October 2011 - Philippine Supreme Court Resolutions
Philippine Supreme Court Resolutions
[G.R. No. 197463 : October 05, 2011]
STRONGHOLD INSURANCE CO., INC. V. ALCATEL PHILIPPINES, INC.
G.R. No. 197463 (Stronghold Insurance Co., Inc. v. Alcatel Philippines, Inc.).
RESOLUTION
The Court, after a review of the records, resolves to DENY the petition for failure to show that the Court of Appeals committed reversible error when it ruled that the Regional Trial Court has jurisdiction over the case. The failure of Bongar to complete the construction works and its subsequent abandonment thereof is clearly not within the scope of the issues which the parties agreed to be submitted for arbitration, i.e., (1) the interpretation, application and effects of the subcontract, or (2) any act of matter of language under the subcontract.
Similarly, the Court of Appeals did not commit reversible error when it held that Alcatel can still recover from the surety and performance bonds. The conflicting provisions in the surety and performance bonds regarding the duration and effectivity thereof should be construed against Stronghold. After all, the bonds clearly provided that the same were valid until the advance payment of Alcatel has been fully paid and liquidated and that the same were callable on demand. Furthermore, since Bongar already abandoned the project on April 14, 1992, Alcatel had no choice but to cancel the subcontract. This was sufficient demand for Bongar to perform its obligation.
SO ORDERED.
J. Peralta, no part. J. Del Castillo, additional member, per Raffle dated September 14, 2011.
Very truly yours,
(Sgd.) LUCITA ABJELINA-SORIANO
Division Clerk of Court