- Petitioner
- Werr Corporation International
- Respondent
- Highlands Prime
- Citation
- G.R. No. 187543
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Jardeleza, J.
- Decided
- February 8, 2017
Summary
This consolidated Supreme Court case involves a construction contract dispute between Werr Corporation International (contractor) and Highlands Prime, Inc. (project owner) over a P271.8 million condominium project in Batangas. After project delays and contract termination, Werr claimed unpaid retention money while HPI counterclaimed for liquidated damages. The CIAC awarded Werr P10.9 million but limited liquidated damages to 9.327 days based on substantial completion doctrine. The Court of Appeals modified this, computing 33 days of delay until contract termination, awarding HPI P8.9 million in liquidated damages. The Supreme Court affirmed, ruling that while construction industry practices may supplement contracts under Civil Code Article 1376, the substantial completion defense only applies when contractors actually achieve 95% completion. Since Werr only reached 93.18%, it could not benefit from the substantial completion rule limiting liquidated damages.