Sevilla v.

CA (REG)1998

FACTS: Tourist World Service, Inc. (TWS) leased the premises belonging to Noguera for the formers u s e a s a b r a n c h o f f i c e . P e t i t i o n e r S e v i l l a h e l d herself solidarily liable with the party of the part for the prompt payment of the monthly rental. When the branch office was opened, it was run by Sevilla payable to TWS by any airline. For any fare brought i n o n t h e e f f o r t s o f Sevilla, 4% was to go to Lina Sevilla and 3% was to be withheld by the TWS Sevilla was paid no salaries.

She even shared in the expenses of maintaining theoffice, p a i d f o r t h e s a l a r y o f a n o f f i c e s e c r e t a r y a n d o t h e r s u n d r y expenses. Later Tourist World considered closing down itsoffice because of business los ses and news that Sevilla was then connected with a rival firm. Thus,a n e m p l o y e e o f T W S w e n t t o t h e b r a n c h a n d padlocked its premises. Sevilla filed a complaint claiming damages brought about by TWSs revocation of their relationship.

ISSUE: 1) WON Sevilla was just an employee of TWS, and as such heremployer. (NO) 2) WON Sevilla was an agent of TWS because TWS revoked such relationship. (YES) and was bound by the acts of

thus

entitled

to damages

HELD: 1 . S e v i l l a w a s n o t s u b j e c t t o c o n t r o l b y the private respondent TWS either as to the r e s u l t o f t h e e n t e r p r i s e o r a s t o t h e m e a n s used in connection therewith. Under the contract of lease covering theTourist Worlds Ermita office, she had b o u n d herself in Solidum as and for rental payments. A true employee cannot be made to part with his own money in pursuance of his employer'sb u s i n e s s , o r o t h e r w i s e , a s s u m e a n y l i a b i l i t y thereof. - S e v i l l a w a s n o t u n d e r t h e c o n t r o l o f T W S "as to the means used." Sevilla in pursuing the business, obviously relied on her own gifts and capabilities .- S h e w a s n o t i n t h e c o m p a n y ' s p a y r o l l . F o r h e r efforts, she retained 4% in commissions from a i r l i n e b o o k i n g s , t h e r e m a i n i n g 3 % g o i n g t o Tourist World. Unlike an employee then, who earns a fixed salary usually, she earned c o m p e n s a t i o n i n f l u c t u a t i n g a m o u n t s depending on her booking successes.

2 . S e v i l l a s o l i c i t e d a i r l i n e f a r e s , b u t s h e did so for and on behalf of her principal, Tourist World Service, Inc. As compensation, she received 4% of the proceeds in the concept of commissions. - A n a g e n c y t h a t h a s b e e n c r e a t e d f o r m u t u a l interest, of the agent and the principal cannot be revoked at will. Sevilla is a bona fide travel agent herself, and as such, she had acquired a n i n t e r e s t i n t h e b u s i n e s s e n t r u s t e d t o h e r . Moreover, she had assumed a personal obligation for the operation thereof, holding herself solidarily liable f o r t h e p a y m e n t o f rentals. She continued the business, using her own name, after Tourist World had stopped further operations. Her interest, obviously, is not to the commissions she earned as a result of her business transactions, but one that e x t e n d s t o t h e v e r y s u b j e c t m a t t e r o f t h e power of management delegated to her.