Name: April Ponce

Southstar Construction vs, Philippines Estates Corporation

G.R. No. 218966, August 21, 2022
Topic: Article 1156-1162, 1167-1170 & 1370
Facts;
This case about disagreement exists between Philippine Estates Corporation (PHES) and
Southstar Construction and Development Corporation (Southstar). They signed three
construction agreements in 2005 for projects in Iloilo City’s Jaro Estates. Southstar filed a
complaint with the Regional Trial Court (RTC) in Imus, Cavite, after PHES refused to pay the
remaining contract money even though the projects were completed in October 2005.
Issue:
Whether or not the primary issues raised include the interpretation of the Construction
Agreements, the finding of delay on the part of Southstar, and the award of PHES’
counterclaims.
Held/Ruling:
The petition was partially allowed by the Supreme Court. It upheld the RTC's decision that
PHES had to pay the remaining contract amount, but it also determined that Southstar was
responsible for the delay and granted PHES liquidated damages. The Court rejected the award of
attorney’s fees and dismissed the counterclaims made by PHES. The amounts of liquidated
damages were adjusted, and an order was issued for lawful interest on the amounts owed. The
verdict of the RTC was upheld with the aforementioned amendment.