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Stradcom vs Orpilla, GR 206800, July 2, 2018

8/26/2024

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 DOCTRINE
 It i s  well-settled  that  a  corporation  has i ts  own l egal  personality  separate  and  distinct  from  those  of i ts  stockholders,  directors  or  officers.  Absent  any  evidence  that  a  corporate  officer  and/or  director  has  exceeded  their  authority,  or  their  acts  are  tainted  with  malice  or  bad  faith,  they  cannot  be  held  personally l iable  for  their  official  acts.  Here,  there  was  neither  any  proof  that  Chua  acted  without  or i n  excess  of  his  authority  nor  was  motivated  by  personal i ll-will  towards  the  respondent to be solidarily liable with the company.
​
 FACTS:
 Joyce  Anabelle  L.  Orpilla  (respondent)  was  employed  by  Stradcom  as  Human  Resources  Administration  Department  (HRAD)  Head,  under  a  probationary  status  for  six  months.  Chua,  the  President  and  Chief  Executive  Officer  (CEO)  of  Stradcom, i ssued  a  Memorandum  addressed  to  the  Chief  Operating  Officer  (COO),  Ramon  G.  Reyes  (Reyes),  and  Chief  Financial  Officer  (CPO),  Raul  C.  Pagdanganan  (Pagdanganan),  announcing  the  reorganization  of  the  HRAD.  After  the  turn-over  of  the  documents  and  equipment  of  HRAD,  respondent i nquired f rom  Chua  as  to her status in the light of the said reorganization.
 Chua,  on  the  other  hand,  replied  that  the  management  has l ost i ts  trust  and  confidence i n  her  and i t  would  be  better i f  she  resigned.  Respondent  protested  the  resignation  and i nsisted  that i f  there  were  charges  against  her,  she  was  open  for  formal i nvestigation.  Chua,  however,  was  not  able  to  come  up  with  any  charges.  On  January  13,  2003,  per  advice  of  Atty.  Pilapil,  respondent  reported  for  work  but  the  guards  refused  her  entry  and  advised  her  to  take  a l eave  of  absence.  Respondent  filed  a  complaint  for  constructive  dismissal  with  monetary  claims of backwages, attorney's fees and damages.
 LA  ruled  that  respondent  was i llegally  dismissed  and  Chua i s  solidarily l iable  with  Stradcom  for  the  payment  of  the  monetary  awards  to  respondent which the NLRC reversed. CA reversed NLRC.

 ISSUE:  Whether Chua must be held solidarily liable (NO)

 RULING:
 The  solidary l iability  of  Chua  as  a  corporate  officer i s  not  proper  and  must  be  recalled.  It i s  well-settled  that  a  corporation  has i ts  own l egal  personality  separate  and  distinct  from  those  of i ts  stockholders,  directors  or  officers.  Absence  of  any  evidence  that  a  corporate  officer  and/or  director  has  exceeded  their  authority,  or  their  acts  are  tainted  with  malice  or  bad  faith,  they  cannot  be  held  personally l iable  for  their  official  acts.  Here,  there  was  neither  any  proof  that  Chua  acted  without  or i n  excess  of  his  authority  nor  was  motivated  by  personal i ll-will  towards  respondent  to  be  solidarily l iable  with  the  company.  We  quote  with  affirmation  the  NLRC's  pronouncement,  viz:  Finally,  on  the i ssue  of  whether  or  not  the  Labor  Arbiter  committed  manifest  error i n  ordering  appellant  Chua  solidarily l iable  with  appellant  corporation,  we  have  to  rule i n  the  affirmative.  Appellant  Chua  cannot  be  made  solidarily l iable  with  appellant  corporation  for  any  award i n f avor  of  appellee.  Appellant  corporation i s  separate  and  distinct f rom  Appellant  Chua.
 x  x  x  x  Appellant  Chua's  acts  were  official  acts,  done i n  his  capacity  as  an  officer  of  appellant  corporation  on i ts  behalf.  There i s  no  showing  of  any  act,  or  that  he  acted  without  or i n  excess  of  his  authority  or  was  motivated  by  personal i ll-will  toward  appellee.  Stated  simply,  appellant  Chua  was  merely  doing  his j ob.  In  fact,  he  even  tried  to  save  appellee  from undue embarrassment 
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