Liwanag vs. Workmen’s Compensation Commission, 105 Phil. 741

Liwanag vs. Workmen’s Compensation Commission, 105 Phil. 741

Parties:

Petitioners & Appellant: Benito Liwanag and Maria Liwanag Reyes

Respondents & Appellees: Workmen’s Compensation Commission, et. Al.

Nature: Petition for review on certiorari of a decision of the Workmen’s compensation commission

Summary: Appellants Liwanag and Reyes are co-owners of Liwanag Auto supply. They employed Balderama as a a security guard who, while in the line of duty, was killed by criminal hands. His widow, Ciriaca Balderama & his children filed claim for compensation with the Workmen’s Compensation Commission, which granted the award of 3,494.40 to be paid by the appellants jointly and severally. Appellants appealed the case and claimed that under the Workmen’s Compensation Act, the compensation should be divisible & not paid jointly and severally.

Doctrine: WORKMEN'S COMPENSATION; SOLIDARY LIABILITY OF BUSINESS PARTNERS.—Although the Workmen's Compensation Act does not contain any provision expressly declaring that the obligation of business partners arising from compensable injury or death of an employee should be solidary, however, there are other provisions of law from which it could be gathered that their liability must be solidary. Arts. 1711 and 1712 of the New Civil Code and Section 2 of the Workmen's Compensation Act, reasonably indicate that in compensation cases, the liability of business partners should be solidary. If the responsibility of the partners were to be merely joint and not solidary, and one of them happens to be insolvent, the amount awarded to the dependents of the deceased employee would only be partially satisfied, which is evidently contrary to the intent and purpose of the law to give full protection to the employee.

 Facts: Appellants Benito Liwanag and Maria Liwanag Reyes are co-owners of Liwanag Auto Supply, a commercial establishment located at 349 Dimasalang, Sampaloc, Manila. They employed Roque Balderama as security guard who, while in line of duty, was killed by criminal hands. His widow Ciriaca vda. de Balderama and minor children Genara, Carlos and Leogardo, all surnamed Balderama, in due time filed a claim for compensation with the Workmen's Compensation Commission, which was granted in an award worded as follows:

WHEREFORE, the order of the referee under consideration should be, as it is hereby, affirmed and respondents Benito Liwanag and Maria Liwanag Reyes, ordered:

"1. To pay jointly and severally the amount of Three Thousand Four Hundred Ninety-four and 40/100 (P3,494.40) Pesos to the claimants in lump sum; and

"To pay to the Workmen's Compensation Funds the sum of P4.00 (including P5.00 for this review) as fees, pursuant to Section 55 of the Act."

In appealing the case to this Tribunal, appellants do not question the right of appellees to compensation nor the amount awarded. They only claim that, under the Workmen's Compensation Act, the compensation is divisible, hence the Commission erred in ordering appellants to pay jointly and severally the amount awarded. They argue that there is nothing in the compensation Act which provides that the obligation of an employer arising from compensable injury or death of an employee should be solidary; that if the legislative intent in enacting the law is to impose solidary obligation, the same should have been specifically provided, and that, in the absence of such clear provision, the responsibility of appellants should not be solidary but merely joint.

Issue: WON the liability of the partners are jointly and severally despite the absence of a clear provision stating such liability in the Compensation Act.

Held: YES. Although the Workmen's Compensation Act does not contain any provision expressly declaring that the obligation of business partners arising from compensable injury or death of an employee should be solidary, however, there are other provisions of law from which it could be gathered that their liability must be solidary. Arts. 1711 and 1712 of the New Civil Code and Section 2 of the Workmen's Compensation Act, reasonably indicate that in compensation cases, the liability of business partners should be solidary. If the responsibility of the partners were to be merely joint and not solidary, and one of them happens to be insolvent, the amount awarded to the dependents of the deceased employee would only be partially satisfied, which is evidently contrary to the intent and purpose of the law to give full protection to the employee.