GMA Network Inc. initially filed with the Regional Trial Court of Quezon City a complaint for breach of contract, declaration of nullity of contract, tort, and injunction an damages, with prayer for temporary restraining order (TRO) and/or writ of preliminary injunction against respondents after Valdes abandoned her talent agreement with GMA when ABS-CBN employed her.
Judge Rogelio Pizarro issued the writ of preliminary injunction to prevent the disclosure by Valdes of GMA’s confidential information or trade secrets to ABS-CBN.
The CA ruled that Valdes unilaterally terminated her working relationship with GMA and transferred to ABS-CBN without any wrongdoing on the part of GMA. It debunked the theory of Valdes and ABS-CBN that the talent agreement was no longer effective and held that it is not for Valdes and ABS-CBN to determine for themselves that the Agreement is no longer in force and in effect. Until and unless a court of competent jurisdiction makes the pronouncement, Valdes is bound to fulfill her covenant not to render services in other mass media network during the lifetime of the agreement, the CA said.