CASE: Allied Banking Corporation versus Court of Appeals

The case of Allied Banking Corporation versus the Court of Appeals seeks to review the
Decision held on April 27, 2000 regarding the illegal dismissal filed by their former
employee (private respondent) Potenciano Galanida. The private respondent was hired
by the Allied Banking Corporation and rose from accountant-book keeper to Assistant
Manager. With his stay in the Company he was promoted several times and has been
transferred from several branches from Bohol, Dumaguete and Cebu.

Effecting the rotation of movement, the ABC listed the respondent as second in the order
of priority of assistant managers to be assigned outside Cebu having been stationed in
Cebu for 7 years already. The respondent manifested his refusal to be transferred to
Bacolod City citing reason of parental obligation, expenses and anguish that would result
if he is away from his family. He filed complaint before the Labor Arbiter for constructive
dismissal.

Subsequently the ABC informed him that he was ordered to report to Tagbilaran City
Branch. He then refused. The bank then warned the respondent through a letter (June
13, 1994) stating that his refusal is penalized under the Bank’s Employee Policy and
Procedure (Article XII – penalty may range from suspension to dismissal).

He replied to the letter and state there that it will fortify his complaint pending at NLRC,
he also charged ABC with discrimination and favoritism in ordering his transfer.

The private respondent the received an inter-office memo (September 1, 1994) that the
bank terminated his services and considered whatever benefit he is entitled.

RULING OF LABOR ARBITER

After several hearings, the LA held that ABC abused its management prerogative. The
LA also gave credence to Galanida’s claim that his transfer will be prejudicial and will
incur him additional expenses, thus, the dispositive portion of the LA Decision ordered
the ABC to pay complainant the aggregate amount of 324,000.00 (Separation, Quarter
Bonus, 13th Month Pay, Refund Contribution of Provident Fund)

RULING OF NLRC

On appeal, the NLRC likewise ruled that ABC terminated Galanida without just cause.
The NLRC also stated that no hearing was conducted and dismissed Galanida in bad
faith, thus ordered the bank to pay a total of 1,264,933.33 (Separation Pay, backwages,
proportional 13th month pay, refund of Provident Fund Contribution, moral damages,
exemplary damages)

The CA then AFFIRMED the ruling of the NLRC and dismissed the petition of ABC.
The ABC appealed the appellate decision.
ISSUES

 Whether under the facts presented there is legal basis in petitioner’s exercise of
its management prerogative
 Whether private respondent’s violations of company rules constitute a
ground to warrant the penalty of dismissal (or is he illegally dismissed)
 Whether under the facts presented, there is legal basis to hold ABC afforded
private respondent the required due process
 Whether under the facts, there is legal basis to hold that private respondent cannot
recover any monetary award

The SC RULING

The petition is partly meritorious.

Whether Galanida was dimissed for just cause, the Court accord great weight with the
factual finding of CA when they affirm the findings of the NLRC. The private respondent
is well aware of the company policy regarding its transferring of employees to its different
branches.

WHEREFORE the Decision of CA and NLRC is AFFIRMED with modification thus the
case is REMANDED to the Labor Arbiter for the recomputation.