Continental Steel Manufacturing Corp. v.

Montano
FACTS Hortillano, employee of Continental Steel Manufacturing Corp and member of Nagkakaisang Manggagawa ng Centro Steel Corporation-Solidarity of Trade Unions in the hilippines for !mpowerment and "eforms, filed for aternity #ea$e, %erea$ement #ea$e and &eath and 'ccident (nsurance for dependent, pursuant to the Collecti$e %argaining 'greement) Sec) * 'rt) +, -%erea$ement #ea$e-.berea$ement lea$e with pay.in case of death of the employee/s legitimate dependent0 Sec) 1 'rt) +2(((, -3ther %enefits, &ependents-. hp 44,556 in case of death of the employees legitimate respondents0 Claim was based on the death of Hortillano/s unborn child7 child died during labor on 5 8anuary *669 Continental Steel immediately granted claim for paternity lea$e, but denied claims for berea$ement and other death benefits) The Union filed a Notice to 'rbitrate before the National Conciliation and Mediation %oard :NCM&; of the &epartment of #abor and !mployment :&3#!;, NC") Union argued that, a) C%' did not specifically state that the dependent should ha$e first been born ali$e or must ha$e ac<uired =udicial personality so that his>her subse<uent death could be co$ered by the C%') b) &ugan, an employee of Mayer Steel :which was claimed to ha$e the same representati$es as Continental;, recei$ed paternity lea$e, berea$ement lea$e and other benefits under C%' when his child died before labor) c) 'rt) 4?6* of Ci$il Code pro$ides that all doubts in labor shall be construed in fa$or of the safety and decent li$ing of the laborer) Continental Steel contends that, a) C%' did not contemplate the death of an unborn child, without legal personality) 'rts) 16, 14 and 1* of Ci$il Code state that only one with ci$il personality could die) Hence, the unborn child ne$er died because it ne$er ac<uired =uridicial personality) (n addition, a fetus that was deli$ered dead could not be considered a dependent because it ne$er needed any support, nor did it e$er ac<uire such right) b) C%'/s wording was clear and unambiguous) Since neither of the parties <ualified the terms used in the C%', the legally accepted definitions thereof were deemed automaticall accepted) c) Mayer Steel is a separate and distinct from them) 'tty) Montano, 2oluntary 'rbitrator, ruled that Hortillano was entitled to berea$ement lea$e with pay and other benefits) He stated that the fetus had the right to be supported by the parents from the moment he>she was concei$ed, thus, a dependent)

Continental Steel sought the Court of 'ppeals to contend, stating that no death of an employee/s dependent has occurred, since what was contemplated by the C%' was the death of a legal person and not that of a fetus7 Co' affirmed Montano/s resolution) ISSUE/S HELD etition of Continental Steel is denied) &ecision of 2oluntary 'rbitrator and Co' affirmed) @hether or not Hortillano was entitled to berea$ement lea$e and other benefits pursuant Sec * 'rt) + and Sec 1 'rt +2((( pf the C%'

RATIO AL The Court stated that if indeed the pro$isions of the C%' were clear and unambiguous, then there is no need to resort to the interpretation and construction of the same, which is what is happening) The reliance of Continental Steel on 'rts) 16,14 and 1* of Ci$il Code is misplaced) 16 states that a concei$ed child ac<uired personality only when it is born7 14 defines when a child is considered born7 1* states the ci$il personality is eAtinguished by death) B("ST, The issue of ci$il personality is not rele$ant herein) The rights to the benefits in the instant case pertain directly to the parents of the unborn child upon the latter/s death) S!C3N&, 'rts) 16,14 and 1* of Ci$il Code do not pro$ide at all a definition of death) (t does not eAplicitly state that only those who ha$e ac<uired =uridical personality could die) TH("&, 3ne need not ac<uire ci$il personality first before he>she could die) No less than the Constitution recogniCes the life of the unborn from conception) (f the unborn already has life, then the cessation thereof prior to the child being deli$ered, <ualifies as death) The unborn child can be considered a dependent under the C%'/s definition that a dependent is -one who relies on another for support7 one not able to eAist or sustain oneself w>out the power or aid of someone else0) C%' pro$isions on benefits should be interpreted liberally to gi$e life to the intentions thereof)