THE Court of Appeals has revived the P2.2-billion compulsory counter suit that television giant ABS-CBN Corp. filed against former Wowowee host Willie Revillame for breaching his contract with the network seven years ago.
The court’s Special Seventh Division held that Quezon City Regional Trial Court Branch 76 erred when it dismissed ABS-CBN’s counter-damage suit on the ground of forum shopping.
ABS-CBN is seeking damages of P1.7 billion as of November 2010 plus P426,917,646 for each week that Revillame continued violating his contract, P20 million in moral damages, P20 million for exemplary damages and another P20 million in attorney’s fees and litigation expenses.
The appellate court agreed with ABS-CBN’s argument that the lower court should not have dismissed its compulsory counterclaims on the basis of forum shopping considering that the issue was still pending before the Supreme Court.
The appellate court also agreed with the television network that it was not barred from suing over a breach of contract just because the agreement had ceased to take effect on Sept. 10, 2011.
“The trial court is perfectly aware that in dismissing the counterclaims before it on the basis of forum shopping, it would, in effect, be antecedently resolving the very question raised before the Supreme Court, the court said.
“That is, whether our Former First Division correctly declared that appellant ABS-CBN indeed engaged in forum shopping. Hence, in actually doing so, the trial court rendered moot and moribund exactly what was for the Supreme Court to decide.”
The CA also said the trial court erred when it dismissed ABS-CBN’s compulsory counterclaims for the reason of expiration of the agreement.
“The parties certainly stipulated that the agreement would cease to take effect on September 10, 2011. But it is clear that appellant ABS-CBN counter-sued appellee Revillame for purported violations of the agreement committed during its effectivity, the court said.
“The conclusion of the agreement cannot be interpreted as a bar which would [prevent] appellant ABS-CBN from seeking judicial recourse for violations allegedly committed by appellee Revillame during the life of the contract.”
In 2010 Revillame filed an P11-million damage suit against his old employer and asked the court to make a judicial confirmation of the end of his contract with ABS-CBN.
In response, the network slapped him with a compulsory counter-claim for allegedly reneging on his contract set to expire in 2011.