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Mrs. Concio informed Vic through a letter that they can only purchase
10 titles to be schedules on non-primetime slots because they were very
adult themes which the ruling of the MTRCB advises to be aired at 9:00
p.m
February 27, 1992: Del Rosario approached ABS-CBN's Ms. Concio with
a list consisting of 52 original movie titles as well as 104 reruns proposing to sell to ABS-CBN airing rights for P60M (P30M cash
and P30M worth of television spots)
April 06, 1992: Del Rosario and Mr. Graciano Gozon of RBS Senior vicepresident for Finance discussed the terms and conditions of Viva's offer to
sell the 104 films, after the rejection of the same package by ABS-CBN
April 07, 1992: Ms. Concio sent the proposal draft of 53 films for P35M
which Viva's Board rejected since they will not accept anything less than
P60M
April 29, 1992: Viva granted RBS exclusive grants for P60M
Issues:
How are the damages awarded?
Is RBS entitled to damages?
Is Viva entitled to damages
Holding: The SC REVERSED the decision of the CA, except as to
unappealed award of attorney's fees in favor of VIVA Productions,
Inc.
Ratio:
One is entitled to compensation for actual damages only for such pecuniary
loss suffered by him as he has duly proved. The indemnification shall
comprehend not only the value of the loss suffered, but also that of the
profits that the obligee failed to obtain. In contracts and quasi-contracts the
damages which may be awarded are dependent on whether the obligor
acted with good faith or otherwise, It case of good faith, the
damages recoverable are those which are the natural and probable
consequences of the breach of the obligation and which the parties have
foreseen or could have reasonably foreseen at the time of the constitution of
the obligation. If the obligor acted with fraud, bad faith, malice, or wanton
attitude, he shall be responsible for all damages which may be reasonably
attributed to the non-performance of the obligation. In crimes and quasidelicts, the defendant shall be liable for all damages which are the natural
and probable consequences of the act or omission complained of, whether or
not such damages has been foreseen or could have reasonably been
foreseen by the defendant. Actual damages may likewise be recovered for
loss or impairment of earning capacity in cases of temporary or permanent