GR 179103; (September, 2009) (Digest)
G.R. No. 179103 & 180209 September 17, 2009
NATIONAL POWER CORPORATION, Petitioner, vs. PREMIER SHIPPING LINES, INC., Respondent. (and the consolidated case)
FACTS
The National Power Corporation (NAPOCOR) contracted Premier Shipping Lines, Inc. (Premier) to haul 924 wood poles from Bacolod to several destinations. The contract was on a “door-to-door” and “lot price” basis. After contract execution, NAPOCOR requested a change in a delivery point, which the parties settled via a supplemental contract for additional compensation. Upon loading, Premier discovered many poles were rotten, requiring manual segregation of serviceable from unserviceable ones—a task not stipulated in the contract. This segregation caused an 18-day loading delay. Furthermore, at the delivery point in San Jose, Mindoro, Premier had to clear the stockyard and transport poles over a longer distance than anticipated.
ISSUE
The primary issue is whether Premier is entitled to additional compensation for the extra work of segregating the wood poles and for the unforeseen expenses incurred during delivery at San Jose, Mindoro, beyond the original “lot price” contract terms.
RULING
Yes, Premier is entitled to additional compensation. The Supreme Court affirmed the Court of Appeals’ decision. The legal logic rests on the principle of unjust enrichment and the nature of the parties’ agreements. While the original and supplemental contracts were for a “lot price,” this pertained only to the hauling of 924 poles as specified. The subsequent segregation of rotten poles was an entirely separate, extra-contractual task ordered by NAPOCOR’s project manager and certified by its officer. This task was not part of the bargained-for hauling service and caused significant delay and additional cost. NAPOCOR, having accepted the benefit of this segregation, cannot unjustly enrich itself by refusing to pay for it.
Regarding the delivery in San Jose, the “door-to-door” stipulation implied delivery to an accessible and prepared site. The need for Premier to clear the stockyard and traverse a longer distance constituted a substantial change in the mode of delivery, constituting extra work beyond the contract’s contemplation. The certifications issued by NAPOCOR’s own officers substantiated these additional tasks. Therefore, NAPOCOR is liable for the reasonable costs incurred by Premier for these extra services, as they were not covered by the fixed contract price. The Court modified the awarded amounts for reasonableness but upheld the entitlement.