- Petitioner
- Phil-Air Conditioning Center
- Respondent
- Rcj Lines
- Citation
- G.R. No. 193821
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Jr., J.
- Decided
- November 23, 2015
Summary
Phil-Air sold air-conditioning units worth P1.24M to bus company RCJ Lines, which paid only P400,000 and issued dishonored checks for the balance. RCJ Lines claimed breach of warranty, alleging units were unsuitable for their buses. The trial court and appellate court dismissed Phil-Air's collection suit, finding laches and warranty breach. The Supreme Court reversed, holding that filing within the 10-year prescriptive period bars application of laches doctrine. The Court found no valid warranty breach as RCJ Lines failed to provide proper notice to Phil-Air within reasonable time as required by law. Evidence of defects was deemed self-serving and uncorroborated. The decision clarifies the relationship between laches and statutory limitation periods, emphasizing that laches generally cannot bar actions filed within prescribed time limits. RCJ Lines was ordered to pay the P840,000 balance plus interest and attorney's fees.