Professional Documents
Culture Documents
FACTS:
Morales and 105 others, employees of NEA, filed a class suit with
the RTC against NEA for payment of rice allowance, meal allowance,
etc. pursuant to RA 6758. RTC favored Morales and ordered a writ of
execution to settle employees’ claims. A notice of garnishment was
issued against the funds of NEA. Willing to comply, NEA however
claimed to have no funds to cover the claim and needed to request for
supplemental budget from DBM. Because of this, NEA filed a Motion
to Quash, which was denied by RTC but was granted an extension.
Meanwhile, COA advised NEA against making further payments
because the employees may not have been hired in the dates
specifically mentioned in RA 6758 that awards them of the benefits and
that RTC had no jurisdiction to order for the settlement under PD 1445.
Morales appealed to the CA, who also ruled in his favor as NEA cannot
take shelter in PD 1445, because as a GOCC, it had the right to be
sued.
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employees’ claims could not have been possible without impleading
DBM.