J' Marketing Corporation v. Iguiz

DECISION CARPIO, J.:

The Case This is a petition for review on certiorari1 assailing the Decision2 dated 16 July 2013 and the Resolution3 dated 30 January 2014 of the Court of Appeals (CA) in CA-G.R. SP No. 04657. The Facts Respondent Fernando S. Iguiz (Iguiz) was hired as a driver in September 1995 by petitioner J' Marketing Corporation (JMC). JMC is a company engaged in the business of selling appliances to the general public and has several branches in the Visayas region.

After nine months in JMC's Kalibo Branch, Iguiz was promoted as a collector/credit investigator. On 11 December 2006, Iguiz submitted a Daily Cash Collection Report4 and remitted his collections for the week of 4-9 December 2006. JMC found that Iguiz was short in his remittance collection in the amount of P5,811.

Thereafter, through a Memorandum5 dated 11 December 2006, petitioner Pepito P. Estrellan6 (Estrellan), JMC's Kalibo Branch Manager, directed Iguiz to explain within 24 hours the reason for the P5,811 shortage and suspended Iguiz from his position as collector/credit investigator. Iguiz sent a notarized letter-reply7 dated 14 December 2006 and stated that he failed to make a complete remittance since the amount of P5,811, representing his collection for 8 December 2006, was lost. He said that this was due to the flood brought about by typhoon "Siniang"

which affected his home. Iguiz also attached in his letter-reply the amount of P5,811 as tender of payment. JMC, in turn, did not pursue further investigation on the matter.

Thereafter, JMC conducted an audit of Iguiz's customers under his coverage area (Area 7). JMC's credit supervisor, Marlon Sonio (Sonio), issued a memorandum8 dated 5 February 2007 to Estrellan. As per Sonio's audit report, JMC discovered that Iguiz had an unremitted collection in the amounts of P15,300 and $29 from 14 customers, without the corresponding official receipts.

The unremitted collection covered different months from April 2005 to December 2006. Sonio attached a summary list9 of customers who made the payments to Iguiz without any receipts. Later, JMC collected the affidavits,10 notarized on 28 February 2007, of the 14 customers.

On 8 February 2007, Estrellan issued a memorandum11 to Iguiz asking him to explain within 24 hours why he should not be reprimanded for loss of trust and confidence for receiving payments of P15,300 and $29 without issuing official receipts, as per Sonio's audit report. On the same date, Estrellan also conducted an administrative investigation. JMC submitted an Administrative Investigation Report,12 both signed by Estrellan and JMC's Accounting Supervisor Sianita Nazareta, as witness, but without Iguiz's acknowledgment signature.

The next day, 9 February 2007, Iguiz received the memorandum dated 8 February 2007. On 12 February 2007, before Iguiz could file an explanation for the memorandum dated 8 February 2007, Iguiz received another memorandum13 dated 9 February 2007 from Estrellan asking him to sign the administrative investigation report within 12 hours; otherwise it would mean that Iguiz is waiving his right to be heard and JMC would be constrained to evaluate his case based on the evidence on hand. In his reply-memorandum14 dated 12 February 2007 addressed to Estrellan, Iguiz denied the allegation against him.

Iguiz stated that there is no reason to accuse him of loss of trust and confidence since he never accepted payments from customers without issuing the corresponding official receipts. Iguiz added that there was no basis for the audit report since no formal complaint had been filed against him. On the same date, in a letter15 dated 12 February 2007, JMC, through Arty.

Immanuel L.

Sodusta, wrote Iguiz demanding the remittance of P15,300 and $29 within five days from receipt, with a reminder that necessary action will be resorted to if Iguiz fails to remit the said amounts. In a Joint Affidavit16 dated 13 February 2007, Estrellan and Nazareta attested that Iguiz's remittance on 11 December 2006 was short of P5,811 and when asked to explain verbally, Iguiz answered that he used the money as payment for the hospitalization of his wife. They stated that when Iguiz submitted an explanation dated 14 December 2006, what was written was different from his earlier verbal explanation.

They also added that the barangay captain where Iguiz lives issued a certification17 that their place was not affected by typhoon Siniang on 10 or 11 December 2006. Further, Estrellan and Nazareta declared that there had been several instances in the past that Iguiz's remittances were short. On 27 February 2007, JMC reported the matter of Iguiz's non-issuance of company receipts and non-remittance of collections to the Kalibo Police station for record purposes.18 On 7 March 2007, Vangie M. Tionko, JMC's Personnel Manager, issued a memorandum19 informing Iguiz that because of (1) dishonesty for collecting P15,300 and $29 without issuing official receipts, and (2) breach of trust and confidence, he is terminated from employment on the ground of violation of Article 282, paragraph (c)20 of the Labor Code.

The memorandum provides: TO : FERNANDO IGUIZ (CI Collector - Kalibo Branch) DATE : MARCH 07, 2007 SUBJECT: CONCLUSION ON YOUR CASE An investigation conducted by the company has indicated beyond any doubt that you collected the amount[s] of P15,300.00 and $29.00 from our various customers without issuance of Official Receipts and the non[-] remittance of these collection[s] to our office. This conclusion on your illegal activity is supported by the copy of the following: 1. Notarized affidavit of customers[.] 2.

Administrative investigation report[.] 3. Audit Report from your Credit Supervisor Marlon Sonio[.] 4. Your Branch Manager memo dated February 08, 2007 instructing you to explain your receiving of payments] from customer [s] without issuance of Official Receipt[s].

5. Your response memo dated February 12, 2007. You were given the opportunity to present your side, but it is very obvious that the versions you presented were not the truth.

This are itself [sic] consist of dishonesty on your part. Remember you also have another offense of short collection of P5,811.00 covering Dec. 04, 2006 to Dec.

09, 2006 in which case is supported by the following: 1. Your Branch Manager memo to you dated Dec. 11, 2006 with subject: Short Collection.

2. Your response memo dated Dec. 14, 2006 denying such misappropriation but claimed that same amount was washed out during the flood.

3. Certification from the Office of the Punong Barangay of Poblacion declaring that Barangay Poblacion, Numancia, Aklan was not affected by flood by typhoon "Siniang." 4.

Joint Affidavit of your BM Pepito Estrellan and your AS Sianita Nazareta declaring your contradicting reasons about the short collection. Be informed, dishonesty is an offense under our Company's Code of Ethics Class D offense with disciplinary measure of termination for the commission of first offense. Also, your position as Credit Investigator/Collector required trust and confidence relating to the financial interest of the company and your non[-]observance to this procedure with respect to the fund under your control and custody constitutes breach on your part of the trust and confidence reposed to you by the management.

In this connection, be informed that your services as CI Collector of our Kalibo Branch is terminated with cause effective upon receipt of this memo, on the ground that you violated Art. 282. paragraph c of the Labor Code.21 (Underscoring in the original) On 12 March 2007, Iguiz received the memorandum of termination.

Aggrieved, Iguiz filed a Complaint22 for illegal dismissal with money claims with the National Labor Relations Commission (NLRC) Sub-Regional Arbitration Branch No. VI in Kalibo, Aldan. In a Decision23 dated 15 July 2008, Labor Arbiter Rene G. Enano dismissed the complaint for lack of merit. The Labor Arbiter stated that Iguiz's bare, unsubstantiated and uncorroborated denial of the charges of unremitted collections and non-issuance of receipts justified his dismissal as a valid exercise of JMC's management prerogative for loss of trust and confidence.

Iguiz filed an appeal with the NLRC.24 In a Decision25 dated 27 February 2009, the NLRC, 4th Division of Cebu City reversed the decision of the Labor Arbiter. The dispositive portion of the decision states:

WHEREFORE , premises considered, the decision of the Labor Arbiter is hereby ANNULLED and SET ASIDE. A NEW Decision is entered declaring the illegal dismissal of complainant. Respondents J['] Marketing Corporation/Rogelio Soyao, EVP-General Manager/Pepito Estrellan, Kalibo Branch Manager are hereby ordered to jointly and severally pay complainant the following: 1 Backwages P 131,606.00 2 Separation Pay 69,264.00 3 Moral Damages 20,000.00 4 Exemplary Damages 20.000.00