GR 43003; (December, 1937) (Digest)
G.R. No. 43003, December 23, 1937
PROVINCIAL GOVERNMENT OF SORSOGON, plaintiff-appellee, vs. CONSTANTINO STAMATELAKY, JUAN ALCAZAR and JOSE FAJARDO, defendants-appellants. MAYON SAWMILL AND LUMBER CO., INC., intervenor-appellee.
FACTS
The Provincial Government of Sorsogon entered into a contract with Constantino Stamatelaky for the construction of a provincial hospital for P66,000, to be completed within 200 working days. Juan Alcazar and Jose Fajardo acted as sureties on a performance bond. Stamatelaky failed to complete the work on time. The provincial board granted a 50-day extension, to which the sureties consented. After the extension expired, Stamatelaky continued working for another month before abandoning the project. The provincial government took over and completed the construction, spending a total of P71,538.52 (including prior payments to Stamatelaky), which exceeded the contract price by P5,538.52. The government sued to recover this excess from Stamatelaky and his sureties. The Mayon Sawmill & Lumber Co., Inc. intervened to recover P3,140.61 for unpaid materials supplied to Stamatelaky.
ISSUE
1. Whether the amount spent by the provincial government to complete the work was excessive.
2. Whether the sureties’ liability extends to materials supplied to the contractor after the expiration of the extended contract period.
RULING
1. The amount spent by the government was not excessive. The trial court’s findings on the reasonableness of the costs are factual and supported by evidence. The sureties are liable for the excess cost incurred by the government to complete the project, which amounted to P2,830.49 after deducting the value of unused materials left by the contractor.
2. The sureties’ liability is limited to the contractor’s obligations under the original contract and any extensions to which they consented. Their bond secured the payment for materials supplied only until the expiration of the 50-day extension on September 15, 1929. They are not liable for materials supplied after that date. The intervenor’s claim must be segregated to determine the value of materials supplied up to September 15, 1929 (for which the sureties are jointly and severally liable) and after that date (for which only the contractor is liable).
The appealed judgment was modified accordingly.
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