Title
Leo's Restaurant and Bar Cafe vs. Densing
Case
G.R. No. 208535
Decision Date
Oct 19, 2016
Employee dismissed for alleged dishonesty over signing a contract and unaccounted donations; court ruled illegal dismissal, citing lack of evidence, upheld damages, and joint liability of owners.

Case Digest (G.R. No. 208535)

Facts:

Leo's Restaurant and Bar Cafe Mountain Suite Business Apartelle, Leo Y. Lua and Amelia Lua, petitioners, vs. Laarne C. Bensing, respondent, G.R. No. 208535, October 19, 2016, Supreme Court Second Division, Del Castillo, J., writing for the Court.

Respondent Laarne C. Densing (spelled Laarni in parts of the record) was employed by Kimwa Construction & Development Corporation (Kimwa) on January 2, 2002 as a liaison officer. On July 4, 2005, Leo Y. Lua (Leo) — described in company memoranda as “Proprietor/Chief Executive Officer of Kimwa Construction & Dev. Corp./Mountain Suite Business Apartelle” — appointed respondent Administrative Officer/Human Resource Head of Leo’s Restobar and the Mountain Suite Apartelle, the appointment to take effect October 18, 2005 when those establishments became operational. Respondent’s monthly salary was P15,000.00.

Late 2005 Leo questioned respondent’s actions relating to an exclusivity agreement between the Restobar and Pepsi Products Philippines, Inc. (Pepsi) and alleged unaccounted Pepsi donations. Memoranda dated December 30, 2005 and January 2–3, 2006 required respondent to explain signing the Pepsi contract without authority, failing to account for donated soft drinks, and charging 50% of certain meals to the Restobar. Respondent maintained Leo had verbally authorized her to sign the Pepsi agreement in the presence of Pepsi’s sales manager, Jovenal Ablanque, and asserted she received no personal benefit. Pepsi issued a January 4, 2006 certification clarifying it donated 10 cases at opening and 20 cases on December 7, 2005 and denied giving cash or cash equivalents to any staff; Pepsi also apologized for erroneous documentary volumes.

On January 12, 2006 Leo terminated respondent effective January 15, 2006 for loss of trust and confidence. Respondent filed an amended complaint for illegal dismissal and related claims against Kimwa and petitioners (the Restobar, Apartelle, Leo and Amelia Lua). The Executive Labor Arbiter (LA) — Executive Labor Arbiter Noel Augusto S. Magbanua — rendered a Decision on November 20, 2007 dismissing the complaint for lack of merit but nonetheless awarding respondent one month’s separation pay (P15,000) on the view she acted in good faith in signing the Pepsi contract.

On November 28, 2008 the National Labor Relations Commission (NLRC) issued a Resolution setting aside the LA Decision and finding the dismissal illegal; it ordered payment of backwages, separation pay, moral and exemplary damages (P50,000 each), 13th month pay differential and attorney’s fees, reasoning Pepsi’s statements and other evidence supported respondent’s authority or good faith. Petitioners moved for reconsideration; on June 4, 2009 the NLRC granted reconsideration, reversed itself, and dismissed the complaint, holding respondent lacked authority to sign contracts and had charged meals without approval. The NLRC denied respondent’s motion for reconsideration on July 31, 2009.

Respondent petitioned the Court of Appeals (CA) for certiorari; the CA, in a November 27, 2012 Decision, set aside the NLRC’s June 4 and July 31, 2009 resolutions and reinstated the November 28, 2008 NLRC resolution that found illegal dismissal. The CA emphasized respondent held a position of trust but petitioners failed to prove willful breach; it found no showing of malicious intent, no damage to the Restobar, and corroboration that respondent acted in good faith. The CA den...(Pro-only)

Issues:

  • Was respondent validly dismissed on the ground of loss of trust and confidence? ...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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