G.R. No. 105877 - VALIANT MACHINERY AND METAL CORPORATION AND JIMMY LUA SING, VS. NATIONAL LABOR RELATIONS COMMISSION (FIRST DIVISION), ELENO C. PONCIANO AND FERDINAND TRIA.

Ruling

Accordingly, the award of backwages for three years to private respondents should be modified in accordance with Art. 279 of the Labor Code, as amended by R.A. 6715, by giving them full backwages, as the dismissal occurred after March 21, 1989, the date of its effectivity. The Court, however, agrees with petitioners that the award of attorneys fees is improper and erroneous. While Art. 2208 of the Civil Code allows attorneys fees to be awarded if the claimant is compelled to litigate with third persons or to incur expenses to protect his interest by reason of an unjustified act or omission of the party from whom it is sought, [15] there is no showing in the case at bar that petitioners acted willfully or in bad faith and practically compelled private respondents to litigate and incur litigation expenses. In view of the declared policy of law that awards of attorneys fees are the exception rather than the rule, it is necessary for the NLRC to make express findings of facts and law that would bring the case within the exception and justify the grant of such award. The matter of attorneys fees cannot be touched upon only in the dispositive portion of the decision. The text itself must state the reasons why attorneys fees are being awarded. [16] As the decision of the NLRC in this case states no basis for the award of attorneys fees, such award should be deleted. WHEREFORE, the petition is DENIED. The decision of the respondent NLRC dated December 6, 1991 and its Resolution dated May 21, 1992 are AFFIRMED with the MODIFICATION that (1) the amount of full backwages that private respondents are entitled to receive shall be subject to the right of the petitioners to prove and deduct whatever income may have been earned by the former in the interim and (2) the award of attorneys fees is deleted. SO ORDERED.