Engr. Ruben Y. Yu v. Heirs of Manuel Sia

Summary

This case involves a construction contract dispute where contractor Ruben Yu sought payment of P448,240.00 balance from building owners, the Heirs of Manuel Sia. The 4-storey commercial building was completed in 2003 but violated Presidential Decree No. 1096 building code requirements for minimum room sizes. Both parties were aware from the start that the approved building plans did not comply with building standards. The Supreme Court applied the in pari delicto doctrine, finding both parties equally culpable for knowingly constructing a building in violation of law. Ruben, as a licensed contractor and engineer, should have refused to build non-compliant structures, while Rosemarie, as owner, should have ensured compliance before approving plans and operating the hotel without proper permits. The Court dismissed both the contractor's claim for payment and the owner's counterclaim for renovation costs, leaving both parties without remedy due to their mutual fault in creating an illegal contract.