Title
Cruz vs. Bank of the Philippine Islands
Case
G.R. No. 173357
Decision Date
Feb 13, 2013
Rowena de Leon Cruz, an employee of Bank of the Philippine Islands, is dismissed from her position due to gross negligence and breach of trust, resulting in fraudulent transactions and financial loss for the bank and its clients.
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Case Digest (G.R. No. 173357)

Facts:

  • Rowena de Leon Cruz was hired by Far East Bank and Trust Company (FEBTC) in 1989.
  • After FEBTC merged with the Bank of the Philippine Islands (BPI) in April 2000, Cruz became an employee of BPI.
  • Cruz held the position of Assistant Branch Manager at the BPI Ayala Avenue Branch in Makati City, overseeing the Trading Section.
  • On July 12, 2002, Cruz was terminated by BPI after 13 years of service.
  • The grounds for termination were gross negligence and breach of trust due to fraudulent transactions affecting three depositors: Geoffrey L. Uymatiao, Maybel Caluag, and Evelyn G. Avila.
  • The fraudulent activities involved unauthorized pre-termination of USD Certificates of Deposit (USD CDs) and illegal withdrawals from the depositors' accounts, all approved by Cruz.
  • An internal investigation revealed that the signatures on the documents were forged and that Cruz failed to verify the identities of the individuals conducting these transactions.
  • Cruz defended herself by stating she followed bank procedures and was not in a managerial position at the time of the incidents.
  • Despite her defense, BPI dismissed her.
  • Cruz's complaint for illegal dismissal was initially upheld by the Labor Arbiter, who ordered her reinstatement and back wages.
  • The National Labor Relations Commission (NLRC) reversed the Labor Arbiter's decision, dismissing her complaint for lack of merit.
  • The Court of Appeals affirmed the NLRC's decision.
  • Cruz filed a petition for review on certiorari with the Supreme Court.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court denied the petition and affirmed the decisions of the Court of Appeals and the NL...(Unlock)

Ratio:

  • The Supreme Court found that Cruz held a managerial position requiring the exercise of independent judgment, making her responsible for the approval of sensitive transactions such as the pre-termination of USD CDs and withdrawals.
  • The Court noted that Cruz failed to exert due diligence in verifying the identities of individuals conducting these transactions,...continue reading

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