The Court of Appeals has directed Melco Crown Entertainment Leisure Corp., the operator of City of Dreams Manila, to stop pirating employees from its competitor, Solaire Resort & Casino.
The appellate court reminded MCE to comply with the provisions of the compromise agreement it signed with Solaire’s operator, Bloomberry Resorts and Hotels Inc., in 2014 prohibiting MCE from hiring any person formerly or currently employed by the latter for a period of six months from the date of termination of the said person’s employment.
The said agreement was approved by the Regional Trial Court of Parañaque City on Dec. 2, 2014 and paved the way for the termination of a previous civil case between the two parties.
In a 13-page decision, the CA’s Fifteenth Division, through Associate Justice Jhosep Lopez, also ruled that the compromise agreement also covered MCE’s parent companies and subsidiaries.
The appellate court overturned and set aside an order issued by a Parañaque City court which dismissed the motion filed by BRHI seeking full implementation of the compromise agreement to cover MCE’s parent companies and subsidiaries.
In its motion filed before the Parañaque RTC, Bloomberry accused MCE of violating the compromise agreement when it hired Fong Hio Lon, an employee of Solaire.
In its motion filed on Sept. 4, 2015, the Solaire casino operator said it hired Fong as director for Premium and Player Development for Solaire on Sept. 1, 2013.
As part of his duties, Fong was tasked with attracting and coordinating with persons or entities, known as junket operators, who are engaged in the business of organizing groups of foreign casino players from different countries, and bringing them to recognized casino destinations.
It added that these casino players and junket operators are crucial to BRHI’s business.
According to Bloomberry, Fong’s employment contract incorporated a notice period which required him to give at least 120 calendar days prior written notice to the company before resigning.
Fong’s contract also prohibits him from joining other companies engaged in the casino or hotel business in the country for a period of one year.
On Jan. 8, 2015, Fong informed his immediate supervisor about his intention to resign from his post and requested to recognize his official law working date on Jan. 22, 2015 and to waive the notice period. His request was denied.
On Feb. 8, 2015, Fong stopped reporting to work for Solaire and joined Crown Resort Limited as director for sales operations.
BRHI stressed that City of Dreams-Manila, the casino-hotel business of Crown Resorts Limited, is operated by MCE.
MCE Leisure is then the parent company of Crown, and is thus covered by the compromise agreement, Bloomberry said.
In opposing BRHI’s motion, MCE argued that the word parent in its compromise agreement does not apply to employees who are employed outside of the country and that it was impossible for it to prevent Crown Resorts Limited from hiring Fong.
The CA, however, pointed out that there was no provision in the agreement that would support MCE’s contention.
“No qualifying words were placed in the agreement to describe the ‘parent companies’ of respondent MCE Leisure Corporation. As we see it, the interpretation being advanced by respondents see to unduly restrict the scope of the compromise agreement, which it has entered into with petitioner,” the court said.
“Respondent MCE Leisure Corporation specifically undertook to bind itself, together with its parent companies and subsidiaries to comply with the provisions of the compromise agreement,” it added.