Kabisig Real Wealth Dev. v. Young Builders Corporation

Summary

This Supreme Court case involves a contractual dispute over payment for construction services. Young Builders Corporation renovated Kabisig Real Wealth Dev., Inc.'s building in 2001 but was not paid the P4,123,320.95 bill. Kabisig claimed no written contract existed. The RTC awarded actual damages, but the Court of Appeals reduced this to P2,400,000.00 temperate damages, finding insufficient proof of actual damages. The Supreme Court affirmed the CA decision, applying the quantum meruit principle to ensure reasonable compensation for completed work. The Court emphasized that contracts need not be written to be valid under Civil Code Article 1356, requiring only consent, object, and cause. The decision prevented unjust enrichment while establishing clear guidelines for temperate damages when actual damages cannot be proven with certainty.