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the crew members.[22] Thus, for failure to observe the requirement of due process,
petitioners were held liable to indemnify respondent nominal damages.[23]
Both parties filed their respective motions for partial reconsideration, but both were
denied by the NLRC in a Resolution dated November 21, 2011.[24] Unsatisfied,
respondent elevated the matter to the CA via petition for certiorari.[25]
The CA Ruling
In its Decision[26] dated January 31, 2013, the CA found that the NLRC gravely abused
its discretion in holding that there was just cause for respondent's dismissal from
employment as the same is not supported by substantial evidence.[27] According to the
CA, the unnotarized Crew Behavior Report, which was the sole basis of the LA and
NLRC in holding that respondent was dismissed for just cause cannot be given credence
in the absence of any other corroborative evidence.[28] The CA further held that said
report, although signed by four (4) other crew members of the vessel, cannot be
considered credible because the charges against respondent were based on acts
witnessed only by Captain Buton.[29]
The CA also noted that the report cited only one case of incompetence and negligence
of respondent;[30] but the rules are explicit that negligence must not only be gross but
also habitual to warrant the employee's separation from employment.[31] The CA
further held that petitioners failed to show that the failure of respondent to observe
safety precautions during the mooring operations was willful and deliberate and that
respondent repeatedly committed mistakes or failed to perform his duties.[32]
As regards respondent's alleged intoxication, the CA found the same wanting of proof
and insufficient to warrant respondent's dismissal.[33] The CA noted that the Crew
Behavior Report indicated that respondent was caught drinking after his duty; Section
33(6), however, requires drunkenness to be committed while on duty to warrant the
dismissal of an employee.[34]
Lastly, the CA ruled that the award of attorney's fees of ten percent (10%) of the total
award is justified under Article 111 of the Labor Code.[35] However, the CA found no
basis for respondent's claim for moral and exemplary damages as there is absence of
clear and convincing proof that his dismissal was attended by fraud or bad faith.[36]
Thus the dispositive portion of the CA Decision reads:
WHEREFORE, the petition is granted and public respondent NLRC's Decision
dated September 15, 2011 and Resolution dated November 21, 2011 are set
aside. Petitioner's dismissal from employment is hereby declared illegal, and
private respondents are ordered to pay petitioner the unexpired portion of
his employment contract and attorney's fees of 10% of said award.
SO ORDERED.[37]
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