Case Digest (G.R. No. 137915)
Facts:
Narra Integrated Corporation v. The Court of Appeals and NC Industrial Trade, Inc., G.R. No. 137915, November 15, 2000, Supreme Court Third Division, Gonzaga-Reyes, J., writing for the Court.The private respondent, NC Industrial Trade, Inc., contracted with petitioner Narra Integrated Corporation by a letter contract dated November 6, 1991 to perform three subcontracted works for the Kyung-Il Philippines project in Dasmariñas, Cavite: (A) installation of an electrical power distribution system (P3,683,710.00), (B) piping installation for a wastewater treatment plant (P1,344,100.00), and (C) fabrication, delivery and installation of catwalk railings and ladder (P1,485,776.93). The undertakings were evidenced by sales invoices (Nos. 103, 105, 106, 107, 108) dated May–August 1992. After alleged nonpayment, NC Industrial Trade sent a demand letter dated October 24, 1992 and then filed a complaint for sum of money and damages to recover the unpaid balance of P1,485,776.93.
In the Regional Trial Court, Branch 141, Makati (Civil Case No. 92-3567), Narra Integrated Corporation answered, admitting the contract but asserting affirmative defenses: it characterized NC as a subcontractor whose payments were subject to the project owner’s (Kyung-Il) progress payments and alleged that Kyung-Il was withholding payment because of alleged defects in work (including work by NC). Narra also filed a third-party complaint against Kyung-Il Philippines, Inc. for indemnity/contribution; that third-party complaint was initially dismissed for procedural defects but later reinstated after compliance with Supreme Court Circular No. 28-91.
Private respondent moved for partial summary judgment on the unpaid balance, attaching invoices, the letter contract, and affidavits including one by Narra’s General Manager, Francisco Overall. Narra opposed, alleging genuine issues on acceptance of work and existence of conditions precedent to payment. The trial court granted partial summary judgment, finding no genuine triable issues and holding Narra liable for P1,485,776.93, attorney’s fees of P10,000.00 and costs.
Petitioner appealed to the Court of Appeals (C.A. G.R. CV No. 54397). The Court of Appeals affirmed the trial court in a Decision dated November 27, 1998; petitioner’s motion for reconsideration was denied on March 12, 1999. Petitioner then filed this petition for review on certio...(Pro-only)
Issues:
- Procedural: Was the grant of partial summary judgment proper, i.e., did the Court of Appeals err in affirming the trial court’s summary judgment despite Narra’s answer alleging issues?
- Substantive: Did Narra’s pleadings and evidence raise genuine triable issues as to (a) whether there had been final acceptance (by Narra or the project owner) of the work and (b) whether contractual conditions (e.g., retention release upon final acceptance) excused payment of the unpaid balance?
- Procedural/Substantive: Should the trial court have deferred resolution of NC Industrial Trade’s claim until the disposition of Narra’...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)