Case Digest (G.R. No. 198531)
Facts:
On 19 June 1992, Angelito M. TwaAo, then OIC-District Engineer of the Department of Public Works and Highways (DPWH) Pampanga 2nd Engineering District, invited bids for the construction of a dike by bulldozing a section of the Porac River in Barangay Ascomo-Pulungmasle, Guagua, Pampanga. Respondent Arnulfo D. Aquino, owner of A.D. Aquino Construction and Supplies, submitted the lowest bid and was awarded the contract on 7 July 1992. A “Contract of Agreement” in the amount of Php1,873,790.69 was executed between Aquino and the DPWH officials, including Secretary Gregorio R. Vigilar and Undersecretaries Teodoro E. Encarnacion and Edmundo E. Encarnacion. By 9 July 1992, the project was completed, and a Certificate of Project Completion dated 16 July 1992 was signed by Project Engineer Romeo M. Yumul, Chief of the Construction Section Romeo N. Supan, and OIC-District Engineer TwaAo. Aquino claimed that Php1,262,696.20 remained unpaid, but the DPWH refused settlement. Accordingly, Aq...Case Digest (G.R. No. 198531)
Facts:
- Invitation to Contract and Award
- On 19 June 1992, Angelito M. TwaAo, OIC-District Engineer of DPWH Pampanga 2nd Engineering District, sent an Invitation to Bid to Arnulfo D. Aquino of A.D. Aquino Construction and Supplies for the construction of a dike by bulldozing part of Porac River at Barangay Ascomo-Pulungmasle, Guagua, Pampanga.
- On 7 July 1992, the project was awarded to Aquino under a “Contract of Agreement” amounting to ₱1,873,790.69.
- Performance of the Contract
- Aquino completed the project by 9 July 1992.
- A Certificate of Project Completion dated 16 July 1992 was issued by Project Engineer Romeo M. Yumul, Chief of Construction Section Romeo N. Supan, and OIC-District Engineer TwaAo.
- Dispute Arises and Trial Court Proceedings
- Aquino claimed an unpaid balance of ₱1,262,696.20; DPWH refused payment.
- Aquino filed Civil Case No. 3137 before the RTC of Guagua, Pampanga, seeking collection of money with damages.
- DPWH raised defenses: (a) state immunity from suit, (b) failure to exhaust administrative remedies, and (c) void contract under PD No. 1445 for lack of appropriation and COA certificate of availability of funds.
- Decisions of the Lower Courts
- On 28 November 2003, the RTC ordered DPWH to pay Aquino ₱1,873,790.69, attorney’s fees of ₱50,000.00, and costs.
- On 25 September 2006, the Court of Appeals declared the contract null and void ab initio, reversed the RTC decision, and directed COA to determine and allow quantum meruit payment to Aquino.
Issues:
- Whether the Court of Appeals erred in holding that the doctrine of non-suability of the State has no application.
- Whether the Court of Appeals erred in not dismissing the complaint for failure to exhaust administrative remedies.
- Whether the Court of Appeals erred in ordering COA to allow payment on a quantum meruit basis despite non-compliance with PD No. 1445.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)