G.R. No. 186019 ; March 29, 2010
WHITE DIAMOND TRADING CORPORATION and/or JERRY UY and JESSIE UY, Petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION, NORLITO ESCOTO, MARY GRACE PASTORIL and MARIA MYRNA OMELA, Respondents.

FACTS

Petitioner White Diamond Trading Corporation, owned by Jerry Uy with Jessie Uy as President, employed respondents Norlito Escoto (salesman), Maria Myrna Omela (assistant secretary), and Mary Grace Pastoril (secretary). On February 28, 2004, Escoto sold a Toyota Town Ace to Teodoro Abejar Aquino for ₱200,000.00. Aquino paid ₱200,000.00 in cash to Omela, who issued an official receipt for that amount. Pastoril then handed Aquino the Deed of Sale, which indicated the purchase price as ₱190,000.00. The duplicate copy of the receipt retained by the company also showed ₱190,000.00. The company discovered the discrepancy, investigated, and terminated the employment of Escoto, Omela, and Pastoril on March 8, 2004. The employees filed a complaint for illegal dismissal. The Labor Arbiter dismissed the complaint, finding fraud. The NLRC affirmed the dismissal of Escoto and Omela but ruled Pastoril was illegally dismissed, finding no proof of her participation in the fraud, and awarded her backwages and separation pay. The NLRC also awarded nominal damages to Escoto and Omela for procedural due process violations. The Court of Appeals affirmed the NLRC decision. Petitioners elevated the case, contesting only the finding that Pastoril was illegally dismissed.

ISSUE

Whether the Court of Appeals erred in affirming the NLRC decision which found that respondent Mary Grace Pastoril had been illegally dismissed and awarded her backwages and separation pay.

RULING

The Supreme Court GRANTED the petition, SET ASIDE the assailed CA decision and resolution with respect to Mary Grace Pastoril, and CONFIRMED her valid dismissal. The Court found that Pastoril conspired with Escoto and Omela in defrauding the company. The evidence showed she prepared and handed the Deed of Sale reflecting ₱190,000.00 to Aquino immediately after he paid ₱200,000.00 in her presence. Her act of preparing a deed with a lower price, while knowing the actual amount paid, constituted participation in the fraudulent scheme. The Court held that conspiracy could be inferred from her overt acts in conjunction with those of her co-employees. However, the Court also found that the company failed to observe procedural due process in her dismissal. Consequently, while her dismissal was for a just cause (fraud or willful breach of trust), the company was ORDERED to pay her nominal damages of ₱10,000.00 for the procedural lapse.