Supreme Court junks P101-million damage suit vs defunct paper

MANILA, Philippines - Businessman Alfonso Yuchengco has failed in his bid in the Supreme Court (SC) to collect P101 million from the owner of the now defunct daily newspaper Manila Chronicle.

In a two-page resolution released last March 30, the Third Division of the SC denied Yuchengco’s appeal and instead affirmed its 2009 ruling that granted only P38.5 million from the newspaper for publishing libelous articles against him.

Petitioner had filed a motion for reconsideration and sought reinstatement of an earlier ruling of the Makati City Regional Trial Court granting the amount he demanded.

But the SC ruled: “In the case at bar, the amount of damages was reduced precisely after the SC had considered the particular circumstances surrounding the case, the financial and social stature of the parties and the degree of suffering caused to petitioner.”

Yuchengco, in his motion, argued that it was unwarranted for the SC to have reduced the amount of damages that were originally awarded to him.

He alleged that the SC disregarded certain factors that are relevant in the fixing of the proper amount of moral and exemplary damages that should be awarded to him, particularly the social and financial standing of the parties.

But the SC stressed that the amount was reduced based on its careful evaluation of the circumstances surrounding the case as well as the financial standing of the petitioner and the respondents.

The high tribunal held that Yuchengco failed to point out any error in the wisdom of the decision issued by Court to warrant its reversal.

In its assailed ruling, the SC reversed an earlier decision of the Court of Appeals that dismissed the civil suit filed by Yuchengco seeking damages against his business rival Roberto Coyiuto Jr., owner of Manila Chronicle Publishing Corp. and newsmen Neil Cruz, Noel Cabrera (now deceased), Gerry Zaragoza, Donna Gatdula, Rodney Diola, Raul Valino and Thelma San Juan.

The SC reinstated the ruling of the Makati RTC that found them liable for damages but modified the total amount of P101 million.

Instead, the Court ordered the officers and writers of Manila Chronicle to jointly pay the amount of P2 million for moral damages, and P500,000 for exemplary charges, while publisher Coyiuto was penalized with the amount of P25 million in moral damages, and P10 million for exemplary damages.

All defendants were ordered to pay Yuchengco jointly and severally, P1 million as attorney’s and legal costs.

Yuchengco alleged that in the last quarter of 1994, the Manila Chronicle published a series of defamatory articles against him, branding him as a “Marcos crony” and naming him as a “corporate raider.”

Yuchengco further said that the articles accused him of acting as a dummy for the Marcos and Romualdez clans in Benguet Corp., which company sought to take over the management of Oriental Petroleum Mineral Corp.

Another article, according to him, portrayed him as being an unfair and uncaring employer when the employees of Grepalife Corp., of which he is a chairman, staged a strike.

Furthermore, the subject articles accused him of inducing Rizal Commercial Banking Corp. (RCBC) to violate the provisions of the General Banking Act.

The Court held that the failure of the respondents to get the side of Yuchengco prior to the publication of the articles was “fatal” to their defense.