G.R. No. 208459 February 15, 2017
JULIETA B. STA. ANA, Petitioner, vs. MANILA JOCKEY CLUB, INC., Respondent

FACTS

Petitioner Julieta B. Sta. Ana was employed as an off-track betting teller by respondent Manila Jockey Club, Inc. (MJCI) since 1977. In late 2008, MJCI discovered a massive cash shortage in its Treasury Department. An internal audit revealed unaccounted check remittances amounting to over ₱44 million from one branch. MJCI’s investigation implicated its cashier, Josephine Tejada, in unauthorized lending of corporate funds to employees. MJCI subsequently charged Sta. Ana with dishonesty, malversation, and engaging in anomalous transactions, alleging she conspired with Tejada in this unauthorized lending scheme using company money. Sta. Ana denied the accusations, asserting her personal lending business, funded from her own assets like bank deposits and a fishing venture, existed long before the new management and was conducted independently. MJCI found her guilty, stating she used corporate funds with Tejada’s assistance and committed gross negligence, leading to her dismissal in February 2009 for loss of trust and confidence.

ISSUE

Whether Sta. Ana was illegally dismissed, specifically, whether MJCI had valid and legal grounds to dismiss her on the basis of loss of trust and confidence.

RULING

Yes, Sta. Ana was illegally dismissed. For dismissal based on loss of trust and confidence to be valid, the breach must be willful, founded on clearly established facts, and the employee concerned must hold a position of trust. The Court found MJCI’s evidence insufficient to prove Sta. Ana’s participation in the misappropriation of corporate funds. Her admission of operating a personal lending business does not, by itself, establish that she used company money or conspired with Tejada. MJCI relied heavily on circumstantial evidence and failed to present direct, substantial proof linking Sta. Ana’s personal loans to the corporate shortages. The charge that she used a company personnel as a messenger during office hours, without more, does not constitute fraud or willful breach of trust warranting dismissal. As a teller, she held a fiduciary position, but the employer must prove the misconduct by substantial evidence. MJCI did not meet this burden. Consequently, her dismissal was without just cause. The Supreme Court reversed the Court of Appeals and NLRC, ordering MJCI to pay Sta. Ana full backwages, separation pay in lieu of reinstatement, moral and exemplary damages, and attorney’s fees.