GR 198656; (September, 2014) (Digest)
G.R. No. 198656, September 8, 2014
Nancy S. Montinola, Petitioner, vs. Philippine Airlines, Respondent.
FACTS
Petitioner Nancy S. Montinola was a flight attendant for Philippine Airlines (PAL). On January 29, 2008, she and other crew members were subjected to custom searches in Honolulu, Hawaii. An email from a US Customs Supervisor listed Montinola among the crew involved, and another email listed items taken from crew members, but did not attribute specific items to individuals. PAL investigated and required Montinola to comment. She submitted a handwritten explanation denying she took anything. After a clarificatory hearing where her counsel objected to the lack of specificity in the charges, PAL found her guilty of violations and suspended her for one year without pay. Montinola filed a case before the Labor Arbiter, who found her suspension illegal, ordering reinstatement with backwages, and awarded moral damages (₱100,000), exemplary damages (₱100,000), and attorney’s fees. The National Labor Relations Commission (NLRC) affirmed. PAL appealed to the Court of Appeals, which affirmed the illegality of the suspension but deleted the awards for moral and exemplary damages and attorney’s fees. Montinola filed a partial motion for reconsideration, which was denied, prompting this petition.
ISSUE
Whether Montinola’s illegal suspension entitles her to an award of moral and exemplary damages and attorney’s fees.
RULING
Yes. The Supreme Court reinstated the awards for moral damages, exemplary damages, and attorney’s fees.
The Court held that illegally suspended employees, like illegally dismissed employees, are entitled to moral damages when the suspension is attended by bad faith, fraud, oppression, or is contrary to morals, good customs, or public policy. The Court found that PAL acted in bad faith. The investigation was arbitrary; Montinola was never specifically informed of what she allegedly pilfered, and the only evidence linking her was an email listing her name among those searched, with no individual inventory of items. PAL also violated its own rules by not uniformly applying penalties, as another involved employee was allowed to retire early without serving suspension. This discriminatory treatment constituted bad faith. The suspension caused Montinola mental anguish, serious anxiety, and tarnished her previously unblemished 12-year record, warranting moral damages. Exemplary damages were also proper to deter similar oppressive conduct by employers. Attorney’s fees were awarded under Article 2208(2) of the Civil Code, as Montinola was forced to litigate to protect her rights. The Court of Appeals decision was modified, reinstating the Labor Arbiter’s awards.