Title
Davao Contractors Development Cooperative vs. Pasawa
Case
G.R. No. 172174
Decision Date
Jul 9, 2009
A cooperative dismissed its General Manager for alleged poor performance; courts ruled the dismissal illegal due to procedural flaws and lack of informed employment standards.
A

Case Digest (G.R. No. 172174)

Facts:

  • Parties and nature of the cooperative
    • Davao Contractors Development Cooperative (DACODECO) was a duly registered cooperative engaged in the construction business.
    • Marilyn A. Pasawa (PASAWA) was hired by DACODECO as General Manager.
  • Employment contract and compensation
    • On January 5, 2004, DACODECO hired respondent PASAWA as General Manager.
    • PASAWA received a monthly salary of P6,500.
  • Performance evaluation and dismissal
    • In May 2004, the Board of Directors of DACODECO formed an evaluation committee to assess PASAWA’s performance.
    • The evaluation committee reported that PASAWA’s services were “average.”
    • The evaluation committee found that PASAWA lacked construction knowledge.
    • The evaluation committee found that PASAWA made a false statement in the 2004 General Assembly.
    • Based on the committee’s recommendation, the Board of Directors dismissed respondent effective May 31, 2004, stating that respondent failed to meet the working standard of the cooperative.
    • The dismissal letter thanked PASAWA for her services.
  • Respondent’s action for illegal dismissal
    • PASAWA filed a complaint for illegal dismissal.
    • PASAWA contested the findings of the evaluation committee.
    • PASAWA asserted that she was able to establish proper system and guidelines for DACODECO’s business operations.
    • PASAWA asserted that she rectified past mistakes and errors, improving business output and boosting revenues.
    • PASAWA claimed that DACODECO’s new Chairman disfavored her streamlining.
    • PASAWA contended that, contrary to DACODECO’s position, she was a regular employee.
  • Labor Arbiter proceedings and disposition
    • On March 15, 2005, the Labor Arbiter rendered a Decision in PASAWA’s favor.
    • The Labor Arbiter ruled that PASAWA was a probationary employee.
    • The Labor Arbiter relied on Board Resolution No. 369-2003, which contained DACODECO’s acceptance of PASAWA’s application as General Manager.
    • The Labor Arbiter noted that the board resolution did not specify or inform PASAWA of the reasonable standards by which her advancement to regular status would be gauged.
    • The Labor Arbiter held that PASAWA’s dismissal was invalid.
    • The Labor Arbiter ordered DACODECO to pay:
      • separation pay equivalent to one month salary of P6,500, and
      • backwages from the time of dismissal up to the finality of the Decision.
    • The decretal portion awarded P68,250.00, representing separation pay and backwages tentatively computed from June 1, 2004 up to the date of promulgation.
  • NLRC appeal dismissed
    • DACODECO appealed to the National Labor Relations Commission (NLRC).
    • In a Resolution dated July 22, 2005, the NLRC dismissed the appeal for failure to accompany the memorandum of appeal with a certificate of non-forum shopping.
    • The NLRC held the appeal was dismissed for non-perfection, rendering the appealed decision final and executory.
  • Court of Appeals certiorari dismissed on technical grounds
    • DACODECO elevated the NLRC dismissal to the Court of Appeals via petition for certiorari.
    • The Court of Appeals dismissed the petition on technical grounds, ruling:
      • The verification and affidavit of non-forum shopping was signed by Edgar L. Chavez who was not shown to be a party or duly authorized to institute the petition in the Court of Appeals.
      • The attached board resolution purportedly authorized Chavez to represent DACODECO only before the NLRC.
      • The copy of the board resolution was not certified or authenticated by the Board Secretary.
      • The petition failed to indicate material dates under Section 3, Rule 46 of the Rules of Cour...(Subscriber-Only)

Issues:

  • Procedural compliance
    • Whether the Court of Appeals erred in dismissing DACODECO’s petition for certiorari on technical grounds.
  • Substantive dismissal of a probationary employee
    • Whether DACODECO proved a valid dismissal of PASAWA under Article 281 of the Labor Code.
    • Whether dismissal could be justified on the ground of failure to meet reasonable standards made known to the employee at the start of employment...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.