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Federal Builders v. Foundation Specialists
Federal Builders v. Foundation Specialists
DOCTRINE:
If a party failed to present any evidence to justify its refusal to pay the other
party for works it was contracted to perform; then he will incur in delay,
entitling the other party to damages.
FACTS
On August 30, 1991, FSI made its claim against FBI through a letter
demanding payment for its services but to no avail. FSI then filed a complaint
for sum of money against FBI with accrued interest plus moral and exemplary
damages with attorney’s fees; alleging that FBI refused to pay said amount
despite demand and its completion of 97% of the contracted works.
FBI, on the other hand, claimed that FSI completed only 85% of the
contracted works, failing to finish the diaphragm wall and component works in
accordance with the plans and specifications and abandoning the jobsite. It
maintains that because of FSI’s inadequacy, its schedule in finishing the
project has been delayed resulting in the Project owner’s deferment of its
payment. It further interposed counterclaims for amounts it spent for the
remedial works on the alleged defects in FSI’s work.
ISSUE:
RULING
1. No.
The delay was in fact attributable to FBI from the time an extrajudicial
demand was made by FSI on August 30, 1991.
FSI had finished the construction of the guide wall and diaphragm wall but
had not yet constructed the capping beam for FBI’s failure to deliver the
needed cement despite the demand of FSI.
In fact, FBI even admitted that it had paid ₱6 million based on its evaluation
of plaintiff’s accomplishments and its payment was made without objection on
plaintiff’s works, the majority of which were for the accomplishments in the
construction of the diaphragm wall.
Thus, in the absence of any record to otherwise prove FSI’s neglect in the
fulfilment of its obligations under the contract, the Supreme Court shall refrain
from reversing the findings of the RTC, which are fully supported by and
deducible from, the evidence on record. Indeed, FBI failed to present any
evidence to justify its refusal to pay FSI for the works it was contracted to
perform.
2. No.