Title
Mariano vs. Martinez Memorial Colleges, Inc.
Case
G.R. No. 194119
Decision Date
Apr 13, 2016
A 32-year employee transferred during leave, later terminated for fund diversion; SC upheld dismissal citing management prerogative, breach of trust, and due process.
A

Case Digest (G.R. No. 194119)

Facts:

Sonia F. Mariano v. Martinez Memorial Colleges, Inc., G.R. No. 194119, April 13, 2016, Supreme Court Third Division, Reyes, J., writing for the Court.

Martinez Memorial Colleges, Inc. (MMC) is a private educational institution in Caloocan City; Ferdinand A. Martinez was its President and Dr. Elizabeth M. Del Rio its Executive Vice‑President (respondents). Sonia F. Mariano (petitioner) had been MMC’s Assistant Cashier since April 15, 1976 and had worked there for 32 years. Her duties included accepting student payments and issuing receipts and deposit slips.

On March 12, 2008 Mariano took an authorized one‑month leave to travel to the United States with her husband, Dario Mariano, who was MMC’s Director for Finance. While they were on leave, a memorandum dated April 8, 2008 and effective April 15, 2008 transferred Mariano from the Cashier’s Office to the Office of the Vice‑President for Finance; Eugene Bitancur was assigned to handle collections. Shortly after the petitioner returned, the Board denied a request that she be reinstated to the Cashier’s Office and she was granted only a short extension of leave; a further extension on April 22, 2008 was denied “due to on‑going audit.” She was briefly hospitalized April 22–24, 2008.

MMC’s Special Assistant to the President, Evelyn Muallil, conducted an audit/review (covering 2004–summer 2008) and submitted a System Review Report dated April 23, 2008 which, as summarized in the records, disclosed improper handling of cash accounts and the existence of separate “non‑essential accounts” into which some MMC collections were allegedly diverted; the Report reflected a total of P40,490,619.26 in such accounts. On April 28, 2008 Mariano filed a Complaint for constructive dismissal with the NLRC. On April 29, 2008 MMC, through counsel, sent Mariano (and others) a letter dated April 28/29 asking for written explanation within five days regarding their possible involvement in the alleged diversion. The respondents received a joint letter‑answer dated May 6, 2008; the petitioner alleges she did not separately file an answer.

By letter dated May 7, 2008 (received May 14), Martinez informed Mariano that her employment was terminated for “serious or gross dishonesty” in connection with the alleged misappropriation/diversion of funds and for continuous absence without leave. Mariano amended her NLRC complaint to allege illegal dismissal.

The Labor Arbiter (LA) issued a Decision dated September 8, 2008 declaring Mariano’s dismissal illegal for lack of lawful cause and for failure to afford due process, and awarded backwages (P100,000), separation pay (P800,000) and attorney’s fees (10% of award). The NLRC, however, rendered a Decision dated June 30, 2009 vacating and setting aside the LA decision and dismissing Mariano’s complaint; its Resolution denying reconsideration was dated August 18, 2009. The Court of Appeals (Third Division) in CA‑G.R. SP No. 110663 (decision d...(Subscriber-Only)

Issues:

  • Did the Court of Appeals commit reversible error in ruling that the NLRC did not commit grave abuse of discretion in upholding Mariano’s dismissal?
  • Was Mariano validly dismissed for serious or gross dishonesty under Article 296(c) of the Labor Code?
  • Did MMC afford Mariano due process prior to dismissal, and did her transfer to the Office of the Vice‑President for Finance c...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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