G.R. No. 141332 ; December 11, 2003
Ligaya S. Novicio, petitioner, vs. Alma Aggabao, respondent.

FACTS

Petitioner Ligaya Novicio, treasurer of Philippine International Life Insurance Company (Philinterlife), sent a letter on April 20, 1995, to three depository banks. The letter informed them that the Court of Appeals had issued a resolution restraining several named individuals, including respondent Alma Aggabao, from exercising their rights as shareholders of Philinterlife. Consequently, the letter instructed the banks to change the company’s authorized signatories and not to honor transactions from the restrained persons. Aggabao, who was the corporate secretary and chief accountant, filed a libel complaint, alleging the letter injured her reputation by falsely portraying her as an impostor without authority.
The City Prosecutor initially dismissed the complaint. However, upon review, the Chief State Prosecutor directed the filing of three counts of libel. Informations were filed, and Novicio moved to quash, arguing the facts did not constitute libel. The trial court denied the motion, a decision affirmed by the Court of Appeals. Novicio elevated the case to the Supreme Court via a petition for review on certiorari.

ISSUE

Whether the facts alleged in the informations constitute the crime of libel.

RULING

No. The Supreme Court granted the petition and ordered the dismissal of the criminal cases. For an imputation to be libelous under Articles 353 and 354 of the Revised Penal Code, it must be defamatory, malicious, given publicity, and the victim must be identifiable. The Court found the informations fatally deficient.
First, the letter was not defamatory. Taken as a whole and in its plain meaning, it was a straightforward narration of a judicial restraint order and its corporate implications, not an imputation of a crime, vice, or defect. Second, the element of malice was absent. The letter constituted a privileged communication under Article 354(1) of the Revised Penal Code, being a private communication made in the performance of a legal, moral, or social duty. As corporate treasurer, Novicio had a duty to safeguard company funds and inform depository banks of material changes affecting account signatories, a duty owed to the corporation. The communication was made in good faith to parties (the banks) with a corresponding interest.
Finally, the element of publication was not established. Publication in libel requires making the defamatory matter known to a third party. The letter was sent only to the concerned bank managers; there was no allegation of dissemination to the public or unrelated third parties. Since the facts alleged in the informations failed to establish essential elements of the offense, the trial court should have granted the motion to quash. Proceeding on a defective information that cannot support a valid conviction would be prejudicial to the accused.