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 Seahorse Maritime Corporation employed private respondent Romeo C. Singian as Chief Engineer of the M/V “UNAMONTE.” On September 14, 1984, Master Josefino Peralta discharged Singian and repatriated him to the Philippines. The stated causes for dismissal were drunkenness, repeatedly leaving the vessel, insubordination, and creating trouble by hitting a fellow crewmember. The vessel’s logbook entries documented a fight on September 1, 1984, where Singian, apparently drunk, hit a crewman and turned down the Master’s order to discuss the incident. A later log entry noted Singian was “always under the influence of liquor” for several days, leaving the ship during the day and returning drunk at night, prompting the Master’s decision to repatriate him due to insubordination and drunkenness, fearing he would create more trouble.
However, the POEA and NLRC found the dismissal procedurally flawed. Singian was not formally informed of the charges against him nor given an opportunity to be heard. Instead, the Master showed Singian a fake telex message to deceive him into believing he was being called home for reassignment to another vessel. The Seaman’s Certificate indicated discharge “with cause” but did not specify the reasons. The dismissal was executed secretly, and Singian was not investigated.

ISSUE

Whether or not Romeo C. Singian was illegally dismissed.

RULING

The Supreme Court ruled that while Singian’s dismissal was for a just cause, it was effected without due process. The logbook entries substantiated the grounds of drunkenness, violent behavior, and insubordination, which constitute valid reasons for termination under the law. The Master’s fear of a violent reaction justified the cautious manner of disembarkation but did not excuse the procedural lapse.
Nevertheless, the employer failed to comply with the mandatory twin-notice requirement and hearing under Article 277(b) of the Labor Code. Singian was not furnished a written notice stating the causes for termination and was not afforded ample opportunity to defend himself. The use of deception with a fake telex and the lack of a formal investigation constituted a denial of due process. Consequently, following the precedent in Wenphil Corporation vs. NLRC, the dismissal for just cause is upheld, but the employer is liable for indemnity due to the procedural defect. Singian is not entitled to salaries for the unexpired portion of his contract or separation pay, but only to his unpaid salary for September 1-14, 1984, and indemnity of P1,000 for the violation of his right to due process. The petitioners, as manning agent and shipowner, are held solidarily liable for these amounts.