Charged were Fidel Yu, Summit Sports’ chairman and president, lawyer Pablo Ronquillo, vice president and chief executive officer, and Frederick Orticio, director and corporate secretary.
In a five-page complaint, lawyer Renato Bello, IBC-13 president and CEO, said they could not encash the 12 Equitable-PCI Bank checks issued by Summit because they lack either the signature of Ronquillo or Orticio since the bank requires the signatures of the two officials of Summit.
"Upon IBC’s subsequent discovery of the respondents’ deception, IBC demanded for SSWC’s completion of the required number of signatories therein, to no avail," Bello said.
He said three of the checks, with an amount of P2.5 million each, were also dishonored because of insufficient funds.
Bello claimed that the respondents intentionally issued the checks to the TV station with incomplete signatures despite knowing that both signatures were required for proper encashment.
The TV station had been airing PBA games simultaneously with the National Broadcasting Network-4 after winning the bid for the coverage rights of basketball games for 2003 to 2005 seasons. The SSWC and the two TV stations entered into a memorandum of agreement.
Under the Memorandum of Agreement (MOA) between the IBC-13 and NBN-4, the former’s participation was agreed to be reduced to the role of a mere blocktime provider, with a guaranteed payment of airtime by the respondents.
The IBC 13 stopped airing PBA games after the respondents reportedly failed to pay the airtime fee.