Title
LBC Express - Metro Manila, Inc. vs. Mateo
Case
G.R. No. 168215
Decision Date
Jun 9, 2009
Employee dismissed for gross negligence after failing to secure company motorcycle, causing significant loss; SC upheld dismissal, citing just cause and procedural due process.

Case Summary (G.R. No. 57883)

Incident and Initial Investigation

On April 30, 2001, Mateo parked his motorcycle outside LBC's Escolta office while delivering packages and failed to lock the steering wheel, citing his concern for the packages instead. Upon returning within a few minutes, he discovered that the motorcycle was stolen, prompting him to report the loss to both his employer and the police. As a result of the incident, LBC summoned Mateo for an explanation and subsequently conducted a formal investigation.

Labor Arbiter's Decision

Following the investigation, LBC issued Mateo a notice of termination dated May 30, 2001. Mateo contested the dismissal, arguing it was illegal and filed a complaint seeking back wages and reinstatement. The labor arbiter, however, ruled in favor of LBC, declaring that Mateo's conduct constituted gross negligence—an essential ground for lawful termination under the Labor Code.

Appeal to the NLRC

Mateo appealed the labor arbiter's ruling to the National Labor Relations Commission (NLRC), which upheld the initial decision, affirming that Mateo's actions were indeed negligent. The NLRC concluded that Mateo's failure to secure the motorcycle contributed significantly to LBC's loss.

Court of Appeals Ruling

In a subsequent appeal to the Court of Appeals (CA), the court found that Mateo's dismissal was illegal, citing a lack of due process in the termination process. The CA held that LBC failed to adequately inform Mateo of the charges against him and did not follow proper procedural requirements for dismissal.

Supreme Court's Analysis of Gross Negligence

LBC and Niao sought a reversal of the CA's ruling, arguing that Mateo's gross negligence warranted termination even without habituality. The Supreme Court concurred, emphasizing that gross negligence involves a blatant lack of care and a conscious disregard for duties, which Mateo exhibited by failing to lock the motorcycle despite explicit company instructions. The Court noted that the loss of a motorcycle valued at P46,000 constituted a significant detriment to the employer.

Conclusion on Procedural Due Process

The Supreme Court also addressed concerns regarding procedural due process in Mateo's dismissal. The Court found that the memorandum initiating the investig

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