Case Digest (G.R. No. 131544)
Facts:
EPG Construction Co., Ciper Electrical & Engineering, Septa Construction Co., Phil. Plumbing Co., Home Construction Inc., World Builders Co., Glass World Inc., Performance Builders Dev't. Co., De Leon-Araneta Const. Co., J.D. Macapagal Const. Co., all represented by their Attorney-in-Fact Marcelo D. Foronda (petitioners) v. Hon. Gregorio R. Vigilar, in his capacity as Secretary of Public Works and Highways (respondent), G.R. No. 131544, March 16, 2001, Supreme Court Second Division, Buena, J., writing for the Court.In 1983 the Ministry of Human Settlement, through BLISS Development Corporation, initiated a housing project along the Manggahan Floodway in Pasig. Pursuant to a Memorandum of Agreement, the then Ministry of Public Works and Highways (now DPWH) undertook development of the site and contracted with the petitioners to build housing units covering approximately two-thirds of each unit. After completing the work expressly covered by those written contracts, petitioners — at the verbal request and assurance of then DPWH Undersecretary Aber Canlas — performed additional construction work to complete the units despite no supplemental written contracts or appropriations.
Petitioners received payment only for work under the written contracts, leaving an alleged unpaid balance of P5,918,315.63 for the "additional constructions." On 14 November 1988 petitioners sent a demand letter to the DPWH Secretary, supported by a recommendation from DPWH Assistant Secretary for Legal Services Dominador Madamba recognizing implied contracts and advising a quantum meruit basis for payment. The DPWH Auditor raised no objection subject to COA action; the Commission on Audit (COA) first returned the claims in July 1992 insisting funds be available before it could act. DPWH Secretary Jose De Jesus sought DBM release of funds (Memorandum, 30 July 1992), and the Department of Budget and Management (DBM) released P5,819,316.00 on 20 December 1994 under Advise of Allotment No. A4-1303-04-41-303. COA, by indorsement of 27 December 1995 (pursuant to COA Circular No. 95-006), returned the claims to DPWH, noting COA’s policy to lift its pre-audit so agency heads exercise fiscal responsibility.
Respondent Secretary Vigilar denied the money claims by letter dated 26 August 1996. Petitioners filed a Petition for Mandamus in the Regional Trial Court of Quezon City, Branch 226 (Civil Case No. Q-96-29243), praying that respondent be ordered t...(Pro-only)
Issues:
- Does the constitutional and statutory doctrine of the non‑suability of the State bar petitioners’ claim for payment?
- Are petitioners entitled to recover for the additional constructions despite the absence of appropriations and written supplemental contracts (i.e., may recovery be had on a ...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)