Petitioner
Tondo Medical Center
Respondent
Rolando Rante
Citation
G.R. No. 230645
Court
Supreme Court
Division
Second Division
Ponente
J.C. Reyes, Jr., J.
Decided
July 1, 2019

Summary

This construction dispute involved Tondo Medical Center's termination of Jaderock Builders' hospital renovation contract due to delays and non-completion. While the Supreme Court affirmed that TMC validly terminated the contract for respondent's breach (completing only 74.27% of work), it also sustained findings that both parties breached their obligations. TMC breached by failing to deliver complete project sites, not acting on variation orders within the required timeframe, and not addressing illegal settlers. The Court upheld most of CIAC's monetary awards totaling P2,680,528.91 (reduced from P2,840,323.95) to prevent unjust enrichment, including return of performance bond, partial retention fees, and variation order costs. However, it deleted the attorney's fees award, emphasizing that in mutual breach cases, each party should bear their own damages. The decision reinforced CIAC's technical expertise in construction disputes and the principle of equitable damage mitigation under Civil Code Article 2215.

Statutes applied

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By Intellegal Editorial Board · July 1, 2019

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