In Lynman Bacolor, et al. v. VL Makabali Memorial Hospital, Inc., et al., the Supreme Court addressed the importance of balancing procedural rules with the pursuit of justice, particularly in labor disputes. The Court ruled that substantial compliance with verification and certification against forum shopping requirements can suffice when strict adherence would lead to a denial of substantial justice. This decision emphasizes that courts should prioritize resolving cases on their merits rather than dismissing them based on technicalities.

Dismissed on a Technicality? How Defective Paperwork Can Still Lead to Justice

The case originated from an amended complaint filed by several doctors against VL Makabali Memorial Hospital for illegal dismissal and various money claims. The doctors alleged that they were constructively dismissed after refusing to resign and sign new fixed-term contracts. They claimed the hospital demoted them and eventually terminated some of them after they filed a complaint. The Labor Arbiter (LA) initially ruled in favor of the doctors, finding the hospital guilty of illegal dismissal. However, the National Labor Relations Commission (NLRC) reversed the LA’s decision, dismissing the complaints. Aggrieved, the doctors filed a Petition for Certiorari with the Court of Appeals (CA), which was subsequently dismissed due to a defective Verification/Certificate of Non-Forum Shopping.

The CA dismissed the petition for two primary reasons. First, the Verification/Certificate of Non-Forum Shopping for some petitioners was executed by their counsel without a Special Power of Attorney. Second, the petition did not properly indicate Dax Tidula as a party respondent and failed to include his address. Petitioners argued that the verifications executed by three of the six petitioners, along with their counsel’s verification, constituted substantial compliance. They also contended that the failure to include Dr. Tidula’s address was not a fatal defect.

The Supreme Court, in reversing the CA’s decision, emphasized the principle that rules of procedure are meant to facilitate justice, not to obstruct it. The Court acknowledged that while the Verification/Certificate of Non-Forum Shopping executed by the petitioners’ counsel was technically flawed, the presence of verifications from three of the six petitioners demonstrated substantial compliance. Citing Altres v. Empleo, the Court reiterated the guidelines for dealing with defects in verification and certification against forum shopping:

1) A distinction must be made between non-compliance with the requirement on or submission of defective verification, and non-compliance with the requirement on or submission of defective certification against forum shopping.

2) As to verification, non-compliance therewith or a defect therein does not necessarily render the pleading fatally defective. The court may order its submission or correction or act on the pleading if the attending circumstances are such that strict compliance with the Rule may be dispensed with in order that the ends of justice may be served thereby.

3) Verification is deemed substantially complied with when one who has ample knowledge to swear to the truth of the allegations in the complaint or petition signs the verification, and when matters alleged in the petition have been made in good faith or are true and correct.

4) As to certification against forum shopping, non-compliance therewith or a defect therein, unlike in verification, is generally not curable by its subsequent submission or correction thereof, unless there is a need to relax the Rule on the ground of “substantial compliance” or presence of “special circumstances or compelling reasons”.

5) The certification against forum shopping must be signed by all the plaintiffs or petitioners in a case; otherwise, those who did not sign will be dropped as parties to the case. Under reasonable or justifiable circumstances, however, as when all the plaintiffs or petitioners share a common interest and invoke a common cause of action or defense, the signature of only one of them in the certification against forum shopping substantially complies with the Rule.

6) Finally, the certification against forum shopping must be executed by the party-pleader, not by his counsel. If, however, for reasonable or justifiable reasons, the party-pleader is unable to sign, he must execute a Special Power of Attorney designating his counsel of record to sign on his behalf.

Building on this principle, the Court noted that the verification of a pleading is intended to ensure the truthfulness of allegations, and when at least one petitioner properly verifies the pleading, there is substantial compliance. In this case, the Court highlighted that the petitioners shared a common cause of action, all alleging illegal dismissal under similar circumstances. As such, the signatures of three petitioners on the certificate of non-forum shopping were deemed sufficient. Furthermore, the Supreme Court stressed the importance of resolving the case on its merits, especially considering the conflicting findings of the LA and the NLRC.

Concerning the omission of Dr. Tidula’s address, the Court held that this was not a fatal defect, as Dr. Tidula was represented by counsel. Service of pleadings upon counsel is generally sufficient, unless the court directs otherwise. The Court stated, “the indication that the party ‘could be served with process care of his counsel was substantial compliance with the Rules.’ And, when a party has appeared through counsel, service is to be made upon the counsel, unless the court expressly orders that it be made upon the party.”

Ultimately, the Supreme Court’s decision underscores the judiciary’s commitment to ensuring that cases are decided based on their substantive merits rather than being dismissed due to minor procedural lapses. This ruling serves as a reminder that courts should be flexible and pragmatic in applying procedural rules, especially when strict adherence would lead to injustice. The case was remanded to the Court of Appeals for proper disposition on the merits, ensuring that the doctors’ claims of illegal dismissal would receive a fair hearing.

FAQs

What was the key issue in this case?	The key issue was whether the Court of Appeals erred in dismissing the Petition for Certiorari due to a defective Verification/Certificate of Non-Forum Shopping and the omission of a respondent’s address. The Supreme Court addressed the balance between procedural rules and the pursuit of justice in labor disputes.
What is a Verification/Certificate of Non-Forum Shopping?	It is a sworn statement attached to a pleading, verifying the truth of the allegations and certifying that the party has not filed similar actions in other courts or tribunals. This ensures that parties do not engage in forum shopping, which is the practice of seeking a favorable venue for their case.
What does ‘substantial compliance’ mean in this context?	Substantial compliance means that the party has met the essential requirements of the rule, even if there are minor defects or omissions. In this case, the presence of verifications from some petitioners and their common cause of action were deemed sufficient for substantial compliance.
Why was the CA’s decision reversed?	The CA’s decision was reversed because the Supreme Court found that the petitioners had substantially complied with the requirements for verification and certification against forum shopping. The Court also held that the omission of Dr. Tidula’s address was not a fatal defect.
What is the significance of the LA and NLRC’s conflicting decisions?	The conflicting decisions between the Labor Arbiter and the National Labor Relations Commission underscored the need for a thorough review of the case on its merits. This discrepancy highlighted the importance of ensuring that the case was not dismissed on mere technicalities.
What happens now that the case has been remanded to the CA?	The case will be sent back to the Court of Appeals, where the court will review the substantive issues of the case, including whether the petitioners were illegally dismissed. The CA will make a determination based on the evidence and arguments presented by both parties.
Can a lawyer sign the Verification/Certificate of Non-Forum Shopping on behalf of the client?	Generally, no. The Verification/Certificate of Non-Forum Shopping must be signed by the party-pleader. However, if the party-pleader is unable to sign, they must execute a Special Power of Attorney designating their counsel of record to sign on their behalf.
What is the role of procedural rules in court cases?	Procedural rules are designed to ensure the orderly and efficient administration of justice. However, they should not be applied so strictly as to defeat the ends of justice. Courts must balance the need for procedural compliance with the need to resolve cases fairly and on their merits.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: LYNMAN BACOLOR, ET AL. VS. VL MAKABALI MEMORIAL HOSPITAL, INC., ET AL., G.R. No. 204325, April 18, 2016