Legend International Resorts v.

KML-Independent
G.R. 169754 February 23, 2011

Facts:
Respondent filed a Petition for Certification Election (CE) with the Med-
Arbitration Unit. Petitioner seeks to dismiss the petition alleging that
Respondent is not a legitimate labor organization due to its membership
having a mixture of supervisory and rank & file employees violating Art. 245
of the Code. Respondent argues that even if some of these employees are
supervisors, they are excluded from its membership; the CE could still
proceed due to the numbers required for such is still sustained. Furthermore,
respondent argues that the organizations legitimacy cannot be collaterally
attacked in the CE Proceedings and can only be questioned in an independent
action for cancellation of registration.
Med- Arbiter: dismiss for lack of merit since Art. 245 expressly prohibits
supervisory employees from joining a union of rank & file employees; KML-
respondent is not a legitimate union.
Secretary of DOLE (SDOLE): grants respondents appeal setting aside Med-
Arbiters decision. KMLs legitimacy cannot be collaterally attacked.
Petitioner files certiorari with the CA alleging grave abuse of discretion on the
part of SDOLE. CA held that the issues of KMLs legitimacy has been finalized
with finality and the decision of the Bureau of Labor Relations upholding its
legitimacy has become final and executory for failure of Petitioner to appeal
on time
Issue:
W/N CA erred in denying the petition of Legend
Held:
PARTLY MERITORIOUS; CA affirms SDOLE decision
Records show that Petitioner has timely filed a petition for certiorari before
CA.
However, a CE may still be conducted during the pendency of the
cancellation proceedings. This is because at the time the petition for
certification was filed, the petitioning union is presumed to possess the legal
personality to file the same. There is therefore no basis for petitioners
allegation that the cancellation of respondents certificate of registration
should retroact to the time of its issuance or that it effectively nullified all
respondents activities, including its filing of the petition for certification
election and its demand to collectively bargain. Also, the legitimacy of the
legal personality of KML cannot be collaterally attacked in a petition for
certification election proceeding.