Republic of the Philippines

REGIONAL TRIAL COURT

National Capital Region
Branch 15, Quezon City

ABC CORPORATION Civil Case No. 12532

Plaintiff,
-versus-
JADINE REYES
Defendant
x--------------------------------------x

MEMORANDUM FOR THE PLAINTIFF

PREFATORY STATEMENT

“The goal of protecting your trade secrets is worth the often tedious effort of
establishing and enforcing confidentiality polices, restricting access to company files,
marking relevant documents as “confidential” and seeking appropriate agreements with
third parties.” (RRK Holding Company v. Sears, Roebuck & Co., 563 F.Supp.2d 832
2008)

TABLE OF CONTENTS

Statement of the Case ……………………………………………………………….2

Statement of the Facts………………………………………………………………..2
Issues……………………………………………………………………………..........3
Arguments………………………………………………………………………………4
Prayer……………………………………………………………………………………7
 STATEMENT OF THE CASE
Plaintiff ABC Corporation (LUCKY CHINATOWN TV) filed a case against Jadine Reyes
for a breach of contract. Jadine Reyes violated the said Confidentiality Clause
particularly paragraph F of the contract signed before employment last 2013 of
January.

STATEMENT OF THE FACTS

1. On January 2013, Plaintiff hired Jadine Reyes a graduate from UP Diliman with a
degree of Bachelors of Arts Major in Communication Arts.
2. Plaintiff asked Jadine Reyes to sign a contract of employment before officially
hiring her.
3. With the help of Christine Amando the company’s secretary, explained to her the
importance of the Confidentiality Clause paragraph F, as well as the tasks,
responsibilities, terms and conditions of her employment with the plaintiff.
4. After officially hiring the defendant she was given the position as an Associate
Producer/Segment Producer.
5. After a few months has passed, on May 2013, the company have been hearing
complaints about the defendant’s misbehavior towards its co-workers and would
always be late coming to work.
6. The defendant according to reports from her co-workers an seniors, the
defendant would frequently complain about the excessive work that the company
requires.
7. The plaintiff called for the attention of the defendant and asked for a special
meeting. During the said one-to-one meeting with Jadine Reyes, she denied the
issues that her co-workers reported and added that her co-workers only has
personal issues towards her, which prompted them to make an action or issue.
8. Plaintiff gave her a warning and if repeated, she would be forced to be
terminated.
9. After sometime of October 2013, the defendant consulted the Board of Directors
to give a report towards the misconduct of her co-workers and the alleged
maltreatment of one of the Board of Directors towards her. The Board of
Directors denied any allegations towards them. And the latter, gave the
defendant a second warning.
 10. The defendant filed a resignation letter effective on December 15, 2013 citing her
health condition as her reason. Instead of leaving on December 15, 2013, the
latter left on an earlier date, December 5, 2013.
11. The company found out through their employees, that defendant is now
employed under China 168 Network.
12. The same segments and there were additional strategies used, which were
used in Lucky Chinatown TV. There are notable similarities.
13. China 168 featured the same segments as the Lucky Chinatown.
14. China 168 did not have any episodic plugs prior to the defendant’s employment
with them and they used the same people to promote their channel. Denise Yu,
Daryl Joy Soon, Pretty Looks, IHop, CPK, Flavors of China, Hobbit Inc., among
others. And their episodic plugs has the same format as those produced by Lucky
Chinatown TV.
15. There were several news spreading out as to the alleged maltreatment towards
the defendant during her stay with Lucky Chinatown TV company.
16. The Lucky Chinatown TV sent demand letters to the defendant to immediately
cease and desist from sharing confidential information to China 168. Despite
sending demand letters to the defendant, the same happened, and the latter still
disclosed information specifically, marketing strategies.
17. Plaintiff suffered a decline of ratings since the defendant’s resignation which
caused the plaintiff to terminate some of their employees.

ISSUES
Given the foregoing facts and circumstances, the following issues are presented for
discussion:
1. Whether or not Jadine Reyes committed a breach of contract
2. Whether Jadine Reyes is liable damages for the decline of the ratings of the
company, which resulted to the termination of the company’s employees.
 ARGUMENTS

1A. Jadine Reyes committed a breach of contract when it violated the confidentiality
clause paragraph F of the signed contract dated January 2013.
A. The case at bar is similar case with RRK Holding Company v. Sears, Roebuck
& Co.,
B. In the case of RRK Holding Company v. Sears, Roebuck & Co., RRK Holdings
enter into a non-disclose agreement with Sears, because the former produces
spiral saw. And of their agreements is that the spiral saw will be sold exclusively
to Sears. And it stated in their agreement that they are prohibited to disclose any
information to any other party. But later Sears disclosed an information while on a
negation. Sears later on disclosed the next-generation spiral saw that RRK
Holdings is planning on doing for the next year.
C. Later on after finding out, RRK Holdings stopped manufacturing spiral saws to
Sears.
D. After 2 weeks of RRK’s product introduction to the public, Sears introduced a
new spiral saw under the Craftsman brand. The new tool combined the spiral saw
and plunge base router which the RRK Holdings have and disclosed to Sears.
E. The same case happened to Jadine Reyes and ABC Corporation, the
disclosure after a few months passed after the resignation of Jadine Reyes, the
similarities are notable when she transferred to China 168 Network when it
featured past projects and the same marketing strategies.
2. In the present case, the Confidentiality Clause Paragraph F, stated
“Confidential Information” means (but is not limited to) any information regarding
Employer’s business methods, business policies, procedures, techniques,
research or development projects or results, sales information of any kind,
financial information of any kind, trade secrets or other knowledge possessed
by Employer which is not generally known by individuals outside the
Employer (including Employer’s employees, consultants and advisors). Also,
“Confidential Information” shall additionally include, but not limited to, the
following information of Employer:
1. Customer lists or other customer information;
2. Sales strategy, tactics or methods;
3. Information pertaining to products or services under development;
4. Internal company reports of any kind;
5. All marketing strategies.” (EMPHASIS SUPPLIED)

A. The Confidentiality Clause Paragraph F, is to be read in its plain meaning,

that the intention of the company is to keep its strategies and their own nature
 inside the company to themselves to avoid that similarities that can cause a
huge impact on the TV ratings as well as the image of the company.
B. In the case of R.S. Tomas, Inc. v. Rizal Cement Company, the definition of a
breach of contract is defined, “Breach of contract is defined as the failure
without legal reason to comply with the terms of a contract. It is also defined
as the failure, without legal excuse, to perform any promise which forms the
whole or part of the contract.” (G.R. NO. 173155)
C. Evidently, Jadine Reyes failed to comply to the above stated confidentiality
clause, when she disclosed all the sales strategy, with regards to the same
promoters used, the same people who are being contacted by Lucky
Chinatown TV etc.
D. It can also be given emphasis that China 168 Network is the rival company of
Lucky Chinatown Network, which is a clear picture of trying to construe
Jadine Reyes’ move of transferring to the rival company. The motive of
Jadine Reyes is to put the company in danger for the previous maltreatment
she experienced.
3. In the case of Daisy B. Tiu v. Platinum Plans Phil, Inc., an employer was barred from
transferring to a rival company, for having been disclosing information even before
his resignation, the company in the case, stated that because of the employer’s
position as the Senior Assistant Vice-President and Territorial Operations Head, the
employer is highly-knowledgeable of the secrets. (G.R. NO. 163512)
A. The same happened in the case of Jadine Reyes. Jadine Reyes functioned as
Lucky Chinatown’s Associate Producer/Segment Producer. She is exposed to the
field of creating segments, acquiring for people to endorse their show with the
same contact persons, which she then used when she transferred to the rival
company.
2A. Jadine Reyes is liable for the damages caused when the ABC Corporation, when
the network experienced a loss of audiences they were forced to terminate some
employees because of the lack of sufficient funds to provide for their salaries.
A. In the case of Angel Talampas V. Moldex Realty Inc. it stated that contracts have
the force of law between the parties and must be complied with in good faith. A
contracting party’s failure, without legal reason, to comply with contract
stipulations breaches their contract and can be the basis for the award of
damages to the other contracting party. (G.R. NO. 170134)
B. Which simply means that because of the Jadine Reyes’ failure to compy to the
Confidentiality Clause, it cause damage to the company, basing on the ruling of
 the case of Angel Talampas V. Moldex Realty Inc. Jadine Reyes is liable for the
termination of the employers, for the company experienced a loss of ratings.
C. The violation of Jadine Reyes is the proximate cause why the company
experienced distraught after her resignation.
D. In the case of Child Learning Center, Inc. v. Tagorio, the Supreme Court stated
that “in order to establish a quasi-delict case under this provision, the plaintiff
must prove by a preponderance of evidence: (1) the damages suffered by the
plaintiff; (2) the fault or negligence of the defendant or some other person for
whose acts he must respond; and (3) the connection of cause and effect between
the fault or negligence and damages incurred.” (G.R. No. 150920)
E. The elements are all present in the case of Jadine Reyes. Jadine Reyes caused
damages to the company. Thus, she held liable for indemnification.
 PRAYER
WHEREFORE, premises considered, it is respectfully prayed that judgment be
rendered in favor of plaintiff and against the defendant by:
1.) FINDING Jadine Reyes, liable for a breach of contract.
2.) ORDERING Jadine Reyes to pay for damages caused with the company’s
employers.
Other just and equitable remedies under the circumstances are likewise prayed for.
Quezon City, December 19, 2017.

(Sgd.) ATTY. DENISE YAP

Counsel for Plaintiff.
Address:
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Copy furnished:
ATTY. LILA DY
Counsel for Defendant