G.R. No. 177680 January 13, 2016
JENNIFER C. LAGAHIT, Petitioner, vs. PACIFIC CONCORD CONTAINER LINES/MONETTE CUENCA (BRANCH MANAGER), Respondents.

FACTS

Petitioner Jennifer C. Lagahit was hired by respondent Pacific Concord Container Lines (Pacific Concord), a cargo forwarding company, in February 2000 as an Account Executive/Marketing Assistant. She was promoted to Sales Manager in January 2002 with a monthly salary of P25,000.00 and provided with a company vehicle. On November 8, 2002, while she was out for client calls, she received a text message from respondent Monette Cuenca, the Branch Manager, stating: “TODAY U R OFFICIALY NT CONNECTED WITH US.” Cuenca also sent a text to Lagahit’s husband demanding the immediate return of the company car. Pacific Concord disseminated notices to clients and published in a newspaper that Lagahit was no longer connected with the company as of that date. Lagahit sent a letter on November 13, 2002, seeking settlement of benefits and noting a lack of due process. Cuenca replied on November 25, 2002, listing Lagahit’s uncollected accounts and stating the company was withholding her monies until collection. Lagahit filed a complaint for constructive dismissal on November 26, 2002. The respondents denied termination, claiming there were valid grounds for dismissal due to Lagahit’s alleged betrayal of trust, including using the company vehicle for personal interest, failing to meet sales quotas, enticing a co-employee to resign, applying for other jobs during office hours, soliciting for a competitor, receiving personal commissions, and illegally diverting containers. They asserted she voluntarily resigned on November 13, 2002. The Labor Arbiter ruled in favor of Lagahit, finding illegal dismissal and awarding separation pay and backwages. The NLRC affirmed with modification, ordering separation pay and backwages until the finality of its decision. The Court of Appeals reversed the NLRC, finding sufficient justifications for termination due to disloyalty and willful breach of trust but held that due process was not observed, awarding Lagahit nominal damages of P25,000.00 instead.

ISSUE

Whether the Court of Appeals erred in reversing the NLRC’s finding of illegal dismissal and in holding that there was a valid cause for termination but a denial of due process.

RULING

The Supreme Court denied the petition and affirmed the decision of the Court of Appeals. The Court held that the respondents established by substantial evidence the existence of a valid cause for dismissing Lagahit due to loss of trust and confidence. As a Sales Manager, she held a position of trust and confidence. Her acts, which included persistently applying for employment with competitors during office hours, enticing a subordinate to join her, actually rendering services for competing companies for a fee while still employed, and referring clients to competitors, constituted willful breach of trust and disloyalty detrimental to the company’s interests. However, the Court agreed with the CA that the respondents failed to comply with the twin requirements of substantive and procedural due process. The dismissal was effected via a text message without giving Lagahit the opportunity to explain her side. Consequently, while the dismissal was for a just cause, the manner of dismissal was illegal due to lack of due process. The award of nominal damages in the amount of P25,000.00 was proper for the violation of her right to procedural due process. The CA’s decision was affirmed.