Case Digest (G.R. No. 194944)
Facts:
Philippine National Bank v. Teresita Fe A. Gregorio, G.R. No. 194944, September 18, 2017, Supreme Court First Division, Jardeleza, J., writing for the Court.Philippine National Bank (PNB) employed Teresita Fe A. Gregorio beginning 1978 and she eventually became Branch Manager (Senior Manager) of PNB Sucat. In January 2003 PNB’s Internal Audit Group (IAG) conducted a credit review of PNB Sucat after a depositor questioned unusual high‑yield investment transactions. The IAG issued a memorandum (IAG Memorandum) on February 18, 2003 describing alleged irregular “loan against deposit hold‑out” transactions: depositors purportedly provided deposits that secured loans whose proceeds were credited to third‑party accounts; borrowers purportedly paid 5% monthly interest, of which 3% went to depositors and 2% was said to be the bank’s commission. The IAG identified documents (loan applications, promissory notes, holdout agreements, manager’s checks) and several instances of proceeds credited to persons other than borrowers.
Following the IAG probe, depositors executed affidavits implicating Gregorio. Two depositors later executed affidavits of retraction. The PNB Administrative Adjudication Panel charged Gregorio (May 30, 2003; February 4, 2004) with gross misconduct, gross dishonesty and willful breach of trust; Gregorio answered and submitted rebutting affidavits. On March 29, 2004 the Panel recommended dismissal, discounting affidavits of retraction as unreliable; PNB dismissed Gregorio on May 4, 2004.
Gregorio filed for illegal dismissal before the Labor Arbiter (LA). The LA found PNB failed to prove just cause and ordered reinstatement with monetary awards. PNB appealed to the National Labor Relations Commission (NLRC), which on September 26, 2008 reversed the LA and dismissed the complaint for lack of merit, holding that PNB had presented sufficient evidence (IAG Memorandum, complainant affidavits, teller testimonies, and other records) and that retractions are generally unreliable. Gregorio’s motion for reconsideration before the NLRC was denied.
Gregorio filed a special civil action for certiorari under Rule 65 before the Court of Appeals (CA), alleging the NLRC acted with grave abuse of discretion. The CA, in CA‑G.R. SP No. 110045, by Decision dated July 15, 2010 (and Resolution of December 21, 2010 denying reconsideration), granted certiorari, found the NLRC committed grave abuse, reversed the NLRC and reinstated the LA. PNB t...(Pro-only)
Issues:
- Did the Court of Appeals correctly find that the NLRC acted with grave abuse of discretion in reversing the Labor Arbiter?
- Did the NLRC have substantial evidence to uphold PNB’s dismissal of Gregorio for gross dishonesty, gross misconduct and willful breach of trust under Article 297 (formerly Art. 282) of the Labor Code?
- Did PNB’s failure to provide Gregorio the opportunity to confront one affiant (Pollard...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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