- Petitioner
- Victoria Ong
- Respondent
- Ernesto Bogñalbal
- Citation
- G.R. No. 149140
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Chico-Nazario, J.
- Decided
- September 12, 2006
Summary
Victoria Ong contracted with Ernesto Bogñalbal for P200,000 boutique construction at Shangri-La Plaza. After paying three progress billings, Ong refused the fourth billing of P30,950 despite architect certification, demanding Kenzo flooring completion first. Bogñalbal abandoned the project and sued for payment. The Metropolitan Trial Court awarded Bogñalbal P103,950 total. The Regional Trial Court reversed, but the Court of Appeals reinstated the MeTC decision. The Supreme Court affirmed via certiorari, rejecting Ong's novation defense and finding her liable as the first contract breacher under Article 1192. The Court ruled that while Bogñalbal's abandonment was unjustified, Ong's payment refusal constituted substantial breach justifying the monetary award, with architect certifications being conclusive absent fraud or manifest error.