Petitioner
Provincial Government of Sorsogon
Respondent
Constantino Stamatelaky
Citation
G.R. No. 43003
Court
Supreme Court
Division
Second Division
Ponente
Villa-Real, J.
Decided
December 23, 1937

Summary

The Provincial Government of Sorsogon sued contractor Constantino Stamatelaky and his bondsmen for excess costs after the contractor abandoned a hospital construction project. Stamatelaky received P53,460 for 90% completion but abandoned work on November 15, 1929. The government spent P18,078.52 to complete the project, exceeding the P66,000 contract price by P5,538.52. The Supreme Court modified the trial court's judgment, crediting defendants P2,708.03 for unused materials and limiting bondsmen liability to the contract period. Mayon Sawmill's intervention for unpaid materials was successful but limited to materials supplied during the bond's effective period. The case establishes important precedents on government contract completion rights, surety bond limitations, and material supplier intervention rights in construction disputes.

Statutes applied

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By the Intellegal Editorial Board · December 23, 1937

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