business under the name R.E.Q. Construction, EFREN N. RIGOR, doing businesss under the name Present: Chiara Construction, ROMEO R. DIMATULAC, doing business CARPIO, J., under the name Ardy Chairperson, Construction and FELICITAS C. BRION, SUMERA, doing business under SERENO, the name F.C.S. Construction, REYES, and represented by her ATTORNEY- PERLAS-BERNABE,* JJ. IN-FACT ROMEO M. DE LEON, Respondents. Promulgated:
October 12, 2011
It has been settled in several cases that payment for services
done on account of the government, but based on a void contract, cannot be avoided.
This exercise of equity to compensate contracts with the government
was repeated in Eslao vs. COA. In the said case, the respondent therein, Commission on Audit (COA), was ordered to pay the company of petitioner for the services rendered by the latter in constructing a building for a state university, notwithstanding the contracts violations of the mandatory requirements of law, including the prior appropriation of funds therefor. The Court, in resolving the case, cited the unpublished Resolution in Royal Construction, wherein the Court allowed the payment of the companys services sans the legal requirements of prior appropriation.
In EPG Construction Co., et al v Hon. Gregorio R. Vigilar, the Court
again refused to stamp with legality DPWHs act of evading the payment of contracts that had been completed, and from which the government had already benefited. The Court held: Although this Court agrees with respondents postulation that the implied contracts, which covered the additional constructions, are void, in view of violation of applicable laws, auditing rules and lack of legal requirements, we nonetheless find the instant petition laden with merit and uphold, in the interest of substantial justice, petitioners- contractors right to be compensated for the "additional constructions" on the public works housing project, applying the principle of quantum meruit.
HEIRS OF RAMON C. GAITE, G.R. No. 177685
CYNTHIA GOROSTIZA GAITE and RHOGEN BUILDERS, Present: Petitioners, CARPIO MORALES, J., Chairperson, - versus - NACHURA,* BRION, VILLARAMA, JR., and SERENO, JJ.
THE PLAZA, INC. and FGU Promulgated:
INSURANCE CORPORATION, Respondents. January 26, 2011
Under the principle of quantum meruit, a contractor is allowed to
recover the reasonable value of the thing or services rendered despite the lack of a written contract, in order to avoid unjust enrichment. Quantum meruit means that in an action for work and labor, payment shall be made in such amount as the plaintif reasonably deserves. To deny payment for a building almost completed and already occupied would be to permit unjust enrichment at the expense of the contractor.