Talisay City told: Pay up P3.9 million to contractor

CEBU, Philippines - The Court of Appeals directed the Talisay City government to pay an engineering consultancy firm the full contract amount of a project terminated by Mayor Socrates Fernandez in 2004.

The appellate court affirmed the ruling of the trial court directing the city government to pay the A.S. Enriquez Engineering Consultancy the amount of P3.9 million for its consultancy project.

On January 3, 2008, the Regional Trial Court Branch 21 ruled in favor of the Engineer Apollo Enriquez, whose consultancy services for the detailed architectural/engineering designs and construction supervision of the proposed Talisay City Public Market and Terminal Building, customer parking and site development was hired by the local government.

Enriquez and the city government entered into a contract amounting to P8,640,000 in 2003. But Fernandez terminated the contract after his election in 2004.

Enriquez filed a civil case against the local government and was awarded the sum of P3,929,617.50 plus 12 percent interest per annum until the amount representing the balance of the total contract price is fully paid.

The court likewise ordered the city government to pay P30,000 as litigation expenses and P100,000 as attorney’s fees.

In a decision penned by Associate Justice Edgardo delos Santos upheld the trial court’s decision except the attorney’s fee and the litigation expenses.

The appellate court said the trial court failed to provide the ground for the award of attorney’s fee and litigation expenses.

According to the consultancy firm, it has started working on the project. In fact, the phase I of it went on smoothly until Fernandez terminated the project in 2004.

The firm billed the local government  unit the amount of P5,277,319.55 for the work it has rendered but was only paid P1,347,702.

Despite repeated demands the city of Talisay failed to settle its obligation prompting the company to file a civil case in court.

The city government admitted having issued a notice of termination of the project claiming that it was “impractical and costly” and needed to be reprogrammed.

The city government computed that the consultancy firm is only entitled P444,686.11 for actual services rendered based on the computation made by the City Engineering Office. — (FREEMAN)