185198470-Licomcen-vs-Foundation-Specialists.doc

Republic of the Philippines Supreme Court Baguio City

THIRD DIVISION

ICO!C"N INCORPOR#T"D$   Petitioner,

 ('R' No' )*+,--

- versus -

%O&ND#TION SP"CI#ISTS$ INC'$ Respondent. -------------------------------------------%O&ND#TION SP"CI#ISTS$ INC'$   Petitioner, ('R' No' )*.*+/ - versus -

Present: CARPIO MORALES, MORALES, J., Chairperson,   BRION,   BERSAMIN, VILLARAMA, JR., and and   SERENO, JJ .

ICO!C"N INCORPOR#T"D$ Respondent.

Prou!"ated:  Apri! #, $%&& $%&& 0--------------------------------------------------------------------------------------------------------------0 D"CISIO N BRION$ J ':

TH" %#CTS

'(e petitioner, LICOMCEN In)orporated *LICOMCEN  *LICOMCEN +, +, is a doesti) )orporation en"a"ed in t(e usiness o operatin" s(oppin" a!!s in t(e )ountr. In Mar)( &//0, t(e Cit 1overnent o Le"aspi a2arded to LICOMCEN, ater a pu!i) iddin", a !ease )ontra)t over a !ot !o)ated in t(e )entra! usiness distri)t o t(e )it. )it. 3nder t(e )ontra)t, LICOMCEN 2as o!i"ed to inan)e t(e )onstru)tion o a )oer)ia! )op!e45a!! to e 6no2n as t(e LCC Citia!! * Citimall +. +. It 2as a!so "ranted t(e ri"(t to operate and ana"e Citia!! or 7% ears, ears, and 2as, t(ereater, re8uired to turn over t(e o2ners(ip and operation to t(e Cit 1overnent.9& ;or t(e Citia!! proo)uents  and 1enera! Conditions o Contra)t Contra)t97 *GCC   *GCC + onSepteer &, &//0. Iediate! t(ereater, ;SI pur)(ased t(e ateria!s needed or t(e Citia! ! 9? proISP3'ES AN> ARBI'RA'ION S(ou!d any 1ispute of any :in1 arise et2een t(e LICOMCEN INCORPORA'E> and t(e Contra)tor  9reerrin" to ;SI or t(e En"ineer 9reerrin" to ESCA and t(e Contra)tor in connection ;ith$ or arising out of the e0ecution of the Hs de)ision on t(e dispute,

eit(er part does not oi)ia!! "ive noti)e to )ontest su)( de)ision t(rou"( aritration, t(e said de)ision s(a!! reain ina! and indin". Fo2ever, s(ou!d an part, 2it(in t(irt *=%+ das ro re)eipt o t(e LICOMCEN, INCORPORA'E>Hs de)ision, )ontest said de)ision, t(e dispute s(a!! e suitted or aritration under t(e Constru)tion Industr Aritration La2, E4e)utive Order &%%@. '(e aritrators appointed under said ru!es and re"u!ations s(a!! (ave u!! po2er to open up, revise and revie2 an de)ision, opinion, dire)tion, )ertii)ate or va!uation o t(e LICOMCEN, INCORPORA'E>. Neit(er part s(a!! e !iited to t(e eviden)e or ar"uents put eore t(e LICOMCEN, INCORPORA'E> or t(e purpose o otainin" (is said de)ision. No de)ision "iven  t(e LICOMCEN, INCORPORA'E> s(a!! dis8ua!i (i ro ein" )a!!ed as a 2itness and "ivin" eviden)e in t(e aritration. It is understood t(at t(e o!i"ations o t(e LICOMCEN, INCORPORA'E>, t(e En"ineer and t(e Contra)tor s(a!! not e a!tered  reason o t(e aritration ein" )ondu)ted durin" t(e pro"ress o t(e Gor6s.9$? LICOMCEN posits t(at on! disputes in )onne)tion 2it( or arisin" out o t(e e4e)ution o t(e Gor6s are su>>>>'''

P 0//,7%?.@=

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Citin" 1C-#$*$+ o t(e 1CC, LICOMCEN sas it s(a!! e !ia!e to pa ;SI 9t(e )ost o ateria!s or "oods reasonably or1ere1 for the Permanent or Temporary e)eer &//0 to suspend t(e 2or6s, ;SI pro)eeded 2it( t(e de!iver o t(e stee! ars in Januar &//@. LICOMCEN de)!ared t(at it s(ou!d not e ade to pa  or )osts t(at ;SI 2i!!in"! in)urred or itse!. 9=$  Assuin" t(at LICOMCEN is !ia!e or t(e )osts o t(e stee! ars, it ar"ues t(at its !iai!it s(ou!d e iniied  t(e a)t t(at ;SI in)urred no a)tua! daa"e ro t(e pur)(ase and de!iver o t(e stee! ars. >urin" t(e suspension o t(e 2or6s, ;SI so!d &$7,%%% 6" o stee! ars or P7%%,%%%.%% to a t(ird person *a )ertain Raon uin8ui!eria+. LICOMCEN a!!e"es t(at ;SI so!d t(e stee! ars or a ridi)u!ous! !o2 pri)e o P #.%%56i!o, 2(en t(e prevai!in" rate 2as P$%.%%56i!o. '(e sa!e )ou!d (ave "arnered a (i"(er pri)e t(at 2ou!d oset LICOMCENDs !iai!it. LICOMCEN a!so 2ants ;SI to a))ount or and de!iver to it t(e reainin" 0## etri) tons o stee! ars not

so!d. Ot(er2ise, ;SI 2ou!d e une)eer &?, &//0 and Januar ?, &//@ !etters K das ater t(e instru)tion to suspend t(e 2or6s. A!so, t(e sae stipu!ation t(at aut(ories LICOMCEN to suspend t(e 2or6s a!!o2s t(e e4tension o t(e period to )op!ete t(e 2or6s. '(e re!evant portion o

1C-=@ states: In )ase o tota! suspension 4 44 and t(e )ause o 2(i)( is not due to an au!t o t(e Contra)tor 9;SI, the elapse1 time bet;een the effecti5e or1er for suspen1ing ;or: an1 the or1er to resume ;or: shall be allo;e1 the Contractor by a14usting the time allo;e1 for his e0ecution of the Contract 2i!! deterine t(e reasona!eness o su)( e4penses.  The Contractor 7%SI8 shall ha5e no claim for anticipate1 profits on the ;or: thus terminate1$ nor any other claim$  e4)ept or t(e 2or6 a)tua!! perored at t(e tie o )op!ete dis)ontinuan)e, in)!udin" an variations aut(oried  t(e LICOMCEN, INCORPORA'E>5En"ineer to e done. '(e pro(iition, ;SI posits, app!ies on! 2(ere t(e )ontra)t 2as proper! and !a2u!! terinated, 2(i)( 2as not t(e )ase at ar. ;SI a!so too6 pains in dierentiatin" its )!ai or unrea!ied proit ro t(e pro(iited )!ai or anti)ipated proits supposed!, unrea!ied proit is one t(at is ui!t-in in t(e )ontra)t pri)e, 2(i!e anti)ipated proit is not. Ge ai! to see t(e distin)tion, )onsiderin" t(at t(e )ontra)t itse! neit(er deined nor dierentiated t(e t2o ters. 9A )ontra)t ust e interpreted ro t(e !an"ua"e o t(e )ontra)t itse!, a))ordin" to its p!ain and ordinar eanin". 9?? I t(e ters o a )ontra)t are )!ear and !eave no dout upon t(e intention o t(e )ontra)tin" parties, t(e !itera! eanin" o t(e stipu!ations s(a!! )ontro!. 9?0

Nonet(e!ess, on a))ount o our ear!ier dis)ussion o LICOMCENDs ai!ure to oserve t(e proper pro)edure in terinatin" t(e )ontra)t  de)!arin" t(at it 2as ere! indeinite! suspended, 2e dee t(at ;SI is entit!ed to t(e paent o noina! daa"es. Noina! daa"es a e a2arded to a p!ainti 2(ose ri"(t (as een vio!ated or invaded  t(e deendant, or t(e purpose o  vindi)atin" or re)o"niin" t(at ri"(t, and not or indeniin" t(e p!ainti or an !oss suered  (i. 9?@ Its a2ard is, t(us, not or t(e purpose o indenii)ation or a !oss ut or t(e re)o"nition and vindi)ation o a ri"(t. A vio!ation o t(e p!aintiDs ri"(t, even i on! te)(ni)a!, is sui)ient to support an a2ard o noina! daa"es. 9?/ ;SI is entit!ed to re)over t(e aount o P&%%,%%%.%% as noina! daa"es. #he lia'ilit for costs of ar'itration 3nder t(e partiesD 'ers o Reeren)e, e4e)uted eore t(e CIAC, t(e )osts o aritration s(a!! e e8ua!! divided et2een t(e, suA'ION SPECIALIS'S, INC., do)6eted as 1.R. No. &?/?0@, are D"NI"D. '(e Noveer $=, $%%# >e)ision o t(e Court o Appea!s in CA-1.R. SP No. 0@$&@ is !ODI%I"D to inclu1e the a;ar1 of nominal 1amages in avor o ;O3N>A'ION SPECIALIS'S, INC. '(us, LICOMCEN INCORPORA'E> is ordered to pa ;O3N>A'ION SPECIALIS'S, INC. t(e o!!o2in" aounts: a. . ).

P&,$?#,#%#.&$ or unpaid a!an)e on ;O3N>A'ION SPECIALIS'S, INC. i!!in"s P7,?/#,/=/.@0 or ateria! )osts at site and P&%%,%%%.%% or noina! daa"es.

LICOMCEN INCORPORA'E> is a!so ordered to pa t(e )osts o aritration. No )osts. SO ORD"R"D'