Cited Laws
TL;DR — Ruling
WHEREFORE, judgment is hereby rendered in favor of the plaintiff and against the defendant ordering the latter to pay the plaintiff the amount of PhP 19,920,936.17 representing the expenses the plaintiffs incurred for the partial execution of the Project, with 6% legal interest from the date of extrajudicial demand until fully paid. No costs. SO ORDERED.
Accordingly, the remedy of the respondents is allegedly to file their money claim with the Commission on Audit (COA) as prescribed under Act No. 3083 and Commonwealth Act No. 327. The determination of State liability, and the prosecution, enforcement or satisfaction thereof must be pursued in accordance with the rules and procedures laid down in Presidential Decree No. 1445. On 1 February 2008, respondents filed a Reply. Respondents alleged that MMDA was in bad faith when it denied paragraph 10 of the Complaint which was their basis in acting upon the explicit instruction of the MMDA Chairman. The matters are supposed to be within the knowledge of the MMDA because of the Memorandum dated 25 July 2001 by Leopoldo Parumog to Rogelio Uranza recommending the payment of P19,920,936.17 to respondents. Respondents claimed that MMDA was aware of the services they rendered prior to the approval of the contract in light of its admission in paragraph 16. The defenses raised by MMDA based on contract are irrelevant because respondents' cause of action is based on quantum meruit . Respondents countered that upon the final determination by the trial court of MMDA's liability to them, they would file their claims with the COA. Respondents stressed that MMDA is a public corporation created under Presidential Decree No. 824 which can sue and be sued. On 28 February 2008, respondents filed a Motion for Judgment on the Pleadings which was granted by the trial court in its Consolidated Order dated 17 May 2010. On 9 June 2010, the trial court rendered a decision, the dispositive portion of which reads: WHEREFORE, judgment is hereby rendered in favor of the plaintiff and against the defendant ordering the latter to pay the plaintiff the amount of PhP 19,920,936.17 representing the expenses the plaintiffs incurred for the partial execution of the Project, with 6% legal interest from the date of extrajudicial demand until fully paid. No costs. SO ORDERED.