ABS-CBN loses claim over Marcos crony

ABS-CBN Broadcasting Corp. cannot recover P11,157,200 from the estate of the late Roberto Benedicto for RPN 9’s use of its studios, facilities and equipment beginning 1973 as the authority to enter, occupy and operate them had legal basis emanating from Proclamation No. 1081 that granted then president Ferdinand Marcos martial law powers, the Court of Appeals (CA) has ruled.

“In general, fraud may be defined as the voluntary execution of a wrongful act, or a willful omission, knowing and intending the effects which naturally and necessarily arise from such act or omission,” read the decision.

“But with legal basis derived from a pronouncement with the force of law, there is no reason for the courts of law to declare RPN’s entry, occupancy and operation of ABS-CBN’s studios, facilities and equipment as fraudulent, forceful and illegal.”

The 10th Division affirmed the Manila regional trial court’s decision denying ABS-CBN’s claim.

The broadcast giant’s claim is unwar- ranted considering that RPN’s occupation and operation of ABS-CBN’s facilities and equipment were “sanctioned by law, formalized by the lease agreement and consummated through the meeting of the minds,” the CA said.

The government sequestration of ABSCBN’s studios, facilities and equipment, as well as RPN’s authority to enter, occupy and operate the same, were legal, the CA added.

The CA said ABS-CBN freely signified its consent to the lease agreement.

“ABS- CBN therefore cannot, in the same breath, aver that RPN’s actuations in the execution of the lease agreement were fraudulent, or that the contract was more a ‘cover-up ploy’ than real and to insist on enforcing the rental obligation therein,” read the decision.

ABS-CBN said its contract with RPN was a product of “fraudulent inducement” that it would be fully compensated pursuant to the terms of the lease agreement and of veiled threats on possible government confiscation of ABS-CBN.