Title
ACS Development and Property Managers, Inc. vs. Montaire Realty and Development Corp.
Case
G.R. No. 195552
Decision Date
Apr 18, 2016
Construction dispute: ADPROM halted work over unpaid billing; MARDC terminated contract, claimed overpayment. CIAC awarded ADPROM unpaid billings, denied MARDC's claims. CA modified, imposed liquidated damages on ADPROM. SC upheld CA, dismissed ADPROM's petition.
Font Size:

Case Digest (G.R. No. 195552)

Facts:

Parties and Contract

  • Petitioner: ACS Development & Property Managers, Inc. (ADPROM), a construction contractor.
  • Respondent: Mont-Aire Realty and Development Corporation (MARDC), the project owner.
  • Construction Agreement: Executed on April 25, 1996, for the construction of 17 units of Villa Fresca Townhomes in Tagaytay City, with a total contract price of P39,500,000.00.
  • Amendment: The agreement was later amended to reduce the number of units to 11 and the total contract price to P25,500,000.00.

Progress Billings and Disputes

  • Progress Billing Nos. 1 to 8: Fully paid by MARDC, totaling P23,169,183.43.
  • Progress Billing No. 9: ADPROM demanded P1,495,345.24, but MARDC's construction manager, Angel Lazaro & Associates (ALA), approved only P94,460.28 due to disputes over cost additives.
  • Work Stoppage: ADPROM stopped work on March 18, 1997, after MARDC failed to pay Progress Billing No. 9.
  • Notice of Default: MARDC served ADPROM with a notice of default on March 20, 1997.

Termination and Claims

  • Termination: MARDC terminated the contract on June 5, 1997, claiming ADPROM had only completed 54.67% of the work (per ALA) or 46.98% (per TCGI Engineers).
  • Overpayment Claim: MARDC demanded a refund of P11,188,539.69 for alleged overpayments.
  • ADPROM's Claim: ADPROM filed a case with the Construction Industry Arbitration Commission (CIAC) for unpaid billings, while MARDC filed a counterclaim for overpayment and liquidated damages.

CIAC Decision

  • Award to ADPROM: P1,468,348.60 for unpaid billings, P2,806,814.00 for retention refund, and P109,824.43 in interest.
  • Award to MARDC: Denied claims for overpayment and liquidated damages.
  • Net Award: MARDC ordered to pay ADPROM P4,384,987.03.

CA Decision

  • Modification: The Court of Appeals (CA) deleted the interest on unpaid billings and held ADPROM liable for liquidated damages of P39,500.00 per day from March 20, 1997, to September 1, 1997.

Issue:

  1. Whether ADPROM was entitled to interest on unpaid billings.
  2. Whether ADPROM was liable for liquidated damages due to its work stoppage.
  3. Whether ADPROM availed of the correct remedy by filing a petition for certiorari instead of a petition for review under Rule 45.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court dismissed ADPROM's petition, affirming the CA's decision with modifications. ADPROM was not entitled to interest on unpaid billings but was liable for liquidated damages due to its unjustified work stoppage. The monetary awards were subject to an interest rate of 6% per annum from the date of finality until full payment.


Jur is an AI-powered legal research platform in the Philippines for case digests, summaries, and jurisprudence. AI-generated content may contain inaccuracies; please verify independently.