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Far East Bank VS Chua 2C Salvador, Joshua Philippe S.

Lilia Chua was dismissed from her job at Far East Bank due to multiple fraudulent transactions in violation of the bank's code of conduct. The labor arbiter initially ruled in Chua's favor for illegal dismissal but the NLRC reversed this. On appeal, the CA reversed the NLRC's ruling saying Far East Bank did not perfect their appeal. The Supreme Court then ruled that the NLRC was correct to consider Far East Bank's appeal despite a delay in filing their position paper and that Chua's actions constituted loss of trust to justify terminating her employment, so there was no illegal dismissal.

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182 views2 pages

Far East Bank VS Chua 2C Salvador, Joshua Philippe S.

Lilia Chua was dismissed from her job at Far East Bank due to multiple fraudulent transactions in violation of the bank's code of conduct. The labor arbiter initially ruled in Chua's favor for illegal dismissal but the NLRC reversed this. On appeal, the CA reversed the NLRC's ruling saying Far East Bank did not perfect their appeal. The Supreme Court then ruled that the NLRC was correct to consider Far East Bank's appeal despite a delay in filing their position paper and that Chua's actions constituted loss of trust to justify terminating her employment, so there was no illegal dismissal.

Uploaded by

Phi Salvador
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Salvador, Joshua Philippe S.

2C

G.R. No. 187491

FAR EAST BANK AND TRUST COMPANY


VS
LILIA S. CHUA

TOPIC: Illegal Dismissal, Jurisdiction of the NLRC


FACTS:

Respondent Lilia S. Chua was dismissed by petitioner Far East Bank and Trust Company due
to a finding that she engaged in multiple kiting transactions which was a violation of Far East
Bank’s Code of Conduct. The labor arbiter ruled that there was illegal dismissal, but it was then
reversed by the NLRC. Chua then participated in the appeal proceedings before the NLRC. The
CA reversed the NLRC’s ruling and stated the Far East Bank and Trust Company has not
perfected their appeal.
Chua was employed as the Assistant Vice President of Far East Bank from October 1, 1997
until the termination of her employment. On July 1, 1999, Chua was terminated by Far East
Bank because she was found to be engaged in multiple kiting transactions, which are fraudulent
transactions which involves drawing out money from a bank account that does not have
sufficient funds to cover a check.
Chua then went to the NLRC Cotabato City. The NLRC ordered both parties to submit their
respective position papers, however, Far East Bank failed to do so even they were given an
extension to file it. The court ruled in favor of Chua but was then reversed upon the appeal of
Far East Bank.

ISSUES:
Whether or not there is illegal dismissal in the case?
RULING:
No, the National Labor Relations Commission Fifth Division issued a Resolution reversing and
setting aside the April 25, 2000 Decision of Executive Labor Arbiter Cueto. It held that Far East
Bank’s delay of "a few days" in filing its Position Paper was excusable, especially considering
that it and its counsel were based in different cities, Cotabato City and General Santos City,
respectively. It added that it was successfully shown by Far East Bank that Chua "had indeed
committed irregular acts in relation to his [sic] position as Assistant Vice President[ acts that
would constitute for loss of trust and confidence thereby justifying the termination of her
employment.

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