G.R. No. 76272 - JARDINE DAVIES, INC., VS. THE NATIONAL LABOR RELATIONS COMMISSION, JARDINE DAVIES EMPLOYEES UNION (FFW) AND VIRGILIO REYES. D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, he was advised to go on an indefinite leave. This eventually led to his termination from employment on February 23, 1983. Meanwhile, all the materials seized by virtue of the search warrant issued were released by order of the same court in view of a petition filed by private respondent's younger brother, Donato Reyes. Apparently, the younger Reyes convinced the court that he was the legal tenant of the apartment complex searched and that all the materials seized are legally owned by him. He further proved that he was legally engaged in the business of general merchandising, operating under the trade name of Lubrix Conglomerate, a single proprietorship duly licensed by the government in dealing with oil and lubricant products. Furthermore, he presented the receipts covering the purchases of the seized Unoco products purposely for packing the same in small containers to be resold to the public. Relying on the foregoing facts, private respondent sued petitioner for illegal dismissal. But the Labor Arbiter, Manuel R. Caday, dismissed his complaint. In a Decision dated September 24, 1985, the labor arbiter stated that the apartment complex allegedly occupied by private respondent was indeed the situs of the illegal manufacture, blending and packaging of "Union 76" oil and lubricating products. Convinced that private respondent was personally involved in the aforementioned illegal activity, the labor arbiter ruled that the private respondent committed an act of serious misconduct, fraud or willful breach of trust reposed in him by petitioner, a just cause for terminating employment. [3] Private respondent appealed to the NLRC. In its Decision dated March 17, 1986, the NLRC reversed the labor arbiter's judgment on the ground that there is no cogent reason for petitioner to lose its trust and confidence on private respondent, there being "no shadow of an act amounting to serious misconduct, fraud or breach of trust" on the part of private respondent. The NLRC disposed of the case as follows: "WHEREFORE, premises considered, the Decision appealed from is hereby SET ASIDE and a new one entered ordering the respondent-appellee to reinstate complainant-appellant with full backwages without deduction or qualification whatsoever for earning elsewhere and without loss of seniority rights. SO ORDERED.