Title
Benguet Corporation vs. Cabildo
Case
G.R. No. 151402
Decision Date
Aug 22, 2008
A retired employee turned contractor sued Benguet Corp for breach of contract after overlapping work was awarded to another, leading to damages awarded by courts.
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Case Digest (G.R. No. 151402)

Facts:

  1. Parties Involved:

    • Petitioners: Benguet Corporation (a mining company), Dennis R. Belmonte (Vice-President), Efren C. Reyes (Department Manager), and Gregorio A. Fider (Division Manager).
    • Respondent: Cesar Cabildo, a former employee of Benguet Corporation who became a service contractor.
  2. Background:

    • Cabildo retired from Benguet Corporation in 1981 after 25 years of service.
    • In February 1983, Cabildo submitted a bid for the painting of Benguet Corporation's Mill Buildings and Bunkhouses at the Balatoc mining site.
    • The parties agreed that Benguet Corporation would provide the materials, and Cabildo would handle the labor.
  3. Contract of Work:

    • On March 23, 1983, a formal Contract of Work was signed between Cabildo and Benguet Corporation.
    • The contract stipulated that Cabildo would paint the Mill Buildings and Bunkhouses, including necessary repairs, at specified rates per square meter.
    • The contract also included provisions on payment, retention of 10% of payments, and liability for workers' wages and benefits.
  4. Execution of Work:

    • Cabildo began work on March 7, 1983, even before the formal contract was signed.
    • He hired 33 laborers, including Rolando Velasco, who later left to become a contractor for Benguet Corporation.
    • Cabildo painted both the exterior and interior of the Mill Buildings, except for the refinery buildings.
  5. Dispute:

    • In June 1983, Velasco entered into separate contracts with Benguet Corporation to paint parts of the Mill Buildings at a lower price than Cabildo's.
    • Cabildo protested, claiming that his contract covered both exterior and interior painting.
    • Benguet Corporation argued that Cabildo's contract was limited to exterior painting.
    • Cabildo was eventually prevented from continuing his work and was not paid for his last work accomplishment.
  6. Legal Action:

    • Cabildo filed a complaint for damages, alleging breach of contract, harassment, and underpayment.
    • The Regional Trial Court (RTC) ruled in favor of Cabildo, awarding him actual damages, unrealized profits, moral and exemplary damages, attorney’s fees, and costs of suit.
    • The Court of Appeals (CA) affirmed the RTC's decision but excluded Velasco from liability.

Issue:

  1. Whether there was a breach of contract by Benguet Corporation, justifying the award of damages and attorney’s fees.
  2. Whether the petitioners' counterclaim should be granted.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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