Persons Case Digest
Persons Case Digest
Persons Case Digest
COURT OF APPEALS
FACTS
Private respondent NFD International Manning Agents, Inc. hired the services of petitioner as
Messman for Hansa Riga, a vessel registered and owned by its principal and co-respondent,
Barbership Management Limited. Petitioner while performing his duties suffered a sudden
attack of left cerebral haemorrhage. Petitioner underwent a brain operation and later was
repatriated to the Philippines. He was examined, and declared permanently, totally disabled.
Thereafter, authorized representatives of the respondents convinced him to settle his
claim. Petitioner accepted the offer as evidenced by his signature in the Receipt and Release
dated February 28, 1991. His wife, Gloria Famanila and one Richard Famanila, acted as
witnesses in the signing of the release.Petitioner filed a complaint with the NLRC, the latter
dismissed the complaint on the ground of prescription. Petitioner claims that he did not
sign the Receipt and Release voluntarily or freely because he was permanently disabled and in
financial constraints. These factors allegedly vitiated his consent which makes the Receipt and
Release void and unenforceable.
ISSUE
WON Petitioner’s waiver valid.
HELD
YES. It is true that quitclaims and waivers are oftentimes frowned upon and are considered as
ineffective in barring recovery for the full measure of the worker's right and that
acceptance of the benefits therefrom does not amount to estoppel. The reason is plain.
Employer and employee, obviously do not stand on the same footing. However, not all waivers
and quitclaims are invalid as against public policy. If the agreement was voluntarily entered into
and represents a reasonable settlement, it is binding on the parties and may not later be
disowned simply because of change of mind. It is only where there is clear proof that the waiver
was wangled from an unsuspecting or gullible person, or the terms of the settlement are
unconscionable on its face, that the law will step in to annul the questionable transaction. But
where it is shown that the person making the waiver did so voluntarily, with full
understanding of what he was doing, and the consideration for the quitclaim is credible and
reasonable, the transaction must be recognized as a valid and binding undertaking, as in this
case.
ELEGADO v. HON. COURT OF TAX APPEALS