396 Phil. 525
PARDO, J.:
"WHEREFORE, foregoing considered, the appealed decision and order are hereby REVERESED and SET ASIDE. A new one is rendered as follows:We shall refer to the parties for brevity as Creosoting and Pacwood.
"1. Ordering defendants-appellees to pay plaintiff-appellant their unpaid obligation in the amount of P406,866.04 as of November 10, 1984 plus 12% interest per annum until fully paid.
"2. Ordering plaintiff-appellant to pay defendants-appellees P10,000.00 attorney's fees.
"3. No pronouncement as to cost.
"SO ORDERED."[1]
"On March 11, 1982, defendant Philippine Creosoting Corporation (defendant PCC, for brevity) ordered from plaintiff treated creosoted wood poles pursuant to Purchase Order No. 2395 signed by defendant corporation's president, defendant Monina Nepomuceno.On March 16, 1992, the trial court rendered a decision, the dispositive portion of which reads as follows:
"Because of the failure of plaintiff to complete the delivery of the ordered items, defendants cancelled Purchase Order No. 2395.
"On March 8, 1993, defendants ordered from plaintiff the delivery of 145 pcs. of creosoted wood poles. On different occasions, plaintiff delivered all the ordered items.
"On March 20, 1984, defendants through a letter called the attention of plaintiff regarding the alleged discrepancy of defendant PCC's account as reflected in plaintiff's book which stood at P988,611.16 and as reflected in defendant PCC's book which stood at P537,579.42. Defendants explained that the discrepancy was the result of the failure of the plaintiff to deduct the 20% discount given by plaintiff to defendants.
"On July 18, 1984, plaintiff sent defendants a letter explaining that the ordered items were priced at P2,731.55 each and no 20% discount was granted to defendants. Plaintiff demanded payment of the outstanding balance in the amount of P406,866.04.
"Defendants however refused to pay.
"On account of said refusal, plaintiff filed a civil complaint against defendants for the collection of P406,866.04 with prayer for the Issuance of Writ of Attachment.
"Plaintiff insisted therein that the price for each creosoted wood pole is P2,731.55 and that no 20% discount was ever granted to defendants.
"Defendants insisted that they were given a 20% discount by plaintiff; that it would be illogical for them to agree to purchase the pole at P2,731.55 each because at said price, they would be operating in a losing scheme; that if computed properly, they have already paid their obligation.
"On December 5, 1984, the trial court issued a writ of attachment ordering the Sheriff of Makati to attach whatever properties of the defendant PCC equivalent to the amount of P406,866.04. Plaintiff, for the same amount, posted the corresponding bond.
"On December 17, 1984, the 8-toner FUSO crane of defendant PCC was attached.
"After trial on the merits, the assailed decision was rendered. Thus, this appeal."[2]
"WHEREFORE, in view of the foregoing, the Court hereby renders judgment in favor of the defendants Philippine Creosoting Corporation, Monina Realty Corporation, and spouses Peter G. Nepomuceno and Monina B. Nepomuceno and against the plaintiff Pacwood, Incorporated, dismissing the instant complaint; favorable judgment is hereby rendered relative to defendants' counterclaim and ordering, therefore, plaintiff to pay:On April 8, 1992, Creosoting filed with the trial court a motion for reconsideration.[4]
"1) Defendants by way of attorney's fees, in the sum of Fifty Thousand Pesos (P50,000.00);
"2) Defendant Molina Nepomuceno by way of moral damages in the sum of Fifty Thousand Pesos (P50,000.00); and
"3) The costs of the suit.
"SO ORDERED."[3]
"WHEREFORE, premises considered, the Motion for Reconsideration is, therefore, granted. The decision of this Court dated March 16, 1992 is hereby amended by ordering plaintiff, in addition to its paying moral damages and attorney's fees to the defendant, to also:On April 15, 1995, Pacwood appealed to the Court of Appeals.[6]
"1. Return to defendant Philippine Creosoting Corporation the 8-toner Fuso Mobile Crane immediately;
"2. In case of failure to so deliver the aforesaid crane to the defendant, plaintiff is ordered to pay defendant the amount of P500,000.00 as reasonable value of said crane and to earn interest at six per cent (6%) per annum from January 17, 1984 until fully paid; and
"3. To compensate said defendant for the loss of the use of the aforesaid crane from April, 1984 up to the present time in the amount of P300,000.00.
"SO ORDERED."[5]
"x x xAt a conciliation meeting held in April 1984, at Red Ribbon in Greenhills between Pacwood's Cesar Ocampo and Creosoting's Monina Nepomuceno, they resolved the differences between them and Creosoting gave Pacwood the amount of P225,000 which is equivalent to US$10,000.00 in full payment of its account. Repudiating the agreement reached at the Red Ribbon meeting, on November 22, 1984, Pacwood instituted action in the Regional Trial Court, Makati, for collection.[12]
P351,228.29 "Add: Interest of 14%/month . . . . . 20,498.12Penalty of 2%/month . . . . . 35,139.63 P406,866.04"[11]
Creosoting, however, refused to pay.