GR 163359; (March, 2007) (Digest)
G.R. No. 163359 March 6, 2007
Industrial Technology Development Institute, represented by Dr. Rufino C. Lirag, Jr., Petitioner, vs. Rufino M. Villanueva, doing business under the name and style of R.M. Villanueva Construction, Respondent.
FACTS
Petitioner ITDI and respondent RMVC entered into a construction contract for a laboratory building. RMVC fell behind schedule, attributing the delay to corrective work on structural defects from a prior phase. ITDI, finding the causes imputable to RMVC and performed without approval, terminated the contract. ITDI’s committee evaluated RMVC’s accomplishment at only 46.7139% and claimed liquidated damages.
RMVC filed a complaint for sum of money. The trial court ruled in its favor, awarding actual damages and the value of construction materials left on site. The Court of Appeals affirmed with modifications, reducing the awards but finding RMVC completed 51.48% of the project, entitling it to corresponding payment. ITDI appealed, contending the correct accomplishment rate was only 46.71%.
ISSUE
Whether the Court of Appeals erred in its factual finding that RMVC accomplished 51.48% of the project, thereby determining the correct amount of actual damages due.
RULING
The Supreme Court modified the appellate court’s decision. While factual findings of the Court of Appeals are generally conclusive, a review was warranted due to the conflict between the trial court’s and the appellate court’s findings. The Court examined the evidence and found ITDI’s computation more credible.
The 51.48% figure relied upon by the Court of Appeals was based merely on RMVC’s allegation in its amended complaint, which was an unsupported judicial admission. In contrast, ITDI presented the official Project Evaluation Review Technique (PERT/CPM) report from the DOST Infrastructure Committee, which pegged the accomplishment at 46.7139%. This document was prepared by a disinterested committee and constituted the best evidence of project status. Consequently, RMVC was entitled to payment only for 46.71% of the contract price. After deducting previous payments, the actual damages due amounted only to ₱33,909.97. However, the Court sustained the award of ₱713,992.00 for construction materials, as ITDI itself admitted to appropriating materials worth that amount. Legal interest was imposed on the monetary awards from finality until full payment.