MA. ANTHEA ROSE B. NEPOMUCENO2012-0567Labor Relations Set BAtty. Lorenzo

BRIGHT MARITIME CORPORATION (BMC)/DESIREE P. TENORIOvs.RICARDO B. FANTONIALG.R. No. 165935

FACTS: On January 15, 2000, a Contract of Employment was executed by petitioner Bright Maritime Corporation (BMC), a manning agent, and its president, petitioner Desiree P. Tenorio, for and in behalf of their principal, Ranger Marine S.A., and respondent Ricardo B. Fantonial, which contract was verified and approved by the Philippine Overseas Employment Administration (POEA) on January 17, 2000. The employment contract provided that respondent shall be employed as boatswain of the foreign vessel M/V AUK for one year, with a basic monthly salary of US$450, plus an allowance of US$220. The contract also provided for a 90 hours per month of overtime with pay and a vacation leave with pay of US$45 per month.

Respondent was made to undergo a medical examination at the Christian Medical Clinic, which was petitioners accredited medical clinic. Respondent was issued a Medical Certificate, dated January 17, 2000, which certificate had the phrase FIT TO WORK stamped on its lower and upper portion.

However, petitioners informed and delivered a ticket to said respondent stating that he will be departing on that same day. But at around 4:00 pm, petitioners' liaison officers went to the airport to tell respondent that there had been defects in his medical certificate which led to the cancellation of his travel on said date. As the respondent went back to Christian Medical Clinic, he found out, through the examining physician, that nothing was wrong with his medical; and, so he reported to petitioners' office yet the latter contend that they are having him lined up again at the ship's next port.

Since the respondent did not receive any call from the petitioner, he filed an illegal dismissal case, payment of salaries for the unexpired portion of the employment contract and for the award of moral, exemplary, and actual damages as well as attorneys fees before the Regional Arbitration Branch No. 7 of the NLRC in Cebu City.

ISSUE: Whether or not the employment contract was valid and the contention of herein respondent relative to his claim for damages can be affirmed?

HELD: YES. The employment contract is valid and already perfected from the time it was signed by both parties. However, be it noted that the petitioners had no just and valid cause for the immediate cancellation of the deployment of respondent; hence, petitioners should be liable for breach of contract, specifically, the actual, moral and exemplary damages.

It was proven that the medical certificate issued on 17 January 2000 had been stamped with fit to work. The alleged medical reasons for the cancellation of deployment, even though a medical certificate was issued on said date of departure of respondent, were not justified by the petitioners. Thus, the alleged medical reasons are deemed to have been tainted with bad faith to prevent the respondent from leaving.

Moral damages were awarded because the employers act was tainted with bad faith, considering that respondents Medical Certificate stated that he was fit to work on the day of his scheduled departure, yet he was not allowed to leave allegedly for medical reasons. Further, in the said case, exemplary damages was also imposed on the employer by way of example or correction for the public good in view of petitioners act of preventing respondent from being deployed on the ground that he was not yet declared fit to work on the date of his departure, despite evidence to the contrary. The Court added: x x x. Exemplary damages are imposed not to enrich one party or impoverish another, but to serve as a deterrent against or as a negative incentive to curb socially deleterious actions.