Telefunken Semiconductors Employees Union-FFW v. Court of Appeals PDF
Telefunken Semiconductors Employees Union-FFW v. Court of Appeals PDF
Lagman Mangali & Associates and Ponce Enrile Reyes & Manalastas for
petitioners.
The Solicitor General for public respondent.
Ermitaño Sangco Manzano & Associates for private respondent.
SYNOPSIS
SYLLABUS
DECISION
DE LEON , JR. , J : p
This is a petition for review on certiorari under Rule 45 of the Rules of Court
seeking the reversal of the Decision 1 of the Court of Appeals dated December 23,
1999 in CA-G.R. SP Nos. 54227 and 54665 and its Resolution 2 dated April 19, 2000,
denying herein petitioners' motion for reconsideration.
The assailed Decision of respondent Court of Appeals granted the petition of
private respondent TEMIC TELEFUNKEN MICROELECTRONICS, (Phils.), INC., (Company,
for brevity) in CA-G.R. SP No. 54227 reversing and setting aside the Secretary of
Labor's: (1) Decision dated May 28, 1999; and (2) Resolution dated July 16, 1999,
insofar as the Company was directed to pay backwages and grant nancial assistance
to the striking workers. ScCEIA
After we consolidated 17 the petitions for certiorari of the Company and the
Union in G.R. Nos. 122743 and 127215, respectively, we rendered a Decision therein on
December 12, 1997. The Company's petition for certiorari in G.R. No. 127215 was
dismissed for lack of merit. In G.R. No. 122743, we granted the Union's petition and
ordered the reinstatement of all striking workers without exception. We also directed
the Secretary of Labor and Employment to determine with dispatch the legality of the
strike as well as the liability of the individual strikers, if any.
After receipt of our said Decision in G.R. Nos. 122743 and 127215, the DOLE
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issued an Alias Writ of Execution on August 26, 1998. Thereafter, the Company moved
to quash the Alias Writ which was, however, denied 18 by the DOLE. The motion for
reconsideration led by the Company was similarly denied. 19 Aggrieved by the
preceding rulings of the DOLE, the Company elevated this case to this Court via another
petition for certiorari docketed as G.R. No. 135788.
On December 7, 1998, we resolved 20 to dismiss the said petition in G.R. No.
135788 for (a) failing to state the place of service by registered mail on the adverse
party; (b) failing to submit a certi cation duly executed by the president of the
petitioning Company or by its representative which shows its authority to represent and
act on behalf of the Company; and (c) for lack of the requisite certi cate of non-forum
shopping. We denied this petition with nality on our March 15, 1999 Resolution 21
where we held that the Secretary of Labor did not abuse his discretion in denying the
Company's motion to quash the execution of our Decision dated December 12, 1997.
In compliance with our order to the Secretary of Labor and Employment "to
determine with dispatch the legality of the strike," marathon hearings were conducted
22 at the DOLE O ce with Atty. Lita V. Aglibut as hearing o cer. On September 22,
1998, both the Union and the Company complied with the order to submit their
respective position papers. The Company adduced evidence and submitted its case for
decision. The Union did not adduce evidence. Instead, the Union manifested that it
would le a motion to dismiss for failure of the Company to prove its case with the
request that it be allowed to present evidence should its motion be denied.
During the subsequent hearings 23 conducted by the hearing o cer of DOLE, the
Union insisted that a ruling should rst be made on the Demurrer to Evidence it
previously led notwithstanding repeated reminders by the Hearing O cer that the
technical rules of evidence and procedure do not apply to proceedings before DOLE.
Thereafter, an exchange of pleadings, reiterating their respective — positions, ensued
between the Company and the Union.
On May 19, 1999, the Union led a motion before the DOLE praying for the
issuance of another Alias Writ of Execution in connection with our March 15, 1999
Resolution in G.R. No. 135788. The Union contended that this Resolution has declared
the dismissals of the striking workers as illegal and therefore a writ should be issued
for the physical reinstatement of the workers with full backwages and other bene ts
reckoned from June 27, 1996.
On May 28, 1999, the Secretary of Labor and Employment resolved the matter in
a Decision. 24 The Secretary of Labor declared therein that in hearings and resolutions
of labor disputes, before the DOLE, his O ce is not governed by the strict and technical
rules of evidence and procedure observed in the regular courts of law, and that it will
resolve the issues based on the pleadings, the documentary evidence and other
records of the case. The dispositive portion of the said Decision dated May 28, 1999
reads:
"WHEREFORE, PRESSED ON THE FOREGOING, this Office hereby:
a. Declares the strike conducted by the Telefunken Semiconductors
Employees Union-FFW on 14 September 1995 as illegal for having
been waged in open, willful and knowing de ance of the
assumption order dated 8 September 1995 and the subsequent
return-to-work order dated 16 September 1995 and consequently,
the striking workers are declared to have lost their employment
status;
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b. Directs the payment of backwages and other bene ts to the striking
workers corresponding to the temporary reinstatement periods (1)
from 27 June 1996 to 28 October 1996, (2) from 21 November 1998
up to the date of this Decision;
c. Directs the Telefunken Micro-Electronics (Phils.), Inc. to grant
nancial assistance equivalent to one (1) month for every year of
service to the striking workers conformably with its grant of the
same bene t to other strikers as manifested by the Company to the
Supreme Court on 20 November 1997. HcSETI
SO ORDERED." 25
Dissatis ed, both the Company and the Union together with individual union
members Nancy Busa and Arnel Badua, led motions for reconsideration of the said
Decision of the Secretary of Labor. On July 16, 1999, 26 the Secretary of Labor denied
the said motions.
The Company and the Union led their respective petitions for certiorari
docketed as CA-G.R. SP Nos. 54227 and 54665 with the Court of Appeals and these
were later on consolidated. On December 23, 1999, the Court of Appeals rendered its
now assailed Decision, the dispositive portion of which states:
"WHEREFORE, the COMPANY's Petition in CA-G.R. No. SP 54227 is
GRANTED. The Secretary of Labor's Decision dated 28 May 1999 and his
Resolution dated 16 July 1999 are REVERSED and SET ASIDE in so far as they
direct the company to pay backwages and grant nancial assistance to the
striking workers. The said Decision and Resolution are AFFIRMED in all other
respects. The Union's Petitions in CA-G.R. SP No. 546654 is DISMISSED.
SO ORDERED."
On January 24, 2000, only the Union sought reconsideration 27 of the said
Decision of the appellate court. However, it was denied for lack of merit by the Court of
Appeals on April 19, 2000 in its Resolution. 28
In the petition at bench, petitioners Union, Madara and Manayao submits the
following assignment of errors, to wit:
THE HONORABLE COURT OF APPEALS ERRED:
I
The need to determine the individual liabilities of the striking workers, the union
o cers and members alike, was correctly dispensed with by the Secretary of Labor
after he gave su cient opportunity to the striking workers to cease and desist from
continuing with their picket. Ensconced in the Labor Code of the Philippines, as
amended, is the rule that:
Art. 263. Strikes, picketing and lockouts.
xxx xxx xxx
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(g) When, in his opinion, there exists a labor dispute causing or likely to cause
a strike or lockout in an industry indispensable to the national interest, the
Secretary of Labor and Employment m a y assume jurisdiction over the
dispute and decide it or certify the same to the Commission for
compulsory arbitration. Such assumption per certi cation shall have the
effect of automatically enjoining the intended or impending strike or
lockout as speci ed in the assumption or certi cation order. If one had
already taken place at the time of assumption or certification, all striking or
locked out employees shall immediately return to work and the employer
shall immediately resume operations and re-admit all workers under the
same terms and conditions prevailing before the strike or lockout. The
Secretary of Labor and Employment or the Commission may seek the
assistance of law enforcement agencies to ensure the compliance with
this provision as well as with such orders as he may issue to enforce the
same. (Italics Ours)
xxx xxx xxx
It is clear from the foregoing legal provision that the moment the Secretary of Labor
assumes jurisdiction over a labor dispute in an industry indispensable to national
interest, such assumption shall have the effect of automatically enjoining the intended
or impending strike. It was not even necessary for the Secretary of Labor to issue
another order directing them to return to work. The mere issuance of an assumption
order by the Secretary of Labor automatically carries with it a return-to-work order, even
if the directive to return to work is not expressly stated in the assumption order. 40
However, petitioners refused to acknowledge this directive of the Secretary of Labor on
September 8, 1995 thereby necessitating the issuance of another order expressly
directing the striking workers to cease and desist from their actual strike, and to
immediately return to work but which directive the herein petitioners opted to ignore. In
this connection, Article 264(a) of the Labor Code clearly provides that:
Article 264. Prohibited Activities.
(a) ...
No strike or lock out shall be declared after the assumption of jurisdiction
by the President or the Secretary or after certi cation or submission of the
dispute to compulsory or voluntary arbitration or during the pendency of
cases involving the same grounds for the strike or lockout.
The rationale of this prohibition is that once jurisdiction over the labor dispute has been
properly acquired by the competent authority, that jurisdiction should not be interfered
with by the application of the coercive processes of a strike. 41 We have held in a
number of cases that de ance to the assumption and return-to-work orders of the
Secretary of Labor after he has assumed jurisdiction is a valid ground for loss of the
employment status of any striking union officer or member. 42
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Furthermore, the claim of petitioners that the assumption and return-to-work
Orders issued by the Secretary of Labor were allegedly inadequately served upon them
is untenable in the light of what have already been clearly established in this case, to
wit:
. . . , the reports of the DOLE process server, shows that the Notice of Order
of 8 September 1995 was actually served on the Union President. The latter,
however, refused to acknowledge receipt of the same on two separate occasions
(on 8 September 1995 at 7:15 p.m. and on 11 September 1995 at 9:30 a.m.). The
Union's counsel of record, Atty. Allan Montano, similarly refused to acknowledge
receipt of the 8 September 1995 Order on 9 September 1995 at 1:25 p.m. caTESD
Records also show that the Order of 16 September 1995 was served at the
strike area with copies left with the striking workers, per the process server's
return, although a certain Virgie Cardenas also refused to acknowledge receipt.
The Federation of Free Workers o cially received a copy as acknowledged by a
certain Lourdes at 3:40 p.m. of 18 September 1995.
The foregoing clearly negate the Union's contention of inadequate service
of the Orders dated 8 and 16 September 1995 of Acting Secretary Brillantes.
Furthermore, the DOLE process server's discharge of his function is an o cial act
carrying the presumption of regularity in its performance which the Union has not
disproved, much less disputed with clear and convincing evidence.
Likewise, it would be stretching the limits of credibility if We were to believe
that the Union was unaware of the said Orders during all the conciliation
conferences conducted by the NCMB-DOLE. Speci cally, in the conciliation
meetings after the issuance of the Order of 8 September 1995 to settle the
unresolved CBA issues and after the issuance of the Order of 16 September 1995
to establish the mechanics for a smooth implementation of this O ce's return-to-
work directive, the Union — with its o cers and members in attendance — never
questioned the propriety or adequacy by which these Orders were served upon
them.
To cast doubt on the regularity of the aforesaid service of the two Orders issued
by the Secretary of Labor, petitioners cite Section 1, Rule IX of the NLRC Manual on
Execution of Judgment which provides that: HSIaAT
Section 1. Hours and Days When Writ Shall Be Served. — Writ of Execution
shall be served at any day, except Saturdays, Sundays and holidays, between the
hours of eight in the morning and five in the afternoon. . . .
However, the above-cited rule is not applicable to the case at bar inasmuch as
Sections 1 4 4 and 4, 4 5 Rule III of the same NLRC Manual provide that such "Execution
shall issue only upon a judgment or order that nally disposes of an action or
proceeding." The assumption and return-to-work Orders issued by the Secretary of
Labor in the case at bar are not the kind of orders contemplated in the immediately
cited rule of the NLRC because such Orders of the Secretary of Labor did not yet nally
dispose of the labor dispute. As pointed out by the Secretary of Labor in his Decision,
petitioners cannot now feign ignorance of his official intervention, to wit:
The admissibility of the evidence presented by the Company, however, has
been questioned. The Union's arguments are less than convincing. The numerous
publications of the subject DOLE Orders in various newspapers, tabloids, radio
and television cannot be considered hearsay and subject to authentication
considering that the subject thereof were the lawful Orders of a competent
government authority. In the case of the announcements posted on the Union's
bulletin board, pictures of which were presented by the Company in evidence,
su ce it for us to state that the bulletin board belonged to the Union. Since the
veracity of the contents of the announcements on the bulletin board were never
denied by the Union except to claim that these were "self-serving,
unveri ed/unveri able and thus utterly inadmissible," We cannot but admit the
same for the purpose for which it was presented. 46
However, this Court's "review (of) the substance" does not mean a re-calibration of the
evidence presented before the DOLE but only a determination of whether the Secretary
of Labor's award passed the test of reasonableness when he arrived at his conclusions
made thereon. Thus, we declared in Meralco, that:
"In this case we believe that the more appropriate and available standard
and one does not require a constitutional interpretation — is simply the standard
of reasonableness. In layman's terms, reasonableness implies the absence of
arbitrariness; in legal parlance, this translates into the exercise of proper
discretion and to the observance of due process. Thus, the question we have to
answer in deciding this case is whether the Secretary's actions have been
reasonable in light of the parties positions and the evidence they presented." 48
We do not agree. That declaration of the Court of Appeals should be taken in the
context of the whole paragraph and the law and the jurisprudence cited in the assailed
portion of its decision. We do not sanction the piecemeal interpretation of a decision to
advance ones case. To get the true intent and meaning of a decision, no speci c
portion thereof should be isolated and resorted to but the decision must be considered
in its entirety. 50 The portion of the Court of Appeals assailed Decision reads, to wit:
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. . . , it cannot be gainsaid that technical rules of evidence prevailing in
courts of law and equity have no room in administrative and/or quasi-judicial
proceedings (Lawin Security Services, Inc. v. National Labor Relations
Commission, 273 SCRA 132; Valderama v. National Labor Relations Commission ,
256 SCRA 466; De Ysasi III v. National Labor Relations Commission , 231 SCRA
173). In fact, Article 221 of the Labor Code expressly mandates that in
proceedings before "the (National Labor Relations) Commission or any of the
Labor Arbiters, the rules of evidence prevailing in courts of law or equity shall not
be controlling . . . ." This provision is also applicable to proceedings before the
O ce of the Secretary of Labor and Employment which, under the said Code, is
empowered to hear and resolve matters arising from the exercise of its plenary
power to issue assumption or (sic) jurisdiction and return-to-work orders, all in
keeping with the national interest (Article 263(g) and Article 264 of the Labor
Code)." 51
The contention of petitioners that they should have been allowed to present
evidence when their demurrer to evidence was denied by the Secretary of Labor, is
untenable. The record shows that in the hearing of September 22, 1998 attended by the
parties, Atty. Lita V. Aglibut, Hearing O cer, of the public respondent's o ce, who
presided over the hearing directed the parties to submit their respective position
papers together with the a davits and documentary evidence within ten (10) days. 52
While the Company submitted its position paper together with supporting evidence and
rested its case for resolution, herein petitioners, however, submitted only its position
paper but without attaching thereto any supporting documentary evidence. Petitioners
chose to rely on the Rules of Court by ling a demurrer to evidence in the hope of a
favorable decision and disregarded our resolution in G.R. No. 127215 ordering the
Secretary of Labor to determine with dispatch the legality of the strike. On the other
hand, the petitioners argued merely on the presumption that the strike was legal. The
fact that the Hearing O cer of DOLE admitted their demurrer to evidence is not a valid
excuse for herein petitioners not to comply with her said directive for the petitioners to
submit their position paper and to attach thereto a davits and documentary evidence
within ten (10) days. Petitioners' non-compliance with that directive by failing or
refusing to attach a davits and supporting evidence to their position paper should not
be ascribed as the fault of the Secretary of Labor when he denied their demurrer to
evidence and forthwith rendered decision on the illegality of the strike. Petitioners have
only themselves to blame for having de ed the order of the said Hearing O cer of
DOLE to submit position papers with supporting evidence. A party who has availed of
the opportunity to present his position paper cannot claim to have been denied due
process. 53 The requirements of due process are satis ed when the parties to a labor
case are given the opportunity to submit position papers wherein they are supposed to
attach all the documents that would prove their claim in the event it will be decided that
no further hearing should be conducted or that hearing was not necessary. 54
The grant of plenary powers to the Secretary of Labor under Art. 263(g) of the
Labor Code, as amended, makes it incumbent for him to bring about soonest, a fair and
just solution to the differences between the employer and the employees so that the
damage such labor dispute might cause upon the national interest may be minimized
as much as possible, if not totally averted, by avoiding stoppage of work or any lagging
of the activities of the industry or the possibility of these contingencies which might
cause detriment to such national interest. 55 Accordingly, he may adopt the most
reasonable and expeditious way of writing nis to the labor dispute. Otherwise, the
result would be absurd and contrary to the grant of plenary powers to him by the Labor
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Code over a labor dispute causing or likely to cause a strike or lockout in an industry
indispensable to the national interest.
And nally, with respect to petitioners' claim of backwages, we nd that the
ratiocination of the appellate court in its assailed Decision is in accord with law and
settled jurisprudence, to wit:
"On the issue of the award of backwages and nancial assistance to the
striking workers, the well-entrenched doctrine is that it is only when there is a
nding of illegal dismissal that backwages are granted ( St. Theresa's School of
Novaliches Foundation vs. National Labor Relations Commission, 289 SCRA 111;
Industrial Timber Corporation-Stanply Operations vs. National Labor Relations
Commission, 253 SCRA 623; Jackson Building Condominium Corporation, 246
SCRA 329), and nancial assistance or separation pay allowed ( Mabeza v.
National Labor Relations Commission, 271 SCRA 670; Capili v. National Labor
Relations Commission, 270 SCRA 688; Aurora Land Projects Corporation v.
National Labor Relations Commission, 266 SCRA 48).
Since, as correctly found by the Secretary of Labor, the strikers were not
illegally dismissed, the COMPANY is under no obligation to pay backwages to
them. It is simply inconsistent, nay, absurd, to award backwages when there is no
nding of illegal dismissal (Fil ex Industrial and Manufacturing Corporation, 286
SCRA 245). . . . when the record shows that the striking workers did not comply
with lawful orders for them to return to work during said periods of time. In fact,
the Secretary of Labor observed that while "it was obligatory on the part of both
parties to restore, in the meantime, the status quo obtaining in the workplace," the
same "was not possible considering the strikers had de ed the return-to-work
Order of this O ce" (p. 8, Ibid). With such blatant disregard by the strikers of
o cial edicts ordering their "temporary reinstatement," there is no basis to award
them backwages corresponding to said time frames. Otherwise, they will recover
something they have not or could not have earned by their willful de ance of the
return-to-work order, a patently incongruous and unjust situation (Santos v.
National Labor Relations Commission, 154 SCRA 166). DcCEHI
The same view holds with respect to the award of nancial assistance or
separation pay. The assumption for granting nancial assistance or separation
pay, which is, that there is an illegally dismissed employee and that illegally
dismissed employee would otherwise have been entitled to reinstatement, is not
present in the case at bench. Here, the striking workers have been validly
dismissed. "Where the employee's dismissal was for a just case, it would be
neither fair nor just to allow the employee to recover something he has not earned
or could not have earned. This being so, there can be no award of backwages, for
it must be pointed out that while backwages are granted on the basis of equity for
earnings which a worker or employee has lost due to his illegal dismissal, where
private respondent's dismissal is for just cause, as is (sic) the case herein, there is
no factual or legal basis to order the payment of backwages; otherwise, private
respondent would be unjustly enriching herself at the expense of petitioners."
(Cathedral School of Technology v . National Labor Relations Commission, 214
SCRA 551). Consequently, granting nancial assistance to the strikers is clearly a
"specious Inconsistency " supra. We are of course aware that nancial assistance
may be allowed as a measure of social justice in exceptional circumstances and
as an equitable concession. We are likewise mindful that nancial assistance is
allowed only in those instances where the employee is validly dismissed for
causes other than serious misconduct or those re ecting on his moral character
(Zenco Sales, Inc. v. National Labor Relations Commission, 234 SCRA 689).
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However, the attendant facts show that such exceptional circumstances do not
obtain in the instant cases to warrant the grant of nancial assistance to the
striking workers. To our mind, the strikers' open and willful de ance of the
assumption order dated September 16, 1995 constitute serious misconduct as
well as re ective of their moral character, hence, granting nancial assistance to
them is not and cannot be justi ed ( Philippines Airlines, Inc. v. National Labor
Relations Commission, 282 SCRA 536, citing Philippine Long Distance Telephone
Company v. National Labor Relations Commission, 164 SCRA 671)." 5 6
In ne, there is no reversible error in the assailed Decision and Resolution of the
Court of Appeals.
WHEREFORE, the petition is DISMISSED. The appealed Decision dated December
23, 1999 and the Resolution dated April 19, 2000 of public respondent Court of
Appeals are AFFIRMED. No costs.
SO ORDERED.
Bellosillo, Mendoza and Buena, JJ., concur.
Quisumbing, J., took no part, former DOLE Secretary.
Footnotes
(g) When, in his opinion, there exists a labor dispute causing or likely to cause a
strike or lockout in an industry indispensable to the national interest; the
Secretary of Labor and Employment may assume jurisdiction over the dispute
and decide it or certify the same to the Commission for compulsory arbitration.
Such assumption per certification shall have the effect of automatically
enjoining the intended or impending strike or lockout as specified in the
assumption or certification order. If one has already taken place at the time of
assumption or certification, all striking or locked out employees shall
immediately return to work and the employer shall immediately resume
operations and readmit all workers under the same terms and conditions
prevailing before the strike or lockout. The Secretary of Labor and Employment
or the Commission may seek the assistance of law enforcement agencies to
ensure the compliance with this provision as well as with such orders as he may
issue to enforce the same.
xxx xxx xxx
5. See note 3.
6. Rollo, p. 199.
7. Rollo, pp. 203-205.
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8. Rollo, p. 202.
9. Ibid.
10. Rollo, pp. 207-227.
11. Rollo, pp. 229-236.
* Now Associate Justice of the Supreme Court.
12. Rollo, pp. 237-238.
13. Rollo, pp. 239-270.
14. Rollo, p. 411.
15. Order dated October 17, 1996; Rollo, pp. 274-275.
35. Austria v. NLRC, 310 SCRA 293, 300 [1999] citing Fernandez v. NLRC, 281 SCRA 423
[1997].
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36. Olan v. Court of Appeals, 287 SCRA 504, 509 [1998] citing South Sea Surety and
Insurance Co. v. Court of Appeals, 244 SCRA 744 [1995].
37. Caoili v. CA, 314 SCRA 345, 353 [1999].
38. 168 SCRA 600 [1988].
39. 269 SCRA 274 [1997].
40. Union of Filipro Employees v. Nestle Philippines, Inc., 192 SCRA 396, 411 [1990].
41. Zamboanga Wood Products, Inc. v. NLRC, 178 SCRA 482, 491 [1989].
42. Allied Banking Corporation v. NLRC, 258 SCRA 724 [1996]; Marcopper Mining
Corporation v. Brillantes, 254 SCRA 595 [1996]; St. Scholastica's College v. Torres, 210
SCRA 565 [1992]; Federation of Free Workers v. Inciong, 208 SCRA 157 [1992]; Union of
Filipro Employees v. Nestle Philippines Inc., supra; Asian Transmission Corp. v. NLRC,
179 SCRA 582 [1989]; and Sarmiento v. Tuico, 162 SCRA 676 [1988].
43. Rollo, pp. 555-556.
44. Section 1. Execution Upon Final Judgment or Order. — Execution shall issue only upon
a judgment or order that finally disposes of an action or proceeding, except in specific
instances where the law provides or execution pending appeal.
45. Section 4. Issuance of a Writ. — Execution shall issue upon an order, resolution or
decision that finally disposes of the actions or proceedings . . . .
50. Valderama v. NLRC, 256 SCRA 466, 472 citing Policarpio v. P.V.B. and Associated Ins. &
Surety Co. Inc., 106 Phil. 125, 131 [1959].
51. Rollo, pp. 184-185.
52. TSN, September 22, 1998, pp. 58-59; Rollo, pp. 399-400.