20 Delmonte V Aragones Digest

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GRANATIN

Case No. 20
Del Monte Philippines, Inc., vs. Napoleon N. Aragones
G.R. No. 153033 June 23,2005
Facts:
Del Monte Philippines Inc. (DMPI) entered into an Agreement with Mega-Engineering Services
in joint venture with WAFF Construction System Corporation (MEGA-WAFF), represented by
Managing Principal Edilberto Garcia, whereby the latter undertook the supply and installation of
modular pavement at DMPIs condiments warehouse at Cagayan de Oro City. MEGA-WAFF,
represented by Garcia, entered into a Supply Agreement with Dynablock Enterprises, represented
by Napoleon Aragones. MEGA-WAFF failed to meet the deadline stated in the Agreement with
DMPI, thus they were penalized for the delay. After the installation, MEGA-WAFF failed to pay
Aragones. Aragones wrote a letter to DMPI requesting that the payment be made directly to him
instead of MEGA-WAFF. DMPI however realeased the payment to Garcia. Aragones was then
prompted to file a complaint for sum of money (P 188,652.65) with damages against Garcia and/or
MEGA-WAFF and DMPI. The RTC ruled in favor of Aragones, holding Garcia/MEGA-WAFF
and DMPI jointly and severally liable for the unpaid cost of P 188,652.65 and damages. DMPI
appealed to the Court of Appeals but the court affirmed the RTC’s ruling.
Issue: Whether or not the Supply Agreement between Aragones and MEGA-WAFF was one for a
piece of work.
Held: Yes. Contrary to DMPI’s claim, the Supply Agreement is replete with specifications, terms
or conditions showing that it was one for a piece of work. The machines Aragones was obliged to
fabricate were those for casting the concrete blocks specified by Garcia. Aragones did not have
those kind of machines in his usual business, hence, the special order. Under Article 1467 of the
Civil Code,if the goods are to be manufactured specially for the customer and upon his special
order, and not for the general market, it is a contract for a piece of work. The Supply Agreement
was decidedly a contract for a piece of work.

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