Title
Philippine Airlines vs. Tongson
Case
G.R. No. 153157
Decision Date
Oct 14, 2003
PAL employee Tongson dismissed for extortion after assisting in processing travel documents; Supreme Court upheld dismissal, citing substantial evidence and relaxed labor case rules.

Case Summary (G.R. No. 153157)

Relevant Facts

On the evening of July 27, 1995, Jacqueline Tanedo and her family were at the Manila Station International to check in for flight No. 102. An employee, Joseph Arriola, approached Ms. Tanedo regarding the unpaid travel taxes. After receiving P2,000.00 from her, Arriola failed to issue a receipt, and although boarding passes were provided, they did not sit together on the flight. Consequently, Ms. Tanedo filed a complaint against both Arriola and Tongson after paying their travel taxes again on July 28, 1995.

Company Investigation and Findings

Following Tanedo's complaint, PAL conducted an investigation. Both Arriola and Tongson were charged under the company's Code of Discipline with corruption, extortion, and bribery. Despite being placed on preventive suspension, both employees initially failed to attend the hearings. Eventually, an inter-office memorandum resulted in their termination after evidence suggested their involvement in the alleged extortion.

Labor Arbiter's Decision

The Labor Arbiter’s decision, dated September 17, 1998, upheld the termination, finding Tongson guilty of serious misconduct for engaging in a conspiracy with Arriola to extort money from Ms. Tanedo. The Labor Arbiter emphasized that Tanedo's complaint substantiated the charges and established that both employees had acted in collusion, meriting dismissal under Article 282 of the Labor Code.

NLRC Ruling

Tongson appealed the Labor Arbiter’s decision to the National Labor Relations Commission (NLRC), which affirmed the Arbiter’s ruling on June 15, 1999. The NLRC found the termination justified based on the same evidence and reasoning.

Court of Appeals’ Decision

Upon further appeal, the Court of Appeals rendered a decision on August 24, 2001, reversing the NLRC's decision. The Court ruled that the evidence presented by PAL, largely based on the unverified complaint of Ms. Tanedo, did not fulfill the standard for substantial evidence. It deemed that her statements were hearsay, lacking the probative value needed to support the severity of the charges leading to dismissal.

Petitioner’s Arguments

PAL sought a review, arguing that the Appellate Court erred in its assessment of evidence and disregarded the unanimous findings of both the Labor Arbiter and the NLRC, which had independently corroborated the grounds for Tongson's termination based on established facts and procedural justice.

Supreme Court’s Rationale

The Supreme Court held that the nature of proceedings before the Labor Arbiter and NLRC is non-litigious, allowing for an evaluation based on position papers without the strict application of rules of evidence found in judicial courts. Th

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