SC dismisses ABS-CBN case vs hosts, GMA 7

MANILA, Philippines -  The Supreme Court has recently denied an appeal by ABS-CBN to overturn a Court of Appeals ruling that upheld the validity of the move by Mel Tiangco and Jay Sonza to rescind their contracts with ABS-CBN, according to a statement released by GMA 7.

The SC also said there was no evidence that GMA 7 enticed Tiangco and Sonza to break away from ABS-CBN because by the time the two transferred to GMA 7, they had already rescinded their agreements with their former network.

Tiangco and Sonza used to host ABS-CBN’s Sunday television show “Mel & Jay.” ABS-CBN accused Tiangco, who appeared in a detergent commercial, of violating a circular that prohibits talents in its radio and news and public affairs departments from appearing in commercial advertisements without the network’s prior written approval.

Tiangco was suspended without pay from her post as co-anchor of TV Patrol and the Mel & Jay radio program for three months, but not from her Sunday show. Sonza resigned from the television show, while Tiangco went on indefinite leave.

ABS-CBN sued the two hosts for specific performance, injunction and damages before the regional trial court in Quezon City in 1996 to compel them to perform their 1994 agreements and not to appear in any other television or radio station until 1997. 

The Quezon City court decided on June 26, 1998 that Tiangco and Sonza had a valid cause to rescind their agreement with ABS-CBN, and that GMA had no part in the move.

ABS-CBN appealed to the CA, which affirmed the lower court’s decision. In its Aug. 6, 2003 decision, the CA held that there is no evidence that proves Tiangco violated the prohibition when she appeared in the detergent commercial. 

The CA also said ABS-CBN’s move to suspend Tiangco was without sufficient basis in law and constitutes a “substantial and grievous” breach of their contract, justifying Tiangco’s unilateral action in dissolving the agreement.

ABS-CBN had protested that Sonza may not base his rescission on that of Tiangco, but the CA considered the fact that Sonza is redundant without Tiangco in the show.