CHINA BANKING CORPORATION vs MARIANO M.

BORROMEO

G.R. No. 156515

Doctrine: Management has the prerogative to discipline its employees and to

impose appropriate penalties on erring workers pursuant to company rules and
regulations.

Facts:

Mariano M. Borromeo joined the petitioner Bank on June 1, 1989 as Manager

assigned at the latters Regional Office in Cebu City. From 1989 to 1996, he was
promoted several times until he became Assistant Vice-President, Branch Banking
Group for the Mindanao area. Prior to his last promotion and then unknown to the
petitioner Bank, the respondent, without authority from the Executive Committee or
Board of Directors, approved several DAUD/BP accommodations amounting to
P2,441,375 in favor of Joel Maniwan, with Edmundo Ramos as surety. DAUD/BP is
the acronym for checks Drawn Against Uncollected Deposits/Bills Purchased. Such
checks, which are not sufficiently funded by cash, are generally not honored by
banks. A total of ten out-of-town checks of various dates amounting to P2,441,375
were returned unpaid. It was later on that the Bank learned about the transactions
and found out that the accommodations exceeded the limit granted to clients, and
were granted without proper prior approval and already past due.