Packaging Products Corp. vs NLRC, GR. No. 50383, July 23, 1987
Subject: Obligations and Contracts
FACTS
This is a petition for review on certiorari of the resolution issued by
the respondent National Labor Relations Commission (NLRC) dismissing the
petitioners' appeal and affirming the decision of the labor arbiter which
ordered the petitioners to pay Briccio Eleria's unpaid commissions in the
amount of Two Hundred Seventy Two Thousand, Eight Hundred Thirty Pesos and
Eighty Centavos (P272,830.80) plus legal interests at six per cent (6%) per
annum until fully paid.
Respondent Inocando maintains that the main reason why management took
away from the complainant the La Tondena, Inc., account was that they learned
that complainant did not actually pass on the commission rebates to the La
Tondena employees and that they became more suspicious because of complainant's
high style of living and expensive activities which suspicion was allegedly
heightened when complainant refused respondent Inocando's offer that he
(Inocando) accompany him in making the rebate payments.
ISSUE
Whether or not the private respondent is entitled to unpaid commissions
based on the aggregate value of the actual monthly sales to La Tondena, Inc.
RULING
No, under the law, in pari delicto, neither one may expect positive
relief from courts of justice in the interpretation of their contract. The
courts will leave them as they were at the time the case was filed.
Art. 1412. If the act in which the
unlawful or forbidden cause consists does not constitute a criminal offense,
the following rules shall be observed: (1) When the fault is on the part of
both contracting parties, neither may recover what he has given by virtue of
the contract, or demand the performance of the other's undertaking; (2) When
only one of the contracting parties is at fault, he cannot recover what he has
given by reason of the contract, or ask for the fulfillment of what has been
promised him. The other, who is not at fault, may demand the return of what he
has given without any obligation to comply his promise.
Base on the facts it appearing that the subject matter of the agreement
sought to be enforced is illegal and immoral. The Bureau of Internal Revenue is
cheated of sizeable amounts of taxes. The corrupting influence affects the
employees of the buyer corporation and the officials and employees of the
supplier firms who are involved in the arrangements. And as always, it is the
consuming public which ultimately suffers.
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