Baliwag Transit, Inc. V Ople

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250
SUPREME COURT REPORTS ANNOTATED

Baliwag Transit, Inc. vs. Ople
*
G.R. No. 57642. March 16, 1989.
BALIWAG TRANSIT, INC., petitioner, vs. HON. BLAS F.

OPLE, Minister of Labor and Employment, and ROMEO
HUGHES, respondents.
Labor Law; Abandonment; Never at any time did the private
respondent manifest loss of interest in recovering his work nor did
he make any waiver express or implied of his right to be reinstated.
The charge of abandonment must fail for shallowness and proven
falsity. In the first place, the petitioners allegation that it never
heard from the private respondent again for six years after the
collision is obviously untrue for it is a matter of record that he was
in fact its principal witness in its civil complaint for damages against
the PNR. In the second place, it is not disputed that after the
decision of Judge Puno absolving Hughes of contributory
negligence, the private respondent requested his reinstatement but
the request was rejected as many times as it was made, and even
when it was reiterated by Minister Ople himself. In the third place,
it is plain that if the private respondent did not demand his
reinstatement earlier, it was because the petitioner deceived him
into believing he would be eventually
_______________
*
FIRST DIV ISION.
251
VOL. 171, MARCH 16, 1989
251

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reinstated, although he never was, even after he had renewed his

drivers license and, still later, after the criminal charge against him
had been dropped. Never at any time did the private respondent
manifest loss of interest in recovering his work nor did he make any
waiver, express or implied, of his right to be reinstated. In fact,
when his demand was finally rejected on May 10, 1980, he lost no
time in asserting his security of tenure and filed his complaint for
reinstatement less than three months later.
Same; Prescription; The prescriptive period established under
Article 1146 of the Civil Code must also be considered.Echoing
the regional director, the petitioner contends that the private
respondents complaint was filed tardily on July 29, 1980, as this
was way beyond the prescriptive periods prescribed in Article 291 as
counted from August 10, 1974, the date when the collision occurred.
It is important to observe that another prescriptive period must also
be considered, to wit, that established under Article 1146 of the Civil
Code, providing as follows: ART. 1146. The following actions must
be instituted within four years: (1) Upon an injury to the rights of
the plaintiff; (2) Upon a quasi-delict.
Civil Law; Action; Ones employment or profession is a property
right and the wrongful interference therewith is an actionable
wrong.The Court, in applying this period in Callanta v. Carnation
Philippines, Inc., gave the following rationale: Ones employment or
profession is a property right and the wrongful interference
therewith is an actionable wrong. The right is considered to be
property within the protection of the constitutional guarantee of due
process of law. Clearly then, when one is arbitrarily and unjustly
deprived of his job or means of livelihood, the action instituted to
contest the legality of ones dismissal from employment constitutes,
in essence, an action predicated upon an injury to the rights of the
plaintiff, as contemplated under Article 1146 of the New Civil Code,
which must be brought within 4 years.
Same; Same; Same; Elements of a cause of action.It is settled
jurisprudence that a cause of action has three elements, to wit: (1) a
right in favor of the plaintiff by whatever means and under
whatever law it arises or is created; (2) an obligation on the part of
the named defendant to respect or not to violate such right; and (3)
an act or omission on the part of such defendant violative of the
right of the plaintiff or constituting a breach of the obligation of the
defendant to the plaintiff.
252
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252

Same; Same; Same; Same; Private respondents right of action

could not have accrued from the mere fact of the occurrence of the
mishap on August 10, 1974.We hold that the private respondents
right of action could not have accrued from the mere fact of the
occurrence of the mishap on August 10, 1974, as he was not
considered automatically dismissed on that date. At best, he was
deemed suspended from his work, and not even by positive act of
the petitioner but as a result of the suspension of his drivers license
because of the accident. There was no apparent disagreement then
between Hughes and his employer. As the private respondent was
the petitioners principal witness in its complaint for damages
against the Philippine National Railways, we may assume that
Baliwag Transit and Hughes were on the best of terms when the
case was being tried. Hence, there existed no justification at that
time for the private respondent to demand reinstatement and no
opportunity warrant either for the petitioner to reject that demand.
Same; Same; Same; Same; The cause of action accrued on May
10, 1980 when private respondents demand for reinstatement was
denied.We agree with the private respondent that May 10, 1980,
is the date when his cause of action accrued, for it was then that the
petitioner denied his demand for reinstatement and so committed
the act or omission constituting a breach of the obligation of the
defendant to the plaintiff. The earlier requests made by him
having been warded off with indefinite promises, and the private
respondent not yet having decided to assert his right, his cause of
action could not be said to have then already accrued. The issues
had not yet been joined, so to speak. This happened only when the
private respondent finally demanded his reinstatement on May 2,
1980, and his demand was categorically rejected by the petitioner
on May 10, 1980.
Same; Same; Same; Same; Same; The action filed by private
respondent has not prescribed whatever prescriptive period is
applied.As the private respondents complaint was filed not later
than three months only after such rejection, there is no question
that his action has not prescribed, whatever prescriptive period is
applied.
PETITION to review the order of the Minister of Labor and

Employment.
The facts are stated in the opinion of the Court.
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Agapito S. Mendoza for petitioner.

253
VOL. 171, MARCH 16, 1989
253
The Solicitor General for public respondent.

Lucas Sugui for private respondent.
CRUZ, J.:
Even before security of tenure for the laborer was dignified
into a constitutional right in 1973, it was already recognized
as one of the great guarantees of the worker against
arbitrary dismissal by his employer. Pursuant to the social
justice policy, the government has consistently emphasized
and strengthened this right, which in a less enlightened age
not far from ours was scornfully dismissed as an
unspeakable heresy.
This is not to say that once invoked, the right is
automatically granted because of our compassionate
concern for the worker. That is not exactly correct. While
security of tenure stands faithful vigil over his interests, it
will be extended to him for his protection only when it is
shown that he deserves it. This is also part of social justice.
In the case at bar, the petitioner contends that its
employee, the private respondent, did not have that right or
has lost or abandoned it by his own omissions. It therefore
asks us to reverse the decision of the then Minister of Labor
ordering the reinstatement of the employee and the
payment to him of back wages.
The petitioner is a duly organized corporation with a
valid authorization from the Board of Transportation to
operate a bus line. The private respondent was hired by it in
1966 and continued serving therein as a bus driver until the
incident in question, when he was relieved of his duties. He
has not been reinstated to date.
The incident occurred on August 10, 1974, at about 2:30
in the afternoon. Romeo Hughes was driving Baliwag
Transit Bus No. 1066 when it was stalled at the railroad
crossing in Calumpit, Bulacan, because the vehicle ahead of
it had stopped owing to a jeep that was making its way into a
garage. As thus positioned, the bus was hit at its rear end by
an onrushing train of the Philippine National Railways that
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dragged it several meters and flung it on its side at a nearby

ditch. Eighteen passengers died and fifty six others suffered
serious
254
254

physical injuries. The bus itself sustained extensive

damage. According to the petitioner, it spent P436,642.03
for the settlement of the claims of the deceased and injured
passengers
and another P179,511.52 for the repair of the
1
bus.
The petitioner filed a complaint for damages against the
Philippine National Railways, which was held liable for its
negligence in a2 decision rendered on April 6, 1977, by Judge
Benigno Puno. The private
respondent was absolved of any
3
contributory negligence. The decision was elevated to the
Court of Appeals, which had not yet resolved the same at
the time this petition was filed with this Court. The private
respondent was also prosecuted for multiple homicide and
multiple serious physical injuries, but the case was
provisionally dismissed by the trial court on March 19,
1980. The reason was failure of 4the prosecution witness to
appear at the scheduled hearing.
The private respondent claims that soon after the
decision against the PNR, he had his drivers license
renewed and then sought reinstatement with Baliwag
Transit. He was advised to wait until termination of the
criminal case against him. He repeated his request several
times thereafter but with the same result, even after the
dismissal of the criminal case. He then decided to seek the
assistance of Minister Ople, who wrote the petitioner on
April 24, 1980,
and implored the private respondents re5
employment. As this request was also ignored, Hughes
finally demanded his reinstatement
on May 2, 1980, in a
6
letter signed by his counsel. On May 10, 1980, the
petitioner replied to say he could not be reinstated because
his drivers license had already been revoked and7 his
driving was extremely dangerous to the riding public.
The private respondents reaction to this rejection was to
file
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_______________
1
Rollo, p. 6.
Ibid., pp. 49-69.
Id., p. 66.
Id., p. 70.
Id., p. 73.
Id., p. 74.
Id., p. 75.
255
VOL. 171, MARCH 16, 1989
255
on July 29, 1980, a formal complaint with the Ministry of

Labor and Employment for illegal dismissal against the
petitioner, with a prayer for his reinstatement with back
wages from
May 10, 1980, plus emergency cost of living
8
allowance.
On January 22, 1981, the complaint was dismissed by
Director Francisco L. Estrella, National Capital Region, on
the ground of prescription, it appearing that although the
private respondent was separated from the service on 10
August 1974 (date of the accident), or in 1975 when his
suspension had presumably metamorphosed into a
dismissal, it was not until 29 July 1980, or a little less than
6 years thereafter, when he filed the complaint.9 The
decision also said, he was guilty of criminal negligence.
The regional director was, however, reversed by Minister
Ople in his order dated May 21, 1981, calling for the
reinstatement of Hughes with full back wages and without
loss of seniority rights. The finding of the public respondent
was that Hughes was not guilty of criminal or civil
negligence 10nor was it correct to say that his action had
prescribed.
In challenging this order, the petitioner contends that
the private respondent is not entitled to reinstatement
because he had abandoned his work; that he is guilty of
laches in not asserting his right sooner; and that in any case
his cause of action had long prescribed. Moreover, it had lost
confidence in the private respondent, a circumstance that by
itself alone was sufficient to justify his dismissal.
The charge of abandonment must fail for shallowness
and proven falsity. In the first place, the petitioners
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allegation that it never heard from the private respondent

again for six years after the collision is obviously untrue for
it is a matter of record that he was in fact its principal
11
witness in its civil complaint for damages against the PNR.
In the second place, it is not disputed that after the decision
of Judge Puno absolving Hughes of contributory negligence,
the private respondent
_____________
8
Id., pp. 16-19.
Id., pp. 86-88.
10
Id., pp. 101-105.
11
Id., pp. 59-60.

256
256

requested his reinstatement but the request was rejected as

many times as it was made,
and even when it was reiterated
12
by Minister Ople himself. In the third place, it is plain that
if the private respondent did not demand his reinstatement
earlier, it was because the petitioner deceived him into
believing he would be eventually reinstated, although he
never was, even after he had renewed his drivers license
and, still later,13after the criminal charge against him had
been dropped. Never at any time did the private
respondent manifest loss of interest in recovering his work
nor did he make any waiver, express or implied, of his right
to be reinstated. In fact, when his demand was finally
rejected on May 10, 1980, he lost no time in asserting his
security of tenure and filed his complaint for reinstatement
less than three months later.
Incidentally, the jurisprudence cited by the petitioner on
this point refers to public office, title to which is deemed
abandoned if not asserted within one year from divestment.
Public interest requires that all conflicting claims are
resolved
as soon as possible, to stabilize the title to such
14
office. No similar urgency applies to private positions,
which is the reason why a longer period is allowed for the
vindication of ones right to such employment.
The claim of prescription deserves a more extended
examination if only because this was the principal basis of
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the decision rendered by the regional director. According to

him, the complaint should
be dismissed because it was filed
**
late under Article 291 of the Labor Code providing that all
claims accruing before the effectivity of the Code on
November 1, 1974 should be filed within one year
thereafter. The decision continued to say that even
assuming that the indefinite suspension developed into a
dismissal only in 1975, after the effectivity of the Code, the
action should still be deemed prescribed and also forever
barred because it was not filed within three years from such
dismissal, conformably to the same article.
_____________
12
Id., pp. 34; 96.
13
Id., pp. 33-34.
14
Cornejo v. Secretary of Justice, 57 SCRA 663; Galano v. Rojas, 67
SCRA 8; Sec. 16, Rule 66 of the Rules of Court.

**
Formerly Article 292.

257
VOL. 171, MARCH 16, 1989
257
The said article reads in material part as follows:

ART. 291. Money claims.All money claims arising from employeremployee relations accruing during the effectivity of this Code shall
be filed within three (3) years from the time the cause of action
accrued; otherwise they shall be forever barred.
All money claims accruing prior to the effectivity of this Code
shall be filed with the appropriate entities established under this
Code within one (1) year from the date of effectivity, and shall be
processed or determined in accordance with implementing rules and
regulations of the Code; otherwise, they shall be forever barred.
Echoing the regional director, the petitioner contends that

the private respondents complaint was filed tardily on July
29, 1980, as this was way beyond the prescriptive periods
prescribed in Article 291 as counted from August 10, 1974,
the date when the collision occurred.
It is important to observe that another prescriptive
period must also be considered, to wit, that established
under Article 1146 of the Civil Code, providing as follows:
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ART. 1146. The following actions must be instituted within four

years:
(1) Upon an injury to the rights of the plaintiff;
(2) Upon a quasi-delict.
The Court, in applying

this period in Callanta v. Carnation
15
Philippines, Inc., gave the following rationale:
Ones employment or profession is a property right and the
wrongful interference therewith is an actionable wrong. The right is
considered to be property within the protection of the constitutional
guarantee of due process of law. Clearly then, when one is
arbitrarily and unjustly deprived of his job or means of livelihood,
the action instituted to contest the legality of ones dismissal from
employment constitutes, in essence, an action predicated upon an
injury to the rights of the plaintiff, as contemplated under Article
1146 of the New
_______________
15
145 SCRA 268. See also Santos v. Court of Appeals, 96 SCRA 448.
258
258

Civil Code, which must be brought within 4 years.
The doctrine
was recently affirmed in Pan-Fil Co. v.
16
Agujar, albeit with several dissents.
Whatever prescriptive period is applicable, the
antecedent question that has to be settled is the date when
the cause of action accrued and from which the period shall
commence to run. The parties disagree on this date. The
contention of the petitioner is that it should be August 10,
1974, when the collision occurred. The private respondent
insists it is May 10, 1980, when his demand for
reinstatement was rejected by the petitioner.
It is settled jurisprudence that a cause of action has three
elements, to wit, (1) a right in favor of the plaintiff by
whatever means and under whatever law it arises or is
created; (2) an obligation on the part of the named
defendant to respect or not to violate such right; and (3) an
act or omission on the part of such defendant violative of the
right of the plaintiff or constituting a breach of the
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17
obligation of the defendant to the plaintiff.

The problem in the case at bar is with the third element
as the first two are deemed established.
We hold that the private respondents right of action
could not have accrued from the mere fact of the occurrence
of the mishap on August 10, 1974, as he was not considered
automatically dismissed on that date. At best, he was
deemed suspended from his work, and not even by positive
act of the petitioner but as a result of the suspension of his
drivers license because of the accident. There was no
apparent disagreement then between Hughes and his
employer. As the private respondent was the petitioners
principal witness in its complaint for damages against the
Philippine National Railways, we may assume that Baliwag
Transit and Hughes were on the best of terms when the case
was being tried. Hence,
_____________
16
G.R. No. 81948, November 9, 1988.
17
ACCFA v. Alpha Insurance and Surety Co., Inc. 24 SCRA 151; Ma-
ao Sugar Central Co. v. Barrios, 79 Phil. 666; Santos v. IAC, 145 SCRA
238.
259
VOL. 171, MARCH 16, 1989
259
there existed no justification at that time for the private

respondent to demand reinstatement and no opportunity
warrant either for the petitioner to reject that demand.
We agree with the private respondent that May 10, 1980,
is the date when his cause of action accrued, for it was then
that the petitioner denied his demand for reinstatement and
so committed the act or omission constituting a breach of
the obligation of the defendant to the plaintiff. The earlier
requests made by him having been warded off with
indefinite promises, and the private respondent not yet
having decided to assert his right, his cause of action could
not be said to have then already accrued. The issues had not
yet been joined, so to speak. This happened only when the
private respondent finally demanded his reinstatement on
May 2, l980, and his demand was categorically rejected by
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the petitioner on May 10, 1980. We have held in earlier

cases that:
Since a cause of action requires, as essential elements, not only a
legal right of the plaintiff and a correlative obligation of the
defendant but also an act or omission of the defendant in violation
of said legal right, the cause of action does not accrue until the
party18obligated refuses, expressly or impliedly, to comply with its
duty.
x
x
x
The one-year period should instead be counted from the date of
rejection by the insurer as this is the time when the cause of action
accrues. Since in these cases there has yet been no accrual
of cause
19
of action. We hold that prescription has not yet set in.
x
x
x
It follows that appellants cause of action arose only when the
appellees made known their intention, by overt acts, not to abide by
the true agreement and the allegations of the complaint establish
that this happened when the appellees executed the affidavit of
consolidation of the title allegedly acquired by appellees under the
fictitious pacto de retro sale. It was then, and only then, that the
appellants cause of action arose to enforce the true contract and
have the apparent one reformed or disregarded, and the period of
extinc_____________
18
ACCFA v. Alpha Insurance and Surety Co., Inc., supra.
19
Summit Guaranty and Insurance Co., Inc. v. De Guzman, 151 SCRA 389.
260
260

20
tive prescription began to run against her.
As the private respondents complaint was filed not later

than three months only after such rejection, there is no
question that his action has not prescribed, whatever
prescriptive period is applied.
This should also dispose of the claim of laches, for equally
obvious reasons.
The last contention of the petitioner is that it had lost
confidence in the private respondent and so was justified in
dismissing him. On this matter, the petitioner is clearly
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hoist with its own petard.

We assume that the loss of confidence invoked by the
petitioner is in the private respondents driving skill, not in
his character or other personal attributes. Otherwise, the
claim must be dismissed outright as the position of driver is
not primarily confidential in nature like that of a cashier or
a private secretary. This alleged loss of confidence is based,
as the petitioner said in its letter of May 10, 1980, on the
collision between the PNR train and the Baliwag Transit
bus the private respondent was driving at the time. The
implication in that letter is that the mishap was due to his
negligence and that it was for this reason that he had been
dismissed.
This is a clear volte face if there ever was one. The
petitioner is contending with itself. Earlier, in its complaint
for damages against the Philippine National Railways,
Baliwag Transit was singing an entirely different tune and
was loud in defending the private respondent from the
charge that he was responsible for the accident. Thus, in its
answer to the counterclaim, the petitioner declared in no
uncertain terms:
4.That the driver of the passenger bus of the plaintiff exercised
due care in approaching the said railroad crossing at Calumpit,
Bulacan, and thereafter passed over the railroad track because there
was no train in sight, and said passenger bus stopped while its rear
portion was on the railroad track due to a stopped vehicle ahead of
it, so that said driver cannot remove the passenger bus before the ap
_____________
20
Tormon v. Cutanda, 9 SCRA 698.
261
VOL. 171, MARCH 16, 1989
261
proach of the train of the defendants, which was coming very fast,
imprudently and negligently, in wanton disregard of danger to
human lives and properties considering that the stopped passenger
bus of the plaintiff at the railroad track was visible to locomotive
engineer Honorio Cirbado at a great distance sufficient for him to
reduce his speed and finally stop to avoid the collision, but that
notwithstanding he failed to exercise due care in reducing his speed
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and stopping the train to avoid hitting and bumping the rear
portion of plaintiffs passenger bus, thereby resulting in the fatal
collision, all of which was due21to the fault and wanton negligence of
defendants. (Italics supplied.).
The trial court accepted this assertion and rendered

judgment against the PNR, at the same time also absolving
the private respondent from even contributory negligence,
thus:
Contributory negligence may not be ascribed to the driver, it was
evident that he had taken the necessary precautions before passing
over the railway track; if the bus was hit, it was for reasons beyond
the control of the driver because he had no place to go; there were
vehicles to his left which prevented him in swerving towards that
direction; his bus stalled in view of the obstructions in his front
where a sand and gravel truck stopped because
of a jeep
22
maneuvering into a garage up front. (Italics supplied).
If it is also remembered that Hughes had never been

involved in any traffic accident during his entire period of
employment with Baliwag Transit, from 1965 until 1974
and indeed even before thatthe conclusion must follow
that the petitioner had no basis for its alleged loss of
confidence in the private respondent.
As the Court sees it, the private respondent simply had
the misfortune of being at the wheel of the Baliwag Transit
bus when, through no fault of his, it was hit and wrecked by
the PNR train due to the negligence of its driver. The
happenstance that Hughes was then driving the bus is
certainly no justification for his dismissal on the specious
ground that the
_____________
21
Rollo 98-99.
22
Ibid., p. 66.
262
262

petitioner had lost confidence in him.

The collision of August 10, 1974, victimized not only the
dead and injured passengers but the private respondent as
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well. For reasons not imputable to him, he has been unable

to resume his work as a bus driver with the petitioner since
that tragic day almost fifteen years ago when the speeding
train crashed into his life. It is time we made things right.
Accordingly, we sustain the order requiring his
reinstatement by the petitioner and approve the award of
civil damages to him except as to the back wages, which are
hereby limited to three years only in accordance with
existing policy. By this decision, we affirm anew the workers
right to security of tenure, recognizing it once again as a
vigilant sentinel of labor in the protection of its interests.
WHEREFORE, subject to the modification of the
challenged order of May 21, 1981 as to the backwages, the
petition is DISMISSED, with costs against the petitioner.
This decision is immediately executory.
SO ORDERED.
Narvasa, (Chairman), Gancayco, Grio-Aquino and
Medialdea, JJ., concur.
Petition dismissed.
Note.Four-year prescriptive period under Article 1146
of the Civil Code applies by way of supplement to the Labor
Code. (Callanta vs. Carnation Philippines, Inc., 145 SCRA
268.)
o0o
263
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SUPREME COURT REPORTS ANNOTATED

G.R. No. 57642. March 16, 1989.

BALIWAG TRANSIT, INC., petitioner, vs. HON. BLAS F.

FIRST DIV ISION.

VOL. 171, MARCH 16, 1989

Baliwag Transit, Inc. vs. Ople

reinstated, although he never was, even after he had renewed his

SUPREME COURT REPORTS ANNOTATED

Same; Same; Same; Same; Private respondents right of action

PETITION to review the order of the Minister of Labor and

Agapito S. Mendoza for petitioner.

VOL. 171, MARCH 16, 1989

Baliwag Transit, Inc. vs. Ople

The Solicitor General for public respondent.

dragged it several meters and flung it on its side at a nearby

SUPREME COURT REPORTS ANNOTATED

physical injuries. The bus itself sustained extensive

Ibid., pp. 49-69.

VOL. 171, MARCH 16, 1989

Baliwag Transit, Inc. vs. Ople

on July 29, 1980, a formal complaint with the Ministry of

allegation that it never heard from the private respondent

Id., pp. 16-19.

Id., pp. 86-88.

Id., pp. 101-105.

Id., pp. 59-60.

SUPREME COURT REPORTS ANNOTATED

requested his reinstatement but the request was rejected as

the decision rendered by the regional director. According to

Id., pp. 34; 96.

Id., pp. 33-34.

Cornejo v. Secretary of Justice, 57 SCRA 663; Galano v. Rojas, 67

SCRA 8; Sec. 16, Rule 66 of the Rules of Court.

Formerly Article 292.

VOL. 171, MARCH 16, 1989

Baliwag Transit, Inc. vs. Ople

The said article reads in material part as follows:

Echoing the regional director, the petitioner contends that

ART. 1146. The following actions must be instituted within four

The Court, in applying

SUPREME COURT REPORTS ANNOTATED

Civil Code, which must be brought within 4 years.

obligation of the defendant to the plaintiff.

G.R. No. 81948, November 9, 1988.

VOL. 171, MARCH 16, 1989

Baliwag Transit, Inc. vs. Ople

there existed no justification at that time for the private

the petitioner on May 10, 1980. We have held in earlier

ACCFA v. Alpha Insurance and Surety Co., Inc., supra.

SUPREME COURT REPORTS ANNOTATED

tive prescription began to run against her.

As the private respondents complaint was filed not later

hoist with its own petard.

Tormon v. Cutanda, 9 SCRA 698.

VOL. 171, MARCH 16, 1989

Baliwag Transit, Inc. vs. Ople

The trial court accepted this assertion and rendered