Title
Herma Shipping and Transport Corp. vs. Cordero
Case
G.R. No. 244144
Decision Date
Jan 27, 2020
Cordero, an Able Seaman, was validly dismissed for serious misconduct and breach of trust after failing to report oil pilferage; separation pay denied.
A

Case Digest (G.R. No. 244144)

Facts:

  • Employment Details: Calvin Jaballa Cordero was employed as an Able Seaman by Herma Shipping and Transport Corporation (HSTC) on March 31, 1992. He served as a Helmsman/Watchman on the vessel M/Tkr Angat, responsible for navigation and lookout duties.
  • Incident Leading to Termination: In 2015, HSTC discovered significant losses of oil and petroleum products during the vessel's voyages. An investigation revealed suspicious activities, including the blocking of a CCTV camera for three hours and the presence of an unknown boat near the vessel.
  • Notice to Explain: On January 28, 2016, HSTC issued a Notice to Explain to Cordero and four other crew members, accusing them of violating the company’s Code of Discipline, Serious Misconduct, and Willful Breach of Trust and Confidence. Cordero was placed on preventive suspension.
  • Cordero’s Defense: Cordero denied involvement, citing poor eyesight as the reason he did not notice any irregularities. HSTC found his explanation insufficient and terminated his employment on March 8, 2016.
  • Labor Complaint: Cordero filed a complaint for illegal dismissal, seeking 13th month pay, separation pay, damages, and attorney’s fees. HSTC and its CEO, Herminio S. Esguerra, defended the termination, citing evidence of oil pilferage and Cordero’s failure to report irregularities.

Issues:

  • Validity of Dismissal: Whether Cordero’s dismissal was valid due to Serious Misconduct and Willful Breach of Trust and Confidence.
  • Award of Separation Pay: Whether the Court of Appeals (CA) correctly awarded separation pay to Cordero despite his valid dismissal.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court granted HSTC’s petition (G.R. No. 244144) and denied Cordero’s petition (G.R. No. 244210). The CA’s award of separation pay was deleted, and the validity of Cordero’s dismissal was affirmed. The Court emphasized that social justice does not protect wrongdoers, and equitable remedies cannot be used to reward misconduct.

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