Benguet Corporation v. Cesar · G.R. 151402

Petitioner: Benguet Corporation
Respondent: Cesar Cabildo
Citation: G.R. No. 151402
Court: Supreme Court
Division: Third Division
Ponente: Nachura, J.
Decided: August 22, 2008

Summary

Former Benguet Corporation employee Cesar Cabildo contracted to paint Mill Buildings and Bunkhouses at Balatoc mining site for P27,332.60 and other considerations. Benguet Corporation later awarded overlapping contracts to another contractor (Velasco) at lower prices and prevented Cabildo from completing his work, claiming the original contract covered only exterior painting. The Supreme Court rejected this interpretation, finding the contract language clear and unambiguous in requiring complete painting of Mill Buildings. The Court applied Civil Code contract interpretation principles, noting that contemporaneous acts showed both parties understood the work to include interior and exterior painting. Benguet Corporation was held liable for breach of contract and ordered to pay actual damages, unrealized profits, moral and exemplary damages, and attorney's fees totaling over P500,000.

Statutes applied

Civil Code, Art. 1370

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By the Intellegal Editorial Board · August 22, 2008

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