G.R. No. L-17780; August 24, 1962
Eugenio Nadura, plaintiff-appellant, vs. Benguet Consolidated, Inc., defendant-appellant.

FACTS

Eugenio Nadura was employed as a miner by Benguet Consolidated, Inc. from September 20, 1951, to December 18, 1959. Due to occasional asthma attacks, he was laid off on December 18, 1959, without receiving any separation pay. His daily wage at the time was P4.24. Nadura filed an action in the Court of First Instance of Baguio to recover separation pay under Republic Act No. 1787, amounting to P440.96, plus attorney’s fees and damages.
Benguet, in its answer, contended that Nadura’s asthma was an illness analogous to the just causes for dismissal without separation pay enumerated in Section 1 of Republic Act No. 1787. Alternatively, it argued that if separation pay were due, computation should only start from the law’s effectivity on June 21, 1957. The parties submitted the case for judgment on the pleadings. The trial court ruled in favor of Nadura for separation pay but denied his claims for attorney’s fees and exemplary damages. Both parties appealed the respective unfavorable portions of the decision.

ISSUE

The core issue is whether an employee’s illness (asthma) constitutes a just cause for dismissal without separation pay under the “analogous causes” clause of Republic Act No. 1787. Subsidiary issues are whether Nadura is entitled to attorney’s fees and exemplary damages.

RULING

The Supreme Court ruled in favor of Nadura. On the main issue, the Court held that illness is not a just cause for dismissal without separation pay under Republic Act No. 1787. The law enumerates specific just causes, such as serious misconduct, gross neglect, fraud, or commission of a crime, all of which involve voluntary or willful acts by the employee. Nadura’s asthma, an involuntary health condition, is not analogous to any of these enumerated causes. The Court emphasized that interpreting the law to include illness would be contrary to elementary fairness, especially for a loyal employee of over eight years.
Regarding the ancillary claims, the Court awarded attorney’s fees to Nadura. Under Article 2208 of the Civil Code, such fees are recoverable in actions for the recovery of wages of laborers. Benguet’s unfounded resistance to a valid claim forced Nadura to litigate. The Court also awarded exemplary damages. Benguet’s dismissal of Nadura without the required notice or pay, and its subsequent baseless defense, constituted a wanton act that public policy seeks to discourage. The decision modified the trial court’s judgment, affirming the award of separation pay but adding awards of P300 as attorney’s fees and P1,000 as exemplary damages.