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- diagnose business, accounting and management problems
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- handle property transfers and suggest the most tax-efficient ways
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PAL Pilots

Someone asked me, "I have a friend who...

wants to know if PAL can ask the Court to require the 25 pilots who resigned to comply with their contractual obligation to work till the 180th day from receipt of their notice?"

My answer is PAL can go to court to sue the pilots to comply with their contractual obligation. But if the pilots refused to return to work, PAL cannot ask the court to order them to work till the 180th day. Such would be tantamount to involuntary servitude. All PAL can do is to ask the court to award it damages.

If their abrupt resignation is attended by bad faith, they will be liable not only for the liquidated damages, but they will also be liable for any consequential damages that may be caused to PAL because of this abrupt resignation. The 180 days notice is in the form of an obligation with a period. It is only upon the expiry of the period that the pilots' obligation with PAL is extinguished.

In the interim, Philippine Airlines (PAL) can file for injunction against any airline that may be interested to hire these pilots before they comply with their obligation. This is a relief granted to those obligation with a period or condition for the creditor to take action to protect its interest.

And if the other airlines hire these pilots knowing that they have not complied with their obligation with PAL, then the airlines can be liable to PAL for damages, for inducing another to violate their contractual obligation.

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