BARBA v.

LICEO DE CAGAYAN UNIVERSITY

November 28, 2012
Villarama Jr., J.

FACTS

Dr. Ma. Mercedes L. Barba was Dean of the College of Physical Therapy of
respondent University (Liceo), a private educational institution at Carmen,
CDO; Barba had been working for Liceo on July 8 93 as a medical
officer/school physician up to March 31 1994
On July 94 she was chosen to be the recipient of a scholarship grant for a 3year residency training in Rehab Medicine at Veterans Memorial Medical
Center, w/ the Contract providing that after the study/training the scholar
would serve the school in whatever position the latter chooses for 10 years
Barba completed the residency on June 97 and was appointed as acting
Dean of said college as well as Doctor-In-Charge of the Rehab Clinic of the
City Memorial Hospital; her appointment for Doctor-In-Charge was renewed
on June 19 2002
Barba would be reappointed as Dean on June 19 2002 but on the school year
for 2003-04 the College suffered a dramatic decline in enrollees from over 1k
in 1996 to 29 students for the year; only 20 for 2005
Due to this decline Liceo chose to freeze the Colleges operations indefinitely
and Barba went on leave without pay; the University would sent Barba a
letter dated April 27 2005 instructing her to return to work and report to the
Acting Dean of the College of Nursing (Ma. Chona Palomares) to receive her
teaching load and assignment as a full-time faculty member in that
department
Barba did not report and instead requested for the processing of her
separation benefits in view of her Colleges closure; another letter was sent to
Barba but she still refused to return
Liceo sent Barba a notice of termination on the ground of abandonment to
which the latter filed a complaint before the labor arbiter (LA) for illegal
dismissal, payment of separation pay and retirement benefits
Barba: transfer to Nursing as a faculty member = demotion amounting to
constructive dismissal; Liceo: Barba not terminated, that it was her time as
Dean that expired, that her transfer does not count as constructive dismissal
since it is without loss of rights or diminution of pay and shes still
contractually bound til 2007
LA: Barba was NOT constructively dismissed since the transfers not
tantamount to a demotion; NLRC: REVERSE, there was constructive dismissal
when she was assigned to Nursing as she goes from Dean to professor
CA: NLRC ruling REVERSED, as Barba is Liceos corporate officer as her
appointment to dean was thru the Board of Directors approval, provided in
Liceos Supplemental Petition; further ruled that jurisdiction over the case is
with the regular courts and not with the labor tribunals
CA would reverse its earlier ruling

ISSUE + RATIO:

W/N the LA and NLRC had jurisdiction? YES

Corporate officers are elected/appointed by the directors/stockholders, and

are those whore ggiven that character either by the Corporation Code or by
its by-laws. S. 25 (Corp. Code) enumerates these officers as the president,
the secretary, the treasurer and such others as may be provided for in the bylaws.
Matling Industrial and Commercial Corporation v. Coros: such officers as may
be provided for in the by-laws has been clarified conformably with S. 25, a
position must be expressly mentioned in the By-Laws in order to be
considered as a corporate office. The rest of the corporate officers
could be considered only as employees of subordinate officials.
An assiduous perusal of these documents doesnt convince the Court that
Barba occupies a corporate position, as in Liceos by-laws, there are 4 officers
specifically mentioned (president, VP, secretary and treasurer). Also its
provided that there shall be other appointive officials (College Director, Dept.
Heads) whose compensations, powers and duties shall be determined by the
board of directors. A College Dean is NOT among the corporate officers
mentioned; Barba was not directly elected/appointed by the board to any
corporate office but merely approved by the board with the other academic
deans in accordance with the procedure desvribed in the Universitys Admin.
Manual. Thus, Barba is an EMPLOYEE.

W/N Barba was constructively dismissed? NO

Barbas letter of appointment specifically appointed her as Dean of Physical

Therapy and Doctor-In-Charge of the Rehab Clinic for a period of 3 years
effective July 1 2002 unless sooner revoked for valid cause(s).
Barbas appointment as Dean was for a fixed term, subject to reappointment
and revocation or termination for valid cause
When Liceo decided to close down the College of Physical Therapy, Barbas
appointment as its Dean was validly revoked and her subsequent assignment
as professor in Nursing was justified as it is still related to her scholarship
studies in Physical Therapy
Particularly, for a transfer not to be considered a constructive
dismissal, the employer must be able to show that such transfer is
not unreasonable, inconvenient, or prejudicial to the employee