Luzon Development Bank vs. Association of Luzon Development Bank Employees

G.R. No. 120319. October 6, 1995.

Main Topic – Rule 43.

FACTS

Atty. Ester S. Garcia, in her capacity as Voluntary Arbitrator, received ALDBE’s Position Paper, on the other hand, LDB failed to submit its Position Paper despite a letter from the Voluntary Arbitrator reminding them to do so. Without LDB’s Position Paper, the Voluntary Arbitrator rendered decision that LDB has not adhered to the Collective Bargaining Agreement provision nor the Memorandum of Agreement on promotion. 

LDB filed a petition for certiorari and prohibition seeking to set aside the decision of the Voluntary Arbitrator and to prohibit her from enforcing the same with the Supreme Court. 

ISSUE

Whether or not decision or award of a voluntary arbitrator is appealable to the Supreme Court on a petition for certiorari and not with the Court of Appeals.

RULING

No. A voluntary arbitrator by the nature of her functions acts in a quasi-judicial capacity.” It follows that the voluntary arbitrator, whether acting solely or in a panel, enjoys in law the status of a quasi-judicial agency but independent of, and apart from, the NLRC since his decisions are not appealable to the latter. A fortiori, the decision or award of the voluntary arbitrator or panel of arbitrators should likewise be appealable to the Court of Appeals, in line with the procedure outlined in Revised Administrative Circular No. 1-95, just like those of the quasi-judicial agencies, boards and commissions enumerated therein.

Under Section 9 of B.P. Blg. 129, as amended by Republic Act No. 7902, provides that the Court of Appeals shall exercise:

(B) Exclusive appellate jurisdiction over all final judgments, decisions, resolutions, orders or awards of Regional Trial Courts and quasi-judicial agencies, instrumentalities, boards or commissions, including the Securities and Exchange Commission, the Employees Compensation Commission and the Civil Service Commission, except those falling within the appellate jurisdiction of the Supreme Court in accordance with the Constitution, the Labor Code of the Philippines under Presidential Decree No. 442, as amended, the provisions of this Act, and of subparagraph (1) of the third paragraph and subparagraph (4) of the fourth paragraph of Section 17 of the Judiciary Act of 1948.

DOCTRINE

Arbitration is the reference of a labor dispute to an impartial third person for determination on the basis of evidence and arguments presented by such parties who have bound themselves to accept the decision of the arbitrator as final and binding.