ABAD V GOLDLOOP PROPERTIES INC.

GR NO 168108, APRIL 13, 2007

CALLEJP, SR, J:
PROCEDURAL HISTORY:
BEFORE THE COURT IS A PETITION FOR REVIEW ON CERTIORARI UNDER RULE 45 OF THE RULES
OF COURT, ASSAILING THE DECISION OF THE COURT OF APPEALS IN CA-GR CV NO 77559. THE RULING
OF THE APPELLATE COURT AFFIRMED IN TO THE DECISION OF THE RTC, PASIG CITY, BRANCH 167, IN
CIVIL CASE NO. 67192.

FACTS:
PETITIONER ENRIQUE ABAD, WERE THE OWNERS IF 13 PARCELS OF TITLED AGRICULTURAL ALND
COVERING 53,562 SQUARE METERS. THE LOTS WERE SITUATED IN THE SC MALABNO ESTATE IN TANZA
CAVITE. RESPONDENT GOLDLOOP ENTERED INTO A DEED OF CONDITIONAL SALE WITH PETITIONERS AT
THE PRICE OF 650 PESOS PER SQUARE METER, OR A TOTAL OF 34,815,300 FOR THE ENTIRE LAND
AREA. ZAPANTA INFORMED HENRY ABAD THAT HE WOULD NOT OBJECT TOT THE PLANNED SALE OF THE
PROPERTIES TO OTHER PARTIES, PROVIDED THAT 50 PERCENT OF THE FORFEITABLE AMOUNT OF 1
MILLION PESOS WOULD BE RETURNED. RESPONDENT FILED A COMPLAINT FOR COLLECTION WITH PRAYER
OF WRIT OF ATTACHEMENT AGAINST PETITIONERS A TRO DIRECTING THE DEFENDANTS TO JOINTLY AND
SEVERALLY STOP FROM EXECUTING ANY DEED. THE RTC RULED FAVIR OF RESPONDENT AND ISSUED AN
OMNIBUS ORDER DENYING BOTH MOTIONS.

ISSUE: WHETHER OR NOT THE WRITTEN TERMS OF THE CONTRACT ARE NOT AMBIGUOUS AND CAN ONLY
BE READ ONE WAY?

ANSWER: YES

REASONING: THE RULE IS THAT WHERE THE LANGUAGE OF A CONTRACT IS PLAIN AND UNAMBIGUOUS, ITS
MEANING SHOULD BE DETERMINED WITHOUT REFERENCE TO EXTRINSIC FACTS OR AIDS. THE INTENTION
OF THE PARTIES MUST BE GATHERED FROM THAT LANGUAGE, AND FROM THAT LANGUAGE ALONE.
STATED DIFFERENTLY, WHERE THE LANGUAGE OF A WRITTEN CONTRACT IS CLEAR AND UNAMBIGUOUS,
THE CONTRACT MUST BE TAKEN TO MEAN THAT WHICH, ON ITS FACE, IT PURPORTS TO MEAN, UNLESS
SOME GOOD REASON CAN BE ASSIGNED TO SHOW THAT THE WORDS SHOULD BE UNDERSTOOD IN A
DIFFERENT SENSE.

HOLDING: CONSIDERING THE FOREGOING, THE COURT RESOLVED TO DENY THE PETITION. THE DECISION
AND RESOLUTION OF THE COURT OF APPEALS IN CA-G.R. CV NO. 77559 ARE AFFIRMED.
 REPUBLIC OF THE PHILIPPINES V CARMEN VDA. DE CASTELLVI
GR NO. L-20620, AUGUST 15, 1974

ZALDIVAR, J:
PROCEDURAL HISTORY:
PLAINTIFF-APPELLANT, THE REPUBLIC OF THE PHILIPPINES, (HEREINAFTER REFERRED TO AS THE
REPUBLIC) FILED, ON JUNE 26, 1959, A COMPLAINT FOR EMINENT DOMAIN AGAINST DEFENDANT-
APPELLEE, CARMEN M. VDA. DE CASTELLVI, JUDICIAL ADMINISTRATRIX OF THE ESTATE OF THE LATE
ALFONSO DE CASTELLVI (HEREINAFTER REFERRED TO AS CASTELLVI), OVER A PARCEL OF LAND
SITUATED IN THE BARRIO OF SAN JOSE, FLORIDABLANCA, PAMPANGA.

FACTS: THE REPUBLIC, THROUGH THE PHILIPPINE AIR FORCE (PAF) WAS IN A LEASE AGREEMENT WITH
CASTELLVI FOR THE LATTER’S PROPERTY ON YEARLY BASIS, STARTING 1 JULY 1947. UPON EXPIRATION OF
THE AGREEMENT ON 1956, CASTELLVI DID NOT RENEW THE SAME BECAUSE SHE WANTED TO SELL THE
LEASED PROPERTY. FROM THEN ON, THE PAF WAS ILLEGALLY OCCUPYING THE SAID PROPERTY AND
THEREBY WAS RECEIVING REPEATED DEMANDS TO VACATE. THE CONTINUED USE BY THE PAF ON THE
PROPERTY PREVENTED CASTILLEVI FROM USING AND DISPOSING OF IT, THUS CAUSING HER DAMAGES BY
WAY OF UNREALIZED PROFIT. AFTER HAVING DETERMINED THAT THE LANDS SOUGHT TO BE
EXPROPRIATED WERE RESIDENTIAL LANDS, THEY RECOMMENDED UNANIMOUSLY THAT THE LOWEST PRICE
THAT SHOULD BE PAID WAS P 10.00 PER SQUARE METER, FOR BOTH LANDS OF CASTELLVI AND TOLEDO-
GOZUN. AN ADDITIONAL P 5,000 BE PAID TO TOLEDO-GOZUN FOR IMPROVEMENTS FOUND ON HER LAND.
LEGAL INTEREST ON THE COMPENSATION, COMPUTED FROM AUGUST 10, 1959, BE PAID AFTER DEDUCTING
THE AMOUNTS ALREADY PAID TO THE OWNERS, AND THAT NO CONSEQUENTIAL DAMAGES BE AWARDED
ISSUE: WHETHER OR NOT THE LANGUAGE USED IN THE CONTRACT IS CLEAR AND UNAMBIGOUS?
ANSWER: YES
REASONING: BY EXPRESS PROVISION OF THE LEASE AGREEMENT THE REPUBLIC, AS LESSEE,
UNDERTOOK TO RETURN THE PREMISES IN SUBSTANTIALLY THE SAME CONDITION AS AT THE TIME THE
PROPERTY WAS FIRST OCCUPIED BY THE AFP. IT IS CLAIMED THAT THE INTENTION OF THE LESSEE WAS
TO OCCUPY THE LAND PERMANENTLY, AS MAY BE INFERRED FROM THE CONSTRUCTION OF PERMANENT
IMPROVEMENTS. BUT THIS "INTENTION" CANNOT PREVAIL OVER THE CLEAR AND EXPRESS TERMS OF THE
LEASE CONTRACT. INTENT IS TO BE DEDUCED FROM THE LANGUAGE EMPLOYED BY THE PARTIES, AND
THE TERMS 'OF THE CONTRACT, WHEN UNAMBIGUOUS, AS IN THE INSTANT CASE, ARE CONCLUSIVE IN THE
ABSENCE OF AVERMENT AND PROOF OF MISTAKE OR FRAUD THE QUESTION BEING NOT WHAT THE
INTENTION WAS, BUT WHAT IS EXPRESSED IN THE LANGUAGE USED.
HOLDING: THE GRANTING OR DENIAL OF A MOTION FOR NEW TRIAL IS, AS A GENERAL RULE,
DISCRETIONARY WITH THE TRIAL COURT, WHOSE JUDGMENT SHOULD NOT BE DISTURBED UNLESS THERE IS
A CLEAR SHOWING OF ABUSE OF DISCRETION. WE DO NOT SEE ANY ABUSE OF DISCRETION ON THE PART
OF THE LOWER COURT WHEN IT DENIED THE MOTIONS FOR A NEW TRIAL.
 NATIONAL IRRIGATION ADMINISTRATION V GAMIT
GR NO. 85869, NOVEMBER 6, 1992

PADILLA, J:
PROCEDURAL HISTORY:
ON 23, JANUARY 1985, THE PLAINTIFF GAMIT FILED WITH THE RTC OF ROXAS, ISABELA, BRANCH
XXIII, A COMPLAINT AGAINST THE DEFENDANT NIA FOR REFORMATION OF CONTRACT, RECOVERY OF
POSSESSION AND DAMAGES, DOCKETED THEREIN AS CIVIL CASE NO. 4, ALLEGING, AMONG OTHERS.

FACTS:
ESTANISLAO GAMIT (PRIVATE RESPONDENT HEREIN) FILED WITH THE RTC OF ROXAS, ISABELA,
BRANCH XXIII,A COMPLAINT AGAINST THE DEFENDANT NATIONAL IRRIGATION ADMINISTRATION
(PETITIONER... HEREIN) FOR REFORMATION OF CONTRACT, RECOVERY OF POSSESSION AND DAMAGES,
THAT DEFENDANT IS IN CHARGE OF THE IMPLEMENTATION OF THE IRRIGATION PROGRAM OF THE
NATIONAL GOVERNMENT TO INCREASE FOOD PRODUCTION NATIONWIDE,... AFTER SOME NEGOTIATIONS WERE
MADE, ENTERED... INTO A CONTRACT OF LEASE, OVER PLAINTIFF'S URBAN PARCEL OF LAND
AN UNDIVIDED PORTION OF TWENTY FIVE THOUSAND (25,000) SQUARE METERS... MORE OR LESS, AND
FORMING PART OF THAT PARCEL OF LAND WITH A TOTAL AREA OF THIRTY THOUSAND AND FIVE (30,005)
SQUARE MATERS... FUNDED BY A MULTI-BILLION LOAN FROM THE WORLD BANK
FOR A CONSIDERATION OR RENTAL IN THE SUM OF TEN CENTAVOS (P0.10) PER SQUARE METER, PER
YEAR, FOR TEN (10) YEARS, FROM DATE OF EXECUTION OF THE INSTRUMENT, FOR THE USE BY
DEFENDANT ON WHICH TO CONSTRUCT THE ADMINISTRATION BUILDING AND OTHER FACILITIES FOR DIVISION
III, MAGAT RIVER MULTI-PURPOSE PROJECT AT SAN MANUEL, ISABELA,.THAT IN AT LEAST THREE
PARAGRAPHS, (4, 8, 9) OF THE CONTRACT OF LEASE THE DEFENDANT SURREPTITIOUSLY INSERTED, THE
FOLLOWING STIPULATIONS,SITUATED AT THE POBLACION (CENTRO), SAN MANUEL, ISABELA... FURTHER
NEGOTIATIONS FOLLOWED, AND A DOCUMENT DENOMINATED AS 'AGREEMENT' WAS PREPARED BY HEREIN
DEFENDANT FOR THE SIGNATURE OF PLAINTIFF AND THE LATTER AND HIS WIFE SIGNED THE SAME, WITH
ONE ENGR. ANTONIO A. RAMOS, THEN THE CHIEF OF DIVISION III, MRMP, SAN
MANUEL, ISABELA, SIGNING AS AN INSTRUMENTAL WITNESS; FOR REASONS KNOWN ONLY TO THE ASST.
PROJECT MANAGER... THE WHOLE RENTAL OF THE LEASED PREMISES WAS OFFERED TO BE PAID BY THE
DEFENDANT AND THE PLAINTIFF BEING THEN IN NEED OF CASH, AS HE WAS THEN IN FINANCIAL
DISTRESS,.ACCEPTED THE OFFER, AND FINALLY RECEIVED THE WHOLE AMOUNT,... IN A LETTER...
DEFENDANT NOTIFIED THE FORMER, OF THE ELECTION TO PURCHASE THE LEASED PREMISES,
ALLEGEDLY IN ACCORDANCE WITH STIPULATION NO. 8 QUOTED ABOVE AND CONTAINED IN THE CONTRACT
OF LEASE
THAT THE CONTRACT OF LEASE ENTERED INTO, BY AND BETWEEN HEREIN PLAINTIFF AND DEFENDANT
DOES NOT EXPRESS THE REAL AGREEMENT OR INTENTION OF THE PARTIES, AS THERE WAS ERROR OR
MISTAKE OF FACT ON THE PART OF PLAINTIFF, AGGRAVATED BY HIS STATE OF FINANCIAL DISTRESS... AT
THE TIME THE CONTRACT WAS SIGNED, AND HEREIN DEFENDANT ACTED FRAUDULENTLY OR
INEQUITABLY... EXERCISING UNDUE INFLUENCE OVER PLAINTIFF ON ACCOUNT OF THE LATTER'S FINANCIAL
DISTRESS
ISSUE: WHETHER OR NOT THE COURT OF APPEALS HAS PROPERLY INTERPRETEED THE CONTRACTS
ANSWER: NO
REASONING: IN ORDER THAT AN ACTION FOR REFORMATION OF INSTRUMENT AS PROVIDED IN ARTICLE
1359 OF THE CIVIL CODE MAY PROSPER, THE FOLLOWING REQUISITES MUST CONCUR: (1) THERE MUST
HAVE BEEN A MEETING OF THE MINDS OF THE PARTIES TO THE CONTRACT (2) THE INSTRUMENT DOES
NOT EXPRESS THE TRUE INTENTION OF THE PARTIES AND (3) THE FAILURE OF THE INSTRUMENT TO
EXPRESS THE TRUE INTENTION OF THE PARTIES IS DUE TO MISTAKE, FRAUD, INEQUITABLE CONDUCT OR
ACCIDENT.
HOLDING: WHEREFORE, THE DECISION OF THE TRIAL COURT DATED 20 MARCH 1986 AS WELL AS THE
DECISION OF THE COURT OF APPEALS DATED 14 NOVEMBER 1988 ARE HEREBY SET ASIDE AND THE CASE
SHOULD BE, AS IT IS HEREBY, REMANDED TO THE COURT OF ORIGIN FOR FURTHER PROCEEDINGS IN
ACCORDANCE WITH THIS DECISION. WITHOUT COSTS.
 KASILAG V RODRIGUEZ
GR NO. 46623, DECEMBER 7, 1939

IMPERIAL, J:
PROCEDURAL HISTORY:
THIS IS AN APPEAL TAKEN BY THE DEFENDANT-PETITIONER FROM THE DECISION OF THE COURT
OF APPEALS WHICH MODIFIED THAT RENDERED BY THE COURT OF FIRST INSTANCE OF BATAAN IN CIVIL
CASE NO. 1504 OF SAID COURT AND HELD: THAT THE CONTRACT EXHIBIT "1" IS ENTIRELY NULL AND VOID
AND WITHOUT EFFECT THAT THE PLAINTIFFS-RESPONDENTS, THEN APPELLANTS, ARE THE OWNERS OF
THE DISPUTED LAND, WITH ITS IMPROVEMENTS, IN COMMON OWNERSHIP WITH THEIR BROTHER GAVINO
RODRIGUEZ, HENCE, THEY ARE ENTITLED TO THE POSSESSION THEREOF THAT THE DEFENDANT-
PETITIONER SHOULD YIELD POSSESSION OF THE LAND IN THEIR FAVOR, WITH ALL THE IMPROVEMENTS
THEREON AND FREE FROM ANY LIEN THAT THE PLAINTIFFS-RESPONDENTS JOINTLY AND SEVERALLY PAY
TO THE DEFENDANT-PETITIONER THE SUM OF P1,000 WITH INTEREST AT 6 PERCENT PER ANNUM FROM
THE DATE OF THE DECISION AND ABSOLVED THE PLAINTIFFS-RESPONDENTS FROM THE CROSS-
COMPLAINT RELATIVE TO THE VALUE OF THE IMPROVEMENTS CLAIMED BY THE DEFENDANT-PETITIONER.
THE APPEALED DECISION ALSO ORDERED THE REGISTRAR OF DEEDS OF BATAAN TO CANCEL
CERTIFICATE OF TITLE NO. 325, IN THE NAME OF THE DECEASED EMILIANA AMBROSIO AND TO ISSUE IN
LIEU THEREOF ANOTHER CERTIFICATE OF TITLE IN FAVOR OF THE PLAINTIFFS-RESPONDENTS AND THEIR
BROTHER GAVINO RODRIGUEZ, AS UNDIVIDED OWNERS IN EQUAL PARTS, FREE OF ALL LIENS AND
INCUMBRANCES EXCEPT THOSE EXPRESSLY PROVIDED BY LAW, WITHOUT SPECIAL PRONOUNCEMENT AS TO
THE COSTS.
FACTS:
THE RESPONDENTS, CHILDREN AND HEIRS OF THE DECEASED EMILIANA AMBROSIO, COMMENCED
THE AFORESAID CIVIL CASE TO THE END THAT THEY RECOVER FROM THE PETITIONER THE POSSESSION
OF THE LAND AND ITS IMPROVEMENTS GRANTED BY WAY OF HOMESTEAD... TO EMILIANA AMBROSIO UNDER
PATENT NO. 16074... ISSUED ON JANUARY 11, 1931, WITH CERTIFICATE OF TITLE NO. 325 ISSUED BY THE
REGISTRAR OF DEEDS OF BATAAN ON JUNE 27, 1931 IN HER FAVOR, UNDER SECTION 122 OF ACT. NO.
496, WHICH LAND WAS SURVEYED AND IDENTIFIED IN THE CADASTRE OF THE MUNICIPALITY OF LIMAY,
PROVINCE OF BATAAN, AS... LOT NO. 285 THAT THE PETITIONER PAY TO THEM THE SUM OF P650 BEING
THE APPROXIMATE VALUE OF THE FRUITS WHICH HE RECEIVED FROM THE LAND THAT THE PETITIONER
SIGN ALL THE NECESSARY DOCUMENTS TO TRANSFER THE LAND AND ITS POSSESSION TO THE
RESPONDENTS THAT THE... PETITIONER BE RESTRAINED, DURING THE PENDENCY OF THE CASE, FROM
CONVEYING OR ENCUMBERING THE LAND AND ITS IMPROVEMENTS THAT THE REGISTRAR OF DEEDS OF
BATAAN CANCEL CERTIFICATE OF TITLE NO. 325 AND ISSUE IN LIEU THEREOF ANOTHER IN FAVOR OF
THE RESPONDENTS, AND THAT THE... PETITIONER PAY THE COSTS OF SUIT.
ISSUE: WHETHER THE PETITIONER SHOULD BE DEEMED A POSSESSOR IN GOOD FAITH BECAUSE HE WAS
UNAWARE OF ANY FLAW IN HIS TITLE OR IN THE MANNER OF ITS ACQUISITION BY WHICH IT IS
INVALIDATED. IT WILL BE NOTED THAT... IGNORANCE OF THE FLAW IS THE KEYNOTE OF THE RULE.
ANSWER: YES
REASONING: "BUT EVEN IGNORANCE OF THE LAW MAY BE BASED UPON AN ERROR OF FACT, OR BETTER
STILL, IGNORANCE OF A FACT IS POSSIBLE AS TO THE CAPACITY TO TRANSMIT AND AS TO THE
INTERVENTION OF CERTAIN PERSONS, COMPLIANCE WITH CERTAIN FORMALITIES AND APPRECIATION OF
CERTAIN ACTS, AND AN ERROR... OF LAW IS POSSIBLE IN THE INTERPRETATION OF DOUBTFUL
DOCTRINES." (MANRESA, COMMENTARIES ON THE SPANISH CIVIL CODE, VOLUME IV, PP. 100, 101 AND 102.)
HOLDING: I DISSENT FROM THE MAJORITY DECISION AND VOTE FOR THE AFFIRMANCE OF THE DECISION
OF THE COURT OF APPEALS.
 MAGTIRA V CA
GR NO. L-27547, MARCH 31, 1980

MELENCIO-HERRERA, J:
PROCEDURAL HISTORY:
A PETITION FOR REVIEW ON CERTIORARI OF THE DECISION OF THE COURT OF APPEALS AFFIRMING
THE TRIAL COURT DECISION AND HOLDING THAT THE CONTRACT BETWEEN THE PARTIES WAS ONE
OF PACTO DE RETRO AND NOT OF EQUITABLE MORTGAGE, TO WHICH WE GAVE DUE COURSE IN A
RESOLUTION DATED MAY 22, 1967.
FACTS:
THE PARCEL OF RICELAND IN CONTROVERSY, SITUATED IN BARRIO SANTO ROSARIO, PAOMBONG,
BULACAN, MEASURING APPROXIMATELY 3,412 SQUARE METERS, BELONGED TO ISIDORO MAGTIRA WHO
DIED INTESTATE IN 1953 LEAVING PETITIONER, SOFIA MAGTIRA, AS HIS SOLE HEIR. IT SHOULD BE NOTED
THAT WHILE THE DOCUMENT IS ENTITLED "KASULATANG SANGLAAN" THE BODY THEREOF CONTAINS A
STATEMENT THAT "INILIPAT IPINAGBILI NANG BILING MABIBILING MULI." ZACARIAS TOOK POSSESSION OF
THE PROPERTY BEGINNING FEBRUARY 8, 1926 AND PAID TAXES THEREON PURSUANT TO THE
AFOREQUOTED AGREEMENT. ALMOST TWO AND A HALF YEARS AFTER THE EXECUTION OF ANNEX "A", OR
ON JUNE 12, 1928, ISIDORO AND HIS DAUGHTER SOFIA OBTAINED FROM ZACARIAS AN ADDITIONAL AMOUNT
OF ONE HUNDRED AND FORTY PESOS (P140.00). ANOTHER AMOUNT OF P35.00 WAS OBTAINED BY SOFIA
FROM ZACARIAS ON MAY 17, 1929. FINALLY, ON MAY 1, 1930, ISIDORO RECEIVED THE AMOUNT OF P100.00
FROM ZACARIAS. IN AN UNDATED PRIVATE INSTRUMENT SIGNED BY SOFIA AND ZACARIAS, QUOTED
HEREUNDER, THE MAGTIRAS ASKED FOR AND WERE GIVEN AN EXTENSION OF FIVE YEARS, OR UP TO
APRIL 30, 1935, WITHIN WHICH TO "REDEEM."
ISSUE: PETITIONER MAINTAINS THAT THE COURT OF APPEALS ERRED IN CONCLUDING 1) THAT THE
AGREEMENT BETWEEN THE PARTIES IS A SALE WITH PACTO DE RETRO INSTEAD OF A LOAN WITH
EQUITABLE MORTGAGE AND 2) THAT SHE IS GUILTY OF... LACHES WHICH ESTOPS HER FROM ASSERTING
HER CAUSE OF ACTION.
ANSWER: YES
REASONING:
WE UPHOLD RESPONDENT COURT'S FINDING THAT THE WORDS "AKING INILIPAT, IPINAGBILI NANG
BILING MABIBILING MULI" USED BY THE PARTIES IN THE DOCUMENT, EXHIBIT "A", ARE EXPRESSIVE OF
THEIR INTENT THAT THE PROPERTY BE SOLD WITH A RIGHT OF REPURCHASE. THOSE WORDS MUST BE...
GIVEN THEIR ORDINARY AND COMMON MEANING. THAT THE DOCUMENT, EXHIBIT "A", IS ENTITLED
"KASULATANG SANGLAAN" IS NOT A DECISIVE FACTOR. IT IS SETTLED THAT:
"TO DETERMINE THE NATURE OF A CONTRACT COURTS DO NOT HAVE OR ARE NOT BOUND TO RELY UPON
THE NAME OR TITLE GIVEN IT BY THE CONTRACTING PARTIES, SHOULD THERE BE A CONTROVERSY AS
TO WHAT THEY REALLY HAD INTENDED TO ENTER INTO, BUT THE WAY THE CONTRACTING PARTIES DO
OR... PERFORM THEIR RESPECTIVE OBLIGATIONS STIPULATED OR AGREED UPON MAY BE SHOWN AND
INQUIRED INTO, AND SHOULD SUCH PERFORMANCE CONFLICT WITH THE NAME OR TITLE GIVEN THE
CONTRACT BY THE PARTIES, THE FORMER MUST PREVAIL OVER THE LATTER."
HOLDING: WHEREFORE, THE JUDGMENT APPEALED FROM, DISMISSING THE COMPLAINT, IS HEREBY
AFFIRMED.
 MANILA ELECTRIC CO. V CA
GR NO. L-39019, JANUARY 22, 1988

YAP, J:
PROCEDURAL HISTORY:
ON APPEAL, THE COURT OF APPEALS AND IN TOTO THE TRIAL COURT'S DECISION. THEIR MOTION
FOR RECONSIDERATION HAVING BEEN DENIED, PETITIONERS FILED THE INSTANT PETITION FOR
CERTIORARI. PETITIONER MANILA ELECTRIC COMPANY (MERALCO) IS A PUBLIC UTILITY CORPORATION
PROVIDING ELECTRIC POWER FOR THE CONSUMPTION OF THE GENERAL PUBLIC IN METRO MANILA.
PETITIONER PEDRO YAMBAO IS A BILL COLLECTOR OF MERALCO.
FACTS:
TO RECOVER THE DAMAGES DUE TO EMBARRASSMENT, HUMILIATION, HURT PRIDE, AND WOUNDED
FEELINGS INFLICTED BY MERALCO AND YAMBAO DURING THE DISCONNECTION OF THE CHAVEZ FAMILY’S
ELECTRICAL SERVICE THE CHAVEZ FAMILY FILED A COMPLAINT AT CFI-MANILA. PRIVATE RESPONDENTS
ISAAC CHAVEZ AND JUANA O. CHAVEZ, HUSBAND AND WIFE, FILED THE COMPLAINT FOR DAMAGES,
TOGETHER WITH THEIR CHILDREN, ISAAC O. CHAVES, JR. AND ROSENDO O. CHAVES. ISAAC SR. AND ISAAC
JR. AND ROSENDO WERE MEMBERS OF THE PHILIPPINE BAR ISAAC, SR. AND ISAAC, JR. WERE PRACTICING
LAWYERS AND ROSENDO WAS A LEGAL OFFICER AT THE AGRICULTURAL PRODUCTIVITY COMMISSION. JUANA
O. CHAVES WAS A PUBLIC SCHOOL TEACHER.
ISSUE: WHETHER OR NOT, IN THE ABSENCE OF BAD FAITH IN DISCONNECTING THE SERVICE TO CHAVEZ
FAMILY, MERALCO AND YAMBAO COULD BE HELD LIABLE FOR DAMAGES.
ANSWER: YES
REASONING: THERE IS NO ABUSE OF DISCRETION IN THE PART OF THE CA IN AFFIRMING THE ASSAILED
DECISION OF THE CFI MANILA. THE RIGHT TO DISCONNECT THE ELECTRIC SERVICE OF A DELINQUENT
CUSTOMER SHALL BE ACCOMPANIED BY A GIVEN NOTICE 48 HOURS IN ADVANCED AS PROVIDED FOR IN
SECTION 97 OF THE REVISED ORDER NO. 1 OF THE PUBLIC SERVICE COMMISSION
HOLDING: ACCORDINGLY, WE FIND NO GRAVE ABUSE OF DISCRETION COMMITTED BY RESPONDENT COURT
IN AFFIRMING THE TRIAL COURT'S DECISION. THE PETITION IS HEREBY DISMISSED FOR LACK OF MERIT.
 EASTERN ASSURANCE V. IAC
GR NO. L-69450, NOVEMBER 22, 1988
FELICIANO, J:
PROCEDURAL HISTORY:
THE PETITION AT BAR SEEKS A REVIEW OF THE DECISION DATED 11 DECEMBER 1984 RENDERED
BY THE THEN INTERMEDIATE APPELLATE COURT, IN AC-G.R. CV NO. 67253. ON 8 JANUARY 1976 , THE
REGION 7 (CEBU) OFFICE OF RESPONDENT DEPARTMENT OF AGRARIAN REFORM ("DAR") PUT UP FOR
PUBLIC BIDDING A JOB OR PROJECT CONSISTING OF THE REPAIR OF SEVEN (7) UNITS OF (USAID) WILLYS
MITSUBISHI EISENHOWER JEEPS. AMONG THE BIDDERS WAS MOTOR CITY, AN AUTOMOTIVE REPAIR,
COMPANY, WHICH LATTER ON EMERGED AS THE WINNING BIDDER.
FACTS:
ON 8 JANUARY 1976, THE REGION 7 (CEBU) OFFICE OF RESPONDENT DEPARTMENT OF AGRARIAN REFORM
("DAR") PUT UP FOR PUBLIC BIDDING A JOB OR PROJECT CONSISTING OF THE REPAIR OF SEVEN (7)
UNITS OF (USAID) WILLYS MITSUBISHI EISENHOWER JEEPS. AMONG THE BIDDERS WAS MOTOR CITY, AN
AUTOMOTIVE REPAIR, COMPANY, WHICH LATTER ON EMERGED AS THE WINNING BIDDER. PETITIONER
EASTERN ASSURANCE AND SURETY CORPORATION, AS SURETY ON BEHALF OF MOTOR CITY, ISSUED A
PROPOSAL BOND WHICH PROVIDED THAT DAR WILL BE INDEMNIFIED IN THE AMOUNT OF P33,275.00 IF
MOTOR CITY: (1) FAILS TO GUARANTEE THE TRUE AND FAITHFUL PERFORMANCE OF THE CONTRACT IN
CASE OF AWARD; (2) SHALL REFUSE TO ACCEPT THE SAME OR (3) SHALL NOT ANSWER FOR ANY DELAY
AND DEFAULT IN THE EXECUTION OF THE CONTRACT AS PROVIDED IN THE PROPOSAL
ISSUE: WHETHER OR NOT EASTERN INCURRED LIABILITY UNDER THE PROPOSAL BOND AFTER THE
CONTRACT FOR REPAIR OF JEEPS HAD BEEN ENTERED INTO BETWEEN THE DAR AND MOTOR CITY
ANSWER: YES
REASONING: EASTERN INCURRED LIABILITY BECAUSE WHEN VIEWED IN ITS ENTIRETY, THE PROPOSAL BOND
MAY BE SEEN TO BE NOT MERELY A PROPOSAL (OR BID) BOND BUT ALSO A PERFORMANCE BOND.
PROPOSAL OR BID BOND. ITS PURPOSE IS TO ASSURE THE OWNER OF THE PROJECT OF THE GOOD FAITH
OF THE BIDDER AND THAT THE BIDDER WILL ENTER INTO A CONTRACT WITH THE PROJECT OWNER
SHOULD HIS PROPOSAL BE ACCEPTED. PERFORMANCE BOND - DESIGNED TO AFFORD THE PROJECT
OWNER SECURITY THAT THE BIDDER, NOW THE CONTRACTOR, WILL FAITHFULLY COMPLY WITH THE
REQUIREMENTS OF THE CONTRACT AWARDED TO THE CONTRACTOR AND MAKE GOOD DAMAGES
SUSTAINED BY THE PROJECT OWNER IN CASE OF THE CONTRACTOR'S FAILURE TO SO PERFORM
HOLDING: WHEREFORE, THE PETITION FOR REVIEW IS DENIED FOR LACK OF MERIT. THE DECISION DATED
11 DECEMBER 1984 OF THE THEN INTERMEDIATE APPELLATE COURT IN A.C.G.R. CV 67523 IS HEREBY
AFFIRMED WITH THE MODIFICATION THAT THE ONE PERCENT (1%) INDEMNITY CHARGE PER DAY OF DELAY
IN DELIVERY PROVIDED FOR IN THE CONTRACT FOR REPAIR OF JEEPS SHALL BE COMPUTED FROM 13
MARCH 1978 (NOT 3 MARCH 1978), THE DATE OF LAST DEMAND. PETITIONER'S LIABILITY FOR SUCH
INDEMNITY CHARGE SHALL NOT EXCEED THE FACE AMOUNT OF THE PROPOSAL BOND (P33,275.00).
COSTS AGAINST PETITIONER.
 ADELFA PROPERTIES V. CA
GR NO. 111238, JANUARY 25, 1995
REGALADO, J:
PROCEDURAL HISTORY:
THE MAIN ISSUES PRESENTED FOR RESOLUTION IN THIS PETITION FOR REVIEW ON CERTIORARI OF
THE JUDGMENT OF RESPONDENT COURT OF APPEALS, DATED APRIL 6, 1993, IN CA-G.R. CV NO.
347671 ARE (1) WHETHER OF NOT THE "EXCLUSIVE OPTION TO PURCHASE" EXECUTED BETWEEN
PETITIONER ADELFA PROPERTIES, INC. AND PRIVATE RESPONDENTS ROSARIO JIMENEZ-CASTANEDA AND
SALUD JIMENEZ IS AN OPTION CONTRACT AND (2) WHETHER OR NOT THERE WAS A VALID SUSPENSION OF
PAYMENT OF THE PURCHASE PRICE BY SAID PETITIONER, AND THE LEGAL EFFECTS THEREOF ON THE
CONTRACTUAL RELATIONS OF THE PARTIES
FACTS:
HEREIN PRIVATE RESPONDENTS AND THEIR BROTHERS, JOSE AND DOMINADOR JIMENEZ, WERE
REGISTERED CO-OWNERS OF A PARCEL OF LAND IN BARRIO CULASI, LAS PINAS, MM. ON JULY 28, 1988,
JOSE AND DOMINADOR JIMENEZ SOLD THEIR SHARE CONSISTING OF HALF OF SAID PARCEL OF LAND,
SPECIFICALLY THE EASTERN PORTION THEREOF, TO HEREIN PETITIONER. THEREAFTER, PETITIONER
EXPRESSED INTEREST IN BUYING THE WESTERN PORTION OF THE PROPERTY FROM PRIVATE
RESPONDENTS. ACCORDINGLY, ON NOVEMBER 25, 1989, AN “EXCLUSIVE OPTION TO PURCHASE“ WAS
EXECUTED BETWEEN PETITIONER AND PRIVATE RESPONDENTS. ONE OF THE TERMS OF SAID CONTRACT
WAS THAT THE P50,000.00 WHICH WAS RECEIVED FROM ADELFA PROPERTIES, INC. AS AN OPTION MONEY
SHALL BE CREDITED AS PARTIAL PAYMENT UPON THE CONSUMMATION OF THE SALE AND THE
P2,806,150.00 BALANCE TO BE PAID ON OR BEFORE NOVEMBER 30, 1989. BEFORE PETITIONER COULD
MAKE PAYMENT, A CASE FOR ANNULMENT OF THE DEED OF SALE WAS FILED AGAINST ADELFA INC., JOSE
AND DOMINADOR JIMENEZ BY THE NEPHEWS AND NIECES OF PRIVATE RESPONDENTS. AS A CONSEQUENCE,
PETITIONER INFORMED PRIVATE RESPONDENTS THAT IT WOULD HOLD PAYMENT OF THE FULL PURCHASE
PRICE AND SUGGEST THAT PRIVATE RESPONDENTS SETTLE THE CASE WITH THEIR NEPHEWS AND NIECES.
RESPONDENT SALUD JIMENEZ REFUSED TO HEED THE SUGGESTION OF PETITIONER AND ATTRIBUTED THE
SUSPENSION OF PAYMENT OF THE PURCHASE PRICE TO “LACK OF WORD OF HONOR.“ ON DECEMBER 14,
1989, PRIVATE RESPONDENTS INFORMED THE PETITIONER’S COUNSEL THAT THEY WERE CANCELLING THE
TRANSACTION. ON FEBRUARY 23, 1990 THE RTC OF MAKATI DISMISSED THE CIVIL CASE AGAINST
PETITIONER. ON FEBRUARY 28, 1990, PRIVATE RESPONDENTS EXECUTED A DEED OF CONDITIONAL SALE
IN FAVOR OF EMYLENE CHUA OVER THE SAME PARCEL OF LAND.
ISSUE: WHETHER OR NOT THE “EXCLUSIVE OPTION TO PURCHASE“ EXECUTED BETWEEN PETITIONER
ADELFA PROPERTIES, INC AND PRIVATE RESPONDENTS IS AN OPTION CONTRACT.
ANSWER: YES
REASONING:
AN OPTION, AS USED IN THE LAW ON SALES, IS A CONTINUING OFFER OR CONTRACT BY WHICH THE
OWNER STIPULATES WITH ANOTHER THAT THE LATTER SHALL HAVE THE RIGHT TO BUY THE PROPERTY
AT A FIXED PRICE WITHIN A CERTAIN TIME, OR UNDER, OR IN COMPLIANCE WITH, CERTAIN TERMS AND
CONDITIONS, OR WHICH GIVES TO THE OWNER OF THE PROPERTY THE RIGHT TO SELL OR DEMAND A
SALE. IT IS ALSO SOMETIMES CALLED AN “UNACCEPTED OFFER.“ AN OPTION IS NOT OF ITSELF A
PURCHASE, BUT MERELY SECURES THE PRIVILEGE TO BUY. IT IS NOT A SALE OF PROPERTY BUT A SALE
OF THE RIGHT TO PURCHASE. IT IS SIMPLY A CONTRACT BY WHICH THE OWNER OF PROPERTY AGREES
WITH SMOTHER PERSON THAT HE SHALL HAVE THE RIGHT TO BUY HIS PROPERTY AT A FIXED PRICE
WITHIN A CERTAIN TIME. HE DOES NOT SELL HIS LAND HE DOES NOT THEN AGREE TO SELL IT BUT HE
DOES SELL SOMETHING, THAT IS, THE RIGHT OR PRIVILEGE TO BUY AT THE ELECTION OR OPTION OF
THE OTHER PARTY. ITS DISTINGUISHING CHARACTERISTIC IS THAT IT IMPOSES NO BINDING OBLIGATION ON
THE PERSON HOLDING THE OPTION, ASIDE FROM THE CONSIDERATION FOR THE OFFER. UNTIL
ACCEPTANCE, IT IS NOT, PROPERLY SPEAKING, A CONTRACT, AND DOES NOT VEST, TRANSFER, OR
AGREE TO TRANSFER, ANY TITLE TO, OR ANY INTEREST OR RIGHT IN THE SUBJECT MATTER, BUT IS
MERELY A CONTRACT BY WHICH THE OWNER OF PROPERTY GIVES THE OPTIONEE THE RIGHT OR
PRIVILEGE OF ACCEPTING THE OFFER AND BUYING THE PROPERTY ON CERTAIN TERMS.
ON THE OTHER HAND, A CONTRACT, LIKE A CONTRACT TO SELL, INVOLVES A MEETING OF MINDS
BETWEEN TWO PERSONS WHEREBY ONE BINDS HIMSELF, WITH RESPECT TO THE OTHER, TO GIVE
SOMETHING OR TO RENDER SOME SERVICE. CONTRACTS, IN GENERAL, ARE PERFECTED BY MERE
CONSENT, WHICH IS MANIFESTED BY THE MEETING OF THE OFFER AND THE ACCEPTANCE UPON THE
THING AND THE CAUSE WHICH ARE TO CONSTITUTE THE CONTRACT. THE OFFER MUST BE CERTAIN AND
THE ACCEPTANCE ABSOLUTE.
HOLDING: WHEREFORE, ON THE FOREGOING MODIFICATORY PREMISES, AND CONSIDERING THAT THE SAME
RESULT HAS BEEN REACHED BY RESPONDENT COURT OF APPEALS WITH RESPECT TO THE RELIEF
AWARDED TO PRIVATE RESPONDENTS BY THE COURT A QUO WHICH WE FIND TO BE CORRECT, ITS
ASSAILED JUDGMENT IN CA-G.R. CV NO. 34767 IS HEREBY AFFIRMED.
 ONG V BOGNALBAL
GR NO. 149140, SEPTEMBER 12, 2006

CHICO-NAZARIO, J:
PROCEDURAL HISTORY:
IN THIS SPECIAL CIVIL ACTION FOR CERTIORARI UNDER RULE 65 OF THE RULES OF COURT,
PETITIONER SEEKS THE NULLIFICATION OF A 22 MAY 2001 COURT OF APPEALS RESOLUTION DENYING HER
MOTION FOR RECONSIDERATION OF A 31 MARCH 2000 DECISION.
FACTS:
ON JANUARY 2, 1995, (HEREIN RESPONDENT) ERNESTO BOGNALBAL, AN ARCHITECT-CONTRACTOR
DOING BUSINESS UNDER THE NAME AND STYLE OF E.B. BOGNALBAL CONSTRUCTION, ENTERED INTO AN
"OWNER-CONTRACTOR AGREEMENT" WITH (HEREIN PETITIONER) VICTORIA ONG, A BUSINESSWOMAN, FOR
THE CONSTRUCTION OF A PROPOSED BOUTIQUE OWNED BY THE LATTER TO BE KNOWN AS LES GALERIES
DE PARIS LOCATED AT THE 3RD FLOOR OF THE SHANGRI-LA PLAZA, EPIFANIO DELOS SANTOS AVENUE
CORNER SHAW BOULEVARD, MANDALUYONG CITY (EXHIBITS "A" AND "1", PP. 100-102, IBID). THE
AGREEMENT PROVIDES THAT IN CONSIDERATION OF THE SUM OF TWO HUNDRED THOUSAND PESOS
(P200,000.00), THE CONTRACTOR AGREES TO FURNISH LABOR, TOOLS AND EQUIPMENT TO COMPLETE THE
WORK ON THE BOUTIQUE AS PER SPECIFICATION WITHIN FORTY-FIVE (45) DAYS EXCLUDING SUNDAYS
FROM THE DATE OF DELIVERY OF THE CONSTRUCTION MATERIALS. PAYMENT BY THE OWNER SHALL BE
MADE BY PROGRESS BILLING TO BE COLLECTED EVERY TWO (2) WEEKS BASED ON THE
ACCOMPLISHMENT OF WORK VALUE SUBMITTED BY THE CONTRACTOR TO THE OWNER AS CERTIFIED FOR
PAYMENT BY THE ARCHITECT ASSIGNED ON SITE. THE AGREEMENT LIKEWISE PROVIDES FOR A CHANGE
ORDER AS A RESULT OF FLUCTUATION IN THE COST OF LABOR. MOREOVER, SHOULD THE OWNER REQUIRE
THE CONTRACTOR TO PERFORM WORK OVER AND ABOVE THAT REQUIRED, THE ADDITIONAL COST SHALL
BE ADDED TO THE CONTRACT AMOUNT AND IF ORDERED TO OMIT WORK AS REQUIRED BY THEIR
AGREEMENT, THE COST OF WORK OMITTED SHALL BE DEDUCTED FROM THE CONTRACT AMOUNT.
ACTUAL WORK ON THE PROJECT COMMENCED ON JANUARY 19, 1995. FOR WORK ACCOMPLISHED DURING
THE PERIOD JANUARY 19 TO 28, 1995, (RESPONDENT BOGNALBAL) SUBMITTED AND WAS PAID HIS
PROGRESS BILLING NO. 1 IN THE SUM OF P35,950.00 EQUIVALENT TO 17.975% OF THE TOTAL JOB TO BE
PERFORMED (EXH. "E", P. 106, IBID). PARTIAL BILLING NOS. 2 AND 3 FOR THE PERIOD FROM JANUARY 29
TO FEBRUARY 15, 1995 AND FEBRUARY 16 TO MARCH 3, 1995 IN THE SUM OF P69,000.00 AND P41,500.00,
EQUIVALENT TO 34.65% AND 20.63% OF THE TOTAL JOB, RESPECTIVELY, WERE LIKEWISE MADE TO
RESPONDENT AND PAID FOR BY THE LATTER (EXHS. "F" AND "G", PP. 107-108, IBID.).
IT IS WITH RESPECT TO PROGRESS BILLING NO. 4 THAT THE PRESENT CONTROVERSY AROSE. WHEN
(RESPONDENT BOGNALBAL) SUBMITTED THE FOURTH PROGRESS BILLING ON MARCH 31, 1995 FOR THE
PERIOD COVERING MARCH 4 TO 18, 1995, IN THE SUM OF P30,950.00 EQUIVALENT TO 15.47% OF THE
TOTAL JOB (EXH. "B", P. 103, IBID.), (PETITIONER ONG) REFUSED TO PAY THE SAME. AS IN THE
PREVIOUS THREE BILLINGS, THE FOURTH BILLING WAS FIRST EVALUATED AND RECOMMENDED FOR
PAYMENT BY SUPERVISING ARCHITECT JOHN NOEL R. CANO, AN EMPLOYEE OF BALCE-SINDAC AND
ASSOCIATES, THE PRINCIPAL DESIGNER OF THE (PETITIONER ONG'S) BOUTIQUE (EXH. "H-1", P. 110, IBID.).
THE REASON FOR (PETITIONER ONG'S) REFUSAL TO PAY THE FOURTH (4TH) PROGRESS BILLING IS NOT
CLEAR ON THE RECORD. IT IS (RESPONDENT BOGNALBAL'S) CONTENTION THAT (PETITIONER ONG)
REFUSED TO PAY SINCE SHE WAS INSISTING THAT THE FLOORING, WHICH SHE ASKED TO BE CHANGED
FROM VINYL TILES TO KENZO FLOORING WHERE POLYURETHANE IS TO BE USED AS COATING, BE FIRST
COMPLETED WITHIN THREE (3) DAYS FROM APRIL 22, 1995. (RESPONDENT BOGNALBAL), HOWEVER,
INSISTED THAT THE SAME IS NOT POSSIBLE BECAUSE THE FLOOR NEEDED TO BE CURED FIRST TO
AVOID ADVERSE CHEMICAL REACTION OF THE POLYURETHANE ON THE COLOR OF THE FLOORING. DUE TO
THE INSISTENCE OF (PETITIONER ONG) THAT THE FLOORING BE FINISHED IN TIME FOR THE ARRIVAL OF
THE FURNITURE FROM ABROAD, (RESPONDENT BOGNALBAL) PROCEEDED WITH THE WORK BUT THE
RUSHED WORK RESULTED IN THE REDDISH REACTION OF THE POLYURETHANE ON THE FLOOR, WHICH WAS
NOT ACCEPTABLE TO RESPONDENT (TSN, MARCH 28, 1996, PP. 30-32; JUNE 21, 1996, PP. 15-18).
ON THE OTHER HAND, (PETITIONER ONG) CONTENDS THAT HER REFUSAL TO PAY WAS BECAUSE THE
FOURTH BILLING WAS ALLEGEDLY IN EXCESS AND OVER THE VALUE OF THE WORK ACCOMPLISHED
DURING THE PERIOD. TO SETTLE THE MATTER, THE PARTIES PURPORTEDLY MET WHEREBY (RESPONDENT
BOGNALBAL) SUPPOSEDLY AGREED TO FINISH THE KENZO FLOORING ON OR BEFORE APRIL 24, 1995
BEFORE (PETITIONER ONG) WOULD PAY THE FOURTH (4TH) PROGRESS BILLING. HOWEVER, INSTEAD OF
COMPLYING WITH HIS COMMITMENT, (RESPONDENT BOGNALBAL) ABANDONED THE PROJECT ON APRIL 24,
1995 WHEN IT BECAME APPARENT THAT HE COULD NOT COMPLETE THE KENZO FLOORING ON THE DATE
AGREED UPON.
DUE TO (PETITIONER ONG'S) CONTINUED REFUSAL TO PAY (RESPONDENT BOGNALBAL'S) FOURTH (4TH)
PROGRESS BILLING DESPITE WRITTEN DEMANDS FROM HIS COUNSEL (EXHS. "C" AND "D", PP. 104-105,
IBID), THE LATTER WAS CONSTRAINED TO FILE AN ACTION FOR SUM OF MONEY WITH DAMAGES WITH THE
METROPOLITAN TRIAL COURT (METC) OF CALOOCAN CITY.
THE COMPLAINT, WHICH WAS DOCKETED AS CIVIL CASE NO. 22143 AND RAFFLED TO BRANCH 49 OF THE
COURT, PRAYED FOR ACTUAL DAMAGES IN THE TOTAL SUM OF P50,450.00 REPRESENTING P30,950.00
(4TH PROGRESS BILLING), P16,000.00 ON THE CHANGE ORDER FROM VINYL TILES TO KENZO FLOORING
AND AN UNIDENTIFIED AMOUNT. IT LIKEWISE PRAYED FOR MORAL AND EXEMPLARY DAMAGES, AS WELL AS
ATTORNEY'S FEES.
IN HER ANSWER WITH COUNTERCLAIM, (PETITIONER ONG) REFUSED PAYMENT OF THE FOURTH (4TH)
PROGRESS BILLING SINCE (RESPONDENT BOGNALBAL) FAILED TO PERFORM WHAT WAS INCUMBENT UPON
HIM UNDER THEIR AGREEMENT, BUT INSTEAD ABANDONED THE JOB TO HER GREAT DAMAGE AND
PREJUDICE. AS TO THE P16,000.00 VALUE OF THE CHANGE ORDER, SHE ALLEGED THAT THE SAME WAS
PREMATURE SINCE SHE HAD NEVER RECEIVED ANY BILLING FOR SAID CHANGE ORDER DULY CERTIFIED
FOR PAYMENT AND APPROVED BY THE ARCHITECT ASSIGNED ON SITE. BESIDES, (PETITIONER ONG)
AVERRED THAT THE P16,000.00 BEING CHARGED BY (RESPONDENT BOGNALBAL) WAS GROSSLY
DISPROPORTIONATE WITH THE QUANTITY OF THE WORK ACTUALLY ACCOMPLISHED BY THE FORMER. BY
WAY OF COUNTERCLAIM, (PETITIONER ONG) PRAYED FOR ACTUAL DAMAGES BY REASON OF (RESPONDENT
BOGNALBAL'S) REFUSAL TO FINISH THE JOB AGREED UPON WHICH FORCED HER TO HIRE A NEW
CONTRACTOR TO COMPLETE THE SAME FOR WHICH SHE PAID THE SUM OF P78,000.00 AND FOR LOSS OF
BUSINESS OPPORTUNITY IN THE AMOUNT OF P50,000.00. SHE LIKEWISE PRAYED FOR MORAL, EXEMPLARY
AND LIQUIDATED DAMAGES, AS WELL AS ATTORNEY'S FEES.
AFTER TRIAL ON THE MERITS, THE (METC), IN A DECISION DATED JUNE 18, 1998, RULED IN FAVOR OF
(RESPONDENT BOGNALBAL,) AWARDING TO HIM THE SUM OF P30,950.00 REPRESENTING THE FOURTH
PROGRESS BILLING, P13,000.00 REPRESENTING THE VALUE OF THE ACCOMPLISHED WORK ON THE KENZO
FLOORING, P15,000.00 AS ATTORNEY'S FEES, P20,000.00 AND P25,000.00 AS MORAL AND EXEMPLARY
DAMAGES, RESPECTIVELY (P. 175, IBID.).
AGGRIEVED BY THE DECISION OF THE COURT, (PETITIONER ONG) ELEVATED THE CASE ON APPEAL TO
THE REGIONAL TRIAL COURT (RTC) OF CALOOCAN CITY. THE APPEAL WAS DOCKETED AS CIVIL CASE NO.
C-18466 AND RAFFLED TO BRANCH 126 THEREOF.
THE COURT A QUO, AFTER REQUIRING THE PARTIES TO SUBMIT THEIR RESPECTIVE MEMORANDA,
REVERSED AND SET ASIDE THE RULING OF THE MTC AND RENDERED JUDGMENT IN FAVOR OF
(PETITIONER ONG) IN A DECISION DATED FEBRUARY 18, 1999 (P. 407, IBID.). IT IS WORTHY TO NOTE THAT
ALTHOUGH THE RTC RULED IN FAVOR OF (PETITIONER ONG), IT DID NOT SPECIFY THE RELIEF GRANTED
TO HER IN THE DISPOSITIVE PORTION OF ITS DECISION.
ISSUE: WHETHER OR NOT A PETITION FOR CERTIORARI UNDER RULE 65 IS THE PROPER REMEDY?
ANSWER: NO.
REASONING: IF THE ALLEGEDLY ERRONEOUS FINDINGS OF FACT BY THE COURT OF APPEALS AMOUNTS TO
GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OF OR EXCESS OF JURISDICTION, THE PROPER
REMEDY WOULD INDEED BE A PETITION FOR CERTIORARI UNDER RULE 65. HOWEVER, IF THE ALLEGEDLY
ERRONEOUS FINDINGS OF FACT CONSTITUTE ONLY A MISTAKE OF JUDGMENT, THE PROPER REMEDY IS A
PETITION FOR REVIEW ON CERTIORARI UNDER RULE 45. SINCE THE PETITION FILED IN THE CASE AT BAR
IS ONE UNDER RULE 65, WE WOULD BE CONSTRAINED TO DISMISS THE SAME IF WE FIND A MERE ERROR
OF JUDGMENT.
HOLDING: WHEREFORE, THE DECISION OF THE COURT OF APPEALS REINSTATING THE DECISION OF THE
METROPOLITAN TRIAL COURT HOLDING PETITIONER VICTORIA ONG LIABLE FOR DAMAGES IS AFFIRMED.
THE INSTANT PETITION FOR CERTIORARI IS HEREBY DISMISSED FOR LACK OF MERIT. COSTS AGAINST
PETITIONER.