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ABRIGO
APOLINARIO
ATMOSFERA
BACANI
BERNAL
CHUA
CLEMENTE
CRUZ, A.
CRUZ, B.
DELA CRUZ
GORDON
IGOT
LANZON
MANAUIS
NEPOMUCENO
1) CMS Estate FACTS:
Inc. v. SSS 1. On Dec. 1, 1952, CMS Estate was organized for the purpose of
(L-26298) engaging in real estate, and did business with only 6 employees. Its
AOI was amended in order to engage in the logging business, and
CHUA obtained an ordinary license from the Bureau of Forestry to operate a
forest concession of 13.000 hectares.
2. CMS entered into a contract of management with Rojas for the
operation and exploitation of the forest concession. When it started,
the company only has four monthly salaried employees but as of Sept.
1, 1957, it had 89 employees.
3. On Dec. 26, 1957, it revoked its contract of management with Rojas.
4. On Aug. 1, 1958, CMS Estate became a member of SSS with respect to
its real estate business. It remitted to SSS P203.13 representing the
initial premium on the monthly salaries of the employees in its logging
business.
5. However, CMS demanded the refund of the amount, claiming that it is
not yet subject to compulsory coverage with respect to logging
business. This was denied by SSS on the ground that the logging
business was a mere expansion of CMS’ activities and for purposes of
SSS Act, CMS should be considered a member since Dec. 1, 1952.
6. CMS then filed a petition with Social Security Commission for the
determination of their effectivity date of the compulsory coverage of
their logging business.
7. SSC → subject to compulsory coverage as of Sept. 1, 1957
8. CMS Estate → Sec. 9 of SS At should be given liberal interpretation;
SSC cannot combine two distinct businesses when one has not yet
been in operation for more than 2 years
9. SSS → Social Security Act speaks of compulsory coverage of
employees, not business; once employer is initially covered under SS
Act, any other business undertaken by the same employer is likewise
subject in spite of the fact that the latter has not been in operation
for at least 2 years
HELD: The Social Security Law was enacted pursuant to the policy of the
government "to develop, establish gradually and perfect a social security
system which shall be suitable to the needs of the people throughout the
Philippines, and shall provide protection against the hazards of disability,
sickness, old age and death" (Sec. 2, RA 1161, as amended). Said enactment
implements the general welfare mandate of the Constitution and constitutes
a legitimate exercise of the police power of the State.
While the taxing power of the State is for the purpose of raising revenue, the
emphasis of the SS Law is on the promotion of general welfare. The funds
contributed to the System belong to the members who will receive benefits
as a matter of right whenever hazards provided by law occur.
All that is required of CMS is to make monthly contributions for covered
employees in its employ, which contributions are not in the nature of taxes
2) Phil. FACTS: The Philippine Blooming Mills Co., Inc., has been employing Japanese
Blooming Mills technicians under a pre-arranged contract of employment, the minimum
I n c . v. S S S period of which employment is 6 months and the maximum is 24 months. The
(L-21223) corporation had in its employ 6 Japanese technicians. In connection with the
CLEMENTE employment of these aliens, it sent an inquiry to the Social Security System
(SSS) whether these employees are subject to compulsory coverage under the
System, which inquiry was answered by the First Deputy Administrator of the
SSS saying that they were. But for aliens shall, upon their departure from the
Philippines, be entitled to a rebate of a proportionate amount of their
contributions. The employers likewise shall be entitled to the same
proportionate rebate of their contributions in behalf of said aliens employed
by them.
A claim was filed with the SSS for the refund of the premiums paid to
the System, on the ground of termination of the members’ employment. As
this claim was denied, they filed a petition with the Social Security
Commission (SSC) for the return or refund of the premiums, paid by the
employer corporation and the 6 Japanese employees, plus attorneys’ fees.
ISSUE: Whether Petitioner should be exempt from being covered under the
law
Sometime later, the System, sent to the Philippine American Life Insurance
Company SSS Form R-1-A-1, advising plaintiff that pursuant to said Circular
No. 34, the insurance agents thereof are considered its employees, subject to
compulsory coverage under said Act, and urging plaintiff to accomplish said
SSS Form and to submit the same, within ten (10) days, to avoid the penalties
provided for by law.
The trial court ruled (1) holding that plaintiff's agents, solicitors or
underwriters are not employees of plaintiff; (2) commanding defendant
Social Security Commission to desist absolutely from taking criminal action
against plaintiff's officers under the provisions of Section 28 (e) and (f) of the
Social Security Act, and from requiring plaintiff to remit contributions.
Hence, the present appeal to this Court, since questions purely of law.
ISSUE:
Whether or not the trial court had jurisdiction to hear and decide this case
(NO)
HELD:
- Section 5(a) of RA 1161 confers on the Social Security Commission the
power to determine and settle claims, which power partakes of a
quasi-judicial function. In the exercise of said power, the Commission
is not inferior to courts of first instance, in much the same way as the
Public Service Commission, as a board performing quasi judicial
functions, is not inferior to said courts. The quasi-judicial nature of
the functions of the Social Security Commission is emphasized by its
authority, expressly granted by said Sec. 5 (a), to promulgate rules
and regulations governing "the filing, determination and settlement of
claims". Hence, the lower court had no jurisdiction to issue the writ of
prohibition therein prayed for by the appellee.
- The Commission performs administrative, as well as quasi-judicial
functions. Although, it can sue and be sued in courts of first instance,
either as regards its administrative functions, or in the otherwise
when the act complained of forms part of its quasi-judicial functions.
- Although Circular No. 34 bears the approval of the Chairman of the
Commission, said approval does not constitute a "decision" thereof, as
the term is used in section 5, which regulates the judicial review of
such decision. Indeed, a "decision" connotes the adjudication or
settlement of a controversy, and the same did not exist between the
System and the plaintiff when the Chairman of the Commission affixed
his signature to said Circular No. 34 on or before November 6, 1960.
- It is only fair and just, as well as administratively expedient, that
6 ) P o b l e t e FACTS:
Construction
Miguel Asiain was an employee of the Poblete Construction Company. His
C o . v. S S C
(17605) Jan. 22, widow, Judith Asiain, filed a petition before the Social Security
1964 Commission against the company and its manager, Domingo Poblete, to
recover the following sums: (1) P3,600.00 equivalent to one year's salary
GORDON of the deceased; (2) P600.00 representing his unpaid salary for two
months; (3) P288,00 "representing the cash received by respondents from
their laborers as contribution to the family of the deceased;" and (4)
P2,000.00 by way of attorney's fees.
Poblete Construction Company moved to dismiss the petition on the
grounds that the deceased was not a member of the System when he died
because of his refusal to have his share of the corresponding monthly
contributions deducted from his salary. Hence the adjudication of the
claim for damages under Section 24, supra, does not pertain to the
Commission but to the courts of justice.
Section 24 of the Social Security Act (R.A. 1161, as amended), which
provides:
'SEC. 24. Employment records and reports. — (a) each employer
shall report immediately to the System the names, ages, civil
status, occupations, salaries and dependents of all his employees
who are in his employ and who are or may later be subject to
compulsory coverage: Provided, That if an employee subject to
compulsory coverage should die or become sick or disabled
without the System having previously received a report about
him from his employer, the said employer shall pay to the
employee or his legal heirs damages equivalent to the benefits to
which said employee would have been entitled had his name
been reported on time by the employer to the System."