G.R. No. 177210 - SUMMA KUMAGAI, INC. - KUMAGAI, GUMI CO., LTD. JOINT VENTURE, VS. ROMAGO, INCORPORATED.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, judgment is hereby rendered and award made on the monetary claims of the parties as FOLLOWS: A. In favor of the [herein respondent]-Sub Contractor ROMAGO, INC., against [herein petitioner] Main Contractor SUMMA KUMAGAI, INC., KUMAGAI GUMI CO., LTD. JOINT VENTURE: P2,195,535.18 - as the admitted liability of the [SK-KG] to the [Romago] for the unpaid balance of the PMIs and the CIs. P480,538.89 - for the total of Claim Items Nos. 186, 187 and 198 of the unreconciled items on this claim. P296,039.37 - representing what [SK-KG] admittedly had mistakenly overcharged [Romago] for its electric power consumption interest at the rate of 6% per annum shall be computed from 29 October 2003 up to the date of payment. P263,984.95 - for the installation of the ECB's. Interest at the rate of 6% per annum shall be computed from 06 September 2003 up to the date of payment. P484,883.26 - for the costs of power interconnection to the DDC. Interest at the rate of 6% per annum shall be computed from 14 July 2003 up to the date of payment. P553,225.20 - for the installation of extension ring boxes to connect pipes and to complete the rough-in conduit works performed by the previous Electrical Sub-Contractor, Engineering Equipment Incorporated SKI-KG JV. P3,568,077.03 - as reimbursement of [Romago's] bid amount based on the OLEX Brand of Fire Rated Cable. P157,675.05 - as payment for rectification works due to spatial clashes in the second floor. P7,999,958.13 - TOTAL DUE TO [Romago] B. In favor of the [petitioner]-Main Contractor SUMMA KUMAGAI, INC., - KUMAGAI GUMI CO., LTD JOINT VENTURE and against the [respondent]-Sub Contractor ROMAGO, INC. P5,351,057.36 - on its counterclaim, for the unrecouped actual cost of Supplemental Manpower; P5,575,310.03 - on its counterclaim for the unrecouped actual cost of tools, materials and equipment. P25,729,263.86 - as the unrecouped balance of the cash advances given to the [Romago]. P1,131,244.29 - as the deductions or backcharges admitted by the [respondent] to have been validly made. P37,786,875.04 - TOTAL DUE TO [SK-KG] OFFSETTING the foregoing awards respectively made to the parties, there remains a balance of P29,786,916.912 in favor of [SK-KG]. [3] It is hereby DIRECTED that [SK-KG] shall release the sum of P7,375,400.39 being the balance of the Retention Sum after the warranty period on 10 June 2005. Romago filed a Petition for Review with the Court of Appeals, which was docketed as CA-G.R. SP No. 89959. Meanwhile, SK-KG filed with the CIAC a Motion for Execution of the CIAC award. On 30 January 2006, CIAC granted the Motion. On 30 March 2006, CIAC issued a Writ of Execution. On 12 May 2006, the Court of Appeals issued a Temporary Restraining Order enjoining the CIAC from implementing the appealed Decision. After the Court of Appeals heard the oral arguments of the parties, it issued a Resolution dated 8 June 2006 requiring the CIAC to elevate the entire case records. In a Resolution dated 28 June 2006, the Cou