Title
Banez vs. De La Salle University
Case
G.R. No. 167177
Decision Date
Sep 27, 2006
DLSU employee Bañez dismissed for fraudulently collecting fees; SC upheld dismissal but ordered payment of due benefits, offset by unremitted fees.

Case Summary (G.R. No. 226494)

Background of the Case

Petitioner Estrella S. BaAez held the position of Curriculum Evaluator at De La Salle University, overseeing the assessment of fees related to comprehensive examinations and thesis defenses for Graduate Studies students. In August 1996, the University initiated an investigation based on reports of fee collection anomalies involving BaAez and Virginia Cantillas, a Registrar's Office employee. Both were found to have conspired in the unauthorized collection of fees, leading to their preventive suspension.

Administrative Proceedings and Complaints

Following the anomalies, BaAez and Cantillas were required to explain their actions, but Cantillas resigned, seeking retirement benefits, while BaAez denied all allegations and alleged harassment due to her husband's role within the employees’ union. The University formally charged both employees and conducted an administrative investigation, which BaAez and Cantillas failed to attend on multiple occasions. BaAez subsequently filed a complaint claiming unfair labor practices and illegal suspension, which was consolidated with Cantillas’s complaint about retirement benefits.

Labor Arbiter's Initial Decision

On July 31, 1998, Labor Arbiter Felipe T. Garduque II ruled that the charges of illegal suspension and unfair labor practice were without merit. However, the University was ordered to pay BaAez certain monetary benefits, while Cantillas was granted payment for part of her retirement benefits. All parties appealed this decision.

Remand and Subsequent Hearings

The National Labor Relations Commission (NLRC) remanded the cases due to insufficient evidence against BaAez regarding her involvement in the fraudulent activities. This led to further hearings, with Labor Arbiter Nieves V. de Castro taking over the consolidated cases. Eventually, on August 14, 2001, she ruled in favor of BaAez, ordering her reinstatement and awarding her back wages along with damages.

Court of Appeals Ruling

On April 30, 2004, the Court of Appeals ruled against BaAez, reinstating Labor Arbiter Garduque's decision while denying her claims for salary increases and other benefits. The Court suggested that substantial evidence showed BaAez had conspired in fraudulent fee collections, leading to her illegal dismissal.

Issues of Procedural Due Process

The Court examined whether BaAez’s dismissal was valid, requiring evidence of serious misconduct as per Article 282 of the Labor Code. The findings concluded that substantial evidence indicated BaAez’s participation in fraudulent activities. Additionally, procedural due process was acknowledged, as BaAez had been provided several opportunities to defend herself during the administrative hearings, despite her non-attendance.

Evidence of Misconduct

Testimonies from various individuals corroborated the claims of fraudulent activities, emphasizing that BaAez had instructed students regarding fee payments that lacked proper receipt issuance. While BaAez denied involvement, her defense was deemed insufficient against the weight of the evidence gathered.

Conclusion on Dismissal Validity

The Court reaffirmed that the University acted lawfully i

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