- Petitioner
- Spouses William
- Respondent
- Carlomagno B. Matela
- Citation
- G.R. No. 167767
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Ynares-Santiago, J.
- Decided
- August 29, 2006
Summary
This consolidated petition involved a construction contract dispute between spouses Yao and architect Matela over a two-unit townhouse project. Matela sued for P741,482.00 unpaid balance while spouses claimed he breached contract by using substandard materials and abandoning the project. The RTC and CA initially ruled for Matela based on completion certificates, but the Supreme Court reversed after finding extensive photographic evidence of construction defects and specification violations. The Court applied Article 1192 of the Civil Code, determining both parties breached their reciprocal obligations and it could not be determined who first violated the contract. The contract was deemed extinguished with each party bearing their own losses, considering the P4,699,610.93 already paid as sufficient compensation for Matela's services.