G.R. No. 190436 ; January 16, 2012
NORMAN YABUT, Petitioner, vs. MANILA ELECTRIC COMPANY and MANUEL M. LOPEZ, Respondents.

FACTS

Petitioner Norman Yabut was employed by respondent Manila Electric Company (Meralco) from February 1989 until his dismissal on February 5, 2004, serving as a Branch Field Representative at the Malabon Branch Office. His duties included conducting service application surveys, testing electric meters, and investigating consumer violations.
The dismissal stemmed from an incident where Meralco’s Inspection Office reported an illegal service connection at Yabut’s residence in Bocaue, Bulacan. The inspection on October 3, 2003, discovered shunting wires installed on the meter base of his disconnected electric service (SIN 708668501), allowing power transmission despite disconnection for non-payment of bills. Meralco issued a notice on November 3, 2003, charging Yabut with dishonesty under Section 7(3) of the Company Code on Employee Discipline (penalized by dismissal) and for serious misconduct, fraud, breach of trust, and analogous causes under Article 282 of the Labor Code.
In his sworn statement during the company investigation, Yabut admitted being the registered customer and that his service was disconnected in July 2003 for unpaid bills. He claimed he had arranged for payment of his outstanding bills on the morning of October 3, 2003, prior to being informed of the inspection. He denied installing the shunting wires, stating he obtained electricity from a neighbor’s line, and claimed he was not always at the residence. Meralco’s investigation memorandum dated December 30, 2003, found Yabut guilty based on the physical evidence, his wife’s alleged spontaneous admission that he installed the wires, and his failure to identify the responsible party. The memorandum concluded that, as the registered customer and resident with technical knowledge, he installed the illegal connection. Consequently, Meralco issued a notice of dismissal on February 4, 2004.
Yabut filed a complaint for illegal dismissal and monetary claims. The Labor Arbiter ruled in his favor, ordering reinstatement and payment of backwages. The National Labor Relations Commission (NLRC) affirmed this decision. However, the Court of Appeals (CA) reversed the NLRC, upholding Yabut’s dismissal as valid. The CA found substantial evidence of Yabut’s guilt, giving credence to the wife’s admission and noting his failure to rebut the presumption that he, as the customer and occupant, was responsible for the illegal connection. Yabut elevated the case to the Supreme Court via a petition for review on certiorari.

ISSUE

Whether the Court of Appeals erred in ruling that petitioner Norman Yabut was validly dismissed from employment.

RULING

The Supreme Court DENIED the petition and AFFIRMED the Decision of the Court of Appeals. The dismissal of Norman Yabut was held to be valid.
The Court ruled that the employer, Meralco, sufficiently substantiated the charge of dishonesty with substantial evidence. Yabut, as a Meralco field representative with knowledge of illegal connections, was the registered customer and resident of the premises where the shunting wires were found on his disconnected meter. His defense—that he used a “flying connection” from a neighbor and was unaware of the shunting—was deemed implausible given his technical expertise and the fact that the illegal device was installed on his own meter base within his property. The Court found no reason to disturb the CA’s assessment, which gave credence to the wife’s alleged admission as recounted in the investigation report. Yabut’s failure to positively identify who installed the wires, coupled with his clear motive to have electricity due to his family’s needs, led to the conclusion that he committed the dishonest act. The offense constituted a willful breach of the trust reposed in him by his employer, a ground for dismissal under Article 282(c) of the Labor Code. The procedural due process requirements of notice and hearing were also satisfied, as Yabut was informed of the charges, investigated, and allowed to present his defense.