Marmont Resort Hotel Enterprises v. Federico Guiang

Summary

Marmont Resort Hotel sued property occupants Federico and Aurora Guiang for damages after being denied access to a water supply facility installed on their land. The facility was built through contractual arrangements between Marmont and Maris Trading, with Maris Trading subsequently acquiring possessory rights from the Guiang spouses. Both the trial court and Court of Appeals dismissed the case, finding insufficient evidence that Marmont had acquired rights to the facility. However, the Supreme Court reversed, ruling that the agreements constituted a stipulation pour autrui that benefited Marmont as a third party. The Court held that the Guiang spouses acted contrary to good faith principles by denying access to a facility specifically intended for the hotel's benefit. The case was remanded for damages determination, establishing important precedent on third-party beneficiary contracts and the duty of good faith in contractual relationships.