Case Digest (G.R. No. 151402)
Facts:
The case involves Benguet Corporation, represented by petitioners Dennis R. Belmonte, Efren C. Reyes, and Gregorio A. Fider, against respondent Cesar Cabildo. The events leading to the dispute began when Cabildo, a former employee of Benguet Corporation and Department Manager of its Transportation and Heavy Equipment Department, retired on August 31, 1981, after 25 years of service. Following his retirement, Cabildo became a service contractor and submitted a bid in February 1983 for painting jobs at Benguet Corporation's Mill Buildings and Bunkhouses located at the Balatoc mining site. After negotiations with Reyes and Fider, who were responsible for recommending and approving the work, Cabildo began work on March 7, 1983, without a formal contract. A Contract of Work was eventually signed on March 23, 1983, detailing the scope of work and payment terms.
Cabildo was to paint the Mill Buildings and Bunkhouses, with Benguet Corporation providing the necessary materials. ...
Case Digest (G.R. No. 151402)
Facts:
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.
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.
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.
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.
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.
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:
- Whether there was a breach of contract by Benguet Corporation, justifying the award of damages and attorney’s fees.
- Whether the petitioners' counterclaim should be granted.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)