G.R. No. 242690 - People vs. Fruelda y Anulao

Petitioner Alejandro Y. Caoile was employed by respondent Coca-Cola Bottlers Philippines, Inc. (CCBPI) as an Electrician Data Processing (EDP) Supervisor at the Zamboanga plant.
His position was one of high responsibility and trust, requiring the utmost confidence from management.

On June 6, 1992, CCBPI, through the local plant management, contracted Mr. Redempto de Guzman to install a Private Automatic Branch Exchange (PABX) housewiring for P65,000.00.
As the project fell under petitioner’s direct supervision, all cash advances to the contractor were processed through him.

On June 13, 1992, upon the contractor’s request for an initial cash advance, petitioner prepared a Payment Request Memo for P15,000.00.

A BPI check (No. 878306) was issued for P15,000.00.
After endorsement by the contractor, the check was encashed; P10,000.00 was delivered to the contractor, while petitioner retained P5,000.00.
When queried about the difference, petitioner claimed it was meant “for the higher ups” as arranged by Mr. Arthur Soldevilla.

On June 23, 1992, a second cash advance was facilitated with a BPI check (No. 878350) for P10,000.00; petitioner retained P10,000.00 from the difference.
On June 30, 1992, a third cash advance was executed with a BPI check (No. 010355) for P15,000.00; again, petitioner retained a portion of the money.
Upon the project’s completion, a final payment was made via BPI check (No. 010499) dated July 8, 1992 for P24,350.00 (after withholding tax), of which petitioner kept P5,000.00 and delivered only P19,350.00 to the contractor.
Additionally, for extra services requested by the contractor, petitioner adjusted the quoted amount from P8,000.00 to P8,500.00, and later processed the payment via BPI Check No. 01530 dated July 9, 1992; from this transaction, he retained P500.00 after handing over P8,000.00 to the contractor.

On September 4, 1992, the contractor executed an affidavit exposing the alleged fraudulent acts by petitioner.
The company initiated an investigation:

Petitioner was temporarily barred from his usual duties starting October 1, 1992, though required to report daily with full pay.
A formal Notice of Investigation was served on October 7, 1992 to hold a hearing on October 13, 1992.

Petitioner admitted that the initials in the check vouchers were his but denied the actual encashment and misappropriation.
Testimonies by GM Secretary Carmencita B. Macasinag and plant teller Dominador S. Pila confirmed that petitioner personally handled the encashment and delivery of funds to the contractor.
Evidence including a letter from Mr. Soldevilla and letter-notes was presented, though these were found to be of questionable probative value.

On November 12, 1992, following the investigation and a recommendation by the Plant Finance Manager (Noriel B. Enriquez), the plant management terminated petitioner’s employment on the ground of grave misconduct and dishonesty.
Petitioner filed a complaint for illegal dismissal, seeking reinstatement and various monetary claims, including backwages, unpaid benefits, moral and exemplary damages.
The Labor Arbiter rendered a decision on February 17, 1993, finding petitioner illegally dismissed and ordering his reinstatement with backwages and damages.
Private respondents appealed the decision before the NLRC, which, in its December 6, 1993 resolution, reversed the Labor Arbiter’s decision based on the loss of trust and confidence, affirming that petitioner committed acts justifying his dismissal.
Petitioner’s motion for reconsideration was denied with a subsequent resolution dated March 7, 1994, prompting the present petition for certiorari.

Whether the NLRC committed grave abuse of discretion amounting to lack or excess of jurisdiction by reversing the Labor Arbiter’s decision finding illegal dismissal.
Whether the dismissal of petitioner based on loss of trust and confidence, particularly in light of alleged fraudulent acts, is legally and factually justified.
Whether petitioner was denied due process during the investigation and disciplinary proceedings leading to his termination.