Continental Steel Manufacturing Corporation vs Voluntary Arbitrator Allan Montao

April 26, 2014 No comments

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603 SCRA 621 Labor Law Labor Standards Death Benefits for the Death of a
Dependent A Fetus is a Dependent
Civil Law Civil Personality When does civil personality start When does life
begin

In January 2006, the wife of Rolando Hortillano had a miscarriage which caused the
death of their unborn child. Hortillano, in accordance with the collective
bargaining agreement, then filed death benefits claim from his employer, the
Continental Steel Manufacturing Corporation which denied the claim. Eventually, the
issue was submitted for arbitration and both parties agreed to have Atty. Allan
Montao act as the arbitrator. Montao ruled that Hortillano is entitled to his
claims. The Court of Appeals affirmed the decision of Montao.

On appeal, Continental Steel insisted that Hortillano is not entitled because under
the CBA, death benefits are awarded if an employees legitimate dependent has died;
but that in this case, no death has occurred because the fetus died inside the
womb of the mother, that a fetus has no juridical personality because it was never
born pursuant to Article 40 of the Civil Code which provides a conceived child
acquires personality only when it is born; that the fetus was not born hence it is
not a legitimate dependent as contemplated by the CBA nor did it suffer death as
contemplated under civil laws.

ISSUES:

1. Whether or not the fetus is a legitimate dependent?

2. Whether or not a person has to be born before it could die?

HELD:

1. Yes. In the first place, the fact of marriage between Hortillano and his wife
was never put in question, hence they are presumed to be married. Second, children
conceived or born during the marriage of the parents are legitimate. Hence, the
unborn child (fetus) is already a legitimate dependent the moment it was conceived
(meeting of the sperm and egg cell).

2. No. Death is defined as cessation of life. Certainly, a child in the womb has
life. There is no need to discuss whether or not the unborn child acquired
juridical personality that is not the issue here. But nevertheless, life should
not be equated to civil personality. Moreover, while the Civil Code expressly
provides that civil personality may be extinguished by death, it does not
explicitly state that only those who have acquired juridical personality could die.
In this case, Hortillanos fetus had had life inside the womb as evidenced by the
fact that it clung to life for 38 weeks before the unfortunate miscarriage. Thus,
death occurred on a dependent hence Hortillano as an employee is entitled to death
benefit claims as provided for in their CBA.