15 Uy Vs Public Estates Authority PDF

Republic of the Philippines
Supreme Court
Manila
SPECIAL THIRD DIVISION
ELPIDIO S. UY, doing business

G.R. Nos. 147925-26
under
the
name
and
style
of EDISONDEVELOPMENT & CONSTRUCTION, Present:
Petitioner,
CORONA, C.J.*
VELASCO, JR.,**
NACHURA,
- versus Chairperson,
BRION,***and
PERALTA, JJ.
PUBLIC ESTATES AUTHORITY ,
Respondent.
Promulgated:
July 7, 2010
x---------------------------------------------------------------------------------x
RESOLUTION
NACHURA, J.:
Before us are (i) the Motion for Partial Reconsideration filed by petitioner
Elpidio S. Uy (Uy), doing business under the name and style of Edison Development
& Construction (EDC), and (ii) the Motion for Reconsideration filed by respondent
Public Estates Authority (PEA) of our June 8, 2009 Decision, the fallo of which reads:
WHEREFORE, the petition is PARTIALLY GRANTED. The assailed
Joint Decision and Joint Resolution of the Court of Appeals in CA-G.R.
SP
Nos.
59308
and
59849
are AFFIRMEDwith MODIFICATIONS. Respondent Public Estates
Authority is ordered to pay Elpidio S. Uy, doing business under the name
and style Edison Development and Construction,P55,680,492.38 for
equipment rentals on standby; P2,275,721.00 for the cost of idle
manpower; and P6,050,165.05 for the construction of the nursery shade
net area; plus interest at 6% per annum to be computed from the date
of the filing of the complaint until finality of this Decision and 12% per
annum thereafter until full payment. Respondent PEA is further ordered
to pay petitioner Uy 10% of the total award as attorneys fees.
SO ORDERED.[1]
Uy seeks partial reconsideration of our Decision. He argues that:
I
x x x THE HONORABLE COURT ERRED IN THE COMPUTATION OF THE
DAMAGES DUE THE PETITIONER FOR THE STANDBY EQUIPMENT COST.
II
x x x PETITIONER SHOULD BE REIMBURSED FOR COSTS INCURRED FOR
ADDITIONAL HAULING DISTANCE OF TOPSOIL ALSO BECAUSE THE
EVIDENCE ON RECORD CONFIRMS THE EXISTENCE OF RESPONDENT
PEAS WRITTEN CONSENT, AND THE FACT THAT IT IS INDESPENSABLE
TO COMPLETING THE PROJECT. WITHOUT SUCH ASSURANCE OF
REIMBURSEMENT, PETITIONER WOULD NOT HAVE TAKEN SUCH
PRUDENT ACTION.
III
x x x PETITIONER SHOULD BE ALLOWED TO RECOVER THE COSTS HE
INCURRED FOR THE MOBILIZATION OF WATER TRUCKS ALSO BECAUSE
RESPONDENT BREACHED ITS OBLIGATIONS UNDER THE CONTRACT.
IV
WITH REGARD TO THE COURT OF APPEALS ILLEGAL INJUNCTION
PREVENTING PETITIONER FROM RECOVERING HIS CLAIMS AGAINST
RESPONDENT PEA IN CIAC CASE NO. 03-2001, THIS SHOULD HAVE
BEEN LIFTED SINCE IT INVOLVES CLAIMS SEPARATE AND DISTINCT
FROM THE CASE A QUO.[2]
PEA, on the other hand, assails the Decision on the following grounds:
I.
THE FACTUAL FINDINGS AND CONCLUSIONS OF THE CONSTRUCTION
INDUSTRY ARBITRATION COMMISSION (CIAC) INSOFAR AS THE
ARBITRAL AWARD TO PETITIONER IS CONCERNED, WHICH THE COURT
OF APPEALS AND THE FIRST DIVISION OF THIS HONORABLE COURT

AFFIRMED, HAS LONG BECOME FINAL AND EXECUTORY.
II.
THE CIAC ARBITRAL AWARD HAD ALREADY BEEN IMPLEMENTED UNDER
WRIT OF EXECUTION DATED 19 SEPTEMBER 2000, WRIT OF
EXECUTION DATED 31 AUGUST 2001 AND SUPPLEMENTAL WRIT OF
EXECUTION DATED 10 APRIL 2002.[3]
We will deal first with Uys motion.
Uy objects to the factor rate used in the computation of the award for standby
equipment costs. He points out that the actual number of equipment deployed and
which remained on standby, occasioned by the delay in delivery of work areas, has
not been considered in the computation. The Association of Carriers and Equipment
Lessors (ACEL) rate or the factor rate used was only the total average rate, without
regard to the actual number of equipment deployed. He, therefore, insists that an
increase in the award is in order.
We find Uys argument on this point meritorious; and this Court is swayed to
modify the formula used in the computation of the award.
The Certification,[4] dated December 6, 1996, shows that EDC mobilized the
following equipment for the Heritage Park Project, viz.:
Description
Number
Road Grader
Pay Loader
Dump Trucks
10
Tractor with attachments
Backhoe
Delivery Trucks
Rolo-tiller
Concrete Mixer
Bar Cutter
Welding Machine
Roller
Bulldozer
Concrete Cutter
Plate Compactor
Compressor/Jack Hammer
Genset 5KVA
Electric drill/ Holesaw
These equipment remained in the project site on the days that EDC was waiting
for the turnover of additional work areas.[5] Thus, we agree with Uy that the actual
number of equipment mobilized should be included in computing the award for
standby equipment cost. The award must, therefore, be modified using the following
formula:
Actual period of delay (18.2 months) x average rate per ACEL x number
of equipment
However, we cannot simply accept in full Uys claim that he is entitled

to P71,009,557.95 as standby equipment cost. The records show that not all of the
equipment were operational; several were under repair.[6] Accordingly, we find it
necessary to remand the records of the case to the Construction Industry Arbitration
Commission (CIAC), which decided the case in the first instance, for the proper
computation of the award of standby equipment cost based on the foregoing formula.
On the claim for costs for additional hauling distance of topsoil and for mobilization
of water truck, we maintain our ruling that a written approval of PEAs general
manager was indispensable before the claim for additional cost can be granted. In
this case, the additional costs were incurred without the written approval of PEA. The
denial of Uys claims was, therefore, appropriate.
We cannot sustain this claim that is premised mainly on the principle of unjust
enrichment. We stress that the principle of unjust enrichment cannot be validly
invoked by a party who, through his own act or omission, took the risk of being
denied payment for additional costs by not giving the other party prior notice of such
costs and/or by not securing their written consent thereto, as required by law and
their contract.[7]
Similarly, we find no cogent reason to lift the injunction issued in CIAC Case
No. 03-2001. We are not persuaded by Uys argument that the claims under CIAC
Case No. 03-2001 are different from his claims in CIAC Case No. 02-2000. As we
explained in our Decision, there is only one cause of action running through Uys
undertakings the violation of his alleged right under the Landscaping and
Construction Agreement. Therefore, the landscaping agreement is indispensable in
the prosecution of his claims in both CIAC Cases No. 02-2000 and No. 03-2001. We
reiterate that a party, either by varying the form or action or by bringing forward in
a second case additional parties or arguments, cannot escape the effects of res
judicata when the facts remain the same, at least where such new parties or matter
could have been impleaded or pleaded in the prior action.
In fine, except for the claim for standby equipment costs, this Court finds no
cogent reason to depart from our June 8, 2009 Decision.
We now go to PEAs motion.
PEA insists that our Decision in this case transgresses the principle of res
judicata. It asserts that the propriety of Uys monetary claims against PEA had already
been considered and passed upon by this Court in G.R. Nos. 147933-34.
The argument is specious.
In G.R. Nos. 147933-34, this Court was very explicit in its declaration that its
Decision was independent of, and without prejudice to, the appeal filed by Uy, viz.:
However, in order not to prejudice the deliberations of the Courts
Second Division in G.R. Nos. 147925-26, it should be stated that the
findings made in this case, especially as regards the correctness of the
findings of the CIAC, are limited to the arbitral awards granted to
respondent Elpidio S. Uy and to the denial of the counterclaims of
petitioner Public Estates Authority. Our decision in this case does not
affect the other claims of respondent Uy which were not granted by the
CIAC in its questioned decision, the merits of which were not submitted
to us for determination in the instant petition.[8]
Indubitably, this Courts Decision in G.R. Nos. 147933-34 will not bar the grant of
additional award to Uy.
WHEREFORE, Uys Motion for Partial Reconsideration is PARTLY GRANTED. PEAs

Motion for Reconsideration, on the other hand, is DENIED with FINALITY. The
assailed Decision dated June 8, 2009 is AFFIRMED with MODIFICATION as to the
award of standby equipment cost. The case is hereby REMANDED to the
Construction Industry Arbitration Commission solely for the purpose of computing
the exact amount of standby equipment cost pursuant to the formula herein
specified. The CIAC isDIRECTED to compute the award and effect payment thereof
within thirty (30) days from receipt of the records of this case.
No further pleadings will be entertained.
SO ORDERED.
ANTONIO EDUARDO B. NACHURA
Associate Justice
WE CONCUR:
RENATO C. CORONA
Chief Justice
PRESBITERO J. VELASCO, JR.

Associate Justice
ARTURO D. BRION
Associate Justice
DIOSDADO M. PERALTA
Associate Justice
ATTESTATION
I attest that the conclusions in the above Resolution had been reached in consultation
before the case was assigned to the writer of the opinion of the Courts Division.
ANTONIO EDUARDO B. NACHURA

Chairperson, Special Third Division
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution and the Division Chairperson's
Attestation, I certify that the conclusions in the above Resolution had been reached
in consultation before the case was assigned to the writer of the opinion of the Courts
Division.
RENATO C. CORONA
Chief Justice
Designated member vice Associate Justice Minita V. Chico-Nazario (ret.) per Special
Order No. 631 dated April 29, 2009.
**
Designated member vice Associate Justice Conchita Carpio Morales per Special
Order No. 649 dated May 25, 2009.
***
Designated member vice Associate Justice Consuelo Ynares-Santiago (ret.) per
Raffle dated October 21, 2009.
[1]
Rollo, p. 995.
[2]
Id. at 999.
[3]
Id. at 1047.
[4]
Exhibit J; Folder No. 2, CIAC Case No. 02-2002.
[5]
See Exhibits F, H-1 to H-29, I; id.
[6]
See Exhibit C-1, id.
[7]
Powton Conglomerate, Inc. v. Agcolicol, 448 Phil. 643 (2003).
*
[8]
Public Estates Authority v. Uy, 423 Phil. 407, 419 (2001).

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Republic of the Philippines

SPECIAL THIRD DIVISION

ELPIDIO S. UY, doing business

OF APPEALS AND THE FIRST DIVISION OF THIS HONORABLE COURT

Tractor with attachments

Electric drill/ Holesaw

However, we cannot simply accept in full Uys claim that he is entitled

WHEREFORE, Uys Motion for Partial Reconsideration is PARTLY GRANTED. PEAs

PRESBITERO J. VELASCO, JR.

ANTONIO EDUARDO B. NACHURA

Public Estates Authority v. Uy, 423 Phil. 407, 419 (2001).

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