Case Digest (G.R. No. 178184)
Facts:
Grand Asian Shipping Lines, Inc., Eduardo P. Francisco and William How v. Wilfredo Galvez, et al., G.R. No. 178184, January 29, 2014, Supreme Court Second Division, Del Castillo, J., writing for the Court.Petitioner Grand Asian Shipping Lines, Inc. (GASLI) operated LPG tankers; petitioners William How and Eduardo Francisco were its President and General Manager. Respondents were crewmembers of M/T Dorothy Uno: Wilfredo Galvez (Captain), Joel Sales (Chief Mate), Cristito Gruta (Chief Engineer), Danilo Arguelles (Radio Operator), Renato Batayola, Patricio Fresmillo, Jovy Noble (Able Seamen), Emilio Dominico, Benny Nilmao (Oilers), and Jose Austral (2nd Engineer). In January 2000 an oiler, Richard Abis, reported alleged pilferage of fuel oil aboard the vessel; internal audit by GASLI’s auditor Roger de la Rama certified an overstatement of fuel consumption amounting to 6,954.3 liters (P74,737.86). CIDG referred the matter to the City Prosecutor, which found a prima facie case and an Information for qualified theft was filed in the RTC.
GASLI placed respondents under preventive suspension, conducted administrative hearings, and dismissed them for serious misconduct, breach of trust, and commission of a crime against the employer. Multiple dismissed crewmembers (21 in total across three vessels) filed complaints for illegal suspension/dismissal and unpaid monetary claims with the NLRC; the cases were consolidated.
The Labor Arbiter (LA) rendered a decision on August 30, 2001 holding the dismissals of all 21 complainants illegal, ordering reinstatement and large monetary awards (total P7,104,483.84) including backwages, damages, double indemnity under RA 8188, and attorneys’ fees. GASLI appealed to the NLRC, posted partial bonds and moved to reduce the required bond; the NLRC initially ordered petitioners to post additional bond (P4,084,736.70) which they failed to do, but later — in a September 10, 2003 Decision — reduced the bond to P1.5 million, took the appeal, found just cause for dismissal as to most complainants (except Sales), and deleted the LA’s monetary awards.
Complainants sought relief from the Court of Appeals (CA) by certiorari alleging grave abuse by the NLRC in entertaining the appeal despite insufficient bond and assailing the NLRC’s finding of just cause. The CA, in a September 12, 2006 Decision, annulled the NLRC Decision and Resolution, held th...(Subscriber-Only)
Issues:
- Did the NLRC commit grave abuse of discretion in taking cognizance of petitioners’ appeal where petitioners did not post the full appeal bond required under Article 223 of the Labor Code?
- Were the dismissals of respondents valid for just causes (serious misconduct, breach of trust, commission of a crime) — in particular, were Wilfredo Galvez and Cristito Gruta validly dismissed for loss of trust and confidence, and was Joel Sales dismissed at all?
- Are respondents entitled to the monetary awards granted by the Labor Arbiter (backwages, 13th month pay, unpaid salaries/salary differentials,...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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