Case Digest (G.R. No. 200759)
Facts:
Faj Construction & Development Corporation v. Susan M. Saulog, G.R. No. 200759, March 25, 2015, Supreme Court Second Division, Del Castillo, J., writing for the Court. This Petition for Review on Certiorari challenges the Court of Appeals' November 29, 2011 Decision and February 24, 2012 Resolution in CA‑G.R. CV No. 88385 which affirmed with modification the Regional Trial Court (RTC) of Quezon City, Branch 220's January 30, 2006 Decision in Civil Case No. Q‑02‑45865. The RTC decision granted respondent‑counterclaimant relief for defective, delayed and abandoned construction work; the CA modified by deleting awards for lost rentals, moral and exemplary damages, and attorneys' fees.On June 15, 1999, Faj Construction (petitioner) and Susan Saulog (respondent) entered into a construction agreement for a residential building (contract price P12,500,000). Petitioner received payments totaling P10,592,194.80 but respondent refused to pay two progress billings totaling P851,601.58. Petitioner stopped work and purportedly terminated the contract under the contractors' standard conditions. After demand letters and respondent's allegations of defective work, petitioner sued in the RTC for collection; respondent counterclaimed for extensive actual, consequential, moral and exemplary damages, penalties for delay, attorneys' fees and lost rentals.
During trial petitioner repeatedly failed to proceed with presentation of its evidence; after multiple continuances and failures to appear, the RTC dismissed petitioner's complaint for failure to prosecute, struck off its witness' testimony, and proceeded to hear respondent's counterclaim. Petitioner sought reconsideration, then filed a certiorari petition with the Court of Appeals (docketed CA‑G.R. SP No. 82239) which the CA dismissed on September 30, 2004 for abuse of process and delay; petitioner elevated that CA ruling to this Court in G.R. No. 166336, but this Court denied the petition by a March 7, 2005 Resolution (entry of judgment later made final).
On the counterclaim the RTC found petitioner’s work defective, incomplete and abandoned; it credited Architect Rhodora Calinawan's inspection report, respondent’s testimony, photographs and repair receipts, and awarded P3,213,575.91 actual damages, P5,391,456.00 lost rentals, P500,000.00 moral damages, P500,000.00 exemplary damages, P1,387,500.00 penalties for delay, attorneys' fees and ...(Pro-only)
Issues:
- Is petitioner precluded by res judicata from litigating the dismissal for failure to prosecute and from challenging the CA’s affirmance of that dismissal?
- Did the trial court and the Court of Appeals commit reversible error in finding petitioner liable for defective work, awarding actual damages and penalties for delay, and imposing...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)