J.L. Bernardo Construction v. Court of Appeals

Summary

J.L. Bernardo Construction sued the Municipality of San Antonio for breach of a public market construction contract, seeking unpaid cash equity and reimbursement for demolition expenses totaling P2,653,576.84. The Regional Trial Court granted preliminary attachment and contractor's lien, allowing the company to operate the market. The Court of Appeals nullified both remedies. The Supreme Court upheld the nullification of the contractor's lien, ruling that Articles 2242-2243 of the Civil Code requiring contractor's liens only apply in insolvency proceedings where competing creditor claims can be adjudicated, not in ordinary civil actions. However, the SC reversed the nullification of the attachment, finding the certiorari petition was premature since adequate remedies existed. The case establishes important precedent on the limited application of statutory contractor's liens and proper procedures for challenging interlocutory orders.