Case Digest (G.R. No. 180849)
Facts:
Philippine National Bank v. Dan Padao, G.R. Nos. 180849 and 187143, November 16, 2011, Third Division, Mendoza, J., writing for the Court. These are consolidated petitions for review on certiorari under Rule 45.
Petitioner Philippine National Bank (PNB) employed respondent Dan Padao beginning August 21, 1981; he rose from clerk to regular Credit Investigator III (appointed March 23, 1995) and ultimately Loan and Credit Officer IV. In 1994–1995 PNB became subject to investigations (by the Commission on Audit and PNB’s Internal Audit Department) into a scheme of anomalous or “behest” loans that resulted in large losses. Several senior local officers were charged and dismissed; some investigators were charged but later cleared or used as prosecution witnesses.
On June 14, 1996, PNB administratively charged Padao (and Division Chief Wilma Velasco) with Dishonesty, Grave Misconduct, Gross Neglect of Duty, Conduct Prejudicial to the Best Interest of the Service and violations of R.A. No. 3019. After investigation, PNB found Padao guilty of gross and habitual neglect of duty and dismissed him on January 10, 1997; Velasco was initially dismissed but later reinstated on reconsideration. Padao filed a complaint with the Labor Arbitration Branch on October 11, 1999.
In a June 21, 2001 Decision the Executive Labor Arbiter (ELA) found Padao’s dismissal valid but nevertheless awarded separation pay of one-half month for every year of service as a form of financial assistance. The National Labor Relations Commission (NLRC), however, in its October 30, 2002 Resolution reversed the ELA, declared the dismissal illegal, ordered reinstatement with full backwages and ten percent attorneys’ fees, and denied PNB’s motion for reconsideration on December 27, 2002. PNB’s petition for certiorari to the Court of Appeals (CA) was dismissed in a December 14, 2006 Decision and a subsequent October 2, 2007 Resolution denying reconsideration (CA-G.R. SP No. 76584), prompting PNB’s Rule 45 petition (G.R. No. 180849) to the Supreme Court.
While G.R. No. 180849 was pending, the NLRC certified entry of judgment (September 22, 2003) and Padao moved to execute the NLRC Resolution; the ELA granted execution and later ordered issuance of writ of execution for backwages in the amount of P2,589,236.21 after PNB failed to timely submit its counter-computation. PNB’s motions to quash and to dissolve were denied; the NLRC dismissed PNB’s appeal and denied reconsideration. PNB filed a separate petition for certiorari wit...(Subscriber-Only)
Issues:
- Did the Court of Appeals and the NLRC err in holding Padao’s dismissal illegal where he served as a credit investigator — a position reposed with the employer’s trust — and was accused of repeated over-appraisals and falsified credit/appraisal reports (i.e., was the dismissal valid for gross and habitual neglect of duty under Article 282(b) of the Labor Code)?
- Did the Court of Appeals err in failing to distinguish between the act of falsifying credit/appraisal reports and merely affixing a signature on a report prepared by another, such that equal degree of misconduct and penalty were improperly applied?
- In the execution proceedings, did the labor courts and the CA err in accepting Padao’s computation and allowing execution while ignoring PNB’...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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