A.C. No. 13131 - Home Guaranty Corp. vs. Tagayuna

Petitioners: Spouses Eugene C. Go and Angelita Go, and their minor son Emerson Chester Kim B. Go (“Kim”), who was removed from the high school rolls of Colegio de San Juan de Letran (“Letran”).
Respondents: Colegio de San Juan de Letran; Rev. Fr. Edwin Lao (Rector–President); Rev. Fr. Jose Rhommel Hernandez (Father Prefect for Discipline); Albert Rosarda (Assistant Prefect for Discipline); and Ma. Teresa Suratos (High School Principal).
Case History: RTC of Caloocan City awarded P30 million in moral and exemplary damages to petitioners for Kim’s alleged unlawful dismissal (Aug. 18, 2003). The CA reversed on May 27, 2005, finding due process observed and no bad faith. Petitioners filed a Rule 45 petition in the Supreme Court.

Mr. George Isleta (Head, Auxiliary Services) received reports of fraternity recruitment among high school students and a list of alleged members.
Dr. Emmanuel Asuncion’s medical exam (Nov. 20, 2001) found six students with healed blunt-trauma injuries on their thighs.
Four neophytes admitted Tau Gamma Fraternity membership and identified Kim as a senior member.
Security Officer Gerardo Manipon reported a list of 18 alleged fraternity members, including Kim.

Nov. 23, 2001: Oral notice to Mrs. Go at a Parents–Teachers Conference identifying Kim as accused of fraternity membership.
Dec. 19, 2001: Written notice requesting Kim’s explanation; Kim submitted a written denial of membership.
Jan. 8 and Jan. 15, 2002: Scheduled conferences for petitioners; both parents failed to attend.

Fr. Hernandez recommended dismissal; Fr. Lao approved suspension from Jan. 16 to Feb. 18, 2002 (deferred to Jan. 21 to allow Kim an examination).
Respondents offered extension classes to meet graduation requirements; petitioners refused to sign the conformity agreement.

Jan. 28, 2002: Petitioners filed Civil Case No. C-19938 for unlawful dismissal and damages (moral, exemplary, actual).
RTC Trial: Petitioners presented testimony of Mr. and Mrs. Go; respondents offered Rosarda, Hernandez, and Lao.
RTC Decision (Aug. 18, 2003): Held that Letran lacked authority to dismiss for fraternity membership; due process violated; evidence insufficient; awarded P2.854 M to Mr. Go (actual), P20 M (moral), P10 M (exemplary), 20% attorney’s fees, costs.
CA Ruling (May 27, 2005): Found sanction was suspension not dismissal; Letran had authority under DECS Order No. 20, s. 1991 and the Manual of Regulations for Private Schools; due process observed; no bad faith; dismissed complaint.

Whether the Court of Appeals erred in reversing the RTC decision awarding damages for Kim’s alleged unlawful dismissal.
Whether Letran’s sanction was a dismissal or a suspension.
Whether a private school like Letran has authority to impose disciplinary sanctions for fraternity membership.
Whether due process was observed in the disciplinary proceedings.
Whether there is any basis for awarding moral, exemplary, or actual damages.