G.R. No. 154106 - D.M. WENCESLAO AND ASSOCIATES, INC., AND/OR DOMINADOR S. DAYRIT, VS. READYCON TRADING AND CONSTRUCTION CORP..D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, WENCESLAO paid the downpayment of P235,661.75 to READYCON. Thereafter, READYCON performed its obligation to lay and roll the asphalt materials on the jobsite. [7] Fifteen (15) days after performance of said work, READYCON demanded that WENCESLAO pay the balance of the contract price. WENCESLAO, however, ignored said demand. On May 30, 1991, the counsel for READYCON wrote a demand letter to WENCESLAO asking that it make good on the balance it owed. Again, WENCESLAO failed to heed the demand. It did not even bother to reply to the demand letter. [8] In view of this development, on July 19, 1991, READYCON filed a complaint with the Regional Trial Court of Pasig City for collection of a sum of money and damages, with prayer for writ of preliminary attachment against D.M. Wenceslao and/or Dominador Dayrit, docketed as Civil Case No. 61159. READYCON demanded payment of P1,014,110.45 from petitioners herein with P914,870.75 as the balance of contract price, as well as payment of P99,239.70, representing another unpaid account. [9] As READYCON timely posted the required bond of P1,150,000, its application for the writ of preliminary attachment was granted. On September 5, 1991, the RTC Sheriff attached certain assets of WENCESLAO, particularly, the following heavy equipments: One (1) asphalt paver, one (1) bulldozer, one (1) dozer and one (1) grader. [10] On September 16, 1991, WENCESLAO moved for the release of the attached equipments and posted its counter-bond. The trial court granted the motion and directed the RTC Sheriff to return the attached equipments. On September 25, 1991, the Sheriff released the attached heavy machineries to WENCESLAO. [11] In the proceedings below, WENCESLAO admitted that it owed READYCON P1,014,110.45 indeed. However, it alleged that their contract was not merely one of sale but also of service, namely, that respondent shall lay the asphalt in accordance with the specifications and standards imposed by and acceptable to the government. WENCESLAO also alleged that since the contract did not indicate this condition with respect to the period within which the balance must be paid, the contract failed to reflect the true intention of the parties. [12] It alleged READYCON agreed that the balance in the payments would be settled only after the government had accepted READYCONs work as to its quality in laying the asphalt. By way of counterclaim, WENCESLAO prayed for the payment of damages caused by the filing of READYCONs complaint and the issuance of the writ of attachment despite lack of cause. [13] On December 26, 1994, the RTC rendered judgment in this wise: WHEREFORE, judgment is hereby rendered ordering the defendant D.M. Wenceslao & Associates, Inc. to pay plaintiff as follows: The amount of P1,014,110.45 with interest at the rate of 12% per annum (compounded annually) from August 9, 1991, date of filing of the complaint, until fully paid. The amount of P35,000.00 as and for attorneys fees and expenses of