CA reverses itself on libel case vs defunct newspaper

MANILA, Philippines – The Court of Appeals reversed an earlier decision that found former editors and reporters of the defunct Manila Chronicle Publishing Corp. guilty of libel and ordered them to pay businessman Alfonso Yuchengco the amount of P101 million.

In its 10-page decision penned by Associate Justice Amelita Tolentino, the CA’s Special Former Fifteenth Division reversed its March 18, 2008 ruling saying that it would have a “devastating and catastrophic effect” on the freedom of speech and of the press.

Last March 18, the CA affirmed the Nov. 8, 2002 order of the Makati City Regional Trial Court that found Raul Valino, Neal Cruz, Ernesto Tolentino, Noel Cabrera, Thelma San Juan, Gerry Zaragoza, Donna Gatdula, Rodney Diola and Robert Coyiuto guilty of libel and ordered them to pay Yuchengco P101 million in damages.

The CA, acting on the motion for reconsideration filed by the defendants, acknowledged that it had failed to consider the proposition of the defendants that the subject of the complaint falls within the concept of privileged communication implicit in the constitutional guarantee of freedom of the press.

Yuchengco at present holds a Cabinet rank after being appointed as Presidential Adviser on Foreign Affairs on Jan. 30, 2004.

“Although malice is the essence of the crime of libel, we find that it is absent in the case at bar. The records are bereft of proof of actual malice on the part of the defendants-appellants for the imputations made in the subject articles,” the CA said.

Yuchengco had also previously occupied other prominent positions in the government, such as Philippine Permanent Representative to the United Nations, Presidential Special Envoy to China, Japan, Korea, Presidential Assistance on APEC (Asia-Pacific Economic Conference) Matters, Ambassador Extraordinary and Plenipotentiary of Republic of the Philippines to the People’s Republic of China and Chairman of the Council of Private Sector Advisors to the Philippine Government on the Spratlys Issue.

In addition, Yuchengco also heads the Yuchengco group of companies which includes Rizal Banking Commercial Corp. (RCBC), Malayan Insurance, Great Pacific Life Assurance Co., and the Mapua Institute of Technology.

Yuchengco also served as chairman of the board of directors of the Philippine Long Distance Telephone Co.

The CA said that when public figures complain of libel, the provision must be construed in the light of the constitutional guarantee of free expression and upholding the standard of actual malice with the necessary implication that a statement regarding a public figure, if true, is not libelous.

The appellate court noted that the subject articles deal with the operations of corporations which are imbued with public interest, considering that Benguet Corp. and Oriental Petroleum and Mineral Resources are both publicly listed corporations to which the general public, more particularly, the small investors, have a stake.

In his complaint, 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 calling him a corporate raider.

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

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

The appellate court earlier noted that there is sufficient evidence to establish that Coyiuto abused his right as owner and chairman of the Manila Chronicle board by causing the publication of a series of defamatory articles against Yuchengco.

The CA said Coyiuto used his newspaper to vent his personal spite and hatred against Yuchengco, his rival in the bid for control of Oriental Petroleum.