- Petitioner
- Astroland Developers
- Respondent
- Government Service Insurance System
- Citation
- G.R. No. 129796
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Callejo, Sr., J.
- Decided
- September 20, 2004
Summary
Astroland Developers, Inc. was designated as project manager for GSIS-financed housing development after original developer QRSI encountered difficulties. Under the Project Management Agreement, Astroland was to complete 1,741 housing units but managed only 626 units due to various operational issues and disputes with QRSI's sales agent. GSIS exercised its contractual right to rescind the management agreements citing valid causes including project delays, cost overruns, and disputes affecting project viability. Astroland sued GSIS for management fees and damages, initially winning at trial court but ultimately losing on appeal. The Supreme Court affirmed that GSIS's rescission was valid under the contract terms, that QRSI rather than GSIS was liable for management fees, and that no bad faith existed to justify damages under Civil Code abuse of rights provisions.