Case Digest (G.R. No. 233073)
Facts:
This Rule 45 petition was filed by L.C. Big Mak Burger, Inc. (Petitioner) against McDonald’s Corporation (Respondent) arising from Civil Case No. 90-1507 in the RTC, Makati, Branch 137 for trademark infringement and unfair competition; the RTC issued an injunction on August 16, 1990, rendered judgment for Respondent on September 5, 1994, and this Court reinstated that judgment in G.R. No. 143993 on August 18, 2004, after an intermediate reversal by the CA. A writ of execution issued on November 14, 2005; Respondent filed a petition for contempt on May 5, 2008 before RTC, Branch 59, which dismissed the petition on April 7, 2014 and awarded damages to Petitioner; the CA reversed on February 2, 2017 finding Petitioner guilty of indirect contempt and fined it P30,000, and denied reconsideration on July 26, 2017.
Issues:
- Was Petitioner guilty of indirect contempt for allegedly continuing to use the words "Big Mak" and for refusing to pay the judgment debt?
Ruling:
The Court GRANTED the petition, REVERSED and SET ASIDE the CA Decision dated February 2, 2017 and its Resolution dated July 26, 2017, and REINSTATED the April 7, 2014 Decision of RTC, Branch 59 dismissing the contempt petition. The Court left intact the damages awarded by the Contempt Court.
Ratio:
The Court held that punishment for indirect contempt under Section 3, Rule 71 requires proof of willful disobedience or resistance to a lawful order and afforded the contemnor an opportunity to be heard. The record showed that Petitioner had in good faith substituted the proscribed mark with its corporate name and the trade name "Super Mak," that the CA misread the judicial affidavit and photographs as an admission of belated compliance, and that Petitioner reasonably relied on the final SEC decision in SEC-AC No. 426 declaring its corporate name not confusingly similar to Respondent’s mark; these facts negated the requisite willful intent to contemn the court.
Doctrine:
- Under Section 3, Rule 71, indirect contempt may be punished only after a written charge, opportunity to comment, and proof of willful disobedience or resistance to a lawful writ, order, or judgment.
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