he offe ; i m be plain, neq i ocal, ncondi ional, and

i ho a iance of an o f om he p opo al. A q alified

accep ance, o one ha in ol e a ne p opo al, con i e a
co n e -offe and i a ejec ion of he o iginal offe . Con eq en l ,
hen ome hing i de i ed hich i no e ac l ha i p opo ed
in he offe , ch accep ance i no fficien o gene a e

OL. 301, JAN AR 21 1999 571

Pe e .C fA ea
* FIRST DI ISION.
572 S PREME CO RT REPORTS ANNOTATED
ABS-CBN B adca C a .C fA ea
5 3
*
G.R. No. 128690. Jan ar 21, 1999.

ABS-CBN BROADCASTING CORPORATION, pe i ioner, . 301, A A 21 1999 573

. HONORABLE COURT OF APPEALS, REPUBLIC
BROADCASTING CORP., VIVA PRODUCTIONS, INC., ABS-CBN B adca i g C ai .C fA eal
and VICENTE DEL ROSARIO, responden s.
con en beca e an modifica ion o a ia ion f om he e m of
he offe ann l he offe .
C La ; C a ; A a a
Sa ; Sa ;A a a O ;W a ;T P a
a a a . The fi a a a a a a
, . .,
i e ho ld be e ol ed again ABS-CBN. A con ac i a a a a a
mee ing of mind be een o pe on he eb one bind him elf . ABS-CBN eliance in
o gi e ome hing o o ende ome e ice o ano he fo a L a S M , I . . C A a and V
con ide a ion. The e i no con ac nle he follo ing eq i i e R a C a .B a , I ., i mi placed. In he e ca e ,
conc : (1) con en of he con ac ing pa ie ; (2) objec ce ain i a held ha an accep ance ma con ain a eq e fo ce ain
hich i he bjec of he con ac ; and (3) ca e of he change in he e m of he offe and e be a binding accep ance
obliga ion, hich i e abli hed. A con ac nde goe h ee a long a i i clea ha he meaning of he accep ance i
age : (a) p epa a ion, concep ion, o gene a ion, hich i he po i i el and neq i ocall o accep he offe , he he ch
pe iod of nego ia ion and ba gaining, ending a he momen of eq e i g an ed o no . Thi ling a , ho e e , e e ed in
ag eemen of he pa ie ; (b) pe fec ion o bi h of he con ac , he e ol ion of 29 Ma ch 1996, hich led ha he accep ance
hich i he momen hen he pa ie come o ag ee on he e m of an offe m be nq alified and ab ol e, . ., i m be
of he con ac ; and (c) con mma ion o dea h, hich i he iden ical in all e pec i h ha of he offe o a o p od ce
f lfillmen o pe fo mance of he e m ag eed pon in he con en o mee ing of he mind .
con ac . C a La ; Ca C ; B a D ;
Sa ; Sa ; C a a a a a a U C a , C a
. O C , a ,
a a ,
a a a a B aD . H , B a a
a , a , a a a a a a a
. Con ac ha a e con en al in na e a e pe fec ed a a a . Unde he Co po a ion Code, nle
pon me e mee ing of he mind . Once he e i conc ence o he i e p o ided b aid Code, co po a e po e , ch a he
be een he offe and he accep ance pon he bjec ma e , po e o en e in o con ac , a e e e ci ed b he Boa d of
con ide a ion, and e m of pa men a con ac i p od ced. The Di ec o . Ho e e , he Boa d ma delega e ch po e o ei he
offe m be ce ain. To con e he offe in o a con ac , he an e ec i e commi ee o official o con ac ed manage . The
accep ance m be ab ol e and m no q alif he e m of delega ion, e cep fo he e ec i e commi ee, m be fo
 pecific p po e . Delega ion o office make he la e agen of damage ma like i e be eco e ed fo lo o impai men of
he co po a ion; acco dingl , he gene al le of agenc a o he ea ning capaci in ca e of empo a o pe manen pe onal
binding effec of hei ac o ld appl . Fo ch office o be inj , o fo inj o he plain iff b ine anding o
deemed f ll clo hed b he co po a ion o e e ci e a po e of he comme cial c edi . The claim of RBS fo ac al damage did no
Boa d, he la e m peciall a ho i e hem o do o. Tha Del a i e f om con ac , q a i-con ac , delic , o q a idelic . I a o e
Ro a io did no ha e he a ho i o accep ABS-CBN co n e - f om he fac of filing of he complain de pi e ABS-CBN alleged
offe a be e idenced b hi bmi ion of he d af con ac o kno ledge of lack of ca e of ac ion.
VIVA Boa d of Di ec o fo he la e app o al. In an e en , Sa ; Sa ; Sa ; I a a a
he e a be een Del Ro a io and Lope III no mee ing of , a a a a
mind . a a a . I
C La ; C a ; Da a ;E a a ma f he be ob e ed ha in ca e he e a i of p elimina
a , a a a a a inj nc ion i i ed, he damage hich he defendan ma ffe
b ea on of he i a e eco e able f om he inj nc i e bond. In
5 4 hi ca e, ABS-CBN had no e filed he eq i ed bond; a a
ma e of fac , i a ked fo ed c ion of he bond and e en en o
he Co of Ap-

574 C A A D 5 5

ABS-CBN B adca i g C ai .C fA eal

a a a . . 301, A A 21 1999 575

We find fo ABS-CBN on he i e of damage . We hall fi
ake p ac al damage . Chap e 2, Ti le XVIII, Book IV of he ABS-CBN B adca i g C ai .C fA eal
Ci il Code i he pecific la on ac al o compen a o damage .
E cep a p o ided b la o b ip la ion, one i en i led o peal o challenge he o de on he ma e . Clea l hen, i a
compen a ion fo ac al damage onl fo ch pec nia lo no nece a fo RBS o file a co n e bond. Hence, ABS-CBN
ffe ed b him a he ha d l p o ed. The indemnifica ion hall canno be held e pon ible fo he p emi m RBS paid fo he
comp ehend no onl he al e of he lo ffe ed, b al o ha co n e bond.
of he p ofi ha he obligee failed o ob ain. In con ac and Sa ; Sa ; Sa ; T a a a
q a i-con ac he damage hich ma be a a ded a e a a a a a a a
dependen on he he he obligo ac ed i h good fai h o a a . A ega d
o he i e. In ca e of good fai h, he damage eco e able a e a o ne fee , he la i clea ha in he ab ence of ip la ion,
ho e hich a e he na al and p obable con eq ence of he a o ne fee ma be eco e ed a ac al o compen a o
b each of he obliga ion and hich he pa ie ha e fo e een o damage nde an of he ci c m ance p o ided fo in A icle
co ld ha e ea onabl fo e een a he ime of he con i ion of 2208 of he Ci il Code. The gene al le i ha a o ne fee
he obliga ion. If he obligo ac ed i h f a d, bad fai h, malice, o canno be eco e ed a pa of damage beca e of he polic ha
an on a i de, he hall be e pon ible fo all damage hich no p emi m ho ld be placed on he igh o li iga e. The a e no
ma be ea onabl a ib ed o he non-pe fo mance of he o be a a ded e e ime a pa in a i . The po e of he
obliga ion. In c ime and q a i-delic , he defendan hall be co o a a d a o ne fee nde A icle 2208 demand
liable fo all damage hich a e he na al and p obable fac al, legal, and eq i able j ifica ion. E en hen a claiman i
con eq ence of he ac o omi ion complained of, he he o no compelled o li iga e i h hi d pe on o o inc e pen e o
ch damage ha e been fo e een o co ld ha e ea onabl been p o ec hi igh , ill a o ne fee ma no be a a ded he e
fo e een b he defendan . no fficien ho ing of bad fai h co ld be eflec ed in a pa
Sa ; Sa ; Sa ; A a a a a pe i ence in a ca e o he han an e oneo con ic ion of he
a a a a a igh eo ne of hi ca e.
a a a , Sa ; Sa ; Sa ;M a a a a a a
a a a . Ac al a a a a a a a
 a a a . Mo al ci c m ance ; in q a i-delic , if he defendan ac ed i h g o
damage a e in he ca ego of an a a d de igned o compen a e negligence; and in con ac and q a icon ac , if he defendan
he claiman fo ac al inj ffe ed and no o impo e a ac ed in a an on, f a d len , eckle , opp e i e, o male olen
penal on he ongdoe . The a a d i no mean o en ich he manne .
complainan a he e pen e of he defendan , b o enable he Sa ; Sa; Sa ; Ba Fa ; Ma a a a
inj ed pa o ob ain mean , di e ion, o am emen ha ill A 19, 20, a 21. Ma a a a
e e o ob ia e he mo al ffe ing he ha nde gone. I i aimed a a a a a
a he e o a ion, i hin he limi of he po ible, of he a .S a a
pi i al a a , and ho ld be p opo iona e o he . I ma be ei e a ed ha he claim of RBS again
ffe ing inflic ed. T ial co m hen g a d again he ABS-CBN i no ba ed on con ac , q a i-con ac , delic , o
a a d of e o bi an damage ; he ho ld e e ci e balanced q a i-delic . Hence, he claim fo mo al and e empla damage
e ained and mea ed objec i i o a oid picion ha i a can onl be ba ed on A icle 19, 20, and 21 of he Ci il Code. The
d e o pa ion, p ej dice, o co p ion on he pa of he ial elemen of ab e of igh nde A icle 19 a e he follo ing: (1)
co . he e i ence of a legal igh o d , (2) hich i e e ci ed in bad
Sa ; Sa ; Sa ; T a a a a a a fai h, and (3) fo he ole in en of p ej -dicing o inj ing
a a a a a , a a a ano he . A icle 20 peak of he gene al anc ion fo all o he
a a a a , a p o i ion of la hich do no e peciall p o ide fo hei o n
, , . I a , , anc ion; hile A icle 21 deal i h ac a , and
a a a a , a ha he follo ing elemen : (1) he e i an ac hich i legal, (2)
b hich i con a o mo al , good c om, p blic o de , o
p blic polic , and (3) and i i done i h in en o inj e. Ve il
5 6 hen, malice o bad fai h i a he co e of A icle 19, 20, and 21.
Malice o bad fai h implie a con cio and in en ional de ign o
do

576 C A A D 5

ABS-CBN B adca i g C ai .C fA eal

a a . The a a d of mo al damage canno be . 301, A A 21 1999 577

g an ed in fa o of a co po a ion beca e, being an a ificial
pe on and ha ing e i ence onl in legal con empla ion, i ha no ABS-CBN B adca i g C ai .C fA eal
feeling , no emo ion , no en e . I canno , he efo e, e pe ience
ph ical ffe ing and men al ang i h, hich can be e pe ienced a ongf l ac fo a di hone p po e o mo al obliq i . S ch
onl b one ha ing a ne o em. The a emen in P . m be b an ia ed b e idence.
Ma and Ma a L C . . PNB ha a co po a ion Sa ; Sa ; Sa ; T a a a
ma eco e mo al damage if i ha a good ep a ion ha i a a a a a a ,
deba ed, e l ing in ocial h milia ion i an . On a a a a a
hi co e alone he a a d fo damage m be e a ide, ince a .I a a a a ,
RBS i a co po a ion. a a a. The e i no adeq a e p oof ha
Sa ; Sa ; Sa ; T a a a a a ABS-CBN a in pi ed b malice o bad fai h. I a hone l
S 5, C a 3, T XVIII, B IV C C . The con inced of he me i of i ca e af e i had nde gone e io
ba ic la on e empla damage i Sec ion 5, Chap e 3, Ti le nego ia ion c lmina ing in i fo mal bmi ion of a d af
XVIII, Book IV of he Ci il Code. The e a e impo ed b a of con ac . Se led i he le ha he ad e e e l of an ac ion
e ample o co ec ion fo he p blic good, in addi ion o mo al, doe no make he ac ion ongf l and bjec he ac o o
empe a e, liq ida ed, o compen a o damage . The a e damage , fo he la co ld no ha e mean o impo e a penal on
eco e able in c iminal ca e a pa of he ci il liabili hen he he igh o li iga e. If damage e l f om a pe on e e ci e of
c ime a commi ed i h one o mo e agg a a ing a igh , i i a a a.
PETITION for re ie or cer iorari of a decision of he Vi a, h o gh defendan Del Ro a io, offe ed ABS-CBN,
Co r of Appeals. h o gh i ice-p e iden Cha o San o -Concio, a li of h ee (3)
film package (36 i le) f om hich ABS-CBN ma e e ci e i
The fac s are s a ed in he opinion of he Co r . igh of fi ef al nde he afo e aid ag eemen (E h . 1 pa .
Ga ca c La Off ce for pe i ioners. 2, 2, 2-A and 2-B -Vi a). ABS-CBN, ho e e h o gh M .
Pe af & Pe e La Off ce a d Be , G , E a, Concio, can ick off onl en (10) i le (f om he li ) e can
Pa e , A c & L c a for Rep blic Broadcas ing p cha e (E h. 3 -Vi a) and he efo e did no accep aid li
S s em, Inc. (TSN, J ne 8, 1992, pp. 9-10). The i le icked off b M . Concio
Be , Na c , Cad a, J e e , G ae & a e no he bjec of he ca e a ba e cep he film Maging Sino
L a a for VIVA Prod c ions and V. del Rosario Ka Man.
Fo f he enligh enmen , hi ejec ion le e da ed Jan a
DAVIDE, JR., C.J.: 06, 1992 (E h. 3 -Vi a) i he eb q o ed:

In his pe i ion for re ie on ce a , pe i ioner ABS- 6 Jan ar 1992

CBN Broadcas ing Corp. (hereaf1 er ABS-CBN) seeks o Dear Vic,
re erse and se2 aside he decision of 31 Oc ober 1996 and This is no a er formal b siness le er I am ri ing o o
he resol ion of 10 March 1997 of he Co r of Appeals in as I o ld like o e press m diffic l in recommending
CA- he p rchase of he hree film packages o are offering
ABS-CBN.
___________________

1 Per Adef in-De la Cr , J., i h Lan in and Ta ao-Jag ros, JJ., ___________________

conc rring; Rollo, 49-60.

3 Per J dge Efren N. Ambrosio; Rollo, 134-161.
2 Rollo, 62.
57

57
OL. 301, JAN AR 21 1999 579
578 S PREME CO RT REPORTS ANNOTATED ABS-CBN B adca C a .C f
ABS-CBN B adca C a .C fA ea A ea

G.R. CV No.3 44125. The former affirmed i h modifica ion From among he hree packages I can onl ick off 10
he decision of 28 April 1993 of he Regional Trial Co r i les e can p rchase. Please see a ached. I hope o
(RTC) of Q e on Ci , Branch 80, in Ci il Case No. Q-92- ill nders and m posi ion. Mos of he ac ion pic res
12309. The la er denied he mo ion o reconsider he in he lis do no ha e big ac ion s ars in he cas . The
decision of 31 Oc ober 1996. are no for prime- ime. In line i h his I ish o
The an eceden s, as fo nd b he RTC and adop ed b men ion ha I ha e no sched led for elecas se eral
he Co r of Appeals, are as follo s: ac ion pic res in o r er firs con rac beca se of he
cheap prod c ion al e of hese mo ies as ell as he
In 1990, ABS-CBN and Vi a e ec ed a Film E hibi ion lack of big ac ion s ars. As a film prod cer, I am s re
Ag eemen (E h. A ) he eb Vi a ga e ABS-CBN an e cl i e o nders and ha I am r ing o sa as Vi a
igh o e hibi ome Vi a film . Some ime in Decembe 1991, in prod ces onl big ac ion pic res.
acco dance i h pa ag aph 2.4 [ ] of aid ag eemen a ing ha In fac , I o ld like o req es o (2) addi ional r ns for
hese mo ies as I can onl sched le hem in o r non-
prime ime slo s. We ha e o co er he amo n ha as
1.4 ABS-CBN ha ha e he gh ff ef a he e e -f
paid for hese mo ies beca se as o er ell kno
(24) V a f f TV e eca de ch e a a be ag eed
ha non-prime ime ad er ising ra es are er lo .
b he a e he e , ded, h e e , ha ch gh ha be
These are he naired i les in he firs con rac .
e e c ed b ABS-CBN f he ac a ffe g.
1. Kon ra Persa [ c]
 2. Raider Pla oon o he hand, Del Ro a io denied ha ing made an ag eemen i h
3. Undergro nd g erillas Lope ega ding he 14 Vi a film ; denied he e i ence of a
napkin in hich Lope o e ome hing; and in i ed ha ha
4. Tiger Command
he and Lope di c ed a he l nch mee ing a Vi a film
5. Bo de Sabog package offe of 104 film (52 o iginal and 52 e- n ) fo a o al
6. Lad Commando p ice of P60 million. M . Lope p omi ing [ ] o make a co n e
7. Ba ang Ma adero p opo al hich came in he fo m of a p opo al con ac Anne C
8. Rebel on of he complain (E h. 1 -Vi a; E h. C -ABS-CBN).
On Ap il 06, 1992, Del Ro a io and M . G aciano Go on of RBS
I hope o ill consider his req es of mine. Senio ice-p e iden fo Finance di c ed he e m and
The o her drama ic films ha e been offered o s before and condi ion of Vi a offe o ell he 104 film , af e he ejec ion of
ha e been rejec ed beca se of he r ling of MTRCB o he ame package b ABS-CBN.
ha e hem aired a 9:00 p.m. d e o heir er ad l On Ap il 07, 1992, defendan Del Ro a io ecei ed h o gh hi
hemes. ec e a , a hand i en no e f om M . Concio, (E h. 5 -Vi a),
As for he 10 i les I ha e choosen [ c] from he 3 packages hich ead : He e he d af of he con ac . I hope o find
please consider incl ding all he o her Vi a mo ies e e hing in o de , o hich a a ached a d af e hibi ion
prod ced las ear. I ha e q i e an a rac i e offer o ag eemen (E h. C -ABS-CBN; E h. 9 -Vi a, p. 3) a co n e -
make. p opo al co e ing 53 film , 52 of hich came f om he li en b
Thanking o and i h m armes regards. defendan Del Ro a io and one film a added b M . Concio, fo
(Signed) a con ide a ion of P35 million. E hibi C p o ide ha ABS-
Charo San os-Concio CBN i g an ed film igh o 53 film and con ain a igh of fi
ef al o 1992 Vi a Film . The aid co n e p opo al a
On Feb a 27, 1992, defendan Del Ro a io app oached ABS- ho e e ejec ed b Vi a Boa d of Di ec o [in he] e ening of
CBN M . Concio, i h a li con i ing of 52 o iginal mo ie i le he ame da , Ap il 7, 1992, a Vi a o ld no ell an hing le
( . . no e ai ed on ele i ion) incl ding he 14 i le bjec of han he package of 104 film fo P60 million pe o (E h. 9 -
he p e en ca e, a ell a 104 e- n (p e io l ai ed on Vi a), and ch ejec ion a ela ed o M . Concio.
ele i ion) f om hich ABS-CBN ma choo e ano he 52 i le , a On Ap il 29, 1992, af e he ejec ion of ABS-CBN and
a o al of 156 follo ing e e al nego ia ion and mee ing defendan Del
Ro a io and
5 0
5 1

580 C A A D
ABS-CBN B adca i g C ai .C fA eal . 301, A A 21 1999 581
ABS-CBN B adca i g C ai .C fA eal
i le , p opo ing o ell o ABS-CBN ai ing igh o e hi
package of 52 o iginal and 52 e- n fo P60,000,000.00 of Vi a P e iden Te e i a C , in con ide a ion of P60 million,
hich P30,000,000.00 ill be in ca h and P30,000,000.00 o h of igned a le e of ag eemen da ed Ap il 24, 1992, g an ing RBS
ele i ion po (E h . 4 o 4-C -Vi a; 9 -Vi a). he e cl i e igh o ai 104 Vi a-p od ced and/o acq i ed film
On Ap il 2, 1992, defendan Del Ro a io and ABS-CBN (E h. 7-A -RBS; E h. 4 -RBS) incl ding he fo een (14) film
4
gene al manage , E genio Lope III, me a he Tama ind G ill bjec of he p e en ca e.
Re a an in Q e on Ci o di c he package p opo al of
Vi a. Wha an pi ed in ha l nch mee ing i he bjec of On 27 Ma 1992, ABS-CBN filed before he RTC a
conflic ing e ion . M . Lope e ified ha he and M . Del complain for specific performance i h a pra er for a ri
Ro a io allegedl ag eed ha ABS-CBN a g an ed e cl i e of preliminar inj nc ion and/or emporar res raining
film igh o fo een (14) film fo a o al con ide a ion of P36 order agains5 pri a e responden s Rep blic Broadcas ing
million; ha he allegedl p hi ag eemen a o he p ice and Corpora ion (hereaf er RBS), Vi a Prod c ions (hereaf er
n mbe of film in a napkin and igned i and ga e i o M . Del VIVA), and Vicen e del Rosario. The complain as
Ro a io (E h. D; TSN, pp. 24-26, 77-78, J ne 8, 1992). On he docke ed as Ci il Case No. Q-92-12309.
 On 28 Ma 61992, he RTC iss ed a emporar As he par ies failed o en er in o an amicable
res raining order enjoining pri a e responden s from se lemen , RBS pos ed on 1 Oc ober 1992 a co n erbond, 13
proceeding i h he airing, broadcas ing, and ele ising of hich he RTC appro ed in i s Order of 15 Oc ober 1992.
he fo r een VIVA films s bjec of he con ro ers , s ar ing On 19 Oc ober
14
1992, ABS-CBN filed a mo ion for
i h he film Ma S Ka Ma , hich as sched led reconsidera ion of he 3 15 A g s and 15 Oc ober 1992
o be sho n on pri a e responden RBS channel 7 a se en Orders, hich RBS opposed. 16
o clock in he e ening of said da e. On 29 Oc ober 1992, he RTC cond c ed a pre- rial.
On 17 J ne 1992, af er appropria e proceedings, he Pending resol ion of i s mo ion for reconsidera ion, 1
RTC iss ed an order direc ing he iss ance of a ri of ABS-CBN filed i h he Co r of Appeals a pe i ion
preliminar inj nc ion pon ABS-CBN s pos ing of a P35 challenging he RTC s Orders of 3 A g s and 15 Oc ober
million bond. ABS-CBN mo ed for he red c ion of he 1992 and pra ing for he iss ance of a ri of preliminar
bond, hile pri a e responden s mo ed for reconsidera ion inj nc ion o
of he order and offered o p p a co n erbond.
______________________
_________________
10 Id., 177-183 (VIVA and Del Rosario); 222-228 (RBS).
4 RTC Decision, Rollo, 146-149. 11 Id., 331-332.
5 This sho ld be Rep blic Broadcas ing S s em, no GMA Ne ork, 12 Id., 369.
Inc., pon appro al b he Sec ri ies and E change Commission of he 13 Id., 397.
change in corpora e name on 20 Febr ar 1996. 14 Id., 398-402, 403-404.
6 Vol. 1, Original Record (OR), Ci il Case No. Q-92-12309, 27-28. 15 Id., 406-409.
Hereaf er, OR shall refer o he record of his case. 16 Id., 453-454.
Vol. 1, OR, 170-173. 1 Vol. 2, OR, 465-484.
Vol. 1, OR, 217-220.
5 3
Id., 184-216.

5 2
OL. 301, JAN AR 21 1999 583
ABS-CBN B adca C a .C fA ea
582 S PREME CO RT REPORTS ANNOTATED
ABS-CBN B adca C a .C fA ea enjoin he RTC from enforcing said orders. The case as
docke ed as CA-G.R. SP No. 29300.
In he mean ime, pri a 10 e responden s filed separa e On 3 No ember 1992, he 1Co r of Appeals iss ed a
ans ers i h co n erclaim. RBS also se p a cross-claim emporar res raining order o enjoin he airing,
agains VIVA. 11
broadcas ing, and ele ising of an or all of he films
On 3 A g s 1992, he RTC iss ed an order dissol ing in ol ed in he con ro ers .
he ri of preliminar inj nc ion pon he pos ing b RBS On 18 December1 1992, he Co r of Appeals
of a P30 million co n erbond o ans er for ha e er prom lga ed a decision dismissing he pe i ion in CA-G.R.
damages ABS-CBN migh s ffer b ir e of s ch SP No. 29300 for being prema re. ABS-CBN challenged
dissol ion. Ho e er, i red ced pe i ioner s inj nc ion he dismissal in a pe i ion for re ie filed i h his Co r
bond o P15 million as a condi ion preceden for he on 19 Jan ar 1993, hich as docke ed as G.R. No.
reins a emen of he ri of preliminar inj nc ion sho ld 108363.
pri a e responden 12
s be nable o pos a co n erbond. In he mean ime he RTC recei ed he e idence for he
A he pre- rial on 6 A g s 1992, he par ies, pon par ies in Ci il Case No. Q-92-12309.20
Thereaf er, on 28
s gges ion of he co r , agreed o e plore he possibili of April 1993, i rendered a decision in fa or of RBS and
an amicable se lemen . In he mean ime, RBS pra ed for VIVA and agains ABS-CBN disposing as follo s:
and as gran ed reasonable ime i hin hich o p pa
P30 million co n erbond in he e en ha no se lemen WHEREFORE, nde cool eflec ion and p e cinding f om he
o ld be reached. fo egoing, j dgmen i ende ed in fa o of defendan and
again he plain iff. challenged decision and he case had become moo and
academic in ie of he dismissal of he main ac ion b he
(1) The complain i he eb di mi ed. co r a in i s decision of 28 April 1993.
(2) Plain iff ABS-CBN i o de ed o pa defendan RBS he Aggrie ed b he RTC s decision, ABS-CBN appealed o
follo ing: he Co r of Appeals claiming ha here as a perfec ed
con rac be een ABS-CBN and VIVA gran ing ABS-CBN
a) P107,727.00, he amo n of p emi m paid b RBS o he he e cl si e righ o e hibi he s bjec films. Pri a e
e hich i ed defendan RBS bond o lif he responden s VIVA and Del Rosario also appealed seeking
inj nc ion; moral and e emplar damages and addi ional a orne s
b) P191,843.00 fo he amo n of p in ad e i emen fo fees.
Maging Sino Ka Man in a io ne pape ; In i s decision of 31 Oc ober 1996, he Co r of Appeals
c) A o ne fee in he amo n of P1 million; agreed i h he RTC ha he con rac be een ABS-CBN
d) P5 million a and b a of mo al damage ; and VIVA had no been perfec ed, absen he appro al b
he VIVA Board of Direc ors of ha e er Del Rosario, i s
e) P5 million a and b a of e empla damage ;
agen , migh ha e agreed i h Lope III. The appella e
(3) Fo defendan VIVA, plain iff ABS-CBN i o de ed o pa co r did no e en belie e ABS-CBN s e idence ha Lope
P212,000.00 b a of ea onable a o ne fee . III ac all ro e do n s ch an agreemen on a a ,
as he same as ne er prod ced in co r . I like ise
rejec ed ABS-CBN s

1 Id., 464. _______________

1 Id., 913-928.
21 Vol. 2, OR, 2030-2035.
20 Id., 1140-1166; R , 134-161.

5 5
5 4

OL. 301, JAN AR 21 1999 585

584 C A A D
ABS-CBN B adca i g C ai .C fA eal ABS-CBN B adca C a .C fA ea

(4) The c o -claim of defendan RBS again defendan VIVA insis ence on i s righ of firs ref sal and ra iocina ed as
i di mi ed. follo s:
(5) Plain iff o pa he co .
A ega d he ma e of igh of fi ef al, i ma be e ha
a Film E hibi ion Ag eemen a en e ed in o be een Appellan
According o he RTC, here as no mee ing of minds on
ABS-CBN and appellan VIVA nde E hibi A in 1990, and
he price and erms of he offer. The alleged agreemen
ha pa ag. 1.4 he eof p o ide :
be een Lope III and Del Rosario as s bjec o he
appro al of he VIVA Board of Direc ors, and said 1.4 ABS-CBN ha ha e he gh ff ef a he e e -f
agreemen as disappro ed d ring he mee ing of he (24) VIVA f f TV e eca de ch e a a be ag eed
Board on 7 April 1992. Hence, here as no basis for ABS- b he a e he e , ded, h e e , ha ch gh ha be
CBN s demand ha VIVA signed he 1992 Film E hibi ion e e c ed b ABS-CBN h a e d f f f ee (15) da f he
Agreemen . F r hermore, he righ of firs ref sal nder ac a ffe g (Rec d , . 14).
he 1990 Film E hibi ion Agreemen had pre io sl been
e ercised per Ms. Concio s le er o Del Rosario icking off [H]o e e , i i e clea ha aid igh of fi ef al in
en i les accep able o hem, hich o ld ha e made he fa o of ABS-CBN hall ill be bjec o ch e m a ma be
1992 agreemen an en irel ne con rac . ag eed pon b he pa ie he e o, and ha he aid igh hall
21
On 21 J ne 1993, his Co r denied ABS-CBN s be e e ci ed b ABS-CBN i hin fif een (15) da f om he ac al
pe i ion for re ie in G.R. No. 108363, as no re ersible offe in i ing. Said pa ag. 1.4 of he ag eemen E hibi A on
error as commi ed b he Co r of Appeals in i s he igh of fi ef al did no fi he p ice of he film igh o
 he en -fo (24) film , no did i pecif he e m he eof. of moral damages o P2 million, e emplar damages o P2
The ame a e ill lef o be ag eed pon b he pa ie . million, and a orne s fees o P500,000.00.
In he in an ca e, ABS-CBN le e of ejec ion E hibi 3 On he o her hand, responden Co r of Appeals denied
(Reco d , p. 89) a ed ha i can onl ick off en (10) film , and VIVA and Del Rosario s appeal beca se i as RBS and
he d af con ac E hibi C accep ed onl fo een (14) film , no VIVA hich as ac all prej diced hen he
hile pa ag. 1.4 of E hibi A peak of he ne en -fo (24) complain as filed b ABS-CBN.
film . The offe of VIVA a ome ime in Decembe 1991 I s mo ion for reconsidera ion ha ing been denied, ABS-
(E hibi 2, 2-A, 2-B; Reco d , pp. 86-88; Deci ion, p. 11, Reco d , CBN filed he pe i ion in his case, con ending ha he
p. 1150), hen he fi li of VIVA film a en b M . Del Co r of Appeals gra el erred in
Ro a io o ABS-CBN.
The Vice P e iden of ABS-CBN, M . Cha o San o -Concio, I
en a le e da ed Jan a 6, 1992 (E hibi 3, Reco d , p. 89)
. . . RULING THAT THERE WAS NO PERFECTED CONTRACT
he e ABS-CBN e e ci ed i igh of ef al b ejec ing he
BETWEEN PETITIONER AND PRIVATE RESPONDENT VIVA
offe of VIVA. A ap l ob e ed b he ial co , i h he aid
NOTWITHSTANDING PREPONDERANCE OF EVIDENCE
le e of M . Concio of Jan a 6, 1992, ABS-CBN had lo i
ADDUCED BY PETITIONER TO THE CONTRARY.
igh of fi ef al. And e en if We eckon he fif een (15) da
pe iod f om Feb a 27, 1992 (E hibi 4 o 4-C) hen ano he II
li a en o ABS-CBN af e he le e of M . Concio, ill he
fif een (15) da pe iod i hin hich ABS-CBN hall e e ci e i . . . IN AWARDING ACTUAL AND COMPENSATORY
22
igh of fi ef al ha al ead e pi ed. DAMAGES IN FAVOR OF PRIVATE RESPONDENT RBS.

5 7
____________

22 Rollo, 55. OL. 301, JAN AR 21 1999 587

5 6 ABS-CBN B adca C a .C fA ea

III
586 S PREME CO RT REPORTS ANNOTATED
ABS-CBN B adca C a .C fA ea . . . IN AWARDING MORAL AND EXEMPLARY DAMAGES IN
FAVOR OF PRIVATE RESPONDENT RBS.
Accordingl , responden co r s s ained he a ard of
IV
ac al damages consis ing in he cos of prin
ad er isemen s and he premi m pa men s for he . . . IN AWARDING ATTORNEY S FEES IN FAVOR OF RBS.
co n erbond, here being adeq a e proof of he pec niar
loss hich RBS s had s ffered as a res l of he filing of he ABS-CBN claims ha i had e o f ll e ercise i s righ of
complain b ABS-CBN. As o he a ard of moral damages, firs ref sal o er en -fo r i les nder he 1990 Film
he Co r of Appeals fo nd reasonable basis herefor, E hibi ion Agreemen , as i had chosen onl en i les from
holding ha RBS rep a ion as debased b he filing of he firs lis . I insis s ha e gi e credence o Lope s
he complain in Ci il Case No. Q-92-12309 and b he non- es imon ha he and Del Rosario me a he Tamarind
sho ing of he film Ma S Ka Ma . Responden Grill Res a ran , disc ssed he erms and condi ions of he
co r also held ha e emplar damages ere correc l second lis ( he 1992 Film E hibi ion Agreemen ) and pon
imposed b a of e ample or correc ion for he p blic good agreemen hereon, ro e he same on a paper napkin. I
in ie of he filing of he complain despi e pe i ioner s also asser s ha he con rac has alread been effec i e, as
kno ledge ha he con rac i h VIVA had no been he elemen s hereof, namel , consen , objec , and
perfec ed. I also pheld he a ard of a orne s fees, considera ion ere es ablished. I hen concl des ha he
reasoning ha i h ABS-CBN s ac of ins i ing Ci il Co r of Appeals prono ncemen s ere no s ppor ed b
Case No. Q-92-12309, RBS as nnecessaril forced o la and j rispr dence, as per o r decision of 1 December23
li iga e. The appella e co r , ho e er, red ced he a ards 1995 in L e a S M , I c. . C f A ea ,
24
 24 2
hich ci ed T a S a , I c. . C25 f A ea ; A Y fai h in filing an ac ion. In an case, free resor o co r s
A c . C f A 26 ea ; and V c Rea for redress of rongs is a ma er of p blic polic . The la
C a .B a ec , I c. recogni es he righ of e er one o s e for ha hich he
Anen he ac al damages a arded o RBS, ABS-CBN hones l belie es o be his righ i ho fear of s anding
disa o s liabili herefor. RBS spen for he premi m on rial for damages here b lack of s fficien e idence, legal
he co n erbond of i s o n oli ion in order o nega e he echnicali ies, or a differen in erpre a ion
2
of he la s on
inj nc ion iss ed b he rial co r af er he par ies had he ma er, he case o ld lose gro nd. One 2
ho makes
en ila ed heir respec i e posi ions d ring he hearings for se of his o n legal righ does no inj r . If damage
he p rpose. The filing of he co n erbond as an op ion res l s from he 30
filing of he complain , i is da
a ailable o RBS, b i can hardl be arg ed ha ABS- ab e a. Besides,
CBN compelled RBS o inc r s ch e pense. Besides, RBS
had ano her a ailable op ion, .e., mo e for he dissol ion _________________
of he inj nc ion; or if i as
2 C g Francel Real Corp. . Co r of Appeals, 252 SCRA 127, 134
[1996].
_________________
2 C g Tan . Co r of Appeals, 131 SCRA 397, 404 [1984].
23 250 SCRA 523 [1995]. 2 C g A ong Hian . Co r of Ta Appeals, 59 SCRA 110, 134
24 244 SCRA 320 [1995]. [1974].
25 238 SCRA 602 [1994]. 30 C g Ilocos Nor e Elec ric Compan . Co r of Appeals, 179 SCRA
26 65 SCRA 352 [1975]. 5 [1989].

5 5

588 S PREME CO RT REPORTS ANNOTATED OL. 301, JAN AR 21 1999 589

ABS-CBN B adca C a .C fA ea ABS-CBN B adca C a .C fA ea

de ermined o p p a co n erbond, i co ld ha e moral damages are generall no a arded in fa or of a

presen ed a cash bond. F r hermore nder Ar icle 2203 of j ridical person, nless i enjo s a good rep a ion ha as
he Ci il Code, he par s ffering loss or inj r is also debased b 31 he offending par res l ing in social
req ired o e ercise he diligence of a good fa her of a h milia ion.
famil o minimi e he damages res l ing from he ac or As regards he a ard of a orne s fees, ABS-CBN
omission. As regards he cos of prin ad er isemen s, RBS main ains ha he same had no fac al, legal, or eq i able
had no con incingl es ablished ha his as a loss j s ifica ion. In s s aining he rial co r s a ard, he
a rib able o he non-sho ing of Ma S Ka Ma ; Co r of Appeals ac ed in clear disregard
32
of he doc rine
on he con rar , i as bro gh o d ring rial ha i h or laid do n in B a . Ca a a aca ha he e of he
i ho he case or he inj nc ion, RBS o ld ha e spen decision sho ld s a e he reason h a orne s fees are
s ch an amo n o genera e in eres in he film. being a arded; o her ise, he a ard sho ld be disallo ed.
ABS-CBN f r her con ends ha here as no clear basis Besides, no bad fai h has been imp ed on, m ch less
for he a ards of moral and e emplar damages. The pro ed as ha ing been commi ed b , ABS-CBN. I has
con ro ers in ol ing ABS-CBN and RBS did no in an been held ha here no s fficien sho ing of bad fai h
a origina e from b siness ransac ion be een hem. o ld be reflec ed in a par s persis ence in a case o her
The claims for s ch damages did no arise from an han an erroneo s con ic ion of he righ eo sness33of his
con rac al dealings or from specific ac s commi ed b ca se, a orne s fees shall no be reco ered as cos .
ABS-CBN agains RBS ha ma be charac eri ed as On he o her hand, RBS asser s ha here as no
an on, fra d len , or reckless; he arose b ir e onl of perfec ed con rac be een ABS-CBN and VIVA absen an
he filing of he complain . An a ard of moral and mee ing of minds be een hem regarding he objec and
e emplar damages is no arran ed here he record is considera ion of he alleged con rac . I affirms ha ABS-
beref of an proof ha a par ac ed malicio sl or in bad CBN s claim of a righ of firs ref sal as correc l rejec ed
2
b he rial co r . RBS insis s he premi m i had paid for en i ma reco er moral and e emplar damages if i has
he co n erbond cons i ed a pec niar loss pon hich i a good rep a ion ha is debased res l ing in social
ma reco er. I as obliged o p p he co n erbond d e h milia ion. I hen ra iocina es; h s:
o he inj nc ion proc red b ABS-CBN. Since he rial
co r fo nd ha ABS-CBN had no ca se of ac ion or alid The e can be no do b ha RBS ep a ion ha been deba ed b
claim agains RBS and, herefore no en i led o he ri of ABS-CBN ac in hi ca e. When RBS a no able o f lfill i
inj nc ion, RBS co ld reco er from ABS-CBN he premi m commi men o he ie ing p blic o ho he film Maging Sino
paid on he co n erbond. Con rar o he claim of ABS- Ka Man on he ched led da e and ime (and on o occa ion
CBN, he cash bond o ld pro e o be more e pensi e, as ha RBS ad e i ed), i ffe ed e io emba a men and
he loss o ld be eq i alen o he cos ocial h -

___________________
34 I ART RO M. TOLENTINO, COMMENTARIES AND J RISPR DENCE
31 C g People . Manero, 218 SCRA 85, 96-97 [1993]; c g Sime
ON THE CI IL CODE OF THE PHILIPPINES 63, 66 (1983 .).
In erna ional (Manila), Inc. . Co r of Appeals, 183 SCRA 360 [1990].
35 S pra 31.
32 16 SCRA 321 [1966].
33 See Gon ales . Na ional Ho sing Corp., 94 SCRA 786 [1979]; 5 1
Ser ice ide Specialis s, Inc. . Co r of Appeals, 256 SCRA 649 [1996].

5 0 . 301, A A 21 1999 591

ABS-CBN B adca i g C ai .C fA eal
590 S PREME CO RT REPORTS ANNOTATED
milia ion. When he ho ing a canceled, i a e ie e called p
ABS-CBN B adca C a .C fA ea
RBS office and bjec ed RBS o e bal ab e ( A a
a , a a aa a , a aa a )
of mone RBS o ld forego in case he P30 million came (E h. 3-RBS, pa . 3). Thi alone a no ome hing RBS b o gh
from i s f nds or as borro ed from banks. pon i elf. I a e ac l ha ABS-CBN had planned o happen.
RBS like ise asser s ha i as en i led o he cos of The amo n of mo al and e empla damage canno be aid o
ad er isemen s for he cancelled sho ing of he film be e ce i e. T o ea on j if he amo n of he a a d.
Ma S Ka Ma beca se he prin ad er isemen s The fi i ha he h milia ion ffe ed b RBS i na ional in
ere p o o anno nce he sho ing on a par ic lar da e en . RBS ope a ion a a b oadca ing compan i [ ]
and ho r on Channel 7, .e., in i s en ire a one ime, no na ion ide. I clien ele, like ha of ABS-CBN, con i of ho e
as series o be sho n on a periodic basis. Hence, he prin ho o n and a ch ele i ion. I i no an e agge a ion o a e,
ad er isemen s ere good and rele an for he par ic lar and i i a ma e of j dicial no ice ha almo e e o he pe on
da e of sho ing, and since he film co ld no be sho n on in he co n a che ele i ion. The h milia ion ffe ed b
ha par ic lar da e and ho r beca se of he inj nc ion, he RBS i m l iplied b he n mbe of ele ie e ho had
e penses for he ad er isemen s had gone o as e. an icipa ed he ho ing of he film Maging Sino Ka Man on
As regards moral and e emplar damages, RBS asser s Ma 28 and No embe 3, 1992 b did no ee i o ing o he
ha ABS-CBN filed he case and sec red inj nc ions cancella ion. Added o hi a e he ad e i e ho had placed
p rel for he p rpose of harassing and prej dicing RBS. comme cial po fo he eleca and o hom RBS had a
P rs an hen o Ar icles 19 and 21 of he Ci il Code, ABS- commi men in con ide a ion of he placemen o ho he film in
CBN m s34 be held liable for s ch damages. Ci ing he da e and ime pecified.
T e , damages ma be a arded in cases of ab se of The econd i ha i i a compe i o ha ca ed RBS o ffe
righ s e en if he ac done is no illici , and here is ab se he h milia ion. The h milia ion and inj a e fa g ea e in
of righ s here a plain iff ins i es an ac ion p rel for deg ee hen ca ed b an en i ho e l ima e b ine
he p rpose of harassing or prej dicing he defendan . objec i e i o l e c ome ( ie e in hi ca e) a a f om he
36
In s ppor of i s s and ha a j ridical en i can reco er compe i ion.
moral and e emplar damages,
35
pri a e responden RBS
ci ed Pe e . Ma e , here i as s a ed ha s ch
For heir par , VIVA and Vicen e del Rosario con end ha Con rac s ha are consens al in na re are perfec ed pon
he findings of fac of he rial co r and he Co r of mere mee ing of he minds. Once here is conc rrence
Appeals do no s ppor ABS-CBN s claim ha here as a be een he offer and he accep ance pon he s bjec
perfec ed con rac . S ch fac al findings can no longer be ma er, considera ion, and erms of pa men a con rac is
dis rbed in his pe i ion for re ie nder R le 45, as onl prod ced. The offer m s be cer ain. To con er he offer
q es ions of la can be raised, no q es ions of fac . On he in o a con rac , he accep ance m s be absol e and m s
iss e of damages and a orne s fees, he adop ed he no q alif he erms of he offer; i m s be plain,
arg men s of RBS. neq i ocal, ncondi ional, and i ho ariance of an
The ke iss es for o r considera ion are (1) he her sor from he proposal. A q alified accep ance, or one ha
here as a perfec ed con rac be een VIVA and ABS- in ol es a ne proposal, cons i es a co n er-offer and is a
CBN, and (2) he her RBS is en i led o damages and rejec ion of he original offer. Conseq en l , hen
a orne s fees. I ma be no ed ha he a ard of some hing is desired hich is no e ac l ha is proposed
a orne s fees of P212,000 in fa or of VIVA is no assigned in he offer, s ch accep ance is no
as ano her error.
_________________
_________________
3 Ar . 1305, Ci il Code.
36 Rollo, 191. 3 Ar . 1318, Ci il Code.
3 To o a Sha , Inc. . Co r of Appeals, a no e 24, a 329.
5 2
5 3

592 S PREME CO RT REPORTS ANNOTATED

OL. 301, JAN AR 21 1999 593
ABS-CBN B adca C a .C fA ea
ABS-CBN B adca C a .C fA ea

s fficien o genera e consen beca se an modifica 40ion or

I aria ion from he erms of he offer ann ls he offer.
The firs iss e sho ld be resol ed agains ABS-CBN. A When Mr. Del Rosario of VIVA me i h Mr. Lope of
con rac is a mee ing of minds be een o persons ABS-CBN a he Tamarind Grill on 2 April 1992 o disc ss
hereb one binds himself o gi e some hing or o render he package of films, said package of 104 VIVA films as
3
some ser ice o ano her for a considera ion. There is no VIVA s offer o ABS-CBN o en er in o a ne Film
con rac nless he follo ing req isi es conc r: (1) consen E hibi ion Agreemen . B ABS-CBN, sen , hro gh Ms.
of he con rac ing par ies; (2) objec cer ain hich is he Concio, a co n er-proposal in he form of a draf con rac
s bjec of he con rac ; and (3) ca se of he obliga ion, proposing e hibi ion of 53 films for a considera ion of P35
3
hich is es ablished. A con rac ndergoes hree s ages: million. This co n er-proposal co ld be no hing less han
he co n er-offer of Mr. Lope d ring his conference i h
(a) prepara ion, concep ion, or genera ion, hich is he Del Rosario a Tamarind Grill Res a ran . Clearl , here
period of nego ia ion and bargaining, ending a he as no accep ance of VIVA s offer, for i as me b a
momen of agreemen of he par ies; co n er-offer hich s bs an iall aried he erms of he
(b) perfec ion or bir h of he con rac , hich is he offer.
momen hen he par ies come o agree on he ABS-CBN s reliance 41
in L e a S M , I c. .
erms of he con rac ; and C f A ea42 and V c Rea C a .
B a ec , I c., is misplaced. In hese cases, i as held
(c) cons mma ion or dea h, hich is he f lfillmen or
ha an accep ance ma con ain a req es for cer ain
performance of he erms agreed pon in he
3 changes in he erms of he offer and e be a binding
con rac .
accep ance as long as i is clear ha he meaning of he
accep ance is posi i el and neq i ocall o accep he
offer, he her s ch req es is gran ed or no . This r ling
 as, 43ho e er, re ersed in he resol ion of 29 March accordingl , he general r les of 4agenc as o he binding
1996, hich r led ha he accep ance of an offer m s be effec s of heir ac s o ld appl . For s ch officers o be
nq alified and absol e, .e., i m s be iden ical in all deemed f ll clo hed b he corpora ion o e ercise a po er
respec s i h ha of he offer so as o prod ce consen or of he Board, he la er m s speciall a hori e hem o do
mee ing of he minds. so. Tha Del Rosario did no ha e he a hori o accep
On he o her hand, in V c , ci ed in L e a , he ABS-CBN s co n er-offer as bes e idenced b his
alleged changes in he re ised co n er-offer ere no s bmission of he draf con rac o VIVA s Board of
ma erial b merel clarifica or of ha had pre io sl Direc ors for he la er s appro al. In an e en , here as
been agreed pon. I ci ed he s a emen in S a . be een Del
F a L fe I -
_________________
___________________
44 165 Fed. 2nd 965, c g Sec. 79 Willis on on Con rac s.
40 See IV ARTURO M. TOLENTINO, COMMENTARIES AND 45 V c Rea C a .B ahec , I c., a no e 25, a 365-
JURISPRUDENCE ON THE CIVIL CODE OF THE PHILIPPINES 450 366.
(6 h ed., 1996). 46 B.P. Blg. 68, Sec. 23.
41 S a no e 23. 4 JOSE C. VITUG, PANDECT OF COMMERCIAL LAW AND
42 S a no e 26. JURISPRUDENCE 356 (Re ised ed. 1990).
43 255 SCRA 626, 639 [1996]. 4 I JOSE C. CAMPOS, JR., and MARIA CLARA LOPEZ-CAMPOS,
THE CORPORATION CODE 384-385 (1990 ed.).
5 4
5 5

594 S PREME CO RT REPORTS ANNOTATED

OL. 301, JAN AR 21 1999 595
ABS-CBN B adca C a .C fA ea
ABS-CBN B adca C a .C fA ea
44
a ce C . ha a endor s change in a phrase of he offer o
p rchase, hich change does no essen iall change he Rosario and Lope III no mee ing of minds. The follo ing
erms of he offer, does no amo n o 45 a rejec ion of he findings of he rial co r are ins r c i e:
offer and he ender of a co n er-offer. Ho e er, hen
an of he elemen s of he con rac is modified pon A n mbe of con ide a ion mili a e again ABS-CBN claim
accep ance, s ch al era ion amo n s o a co n er-offer. ha a con ac a pe fec ed a ha l nch mee ing on Ap il 02,
In he case a bar, ABS-CBN made no nq alified 1992 a he Tama ind G ill.
accep ance of VIVA s offer. Hence, he nder en a period FIRST, M . Lope claimed ha ha a ag eed pon a he
of bargaining. ABS-CBN hen formali ed i s co n er- Tama ind G ill efe ed o he p ice and he n mbe of film ,
proposals or co n er-offer in a draf con rac . VIVA hro gh hich he o e on a napkin. Ho e e , E hibi C con ain
i s Board of Direc ors, rejec ed s ch co n er-offer. E en if i a Ta a
be conceded a e d ha Del Rosario had accep ed he G , if Lope e imon a o be belie ed no co ld he ha e
co n er-offer, he accep ance did no bind VIVA, as here been ph icall i en on a napkin. The e a e en do b a o
as no proof ha soe er ha Del Rosario had he specific he he i a a pape napkin o a clo h napkin. In ho ha
a hori o do so. e e i en in E hibi C e e no di c ed, and he efo e
46
Under he Corpora ion Code, nless o her ise co ld no ha e been ag eed pon, b he pa ie . Ho hen co ld
pro ided b said Code, corpora e po ers, s ch as he po er hi co compel he pa ie o ign E hibi C hen he
o en er in o con rac s, are e ercised b he Board of p o i ion he eof e e no p e io l ag eed pon?
Direc ors. Ho e er, he Board ma delega e s ch po ers o SECOND, M . Lope claimed ha ha a ag eed pon a
ei her an e ec - i e commi ee or officials or con rac ed he bjec ma e of he con ac a 14 film . The complain in
managers. The delega ion, e cep for 4 he e ec i e fac p a fo deli e of 14 film . B E hibi C men ion 53
commi ee, m s be for specific p rposes. Delega ion o film a i bjec ma e . Which i hich? If E hibi C
officers makes he la er agen s of he corpora ion; eflec ed he e in en of he pa ie , hen ABS-CBN claim fo
14 film in i complain i fal e o if ha i alleged in he A he pa ie had no e di c ed he p opo ed e m and
complain i e, hen E hibi C did no eflec ha a condi ion in E hibi C, and he e a no e idence ha oe e
ag eed pon b he pa ie . Thi nde co e he fac ha he e ha Vi a ag eed o he e m and condi ion he eof, aid
a no mee ing of he mind a o he bjec ma e of he doc men canno be a binding con ac . The fac ha Vi a ef ed
con ac , o a o p ecl de pe fec ion he eof. Fo e led i he o ign E hibi C e eal onl o [ ] ell ha i did no ag ee
le ha he e can be no con ac he e he e i no objec ce ain on i e m and condi ion , and hi co ha no a ho i o
hich i i bjec ma e (A . 1318, NCC). compel Vi a o ag ee he e o.
THIRD, M . Lope [ ] an e o q e ion 29 of hi affida i FIFTH. M . Lope nde and [ ] ha ha he and M . Del
e imon (E h. D ) a e : Ro a io ag eed pon a he Tama ind G ill a onl p o i ional,
in he en e ha i a bjec o app o al b he Boa d of
We e e ab e each a ag ee e . VIVA ga e he e c e ce e
Di ec o of Vi a. He e ified:
h he e f ee (14) f ,a d e ag eed a V a he a
f P16,050,000.00 a e a g a V a c e ca h Q N ,M . , T ...
P19,950,000.00. We had a ead ea a ed h P16,050,000.00.
M .
hich gi e a o al con ide a ion of P36 million
R , ?
(P19,950,000.00 pl P16,050,000.00 eq al P36,000,000.00).
A D R
On c o -e amina ion M . Lope e ified: B
D .
5 6

5 7
596 S PREME CO RT REPORTS ANNOTATED
ABS-CBN B adca C a .C fA ea OL. 301, JAN AR 21 1999 597
ABS-CBN B adca C a .C fA ea
Q ?
A T , , Q A -
7 7 c ?
.T
A , .
c
Q S ,
P35 . D ?
A , . (T , . 42-43, J 8, 1992)
No , hich i hich? P36 million o P35 million? Thi eaken
...
ABS-CBN claim.
FOURTH. M . Concio, e if ing fo ABS-CBN a ed ha he Q D M .D R
an mi ed E hibi C o M . Del Ro a io i h a hand i en B ?
no e, de c ibing aid E hibi C a a d af . (E h. 5 -Vi a; n, A , . (T , . 69, J 8, 1992).
pp. 23-24, J ne 08, 1992). The aid d af ha a ell defined
meaning. The abo e e imon of M . Lope ho be ond do b ha he
... kne M . Del Ro a io had no a ho i o bind Vi a o a con ac
Since E hibi C i onl a d af , o a en a i e, p o i ional o i h ABS-CBN n il and nle i Boa d of Di ec o app o ed
p epa a o i ing p epa ed fo di c ion, he e m and i . The complain , in fac , allege ha M . Del Ro a io i he
condi ion he eof co ld no ha e been p e io l ag eed pon b E ec i e P od ce of defendan Vi a hich i a co po a ion.
ABS-CBN and Vi a. E hibi C co ld no he efo e legall bind (pa . 2, complain ). A a me e agen of Vi a, Del Ro a io co ld no
Vi a, no ha ing ag eed he e o. In fac , M . Concio admi ed ha bind Vi a nle ha he did i a ified b i Boa d of Di ec o .
he e m and condi ion embodied in E hibi C e e p epa ed (Vicen e . Ge alde , 52 SCRA 210; A nold . Wille and
b ABS-CBN la e and he e a no di c ion on aid e m Pa e on, 44 Phil. 634). A a me e agen , ecogni ed a ch b
and condi ion . . . .
plain iff, Del Ro a io co ld no be held liable join l and e e all
i h Vi a and hi incl ion a pa defendan ha no legal ba i .
(Salonga . Wa ne Ba ne [ ], COLTA, 88 Phil. 125; Salmon II
. Tan, 36 Phil. 556).
Ho e er, e find for ABS-CBN on he iss e of damages.
The e imon of M . Lope and he allega ion in he
We shall firs ake p ac al damages. Chap er 2, Ti le
complain a e clea admi ion ha ha a ppo ed o ha e
XVIII, Book IV of he Ci il Code is he specific la on
been ag eed pon a he Tama ind G ill be een M . Lope and
ac al or compensa or damages. E cep as pro ided b
Del Ro a io a no a binding ag eemen . I i a i ho ld be
la or b s ip la ion, one is en i led o compensa ion for
beca e co po a e po e o en e in o a con ac i lodged in he
ac al damages onl for s ch51 pec niar loss s ffered b
Boa d of Di ec o . (Sec. 23, Co po a ion Code). Wi ho ch
him as he has d l pro ed. The indemnifica ion shall
boa d app o al b he Vi a boa d, ha e e ag eemen Lope and
comprehend no onl he al e of he loss s ffered, b 52also
Del Ro a io a i ed a co ld no ipen in o a alid con ac
ha of he profi s ha he obligee failed o ob ain. In
binding pon Vi a (Yao Ka Sin T ading . Co of Appeal , 209
con rac s and q asi-con rac s he damages hich ma be
SCRA 763). The e idence add ced ho ha he Boa d of
a arded are dependen on he her he obligor ac ed i h
Di ec o of Vi a ejec ed E hibi C and in i ed ha he film
4 good fai h or o her ise. In case of good fai h, he damages
package fo 104 film be main ained (E h. 7-1 -Vi a).
reco erable are hose hich are he na ral and probable
The con en ion ha ABS-CBN had e o f ll e ercise i s conseq ences of he breach of he obliga ion and hich he
righ of firs ref sal o er en -fo r films nder he 1990 par ies ha e foreseen or co ld ha e reasonabl foreseen a
he ime of he cons i ion of he obliga ion. If he
_________________
_______________
4 RTC Decision, Rollo, 153-156.
50 Id., 158.
5 51 Ar icle 2199, Ci il Code.
52 Ar icle 2200, d.

598 S PREME CO RT REPORTS ANNOTATED 5

ABS-CBN B adca C a .C fA ea
OL. 301, JAN AR 21 1999 599
Film E hibi ion Agreemen and ha he mee ing be een
ABS-CBN B adca C a .C fA ea
Lope and Del Rosario as a con in a ion of said pre io s
con rac is n enable. As obser ed b he rial co r , ABS-
CBN s righ of firs ref sal had alread been e ercised obligor ac ed i h fra d, bad fai h, malice, or an on
hen Ms. Concio ro e o VIVA icking off en films. Th s: a i de, he shall be responsible for all damages hich ma
be reasonabl
53
a rib ed o he non-performance of he
[T]he b eq en nego ia ion i h ABS-CBN o (2) mon h af e obliga ion. In crimes and q asi-delic s, he defendan
hi le e a en , a fo an en i el diffe en package. M . shall be liable for all damages hich are he na ral and
Concio he elf admi ed on c o -e amina ion o ha ing ed o probable conseq ences of he ac or omission complained of,
e e ci ed he igh of fi ef al. She a ed ha he li a no he her or no s ch damages ha e been foreseen 54
or co ld
accep able and a indeed no accep ed b ABS-CBN, (TSN, J ne ha e reasonabl been foreseen b he defendan .
8, 1992, pp. 8-10). E en M . Lope him elf admi ed ha he igh Ac al damages ma like ise be reco ered for loss or
of fi ef al ma ha e been al ead e e ci ed b M . Concio (a impairmen of earning capaci in cases of emporar or
he had). (TSN, J ne 8, 1992, pp. 71-75). Del Ro a io him elf permanen personal inj r , or for inj 55r o he plain iff s
kne and nde and [ ] ha ABS-CBN ha lo i igh of fi b siness s anding or commercial credi .
ef al hen hi li of 36 i le e e ejec ed (T n, J ne 9, 1992, The claim of RBS for ac al damages did no arise from
50
pp. 10-11). con rac , q asi-con rac , delic , or q asi-delic . I arose
from he fac of filing of he complain despi e ABS-CBN s
alleged kno ledge of lack of ca se of ac ion. Th s
paragraph 12 of RBS s Ans er i h Co n erclaim and
Cross-claim nder he heading COUNTERCLAIM on he basis of i s de ermina ion ha here e is ed
specificall alleges: s fficien gro nd for he iss ance hereof. No abl , he
RTC did no dissol e he inj nc ion on he gro nd of lack of
12. ABS-CBN filed he complain kno ing f ll ell ha i ha no legal and fac al basis, b beca se of he plea of RBS ha
ca e of ac ion again RBS. A a e l he eof, RBS ffe ed i be allo ed o p p a co n erbond.
56
ac al damage in he amo n of P6,621,195.32. As regards a orne s fees, he la is clear ha in he
absence of s ip la ion, a orne s fees ma be reco ered as
Needless o s a e he a ard of ac al damages canno be
ac al or compensa or damages nder an of he
comprehended nder he abo e la on ac al damages.
circ ms ances pro ided for in Ar icle 2208 of he Ci il
RBS co ld onl probabl ake ref ge nder Ar icles 19, 20, 5
Code.
and 21 of he Ci il Code, hich read as follo s:

ART. 19. E e pe on m , in he e e ci e of hi igh and in ________________

he pe fo mance of hi d ie , ac i h j ice, gi e e e one hi
d e, and ob e e hone and good fai h. 5 Sec ion 4 in rela ion o Sec ion 8, R le 58, 1997 R les of Ci il
Proced re.
5 I reads as follo s:
_________________
ART. 2208. I , ,
53 Ar icle 2201, d.
, , :
54 Ar icle 2202, d.
55 Ar icle 2205, d. (1) ;
56 Vol. 1, OR, 225. (2)
;
600

601
600 S PREME CO RT REPORTS ANNOTATED
ABS-CBN B adca C a .C fA ea OL. 301, JAN AR 21 1999 601
ABS-CBN B adca C a .C fA ea
ART. 20. E e pe on ho, con a o la , ilf ll o
negligen l ca e damage o ano he , hall indemnif he la e The general r le is ha a orne s fees canno be reco ered
fo he ame. as par of damages beca se of he polic 5 ha no premi m
ART. 21. An pe on ho ilf ll ca e lo o inj o sho ld be placed on he righ o li iga e. The are no o
ano he in a manne ha i con a o mo al , good c om o be a arded e er ime a par ins a s i . The po er of
p blic polic hall compen a e he la e fo he damage. he co r o a ard a orne s fees nder Ar icle 2208
60
demands fac al, legal, and eq i able j s ifica ion. E en
I ma f r her be obser ed ha in cases here a ri of
hen a claiman is compelled o li iga e i h hird persons
preliminar inj nc ion is iss ed, he damages hich he
or o inc r e penses o pro ec his righ s, s ill a orne s
defendan ma s ffer b reason of he ri are reco erable
5 fees ma no be a arded here no s fficien sho ing of
from he inj nc i e bond. In his case, ABS-CBN had no
bad fai h co ld be reflec ed in a par s persis ence in a
e filed he req ired bond; as a ma er of fac , i asked for
case o her han an 61erroneo s con ic ion of he
red c ion of he bond and e en en o he Co r of
righ eo sness of his ca se.
Appeals o challenge he order on he ma er. Clearl hen,
i as no necessar for RBS o file a co n erbond. Hence,
ABS-CBN canno be held responsible for he premi m RBS _______________
paid for he co n erbond.
(3) In criminal cases of malicio s prosec ion agains he plain iff;
Nei her co ld ABS-CBN be liable for he prin
(4) In case of a clearl nfo nded ci il ac ion or proceeding agains
ad er isemen s for Maging Sino Ka Man for lack of
he plain iff;
s fficien legal basis. The RTC iss ed a emporar
res raining order and la er, a ri of preliminar inj nc ion
 (5) Where he defendan ac ed in gross and e iden bad fai h in moral s ffering he has ndergone. I is aimed a he
ref sing o sa isf he plain iff s plainl alid, j s and res ora ion, i hin he limi s of he possible, of he
demandable claim; spiri al a a 63e, and sho ld be propor iona e o
(6) In ac ions for legal s ppor ; he s ffering inflic ed. Trial co r s m s hen g ard
(7) In ac ions for he reco er of ages of ho sehold helpers, laborers agains he a ard of e orbi an damages; he sho ld
and skilled orkers; e ercise balanced res rained and meas red objec i i o
a oid s spicion ha i as d e o passion, prej dice, or
(8) In ac ions for indemni nder orkmen s compensa ion and 64
corr p ion on he par of he rial co r .
emplo er s liabili la s;
The a ard of moral damages canno be gran ed in fa or
(9) In a separa e ci il ac ion o reco er ci il liabili arising from a
of a corpora ion beca se, being an ar ificial person and
crime;
ha ing e is ence onl in legal con empla ion, i has no
(10) When a leas do ble j dicial cos s are a arded; feelings, no emo ions, no senses. I canno , herefore,
(11) In an o her case here he co r deems i j s and eq i able ha e perience ph sical
a orne s fees and e penses of li iga ion sho ld be reco ered.

_________________
In all cases, he a orne s fees and e penses of li iga ion m s be
reasonable. 62 Pags in . In ermedia e Appella e Co r , 193 SCRA 547, 555
5 Fires one Tire & R bber Compan of he Philippines . Ines Cha es [1991].
& Co. L d., 18 SCRA 356, 358 [1966]; Philippine Air Lines . Miano, 242 63 Visa an Sa mill Compan . Co r of Appeals, 219 SCRA 378, 392
SCRA 235, 240 [1995]. [1993], c g R & B Sec ri Ins rance Co., Inc. . In ermedia e Appella e
60 Sco Cons l an s & Reso rce De elopmen Corpora ion, Inc. . Co r , 129 SCRA 736 [1984]; De la Serna . Co r of Appeals, 233 SCRA
Co r of Appeals, 242 SCRA 393, 406 [1995]. 325, 329-330 [1994].
61 Gon ales . Na ional Ho sing Corp., 94 SCRA 786, 792 [1979]; 64 People . Wenceslao, 212 SCRA 560, 569 [1992], c g Filin es
Ser ice ide Specialis s, Inc. . Co r of Appeals, a no e 33, a 655. Credi Corp. . In ermedia e Appella e Co r , 166 SCRA 155 [1988].

602 603

602 S PREME CO RT REPORTS ANNOTATED OL. 301, JAN AR 21 1999 603

ABS-CBN B adca C a .C fA ea ABS-CBN B adca C a .C fA ea

As o moral damages he la is Sec ion 1, Chap er 3, Ti le s ffering and men al ang ish, hich 65can be e perienced
XVIII, Book IV of he Ci il Code. Ar icle 2217 hereof onl b one ha ing a ner o s s s em. The s a emen in
66 6
defines ha are incl ded in moral damages, hile Ar icle Pe e . Ma e and Ma b a L be C . . PNB
2219 en mera es he cases here he ma be reco ered. ha a corpora ion ma reco er moral damages if i has a
Ar icle 2220 pro ides ha moral damages ma be good rep a ion ha is debased, res l ing in social
reco ered in breaches of con rac here he defendan h milia ion is an b e d c . On his score alone he
ac ed fra d len l or in bad fai h. RBS s claim for moral a ard for damages m s be se aside, since RBS is a
damages co ld possibl fall onl nder i em (10) of Ar icle corpora ion.
2219, hereof hich reads: The basic la on e emplar damages is Sec ion 5,
Chap er 3, Ti le XVIII, Book IV of he Ci il Code. These are
(10) Ac and ac ion efe ed o in A icle 21, 26, 27, 28, 29, 30,
imposed b a of e ample or correc ion for he p blic
32, 34, and 35.
good, in addi ion o 6moral, empera e, liq ida ed, or
Moral damages are in he ca egor of an a ard designed o compensa or damages. The are reco erable in criminal
compensa e he claiman for ac al inj 62r s ffered and no cases as par of he ci il liabili hen he crime as 6
o impose a penal on he rongdoer. The a ard is no commi ed i h one or more aggra a ing circ ms ances;
mean o enrich he complainan a he e pense of he in q asi-delic
0
s, if he defendan ac ed i h gross
defendan , b o enable he inj red par o ob ain means, negligence; and in con rac s and q asicon rac s, if he
di ersion, or am semen s ha ill ser e o ob ia e he
defendan ac ed in a an on,1 fra d len , reckless, he ac or o damages, for he la co ld no ha e mean o
oppressi e, or male olen manner. impose a penal on he righ o li iga e. If damages res l
I ma be rei era ed ha he claim of RBS agains ABS- from a person
5
s e ercise of a righ , i is da ab e
CBN is no based on con rac , q asi-con rac , delic , or a.
q asidelic . Hence, he claims for moral and e emplar WHEREFORE, he ins an pe i ion is GRANTED. The
damages can onl be based on Ar icles 19, 20, and 21 of he challenged decision of he Co r of Appeals in CA-G.R. CV
Ci il Code. No. 44125 is hereb REVERSED e cep as o nappealed
The elemen s of ab se of righ nder Ar icle 19 are he a ard of a orne s fees in fa or of VIVA Prod c ions, Inc.
follo ing: (1) he e is ence of a legal righ or d , (2) No prono ncemen as o cos s.
hich is e ercised in bad fai h, and (3) for he sole in en of SO ORDERED.
prej dicing or inj ring ano her. Ar icle 20 speaks of he
general sanc ion for all o her pro isions of la hich do no Me , Ka a , Ma e and Pa d , JJ., conc r.
especiall pro ide for heir o n sanc ion; hile Ar icle 21
deals i h Pe a ed, d e e e ed.

_________________
_________________
2 Albenson En erprises Corp. . Co r of Appeals, 217 SCRA 16, 25
65 Prime Whi e Cemen Corp. . In ermedia e Appella e Co r , 220
[1993].
SCRA 103, 113-114 [1993]; LBC E press, Inc. . Co r of Appeals, 236
3 Far Eas Bank and Tr s Compan . Co r of Appeals, 241 SCRA
SCRA 602, 607 [1994]; Acme Shoe, R bber and Plas ic Corp. . Co r of
671, 675 [1995].
Appeals, 260 SCRA 714, 722 [1996].
4 Philippine Air Lines . Miano, a no e 59.
66 S a no e 31.
5 Tierra In erna ional Cons r c ion Corp. . NLRC, 211 SCRA 73, 81
6 130 Phil. 366 [1968].
[1992], c g Saba . Co r of Appeals, 189 SCRA 50, 55 [1990].
6 Ar icle 2229, Ci il Code.
6 Ar icle 2230, d. 605
0 Ar icle 2231, d.
1 Ar icle 2232, d.
OL. 301, JAN AR 21 1999 605
604
Ma a .I e a

604 S PREME CO RT REPORTS ANNOTATED N e . A corpora ion being an ar ificial person hich
ABS-CBN B adca C a .C fA ea has no feelings, emo ions or senses, and hich canno
e perience ph sical s ffering or men al ang ish, is no
ac s c a b e , and has he follo ing elemen s: en i led o moral damages. (S d H e , I c. . C f
(1) here is an ac hich is legal, (2) b hich is con rar A ea , 275 SCRA 267 [1997])
o morals, good c s om, p blic order, or p blic polic , and The essen ial elemen s of a con rac of sale are he
(3) and i is done i h in en o inj re.
2
follo ing: (a) Consen or mee ing of he minds, ha is,
Veril hen, malice or bad fai h is a he core of Ar icles consen o ransfer o nership in e change for he price; (b)
19, 20, and 21. Malice or bad fai h implies a conscio s and De ermina e s bjec ma er; and (c) Price cer ain in mone
in en ional design o do a 3 rongf l ac for a dishones or i s eq i alen . (C e .C f A ea , 263 SCRA
p rpose or moral obliq i . S ch m s be s bs an ia ed 151 [1996])
b e idence.
4
The inj nc ion bond ans ers onl for damages hich
There is no adeq a e proof ha ABS-CBN as inspired ma be s s ained b he par agains hom he inj nc ion
b malice or bad fai h. I as hones l con inced of he is iss ed, he reason of he iss ance hereof, and no o
meri s of i s ca se af er i had ndergone serio s ans er for damages ca sed b ac a ions of plain iff, hich
nego ia ions c lmina ing in i s formal s bmission of a draf ma or ma no be rela ed a all o he implemen a ion of
con rac . Se led is he r le ha he ad erse res l of an he inj nc ion. (Va e c a . C f A ea , 263 SCRA
ac ion does no e e make he ac ion rongf l and s bjec 275 [1996])
 o0o

C g 2021 Ce a B S , I c. A g e e ed.