Insular Life vs. Basiao and NLRC

Parties entered into a contract on 2 July 1968, stating, inter alia, the provisions governing the relations of the parties, the duties of the agent, the acts prohibited to him, and the modes of termination of the agreement. A second contract, Agency Manager’s Contract, was entered into four years later (April 1972), pursuant to which private respondent put up an office. Petitioner terminated the second contract seven years later (May 1979) which prompted private respondent to file a civil case, which he later claims to have been the cause why his first contract was terminated by petitioner and to stop payment of his commissions beginning 1 April 1980. Later, private respondent lodged a complaint in the Ministry of Labor which took cognizance of his case [without contesting the termination of his first contract] claiming for his allegedly unpaid commissions. Petitioner contends that private respondent was an independent contractor and had no obligation to pay the private respondents’ commissions under the first contract. The labor arbiter ruled there was existence of employer-employee relationship, and therefore ordered payment of the private respondents unpaid commissions plus 10% attorneys fees. NLRC affirmed the labor arbiters decision on appeal by petitioner. Thus, this petition for certiorari and prohibition.