The Supreme Court has overturned the ruling rendered by the Court of Appeals reviving the over P1 billion compulsory counterclaim that television giant ABS-CBN Broadcasting Corporation sought against former Wowowee host Willie “Kuya Wil” Revillame for breaching his contract with the network in 2010.
In a 22-page decision penned by Association Justice Maria Filomena D. Singh, the SC’s Third Division also dismissed two other petitions filed by ABS-CBN concerning copyright infringement against Revillame and TV5 owned by ABC Development Corporation (ABC Corporation) due to “deliberate and willful forum shopping.”
According to the tribunal, the issues “actually and directly resolved in a former suit cannot again be raised in any future case between the same parties involving a different cause of action.”
In 2010, Revillame filed a P11-million damage suit against ABS-CBN, asking 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.
The High Court took judicial notice of the resolution dated October 16, 2019, of the SC’s First Division in ABS-CBN Corporation v. ABC Development Corporation, et al., which affirmed the decision dated September 5, 2011, and the resolution, dated April 26, 2012, of the Court of Appeals.
These declared ABS-CBN guilty of forum shopping in filing a complaint for copyright infringement before the Regional Trial Court (RTC) of Makati City while seeking judicial relief through its compulsory counterclaim in the rescission and damages case before the Quezon City RTC.
“The subject matter in the Copyright Infringement Case and in ABS-CBN’s compulsory counterclaim in the Rescission and Damages Case are similar, both involving Revillame’s alleged breach of his Agreement with ABS-CBN,” the SC noted.
“In both cases, ABS-CBN sought to stop Revillame from performing work in ‘Willing Willie’ with ABC Corporation on the argument that such work is similar to his work in ‘Wowowee’ with ABS-CBN under their Agreement and, consequently, to collect damages resulting from such acts,” it said.
Based on the records, Revillame filed on August 23, 2010, a civil action before the QC RTC seeking to cancel, terminate, and rescind his three-year contract with ABS-CBN.
Under the contract, Revillame was to host the show “Wowowee” on the ABS-CBN network until September 10, 2011 “or upon cancellation or earlier termination of the program.”
The suit was prompted by Revillame’s withdrawal from “Wowowee” on May 5, 2010, which was followed by ABS-CBN’s refusal to release Revillame as its talent and the network’s subsequent replacement of “Wowowee” with a different program.
On September 15, 2010, ABS-CBN filed its answer with a compulsory counterclaim, praying for liquidated damages in the amount of over P700 million, plus over P400 million for each further violation by Revillame, or for each week of violation of their contract.
A month later, ABS-CBN applied for a temporary restraining order (TRO) and/or Writ of Preliminary Injunction to restrain Revillame from performing with TV5 on a similar show, titled “Willing Willie.”
The RTC denied the TRO application but ordered Revillame to post a bond in the amount of P426,917,646.96 as security for any damage that may be incurred by ABS- CBN.
ABS-CBN then proceeded to file a complaint with the Makati RTC for copyright infringement against Revillame, ABC Corporation, Wilproductions, Inc.
This prompted ABC Corporation and Espinosa to go to the CA to restrain the Makati RTC from proceeding with the copyright infringement case.
The CA ruled in favor of ABC Corporation finding that ABS-CBN engaged in forum shopping for filing two suits: (1) its Compulsory Counterclaim in Civil Case No. Q-10-67770 pending before the Quezon City RTC and (2) the Complaint for Copyright Infringement pending before the Makati RTC.
The appellate court found that both cases are based on one cause of action: Revillame’s alleged breach of its contract with ABS-CBN.
The Supreme Court would later affirm the CA’s ruling in a separate case.
Following the CA’s dismissal of the copyright infringement complaint, ABC Corporation filed a motion to dismiss ABS-CBN’s compulsory counterclaim which was granted by the trial court.
This prompted ABS-CBN to appeal to the CA, which ruled in its favor and reinstated its compulsory counterclaim.
This was challenged by Revillame in his present petition before the Supreme Court, which ruled in his favor.