Court bars competitor from hiring former SMFI workers

The Pasig City Regional Trial Court has issued a writ of preliminary injunction "enjoining and restraining" some former employees of San Miguel Foods Inc. (SMFI) "from continuing their employment or engagement with Bounty Agri Ventures Inc. and/or Tyson Agro Ventures," competitors of SMFI.

Named as defendants in the case are Ronald Mascariñas, Pauline Mabesa, Mark Trias, Lourdes Villarete, Dominador Magtoto, Leonardo Mantanguihan, Joseph Alan Costales, Armi Avila, Jorge Avila, Romeo Rey Vidola, David Sabio Jr., Augusto Badiong, Danilo Boy, Arnel de la Cruz, Mardigrace Ortiz, Rodolfo Consuelo, Romeo Sabacan, Renato Fontillas, Dani Gywn Tupas, Jerome Cinco, Nelson Manigo, Carlos Pelayo Jr., Russel Montaner, Teodolito Pilares, Vicente Manalo, Val Manzo, Edilberto Cornejo, Gloria Marcelo and Alfredo Bautista.

SMFI last year filed a suit at the Pasig RTC alleging that these individuals restrained by the court were former employees of PureFoods Corp. (PFC) who "were handpicked by" SMFI, "to hold key positions in contract growing operations, nutrition, technical services, quality control, business planning and sales of SMFI "when it acquired Purefoods Corp. and its operations were integrated with those of SMFI."

The company charged that these employees "acquired information on the plans and strategies of" SMFI "with the intention of resigning successively and joining Tyson Agro Ventures Inc. (Tyson) and its sister company, Bounty Agri Ventures Inc. (BAVI), which they subsequently did."

"As employees of BAVI and Tyson holding positions equivalent or comparable to those they occupied at SMFI and Purefoods, and in order to effectively discharge their positions at BAVI and Tyson, defendants would inevitably disclose SMFI’s confidential information, trade secrets and business strategies which could result in grave and irreparable damage and harm to its business operation," SMFI said in its suit.

In issuing the writ of preliminary injunction, the Pasig RTC said the defendants offered "only mere denials" against SMFI’s allegations and failed to submit proof that they did not receive confidential information, trade secrets or business strategies. The court noted that "mere denials constitute self-serving negative evidence which cannot obtain greater evidentiary weight than the declaration of witnesses who testify on affirmative matters."

It also stressed that "information and knowledge acquired by defendants during the integration of SMFI and PFC appear to be confidential or secret and their use and disclosure by the defendants, in their new positions would probably work injustice to plaintiff."

The court added that these information "constitute methods, techniques or processes developed by SMFI and PFC which are vital to their poultry business which defendants would not have been given access to where it not for their former employment in said corporation."

These methods, techniques and processes, on the other hand, "cover all aspects of the poultry business, from breed selection, feeds, brand and product positioning, operations, sales, marketing, finance, capacity and processing expansion," the Pasig RTC pointed out.

"This Court cannot help but give importance to the undisputed fact that the defendants all admit to having participated in the integration process of SMFI and PFC only to resign successively and then transfer to competitors sister companies BAVI and/or Tyson," the Pasig RTC continued in its preliminary injunction.