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Labor Code Lien Case G.R. No. 81415

The petitioners, former employees of Sabena Mining Corporation, sought to enforce their preference and first lien under Article 110 of the Labor Code and its implementing rules against assets of the corporation that were seized and sold by respondent Phelps Dodge. However, the Supreme Court ruled that the preference and first lien of employees under the Labor Code are only operative in insolvency court and bankruptcy cases, not in cases where assets are seized and sold by creditors. Therefore, the petitioners could not enforce their statutory preference and first lien against the assets sold by Phelps Dodge.

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173 views2 pages

Labor Code Lien Case G.R. No. 81415

The petitioners, former employees of Sabena Mining Corporation, sought to enforce their preference and first lien under Article 110 of the Labor Code and its implementing rules against assets of the corporation that were seized and sold by respondent Phelps Dodge. However, the Supreme Court ruled that the preference and first lien of employees under the Labor Code are only operative in insolvency court and bankruptcy cases, not in cases where assets are seized and sold by creditors. Therefore, the petitioners could not enforce their statutory preference and first lien against the assets sold by Phelps Dodge.

Uploaded by

Renz Mari Acuña
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Case 31 http://www.lawphil.net/judjuris/juri1990/jun1990/gr_81415_1990.

html

G.R. No. 81415 June 6, 1990

A.N. BOLINAO, JR., JUAN A. AGSALON, JR., ZOSIMO L. CARREON AND REYNOLD P.
DANNUG, petitioners,
vs.
HON. MANUEL S. PADOLINA, PHELPS DODGE (PHILS.) INC., BANK OF AMERICA, AND
DEPUTY SHERIFF CARLOS G. MAOG, respondents.

A.N. Bolinao, Jr. for petitioners.

of preference and first lien of petitioners, as former employees of Sabena Mining


Corporation, under aforesaid law and rules, are operative only in an insolvency court and in a
bankrupt case.

ISSUE:

PROVISION: Art. 110 of the labor code and its implementing rules
HELD:

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