Sevilla v. CA, G.R. No.

44182-3, 15 April 1988

Facts:

Tourist World Inc., opened a branch office, the same was run by the herein appellant Lina
Sevilla. On or about November 24, 1961 the Tourist World Service, Inc. appears to have been
informed that Lina Sevilla was connected with a rival firm and since the branch office was
anyhow losing, the Tourist World Service considered closing down its office. This was firmed up
by two resolutions of the board of directors of Tourist World Service, the first abolishing the
office of the manager and vice-president of the Tourist World Service, Inc., Ermita Branch, and
the second, authorizing the corporate secretary to receive the properties of the Tourist World
Service then located at the said branch office.

To comply with the mandate of the Tourist World Service, the corporate secretary Gabino
Canilao went over to the branch office, and, finding the premises locked and being unable to
contact Lina Sevilla, he padlocked the premises on June 4, 1962 to protect the interests of the
Tourist World Service. When neither the appellant Lina Sevilla nor any of her employees could
enter the locked premises, a complaint wall filed by the herein appellants against the appellees
with a prayer for the issuance of mandatory preliminary injunction. Both appellees answered
with counterclaims.

ISSUE:

Whether or not there was an employer-employee relationship between Lina Sevilla and Tourist
World, Inc.

HELD:

There was no employer-employee relationship between Lina Sevilla and Tourist World Inc. It is
the Court's considered opinion, that when the petitioner, Lina Sevilla, agreed to man the
private respondent, Tourist World Service, Inc.'s Ermita office, she must have done so pursuant
to a contract of agency. We are convinced, considering the circumstances and from the
respondent Court's recital of facts, that the ties had contemplated a principal agent
relationship, rather than a joint managament or a partnership.

But unlike simple grants of a power of attorney, the agency that we hereby declare to be
compatible with the intent of the parties, cannot be revoked at will. The reason is that it is one
coupled with an interest, the agency having been created for mutual interest, of the agent and
the principal. It is an agency that, as we said, cannot be revoked at the pleasure of the principal.
Accordingly, the revocation complained of should entitle the petitioner, Lina Sevilla, to
damages.