Rolando Ds.

Torres
v.
Rural Bank Of San Juan, Inc.
G.R. No. 184520
March 13, 2013

Facts:

This is a case of illegal dismissal filed by Torres who is an employee of the Rural Bank of
San Juan. He was dismissed by the respondent on the ground of loss of trust and confidence
when he signed a clearance of Mr. Jacinto, which cleared the latter of his financial
accountabilities. The Court ordered pecuniary awards to the petitioner.

Issue: Whether or not the directors of the bank is solidarily liable with the bank corporation for
the awards entitled to Mr. Torres.

Ruling:

No. A corporation has its own legal personality separate and distinct from those of its
stockholders, directors, or officers. Hence, absent any evidence that they have exceeded their
authority, corporate officers are not personally liable for their official acts. Corporate directors
and officer may be held liable solidarily with the corporation for the termination of employment
only if done with malice or bad faith.