Floresca Et Al. vs. Philex Mining Corporation Case Digest

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Floresca et al.

vs Philex Mining Corporation


GR No. L-30642
April 30, 1985

Facts:
Several employees of defendant Philex Mining Corporation, while working at its copper mines
underground operations at Tuba, Benguet, died as a result of the cave-in that buried them in the tunnels
of the mine. The heirs of the deceased employees filed a complaint for damages. They alleged that
Philex negligently and deliberately failed to take the required precautions for the protection of the lives
of its men working underground.
There were 48 mine workers. Five were able to escape the cave-in; 22 were rescued within the next
seven days; however, the rest of 21 workers were not rescued, allegedly due to defendant Philex’s
decision to abandon the rescue operations.
The defendant filed a motion to dismiss alleging that the causes of action of the petitioners are covered
by the provisions of the Workmen’s Compensation Act, as amended by RA 772, and that the former
Court of First Instance has no jurisdiction over the case.
The Court of First Instance of Manila dismissed the case on the ground that it falls within the exclusive
jurisdiction of the Workmen’s Compensation Commission. Hence, the present petition to review.

Issue:
WON the Court of First Instance has jurisdiction to try the case.

Ruling:
Yes. The Court held that the former Court of First Instance has jurisdiction to try the case.
It should be underscored that petitioners' complaint is not for compensation based on the
Workmen's Compensation Act but a complaint for damages (actual, exemplary and moral) in the total
amount of eight hundred twenty-five thousand (P825,000.00) pesos. Petitioners did not invoke the
provisions of the Workmen's Compensation Act to entitle them to compensation thereunder. In fact, no
allegation appeared in the complaint that the employees died from accident arising out of and in the
course of their employments. The complaint instead alleges gross and reckless negligence and
deliberate failure on the part of Philex to protect the lives of its workers as a consequence of which a
cave-in occurred resulting in the death of the employees working underground. Settled is the rule that in
ascertaining whether or not the cause of action is in the nature of workmen's compensation claim or a
claim for damages pursuant to the provisions of the Civil Code, the test is the averments or allegations in
the complaint (Belandres vs. Lopez Sugar Mill, Co., Inc., 97 Phil. 100).
In the present case, there exists between Philex and the deceased employees a contractual
relationship. The alleged gross and reckless negligence and deliberate failure that amount to bad faith
on the part of Philex, constitute a breach of contract for which it may be held liable for damages.
Under the compensation acts, the employer is liable to pay compensation benefits for loss of
income, as long as the death, sickness or injury is work-connected or work-aggravated, even if the death
or injury is not due to the fault of the employer (Murillo vs. Mendoza, 66 Phil. 689). On the other hand,
damages are awarded to one as a vindication of the wrongful invasion of his rights. It is the indemnity
recoverable by a person who has sustained injury either in his person, property or relative rights,
through the act or default of another (25 C.J.S. 452).
The case should therefore be remanded to the lower court for further proceedings. However,
should the petitioners be successful in their bid before the lower court, the payments made under the
Workmen's Compensation Act should be deducted from the damages that may be decreed in their
favor.

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