- Petitioner
- Republic of the Philippines
- Respondent
- Davao Contractors Development Cooperative [Dacodeco]
- Citation
- G.R. No. 210029
- Court
- Supreme Court
- Division
- First Division
- Decided
- November 20, 2017
Summary
DACODECO constructed water systems under contracts with barangay captains but was ordered to stop by DPWH after 45% completion due to lack of authority. DPWH later awarded the projects to another contractor through bidding. DACODECO sued to recover payment based on quasi-contract principles. The Supreme Court affirmed lower courts' denial of DPWH's motion to dismiss, ruling that quasi-contracts under Article 2142 of the Civil Code apply to prevent unjust enrichment, even without direct contractual relationship. The Court held that allowing DPWH to pay the new contractor without considering DACODECO's accomplishments would constitute unjust enrichment, establishing that benefits received from construction work create quasi-contractual obligations regardless of the absence of formal contracts between the parties.