GR 182114; (April, 2010) (Digest)
G.R. No. 182114; April 5, 2010
GENESIS TRANSPORT SERVICE, INC. and RELY L. JALBUNA, Petitioners, vs. UNYON NG MALAYANG MANGGAGAWA NG GENESIS TRANSPORT (UMMGT), and JUAN TAROY, Respondents.
FACTS
Respondent Juan Taroy, a driver for petitioner Genesis Transport Service, Inc. on a commission basis, was dismissed on May 10, 2002, following an accident on April 20, 2002, after a company investigation found him guilty of reckless driving. Taroy filed a complaint for illegal dismissal, unfair labor practice, and refund of illegal deductions for tollgate fees taken from his earnings without his written authorization. The Labor Arbiter ruled the dismissal was for a just cause and with due process but ordered Genesis to refund the illegal toll fee deductions amounting to P5,273.16. Both parties appealed. The NLRC affirmed but deleted the attorney’s fees award. The Court of Appeals partly granted Taroy’s appeal, finding his preventive suspension exceeded 30 days, violating due process, and awarded him P30,000 in nominal damages while reinstating the refund order.
ISSUE
The core issues were: (1) whether the principle of res judicata applied to bar Taroy’s claim for refund of toll fee deductions based on prior NLRC rulings in favor of Genesis; and (2) whether Taroy was entitled to nominal damages for an alleged violation of due process in his preventive suspension.
RULING
The Supreme Court denied the petition, affirming the Court of Appeals with modification. On the first issue, the Court held res judicata did not apply. The elements of res judicata require a final judgment on the merits, rendered by a court of competent jurisdiction, and identity of parties, subject matter, and causes of action between the prior and present cases. Here, the prior NLRC cases cited by Genesis involved different drivers and distinct factual circumstances regarding toll fee deductions. Since there was no identity of parties and causes of action, the prior rulings could not bind Taroy’s separate claim.
On the second issue, the Court deleted the award of nominal damages. The appellate court erred in finding a due process violation from a preventive suspension exceeding 30 days. The rule requires the employer to act on the employee’s status within 30 days. Genesis complied by issuing the termination notice on May 10, 2002, well within the 30-day period from Taroy’s suspension on April 20, even if Taroy received the notice later on June 4, 2002. No delay was attributable to Genesis. Consequently, no statutory due process violation occurred to warrant nominal damages. The refund order for illegal deductions was sustained.