Case Digest (G.R. No. 128066)
Facts:
Jardine Davies, Inc. v. Court of Appeals and Far East Mills Supply Corporation, G.R. No. 128066, and Pure Foods Corporation v. Court of Appeals and Far East Mills Supply Corporation, G.R. No. 128069, June 19, 2000, Supreme Court Second Division, Bellosillo, J., writing for the Court.The dispute arose in 1992 when Pure Foods Corporation (PUREFOODS) decided to procure and install two 1,500 KW generator sets for its Marikina plant. After a pre-bidding conference, several suppliers submitted bids; Far East Mills Supply Corporation (FEMSCO) was one of three bidders that posted the required bid bonds. On 12 December 1992 PUREFOODS sent a letter to FEMSCO stating that it "has awarded to your firm the project" and enumerating “basic terms and conditions.” FEMSCO thereupon submitted a performance bond (P1,841,187.90) and contractor’s all-risk insurance, and began arrangements with its principal and suppliers; PUREFOODS acknowledged receipt and returned FEMSCO’s bidder’s bond.
On 22 December 1992 PUREFOODS wrote to cancel the award, citing newly discovered “significant factors” and calling for re-bidding. Before the parties resolved their dispute, PUREFOODS on 26 March 1993 entered into a contract with Jardine Nell, a division of Jardine Davies, Inc. (JARDINE), which had not participated in the original bidding. FEMSCO protested and then sued PUREFOODS for breach and JARDINE for inducing the breach.
At the Regional Trial Court (Pasig, Br. 68), JARDINE filed a Demurrer to Evidence; the RTC granted it on 27 June 1994 and dismissed the complaint against JARDINE. Trial continued as to PUREFOODS, and on 28 July 1994 the RTC ordered PUREFOODS to indemnify FEMSCO P2,300,000 (engineering services), pay US$14,000 (or peso equivalent) and P900,000 (contractor’s mark‑up), award attorney’s fees equivalent to 20% of the total, and costs; PUREFOODS’ counterclaim was dismissed. Both sides appealed.
The Court of Appeals (Special Fifteenth Division) rendered its decision on 14 August 1996: it affirmed the RTC’s award against PUREFOODS but reversed the RTC’s 27 June 1994 resolution, holding that JARDINE had induced PUREFOODS’ breach and ordering JARDINE to pay FEMSCO P2,000,000 as moral damages; the CA also increased damages against...(Pro-only)
Issues:
- Was there a perfected contract between Pure Foods Corporation and Far East Mills Supply Corporation?
- Assuming a perfected contract existed, did Jardine Davies, Inc. induce or connive with Pure Foods to viol...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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