LEGEND INTERNATIONAL RESORTS vs. KILUSANG MANGGAGAWA NG LEGENDA G.R. No. 169754

TOPIC: Labor Organization; Government Regulation; Effect of Registration

FACTS:

1.     KML filed with Med Arbitration Unit of DOLE a Petition for Certification Election. KML alleged that it is a legitimate labor organization. Legend moved to dismiss the petition alleging that KML is not a legitimate labor organization because its membership is a mixture of rank-and-file and supervisory employees in violation of Art. 245 of the Labor Code.

2.     Med-Arbiter ruled in favor of Petitioner, KML appealed to Sec. of DOLE, Sec. ruled that that KMLs legitimacy as a union could not be collaterally attacked, citing Section 5, Rule V of Department Order No. 9, series of 1997. In a Resolution dated August 20, 2002, the Office of the Secretary of DOLE denied LEGENDs motion for reconsideration. It opined that Section 11, paragraph II (a), Rule XI of Department Order No. 9 requires a final order of cancellation before a petition for certification election may be dismissed on the ground of lack of legal personality.

3.      

ISSUE: Whether or not the legal personality of KML can be collaterally attacked.

RULING: No, it cannot be collaterally attacked

Based on the foregoing jurisprudence, it is clear that a certification election may be conducted during the pendency of the cancellation proceedings. This is because at the time the petition for certification was filed, the petitioning union is presumed to possess the legal personality to file the same. There is therefore no basis for LEGENDs assertion that the cancellation of KMLs certificate of registration should retroact to the time of its issuance or that it effectively nullified all of KMLs activities, including its filing of the petition for certification election and its demand to collectively bargain.

In Laguna Autoparts Manufacturing Corporation v. Office of the Secretary, Department of Labor and Employment, the Court ruled that such legal personality may not be subject to a collateral attack but only through a separate action instituted particularly for the purpose of assailing it.

[T]he legal personality of a legitimate labor organization x x x cannot be subject to a collateral attack. The law is very clear on this matter. x x x The Implementing Rules stipulate that a labor organization shall be deemed registered and vested with legal personality on the date of issuance of its certificate of registration. Once a certificate of registration is issued to a union, its legal personality cannot be subject to a collateral attack. In may be questioned only in an independent petition for cancellation in accordance with Section 5 of Rule V, Book V of the Implementing Rules.

DISPOSITIVE: Petition is denied, Private respondent won.

DOCTRINE: [T]he legal personality of a legitimate labor organization x x x cannot be subject to a collateral attack. The law is very clear on this matter. x x x The Implementing Rules stipulate that a labor organization shall be deemed registered and vested with legal personality on the date of issuance of its certificate of registration. Once a certificate of registration is issued to a union, its legal personality cannot be subject to a collateral attack. In may be questioned only in an independent petition for cancellation in accordance with Section 5 of Rule V, Book V of the Implementing Rules.