G.R. NO. 163359 - THE INDUSTRIAL TECHNOLOGY DEVELOPMENT INSTITUTE REP. BY DR. RUFINO C. LIRAG, JR., VS. RUFINO M. VILLANUEVA, DOING BUSINESS UNDER THE NAME AND STYLE OF R.M. VILLANUEVA CONSTRUCTION.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, on January 12, 1993, ITDI served written notice on RMVC: (1) denying its request for extension of contract time; (2) terminating the contract; and (3) giving it three (3) days from notice to vacate the project site. [5] On January 14, 1993, the DOST Infrastructure Committee made a final evaluation of RMVC's work and found that as of January 10, 1993, the latter had accomplished only 46.7139% of the project on the basis of the Project Evaluation Review Technique/Critical Path Method (PERT/CPM). Pursuant to Section CI-1(8-4) of PD 1594, the DOST Infrastructure Committee required RMVC to pay ITDI the amount of P1,570,390.50 as liquidated damages. [6] A Summary of RMVC's Accountability was presented by ITDI showing that RMVC owed ITDI the amount of P2,642,082.88 after considering its collectibles, accomplishment, materials delivered at site, damages, and ITDI's progress and advance payments. [7] On March 25, 1993, RMVC filed a complaint for sum of money and damages with the Regional Trial Court of Malabon City, Branch 73. After due proceedings, the trial court rendered judgment in favor of RMVC, ordering ITDI to pay RMVC the amount of P600,000.00 representing the total uncollected amount due it as of January 1993; P1,383,011.20 representing the cost of construction materials belonging to RMVC and appropriated by ITDI; moral damages in the amount of P500,000.00; attorney's fees of P50,000.00 plus P1,000.00 per court appearance; and costs of suit. [8] Both parties appealed to the Court of Appeals. On January 19, 2004, the appellate court rendered the assailed Decision [9] affirming the decision of the trial court with modification, thus: IN VIEW OF THE FOREGOING, the appealed decision is AFFIRMED, with the following modifications: 1) The actual damages is reduced to P263,366.86; 2) The awarded cost of construction materials is reduced to P713,992.00; while 3) The award of moral damages and attorney's fees are deleted. No Cost. SO ORDERED.