Fernandez v. National Labor Relations Commission

KAPUNAN, J.:

Separate petitions for certiorari under Rule 65 were filed by the parties in this illegal dismissal case questioning the Decision of the National Labor Relations Commission (NLRC) dated December 28, 1992 and its Resolution dated January 27, 1993 denying the motions for reconsideration filed by both parties. As culled from the records, the facts are as follows: Jesus Fernandez was hired on April 30, 1965 as an Electrical Engineer by the Manila Electric Company (MERALCO). In January, 1986, he was promoted to Senior Branch Engineer at the San Juan Branch, Metro Manila, of MERALCO whose duty was to ensure the proper and orderly disposition of all applications for installation of electric service within the area of responsibility of MERALCO's San Juan Office.

On October 6, 1986, MERALCO received a letter, through its administrative officer, from Mariano Caballero of Dan-Dan Enterprises, complaining that Felipe Rondez, the Senior Branch Fieldman of the San Juan office and a subordinate of Fernandez was exacting "grease money" from him for the facilitation of their application for electric installation at their apartment building at 85 Apo Street, Mandaluyong, Metro Manila. Acting on Caballero's complaint, MERALCO arranged with police authorities to entrap Rondez.

On October 10, 1986, the entrapment was scheduled. There was a last minute change of venue from Paisano Restaurant to Barrio Fiesta Restaurant along EDSA, Quezon City where Felipe Rondez, Jesus Fernandez and a certain Angelito Licuanan had lunch. They were joined in by Mariano Caballero and another man.

Shortly after lunch was served, Mariano Caballero excused himself which turned out to be a pre-arranged signal to effect the arrest. Plainclothesmen arrived and started frisking the three men. The frisking stopped when one of the lawmen recovered from Rondez a wad of P100.00 bills in the amount of P2,000.00 just handed to him by Mariano Caballeros as "grease money."

All three were then brought to Karingal Polices Station at Sikatuna Village and later transferred to the South Police District at Fort Bonifacio where they were detained up to the evening of October 11, 1986. Thereafter, a criminal case for estafa was filed by Mariano Caballero against Rondez. A separate criminal complaint, also for estafa, was filed against Fernandez, Licuanan, one Manolo Argabioso and his wife, Annabelle, before the Mandaluyong Branch of the Office of the Provincial Fiscal of Rizal.

Fernandez was then placed under preventive suspension by MERALCO and investigated for his alleged involvement in the extortion. In the course of the administrative investigation by the Special Presidential Committee of MERALCO, it was discovered that Fernandez had previously approved the application for four (4) electric meters of a certain Janet Ley in violation of MERALCO's policy prohibiting the splitting of electrical loads for a single dwelling unit. On March 18, 1987, Fernandez sought a dismissal of the aforesaid administrative case against him for dishonesty in view of a Resolution dated February 24, 1987 of the Provincial Fiscal of Pasig dismissing the complaint for estafa filed against Fernandez by Caballero for insufficiency of evidence.1 On August 6, 1987, MERALCO, acting on the recommendation of its Special Presidential Committee and Legal Services Department dismissed Fernandez on grounds of serious misconduct resulting in loss of confidence with forfeiture of all rights and privileges.

Specifically, Fernandez allegedly violated paragraphs 8 and 11 of Section 7 of MERALCO's Code on Employee Discipline, to wit: Sec. 5.

Failure to comply with official orders and/or perform regular assigned duties or specific instructions related to assigned duty. Penalty: Reprimand to dismissal, depending upon the gravity of the offense.2 x x x x x x x x x Sec. 7, par. 8 - Soliciting or receiving money, gift, percentage or benefits from any person, personally or through mediation of another to perform an act prejudicial to the Company.

Penalty: Dismissal. Sec. 7, par. 11.

- All other acts of dishonesty which cause or tend to cause prejudice to the company. Penalty: Subject to disciplinary action depending upon the gravity of the offense.3 On August 20, 1987, Fernandez filed a complaint for illegal dismissal with claims for moral and exemplary damages. On April 15, 1991, not finding substantial evidence to support the claim for loss of trust and confidence, the Labor Arbiter ruled in favor of Fernandez.

The dispositive portion of the decision reads, as follows:

WHEREFORE, premises considered, the respondent is hereby declared guilty of illegal dismissal and is hereby ordered to: 1. Reinstate the complainant to his former position and to pay him full backwages and other benefits without loss of seniority right. 2. Pay the complainant moral damages in the amount of P 100,000.00. 3. Pay the complainant exemplary damages in the amount of P50,000.00; and 4. Pay the complainant attorney's fee equivalent to 25% of the judgment award.4 MERALCO appealed to the NLRC. On December 28, 1992 the NLRC ruled otherwise and found just cause for Fernandez's dismissal. Thus: WHEREFORE, premises considered, the assailed decision of 15 April 1991 in this case is hereby Vacated and Set Aside and a new judgment entered, ordering respondent Manila Electric Company, to pay complainant Jesus (B) Fernandez, the grand total sum (of) One Hundred Twenty Thousand, Five Hundred Fifty-Two and 80/100 (P120,552.80) Pesos, Philippine Currency broken down as follows: 1. separation pay P 96,060.80; 2. emergency cost of living allowance while on payroll reinstate- ment pending appeal 5,490.00; 3. One (1) month pay mid-year bonus 7,601.00; 4. Proportionate 13th month pay for the period corresponding to his payroll reinstate- ment pending appeal 11,401.00 Grand Total