Ayer Productions Vs Capulong
Ayer Productions Vs Capulong
Ayer Productions Vs Capulong
SUPREME COURT
Manila
EN BANC
JUAN PONCE ENRILE, Petitioner, vs. HON. IGNACIO CAPULONG and AYER
PRODUCTIONS PTY. LTD., Respondents.
SARMIENTO, J.:
The petitioner filed this Petition to stop the respondent court from acting on the
private respondent's application for damages arising from the wrongful issuance of
a writ of preliminary injunction by that court, later nullified by this Court in Ayer
Productions Pty. Ltd. v. Capulong. 1 Ayer's findings are as follows:
On April 29, 1988, this Court rendered its Decision, the dispositive portion of which
reads as follows:
a) The Petitions for Certiorari are GRANTED DUE COURSE, and the
Order dated 16 March 1988 of respondent trial court granting a Writ of
Preliminary Injunction is hereby SET ASIDE. The limited Temporary
Restraining Order granted by this Court on 24 March 1988 is hereby
MODIFIED by enjoining unqualifiedly the implementation of respondent
Judge's Order of 16 March 1988 and made PERMANENT, and chanrobles virtual law library
3
SO ORDERED. chanrobles virtual law library
On May 16, 1988, the petitioner filed a Motion for Reconsideration. 4 On June 9,
1988, this Court denied the Motion with finality.5 On June 20, 1988, our Decision
was entered in the Book of Entries. 6 chanrobles virtual law library
On November 24, 1988, the private respondent filed a "Motion to Resolve" with the
respondent court, in connection with its Motion to Dismiss filed on March 9,
1988. 7chanrobles virtual law library
On January 19, 1989, the respondent court issued an Order, granting the Motion to
Dismiss. 8 chanrobles virtual law library
On February 10, 1989, the private respondent filed a "Motion for Reconsideration
and/or Application to Hold Plaintiff and the Surety Bond Company the First
Integrated Bonding Insurance Company, Inc. Jointly and Severally Liable on the
Bond." 9 The private respondent claimed that as a consequence allegedly of the
Writ of Preliminary Injunction, it was forced to "[move] the filming of the picture to
Sri Lanka after an extensive locational survey," 10 that "[the] move caused over
[sic] budget travelling costs of entire cast and crew from Manila to Sri Lanka and
Australia; additional days of shooting in excess of original schedule; additional
communications costs; costs for building additional sets and decorations in Australia
and Sri Lanka; insurance costs; location survey costs, accommodations; and special
unit shooting , cost," 11 and that "as a direct result of [the] preliminary injunction
issued in this case, [it] suffered losses and damages totalling FOUR HUNDRED
THIRTY-EIGHT THOUSAND SEVENTY-THREE AUSTRALIAN DOLLARS . . ." 12 It also
sought to hold the petitioner (along with its surety, the First Integrated Bonding
Insurance Company, Inc.) liable on his (the petitioner's) bond, FIBICI Board No.
JCL-(8)00323, in the sum of P2,000,000.00, Philippine Currency. 13 chanrobles virtual law library
Subsequently, on February 12, 1989, the private respondent filed a "Notice to Take
Oral Deposition," in support of its claim for damages, of four witnesses, all residents
of New South Wales, Australia, before Consul Petronila Carbonell of the Philippine
Consulate General of Australia, Sydney,
Australia. 14
chanrobles virtual law library
On February 28, 1989, the petitioner filed a "Motion to Suppress Notice to Take
Deposition and/or For Protective Order," on the ground, inter alia, that the private
respondent's right to damages under the bond was not indubitable and prayed that
pending the determination thereof, the deposition-taking be postponed. The private
respondent opposed the Motion. chanroblesvirtualawlibra ry chanrobles virtual law library
After a further exchange of pleadings, the respondent court, on May 2, 1989, issued
an Order, the dispositive portion of which reads as follows:
According to the respondent court, the private respondent had the right to an
award of damages, "resulting from [the Supreme Court's] ruling that [the
petitioner] is not entitled to the writ [of preliminary injunction]." 16 chanrobles virtual law library
On May 9, 1989, the petitioner was served a copy of another "Notice to Take Oral
Deposition." 17 On May 15, 1989, he filed a "Motion to Suppress Notice to Take Oral
Deposition." 18 On May 19, 1989, he filed a "Motion for Reconsideration (Re: Order
dated 2 May 1989). 19 The private respondent opposed it. chanroblesvirtualawlibra ry chanrobles virtual law library
On June 1, 1989, the respondent Court issued an Order, the dispositive portion of
which reads as follows:
WHEREFORE, the motion for reconsideration filed by plaintiff, is hereby
DENIED. 20 chanrobles virtual law library
. . . The Court finds and resolves that the application or claim for
damages of the [private respondent] was filed within the reglementary
period of time, considering that the fifteen (15) day period should be
counted from the receipt of the Order of this Court dismissing this
case, dated January 19, 1989., and not from the receipt of [the private
respondent] of the decision of the Supreme Court dated April 29, 1988
. . . and this Court in effect recognizes the right of [the private
respondent] to file its application and claim for damages under the
injunction bond filed by [the petitioner]. 21 chanrobles virtual law library
On June 6, 1989, the petitioner filed the present Petition for Certiorari and
prohibition with preliminary injunction and/or restraining order. The petitioner, as
we indicated, asks this Court to stop the respondent court from conducting further
proceedings below, specifically, to nullify its Order, dated May 2, 1989, and its
Order, dated June 1, 1989. He submits that both Orders were issued with grave
abuse of discretion, to wit:
G.R. No. 88373 (Juan Ponce Enrile vs. Hon. Ignacio Capulong, et al.). -
Acting on the special civil action for certiorariand prohibition with
prayer for a writ of preliminary injunction and/or restraining order, the
Court Resolved, without giving due course to the petition, to require
the respondents to COMMENT thereon, within then (10) days from
notice.chanroblesvirtualawlibrary chanrobles virtual law library
On June 21, 1989, the private respondent filed its comment, holding that:
After exchanges of further pleadings, this Court issued a Resolution considering the
private respondent's Comment as an Answer, giving due course to the petition, and
correcting the parties to file their Memoranda. 28 chanrobles virtual law library
A rule firmly settled in this jurisdiction is that a claim for damages arising from a
wrongful injunction should be filed in the main case with notice to the surety. 29 If
the lower court's decision, denying injunction, is however appealed to the Appellate
Court, and the latter affirms the denial, the application may be commenced in the
Appellate Court, which may either direct a remand of the case for reception of
evidence or otherwise hear the claim itself. 30 So also, it must be commenced
before judgment attains finality. 31 Otherwise, it is barred. Thus, it is provided
under Section 9, Rule 58, of the Rules of Court, in relation to Section 20, Rule 57
thereof -
It has been held that this procedure is mandatory, and the failure to observe it
deprives the aggrieved party the right to proceed against the surety bond. 32 chanrobles virtual law library
The Court finds that the single most important question that confronts it pertains to
whether or not the claim for damages was filed before finality of judgment.
Corollarily, whose "judgment" is to be considered, ours or the respondent court's?
library
chanrobles virtual law
The petitioner contends that the reckoning point should be prior to June 20, 1988,
the date our Decision became final by virtue of the issuance of an Entry of
Judgment. On the other hand, the private respondent insists that our Decision
delved alone on the incidental issue of whether or not a writ of preliminary
injunction was proper, and avoided the case on the merits, amongst others, as to
damages. Hence, so it is submitted, the departure point should be January 19,
1989, the date the respondent Judge issued the Order dismissing the case. The
issue then turns on whether or not our Decision was one on the merits of Civil Case
No. 88-151, for if it was so, it is the Decision to be considered, and the point of
reference should be prior to June 20, 1988, the date judgment was entered.
Ayer Productions Pty. Ltd. vs. Capulong, so we hold, is in the nature of disposition
of Civil Case No. 88-151 before Judge Ignacio Capulong on its merits. Hence, when
we held in that case that the petitioner was not entitled to injunctive relief, we
spoke in the clearest terms possible that the petitioner lacked any cause of action
for injunction, whether preliminary or permanent. It is notable that, as Ayer
decreed in part.
If we made the Temporary Restraining Order (TRO) of March 24, 1988 permanent,
it means that no injunctive writ may be issued in any manner whatsoever, because,
as we said there: "The production and filming by petitioners of the projected motion
picture "The Four Day Revolution" does not, in the circumstances of this case,
constitute an unlawful intrusion upon [the petitionersl "right of privacy,"" 34 and
that injunction was a prior restraint to free speech and consequently, injunction was
not permissible. Accordingly, there is no doubt that when we gave due course to
the private respondent's Petition, and made the TRO permanent. we could not have
been any more clear that we were disposing of Civil Case No. 88-151 on the merits.
And when we granted the private' respondent's Petition, we also unavoidably
dismissed Civil Case No. 88-151. chanroblesvirtualawlibra ry chanrobles virtual law library
It is also to be noted that the petitioner's Complaint was in essence one for
injunction, and corrollarily for the issuance of preliminary injunction pending further
proceedings. The fact that it also prayed for damages, the question of which the
private respondent alleges has been left untouched, is insignificant, because
demands for damages customarily shadow actions for injunction. In the petitioner's
Complaint, it was prayed thus:
2. After notice and hearing, and the filing of such bond as may be
required, this Court convert the foregoing temporary restraining order
into a writ of preliminary injunction. chanroblesvirtualawlibra ry chanrobles virtual law library
3. After trial of the issues, this Court convert the writ of preliminary
injunction into a permanent injunction and, further, order defendants
to pay plaintiff the following:
Plaintiff prays for such further and other relief as may be deemed just
or equitable. 35 chanrobles virtual law library
Again, when this Court declared that the petitioner had no cause of action for
injunction because, first, of an insufficient showing of invasion of his privacy, and
second, because injunction operated as a prior restraint to the guaranty of free
expression, we declared to all intents and purposes, that he, the petitioner, had no
right of relief whatsoever, preliminary or permanent injunction or damages. And
when we declared so, there was therefore absolutely nothing else for Judge
Capulong to hear and decide. Certainly, His Honor could not have further acted on
petitioner Enrile's right to stop the motion picture in question, when we had already
spoken: petitioner Enrile had no right. chanroblesvirtualawlibrary chanrobles virtual law library
ASSUMING THAT THE FILM THE FOUR-DAY REVOLUTION HAS BEEN COMPLETED,
NEVERTHELESS THE COMPLAINT WOULD STATE NO CAUSE OF ACTION. 37 chanrobles virtual law library
For if there was indeed something left for the court a quo to try, the private
respondent should have asked for trial. Obviously, however, this would have been
poor strategy because in that event, it would have been hard put to justify a
request for trial after having moved for dismissal from the beginning. chanroblesvirtualawlibra ry chanrobles virtual law library
The Court's ruling, therefore, is that the private respondent's claim for damages
brought about by a wrongful function should have been commenced prior to June
20, 1988 (the date Ayer judgment was entered) either with this Court or with the
court below. What is plain is that it had neglected to file its claim speedily and
seasonably, and for what clearly emerges as an effort to revive a lost opportunity, it
sought a court order to raise the case long decided by this Court as having had no
leg on which to stand. chanroblesvirtualawlibrary chanrobles virtual law library
The private respondent can not deny the application of Rivera v. Talavera, 38 where
we said that the request for damages arising from injunction may be ventilated in
the Appellate Court, because although Talavera involved an appeal, whereas Ayer
was one for certiorari (special civil action), the distinction is, for purposes hereof,
tenuous because, in both cases, there was a final resolution on the merits that left
nothing for the trial court to adjudicate. chanroblesvirtualawlibra ry chanrobles virtual law library
Because the case had achieved a character of finality, it follows that all proceedings
below, including the request for deposition, after June 20, 1988, are void and of no
effect. The challenged Orders, dated May 2,1989 and June 1, 1989, respectively,
are equally null and inexistent. chanroblesvirtualawlibrary chanrobles virtual law library
WHEREFORE the Petition is GRANTED. The Order, dated May 2, 1989, and the
Order, dated June 1, 1989, are declared NULL AND VOID. chanroblesvirtualawlibra ry chanrobles virtual law library
Costs against the private respondents. chanroblesvirtualawlibra ry chanrobles virtual law library
SO ORDERED.
EN BANC
FELICIANO, J.:
Petitioner Hal McElroy an Australian film maker, and his movie production
company, Petitioner Ayer Productions pty Ltd. (Ayer Productions), 1 envisioned,
sometime in 1987, the for commercial viewing and for Philippine and international
release, the histolic peaceful struggle of the Filipinos at EDSA (Epifanio de los
Santos Avenue). Petitioners discussed this Project with local movie producer
Lope V. Juban who suggested th they consult with the appropriate government
agencies and also with General Fidel V. Ramos and Senator Juan Ponce Enrile,
who had played major roles in the events proposed to be filmed.
The proposed motion picture entitled "The Four Day Revolution" was endorsed
by the Movie Television Review and Classification Board as wel as the other
government agencies consulted. General Fidel Ramos also signified his approval
of the intended film production.
These character stories have been woven through the real events to
help our huge international audience understand this ordinary period
inFilipino history.
The proposed motion picture would be essentially a re-enact. ment of the events
that made possible the EDSA revolution; it is designed to be viewed in a six-hour
mini-series television play, presented in a "docu-drama" style, creating four (4)
fictional characters interwoven with real events, and utilizing actual documentary
footage as background.
On 21 December 1987, private respondent Enrile replied that "[he] would not and
will not approve of the use, appropriation, reproduction and/or exhibition of his
name, or picture, or that of any member of his family in any cinema or television
production, film or other medium for advertising or commercial exploitation" and
further advised petitioners that 'in the production, airing, showing, distribution or
exhibition of said or similar film, no reference whatsoever (whether written, verbal
or visual) should not be made to [him] or any member of his family, much less to
any matter purely personal to them.
It appears that petitioners acceded to this demand and the name of private
respondent Enrile was deleted from the movie script, and petitioners proceeded
to film the projected motion picture.
On 9 March 1988, Hal McElroy flied a Motion to Dismiss with Opposition to the
Petition for Preliminary Injunction contending that the mini-series fim would not
involve the private life of Juan Ponce Enrile nor that of his family and that a
preliminary injunction would amount to a prior restraint on their right of free
expression. Petitioner Ayer Productions also filed its own Motion to Dismiss
alleging lack of cause of action as the mini-series had not yet been completed.
(Emphasis supplied)
A day later, or on 23 March 1988, petitiioner Hal McElroy also filed separate
Petition for certiorari with Urgent Prayer for a Restraining Order or Preliminary
Injunction, dated 22 March 1988, docketed as G.R. No. L-82398.
By a Resolution dated 24 March 1988, the petitions were consolidated and
private respondent was required to file a consolidated Answer. Further, in the
same Resolution, the Court granted a Temporary Restraining Order partially
enjoining the implementation of the respondent Judge's Order of 16 March 1988
and the Writ of Preliminary Injunction issued therein, and allowing the petitioners
to resume producing and filming those portions of the projected mini-series which
do not make any reference to private respondent or his family or to any fictitious
character based on or respondent.
The constitutional and legal issues raised by the present Petitions are sharply
drawn. Petitioners' claim that in producing and "The Four Day Revolution," they
are exercising their freedom of speech and of expression protected under our
Constitution. Private respondent, upon the other hand, asserts a right of privacy
and claims that the production and filming of the projected mini-series would
constitute an unlawful intrusion into his privacy which he is entitled to enjoy.
1. Motion pictures are important both as a medium for the communication of Ideas and
the expression of the artistic impulse. Their effect on the perception by our people of
issues and public officials or public figures as well as the pre cultural traits is
considerable. Nor as pointed out in Burstyn v. Wilson (343 US 495 [19421) is the
Importance of motion pictures as an organ of public opinion lessened by the fact that they
are designed to entertain as well as to inform' (Ibid, 501). There is no clear dividing line
between what involves knowledge and what affords pleasure. If such a distinction were
sustained, there is a diminution of the basic right to free expression. ... 4
Petitioners averment that private respondent did not have any property right over the life
of Moises Padilla since the latter was a public figure, is neither well taken. Being a public
figure ipso facto does not automatically destroy in toto a person's right to privacy. The
right to invade a person's privacy to disseminate public information does not extend to a
fictional or novelized representation of a person, no matter how public a he or she may
be (Garner v. Triangle Publications, DCNY 97 F. Supp., SU 549 [1951]). In the case at
bar, while it is true that petitioner exerted efforts to present a true-to-life Story Of Moises
Padilla, petitioner admits that he included a little romance in the film because without it, it
would be a drab story of torture and brutality. 12
In Lagunzad, the Court had need, as we have in the instant case, to deal with
contraposed claims to freedom of speech and of expression and to privacy.
Lagunzad the licensee in effect claimed, in the name of freedom of speech and
expression, a right to produce a motion picture biography at least partly
"fictionalized" of Moises Padilla without the consent of and without paying pre-
agreed royalties to the widow and family of Padilla. In rejecting the licensee's
claim, the Court said:
The prevailing doctine is that the clear and present danger rule is
such a limitation. Another criterion for permissible limitation on
freedom of speech and the press, which includes such vehicles of
the mass media as radio, television and the movies, is the
"balancing of interest test" (Chief Justice Enrique M. Fernando on
the Bill of Rights, 1970 ed. p. 79). The principle "requires a court to
take conscious and detailed consideration of the interplay of
interests observable in given situation or type of situation"
(Separation Opinion of the late Chief Justice Castro in Gonzales v.
Commission on Elections, supra, p. 899).
In the case at bar, the interests observable are the right to privacy asserted by
respondent and the right of freedom of expression invoked by petitioner. taking into
account the interplay of those interests, we hold that under the particular circumstances
presented, and considering the obligations assumed in the Licensing Agreement entered
into by petitioner, the validity of such agreement will have to be upheld particularly
because the limits of freedom of expression are reached when expression touches upon
matters of essentially private concern." 13
Whether the "balancing of interests test" or the clear and present danger test" be
applied in respect of the instant Petitions, the Court believes that a different
conclusion must here be reached: The production and filming by petitioners of
the projected motion picture "The Four Day Revolution" does not, in the
circumstances of this case, constitute an unlawful intrusion upon private
respondent's "right of privacy."
1. It may be observed at the outset that what is involved in the instant case is a
prior and direct restraint on the part of the respondent Judge upon the exercise of
speech and of expression by petitioners. The respondent Judge has restrained
petitioners from filming and producing the entire proposed motion picture. It is
important to note that in Lagunzad, there was no prior restrain of any kind
imposed upon the movie producer who in fact completed and exhibited the film
biography of Moises Padilla. Because of the speech and of expression, a weighty
presumption of invalidity vitiates. 14 The invalidity of a measure of prior restraint
doesnot, of course, mean that no subsequent liability may lawfully be imposed
upon a person claiming to exercise such constitutional freedoms. The respondent
Judge should have stayed his hand, instead of issuing an ex-parte Temporary
Restraining Order one day after filing of a complaint by the private respondent
and issuing a Preliminary Injunction twenty (20) days later; for the projected
motion picture was as yet uncompleted and hence not exhibited to any audience.
Neither private respondent nor the respondent trial Judge knew what the
completed film would precisely look like. There was, in other words, no "clear and
present danger" of any violation of any right to privacy that private respondent
could lawfully assert.
2. The subject matter of "The Four Day Revolution" relates to the non-bloody
change of government that took place at Epifanio de los Santos Avenue in
February 1986, and the trian of events which led up to that denouement. Clearly,
such subject matter is one of public interest and concern. Indeed, it is, petitioners'
argue, of international interest. The subject thus relates to a highly critical stage
in the history of this countryand as such, must be regarded as having passed into
the public domain and as an appropriate subject for speech and expression and
coverage by any form of mass media. The subject mater, as set out in the
synopsis provided by the petitioners and quoted above, does not relate to the
individual life and certainly not to the private life of private respondent Ponce
Enrile. Unlike in Lagunzad, which concerned the life story of Moises Padilla
necessarily including at least his immediate family, what we have here is not a
film biography, more or less fictionalized, of private respondent Ponce Enrile.
"The Four Day Revolution" is not principally about, nor is it focused upon, the
man Juan Ponce Enrile' but it is compelled, if it is to be historical, to refer to the
role played by Juan Ponce Enrile in the precipitating and the constituent events
of the change of government in February 1986.
3. The extent of the instrusion upon the life of private respondent Juan Ponce
Enrile that would be entailed by the production and exhibition of "The Four Day
Revolution" would, therefore, be limited in character. The extent of that intrusion,
as this Court understands the synopsis of the proposed film, may be generally
described as such intrusion as is reasonably necessary to keep that film a truthful
historical account. Private respondent does not claim that petitioners threatened
to depict in "The Four Day Revolution" any part of the private life of private
respondent or that of any member of his family.
4. At all relevant times, during which the momentous events, clearly of public
concern, that petitioners propose to film were taking place, private respondent
was what Profs. Prosser and Keeton have referred to as a "public figure:"
Such public figures were held to have lost, to some extent at least,
their tight to privacy. Three reasons were given, more or less
indiscrimately, in the decisions" that they had sought publicity and
consented to it, and so could not complaint when they received
it; that their personalities and their affairs has already public, and
could no longer be regarded as their own private business; and that
the press had a privilege, under the Constitution, to inform the public
about those who have become legitimate matters of public
interest. On one or another of these grounds, and sometimes all, it
was held that there was no liability when they were given additional
publicity, as to matters legitimately within the scope of the public
interest they had aroused.
The privilege of enlightening the public was not, however, limited, to the dissemination of
news in the scene of current events. It extended also to information or education, or even
entertainment and amusement, by books, articles, pictures, films and broadcasts
concerning interesting phases of human activity in general, as well as the reproduction of
the public scene in newsreels and travelogues. In determining where to draw the line, the
courts were invited to exercise a species of censorship over what the public may be
permitted to read; and they were understandably liberal in allowing the benefit of the
doubt. 15
II
For reasons that by now have become clear, it is not necessary for the Court to
deal with the question of whether or not the lawyers of private respondent Ponce
Enrile have engaged in "forum shopping." It is, however, important to dispose to
the complaint filed by former Colonel Honasan who, having refused to subject
himself to the legal processes of the Republic and having become once again in
fugitive from justice, must be deemed to have forfeited any right the might have
had to protect his privacy through court processes.
WHEREFORE,
a) the Petitions for Certiorari are GRANTED DUE COURSE, and the Order dated
16 March 1988 of respondent trial court granting a Writ of Preliminary Injunction
is hereby SET ASIDE. The limited Temporary Restraining Order granted by this
Court on 24 March 1988 is hereby MODIFIED by enjoining unqualifiedly the
implementation of respondent Judge's Order of 16 March 1988 and made
PERMANENT, and
No pronouncement as to costs.
SO ORDERED.
Footnotes
7 Prosser and Keeton on Torts, 5th ed., pp. 854-863 (1984); and
see, e.g., Strykers v. Republic Producers Corp., 238 P. 2d 670
(1952).
12 92 SCRA 486-487.