RICHARD N. RIVERA v. GENESIS TRANSPORT SERVICE, INC. AND RIZA A.

MOISES

FACTS:
Rivera was employed by Genesis Transport Service, Inc. (Genesis) as a bus conductor
assigned to the Cubao-Baler, Aurora route. Riza Moises is the President and General Manager
of Genesis.
Rivera acknowledged in his Position Paper before the Labor Arbiter that he was
dismissed by Genesis on account of a discrepancy in the amount he declared on bus ticket
receipts. Genesis gave him a Memorandum to explain within twenty-four (24) hours why he
should not be sanctioned for reporting and remitting the amount of P198.00 instead of the
admittedly correct amount of P394 worth of bus ticket receipts. Rivera responded that it was an
honest mistake, which he was unable to correct “because the bus encountered mechanical
problems.” Despite Rivera’s explanations, he was terminated through a written notice.
Rivera filed a complaint for illegal dismissal against Genesis and Riza Moises. Labor
Arbiter Gaudencio Demaisip dismissed the complaint and gave credence to the gravity of
Rivera’s act of not declaring the amount of bus ticket receipts and failing to remit the correct
amount. The NLRC and CA affirmed the decision of LA Demaisip.

ISSUE:
Whether or not Riza Moises should be personally liable with Genesis if Rivera was illegally
terminated by Genesis. (NO)
RULING:
As a rule, corporate directors and officers are not liable for the illegal termination of a
corporation’s employees. It is only when they acted in bad faith or with malice that they became
solidarily liable with the corporation.
In Ever Electrical Manufacturing, Inc. (EEMI) v. Samahang Manggagawa ng Ever
Electrical, this court clarified that "[b]ad faith does not connote bad judgment or negligence; it
imports a dishonest purpose or some moral obliquity and conscious doing of wrong; it means
breach of a known duty through some motive or interest or ill will; it partakes of the nature of
fraud."
Rivera, in this case, has not produced proof to show that Moises acted in bad faith or
with malice as regards the termination of his employment. Thus, she did not incur any personal
liability.