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7/21/2019 SME Bank Inc. v.de Guzman-Et-Al
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ENBANCSME BANK INC., ABELARDO PSAMSON, OLGA SAMSON andAURELIO VILLAFLOR, JR.,Petitioners,
-versus-PEREGRIN T DE GUZMAN,EDUARDO M. AGUSTIN, JR.,ELICERIO GASPAR, , RICARDOGASPAR JR., EUFEMIA ROSETE,FIDEL ESPIRITU, SIMEONESPIRITU, JR., and LIBERATOMANGOBA, Respondents.X X
SME BANK INC., ABELARDO PSAMSON, OLGA SAMSON andAURELIO VILLAFLOR, JR.,Petitioners,
-versus-ELICERIO GASPAR, RICARDOGASPAR, JR., EUFEMIA ROSETE,FIDEL ESPIRITU, SIMEONESPIRITU, JR., and LIBERATOMANGOBA,
Respondents.
G R. No. 184517
G R. No. 186641Present:SERENO, CJCARPIO,VELASCO, JR.,LEONARDO-DE CASTRO,BRION,PERALTA,BERSAMIN,DEL CASTILLO,*ABAD,VILLARAMA, JR.,PEREZ,MENDOZA,*REYES,PERLAS-BERNABE, andLEONEN,JJPromulgated:October 8, 2013
x*Took no part. Concurred in the Court of Appeals Decision CA-G.R. SP No. 97510).**On lf JVP
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AFFIRMED.
SO ORDERED.OO
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7/21/2019 SME Bank Inc. v.de Guzman-Et-Al
18/20
Decision 8 GR. Nos. 184517 and 186641
reason of the unlawful dismissal, while separation pay provide[s] theemployee with the wherewithal during the period that he is looking for
I 9 } . . b . 1 fianother emp oyment. T ms, separatiOn pay s a proper su stltute on y orreinstatement; it is not an adequate substitute for both reinstatement andbackwages. 100 Hence, respondent employees are entitled to the grant of fullbackwages in addition to separation pay.
As to moral damages, exemplary damages and attorney's fees, weuphold the appellate court's grant thereof based on our finding that theforced resignations and retirement were fraudulently done and attended bybad faith.
WHEREFORE premises considered, the instant Petitions forReview are PARTIALLY GRANTED.The assailed Decision and Resolution of the Court of Appeals in CA-
G.R. SP No. 97510 dated 3 March 2008 and 1 September 2008,respectively, are hereby REVERSED and SET ASIDE insofar as it heldAbelardo P Samson Olga Samson and Aurelio Villaflor Jr. solidarilyliable for illegal dismissal.
The assailed Decision and Resolution of the Court of Appeals inCA-G.R. SP No. 97942 dated 5 January 2008 and 9 February 2009,respectively, are likewise REVERSED and SET ASIDE insofar as it heldAbelardo P Samson Olga Samson and Aurelio Villaflor Jr. solidarilyliable for illegal dismissal.
We REVERSE our ruling in Manlimos v NLR insofar as it upheldthai, in a stock sale, the buyer in good faith has no obligation to retain theemployees of the selling corporation, and that the dismissal of the affectedemployees is lawful even absent a just or authorized cause.
SO ORDERED.
99 ld. at 167.IOU fd
MARIA LOURDES P A. SERENOChief Justice
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7/21/2019 SME Bank Inc. v.de Guzman-Et-Al
19/20
Decision
WE CONCUR:
Associate Justice
Associate Justice
No part)MARIANO C. DEL CASTILLOAssociate Justice
On leave)MARTIN S. VILLARAMA, JR.Associate Justice
1 /pJOSE CATRAL MENllozAAssociate Justice
ESTELA \t[ >ERLAS-BERNABEAssociate Justice
9 GR Nos. 184517 and 186641
Associate Justice
ROBERTO A. ABADAssociate Justice
6vENIDO L. REYESAssociate Justice
Associate Justice
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7/21/2019 SME Bank Inc. v.de Guzman-Et-Al
20/20
Decision 20 G.R. Nos. 184517 and 186641
C E R T I F I C T I O N
Pursuant to Section 13 Article VIII of the Constitution I certify thatthe conclusions in the above Decision had been reached in consultationbefore the case was assigned to the writer of the opinion of the Court.
MARIA LOURDES P A SERENOhief Justice