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  • Del Monte Vs Aragones

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    This case involves a dispute over a supply agreement between Dynablock Enterprises (represented by Aragones) and MEGA-WAFF Construction (represented by Garcia) to provide labor, materials, and equipment for a project with Del Monte Philippines Inc. (DMPI). Aragones was not fully paid for his work. The Supreme Court ruled the supply agreement was a contract for a piece of work, not a contract of sale, because the goods were manufactured specially for the customer based on their specifications. As such, under Article 1729 of the Civil Code, Aragones had a right of action against DMPI, as the owner, up to the amount DMPI owed the contractor at the time the claim was made

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    This case involves a dispute over a supply agreement between Dynablock Enterprises (represented by Aragones) and MEGA-WAFF Construction (represented by Garcia) to provide labor, materials, and equipment for a project with Del Monte Philippines Inc. (DMPI). Aragones was not fully paid for his work. The Supreme Court ruled the supply agreement was a contract for a piece of work, not a contract of sale, because the goods were manufactured specially for the customer based on their specifications. As such, under Article 1729 of the Civil Code, Aragones had a right of action against DMPI, as the owner, up to the amount DMPI owed the contractor at the time the claim was made

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    © All Rights Reserved
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    80 views1 page

    Del Monte Vs Aragones

    Uploaded by

    ara
    This case involves a dispute over a supply agreement between Dynablock Enterprises (represented by Aragones) and MEGA-WAFF Construction (represented by Garcia) to provide labor, materials, and equipment for a project with Del Monte Philippines Inc. (DMPI). Aragones was not fully paid for his work. The Supreme Court ruled the supply agreement was a contract for a piece of work, not a contract of sale, because the goods were manufactured specially for the customer based on their specifications. As such, under Article 1729 of the Civil Code, Aragones had a right of action against DMPI, as the owner, up to the amount DMPI owed the contractor at the time the claim was made

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    of 1

    Del Monte Ph, Inc.

    vs Napoleon Aragones
    G.R. No. 153033
    June 23, 2005

    Facts: Del Monte Philippines Inc. (DMPI) entered into an agreement with Mega-Engineering
    Services in joint venture with WAFF Construction System Corporation (MEGA-WAFF) represented
    by Edilberto Garcia (Garcia), wherein Garcia will supply the installation of modular pavement in
    DMPI‘s warehouse. In this regard, Garcia as a contractor entered into a supply agreement with
    Dynablock Enterprises represented by respondent Aragones, to supply labor, materials, equipment
    and the like.

    Thereafter, Argones started to do his obligation. The deadline however was not met. After the
    installation, Aragones failed to collect the payment from Garcia. Then, Aragones sent a letter to
    DMPI saying that instead of paying Garcia, DMPI should directly pay him. But this did not happen.
    Hence Aragones filed a complaint for sum of money with damages against Garcia and DMPI
    before RTC.

    RTC ruled in favor of Aragones, it held that DMPI and Garcia are jointly and severally liable. DMPI
    appealed to Court of Appeal (CA). However at CA, the court affirmed RTC‘s decision. Hence,
    DMPI filed this petition. It contends that the supply agreement between Garcia and Aragones is a
    contract of sale to which DMPI was not privy, hence DMPI cannot be held liable.

    Issue: Whether or not Supply Agreement between Aragones and Garcia is a contract of sale

    Held: Contrary to DMPI‘s claim that ―save for the shape, there was no consideration of any
    special needs or requirements of DMPI taken into account in the design or manufacture of the
    concrete paving blocks,‖ the ―Supply Agreement is replete with specifications, terms or conditions
    showing that it was one for a piece of work.

    As reflected in the highlighted and underscored above-quoted provisions of the ―Supply


    Agreement, as well as other evidence on record, the machines Aragones was obliged to fabricate
    were those for casting the concrete blocks specified by Garcia. Aragones did not have those kind
    of machines in his usual business, hence, the special order.

    Under Article 1467 then of the Civil Code, a contract for the delivery at a certain price of an article
    which the vendor in the ordinary course of his business manufactures or procures for the general
    market, whether the same is on hand at the time or not, is a contract of sale, but if the goods are to
    be manufactured specially for the customer and upon his special order, and not for the general
    market, it is a contract for a piece of work. The Supply Agreement was decidedly a contract for a
    piece of work.

    Following Art. 1729 of the Civil Code which provides that those who put their labor upon or furnish
    materials for a piece of work undertaken by the contractor have an action against the owner up to
    the amount owing from the latter to the contractor at the time the claim is made.

    Aragones having specially fabricated three casting machines and furnished some materials for the
    production of the concrete blocks specially ordered and specified by MEGA-WAFF which were to
    be and indeed they were for the exclusive use of MEGA-WAFF, he has a cause of action upon
    DMPI up to the amount it owed MEGA-WAFF at the time Aragones made his claim to DMPI

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