it has a#read? .i#ed its Ans/er &e.ore it, th"s, respondent 4ooperati%e has a#read? s"&!itted itse#. to the C"risdi4tion o. the petitioner SSC. 9ina##?, petitioners 4ontend that there is an e!p#o?er-e!p#o?ee re#ationship &et/een the respondent 4ooperati%e and its o/ners-!e!&ers. The respondent 4ooperati%e is the e!p#o?er o. its o/ners-!e!&ers 4onsiderin$ that it "ndertoo5 to pro%ide ser%i4es to Stan.i#4o, the per.or!an4e o. /hi4h is "nder the ."## and so#e 4ontro# o. the respondent 4ooperati%e. On the other hand, respondent 4ooperati%e a##e$es that its o/ners-!e!&ers o/n the 4ooperati%e, th"s, no e!p#o?er-e!p#o?ee re#ationship 4an arise &et/een the!. The persons o. the e!p#o?er and the e!p#o?ee are !er$ed in the o/ners-!e!&ers

the!se#%es. Fi5e/ise, respondent 4ooperati%eHs o/ners-!e!&ers e%en reB"ested the respondent 4ooperati%e to re$ister the! /ith the petitioner SSS as se#.-e!p#o?ed indi%id"a#s. en4e, petitioner SSC has no C"risdi4tion o%er the petition-4o!p#aint .i#ed &e.ore it &? petitioner SSS. Respondent 4ooperati%e ."rther a%ers that the Co"rt o. Appea#s 4orre4t#? r"#ed that petitioner SSC a4ted /ith $ra%e a&"se o. dis4retion /hen it ass"!ed C"risdi4tion o%er the petition-4o!p#aint /itho"t deter!inin$ .irst i. there /as an e!p#o?er-e!p#o?ee re#ationship &et/een the respondent 4ooperati%e and its o/ners-!e!&ers. Respondent 4ooperati%e 4#ai!s that the B"estion o. /hether an e!p#o?er-e!p#o?ee re#ationship e+ists &et/een it and its o/ners-!e!&ers is a #e$a# and not a .a4t"a# iss"e as the .a4ts are "ndisp"ted and need on#? to &e interpreted &? the app#i4a&#e #a/ and C"rispr"den4e. Fast#?, respondent 4ooperati%e asserts that it 4annot &e 4onsidered estopped .ro! assai#in$ the C"risdi4tion o. petitioner SSC si!p#? &e4a"se it .i#ed an Ans/er /ith Motion to ,is!iss, espe4ia##? /here the iss"e o. C"risdi4tion is raised at the %er? .irst instan4e and /here the on#? re#ie. &ein$ so"$ht is the dis!issa# o. the petition-4o!p#aint .or #a45 o. C"risdi4tion. 9ro! the .ore$oin$ ar$"!ents o. the parties, the iss"es !a? &e s"!!ariDed into: 67--8i. 7s"pportFists:--; I" 67--8endi.:--;0hether the pet*t*#ner SSC h s ()r*sd*+t*#n #3er the pet*t*#n8+#4p2 *nt /*2ed be/#re *t by pet*t*#ner SSS - *nst the resp#ndent +##per t*3e" 67--8i. 7s"pportFists:--; II" 67--8endi.:--;0hether the resp#ndent +##per t*3e *s est#pped /r#4 ss *2*n- the ()r*sd*+t*#n #/ pet*t*#ner SSC s*n+e *t h d 2re dy /*2ed n Ans1er 1*th M#t*#n t# D*s4*ss be/#re the s *d b#dy" Petitioner SSCHs C"risdi4tion is 4#ear#? stated in Se4tion 1 o. Rep"&#i4 A4t No. <'<' as /e## as in Se4tion 2, R"#e III o. the 233* SSS Re%ised R"#es o. Pro4ed"re. Se4tion 1 o. Rep"&#i4 A4t No. <'<' pro%ides: SEC. 1. Settlement of Disputes. J @aA An? disp"te arisin$ "nder this A4t 1*th respe+t t# +#3er -e, &ene.its, 4ontri&"tions and pena#ties thereon #r ny #ther 4 tter re2 ted theret#, sh 22 be +#-n*. b2e by the C#44*ss*#n, + + +. @E!phasis s"pp#ied.A

Si!i#ar#?, Se4tion 2, R"#e III o. the 233* SSS Re%ised R"#es o. Pro4ed"re states: Se4tion 2. Jurisdiction. J An? disp"te arisin$ "nder the So4ia# Se4"rit? A4t 1*th respe+t t# +#3er -e, entit#e!ent o. &ene.its, 4o##e4tion and sett#e!ent o. 4ontri&"tions and pena#ties thereon, #r ny #ther 4 tter re2 ted theret#, sh 22 be +#-n*. b2e by the C#44*ss*#n a.ter the SSS thro"$h its President, Mana$er or O..i4er-in-4har$e o. the ,epart!entK-ran4hKRepresentati%e O..i4e 4on4erned had .irst ta5en a4tion thereon in /ritin$. @E!phasis s"pp#ied.A It is 4#ear then .ro! the a.oresaid pro%isions that an? iss"e re$ardin$ the 4o!p"#sor? 4o%era$e o. the SSS is /e## /ithin the e+4#"si%e do!ain o. the petitioner SSC. It is i!portant to note, tho"$h, that the !andator? 4o%era$e "nder the SSS Fa/ is pre!ised on the e+isten4e o. an e!p#o?er-e!p#o?ee re#ationship 67--8i. 7s"pport9ootnotes:--;82*:67--8endi.:-;

e+4ept in 4ases o. 4o!p"#sor? 4o%era$e o. the se#.-e!p#o?ed. It *s ;*#4 t*+ th t the 22e- t*#ns *n the +#4p2 *nt, n#t the de/enses set )p *n

the Ans1er #r *n the M#t*#n t# D*s4*ss, deter4*ne 1h*+h +#)rt h s ()r*sd*+t*#n #3er n +t*#n< #ther1*se, the :)est*#n #/ ()r*sd*+t*#n 1#)2d depend 24#st ent*re2y )p#n the de/end nt.67--8i. 7s"pport9ootnotes:--;82<:67--8endi.:--; Moreo%er, it is /e##-sett#ed that on4e C"risdi4tion is a4B"ired &? the 4o"rt, it re!ains /ith it "nti# the ."## ter!ination o. the 4ase. 67--8i.
s"pport9ootnotes:--;823:67--8endi.:--; 7

The said prin4ip#e !a? &e app#ied e%en to B"asi-C"di4ia# &odies.

In this 4ase, the petition-4o!p#aint .i#ed &? the petitioner SSS &e.ore the petitioner SSC a$ainst the respondent 4ooperati%e and Stan.i#4o a##e$es that the o/ners-!e!&ers o. the respondent 4ooperati%e are s"&Ce4t to the 4o!p"#sor? 4o%era$e o. the SSS &e4a"se the? are e!p#o?ees o. the respondent 4ooperati%e. ConseB"ent#?, the respondent 4ooperati%e &ein$ the e!p#o?er o. its o/ners-!e!&ers !"st re$ister as e!p#o?er and report its o/ners-!e!&ers as 4o%ered !e!&ers o. the SSS and re!it the ne4essar? pre!i"! 4ontri&"tions in a44ordan4e /ith the So4ia# Se4"rit? Fa/ o. 233*. A44ordin$#?, &ased on the a.oresaid a##e$ations in the petition-4o!p#aint .i#ed &e.ore the petitioner SSC, the 4ase 4#ear#? .a##s /ithin its C"risdi4tion. A#tho"$h the Ans/er /ith Motion to ,is!iss .i#ed &? the respondent 4ooperati%e 4ha##en$ed the C"risdi4tion o. the petitioner SSC on the a##e$ed #a45 o. e!p#o?er-e!p#o?ee re#ationship &et/een itse#. and its o/ners!e!&ers, the sa!e is not eno"$h to depri%e the petitioner SSC o. its C"risdi4tion o%er the petition-4o!p#aint .i#ed &e.ore it. Th"s, the petitioner SSC 4annot &e .a"#ted .or initia##? ass"!in$ C"risdi4tion o%er the petition-4o!p#aint o. the petitioner SSS.

Nonethe#ess, sin4e the e+isten4e o. an e!p#o?er-e!p#o?ee re#ationship &et/een the respondent 4ooperati%e and its o/ners-!e!&ers /as p"t in iss"e and 4onsiderin$ that the 4o!p"#sor? 4o%era$e o. the SSS Fa/ is predi4ated on the e+isten4e o. s"4h re#ationship, it &ehoo%es the petitioner SSC to deter!ine i. there is rea##? an e!p#o?ere!p#o?ee re#ationship that e+ists &et/een the respondent 4ooperati%e and its o/ners!e!&ers. The B"estion on the e+isten4e o. an e!p#o?er-e!p#o?ee re#ationship is not /ithin the e+4#"si%e C"risdi4tion o. the Nationa# Fa&or Re#ations Co!!ission @NFRCA. Arti4#e '2* o. the Fa&or Code en"!eratin$ the C"risdi4tion o. the Fa&or Ar&iters and the NFRC pro%ides that: ART. '2*. JURISDICTION OF L !OR R!IT"RS ND T#" CO$$ISSION . - @aA + + +. ++++ =. E;+ept +2 *4s /#r E!p#o?ees Co!pensation, S#+* 2 Se+)r*ty, Medi4are and !aternit? &ene.its, a## other 4#ai!s, arisin$ .ro! e!p#o?er-e!p#o?ee re#ations, in4#"din$ those o. persons in do!esti4 or ho"seho#d ser%i4e, in%o#%in$ an a!o"nt e+4eedin$ .i%e tho"sand pesos @P1,))).))A re$ard#ess o. /hether a44o!panied /ith a 4#ai! .or reinstate!ent.67--8i. 7s"pport9ootnotes:--;8'):67--8endi.:--; A#tho"$h the a.oresaid pro%ision spea5s !ere#? o. 4#ai!s .or So4ia# Se4"rit?, it /o"#d ne4essari#? in4#"de iss"es on the 4o%era$e thereo., &e4a"se 4#ai!s are "ndenia&#? rooted in the 4o%era$e &? the s?ste!. en4e, the B"estion on the e+isten4e o. an e!p#o?er-e!p#o?ee re#ationship /#r the p)rp#se #/ deter4*n*n- the +#3er -e #/ the S#+* 2 Se+)r*ty Syste4 is e+p#i4it#? e+4#"ded .ro! the C"risdi4tion o. the NFRC and .a##s /ithin the C"risdi4tion o. the SSC /hi4h is pri!ari#? 4har$ed /ith the d"t? o. sett#in$ disp"tes arisin$ "nder the So4ia# Se4"rit? Fa/ o. 233*. On the &asis thereo., 4onsiderin$ that the petition-4o!p#aint o. the petitioner SSS in%o#%ed the iss"e o. 4o!p"#sor? 4o%era$e o. the o/ners-!e!&ers o. the respondent 4ooperati%e, this Co"rt a$rees /ith the petitioner SSC /hen it de4#ared in its Order dated 2* 9e&r"ar? '))0 that as an in4ident to the iss"e o. 4o!p"#sor? 4o%era$e, it !a? inB"ire into the presen4e or a&sen4e o. an e!p#o?er-e!p#o?ee re#ationship /itho"t need o. /aitin$ .or a prior prono"n4e!ent or s"&!ittin$ the iss"e to the NFRC .or prior deter!ination. Sin4e &oth the petitioner SSC and the NFRC are independent &odies and their C"risdi4tion are /e##-de.ined &? the separate stat"tes 4reatin$ the!, petitioner SSC

has the a"thorit? to inB"ire into the re#ationship e+istin$ &et/een the /or5er and the person or entit? to /ho! he renders ser%i4e to deter!ine i. the e!p#o?!ent, indeed, is one that is e+4epted &? the So4ia# Se4"rit? Fa/ o. 233* .ro! 4o!p"#sor? 4o%era$e. 67--8i. 7
s"pport9ootnotes:--;8'2:67--8endi.:--;

E%en &e.ore the petitioner SSC 4o"#d !a5e a deter!ination o. the e+isten4e o. an e!p#o?er-e!p#o?ee re#ationship, ho/e%er, the respondent 4ooperati%e a#read? e#e%ated the Order o. the petitioner SSC, den?in$ its Motion to ,is!iss, to the Co"rt o. Appea#s &? .i#in$ a Petition .or Certiorari. As a 4onseB"en4e thereo., the petitioner SSC &e4a!e a part? to the said Petition .or Certiorari p"rs"ant to Se4tion 1@&A67--8i. 7s"pport9ootnotes:--;8'':67--8endi.:--; o. Rep"&#i4 A4t No. <'<'. The appe##ate 4o"rt r"#ed in .a%or o. the respondent 4ooperati%e &? de4#arin$ that the petitioner SSC has no C"risdi4tion o%er the petition4o!p#aint .i#ed &e.ore it &e4a"se there /as no e!p#o?er-e!p#o?ee re#ationship &et/een the respondent 4ooperati%e and its o/ners-!e!&ers. Res"#tant#?, the petitioners SSS and SSC, representin$ the Rep"&#i4 o. the Phi#ippines, .i#ed a Petition .or Re%ie/ &e.ore this Co"rt. A#tho"$h as a r"#e, in the e+er4ise o. the S"pre!e Co"rtHs po/er o. re%ie/, the Co"rt is not a trier o. .a4ts and the .indin$s o. .a4t o. the Co"rt o. Appea#s are 4on4#"si%e and &indin$ on the Co"rt,67--8i. 7s"pport9ootnotes:--;8'(:67--8endi.:--; said r"#e is not /itho"t e+4eptions. There are se%era# re4o$niDed e+4eptions67--8i. 7s"pport9ootnotes:--;8'0:67--8endi.:--; in /hi4h .a4t"a# iss"es !a? &e reso#%ed &? this Co"rt. One o. these e+4eptions .inds app#i4ation in this present 4ase /hi4h is, /hen the .indin$s o. .a4t are 4on.#i4tin$. There are, indeed, 4on.#i4tin$ .indin$s espo"sed &? the petitioner SSC and the appe##ate 4o"rt re#ati%e to the e+isten4e o. e!p#o?er-e!p#o?ee re#ationship &et/een the respondent 4ooperati%e and its o/ners!e!&ers, /hi4h ne4essitates a depart"re .ro! the o.t-repeated r"#e that .a4t"a# iss"es !a? not &e the s"&Ce4t o. appea#s to this Co"rt. In deter!inin$ the e+isten4e o. an e!p#o?er-e!p#o?ee re#ationship, the .o##o/in$ e#e!ents are 4onsidered: @2A the se#e4tion and en$a$e!ent o. the /or5ersE @'A the pa?!ent o. /a$es &? /hate%er !eansE @(A the po/er o. dis!issa#E and @0A the po/er to 4ontro# the /or5erHs 4ond"4t, /ith the #atter ass"!in$ pri!a4? in the o%era## 4onsideration.67--8i. 7s"pport9ootnotes:--;8'1:67--8endi.:--; The 4#st *4p#rt nt e2e4ent *s the e4p2#yer5s +#ntr#2 #/ the e4p2#yee5s +#nd)+t, n#t #n2y s t# the res)2t #/ the 1#r, t# be d#ne, b)t 2s# s t# the 4e ns nd 4eth#ds t# ++#4p2*sh" 67--8i.
7s"pport9ootnotes:--;8'=:67--8endi.:--;

The

po/er o. 4ontro# re.ers to the e+isten4e o. the po/er and not ne4essari#? to the a4t"a#

e+er4ise thereo..

It is not essentia# .or the e!p#o?er to a4t"a##? s"per%ise the

per.or!an4e o. d"ties o. the e!p#o?eeE it is eno"$h that the e!p#o?er has the ri$ht to /ie#d that po/er.67--8i. 7s"pport9ootnotes:--;8'*:67--8endi.:--; A## the a.oresaid e#e!ents are present in this 4ase. First. It is e+press#? pro%ided in the Ser%i4e Contra4ts that it is the respondent 4ooperati%e /hi4h has the e;+2)s*3e d*s+ret*#n *n the se2e+t*#n nd en- -e4ent #/ the #1ners84e4bers s 1e22 s *ts te 4 2e ders 1h# 1*22 be 0 -es re de/*ned ss*-ned t St n/*2+# .67--8i.
7 s"pport9ootnotes:--;8'<:67--8endi.:--;

Second.

s =re4)ner t*#n #r e rn*n-s,

h#1e3er des*-n ted, 4apa&#e o. &ein$ e+pressed in ter!s o. !one?, /hether .i+ed or as4ertained, on a ti!e, tas5, pie4e or 4o!!ission &asis, or other !ethod o. 4a#4"#atin$ the sa!e, /hi4h is p y b2e by n e4p2#yer t# n e4p2#yee )nder 1r*tten #r )n1r*tten +#ntr +t #/ e4p2#y4ent /#r 1#r, d#ne #r t# be d#ne, #r /#r ser3*+e rendered #r t# be rendered.L67--8i.
7s"pport9ootnotes:--;8'3:67--8endi.:--;

In this 4ase, the 1ee,2y

stipends or the so-4a##ed shares in the ser%i4e s"rp#"s $i%en &? the respondent 4ooperati%e to its o/ners-!e!&ers /ere in rea#it? /a$es, as the sa!e /ere eB"i%a#ent to an a!o"nt not #o/er than that pres4ri&ed &? e+istin$ #a&or #a/s, r"#es and re$"#ations, in4#"din$ the /a$e order app#i4a&#e to the area and ind"str?E or the sa!e sha## not &e #o/er than the pre%ai#in$ rates o. /a$es.67--8i. 7s"pport9ootnotes:--;8():67--8endi.:--; It 4annot &e do"&ted then that those stipends or shares in the ser%i4e s"rp#"s are indeed /a$es, &e4a"se these are $i%en to the o/ners-!e!&ers as 4o!pensation in renderin$ ser%i4es to respondent 4ooperati%eHs 4#ient, Stan.i#4o. T%ird. It is a#so stated in the a&o%e-!entioned Ser%i4e Contra4ts that it is the respondent 4ooperati%e /hi4h has the p#1er t# *n3est*- te, d*s+*p2*ne nd re4#3e the #1ners84e4bers nd *ts te 4 2e ders /ho /ere renderin$ ser%i4es at Stan.i#4o. 67--8i. 7
s"pport9ootnotes:--;8(2:67--8endi.:--;

Fourt%. As ear#ier opined, o. the .o"r e#e!ents o. the e!p#o?er-

e!p#o?ee re#ationship, the M4ontro# testL is the !ost i!portant. In the 4ase at &ar, it is the resp#ndent +##per t*3e 1h*+h h s the s#2e +#ntr#2 #3er the 4 nner nd 4e ns #/ per/#r4*n- the ser3*+es )nder the Ser3*+e C#ntr +ts 1*th St n/*2+# s 1e22 s the 4e ns nd 4eth#ds #/ 1#r,.67--8i. 7s"pport9ootnotes:--;8(':67--8endi.:--; A#so, the respondent 4ooperati%e is so#e#? and entire#? responsi&#e .or its o/ners-!e!&ers, tea! #eaders and other representati%es at Stan.i#4o. 67--8i. and its o/ners-!e!&ers. It is tr"e that the Ser%i4e Contra4ts e+e4"ted &et/een the respondent 4ooperati%e and Stan.i#4o e+press#? pro%ide that there sha## &e no e!p#o?er-e!p#o?ee re#ationship
7s"pport9ootnotes:--;8((:67--8endi.:--;

A## these 4#ear#? pro%e that,

indeed, there is an e!p#o?er-e!p#o?ee re#ationship &et/een the respondent 4ooperati%e

&et/een the respondent 4ooperati%e and its o/ners-!e!&ers. 67--8i.

7s"pport9ootnotes:--;8(0:67--8endi.:--;

This Co"rt, ho/e%er, 4annot $i%e the said pro%ision .or4e and e..e4t. As pre%io"s#? pointed o"t &? this Co"rt, an e!p#o?ee-e!p#o?er re#ationship a4t"a##? e+ists &et/een the respondent 4ooperati%e and its o/ners-!e!&ers. The .o"r e#e!ents in the .o"r-.o#d test .or the e+isten4e o. an e!p#o?!ent re#ationship ha%e &een 4o!p#ied /ith. The respondent 4ooperati%e !"st not &e a##o/ed to den? its e!p#o?!ent re#ationship /ith its o/ners-!e!&ers &? in%o5in$ the B"estiona&#e Ser%i4e Contra4ts pro%ision, /hen in a4t"a#it?, it does e+ist. The e;*sten+e #/ re2 t*#nsh*p + nn#t be ne- ted by e;press2y rep)d* t*n- *t *n ter4s n e4p2#yer8e4p2#yee +#ntr +t, 1hen the

nd s)rr#)nd*n- +*r+)4st n+es sh#1 #ther1*se" The e4p2#y4ent st t)s #/

pers#n *s de/*ned nd pres+r*bed by 2 1 nd n#t by 1h t the p rt*es s y *t sh#)2d be .67-8i. 7s"pport9ootnotes:--;8(1:67--8endi.:--;

It is sett#ed that the 4ontra4tin$ parties !a? esta&#ish s"4h stip"#ations, 4#a"ses, ter!s and 4onditions as the? /ant, and their a$ree!ent /o"#d ha%e the .or4e o. #a/ &et/een the!. o/e%er, the -reed ter4s nd +#nd*t*#ns 4)st n#t be +#ntr ry t# 2 1,
7s"pport9ootnotes:--;8(=:67--8endi.:--;

4#r 2s, +)st#4s, p)b2*+ p#2*+y #r p)b2*+ #rder .67--8i.

The Ser%i4e

Contra4t pro%ision in B"estion !"st &e str"45 do/n .or &ein$ 4ontrar? to #a/ and p"&#i4 po#i4? sin4e it is apparent#? &ein$ "sed &? the respondent 4ooperati%e !ere#? to 4ir4"!%ent the 4o!p"#sor? 4o%era$e o. its e!p#o?ees, /ho are a#so its o/ners-!e!&ers, &? the So4ia# Se4"rit? Fa/. This Co"rt is not "n!ind."# o. the prono"n4e!ent it !ade in Cooperative Rural !an& of Davao Cit'( Inc) v) Ferrer*Calle+a 67--8i. 7s"pport9ootnotes:--;8(*:67--8endi.:--; /herein it he#d that: A 4ooperati%e, there.ore, is &? its nat"re di..erent .ro! an ordinar? &"siness 4on4ern, &ein$ r"n either &? persons, partnerships, or 4orporations. Its o/ners andKor !e!&ers are the ones /ho r"n and operate the &"siness /hi#e the others are its e!p#o?ees + + +. An e4p2#yee there/#re #/ s)+h +##per t*3e 1h# *s 4e4ber nd +#8#1ner there#/ + nn#t *n3#,e the r*-ht t# +#22e+t*3e b r- *n*n- /#r +ert *n2y n #1ner + nn#t b r- *n 1*th h*4se2/ #r h*s +#8#1ners . In the opinion o. A"$"st 20, 23<2 o. the So#i4itor Genera# he 4orre4t#? opined that e!p#o?ees o. 4ooperati%es /ho are the!se#%es !e!&ers o. the 4ooperati%e ha%e no ri$ht to .or! or Coin #a&or or$aniDations .or p"rposes o. 4o##e4ti%e &ar$ainin$ .or &ein$ the!se#%es 4o-o/ners o. the 4ooperati%e. o/e%er, in so .ar as it in%o#%es 4ooperati%es /ith e!p#o?ees /ho are not !e!&ers or 4o-o/ners thereo., 4ertain#? s"4h e!p#o?ees are

entit#ed to e+er4ise the ri$hts o. a## /or5ers to or$aniDation, 4o##e4ti%e &ar$ainin$, ne$otiations and others as are enshrined in the Constit"tion and e+istin$ #a/s o. the 4o"ntr?. The sit"ation in the a.oresaid 4ase is %er? !"4h di..erent .ro! the present 4ase. The de4#aration !ade &? the Co"rt in the a.oresaid 4ase /as !ade in the 4onte+t o. /hether an e!p#o?ee /ho is a#so an o/ner-!e!&er o. a 4ooperati%e 4an e+er4ise the ri$ht to &ar$ain 4o##e4ti%e#? /ith the e!p#o?er /ho is the 4ooperati%e /herein he is an o/ner-!e!&er. O&%io"s#?, an o/ner-!e!&er 4annot &ar$ain 4o##e4ti%e#? /ith the 4ooperati%e o. /hi4h he is a#so the o/ner &e4a"se an o/ner 4annot &ar$ain /ith hi!se#.. In the instant 4ase, there is no iss"e re$ardin$ an o/ner-!e!&erHs ri$ht to &ar$ain 4o##e4ti%e#? /ith the 4ooperati%e. The B"estion in%o#%ed here is /hether an e!p#o?ere!p#o?ee re#ationship 4an e+ist &et/een the 4ooperati%e and an o/ner-!e!&er. In .a4t, a 4#oser #oo5 at Cooperative Rural !an& of Davao Cit'( Inc) /i## sho/ that it a4t"a##? re4o$niDed that an o/ner-!e!&er o. a 4ooperati%e 4an &e its o/n e!p#o?ee. It &ears stressin$, too, that a 4ooperati%e a4B"ires C"ridi4a# persona#it? "pon its re$istration /ith the Cooperati%e ,e%e#op!ent A"thorit?. 67--8i. 7s"pport9ootnotes:--;8(<:67--8endi.:--; It has its -oard o. ,ire4tors, /hi4h dire4ts and s"per%ises its &"sinessE !eanin$, its -oard o. ,ire4tors is the one in 4har$e in the 4ond"4t and !ana$e!ent o. its a..airs. 67--8i.
s"pport9ootnotes:--;8(3:67--8endi.:--; 7

Iith that, a 4ooperati%e 4an &e #i5ened to a 4orporation /ith a

persona#it? separate and distin4t .ro! its o/ners-!e!&ers. ConseB"ent#?, an o/ner!e!&er o. a 4ooperati%e 4an &e an e!p#o?ee o. the #atter and an e!p#o?er-e!p#o?ee re#ationship 4an e+ist &et/een the!. In the present 4ase, it is not disp"ted that the respondent 4ooperati%e had re$istered itse#. /ith the Cooperati%e ,e%e#op!ent A"thorit?, as e%iden4ed &? its Certi.i4ate o. Re$istration No. )-='(-'0=). 67--8i.
s"pport9ootnotes:--;802:67--8endi.:--; 7s"pport9ootnotes:--;80):67--8endi.:--;

In its &?-#a/s,67--8i.

its -oard o. ,ire4tors dire4ts, 4ontro#s, and s"per%ises the &"siness

and !ana$es the propert? o. the respondent 4ooperati%e. C#ear#? then, the !ana$e!ent o. the a..airs o. the respondent 4ooperati%e is %ested in its -oard o. ,ire4tors and not in its o/ners-!e!&ers as a /ho#e. There.ore, it is 4o!p#ete#? #o$i4a# that the respondent 4ooperati%e, as a C"ridi4a# person represented &? its -oard o. ,ire4tors, 4an enter into an e!p#o?!ent /ith its o/ners-!e!&ers. In s"!, ha%in$ de4#ared that there is an e!p#o?er-e!p#o?ee re#ationship &et/een the respondent 4ooperati%e and its o/ners-!e!&er, /e 4on4#"de that the petitioner SSC

has C"risdi4tion o%er the petition-4o!p#aint .i#ed &e.ore it &? the petitioner SSS. This &ein$ o"r 4on4#"sion, it is no #on$er ne4essar? to dis4"ss the iss"e o. /hether the respondent 4ooperati%e /as estopped .ro! assai#in$ the C"risdi4tion o. the petitioner SSC /hen it .i#ed its Ans/er /ith Motion to ,is!iss. 0HEREFORE, pre!ises 4onsidered, the instant Petition is here&? !RANTED. The ,e4ision and the Reso#"tion o. the Co"rt o. Appea#s in CA-G.R. SP No. <*'(=, dated 1 >an"ar? '))= and ') Mar4h '))=, respe4ti%e#?, are here&? REVERSED nd SET ASIDE. The Orders o. the petitioner SSC dated 2* 9e&r"ar? '))0 and 2= Septe!&er '))0 are here&? REINSTATED. The petitioner SSC is here&? DIRECTED to 4ontin"e hearin$ the petition4o!p#aint .i#ed &e.ore it &? the petitioner SSS as re$ards the 4o!p"#sor? 4o%era$e o. the respondent 4ooperati%e and its o/ners-!e!&ers. No 4osts.

SO ORDERED.

MINITA V" CHICO8NA>ARIO Asso4iate >"sti4e

IE CONCUR:

CONSUELO YNARES8SANTIA!O Asso4iate >"sti4e Chairperson

MA" ALICIA AUSTRIA8MARTINE> S" A>CUNA Asso4iate >"sti4e Asso4iate >"sti4e

ADOLFO

RUBEN T" REYES Asso4iate >"sti4e

ATTESTATION

I attest that the 4on4#"sions in the a&o%e ,e4ision /ere rea4hed in 4ons"#tation &e.ore the 4ase /as assi$ned to the /riter o. the opinion o. the Co"rtHs ,i%ision.

CONSUELO YNARES8SANTIA!O Asso4iate >"sti4e Chairperson, Third ,i%ision CERTIFICATION P"rs"ant to Se4tion 2(, Arti4#e GIII o. the Constit"tion, and the ,i%ision ChairpersonHs Attestation, it is here&? 4erti.ied that the 4on4#"sions in the a&o%e ,e4ision /ere rea4hed in 4ons"#tation &e.ore the 4ase /as assi$ned to the /riter o. the opinion o. the Co"rtHs ,i%ision.

REYNATO S" PUNO Chie. >"sti4e

67--8i. 7s"pport9ootnotes:--; 67--8endi.:--; Penned &? Asso4iate >"sti4e >"an N. EnriB"eD, >r. /ith Asso4iate >"sti4es Godardo A. >a4into and Gi4ente N. Ro+as, 4on4"rrin$E rollo, pp. =(-*0. 67--8i. 7s"pport9ootnotes:--;8':67--8endi.:--; Id. at =2-='. 67--8i. 7s"pport9ootnotes:--;8(:67--8endi.:--; Penned &? Co!!issioner Ser$io R. OrtiD-F"is, >r.E id. at 22=-223. 67--8i. 7s"pport9ootnotes:--;80:67--8endi.:--; Id. at 20=-203. 67--8i. 7s"pport9ootnotes:--;81:67--8endi.:--; Other/ise 5no/n as MSo4ia# Se4"rit? A4t o. 233*,L /hi4h /as appro%ed on 2 Ma? 233*. 67--8i. 7s"pport9ootnotes:--;8=:67--8endi.:--; Other/ise 5no/n as MCooperati%e Code o. the Phi#ippines,L /hi4h /as ena4ted on 2) Mar4h 233). 67--8i. 7s"pport9ootnotes:--;8*:67--8endi.:--; CA rollo, p. =(. 67--8i. 7s"pport9ootnotes:--;8<:67--8endi.:--; Se4tion ', Asiapro Cooperati%e A!ended -?-Fa/s, CA rollo, p. =<. 67--8i. 7s"pport9ootnotes:--;83:67--8endi.:--; Id. at 2'=-2(), 000-003. 67--8i. 7s"pport9ootnotes:--;82):67--8endi.:--; It represents the a!o"nt $i%en to respondent 4ooperati%eHs o/ners-!e!&ers .or renderin$ ser%i4es to the 4#ient o. respondent 4ooperati%e, #i5e Stan.i#4o. S"4h a!o"nt sha## not &e #o/er than the pre%ai#in$ rates o. /a$es. 67--8i. 7s"pport9ootnotes:--;822:67--8endi.:--; Rollo, pp. *1-*=. 67--8i. 7s"pport9ootnotes:--;82':67--8endi.:--; Id. at <'-<=. 67--8i. 7s"pport9ootnotes:--;82(:67--8endi.:--; Id. at <*-<<. 67--8i. 7s"pport9ootnotes:--;820:67--8endi.:--; Id. at <3-3*. 67--8i. 7s"pport9ootnotes:--;821:67--8endi.:--; Rollo, pp. ==-=<. 67--8i. 7s"pport9ootnotes:--;82=:67--8endi.:--; Id. at *0. 67--8i. 7s"pport9ootnotes:--;82*:67--8endi.:--; Social Securit' S'stem v) Court of ppeals , 0)2 Phi#. 2(', 202 @')))A.
67--8i. 7s"pport9ootnotes:--;82:67--8endi.:--;

,acus Securities Corporation v) mpil , G.R. No. 2=))2=, '* 9e&r"ar? '))=, 0<( SCRA (21, ((3. 67--8i. 7s"pport9ootnotes:--;823:67--8endi.:--; -%ilroc&( Inc) v) Construction Industr' r,itration Commission( 02' Phi#. '(=, '0= @'))2A. 67--8i. 7s"pport9ootnotes:--;8'):67--8endi.:--; Arti4#e '2*@aA@=A o. the Fa&or Code o. the Phi#ippines. 67--8i. 7s"pport9ootnotes:--;8'2:67--8endi.:--; Rollo, p. 22*. 67--8i. 7s"pport9ootnotes:--;8'':67--8endi.:--; SEC. 1. Settlement of Disputes. J @aA + + +. @&A + + +. The Co!!ission sha## &e dee!ed to &e a part? to an? C"di4ia# a4tion in%o#%in$ an? s"4h de4ision, and !a? &e represented &? an attorne? e!p#o?ed &? the Co!!ission, &? the So#i4itor Genera# or an? p"&#i4 prose4"tor. 67--8i. 7s"pport9ootnotes:--;8'(:67--8endi.:--; lmendrala v) Ngo, G.R. No. 20'0)<, () Septe!&er '))1, 0*2 SCRA (22, (''. 67--8i. 7s"pport9ootnotes:--;8'0:67--8endi.:--; Re4o$niDed e+4eptions to this r"#e are: @2A /hen the .indin$s are $ro"nded entire#? on spe4"#ation, s"r!ises or 4onCe4t"resE @'A /hen the in.eren4e !ade is !ani.est#? !ista5en, a&s"rd or i!possi&#eE @(A /hen there is $ra%e a&"se o. dis4retionE @0A /hen the C"d$!ent is &ased on !isapprehension o. .a4tsE @1A /hen the .indin$s o. .a4t are 4on.#i4tin$E @=A /hen in !a5in$ its .indin$s the Co"rt o. Appea#s /ent &e?ond the iss"es o. the 4ase, or its .indin$s are 4ontrar? to the ad!issions o. &oth the appe##ee and the appe##antE @*A /hen the .indin$s are 4ontrar? to the tria# 4o"rtE @<A /hen the .indin$s are 4on4#"sions /itho"t 4itation o. spe4i.i4 e%iden4e on /hi4h the? are &asedE @3A /hen the .a4ts set .orth in the petition as /e## as in the petitionerHs !ain and rep#? &rie.s are not disp"ted &? the respondentE @2)A /hen the .indin$s o. .a4t are pre!ised on the s"pposed a&sen4e o. e%iden4e and 4ontradi4ted &? the e%iden4e on re4ordE or @22A /hen the Co"rt o. Appea#s !ani.est#? o%er#oo5ed 4ertain re#e%ant .a4ts not disp"ted &? the parties, /hi4h, i. proper#? 4onsidered, /o"#d C"sti.? a di..erent 4on4#"sion @Lang&aan Realt' Development( Inc) v) United Coconut -lanters !an& , 0)) Phi#. 2(03, 2(1= @')))AE No&om v) National La,or Relations Commissions , (3) Phi#. 2''<, 2'0( @')))AE Commissioner of Internal Revenue v) "m,roider' and .arments Industries /-%ils)0( Inc), (=0 Phi#. 102, 10=-10* @2333AE Sta) $aria v) Court of ppeals, (03 Phi#. '*1, '<'-'<( @233<AE lmendrala v) Ngo, G.R. No. 20'0)<, () Septe!&er '))1, 0*2 SCRA (22, (''.A 67--8i. 7s"pport9ootnotes:--;8'1:67--8endi.:--; Jo v) National La,or Relations Commission, (<2 Phi#. 0'<, 0(1 @')))A. 67--8i. 7s"pport9ootnotes:--;8'=:67--8endi.:--; C%ave1 v) National La,or Relations Commission , G.R. No. 20=1(), 2* >an"ar? '))1, 00< SCRA 0*<, 03). 67--8i. 7s"pport9ootnotes:--;8'*:67--8endi.:--; Jo v) National La,or Relations Commission , s"pra note '1. 67--8i. 7s"pport9ootnotes:--;8'<:67--8endi.:--; *. SELECTION, EN!A!EMENT, DISCHAR!E. The Cooperati%e sha## ha%e the e+4#"si%e dis4retion in the a44eptan4e, en$a$e!ent, in%esti$ation and dis4ip#ine and re!o%a# o. its o/ner-!e!&ers and tea! #eaders. @Ser%i4e Contra4t, CA rollo, p. 01<A. 67--8i. 7s"pport9ootnotes:--;8'3:67--8endi.:--; ART. 3*@.A o. the Fa&or Code. 67--8i. 7s"pport9ootnotes:--;8():67--8endi.:--; 0. COOPERATIVE5S RESPONSIBILITIES. The Cooperati%e sha## ha%e the .o##o/in$ responsi&i#ities: + + + +. 0.(. The Cooperati%e sha## pa? the share o. the ser%i4e s"rp#"s d"e to its o/ner-!e!&ers assi$ned to the C#ient + + +. o/e%er, the a!o"nt o. the share o. the ser%i4e s"rp#"s o. the o/ner-!e!&ers + + + sha## &e in an a!o"nt not #o/er than e+istin$ #a&or #a/s, r"#es and re$"#ations, in4#"din$ the /a$e order app#i4a&#e to the area and ind"str?. + + +. @CA rollo( pp. 01*-01<A. 67--8i. 7s"pport9ootnotes:--;8(2:67--8endi.:--; Id. 67--8i. 7s"pport9ootnotes:--;8(':67--8endi.:--; 2. SCOPE OF SERVICE. + + +.
67--8i. 7s"pport9ootnotes:--;82<:67--8endi.:--;

+ + +. The Cooperati%e sha## ha%e so#e 4ontro# o%er the !anner and !eans o. per.or!in$ the s"&Ce4t ser%i4es "nder this Contra4t and sha## 4o!p#ete the ser%i4es in a44ordan4e /ith its o/n !eans and !ethods o. /or5, in 5eepin$ /ith the C#ientHs standards. @Id. at 01=A. 67--8i. 7s"pport9ootnotes:--;8((:67--8endi.:--; (. RELATIONSHIP OF THE PARTIES. + + +. The Cooperati%e sha## &e so#e#? and entire#? responsi&#e .or its o/ner-!e!&ers, tea! #eaders and other representati%es. @Id. at 01*A. 67--8i. 7s"pport9ootnotes:--;8(0:67--8endi.:--; (. RELATIONSHIP OF THE PARTIES. It is here&? a$reed that there sha## &e no e!p#o?er-e!p#o?ee re#ationship &et/een the Cooperati%e and its o/ners-!e!&ers + + +. @IdA. 67--8i. 7s"pport9ootnotes:--;8(1:67--8endi.:--; C%ave1 v) National La,or Relations Commission , s"pra note '= at 03(E Lope1 v) $etropolitan 2ater3or&s and Se3erage S'stem , G.R. No. 2100*', () >"ne '))1, 0=' SCRA 0'<, 001-00=. 67--8i. 7s"pport9ootnotes:--;8(=:67--8endi.:--; Art. 2()=, Ci%i# Code o. the Phi#ippinesE -%ilippine National !an& v) Ca,ansag, G.R. No. 21*)2), '2 >"ne '))1, 0=) SCRA 120, 1((. 67--8i. 7s"pport9ootnotes:--;8(*:67--8endi.:--; G.R. No. F-**312, '= Septe!&er 23<<, 2=1 SCRA *'1, *('-*((. 67--8i. 7s"pport9ootnotes:--;8(<:67--8endi.:--; ART. 2=. Registration. - A 4ooperati%e .or!ed or or$aniDed "nder this Code a4B"ires C"ridi4a# persona#it? .ro! the date the Cooperati%e ,e%e#op!ent A"thorit? iss"es a 4erti.i4ate o. re$istration "nder its o..i4ia# sea#. + + +. @Rep"&#i4 A4t No. =3(<A. 67--8i. 7s"pport9ootnotes:--;8(3:67--8endi.:--; ART. (<. Composition of t%e !oard of Directors. - The 4ond"4t and !ana$e!ent o. the a..airs o. a 4ooperati%e sha## &e %ested in a &oard o. dire4tors + + +. ART. (3. -o3ers of t%e !oard of Directors . - The &oard o. dire4tors sha## dire4t and s"per%ise the &"siness, !ana$e the propert? o. the 4ooperati%e and !a?, &? reso#"tion, e+er4ise a## s"4h po/ers o. the 4ooperati%e as are not reser%ed .or the $enera# asse!&#? "nder this Code and the &?-#a/s. @Id.A. 67--8i. 7s"pport9ootnotes:--;80):67--8endi.:--; CA rollo( p. =(. 67--8i. 7s"pport9ootnotes:--;802:67--8endi.:--; Id. at =<-*<.