Labor Law, 2012 Bar — Question III-b

ESSAY

X was one of more than one hundred (100) employees who were terminated from employment due to the closure of Construction Corporation A. The Cruz family owned Construction Company A. Upon the closure of Construction Company A, the Cruzes established Construction Company B. Both corporations had the same president, the same board of directors, the same corporate officers, and all the same subscribers. From the General Information Sheet filed by both companies, it also showed that they shared the same address and/or premises. Both companies also hired the same accountant who prepared the books for both companies. X and his co-employees amended their Complaint with the Labor Arbiter to hold Construction Corporation B jointly and severally liable with Construction Company A for illegal dismissal, backwages and separation pay. Construction Company B interposed a Motion to Dismiss contending that they are juridical entities with distinct and separate personalities from Construction Corporation A and therefore, they cannot be held jointly and severally liable for the money claims of workers who are not their employees. Rule on the Motion to Dismiss. Should it be granted or denied? Why?

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