G.R. No. 84712 May 15, 1989
SEAHORSE MARITIME CORPORATION and SEAHORSE SHIPPING CORPORATION, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION, PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION and ROMEO C. SINGIAN, respondents.

FACTS

Petitioner corporations sought a review of the NLRC decision affirming the POEA’s finding that private respondent Romeo C. Singian, Chief Engineer of M/V “UNAMONTE,” was illegally dismissed. The vessel’s master, Josefino Peralta, discharged Singian on September 14, 1984, citing causes including drunkenness, insubordination, leaving the vessel without permission, and creating trouble by hitting a fellow crewmember. Logbook entries documented a fight on September 1, 1984, where Singian, apparently drunk, hit a crewman and ignored the master’s order to discuss the incident. A later entry noted Singian was “always under the influence of liquor,” left the vessel during the day, and returned drunk at night, prompting the master to repatriate him due to fear he would “create again trouble.”
The POEA and NLRC found the dismissal was executed without due process. Singian was not formally informed of the charges against him nor given an opportunity to be heard. Evidence showed the master deceived Singian into disembarking in Holland by showing a fake telex message suggesting he was being transferred to another vessel, when in truth he was being discharged for cause. The Seaman’s Certificate indicated discharge “with cause” but did not specify the reasons.

ISSUE

Whether or not Romeo C. Singian was illegally dismissed.

RULING

The Supreme Court granted the petition, modifying the NLRC decision. The Court held that while Singian’s dismissal was for just cause, it was effected without due process. The logbook entries, made by the master himself, substantiated the grounds of drunkenness, violent behavior, and insubordination. These acts constituted valid grounds for dismissal under the law. However, the employer failed to comply with the procedural requirements of termination under Article 277(b) of the Labor Code. Singian was not furnished a written notice stating the causes for termination and was not afforded a formal investigation or opportunity to defend himself. The manner of dismissal, involving deception with a fake telex, blatantly violated due process.
Consequently, while the dismissal was substantively valid, the procedural defect rendered the petitioners liable. Following the precedent in Wenphil Corporation vs. NLRC, the Court imposed an indemnity for the violation of due process. The NLRC award of salaries for the unexpired contract portion was set aside, as separation pay is not due when dismissal is for just cause. Petitioners were held solidarily liable to pay Singian his unpaid salary for September 1-14, 1984, and an indemnity of P1,000.00 for the procedural lapse. The decision underscores the dual requirement for a valid dismissal: a just or authorized cause and observance of due process.