Antonio Locsin Ii v. Mekeni Food Corporation

Summary

This Supreme Court case involved Regional Sales Manager Antonio Locsin II's claim for refund of car plan payments after resigning from Mekeni Food Corporation. Locsin paid P112,500.00 through salary deductions for 50% share of a company service vehicle under a car plan arrangement. When he resigned and returned the vehicle, Mekeni refused to refund his payments. The Labor Arbiter and NLRC favored Locsin, but the Court of Appeals treated his payments as non-refundable vehicle rentals. The Supreme Court partially granted Locsin's petition, ordering refund of his P112,500.00 contribution but not Mekeni's equivalent share. The Court held that without express stipulation treating payments as rentals, and given that the service vehicle primarily benefited the employer's business operations, refusing refund would constitute unjust enrichment. The decision established that car plan payments cannot be forfeited as rentals absent specific contractual terms, especially when the vehicle serves essential business functions.