MORALES, MARIVIC A.

Case No. 27

Labor Law II Block A

RAMON C. LOZON vs NATIONAL LABOR RELATIONS COMMISSION

and PHILIPPINE AIRLINES, INC
G.R. No. 107660 January 2, 1995
FACTS:

Petitioner Ramon C. Lozon, a certified public accountant, was a Senior Vice-President-Finance

of Private respondent Philippine Airlines, Inc. (PAL), when his services were terminated in the
aftermath of the much-publicized two-billion-peso PALscam.
Aggrieved, petitioner, filed with the National Labor Relations Commission (NLRC) in Manila
for illegal dismissal and for reinstatement, with backwages and fringe benefits such as Vacation
leave, Sick leave, 13th month pay, Christmas Bonus, Medical Expenses, car expenses, trip pass
entitlement, etc., plus moral damages of P40 Million, exemplary damages of P10 Million and
reasonable attorneys fees.
ISSUE:
Does the National Labor Relations Commission has jurisdiction over the illegal dismissal case in
a corporation.
HELD:
No. Labor Arbiters have no jurisdiction over termination of corporate officers and stockholders
which, under the law, is considered intra-corporate dispute. It must be emphasized that a
corporate officers dismissal is always a corporate act and/or intra-corporate controversy and that
nature is not altered by the reason or wisdom which the Board of Directors may have in taking
such action. The Regional Trial Courts now have jurisdiction under RA 8799(Securities
Regulation Act of 2000). Jurisdiction of RTC includes adjudication of monetary claims of the
corporate officer who was dismissed, such as unpaid salaries, leaves, 13th month pay, damages
and attorneys fee.