CA denies appeal to review order to pay

CEBU, Philippines -  The Court of Appeals 20th Division denied the partial appeal filed by the Province of Cebu seeking for review of the trial court’s decision ordering the provincial government to pay WT Construction Inc. more than P200 million for the construction of the Cebu International Convention Center.

.Associate Justice Ramon Paul Hernando affirmed with modification the trial court’s decision that the provincial government was liable to pay WT Construction legal interest of six percent per annum on the sum of P257,413,911.73 to be computed from January 22, 2008 until such time it was fully paid, P50,000 for attorney’s fees and the cost of the suit.

Hernando said since the Province of Cebu has settled the actual damages of P257.4, the issues to be tackled was the legal interest per annum, attorney’s fees and costs of the suit.

He said considering the subject money arose from a non-payment of services already rendered by WT Construction, the Province of Cebu should be made liable to pay only an interest rate of six percent per annum and not 12 percent per annum.

The WT Construction Inc. won as the bidder for the construction of Phase I (substructure) of the CICC which was constructed after the Province of Cebu was chosen to host the 12th ASEAN Summit on December 10, 2007.

Based on the documents, after the WT Construction Inc. (WTCI) completed the first phase, the provincial government paid the contractor.

On July 26, 2006, WTCI was contracted to complete the Phase II of the CICC project and they were paid for their services.

However, the WTCI said the non-payment ensued after they were about to complete the additional works comprising of site development, structural, architectural, electrical and plumbing works.

The Province of Cebu in their defense said the alleged worked claimed by the WTCI “were not taken cognizance of and did not pass, the Bids and Awards Committee of the Province nor approved by the Cebu Governor or her authorized representative.”

The provincial government added there was no contract for the additional works of the plaintiff-appellee and to pay them “would be questionable and illegal.”

On May 20, 2009 the court rendered a decision in favor of the WTCI and ordered the province to pay P263,263,261.41 plus legal interest of 12 percent per annum, P50,000 as attorney’s fees and the costs of the suit.

However, the provincial government filed a motion for reconsideration and admitted its liability to plaintiff-appelle but contested the payment of interest attorney’s fees and costs of the suit.

The court granted the motion for reconsideration and reduced the actual damages to P257.4 million but retained the payment of interests, attorney’s fees and costs of the suit.

The Province of Cebu then filed its appeal before the appellate court.  (FREEMAN)