Case Digest (G.R. No. L-20740)
Facts:
The case at hand is Bolinao Electronics Corporation, Chronicle Broadcasting Network, Inc., and Monserrat Broadcasting System, Inc. vs. Brigido Valencia, Secretary of the Department of Public Works & Communications, and Robert San Andres, Acting Chief of the Radio Control Division, with G.R. No. L-20740 decided on June 30, 1964. The petitioners, operating radio and television stations in the Philippines, filed an original petition for prohibition and mandatory injunction with preliminary injunction against the respondents. This legal action arose following an investigation initiated by the respondents concerning the petitioners’ applications for the renewal of their station licenses. Simultaneously, the Republic of the Philippines, as an intervenor, was granted authority to operate a television station in Manila. The crux of the case revolved around three critical issues: firstly, the legal basis of the investigation regarding the applications for renewal; secondly, whether
Case Digest (G.R. No. L-20740)
Facts:
- Parties and Complaint
- Petitioners:
- Bolinao Electronics Corporation
- Chronicle Broadcasting Network, Inc.
- Monserrat Broadcasting System, Inc.
- These entities are the owners and operators of various radio and television stations.
- Respondents:
- Brigido Valencia, Secretary of the Department of Public Works and Communications
- Robert San Andres, Acting Chief of the Radio Control Division
- Intervener:
- The Republic of the Philippines, operating as the Philippine Broadcasting Service (PBS), which secured a construction permit for a television station in Manila.
- Nature and Relief Sought
- Petition filed as an original petition for:
- Prohibition
- Mandatory injunction (with a preliminary injunction previously issued)
- Purpose of the petition:
- To challenge the investigation by the respondents in connection with the renewal applications for station licenses.
- To prevent actions that could lead to disapproval of their station licenses based solely on a cited violation.
- Investigation and Alleged Violations
- Basis of the investigation by respondents:
- Petitioners’ applications for renewal of their station licenses were alleged to have been filed late.
- The alleged violation was grounded in non-compliance with Sections 12 and 14 of Department Order No. 11 regarding the operation of radio stations and the timely filing for renewal.
- Notice of Hearing:
- Respondents sent uniformly worded notices requiring petitioners’ appearance for a hearing scheduled for January 28, 1963, at the Conference Room of the Office of the Secretary.
- Failure to appear would lead to the application being actioned without a hearing, based on existing radio laws.
- The Condonation of the Alleged Violation
- Petitioners’ contention:
- The alleged violation of late filing had been effectively condoned by a circular issued on July 24, 1962.
- The circular warned of strict enforcement against illegal practices but allowed a corrective period until August 10, 1962 for petitioners to amend their practices.
- Filing of Applications:
- The applications for renewal were all submitted before the corrective period expired and, in some cases, even prior to the issuance of the circular.
- Dispute Over Channel Assignment
- Issue regarding Channel 9:
- Respondents contended that petitioner Chronicle Broadcasting Network (CBN) had renounced or abandoned its right to operate on Channel 9 in favor of PBS.
- This contention was based on a notation ("Channel 10 assigned in lieu of Channel 9") found in the construction permit for transferring DZXL-TV from Quezon City to Baguio City.
- Petitioners’ Response:
- The assignment of Channel 10 was said to be contingent upon the final transfer of the station to Baguio, intended to avoid broadcast interference with another station.
- When the transfer plan was ultimately abandoned, no renunciation or waiver of the right to operate on Channel 9 occurred.
- Additional remarks in PBS’s construction permit were argued to be non-binding, reflecting mere administrative annotations that did not establish an express agreement.
- Appropriations and the PBS Operation
- Appropriations Context:
- The Appropriations Act (1962–1963) provided funds for the operation of the Philippine Broadcasting Service, with conditions that prohibited using those funds to operate television stations in areas with existing commercial stations.
- Executive Veto Issue:
- The President’s veto of certain language in the Appropriations Act raised issues regarding whether conditions attached to appropriations can be unilaterally modified by an executive veto.
- Prior jurisprudence (such as State vs. Holder) indicated that the executive veto does not extend to eliminating conditions attached to appropriations, thereby leaving the restrictions intact.
Issues:
- Legality of the Investigation
- Whether the investigation conducted by the respondents in connection with the petitioners’ applications for renewal of station licenses has any legal basis.
- Whether the investigation, based solely on the alleged late filing (a violation already condoned by a circular), is proper.
- Abandonment or Renunciation of the Right to Operate Channel 9
- Whether petitioner Chronicle Broadcasting Network (CBN) abandoned or renounced its right under Section 3(m) of Act 3846 (as amended by Rep. Act 584) to operate on Channel 9 in favor of the Philippine Broadcasting Service.
- Entitlement to Damages by the Philippine Broadcasting Service
- Whether PBS can legally operate on Channel 9.
- Whether PBS is entitled to damages on the basis of CBN’s alleged refusal to relinquish operations of Channel 9.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)