531 Phil. 529
YNARES-SANTIAGO, J.:
WHEREFORE, judgment is rendered in favor of [Matela] and against the [spouses Yao] ordering the latter to pay the former the sum of P741,428.00 plus legal rate of interest from the filing of the Complaint until fully paid and P50,000.00 as and by way of attorney's fees and to pay the costs.The trial court anchored its decision on the following findings of facts:
SO ORDERED.[7]
Defendant spouses engaged the professional services of the plaintiff on March 30, 1997 to manage and supervise the construction of their two unit townhouses in Makati City at the agreed construction cost of P5,090,560.00. The construction started in the first week of April, 1997 and was completed by the plaintiff in April, 1998.The Court of Appeals affirmed the decision of the lower court but modified the amount of actual damages to P391,582.00. The dispositive portion of the decision reads:
Close scrutiny of the evidence reveals that contrary to the allegation of the defendant spouses the construction of the two unit townhouses x x x were completed by the plaintiff. This is shown by the fact that the Building Official of Makati City, after inspection of the construction thereof, issued, the Evaluation Sheet Occupancy Permit (Exhs. "E" and "E-1"), Certificate of Completion (Exh. "F"), Certificate of Occupancy (Exh. "G") and Progress Flow Sheet of Occupancy Permit (Exh. "G-1").
It appears from these documents that the construction was completed on April 5, 1998 (Exh. "F") and that after inspection the same was found to have been done in accordance with its plans and specifications (Exh. "G").
If there (sic) defects were found all over the two unit townhouses, the Building Official of Makati City would not have issued the said documents, which are presumed to have been executed in due course and good faith.[8]
WHEREFORE, premises considered, the decision of the Regional Trial Court of Las Piñas City, Branch 275, in Civil Case No. 98-0263 is hereby MODIFIED in that the [spouses Yao] are hereby ordered to pay actual damages of Three Hundred Ninety One Thousand Five Hundred Eighty Two Pesos (P 391,582.00). The decision of the Regional Trial Court of Las Piñas City, Branch 275, dated 1 April 2002 in Civil Case No. 98-0263 is hereby AFFIRMED in all other aspect.In affirming the findings of the court a quo, the Court of Appeals declared that:
SO ORDERED.[9]
As to the second assigned error, defendants-appellants claimed that plaintiff-appellee failed to finish the project within the agreed one hundred eighty (180) days. They pointed out that one hundred eighty (180) days from April 1997 ended on October 1997, however, the units were turned over only in April 1998.Hence these consolidated petitions.
The Court does not find any merit in this argument either. Any delay in the delivery is cured by acceptance of the thing after delay incurred. (See: Tayong v. CA, 219 SCRA 480, [1993]). In the present case, defendants-appellants do not deny they took over the townhouse units and have even sold the same. (See: Records, p. 363)[10]
WHETHER OR NOT [MATELA] IS ENTITLED TO THE ADDITIONAL CONSTRUCTION COST.[11]In G.R. No. 167767, the issue raised by the spouses Yao is:
WHETHER OR NOT THE DECISION OF THE COURT OF APPEALS IN NOT DISMISSING THE COMPLAINT [OF MATELA] AND NOT AWARDING THE COUNTER CLAIM [OF THE SPOUSES YAO] IS IN ACCORDANCE WITH LAW AND JURISPRUDENCE.[12]Matela claims that although the spouses Yao did not expressly admit their obligation as regards the additional construction cost of P300,000.00, they impliedly admitted the same as evidenced by the testimony of Jeanette Yao before the court a quo.[13]
Reciprocal obligations are those which are created or established at the same time, out of the same cause, and which result in mutual relationships of creditor and debtor between the parties. These obligations are conditional in the sense that the fulfillment of an obligation by one party depends upon the fulfillment of the obligation by the other. Thus, in a contract of sale of an automobile for P54,000. The vendor is obliged to deliver the automobile to the vendee, while the vendee is obliged to pay the price of P54,000 to the vendor. It is clear that the vendor will not deliver the automobile to the vendee unless the latter pay the price, while the vendee will not pay the price to the vendor unless the latter will deliver the automobile. Hence, in reciprocal obligations, the general rule is that fulfillment by both parties should be simultaneous or at the same time.Both the trial court and the Court of Appeals found that Matela's "delivery" of the project constitutes a faithful discharge of his duties. We find otherwise. Our evaluation of the records reveal that Matela failed to comply with his obligation to construct the townhouses based on the agreed specifications. As such, he cannot be discharged from his obligations by mere delivery of the same to the spouses Yao.
The rule then is that in reciprocal obligations, one party incurs in delay from the moment the other party fulfills his obligation, while he himself does not comply or is not ready to comply in a proper manner with what is incumbent upon him. If neither party complies or is ready to comply with what is incumbent upon him, the default of one compensates for the default of the other. In such case, there can be no legal delay. These rules may be illustrated by the following example: A sold his automobile to B for P30,000. They agreed that delivery and payment shall be made on the 15th of November 1980. On that date, A was not ready to deliver the automobile, neither was B ready to pay. In such case, neither party has incurred in delay. If A, however, delivered or was ready to deliver the automobile, but B did not pay or was not ready to pay, then B is said to have incurred in delay.[16]
D. CARPENTRY WORKSContrary to the foregoing, the photographs offered by the spouses Yao as exhibits showed unfinished and uneven ceilings, rotten door jambs and door posts, unfinished wooden partitions and unhinged and unfinished doors.[19]
Lumber – This shall be of approved quality, well-seasoned, thoroughly dry, free from large, loose and unsound knots, saps, shakes and other imperfections impairing its durability, strength and appearance.
All roof trusses shall be of Apitong, conventional fabrication using wooden plates and machine bolts.
Purlins shall be 2x3 (commercial size) apitong or equivalent spaced at 0.60 m. o.c.[17]
x x x x
All wooden partitions indicated in the drawing shall be double faced ¼" thk. ordinary plywood nailed to 2x3 (commercial size) tanguile spaced at 0.60 m. o.c. bothways (wherever available).
The ceiling shall be of 3/16" thk plywood (class C) with 2x2 ceiling joist spaced at 0.60 m. o.c.
Door jambs shall be of standard type from 2/5 K.D. tanguile or equivalent.[18]
The Contractor shall furnish all materials, (or otherwise specified) labor and other services and perform all operations necessary for the complete installation of the Electrical System for the Project in accordance with the drawings and specifications. All electrical work shall be done under the direct supervision of a licensed Electrical Engineer. The Electrical Contractor shall secure the required Electrical Wiring Permit and Certificate of Electrical Inspection and pay the corresponding permit fees. All wiring in ceiling and double walls shall be Neltex Schedule 40 uPVC conduits or equivalent. All installation on concrete shall be in rigid conduit pipes.[20]Again, based on the photographs presented as evidence, we find that there were unfinished electrical conduits, electrical outlets with loose wirings and outlets with exposed wires.[21]
Furnishing and installation of conduits, boxes, wire gutters, fittings, cabinets, wireways, manholes and covers, supports and accessories for:
- Lighting system
- Convenience Outlets and other Special Purpose Outlets
- Sub-Feeders/Homeruns from Lighting Panels to Lighting Circuits as indicated on the plans
- Feeders to all Lighting Panels as indicated on plans.
- Main Distribution Panel (MDP)
- Service Entrance from source of Power to MDP
- Necessary Concrete Pedestals
- Telephone System
- Intercom System
We cannot rely on the Building Permit,[32] Certificate of Completion[33] and Certificate of Occupancy[34] to prove the project's completion. While it is true that under the Rules of Court, the issuance of the foregoing documents enjoy the presumption of regularity, however, it is only a disputable presumption, which may be overcome by other evidence.
Atty. De Asa, Sr.: Now, you have read Exhibit "H" and Exhibit "3", I supposed and you understood its contents, isn't it? Jeanette Yao: Yes sir. Q: Now, on page 2 of Exhibit "3" also Exhibit "H" refers to a paragraph which states to carpentry works, which was bracketed and marked by this representation as Exhibit "3-B". And this refers to the carpentry works. What happened to this condition as contained in the second page of said Exhibit "H" and Exhibit "3" marked as Exhibit "3-B"? A: Sir, this was not followed. Q: What do you mean it was not followed? A: I found out during the construction that the wood has termites and some are not properly installed. Q: Going further to this Exhibit "H" and Exhibit "3". Found page 3 thereon again bracketed as Exhibit "3-C" by this representation and I will quote all wooden partition indicated in the drawing shall be double face " inches thick ordindary plywood, made two by three (commercial size) tangile space at 0.60 m.o.c both ways (where ever available). Similarly the ceilings shall be of three by sixteen inches thick plywood (-c) with two by two ceilings joys space 0.60 m.o.c. Likewise, door jams shall be of standard size from two feet K.D. tangile. Again was, Mrs. Witness, was this conditions as contained in the specification followed? A: Not followed sir. Q: Why do you say that it was not followed? A: Because I found out that all the bathrooms were no cabinet. That was supposed to have. And when I opened the ceilings, I found out that there are corrugated, GI corrugated inside still attached in the ceiling and a lot of termite also on the door jams. Atty. De Asa, Sr.: So, further going to Exhibit "3" and Exhibit "H" is specification under paragraph G denominated specialties, finished hard wares and I will quote unless otherwise specified all hard wares shall be of chromium plated finished. The contractor shall also provide and fit in place other hard wares nor herein executed and mentioned but nevertheless necessary to complete the work. For the record, Your Honor, this was bracketed and marked as defendant Exhibit "3-B". Was this followed? A: This was not followed sir. Q: Again why do you say that it was not followed?
A: I found out in the Unit B, Master Bed Room, that there were no showers. There were no faucet. And in the kitchen, there were no wire basket or accessory. In the, all the cabinet, there were no chrome plate or aluminum tube for the hanger of the clothes. All of these were not there. Atty. De Asa, Sr.: Now, again on the next page, fourth page, there is here encircled the words nelpex scheduled 40 UPDC conduits or equivalent, which again for purposes of record, Your Honor, please this was marked as Exhibit "3-F" for the defendant. Would you kindly explain whether or not this particular encircled words followed us specified. A: They did not followed this, they used the another like the hose orange color not the pipe. Q: Not the pipe, and the, finally, on the last page of this Exhibit, we refer to the modular kitchen by Danielle (door panel only) this was encircled also Your Honor please and marked as Exhibit "3" was this followed by the plaintiff Matela in the construction of the townhouse?
A: No sir they used ordinary wood, plywood, not the panel door by Danielle. Q: Now, summing up this Exhibit "3-B" on carpentry, on carpentry works which were not followed "3-C", "3-D", "3-F", and "3-E", if you will translate them into figure or in money, how much would they cost?
A: Around Five Hundred Thousand. Q: Five Hundred Thousand, now, you mentioned all of these defects and matters which were not followed thru it specification was contained in Exhibit "H" and Exhibit "E". What other documents if any do you have to prove that indeed these defects existed? A: I took photos, sir. Q: Photographs, if those photographs will be shown to you, will you be able to recognize them?
A: Yes, sir. Q: Now, during the pre-trial conference, Mrs. Witness, Atty. Margaret Chua marked in evidence several photographs from Exhibit "5", "5-A", up to "5-QQQ". Would you go over the same and tell this Honorable Court, what relation has those with the photograph according to you, you took to prove that you indeed the specifications as contained in Exhibit "H" and Exhibit "3" as well as the defects in the constructed townhouses were not followed or appears?
A: I will show you one by one, this one. Q: These are the pictures.
A: Yes. Court:
Already marked? Atty. De Asa, Sr.: Yes, Your Honor, as exhibit. Q: Now, aside from these pictures Mrs. Witness I have here other pictures referring to Unit A and Unit B of. Atty. De Asa, Sr.: I"m sorry, I will withdraw that, Your Honor. Q: Go over now, each and every picture and explain before this Honorable Court, what specifications were not followed and for what were the defects you found in the constructed townhouses.
A: The concrete moldings that they installed the electrical were not repaired. Court Interpreter:
Witness is referring to Exhibit "5-A". A: And then, the next there is no doorbell for Unit B. Court Interpreter: Witness is referring to Exhibit "5-B". A: And then, 5-C, and D, there is no electrical switch or outlet, no lights.Atty. De Asa, Sr.:
No lights referring to: Court Interpreter: . "5-E" A: The ceilings there is no electrical, and the ceilings were open and "5-F", this is the Attic there is no air-con outlet. "5-G", the wall no electrical switch. Also "5-H", no switched, no outlet. Court Interpreter: Same as Exhibit "5-I", "5-K" and "5-J". A: "5-L", there are wires, live wires found in the circuit breaker and leave it open. Atty. De Asa, Sr.: Next. A: "5-M", we installed the cover since it is very dangerous because there are live wires. And letter M, there was. Atty. De Asa, Sr.:
"5-N".
A: Yeah, "5-N", the water flows in the circuit breaker so, it cause like a fire crackers during the rainy days. Q:How about Exhibit "5-O"?
A: "5-O", as you can see there are also no outlet. "5-P", no electrical wire, outlet or switch but there is a junction box. Q: "5-Q"?
A: There are also junction box, but no wire and no switch covered. Q: "5-R"?
A: "5-R", as you can see the ceiling there are GI corrugated, they used this in the flooring and the water flows in here from second floor because there are water leaks. The same with this.Court Interpreter:
"5-S".Atty. De Asa, Sr.:
"5-S".
A: The same. Atty. De Asa, Sr.:
The same "5-T"?
A: They used two inches PVC pipe for the down-spout. It should be three inches as I have seen in the blue print. "5-U", as you can see this is also number two inches pipe. Court Interpreter: Witness is referring to the two inches pipe. . A: "5-V", the same with "5-U" and "5-W", the pipe is so small. Atty. De Asa, Sr.:
Anyway, these pictures from Exhibit "5", "5-A" up to "5-QQQ" were all the pictures, which you have taken to establish that the specifications were not followed and that there were defects in the townhouses constructed by Matela?
A: Yes, sir. Q: Now, was these townhouses completed by plaintiff?
A: No. Q: Why do you say no?
A: Since I took photo, he did not follow what we have agreed in the specification. [31]
Art. 1192. In case both parties have committed a breach of the obligation, the liability of the first infractor shall be equitably tempered by the courts. If it cannot be determined which of the parties first violated the contract, the same shall be deemed extinguished, and each shall bear his own damages.In Camus v. Price, Inc.,[38] we held that:
Even assuming, therefore, that the Lessee's obligation to insure the building arose after the completion of the construction of the buildings in September, 1951, as the Lessor also defaulted in the performance of his corresponding duty, it can not really be determined with definiteness who of the parties committed the first infraction of the terms of the contract. Under the circumstances, the conclusion reached by the Court of Appeals, that the parties are actually in pari delicto, must be sustained, and the contract deemed extinguished, with the parties suffering their respective losses.In the instant case, the losses to be incurred by the parties will come, as far as Matela is concerned, in the form of the alleged unpaid balance of the construction cost that he is seeking to collect from the spouses Yao. For the latter, the losses that they will bear is the cost of repairing the defects in the project. We consider the amount of P4,699,610.93 which Matela has already received from the spouses Yao, as sufficient payment for his services and the materials used in the project.