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ABS-CBN vs.

CA
GR No. 128690
JANUARY 21, 1999
FACTS
Viva, through Del Rosario, offered ABS-
CBN through its vice-president Charo
Santos-Concio, a list of 3 film packages or 36
titles from which ABS-CBN may exercise its
right of first refusal

Mrs. Concio informed Vic through a letter that


they can only purchase 10 titles.

Del Rosario approached ABS-CBN's Ms.


Concio with a list consisting of 52 original
movie titles as well as 104 re-runs proposing
to sell to ABS-CBN airing rights for P60M
(P30M cash and P30M worth of television
spots)
Del Rosario and ABS-CBN general
manager, Eugenio Lopez III met wherein
Del Rosario allegedly agreed to grant rights
for 14 films for P30M

Del Rosario and Mr. Graciano Gozon of


RBS Senior vice-president for Finance
discussed the terms and conditions of
Viva's offer to sell the 104 films, after the
rejection of the same package by ABS-CBN

Ms. Concio sent the proposal draft of 53


films for P35M which Viva's Board
rejected since they will not accept anything
less than P60M

Viva granted RBS exclusive grants for


P60M
RTC: Issued TRO against RBS in showing 14
films as filed by ABS-CBN.

RBS also set up a cross-claim against VIVA

RTC: ordered ABS-CBN to pay RBS P107,727


premium paid by RBS to the surety which
issued their bond to lift the injunction,
P191,843.00 for the amount of print
advertisement for "Maging Sino Ka Man" in
various newspapers, P1M attorney's fees, P5M
moral damages, P5M exemplary damages and
costs. Cross-claim to VIVA was dismissed.

ABS-CBN appealed. VIVA and Del Rosario also


appealed seeking moral and exemplary damages
and additional attorney's fees.
ISSUE:
1. WON RBS is entitled to an award of moral damages upon
grounds of debased reputation.

No.

The award of moral damages cannot be


granted in favor of a corporation because, being
an artificial person and having existence only in legal
contemplation, it has no feelings, no emotions, no
senses, It cannot, therefore, experience physical
suffering and mental anguish, which call be
experienced only by one having a nervous system.

No moral damages can be awarded to a juridical


person. The statement in thecase of People vs Manero
and Mambulao Lumber vs PNB is a mere obiter dictum
hence it is not binding as a jurisprudence.
If the obligor acted with fraud, bad faith,
malice, or wanton attitude, he shall be
responsible for all damages which may be
reasonably attributed to the non-
performance of the obligation. In crimes and
quasi-delicts, the defendant shall be liable
for all damages which are the natural and
probable consequences of the act or omission
complained of, whether or not such damages
has been foreseen or could have reasonably
been foreseen by the defendant. Actual
damages may likewise be recovered for loss
or impairment of earning capacity in cases of
temporary or permanent personal injury, or
for injury to the plaintiff's business standing
or commercial credit.

The claim of RBS for actual damages did not


arise from contract, quasi-contract, delict, or
quasi-delict. It arose from the fact of filing of
the complaint despite ABS-CBN's alleged
knowledge of lack of cause of action.
2. Whether or not a contract was perfected in
meeting between the representatives of the two
corporations

As a rule, corporate powers, such as the power; to


enter into contracts; are exercised by the Board
of Directors. But this power may be
delegated to a corporate committee, a
corporate officer or corporate manager. Such a
delegation must be clear and specific.

In the case at bar, there was no such delegation to


Del Rosario. The fact that he has to present the
counteroffer to the Board of Directors of Viva is
proof that the contract must be accepted first by
the Viva’s Board. Hence, even if Del Rosario
accepted the counter-offer, it did not result to a
contract because it will not bind Viva.

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