- Petitioner
- Fort Bonifacio Development Corporation
- Respondent
- Valentin L. Fong
- Citation
- G.R. No. 209370
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Perlas-Bernabe, J.
- Decided
- March 25, 2015
Summary
FBDC contracted MS Maxco for condominium construction work with 5% retention money clause. Due to MS Maxco's defective performance, FBDC hired other contractors and deducted rectification costs from retention money. MS Maxco assigned P1,577,115.90 from retention money to Fong via Deed of Assignment. FBDC refused payment, invoking contractual provision requiring written consent for assignments. RTC and CA ruled for Fong, finding assignment valid under Civil Code requiring only notice to debtor. Supreme Court reversed, holding that assignees are bound by original contract terms including consent requirements. The Court applied the principle that assignees cannot acquire greater rights than assignors possessed, making the practical efficacy of assignment contingent on FBDC's consent. The decision reinforces the binding nature of contractual stipulations on assignees through the principle of subrogation inherent in assignments.