GR 167136; (December, 2005) (Digest)
G.R. No. 167136 December 14, 2005
DURBAN APARTMENTS CORPORATION (CITY GARDEN HOTEL-MAKATI), Petitioner, vs. MIGUEL GERALDITO R. CATACUTAN and NATIONAL LABOR RELATIONS COMMISSION, Respondents.
FACTS
Petitioner City Garden Hotel hired respondent Miguel Catacutan as Front Office Manager. On January 27, 2001, respondent, allegedly in an inebriated state, left his post for a drinking spree and later occupied a hotel room where a female employee visited him. The hotel’s security personnel reported the incident. When confronted, respondent allegedly admitted his infraction and asked for another chance. Petitioner’s president told him to resign effective the next day. Respondent, however, reported for work but was not allowed to perform his duties. He subsequently filed a complaint for illegal dismissal.
The Labor Arbiter ruled in favor of respondent, finding illegal dismissal. The NLRC modified the decision, finding that there was just cause for termination due to respondent’s violation of company rules and acts of immorality, but that he was not accorded due process. The Court of Appeals dismissed petitioner’s appeal due to procedural deficiencies, specifically the submission of mere photocopies of required documents and lack of an affidavit of service.
ISSUE
Whether the Court of Appeals erred in dismissing the petition based on procedural grounds, and whether respondent was validly dismissed.
RULING
The Supreme Court granted the petition, reversing the Court of Appeals. On procedural grounds, the Court applied a liberal construction of the rules, as the case involved a review of NLRC decisions affecting labor rights, and the procedural defects did not entirely hinder the proper resolution of the substantive issues.
On the merits, the Court upheld the NLRC’s finding of just cause for dismissal. Respondent, a managerial employee, violated company rules by abandoning his post for a drinking spree and committing acts of impropriety with a subordinate inside the hotel, which constituted serious misconduct and willful breach of trust. However, the Court agreed with the NLRC that petitioner failed to comply with the twin-notice requirement of due process under the Labor Code. The employer’s general manager admitted the non-compliance during cross-examination.
Applying the doctrine in Agabon v. NLRC, the Court ruled that where dismissal is for a just cause but procedural due process is not observed, the dismissal remains valid but the employer must pay nominal damages for the statutory violation. Consequently, the Court declared the dismissal valid but ordered petitioner to pay respondent the amount of Thirty Thousand Pesos (P30,000.00) as nominal damages.