Petitioner
Asian Construction
Respondent
Philippine Commercial International Bank
Citation
G.R. No. 153827
Court
Supreme Court
Division
Second Division
Ponente
Garcia, J.
Decided
April 25, 2006

Summary

This commercial law case involved a dispute between construction company ASIAKONSTRUKT and PCIBANK over US$4.5 million in unpaid loans secured by assignment of receivables. PCIBANK alleged fraud when ASIAKONSTRUKT collected but failed to remit assigned contract proceeds. The trial court granted summary judgment, finding no genuine issues of fact despite ASIAKONSTRUKT's defense of financial hardship from the 1997 Asian crisis. The Court of Appeals affirmed with reduced attorney's fees, and the Supreme Court upheld the decision, emphasizing that economic difficulties do not excuse contractual obligations and that defendants must support their defenses with proper affidavits to avoid summary judgment. The case demonstrates the application of summary judgment rules in commercial disputes and the binding force of contracts despite economic hardships.

Statutes applied

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By the Intellegal Editorial Board · April 25, 2006

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