GR L 1810; (January, 1906) (Digest)
FACTS:
Plaintiff J.W. Marker contracted defendant Eulogio Garcia, a contractor and architect, to build a skating rink for 7,250 pesos (Mexican currency). Marker sued for damages, alleging Garcia failed to complete the work on time and constructed the building with inferior materials and poor workmanship, rendering it unfit for use. Garcia countered that delays were due to changes requested by Marker, that the work and materials complied with the contract, and that the parties had entered into a new contract fixing the price at 10,969 pesos, leaving a balance owed to him. The trial court found Garcia liable for breach of contract due to substandard materials and workmanship and awarded Marker damages amounting to 3,625 pesos (50% of the contract price).
ISSUE:
Whether the trial court correctly determined the amount of damages awarded to the plaintiff for the defendant’s breach of contract.
RULING:
No. The Supreme Court affirmed the trial court’s finding that Garcia breached the contract by using inferior materials and workmanship. However, it reversed the award of 3,625 pesos for lack of evidentiary basis. The Court held that, except for punitive damages, a claimant must prove the precise amount of damages with competent evidence. The only competent evidence in the record was Marker’s expenditure of 1,100 pesos (Mexican) for necessary repairs to correct the defects. This amount, not an arbitrary percentage of the contract price, constitutes the proper measure of actual damages. The case was remanded for the entry of a new judgment awarding Marker 1,100 pesos (Mexican), with legal interest from the commencement of the action. No costs were awarded on appeal.