- Petitioner
- University of the Philippines
- Respondent
- Domingo P. Gabriel
- Citation
- G.R. No. 70826
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Gutierrez, Jr., J.
- Decided
- October 12, 1987
Summary
Allied Plumbing Company sued University of the Philippines and Beta Construction Company for P68,843.98 unpaid balance for plumbing work on UP's Biological Science Building. The trial court and Intermediate Appellate Court held UP solidarily liable under Article 1729 of the Civil Code, finding UP liable for continuing payments to Beta after receiving notice of Allied's unpaid claim. The Supreme Court reversed, holding UP not liable because: (1) the sub-contract required UP approval of completed works before payment obligation arose, and no such approval was shown; (2) as a public institution performing governmental functions, UP's construction constituted public works governed by Act 3688, not Act 3959; and (3) Allied should have proceeded against Beta and its surety under the performance bond rather than against UP. The decision clarifies the distinction between private and public construction projects and the different legal frameworks governing contractor payment obligations.