- Petitioner
- Movertrade Corporation
- Respondent
- The Commission On Audit
- Citation
- G.R. No. 204835
- Court
- Supreme Court En Banc
- Division
- En Banc
- Ponente
- Del Castillo, J.
- Decided
- September 22, 2015
Summary
Movertrade Corporation sought payment of P7,354,897.10 for dredging works performed through side dumping, which violated their contract with DPWH. Despite DPWH's consistent prohibition and provision of designated spoil sites, Movertrade dumped 165,576.27 cubic meters of dredge spoils back into the river instead of at pre-designated areas as required by paragraph 11 of their contract. The COA denied payment, finding breach of contract, and the Supreme Court affirmed, emphasizing that contracts must be performed in good faith per Civil Code Art. 1159. The Court rejected Movertrade's justifications and distinction between 'side dumping' and 'free dumping,' holding that both violated contract terms and defeated the purpose of dredging by allowing spoils to flow back into the channel, thus wasting government funds.