Spouses Victoriano Chung v · G.R. 156038

Petitioner: Spouses Victoriano Chung
Respondent: Ulanday Construction
Citation: G.R. No. 156038
Court: Supreme Court
Division: Third Division
Ponente: Brion, J.
Decided: October 11, 2010

Summary

This Supreme Court case involved a construction contract dispute between homeowner spouses and a construction company over a residential house project in Makati City. The contractor performed unauthorized change orders worth nearly P1 million without the required written approval, while the homeowners delayed progress billing payments. Both parties claimed contract breaches. The RTC and CA ruled differently on the application of Civil Code Article 1724 governing additional costs in construction contracts. The Supreme Court ultimately applied Article 1724 correctly, ruling that change orders require written owner approval and cannot be recovered through estoppel. The Court ordered a set-off between the homeowners' outstanding obligations (P575,922.13) and the contractor's liability for construction defects (P717,524.00), resulting in a net award of P141,601.87 to the homeowners. The decision reinforces the importance of strict compliance with contractual terms in construction agreements and proper application of Civil Code provisions on construction contracts.

Statutes applied

Civil Code, Art. 1724

Related cases

Other Philippine cases on the same provisions and issues.

Victoria Ong v. Ernesto Bogñalbal G.R. No. 149140
Uniwide Sales Realty v. Titan-Ikeda Construction G.R. No. 126619
Federal Builders v. Power Factors G.R. No. 211504
Filinvest Alabang v. Century Iron Works G.R. No. 213229
R.G. Palanca Construction v. Dr. Francis C. Solco G.R. No. 168284
The President of the Church of Jesus Christ of Latter Day Saints v. Btl Construction Corporation G.R. No. 176439
Licomcen v. Engr. Salvador Abainza G.R. No. 199781
Leighton Contractors Philippines v. Cnp Industries G.R. No. 160972

By the Intellegal Editorial Board · October 11, 2010

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