Case Summary (G.R. No. 1523)
Facts of the Case
Cezar Durumpili David, Jr. served as the Service Manager for Buenaflor Car Services, Inc., overseeing daily operations, which included the authorization of checks, check vouchers, and purchase orders. The company's protocols involved purchase orders initiated by the Purchasing Officer, De Guzman, which required David's approval before being sent to suppliers. On August 8, 2013, a concerning report emerged regarding several checks issued by the company that included the phrase "OR CASH" after the payees' names, prompting an internal investigation. The Chief Finance Officer, Cristina S. David, alerted the firm's president about unauthorized alterations in the checks.
Investigation and Findings
The investigation revealed that Del Rosario, the Accounting Assistant, admitted to altering checks upon David's direction by inserting "OR CASH" into the existing documents. The inquiry later implicated De Guzman and another employee, Caranto, both of whom were believed to have actively participated in the scheme. Consequently, the employees faced preventive suspensions pending explanations related to their conduct connected to the issuance of a total of twenty-seven checks amounting to over P1 million.
Termination and Complaints
David denied any involvement, arguing he lacked authority over financial operations and asserting that any changes to checks should have been revealed to higher management, including Vasay and Buenaflor. Following administrative proceedings, David and his co-employees received termination notices due to alleged serious misconduct and a violation of the company's Code of Conduct. This termination led to a formal complaint for illegal dismissal to the National Labor Relations Commission (NLRC).
Initial Rulings
The Labor Arbiter ruled in favor of David, declaring his dismissal illegal, primarily due to insufficient evidence of conspiracy between the employees involved. However, the NLRC later identified that while De Guzman and Caranto's terminations were substantiated, David's termination remained without cause. The NLRC affirmed this via subsequent resolutions.
Court of Appeals Decision
Upon appeal, the Court of Appeals affirmed the NLRC's decision, concluding that extrajudicial confessions by other employees regarding their actions could not be used against David due to the hearsay rule. The CA further noted the lack of evidence proving David participated in fraudulent actions, leading them to maintain his reinstatement.
Supreme Court Ruling
The Supreme Court found merit in Buenaflor Car Services' petition, emphasi
...continue readingCase Syllabus (G.R. No. 1523)
Case Background
- The case involves a petition for review on certiorari filed by Buenaflor Car Services, Inc. (the petitioner) against Cezar Durumpili David, Jr. (the respondent).
- The petition seeks to challenge the Decision dated November 3, 2015, and the Resolution dated February 9, 2016, issued by the Court of Appeals (CA) in CA-G.R. SP No. 139652.
- The CA affirmed, with modifications, the Resolutions dated November 28, 2014, and February 9, 2015, of the National Labor Relations Commission (NLRC), which found the respondent to have been illegally dismissed.
Employment Details
- Respondent was employed as a Service Manager at Buenaflor Car Services, Inc., which operated under the trade name "Pronto! Auto Services."
- His responsibilities included overseeing day-to-day operations and he had the authority to sign checks, check vouchers, and purchase orders.
- A company policy required that all checks issued must be in the name of specific suppliers and not in "cash."
Incident Leading to Dismissal
- On August 8, 2013, a concern was raised when checks issued by the company were reported to have "OR CASH" written after the payee's name.
- An investigation was initiated after an inquiry from ChinaBank revealed irregularities with several checks.
- Del Rosario, the Accounting Assistant, confessed that she altered checks at the respondent’s instruction, inserting "OR CASH" after they were signed by authorized officers.
Findings and Consequences
- The investigation uncovered 27 checks with the "OR CASH" alteration, totaling P1,021,561.72, all signed by the respondent and others.
- Respondent denied any wrongdoin