De La Salle University v. Lolita U. Lao

Summary

This case involved a jurisdictional dispute over an employment contract claim. Lolita Lao, a probationary assistant professor at De La Salle University, sued for damages after her services were terminated following a one-year probationary period. She claimed the university breached a permanent employment contract. The lower courts awarded her P90,000 in damages. However, the Supreme Court reversed, holding that while the case properly belonged in civil courts rather than labor tribunals, no valid permanent employment contract was ever formed. The contract was never signed by the university president and was withdrawn before becoming effective. As a probationary employee, Lao's termination was within the university's prerogative. The case establishes important precedent on jurisdiction between civil courts and labor tribunals in employment disputes involving contract formation rather than typical employer-employee relations.