QC Regional Trial Court sides with GMA in breach of contract complaint against former employee | GMANetwork.com - Corporate - Articles

Judge Hernandez-Calledo rendered judgment in favor of GMA as Villanueva’s failure to comply with the stipulations in his employment contract with GMA constituted a breach of contract.

QC Regional Trial Court sides with GMA in breach of contract complaint against former employee

February 16 2016

The Quezon City Regional Trial Court decided in favor of GMA Network, Inc. in a complaint for breach of contract and damages filed by the latter against a former employee and the multimedia news site Rappler, Inc.

The complaint stemmed from the employment of former GMA News and Public Affairs Senior Manager and Head of Digital News Gathering and Social Media Michael Josh H. Villanueva as Rappler’s Special Projects Director and Desk Editor which violated the one-year non-compete clause in his contract with GMA.

In its December 18, 2015 decision, presiding Judge Aurora A. Hernandez-Calledo upheld the validity of the non-compete clause, as supported by law and jurisprudence.

The Court found reasonable from the standpoint of public policy the restrictions to time and trade imposed by the employment contract which involved a time limit of one year. It also said that the trade limit did not prohibit Villanueva from seeking employment with another company for as long as it is not a competitor. Villanueva was employed by the Network from October 24, 2001 until his resignation on October 21, 2011. He was later employed by Rappler on December 16, 2011, well within the one-year non-compete clause in his contract with GMA.

Contrary to the defendants’ statements, the RTC also found sufficient the evidence presented establishing GMA and Rappler as competitors despite having different business purposes, “at least with respect to digital and multimedia journalism and to their respective shares of online audience interested in the Philippines.”

Furthermore, the Court concluded that Villanueva’s duties and responsibilities in GMA and the competing company Rappler were similar in nature making “GMA’s trade secrets vulnerable to its detriment.” It also stressed that Villanueva’s managerial position while in GMA made him privy to confidential information, best practices and knowledge under his employment.

In conclusion, Judge Hernandez-Calledo rendered judgment in favor of GMA as Villanueva’s failure to comply with the stipulations in his employment contract with GMA constituted a breach of contract.

All other counterclaims filed by the defendants were also dismissed for lack of merit.

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