Case Digest (G.R. No. L-27782)
Facts:
Octavio A. Kalalo v. Alfredo J. Luz, G.R. No. L-27782, July 31, 1970, the Supreme Court En Banc, Zaldivar, J., writing for the Court.Plaintiff-appellee Octavio P. Kalalo, a licensed civil engineer doing business as O.A. Kalalo and Associates, entered into a written agreement (Exhibit A) with defendant-appellant Alfredo J. Luz, a licensed architect doing business as A.J. Luz and Associates, under which Kalalo was to render engineering design services for fees computed as percentages of the architect’s fee (structural 12½%, electrical 2½%, mechanical 2½%, sanitary 2½%). A subsequent “clarification to letter-proposal” excluded certain services (e.g., foundation soil exploration) and reserved the right to increase fees on projects costing less than P100,000.
Pursuant to the agreement, Kalalo performed engineering services on numerous projects (including the Fil-American Life buildings, General Milling flour mill, Menzi Building, International Rice Research Institute (IRRI) Research Center at Los Baños, and others). On December 11, 1961 Kalalo sent Luz a statement of account (Exh. 1 and 1‑A) showing total engineering fees of P116,565.00 less prior payments of P57,000.00, leaving a balance claimed of P59,565.00. Luz responded with his own resume claiming only P10,861.08 due and on June 14, 1962 sent a check for that amount which Kalalo refused to accept as full payment.
Kalalo filed suit on August 10, 1962 asserting four causes of action (the principal claim sought $28,000 (U.S.) and P100,204.46, among other damages and attorney’s fees). Luz admitted services were rendered but disputed amounts and asserted defenses including estoppel and unsatisfactory performance; he also counterclaimed for damages and attorney’s fees. Because liability in principle was not disputed and only the proper amounts remained to be determined, the trial court, by agreement of the parties, referred the case to a Commissioner.
The Commissioner found that Kalalo was due $28,000 (20% of the $140,000 fee Luz received for the IRRI project) and P51,539.91 for other projects, less payments of P69,475.46, and recommended P5,000.00 as attorney’s fees. At the hearing on the report the parties stated they had no objection to the Commissioner’s findings of fact and limited the legal issues to (1) whether estoppel applied and (2) whether payment of the dollar amount could be required or, if converted, the proper rate of exchange. The trial court adopted the Commissioner’s facts and, in a February 10, 1967 decision, entered judgment for Kalalo ordering Luz to pay P51,539.91 and $28,000.00 (to be converted into pesos at the current rate at time of payment as certified by the Central Bank), less admitted payments, legal interest from filing, and attorney’s fees of P8,000.00; L...(Pro-only)
Issues:
- Did the December 11, 1961 letter and statement of account (Exhibits 1 and 1‑A) place appellee in estoppel or operate as a binding admission precluding claims inconsistent with those exhibits?
- Should the $28,000.00 claimed for the IRRI project be converted into pesos at the rate of exchange prevailing at the time the obligation was incurred (or at the official preferred rate) or at the rate prevailing at the time of payment (as certified by the Central Bank)?
- Having manifested no objection to the Commissioner’s findings of fact and limited the issues to legal questions, may appellant now challenge the Commissioner’s factual computations of amounts due?
- Did the trial court err in awarding attorney’s fees of P8,000.00 when the Commissioner recommende...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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