Felicito Garcia v. Jolliville · G.R. 229286

Petitioner: Felicito Garcia
Respondent: Jolliville Group Management
Citation: G.R. No. 229286
Court: Supreme Court
Division: First Division
Decided: October 11, 2023

Summary

This case involves a software development contract dispute between Foxchit Software Solutions and Jolliville Group Management. Foxchit was contracted to develop a Point-of-Sale system for Jolliville's KTV establishments but failed to deliver a complete, functional system despite receiving payment. The system experienced malfunctions including 'disappearing orders' and remained incomplete after six months. Jolliville discovered Foxchit had installed the same system at a competitor and terminated the contract, demanding refund of service fees and hiring a new programmer at additional cost. The Supreme Court affirmed lower court decisions ordering Foxchit to refund P100,000.00 in service fees and reimburse P500,000.00 for replacement programmer costs, with legal interest, based on breach of reciprocal obligations under the Civil Code. The case demonstrates application of contract law principles regarding delay, rescission, and damages for non-performance in software development agreements.

Statutes applied

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By Intellegal Editorial Board · October 11, 2023

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