Title
Vivo vs. Philippine Amusement and Gaming Corp.
Case
G.R. No. 187854
Decision Date
Nov 12, 2013
PAGCOR employee dismissed for misconduct; claimed due process violation. SC upheld CA, ruling procedural due process observed, right to counsel not required, defects cured by appeal.
dismissed employee
administrative proceeding
requirements of due process

Case Summary (G.R. No. 187854)

Factual Background

The petitioner was employed by PAGCOR since September 9, 1986 and served as Managing Head of its Gaming Department at the time of the events. On February 21, 2002 Teresita S. Ela, Senior Managing Head of PAGCOR’s Human Resources Department, notified the petitioner in writing that he was being administratively charged with gross misconduct, rumor-mongering, conduct prejudicial to the interest of the company, and loss of trust and confidence, and advised him to submit a written explanation; the same communication placed him under preventive suspension. The petitioner’s counsel protested the propriety of the show-cause memorandum and the preventive suspension.

Administrative Proceedings at PAGCOR

PAGCOR’s Corporate Investigation Unit (CIU) summoned the petitioner to an administrative inquiry on March 15, 2002. The petitioner requested that the inquiry be held at his residence, and the CIU complied. During the inquiry the petitioner’s statement was taken in question-and-answer form, and he was furnished a memorandum of charges that recited the accusations against him and identified the acts and omissions alleged. The memorandum of charges was said to be based on statements of PAGCOR personnel with personal knowledge, but PAGCOR declined to furnish copies of those witness statements, asserting that the petitioner had sufficient opportunity to confront and answer the charges during the inquiry. The petitioner submitted his written answer on March 26, 2002. The CIU forwarded its investigation report to PAGCOR’s Adjudication Committee, which summoned the petitioner for a conference on May 8, 2002. The petitioner’s counsel sought a rescheduling because he could not attend, but the Adjudication Committee denied the request on the ground that counsel’s presence was not necessary. The Board of Directors resolved to dismiss the petitioner at its May 14, 2002 meeting and PAGCOR communicated that decision to the petitioner by letter dated May 15, 2002; the petitioner’s motion for reconsideration was subsequently denied.

Proceedings before the Civil Service Commission

After exhausting internal remedies at PAGCOR, the petitioner appealed his dismissal to the Civil Service Commission (CSC). In its resolution dated April 11, 2007 the CSC found that the petitioner’s right to due process had been violated because he was ousted without the corresponding Board Resolution that should have reflected the collegial decision of PAGCOR’s Board of Directors. The CSC accordingly set aside the letters of May 15, 2002 and June 5, 2002 issued by Ela and remanded the case to PAGCOR with instructions to complete reinvestigation within three months. PAGCOR’s motion for reconsideration before the CSC was denied, and PAGCOR appealed the CSC resolution to the Court of Appeals.

Proceedings before the Court of Appeals

The Court of Appeals reviewed the administrative record and reversed the CSC on February 27, 2009. The CA concluded that the petitioner had been accorded procedural due process by PAGCOR. The CA therefore set aside the CSC resolutions and remanded the case to the CSC to determine the petitioner’s appeal on the merits, specifically whether the dismissal had been for cause. The CA denied the petitioner’s motion for reconsideration by resolution dated May 11, 2009.

Issues Presented

The petitioner maintained that the CA erred in concluding that his right to due process was not violated, arguing that PAGCOR’s failure to furnish copies of the Board Resolutions that purportedly authorized his dismissal was a fatal defect and that PAGCOR’s refusal to reschedule the Adjudication Committee meeting denied him the right to counsel and thus violated due process. The petitioner also contended that the CA’s reversal of the CSC contradicted the Uniform Rules on Administrative Cases in the Civil Service and settled jurisprudence.

Petitioner's Contentions

The petitioner alleged two principal defects: first, that PAGCOR did not furnish him the Board Resolutions referenced in Ela’s memorandum and thus his dismissal lacked the necessary collegial approval; and second, that PAGCOR improperly refused to permit his counsel to attend the Adjudication Committee conference by denying a rescheduling request, thereby depriving him of his right to be represented and to due process.

Respondent's Position and Proceedings on Appeal

PAGCOR maintained before the CA, and the CA found, that the petitioner had been given the substantive elements of procedural due process. PAGCOR relied on the record showing the February 21, 2002 notice of charges, the CIU inquiry, the memorandum of charges served on the petitioner, the petitioner’s written answer, the opportunity to appear before the Adjudication Committee, and the notice of the Board’s decision to dismiss. The CA thus treated any absence of copies of board resolutions as not negating the existence or effect of those resolutions and remanded the case to the CSC to resolve the merits of whether the dismissal was for cause.

Supreme Court Ruling and Disposition

The Supreme Court denied the petition for review on certiorari and affirmed the Court of Appeals decision promulgated February 27, 2009. The Court ordered the CSC to proceed to determine the petitioner’s appeal on the merits, particularly whether the dismissal had been for cause. The Court further ordered the petitioner to pay the costs of suit.

Legal Basis and Reasoning

The Court reiterated that the essence of procedural due process is the opportunity to be heard and that administrative due process does not always require a trial-type hearing or strict application of technical rules. Citing precedent, including Ledesma v. Court of Appeals, the Court explained that due process in administrative proceedings is satisfied when a person is notified of the charge against him and given a reasonable opportunity to explain or defend himself. The Court found that the petitioner actively participated throughout the investigation: he received written notice of the charges, was summoned and interviewed by the CIU at his residence, was furnished the memorandum of charges, submitted a written answer, had an opportunity to appear before the Adjudication Committee, and received notice of the Board’s decision to dismiss. The Court held that these elements met the twin-notice requirement and cons

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