- Petitioner
- Prudential Guarantee
- Respondent
- Equinox Land Corporation
- Citation
- G.R. No. 152505
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Sandoval-Gutierrez, J.
- Decided
- September 13, 2007
Summary
Equinox Land Corporation contracted J'Marc Construction for P37 million to build additional floors to Eastgate Centre. Prudential Guarantee issued surety and performance bonds totaling P16.65 million. When J'Marc failed to meet construction schedule and accomplished only 19% of work after 4 months, Equinox terminated the contract and claimed against both parties. The Supreme Court upheld CIAC jurisdiction over the surety company and affirmed Prudential's solidary liability with J'Marc under the bonds. The Court ruled that Prudential, having initially invoked CIAC jurisdiction before RTC, was estopped from later questioning it. As surety, Prudential's obligation was primary and direct, making it solidarily liable with the principal debtor for the construction contract breach damages totaling nearly P6 million.