Title
White Diamond Trading Corp. vs. National Labor Relations Commission
Case
G.R. No. 186019
Decision Date
Mar 29, 2010
Employees accused of defrauding employer via ₱10,000 discrepancy in vehicle sale; valid dismissal upheld but procedural lapses led to ₱10,000 nominal damages.
fraudulent sale
valid dismissal
employee dismissal
A

Case Digest (G.R. No. 186019)

Facts:

  • Parties Involved
    • Petitioners:
      • White Diamond Trading Corporation – a company engaged in buying and selling second-hand motor vehicles.
      • Jerry Uy – owner of the company.
      • Jessie Uy – President of the company.
    • Respondents:
      • National Labor Relations Commission (NLRC).
      • Private respondents: Norlito Escoto, Mary Grace Pastoril, and Maria Myrna Omela – former employees implicated in the case.
  • Employment and Transaction Background
    • Employment Details:
      • Maria Myrna Omela was employed in 1999 as assistant secretary.
      • Mary Jane Pastoril (Mary Grace Pastoril) was employed in 2000 as secretary.
      • Norlito Escoto was employed in 2001 as salesman.
    • The Sale of the Toyota Town Ace (February 28, 2004):
      • Escoto consummated the sale of a Toyota Town Ace to Teodoro Abejar Aquino for a cash amount of P200,000.00.
      • Discrepancy in Receipts:
        • The original receipt given to Aquino stated the sale price as P200,000.00.
ii. The duplicate copy retained by the company showed a sale price of P190,000.00.
  • Execution and Documentation:
    • Omela issued the receipt upon receiving the cash payment, with Pastoril present as Aquino counted the money.
ii. Pastoril then facilitated the preparation and handing over of the deed of sale to Aquino, which indicated the incorrect amount of P190,000.00.
  • Immediate Aftermath and Termination
    • On March 8, 2004, the company terminated the employment of Escoto, Omela, and Pastoril.
    • Within two days, the three dismissed employees filed a complaint for illegal dismissal against the company and its top officers.
  • Proceedings Prior to the Court of Appeals
    • Compulsory Arbitration Proceedings:
      • Before the labor arbiter, the dismissed employees argued their innocence claiming they were hardworking and had no prior misconduct.
      • They contended that the termination was pre-emptive and uninvestigated despite the alleged accusation of stealing company funds.
    • The Alleged Irregularities in the Sale:
      • Claim by employees: Aquino paid P200,000.00 in cash and received a receipt for the full amount; any mention of a discount or irregularity was treated as an administrative adjustment.
      • Version presented by the company:
        • Discrepancies arose when Rodriguez, a co-employee, questioned the price differences and other anomalies.
ii. Internal investigation revealed that Escoto had communicated a discount arrangement (P10,000.00) supposedly authorized by Jessie Uy, leading to further irregularities such as altering Aquino’s address/phone number. iii. Omela and Pastoril initially denied any alteration but later admitted that Escoto had orchestrated the change.
  • Findings in the Arbitration and NLRC Proceedings
    • Labor Arbiter’s Decision (September 30, 2004):
      • Found that Escoto, Omela, and Pastoril had engaged in a concerted fraud by manipulating the sale’s records.
      • Held that they made the company believe the sale price was P190,000.00 instead of P200,000.00.
      • Denied money claims except for a claim for service incentive leave due to lack of supporting evidence.
    • NLRC’s Modified Ruling:
      • Affirmed valid dismissal of Escoto and Omela on account of the discrepancies in the sales records.
      • Held that Pastoril’s dismissal was without just cause because her participation was seen as merely mechanical (handing the deed of sale).
      • Awarded nominal damages of P10,000.00 each to Escoto and Omela and backwages plus separation pay to Pastoril, although the latter was deemed as lacking substantive contributory fault.
  • The Court of Appeals (CA) Decision and Subsequent Petition
    • The CA Decision (October 24, 2008):
      • Upheld the NLRC’s findings by dismissing the petition raised by the company for lack of merit regarding Pastoril’s case.
      • The CA’s decision upheld that Pastoril was unjustly awarded relief as her role was construed as minimal.
    • Issues Raised on PETITION FOR REVIEW ON CERTIORARI:
      • The company, along with its principal officers, subsequently contested the appellate findings regarding Pastoril’s role in the transaction.
      • They argued that Pastoril actively participated in the fraudulent transaction by preparing the deed of sale showing an incorrect cash price, thus constituting fraud and serious misconduct.
  • Evidence Presented and Conflicting Testimonies
    • Aquino’s Sinumpaang Salaysay Statements:
      • Multiple affidavits from Aquino provided detailed accounts of the events on February 28, 2004, and later dates.
      • These testimonies highlighted inconsistencies between the amounts received, documented, and the manner in which the sale was executed.
    • The Company’s Allegations:
      • Asserted that Pastoril knowingly altered the document to reflect a lower sale price (P190,000.00) despite knowing the buyer had remitted P200,000.00.
      • Claimed that Pastoril acted in concert with Escoto and Omela to defraud the company of P10,000.00.
    • Pastoril’s Comment:
      • Filed her own explanation insisting that her role was reduced to simply handing over the deed of sale without knowledge of any irregularities or conspiracy.

Issues:

  • Whether the CA erred in affirming the NLRC decision finding that Mary Grace Pastoril was illegally dismissed and in awarding her subsequent backwages and separation pay.
  • Whether Pastoril, contrary to her claim of innocence, played an active and knowing role in the fraudulent transaction concerning the sale of the Toyota Town Ace.
  • Whether the available evidence, including Aquino’s testimonies and other records, sufficiently demonstrated that there was a concerted conspiracy among Escoto, Omela, and Pastoril in defrauding the company.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)
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