Topic: Unjust Enrichment R.V. SANTOS COMPANY, INC., petitioner, vs. BELLE CORPORATION, respondent. G.R. Nos.

159561-62 - October 3, 2012 eon!r"o #e $!stro Nat re: %etition &or re'ie( on certior!ri o& the "ecision !n" reso)ution o& the $ourt o& *++e!)s. R !in": 1. ,t is !+ro+os to st!te here th!t the r!tion!)e un"er)-in. the o(ner/s ri.ht to see0 !n e'!)u!tion o& the contr!ctor/s (or0 is the ri.ht to +!- on)- the true '!)ue o& the (or0 !s m!- be re!son!b)- "etermine" un"er the circumst!nces. 1his is consistent (ith the )!( !.!inst unjust enrichment un"er *rtic)e 22 o& the $i'i) $o"e (hich st!tes th!t 23e4'er- +erson (ho throu.h !n !ct o& +er&orm!nce b!nother, or !n- other me!ns, !c5uires or comes into +ossession o& somethin. !t the e6+ense o& the )!tter (ithout just or )e.!) .roun", sh!)) return the s!me to him.7 E6+oun"in. on this +ro'ision in ! recent c!se, (e h!'e he)" th!t 23t4he +rinci+)e o& unjust enrichment essenti!))- contem+)!tes +!-ment (hen there is no "ut- to +!-, !n" the +erson (ho recei'es the +!-ment h!s no ri.ht to recei'e it.7 8or "is+osition o& the $ourt is ! %etition &or Re'ie( on $ertior!ri, !ss!i)in. the $ourt o& *++e!)s/ #ecision1 "!te" 9!rch :, 2003 !n" Reso)ution2 "!te" *u.ust 20, 2003 in the conso)i"!te" c!ses "oc0ete" !s $*-G.R. ;% Nos. 6021: !n" 6022<. ,n its #ecision "!te" 9!rch :, 2003, the $ourt o& *++e!)s !&&irme" the =u)- 2>, 2000 #ecision3 in $,*$ $!se No. <5-99 o& the $onstruction ,n"ustr- *rbitr!tion $ommission ?$,*$@, (hich, !mon. others, ?!@ or"ere" RA ;!ntos $om+!n-, ,nc. ?RA;$,@ to re&un" the !mount o& %<,9<0,10>.5> to Be))e $or+or!tion ?Be))e@, !n" ?b@ "enie" Be))e/s c)!im &or )i5ui"!te" "!m!.es !n" RA;$,/s counterc)!ims &or un+!i" bi))in.s !n" !ttorne-/s &ees. ,n the !ss!i)e" *u.ust 20, 2003 Reso)ution, the $ourt o& *++e!)s "enie" the +!rties/ res+ecti'e motions &or reconsi"er!tion o& its 9!rch :, 2003 #ecision. 1he +resent contro'ers- !rose &rom ! Re5uest &or *"ju"ic!tion< &i)e" b- Be))e (ith the $,*$ on No'ember 3, 1999. *ccor"in. to the $om+)!int5 !tt!che" to s!i" Re5uest, Be))e !n" RA;$, entere" into ! $onstruction $ontr!ct on =u)- 1<, 199:. *s sti+u)!te" therein, RA;$, un"ertoo0 to construct ! "et!i)e" un"er.roun" e)ectric!) net(or0 &or Be))e/s 1!.!-t!- Coo")!n"s $on"ominium %roject )oc!te" in 1!.!-t!$it-6 (ith ! +roject cost th!t sh!)) not be more th!n 1(ent--1(o 9i))ion %esos ?%22,000,000.00@, inc)usi'e o& !)) t!6es, .o'ernment &ees !n" the ser'ice &ee un"er the $ontr!ct.: i0e(ise un"er s!i" contr!ct, Be))e !"'!nce" to RA;$, &i&t- +ercent ?50D@ o& the contr!ct +rice in the !mount o& E)e'en 9i))ion %esos ?%11,000,000.00@> &or (hich RA;$, issue" to Be))e !n o&&ici!) recei+t9 "!te" *u.ust >, 199:. ;ome time there!&ter, RA;$, commence" (or0 on the +roject. Un"er *rtic)e A,,?*@ o& the $onstruction $ontr!ct, the EEEEEEEEEEEEEEE

2 ,"., !t +. 636. 3 ,"., !t ++. 63>-651. < $,*$ Recor"s, Ao). 2, +. 1. 5 ,"., !t ++. 2-11<. 6 ,"., !t +. 12F $onstruction $ontr!ct, +!r. 1. : ,"., !t +. 1:F *rtic)e ,A, ;ec. <.2. > ,"., !t +. 21F *rtic)e A,, ;ec. 6.2?!@. 9 ,"., !t +. 33. 222

222 ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion +roject (!s su++ose" to be com+)ete" !n" re!"- &or o+er!tion (ithin 1>0 c!)en"!r "!-s &rom recei+t b- RA;$, o& the notice to commence &rom Be))e, +ro'i"e" th!t !)) ci'i) re)!te" (or0s necess!r- &or the e6ecution o& the +roject (or0s (ere in +)!ce. Go(e'er, the +roject (!s !))e.e")- not com+)ete" (ithin the sti+u)!te" time &r!me. On 9!rch 1:, 199>, Be))e/s Coo")!n"s Gener!) $ommittee su++ose")- set *+ri) 21, 199> !s the t!r.et "!te &or com+)etion o& the o. Gome Units in Coo")!n"s. ,n ! 9emor!n"um10 "!te" *+ri) 1<, 199>, Be))e +ur+orte")- in&orme" RA;$, o& the t!r.et "!te !n" ur.e" the )!tter to com+)ete the +roject on or be&ore s!i" "e!")ine. ;ti)) the +roject (!s not com+)ete" on *+ri) 21, 199>. ;ubse5uent)-, in =une 199>, Be))e +)!ce" !""ition!) (or0 or"ers (ith RA;$,, (ho in turn m!"e the &o))o(in. cost estim!tes &or the !""ition!) (or0H *""ition!) Or"er No. 1 ,nst!))!tion o& : units o& o!" bre!0 s(itch, 102 units o& 0(-hrs. meters !n" &!bric!tion o& 21 sets o& Bus "ucts *""ition!) Or"er No. 2 5<1,52>.5< %3,>5<,<00.00

;u++)- !n" inst!))!tion o& one ?1@ unit 9#%-#1,* *""ition!) Or"er No. 3 A!rious (or0 or"ers issue" to 3RA;$,4 %<,55<,5<0.5<11 Be))e !"mitte")- !++ro'e" RA;$,/s cost estim!tes &or *""ition!) Or"er Nos. 1 !n" 2 but the &ormer !))e.e")- "i" not !++ro'e the cost estim!te &or *""ition!) Or"er No. 3 (hich Be))e estim!te" shou)" on)- cost %22,<<2.<:. Nonethe)ess, EEEEEEEEEEEEEEE 10 ,"., !t +. 3<. 11 ,"., !t +. <. 223 15>,612.00

AO . 6>2, O$1OBER 3, 2012 223 R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion RA;$, +rocee"e" to im+)ement *""ition!) Or"er Nos. 1 !n" 3 (hi)e Be))e itse)& !ccom+)ishe" *""ition!) Or"er No. 2. On *u.ust 10, 199>, RA;$, submitte" its %ro.ress Bi))in.12 to Be))e, c)!imin. 53.3D !ccom+)ishment o& the +roject, inc)u"in. the (or0 "one &or *""ition!) Or"er No. 1, !s set &orth !bo'e. RA;$, c)!ime" th!t the '!)ue o& the (or0 !ccom+)ishe" un"er the *u.ust 10, 199> %ro.ress Bi))in. (!s %:,159,216.63 on the m!in +roject !n" %1,:6>,000.00 on the !""ition!) (or0 or"er. *&ter "e"uctin. 50D o& the %ro.ress Bi))in. on the m!in +roject, the tot!) !mount bi))e" b- RA;$, (!s %5,3<:,60>.03. %ur+orte")- re)-in. on RA;$,/s re+resent!tions, Be))e/s +roject en.ineer recommen"e" !++ro'!) o& the %ro.ress Bi))in.. ;ubse5uent)-, ho(e'er, Be))e re+ute")- m!"e its o(n !ssessment o& the (or0 !ccom+)ishe" b- RA;$, !n" "etermine" th!t it (!s on)- (orth %<,6:6,:2<.6<. Be))e su++ose")- re)!-e" its &in"in.s to RA;$,.13 On ;e+tember 30, 199>, (hi)e ne.oti!tions (ere !))e.e")- on-.oin. bet(een the +!rties re.!r"in. the +!-ment o& the %ro.ress Bi))in., Be))e c)!ime" th!t RA;$, unceremonious)- !b!n"one" the +roject (ithout +rior notice !n" &orce" Be))e to

t!0e o'er the construction (or0 therein. Be))e +ur+orte")- sent ! 9emor!n"um1< "!te" #ecember 15, 199> to RA;$, to con'e- its 2e6treme "is!++ointment7 o'er the )!tter/s !b!n"onment o& the +roject. On =!nu!r- 11, 1999, the +!rties/ re+resent!ti'es met !n" "urin. th!t meetin. RA;$, !))e.e")- !"'ise" Be))e th!t it (i)) not return to the site unti) the outst!n"in. b!)!nce "ue to it is +!i".15 EEEEEEEEEEEEEEE 12 ,"., !t +. 35. 13 ,"., !t +. 5. 1< ,"., !t +. 36. 15 ,"., !t +. 6. 22<

22< ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion 9e!n(hi)e, on =!nu!r- 22, 1999, Be))e m!"e !n !""ition!) +!-ment &or e)ectric!) (or0s to RA;$, in the !mount o& %<:6,503.30. 1his +!-ment (!s e'i"ence" b- !n o&&ici!) recei+t16 issue" b- RA;$,. Be))e )i0e(ise remitte" the !mount o& %122,<91.1< to the Bure!u o& ,ntern!) Re'enue re+resentin. the (ithho)"in. t!6 "ue &rom RA;$,. ,n 8ebru!r- 1999, Be))e en.!.e" the ser'ices o& !n !ssessor, R.*. 9ojic! !n" %!rtners ?R.*. 9ojic!@, to "etermine the '!)ue o& the (or0 "one b- RA;$,. *&ter it con"ucte" !n e)ectric!) (or0s !u"it, R.*. 9ojic! re+orte" to Be))e th!t the (or0 !ccom+)ishe" b- RA;$, on the m!in +roject on)- !mounte" to %<,>6>,<<3.59 !n" not %:,159,216.05 !s bi))e" b- RA;$,.1: ,n Be))e/s 'ie(, it h!" o'er+!i" RA;$,, b!se" on the &o))o(in. com+ut!tionH #o(n+!-ment Cithho)"in. 1!6 %!-!b)e *""ition!) %!-ment &or e)ectric!) (or0s ?Bi))in. I01@ <:6,503.33 %11,000,000.00 122,<91.1<

%11,59>,99<.<< E;;H *ctu!) A!)ue o& Cor0 *ccom+)ishe" *++ro'e" $h!n.e o& ;+eci&ic!tions !n" *""ition!) Cor0 Or"ers NE1 #UE 1O 3BE E4 1,:90,<<2.:0 % <,9<0,10>.151> <,>6>,<<3.59

RA;$, !))e.e")- re&use" to return the e6cess +!-ment "es+ite re+e!te" "em!n"s. 1hus, re)-in. on the !rbitr!tion c)!use in the $onstruction $ontr!ct, Be))e brou.ht the m!tter be&ore the $,*$ !n" +r!-e" th!t RA;$, be "irecte" to ?!@ reimburse Be))e the !mount o& %<,9<0,10>.15, !n" ?b@ +!- Be))e the !mount o& %2,200,000.00 !s )i5ui"!te" "!m!.es.19 EEEEEEEEEEEEEEE 16 ,"., !t +. 3>. 1: ,"., !t +. :. 1> ,"., !t +. >. 19 ,"., !t ++. 10-11. 225

AO . 6>2, O$1OBER 3, 2012 225 R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion B- (!- o& "e&ense, RA;$, c)!ime" th!t its *u.ust 10, 199> %ro.ress Bi))in. (!s ! resu)t o& ! 2bi)!ter!) !ssessment7 b- the re+resent!ti'es o& both +!rties !n" (!s, in &!ct, !++ro'e"Jrecommen"e" &or +!-ment b- Be))e/s re+resent!ti'es. RA;$, com+)!ine" th!t Be))e se.re.!te" the +roject into t(o +h!ses ?%h!se 1 !n" %h!se 2@ (ith %h!se 1 com+risin. the !re! !)re!"- (or0e" on b- RA;$, !n" %h!se 2 com+risin. the 2un(or0e"7 !re!. ,t (!s Be))e (hich !"'ise" RA;$, in ! meetin. on =!nu!r- 11, 1999 th!t the &ormer (!s sus+en"in. %h!se 2 o& the +roject "ue to economic "i&&icu)ties. RA;$, !))e.e")- m!"e se'er!) "em!n"s &or +!-ment o& its %ro.ress Bi))in. but Be))e i.nore" s!i" "em!n"s. 1hus, in 'ie( o& Be))e/s sus+ension o& the (or0 !n" the non+!-ment o& the +ro.ress bi))in., RA;$, (!s +ur+orte")&orce" to sto+ (or0 on the +roject, "es+ite bein. &u))- +re+!re" to com+)- (ith its

ob)i.!tions un"er the contr!ct. RA;$, &urther !sserte" th!t it (!s not noti&ie" o&, nor m!"e +ri'- to, the !u"it (or0 con"ucte" b- R.*. 9ojic! !n" there&ore RA;$, (!s not boun" b- such !u"it. ,nsistin. on the !ccur!c- o& its %ro.ress Bi))in., RA;$, inter+ose" ! counterc)!im !.!inst Be))e &or the +!-ment o& the !mount o& %<,312,1:0.95, com+ute" thusH %ro.ress Bi))in. Rem!inin. 9#%s &or "e)i'erUn"er ori.in!) contr!ct ?11 sets L %32:,12>.5<@ *++ro'e" $h!n.e o& ;+eci&ic!tions !n" *""ition!) Cor0 Or"erJs ?"!te" *u.ust 10, 199> !n" ;e+tember 30, 199>@ 1ot!) essH *"'!nce %!-ment Net #ue to 3RA;$,4 EEEEEEEEEEEEEEE 20 ,"., !t ++. 122-123. 226 % K<,55<,5<0.95 % 15,312,1:0.95 % 11,000,000.00 %K <,312,1:0.9520 % K3,59>,<13.9< % K:,159,216.05

226 ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion RA;$, +r!-e" &or the "ismiss!) o& the $om+)!int !n" &or the $,*$ to or"er Be))e to +!- the &o))o(in. !mountsH ?!@ %<,312,1:0.95 !s b!)!nce o& RA;$,/s +ro.ress bi))in.?s@, ?b@ %500,000.00 !s mor!) "!m!.es, !n" ?c@ %500,000.00 !s !ttorne-/s &ees !n" costs o& suit.21 *t the +re)imin!r- con&erence, the +!rties !.ree" on the 1erms o& Re&erence &or the !rbitr!tion o& their res+ecti'e c)!ims. *ccor"in. to the 1erms o& Re&erence, the

!"mitte" &!cts !n" the issues to be reso)'e" b- the !rbitr!tion +!ne) (ere !s &o))o(sH ,,.M*#9,11E# 8*$1; 1he +!rties !"mit the &o))o(in.H 1.M1heir res+ecti'e i"entit-Jjuri"ic!) e6istence !n" circumst!nces. 2.M1he .enuineness !n" "ue e6ecution o& the $ontr!ct ?!tt!che" !s *nne6 * o& the $om+)!int@ &or the construction o& ! "et!i)e" un"er.roun" e)ectric!) net(or0 &or the 1!.!-t!- Coo")!n"s $on"ominium %roject in 1!.!-t!- $it- entere" into b- the +!rties on 1< =u)- 199: &or ! contr!ct +rice o& %22,000,000.00. 3.M*rtic)e ,A, ;ection <.2 o& the $onstruction $ontr!ct (hich +ro'i"e ?sic@ th!t the 2$ontr!ctor 3RA;$,4 .u!r!ntees !n" (!rr!nts th!t the tot!) +roject cost sh!)) not be more th!n %22,000,000.00, inc)usi'e o& !)) t!6es !n" .o'ernment &ees !n" the ser'ice &ee un"er the $ontr!ct.7 <.M;ec. 6.2?!@, *rt. A, o& the $onstruction $ontr!ct (hich +ro'i"es th!tH 2O(ner 3Be))e4 sh!)) !"'!nce to $ontr!ctor !n !mount e5ui'!)ent to 50D o& the $ontr!ct %rice or the !mount o& %11,000,000.00, !s "o(n +!-ment &or the construction, u+on e6ecution o& the $ontr!ct, recei+t o& (hich is hereb- !c0no()e".e" b- $ontr!ctor. %ro.ress +!-ments to be m!"e b- O(ner to $ontr!ctor, +ro+ortion!te to the +ercent!.e o& !ccom+)ishment o& the %roEEEEEEEEEEEEEEE 21 ,"., !t +. 123. 22:

AO . 6>2, O$1OBER 3, 2012 22: R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion ject, sh!)) be "e"ucte" &rom the b!)!nce o& the $ontr!ct %rice. 1he s!me +ro+ortion o& the "o(n +!-ment sh!)) !)so be "e"ucte" &rom bi))in. +ro.ress +!-ments.7 5.M1he +!-ment m!"e b- $)!im!nt to Res+on"ent in the !mount o& %11,000,000.00 !s !c0no()e".e" to h!'e been recei'e" un"er O&&ici!) Recei+t No. 0:06 issue" b- the )!tter on > *u.ust 199: ?!tt!che" !s *nne6 B o& the $om+)!int@. 6.M1he &o))o(in. +ro+ose" cost estim!te o& the Res+on"ent on $)!im!nt/s !""ition!) (or0 or"ers in =une 199>H

*""ition!) Or"er No. 1 ,nst!))!tion o& : units o& o!" bre!0 s(itch, 102 units o& 0(-hrs. meters !n" &!bric!tion o& 21 sets o& Bus "ucts. %3,>5<,<00.00 *""ition!) Or"er No. 2 5<1,52>.5< *""ition!) Or"er No. 3 EEEEEEEEEEEEE %<,55<,5<0.5< :.M$)!im!nt !++ro'e" Res+on"ent/s +ro+ose" estim!tes on *""ition!) Or"ers Nos. 1 !n" 2, but "is+ute" the cost estim!te o& *""ition!) Or"er No. 3. 1here!&ter, Res+on"ent +rocee"e" to im+)ement !""ition!) Or"ers Nos. 1 !n" 3. >.M%ro.ress Bi))in. No. 1 ?!tt!che" !s *nne6 # o& the $om+)!int@ (hich $)!im!nt recei'e" on 10 *u.ust 199>. 9.MOn 11 =!nu!r- 1999, the +!rties/ re+resent!ti'es met to "iscuss the re!sons &or Res+on"ent/s &!i)ureJre&us!) to return to the ;ite. 1hese re+resent!ti'es (ere 8ern!n"o R. ;!ntico, E".!r"o 8. Ai))!rino N Ru"- %. *nini+ot, &or the $)!im!nt, !n" Ren!to A. ;!ntos N =oe- $. $!)"eo, &or the Res+on"ent. 10.M$)!im!nt m!"e !""ition!) +!-ment to Res+on"ent &or e)ectric!) (or0s on 22 =!nu!r- 1999 !mountin. to 22> ;u++)- !n" inst!))!tion o& one ?1@ unit 9#%-#1,* A!rious (or0 or"ers issue" to 3RA;$,4 15>,612.00

22> ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion %<:6,503.30 !s +er O&&ici!) Recei+t No. 0:1: issue" b- Res+on"ent ?!tt!che" !s *nne6 G o& the $om+)!int@. 11.ME6istence o& Res+on"ent/s )etter to $)!im!nt "!te" < 9!- 1999 reH Un"er.roun" E)ectric!) Uti)ities ?!tt!che" !s *nne6 * o& the Re+)-@. 6666 ,A.M,;;UE; 1O BE #E1ER9,NE# 1.M,s $)!im!nt entit)e" to its c)!ims &or o'er+!-mentO ,& so, ho( much shou)" be returne" to the $)!im!ntO

1.1MGo( much (!s the (or0 !ccom+)ishe" b- Res+on"ent in the +rojectO 1.2MChether or not Res+on"ent h!s m!nu&!cture"J+ro"uce" !n"Jor inst!))e" 11 sets o& 9!in #istribution %!ne)sO ,& so, is $)!im!nt )i!b)e !n" &or ho( much shou)" it be )i!b)e to +!- Res+on"ent &or their costJ'!)ueO 1.3MChether or not Res+on"ent is entit)e" to its c)!im &or un+!i" bi))in.sO 2.M,s $)!im!nt entit)e" to its c)!im &or )i5ui"!te" "!m!.esO ,& so, ho( much b- (!o& )i5ui"!te" "!m!.es shou)" be !(!r"e" to itO 2.1MC!s Res+on"ent justi&ie" in sus+en"in. its (or0O 2.2M,s Res+on"ent justi&ie" in "ec)inin. to return to (or0O 3.M,s Res+on"ent entit)e" to its counterc)!im &or !ttorne-/s &eesO ,& so, ho( much is $)!im!nt )i!b)e to Res+on"ent &or such c)!imO22 1he 1erms o& Re&erence &urther in"ic!te" the +!rties/ !.reement th!t the +resent!tion o& their testimoni!) e'i"ence sh!)) be b- (!- o& !&&i"!'its o& (itnesses. Ge!rin.s (ere he)" EEEEEEEEEEEEEEE 22 $,*$ Recor"s, Ao). <, ++. 1:-1>. 229

AO . 6>2, O$1OBER 3, 2012 229 R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion on 9!rch 2< !n" 2>, 2000. 1here!&ter, the +!rties submitte" their "r!&t #ecisions to the !rbitr!) tribun!). ,n ! #ecision "!te" =u)- 2>, 2000, the $,*$ &oun" th!t, un"er the $onstruction $ontr!ct23 !n" in"ustr- +r!ctice, Be))e h!" the ri.ht to the true '!)ue o& the (or0 +er&orme" b- RA;$, u+on termin!tion. 8urther, the $,*$ ru)e" th!t !ccor"in. to the Uni&orm Gener!) $on"itions o& $ontr!ct &or %ri'!te $onstruction ?$,*% #ocument 102@, !++ro'!) o& ! +ro.ress bi))in. is +ro'ision!)2< !n" is subject to &in!) re'ie( !n" !++ro'!) be&ore !cce+t!nce o& the com+)ete" (or0 !n" +rior to &in!) +!-ment.25 Gence, Be))e (!s (ithin its ri.hts to m!0e ! re-e'!)u!tion o& the (or0 !ccom+)ishment o& RA;$,. 8in"in. th!t En.r. R!)!"in *. 9ojic! 5u!)i&ie" !s !n e6+ert (itness, the $,*$ .!'e (ei.ht to the resu)ts o& the re-sur'e- "one b- R.*. 9ojic! !n" he)" th!t Be))e in"ee" m!"e !n o'er+!-ment to RA;$,. ;ince the "!te

(hen RA;$, commence" (or0 on the %roject !n" the su++ose" com+)etion "!te c!nnot be "etermine", the $,*$ &oun" no b!sis to !(!r" )i5ui"!te" "!m!.es in &!'or o& Be))e. 1he !rbitr!) tribun!) )i0e(ise "enie" RA;$,/s counterc)!ims. 1hus, the "is+ositi'e +ortion o& the $,*$ #ecision re!"sH EEEEEEEEEEEEEEE 23 1he $,*$ cite" *rtic)e P,,,, ;ection 13.< o& the $ontr!ct (hich +ro'i"esH 13.<MA!)u!tion o& the Cor0 %er&orme" U+on termin!tion o& the $ontr!ct b- OCNER un"er *rtic)e 13.1 !bo'e, OCNER in .oo" &!ith sh!)) "etermine the true '!)ue to OCNER, i& !n-, o& (or0s !ctu!))com+)ete" b- $ON1R*$1OR in !ccor"!nce (ith the s+eci&ic!tions o& the $ontr!ct, !n" $ON1R*$1OR sh!)) +!- to OCNER, or OCNER sh!)) +!- to $ON1R*$1OR, !s the c!se m!- be the "i&&erence bet(een the '!)ue so "etermine" !n" the !..re.!te !mount +!i" to $ON1R*$1OR !s !t the time o& termin!tion, in either c!se (ithin thirt- ?30@ business "!-s &rom "!te o& such "etermin!tion. ?$,*$ Recor"s, Ao). 2, +. 30.@ 2< $,*% #ocument No. 102, citin. *rtic)es 22.02 !n" 22.0<. 25 ,"., citin. *rtic)e 22.09. 230

230 ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion CGERE8ORE, !(!r" is hereb- m!"e !s &o))o(sH 1.M$)!im!nt/s 3Be))e/s4 c)!im &or re&un" o& %<,9<0,10>.5>, re+resentin. o'er+!-ment to the Res+on"ent is hereb- .r!nte". Res+on"ent is, there&ore, or"ere" to +!- this !mount to $)!im!nt (ith interest !t the r!te o& 6D +er !nnum &rom the "!te o& this *(!r". 2.M$)!im!nt/s c)!im &or )i5ui"!te" "!m!.es !n" Res+on"ent/s counterc)!ims &or !n !))e.e" b!)!nce "ue !n" un+!i" on +ro.ress bi))in.s !n" &or !ttorne-/s &ees !re "enie". 3.M*rbitr!tion &ees !n" e6+enses sh!)) be sh!re" b- the +!rties +ro r!t! on the b!sis o& the !mount o& their c)!ims !n" counterc)!ims.

<.M1he !mount o& %<,9<0,10>.5> &oun" in +!r!.r!+h 1 o& this *(!r" to be "ue the $)!im!nt +)us interest !t 6D +er !nnum sh!)) &urther e!rn interest !t the r!te o& 12D +er !nnum &rom the time this "ecision becomes &in!) !n" e6ecutor- !n" the tot!) !mount &oun" to be "ue rem!ins un+!i".26 Both Be))e !n" RA;$, &i)e" +etitions &or re'ie( un"er Ru)e <3 o& the Ru)es o& $ourt to !ss!i) the &ore.oin. $,*$ #ecision (ith the $ourt o& *++e!)s, (hich (ere "oc0ete" !s $*-G.R. ;% No. 6021: !n" $*-G.R. ;% No. 6022<, res+ecti'e)-. U+on motion bthe +!rties, the c!ses (ere conso)i"!te" !n" !&ter "ue +rocee"in.s, the $ourt o& *++e!)s issue" ! #ecision "!te" 9!rch :, 2003, "ismissin. the +etitions !n" !&&irmin. the $,*$ #ecision. 1he se+!r!te motions &or reconsi"er!tion o& the +!rties (ere )i0e(ise "enie" b- the $ourt o& *++e!)s in ! Reso)ution "!te" *u.ust 20, 2003. RA;$, e)e'!te" the m!tter to this $ourt !n" 5uestione" the $ourt o& *++e!)s/ 9!rch :, 2003 #ecision !n" *u.ust 20, 2003 Reso)ution throu.h the +resent +etition &or re'ie( on certior!ri un"er Ru)e <5. 1he .roun"s re)ie" u+on b- RA;$, (ereH ,.M1GE *%%E *1E $OUR1 GR*AE Q ERRE# ,N RU ,NG 1G*1 1GE ;URAEQOR/; E E$1R,$* CORR EEEEEEEEEEEEEEE 26 Ro))o, Ao). ,,, +. 650. 231

AO . 6>2, O$1OBER 3, 2012 231 R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion *U#,1 C*; $O9%E1EN1 *N# 9U;1 BE G,AEN CE,GG1. ,,.M1GE *%%E *1E $OUR1 GR*AE Q ERRE# ,N RU ,NG 1G*1 BE E 9*Q C,1G#R*C ,1; *%%ROA* O8 1GE %ROGRE;; B, ,NG %UR;U*N1 1O *R1,$ E; A,?2@?$@ *N# P,,,?<@ O8 1GE $ON1R*$1. ,,,.M1GE *%%E *1E $OUR1 GR*AE Q ERRE# ,N RU ,NG 1G*1 3RA;$,4 ,; NO1 EN1,1 E# 1O *N *C*R# 8OR #*9*GE;.2: *nent the &irst .roun", RA;$, !r.ue" th!t R.*. 9ojic!/s e)ectric!) (or0 !u"it th!t (!s uni)!ter!))- commissione" b- Be))e (!s not bin"in. on the &ormer since ?!@ it (!s not !uthoriSe" b- the $ontr!ct !n" (!s "one (ithout the consent or +!rtici+!tion o& RA;$,F ?b@ !ssumin. th!t the $ontr!ct !))o(e" Be))e to commission such !u"it, it (!s incom+)ete !s it &!i)e" to co'er the entire (or0 +er&orme" b-

RA;$, !s sho(n b- its %ro.ress Bi))in. !n" Bi)) o& Tu!ntities, !))e.e")- !++ro'e" bBe))eF !n" ?c@ the !u"it (!s t!inte" b- ob'ious +!rti!)it- since R.*. 9ojic! (!s ! re.u)!r contr!ctor o& Be))e !n" ! com+etitor o& RA;$,. Cith res+ect to the secon" .roun", it is RA;$,/s contention th!t *rtic)e A,, ;ection 6.2?c@ o& the $onstruction $ontr!ct mere)- "i&&erenti!te !cce+t!nce b- Be))e o& RA;$,/s (or0 !ccom+)ishment &rom time to time &rom Be))e/s &in!) !cce+t!nce o& (or0 u+on com+)etion o& the entire +roject. *)so RA;$, c)!ims th!t *rtic)e P,,,, ;ection 13.< on)- !))o(s Be))e to "etermine the true '!)ue o& the (or0s in c!ses o& termin!tion o& the $ontr!ct u+on occurrence o& !n- o& the e'ents o& "e&!u)t enumer!te" un"er *rtic)e P,,,, ;ection 13.1 !n" s!i" +ro'ision h!s no !++)ic!tion in inst!nces o& justi&ie" sus+ension o& (or0s "ue to Be))e/s bre!ch o& the $ontr!ct. ,n !n- e'ent, it is RA;$,/s 'ie( th!t neither *rtic)e A,, ;ection 6.2?c@ nor *rtic)e P,,,, ;ection 13.< !))o(s Be))e to (ith"r!( EEEEEEEEEEEEEEE 2: Ro))o, Ao). ,, +. 2< !n" Ao). ,,, +. 1<<1. 232

232 ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion its +re'ious !++ro'!) o& RA;$,/s %ro.ress Bi))in., contr!r- to the ru)in.s o& both the $,*$ !n" the $ourt o& *++e!)s. *ssumin. (ithout conce"in. th!t *rtic)e P,,,, ;ection 13.< o& the $ontr!ct !++)ies in this inst!nce, RA;$, be)ie'es th!t the &in!) "etermin!tion o& the '!)ue o& the (or0s shou)" be m!"e b- ?!@ both +!rties or ?b@ !n in"e+en"ent thir" +!rt- mutu!))- commissione" b- them. *s &or the )!st .roun", RA;$, !sserts th!t the $,*$ !n" the $ourt o& *++e!)s erre" in "en-in. RA;$,/s c)!im &or "!m!.es in 'ie( o& Be))e/s bre!ch o& the $ontr!ct b- its unjusti&ie" re&us!) or &!i)ure to +!- the %ro.ress Bi))in.. On the other h!n", Be))e c)!ims th!t the %etition shou)" be "ismisse" &or r!isin. 5uestions o& &!ct, (hich !re im+ro+er in ! +etition un"er Ru)e <5 o& the Ru)es o& $ourt, (ithout sho(in. th!t this c!se &e)) un"er the reco.niSe" e6ce+tions un"er juris+ru"ence. On the merits o& the %etition, Be))e !r.ue" th!t it h!" the ri.ht to "etermine the true '!)ue o& (or0 "one !n" nothin. in the $ontr!ct )imite" th!t ri.ht. *ccor"in. to Be))e, the $,*$ !n" the $ourt o& *++e!)s +ro+er)- re)ie" on *rtic)e A,, ;ection 6.2?c@ !n" *rtic)e P,,,, 13.< o& the $ontr!ct !n" on in"ustr+r!ctice in u+ho)"in. Be))e/s ri.ht &or ! re-e'!)u!tion o& RA;$,/s !ctu!) (or0

!ccom+)ishment. 1hus, the $,*$ !n" the !++e))!te court !))e.e")- (ere correct in .i'in. (ei.ht to the e)ectric!) !u"it re+ort m!"e b- R.*. 9ojic!. Be))e &urther +ro+oun"s th!t the )o(er tribun!)s correct)- "i" not .r!nt RA;$, !n- !(!r" &or "!m!.es consi"erin. th!t RA;$, "i" not +ro'e such "!m!.es !s it h!", in &!ct, been o'er+!i". *s &or RA;$,/s c)!im &or the '!)ue o& m!teri!)s !n" e5ui+ment +ur+orte"))e&t !t the site, the s!me (!s not inc)u"e" in the 1erms o& Re&erence !n" RA;$, (!s not !))o(e" b- the $,*$ to +resent e'i"ence on the s!me. 1hus, this m!tter c!nnot be r!ise" &or the &irst time on !++e!). *&ter ! thorou.h re'ie( o& the issues r!ise" b- the +!rties, the $ourt &in"s no merit in the %etition. 233

AO . 6>2, O$1OBER 3, 2012 233 R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion On the +roce"ur!) issueH ,t must be stresse" th!t in +etitions &or re'ie( un"er Ru)e <5 on)- 5uestions o& )!( m!- be r!ise", un)ess the +etitioner sho(s th!t the c!se &!))s un"er the reco.niSe" e6ce+tions. ,n 9!0!ti ;+orts $)ub, ,nc. '. $hen.,2> (e e6+)!ine", thusH *t the outset, (e note th!t this recourse is ! +etition &or re'ie( on certior!ri un"er Ru)e <5 o& the Ru)es o& $ourt. Un"er ;ection 1 o& the Ru)e, such ! +etition sh!)) r!ise on)- 5uestions o& )!( (hich must be "istinct)- !))e.e" in the !++ro+ri!te +)e!"in.. ,n ! c!se in'o)'in. ! 5uestion o& )!(, the reso)ution o& the issue must rest so)e)- on (h!t the )!( +ro'i"es &or ! .i'en set o& &!cts "r!(n &rom the e'i"ence +resente". ;t!te" "i&&erent)-, there shou)" be nothin. in "is+ute !s to the st!te o& &!ctsF the issue to be reso)'e" is mere)- the correctness o& the conc)usion "r!(n &rom the s!i" &!cts. Once it is c)e!r th!t the issue in'ites ! re'ie( o& the +rob!ti'e '!)ue o& the e'i"ence +resente", the 5uestion +ose" is one o& &!ct. ,& the 5uer- re5uires ! ree'!)u!tion o& the cre"ibi)it- o& (itnesses, or the e6istence or re)e'!nce o& surroun"in. circumst!nces !n" their re)!tion to e!ch other, then the issue is necess!ri)- &!ctu!).29 ?Em+h!ses su++)ie", cit!tion omitte".@ ,n c!ses "eci"e" b- the $,*$, the !bo'e ru)e &in"s e'en more strin.ent !++)ic!tion. *s (e +re'ious)- obser'e" in one c!seH E6ecuti'e Or"er No. 100>, !s !men"e", +ro'i"es, in its ;ection 19, !s &o))o(sH

2;ec.K19.M8in!)it- o& *(!r"s.U1he !rbitr!) !(!r" sh!)) be bin"in. u+on the +!rties. ,t sh!)) be &in!) !n" in!++e!)!b)e e6ce+t on 5uestions o& )!( (hich sh!)) be !++e!)!b)e to the ;u+reme $ourt.7 ;ection 19 m!0es it cr-st!) c)e!r th!t 5uestions o& &!ct c!nnot be r!ise" in +rocee"in.s be&ore the ;u+reme $ourtU(hich is not ! trier EEEEEEEEEEEEEEE 2> G.R. No. 1:>523, =une 16, 2010, 621 ;$R* 103. 29 ,"., !t ++. 110-111. 23<

23< ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion o& &!ctsUin res+ect o& !n !rbitr!) !(!r" ren"ere" un"er the !e.is o& the $,*$. $onsi"er!tion o& the !nim!tin. +ur+ose o& 'o)unt!r- !rbitr!tion in .ener!), !n" !rbitr!tion un"er the !e.is o& the $,*$ in +!rticu)!r, re5uires us to !++)- ri.orous)the !bo'e +rinci+)e embo"ie" in ;ection 19 th!t the *rbitr!) 1ribun!)/s &in"in.s o& &!ct sh!)) be &in!) !n" 3u4n!++e!)!b)e. 6666 *(!re o& the objecti'e o& 'o)unt!r- !rbitr!tion in the )!bor &ie)", in the construction in"ustr-, !n" in !n- other !re! &or th!t m!tter, the $ourt (i)) not !ssist one or the other or e'en both +!rties in !n- e&&ort to sub'ert or "e&e!t th!t objecti'e &or their +ri'!te +ur+oses. 1he $ourt (i)) not re'ie( the &!ctu!) &in"in.s o& !n !rbitr!) tribun!) u+on the !rt&u) !))e.!tion th!t such bo"- h!" 2mis!++rehen"e" the &!cts7 !n" (i)) not +!ss u+on issues (hich !re, !t bottom, issues o& &!ct, no m!tter ho( c)e'er)- "is.uise" the- mi.ht be !s 2)e.!) 5uestions.7 1he +!rties here h!" recourse to !rbitr!tion !n" chose the !rbitr!tors themse)'esF the- must h!'e h!" con&i"ence in such !rbitr!tors. 1he $ourt (i)) not, there&ore, +ermit the +!rties to re)iti.!te be&ore it the issues o& &!cts +re'ious)- +resente" !n" !r.ue" be&ore the *rbitr!) 1ribun!), s!'e on)- (here ! 'er- c)e!r sho(in. is m!"e th!t, in re!chin. its &!ctu!) conc)usions, the *rbitr!) 1ribun!) committe" !n error so e.re.ious !n" hurt&u) to one +!rt- !s to constitute ! .r!'e !buse o& "iscretion resu)tin. in )!c0 or )oss o& juris"iction. %rotot-+ic!) e6!m+)es (ou)" be &!ctu!) conc)usions o& the 1ribun!) (hich resu)te" in "e+ri'!tion o& one or the other +!rt- o& ! &!ir o++ortunit- to +resent its +osition be&ore the *rbitr!) 1ribun!), !n" !n !(!r" obt!ine" throu.h &r!u" or the corru+tion o& !rbitr!tors. *n- other, more re)!6e", ru)e (ou)" resu)t in

settin. !t n!u.ht the b!sic objecti'e o& ! 'o)unt!r- !rbitr!tion !n" (ou)" re"uce !rbitr!tion to ! )!r.e)- inuti)e institution.30 ?Em+h!sis su++)ie", cit!tions omitte".@ ,n !nother c!se, (e h!'e !)so he)" th!tH ,t is sett)e" th!t &in"in.s o& &!ct o& 5u!si-ju"ici!) bo"ies, (hich h!'e !c5uire" e6+ertise bec!use their juris"iction is con&ine" to EEEEEEEEEEEEEEE 30 Gi-%recision ;tee) $enter, ,nc. '. im Rim ;tee) Bui)"ers, ,nc., G.R. No. 110<3<, #ecember 13, 1993, 22> ;$R* 39:, <0<-<0:. 235

AO . 6>2, O$1OBER 3, 2012 235 R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion s+eci&ic m!tters, !re .ener!))- !ccor"e" not on)- res+ect, but !)so &in!)it-, es+eci!))- (hen !&&irme" b- the $ourt o& *++e!)s. ,n +!rticu)!r, &!ctu!) &in"in.s o& construction !rbitr!tors !re &in!) !n" conc)usi'e !n" not re'ie(!b)e b- this $ourt on !++e!). 1his ru)e, ho(e'er, !"mits o& cert!in e6ce+tions. ,n Uni(i"e ;!)es Re!)t- !n" Resources $or+or!tion '. 1it!n-,0e"! $onstruction !n" #e'e)o+ment $or+or!tion, (e s!i"H ,n #!'i" '. $onstruction ,n"ustr- !n" *rbitr!tion $ommission, (e ru)e" th!t, !s e6ce+tions, &!ctu!) &in"in.s o& construction !rbitr!tors m!- be re'ie(e" b- this $ourt (hen the +etitioner +ro'es !&&irm!ti'e)- th!tH ?1@ the !(!r" (!s +rocure" bcorru+tion, &r!u" or other un"ue me!nsF ?2@ there (!s e'i"ent +!rti!)it- or corru+tion o& the !rbitr!tors or !n- o& themF ?3@ the !rbitr!tors (ere .ui)t- o& miscon"uct in re&usin. to he!r e'i"ence +ertinent !n" m!teri!) to the contro'ers-F ?<@ one or more o& the !rbitr!tors (ere "is5u!)i&ie" to !ct !s such un"er ;ection nine o& Re+ub)ic *ct No. >:6 !n" (i))&u))- re&r!ine" &rom "isc)osin. such "is5u!)i&ic!tions or o& !n- other misbeh!'ior b- (hich the ri.hts o& !n- +!rt- h!'e been m!teri!))- +reju"ice"F or ?5@ the !rbitr!tors e6cee"e" their +o(ers, or so im+er&ect)- e6ecute" them, th!t ! mutu!), &in!) !n" "e&inite !(!r" u+on the subject m!tter submitte" to them (!s not m!"e. Other reco.niSe" e6ce+tions !re !s &o))o(sH ?1@ (hen there is ! 'er- c)e!r sho(in. o& .r!'e !buse o& "iscretion resu)tin. in )!c0 or )oss o& juris"iction !s (hen ! +!rt(!s "e+ri'e" o& ! &!ir o++ortunit- to +resent its +osition be&ore the *rbitr!) 1ribun!)

or (hen !n !(!r" is obt!ine" throu.h &r!u" or the corru+tion o& !rbitr!tors, ?2@ (hen the &in"in.s o& the $ourt o& *++e!)s !re contr!r- to those o& the $,*$, !n" ?3@ (hen ! +!rt- is "e+ri'e" o& !"ministr!ti'e "ue +rocess.31 ?$it!tions omitte".@ ,n the c!se !t b!r, +etitioner in"ee" r!ises &!ctu!) m!tters in the +resent contro'ers- (hich this $ourt m!- not )oo0 into un"er ! +etition &or re'ie( on certior!ri. Ce )i0e(ise &in" th!t EEEEEEEEEEEEEEE 31 ,BEP ,ntern!tion!), ,nc. '. Go'ernment ;er'ice ,nsur!nce ;-stem, G.R. No. 162095, October 12, 2009, 603 ;$R* 306, 31<-315. 236

236 ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion this c!se is not !mon. the e6ce+tions to this sett)e" ru)e. Ne'erthe)ess, e'en i& (e (ere to e6cuse this +roce"ur!) in&irmit- o& the +etition, (e !re sti)) not inc)ine" to re'erse the )o(er tribun!)s/ &in"in.s on the merits o& the c!se. On the subst!nti'e m!ttersH Chether the thir" +!rt- !u"it re+ort commissione" b- Be))e is !"missib)e !n" m!- be .i'en (ei.ht 1o rec!+itu)!te, +etitioner !ss!i)e" R.*. 9ojic!/s !u"it re+ort on the &o))o(in. .roun"sH ?!@ th!t there (!s no +ro'ision in the $onstruction $ontr!ct !))o(in. Be))e to uni)!ter!))- con"uct !n !u"it o& +etitioner/s (or0F ?b@ !ssumin. the $ontr!ct !))o(s such !n !u"it, it nonethe)ess &!i)e" to inc)u"e !)) the (or0 "one b- +etitionerF !n" ?c@ it (!s t!inte" b- bi!s !n" +!rti!)it- since R.*. 9ojic! (!s ! re.u)!r, )on. time contr!ctor o& Be))e. On this issue, (e u+ho)" the $,*$ !n" the $ourt o& *++e!)s in their !))o(!nce o& the thir" +!rt- !u"it re+ort "one b- R.*. 9ojic!. 8irst, (hi)e there (!s no +ro'ision in the $onstruction $ontr!ct e6+ress)!uthoriSin. Be))e to secure the ser'ices o& ! thir" +!rt- !u"itor to "etermine the '!)ue o& the (or0 !ccom+)ishe" b- +etitioner RA;$,, there is )i0e(ise no +ro'ision +rohibitin. the s!me. $ert!in)-, RA;$, &!i)e" to +oint to !n- contr!ctu!) sti+u)!tion

+re'entin. RA;$, to see0 e6+ert o+inion re.!r"in. the '!)ue o& RA;$,/s !ccom+)ishment or the !ccur!c- o& the %ro.ress Bi))in., (hether +rior or subse5uent to the !++ro'!) o& such bi))in.. ;econ", the mere &!ct th!t the !u"it (!s uni)!ter!), or (!s not +!rtici+!te" in b+etitioner, "i" not ren"er the s!me objection!b)e. 1here is nothin. in the $onstruction $ontr!ct (hich ob)i.!tes Be))e to in&orm RA;$, or to secure the )!tter/s +!rtici+!tion shou)" the &ormer "eci"e to commission !n !u"it 23:

AO . 6>2, O$1OBER 3, 2012 23: R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion o& the (or0 !ccom+)ishe". On the contr!r-, in c!se o& termin!tion "ue to "e&!u)t o& the contr!ctor, *rtic)e P,,,, ;ection 13.< o& the $onstruction $ontr!ct e6+)icit)!))o(s Be))e to uni)!ter!))- e'!)u!te the '!)ue o& the (or0 !n" the on)- con"ition is th!t it be "one in .oo" &!ith. E'en !ssumin. !r.uen"o (e !cce+t RA;$,/s contentions th!t it justi&i!b)- sus+en"e" (or0 !n" th!t *rtic)e P,,,, ;ection 13.< mere)- co'ers inst!nces o& "e&!u)t !n" not situ!tions o& justi&ie" sus+ension o& (or0s, (e see no re!son (h- the +roce"ure &or cess!tion o& (or0 "ue to "e&!u)t c!nnot be !++)ie" to other inst!nces o& cess!tion o& (or0, +!rticu)!r)- in the !bsence o& ! contr!ctu!) +ro'ision .o'ernin. termin!tion or sus+ension o& (or0s in situ!tions not in'o)'in. ! "e&!u)t. Aeri)-, the &!ct th!t the +!rties !.ree" to ! uni)!ter!) '!)u!tion o& the (or0 b- the o(ner in the e'ent o& ! termin!tion o& the contr!ct "ue to "e&!u)t si.ni&ies th!t the +!rties, inc)u"in. RA;$,, "i" not &in" !n-thin. !bhorrent in ! one-si"e" '!)u!tion !t the time o& the e6ecution o& the contr!ct. ,& RA;$, be)ie'e" th!t this (!s un&!ir or th!t its +!rtici+!tion shou)" be re5uire" in ! re'ie( or !u"it o& its (or0, then it shou)" not h!'e !c5uiesce" to such ! +ro'ision in the &irst +)!ce !n" inste!" insiste" on ! sti+u)!tion +rohibitin. ! uni)!ter!) !u"it o& its (or0. 1hir", bi!s on the +!rt o& ! (itness c!nnot be +resume". ,t is ! b!sic ru)e th!t .oo" &!ith is !)(!-s +resume" !n" b!" &!ith must be +ro'e".32 ,n ! +re'ious c!se, (e h!'e he)" th!t the (itness/ em+)o-ment re)!tionshi+ (ith, or &in!nci!) "e+en"ence on, the +!rt- +resentin. his testimon- (ou)" not be su&&icient re!son to "iscre"it s!i" (itness !n" )!be) his testimon- !s bi!se" !n" un(orth- o& cre"ence.33 *n!)o.ous)-, th!t Be))e !n" R.*. 9ojic! h!" ! )on. st!n"in. business re)!tionEEEEEEEEEEEEEEE

32 N!'i"! '. #iSon, =r., G.R. Nos. 1250:>, 12559>, 12665<, 12:>56 !n" 12>39>, 9!- 30, 2011, 6<9 ;$R* 33, >3-><. 33 On. En. Ri!m '. ucit! G. On., 535 %hi). >05, >1:F 505 ;$R* :6, >> ?2006@. 23>

23> ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion shi+ "oes not necess!ri)- me!n th!t the )!tter/s re+ort (!s t!inte" (ith irre.u)!rit-, es+eci!))- in the !bsence o& e'i"ence th!t the !u"it re+ort (!s in"ee" in!ccur!te or erroneous. ,t must be em+h!siSe" !s (e)) th!t RA;$, h!" !m+)e o++ortunit- to cross-e6!mine En.r. 9ojic! (ith res+ect to the +!rticu)!rs o& his com+!n-/s !u"it re+ort. 1o be sure, RA;$, is not +rec)u"e" &rom +ro&&erin. e'i"ence to rebut the &in"in.s o& R.*. 9ojic!. Go(e'er, RA;$, "i" not +resent or +oint to "ocuments, in'oices, !n" recei+ts to sho( th!t the !mounts !n" 5u!ntities in the !u"it re+ort (ere not correct, nor "i" RA;$, con'incin.)- subst!nti!te its !ssertion th!t it h!" com+)ete" (or0 in other !re!s o& the +roject th!t (!s not inc)u"e" in s!i" re+ort. RA;$, mere)re)ie" on its o(n %ro.ress Bi))in. !s su++ose")- si.ne" b- Be))e/s re+resent!ti'es. Go(e'er, it is th!t %ro.ress Bi))in. (hich (!s )!ter 5uestione" b- Be))e on the sus+icion th!t the s!me (!s b)o!te" !n" in!ccur!te. 1hus, Be))e h!" ! thir" +!rtcon"uct !n !u"it o& RA;$,/s !ctu!) (or0 !ccom+)ishment. *s the $,*$ note", there (!s nothin. to +re'ent RA;$, to secure the ser'ices o& its o(n e6+ert (itness to contest the &in"in.s o& R.*. 9ojic! !n" buttress the !ccur!c- o& its %ro.ress Bi))in. (ith su++ortin. "ocuments other th!n such bi))in. but RA;$, "i" not. Gence, (e &in" no error on the +!rt o& the $,*$ !n" the $ourt o& *++e!)s in re)-in. on the thir" +!rt- !u"it re+ort !n" .i'in. it "ue (ei.ht in the reso)ution o& the +resent c!se. Chether Be))e/s !++ro'!) o& the %ro.ress Bi))in. is &in!) !n" bin"in. !n" m!- no )on.er be (ith"r!(n *&ter c!re&u) consi"er!tion o& the contentions o& the +!rties, (e !.ree (ith the $,*$/s &in"in., !s !&&irme" b- the $ourt o& *++e!)s, th!t the o(ner/s !++ro'!) o& +ro.ress bi))in. is mere)- +ro'ision!). 1his much c!n be .)e!ne" &rom *rtic)e A,, ;ection 6.2?c@ o& the $onstruction $ontr!ct (hich st!tes

239

AO . 6>2, O$1OBER 3, 2012 239 R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion th!t 23t4he !cce+t!nce o& (or0 &rom time to time &or the +ur+ose o& m!0in. +ro.ress +!-ment sh!)) not be consi"ere" !s &in!) !cce+t!nce o& the (or0 un"er the $ontr!ct.7 1here c!n be no other inter+ret!tion o& the s!i" +ro'ision but th!t +ro.ress bi))in.s !re but +re)imin!r- estim!tes o& the '!)ue o& the +erio"ic !ccom+)ishments o& the contr!ctor. Other(ise, there (ou)" be no nee" to inc)u"e *rtic)e A,, ;ection 6.2?c@ in the $ontr!ct since &in!) !cce+t!nce o& the contr!ctor/s (or0 (ou)" come !s ! m!tter o& course i& +ro.ress bi))in.s (ere, !s RA;$, conten"s, &in!) !n" bin"in. u+on the o(ner. On the contr!r-, +ro.ress bi))in.s !n" &in!) !cce+t!nce o& the (or0 (ere c)e!r)- sti)) subject to re'ie( b- the o(ner. 9oreo'er, (e see no re!son to "isturb the $,*$ ru)in. th!t the &ore.oin. contr!ctu!) +ro'ision is consistent (ith in"ustr- +r!ctice, !s c!n be "e"uce" &rom *rtic)es 22.02, 22.0< !n" 22.09 o& $,*% #ocument 102 (hich +ertinent)- st!teH 22.02MRETUE;1; 8OR %*Q9EN1H 1he $ontr!ctor m!- submit +erio"ic!))- but not more th!n once e!ch month ! Re5uest &or %!-ment &or (or0 "one. 1he $ontr!ctor sh!)) &urnish the O(ner !)) re!son!b)e &!ci)ities re5uire" &or obt!inin. the necess!rin&orm!tion re)!ti'e to the +ro.ress !n" e6ecution o& the Cor0. 6 6 6. MM6 6 6 6 22.0<M$ON#,1,ON; RE *1,AE 1O %*Q9EN1;H 1he O(ner sh!)) estim!te the '!)ue o& (or0 !ccom+)ishe" b- the $ontr!ctor usin. !s b!sis the sche"u)e sti+u)!te" in the Bre!0"o(n o& Cor0 !n" $orres+on"in. A!)ue. ;uch estim!te o& the O(ner o& the !mount o& (or0 +er&orme" sh!)) be t!0en !s the b!sis &or the com+ens!tion to be recei'e" b- the $ontr!ctor. Chi)e such +re)imin!r- estim!tes o& !mount !n" 5u!ntit- sh!)) not be re5uire" to be m!"e b- strict me!surement or (ith e6!ctness, the- must be m!"e !s c)ose !s +ossib)e to the !ctu!) +ercent!.e o& (or0 !ccom+)ishment. MM6 6 6 6 22.09M*$$E%1*N$E *N# 8,N* %*Q9EN1H Chene'er the $ontr!ctor noti&ies the O(ner th!t the Cor0 un"er the $on2<0

2<0 ;U%RE9E $OUR1 RE%OR1; *NNO1*1E# R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion tr!ct h!s been com+)ete)- +er&orme" b- the $ontr!ctor, the O(ner sh!)) +rocee" to 'eri&- the (or0, sh!)) m!0e the &in!) estim!tes, certi&- to the com+)etion o& the (or0, !n" !cce+t the s!me. 8rom the !bo'e-5uote" +ro'isions, it is re!"i)- !++!rent th!t, (hether in the c!se o& +ro.ress bi))in.s or o& turn-o'er o& com+)ete" (or0, the o(ner h!s the ri.ht to 'eri&the contr!ctor/s !ctu!) (or0 !ccom+)ishment +rior to +!-ment. ,n !)), (e !++ro'e the $,*$/s +ronouncement th!t 23t4he o(ner is, there&ore, not esto++e" 3&rom 5uestionin.4 ! +rior e'!)u!tion o& the +ercent!.e o& !ccom+)ishment o& the contr!ctor !n" to "o(n.r!"e such !ccom+)ishment !&ter ree'!)u!tion. ,t is the ri.ht o& e'er- o(ner to re-e'!)u!te or re-me!sure the (or0 o& its contr!ctor "urin. the +ro.ress o& the (or0.73< Chether Be))e shou)" be m!"e )i!b)e to RA;$, &or "!m!.es *nent the thir" issue, it is !+ro+os to st!te here th!t the r!tion!)e un"er)-in. the o(ner/s ri.ht to see0 !n e'!)u!tion o& the contr!ctor/s (or0 is the ri.ht to +!- on)the true '!)ue o& the (or0 !s m!- be re!son!b)- "etermine" un"er the circumst!nces. 1his is consistent (ith the )!( !.!inst unjust enrichment un"er *rtic)e 22 o& the $i'i) $o"e (hich st!tes th!t 23e4'er- +erson (ho throu.h !n !ct o& +er&orm!nce b!nother, or !n- other me!ns, !c5uires or comes into +ossession o& somethin. !t the e6+ense o& the )!tter (ithout just or )e.!) .roun", sh!)) return the s!me to him.7 E6+oun"in. on this +ro'ision in ! recent c!se, (e h!'e he)" th!t 23t4he +rinci+)e o& unjust enrichment essenti!))- contem+)!tes +!-ment (hen there is no EEEEEEEEEEEEEEE 3< Ro))o, Ao). ,,, +. 6<<. 2<1

AO . 6>2, O$1OBER 3, 2012 2<1 R.A. ;!ntos $om+!n-, ,nc. 's. Be))e $or+or!tion

"ut- to +!-, !n" the +erson (ho recei'es the +!-ment h!s no ri.ht to recei'e it.735 ,n the c!se !t b!r, (e u+ho)" the $,*$/s &!ctu!) &in"in. th!t the '!)ue o& the tot!) (or0 !ccom+)ishe" b- RA;$, on the m!in +roject (!s %<,>6>,<<3.59 (hi)e the cost o& the !""ition!) (or0 !mounte" to %1,:6>,000.00 +)us %22,<<2.2:, &or ! tot!) o& %6,65>,>>5.>6. On the other h!n", Be))e h!" m!"e +!-ments in the tot!) !mount o& %11,59>,99<.<<.36 ,t is thus un"eni!b)e th!t RA;$, h!" recei'e" +!-ments &rom Be))e in e6cess o& the '!)ue o& its (or0 !ccom+)ishment. ,n )i.ht o& this o'er+!-ment, it seems s+ecious &or RA;$, to c)!im th!t it h!s su&&ere" "!m!.es &rom Be))e/s re&us!) to +!- its %ro.ress Bi))in., (hich h!" been +ro'en to be e6cessi'e !n" in!ccur!te. Be!rin. in min" the )!( !n" juris+ru"ence on unjust enrichment, (e ho)" th!t RA;$, is in"ee" )i!b)e to return (h!t it h!" recei'e" be-on" the !ctu!) '!)ue o& the (or0 it h!" "one &or Be))e. On ! re)!te" note, this $ourt c!nnot .r!nt RA;$,/s c)!im &or the '!)ue o& m!teri!)s !n" e5ui+ment !))e.e")- )e&t !t the site. *s obser'e" b- the $,*$, this +!rticu)!r c)!im (!s not inc)u"e" in the 1erms o& Re&erence !n", hence, cou)" not be )iti.!te" u+on or +ro'e" "urin. the $,*$ +rocee"in.s. ,n conc)usion, the $,*$ ri.ht)- "ismisse" RA;$,/s counterc)!ims &or )!c0 o& merit. #isposition: %etition "enie", ju".ment !n" reso)ution !&&irme".