The Province of Cebu v. Hon. Ramon Am. Torres

Summary

The Province of Cebu challenged trial court orders allowing execution of a 1974 labor judgment despite a 1979 compromise agreement. Fifty former highway laborers obtained a 1974 mandamus decision ordering reinstatement and back wages after termination due to decentralization. In 1979, parties compromised with laborers waiving reinstatement and receiving P2.3 million. The trial court later allowed execution of the original 1974 judgment, reasoning that the Province breached the compromise by seeking reconsideration. The Supreme Court granted certiorari, ruling that execution must follow the 1979 compromise order, not the original judgment. Since laborers already received P2.3 million under the compromise, further recovery would constitute unjust enrichment. The Province's certiorari petition seeking overpayment refund did not constitute breach of the compromise agreement but showed good faith compliance. The Court permanently enjoined execution of the original judgment.