MRT 3 ordered to pay P58 million to construction firm

MANILA, Philippines - A private construction firm has won its bid to collect over P58 million from Metro Rail Transit Development Corp. (MRTDC) for breach of contract.

In a 31-page decision, the special 12th division of the appellate court affirmed the ruling of the Construction Industry Arbitration Commission (CIAC) granting the claim of Gammon Philippines Inc. against MRTDC for rescinding its contract for the concrete works of the podium structure of MRT 3 North Triangle Development in 1998.

The CA gave weight to MRTDC’s admission of liability to Gammon in responding to the damage suit filed before CIAC.

“It is well-settled that judicial admissions cannot be contradicted by the party making it and who is thereby bound by it; and, absent any showing, as in this case, that this was made through palpable mistake, no amount of rationalization can offset it,” according to the ruling penned by Associate Justice Antonio Villamor.

The appeals court added that “there is ample basis on record” supporting Gammon’s monetary claims for the works performed.

“While petitioner disputes the foregoing declarations, it however failed to prove the contrary, in particular, that the documents presented were insufficient and respondent’s computation were erroneous,” it said.

“We find that the CIAC had carefully considered both testimonial and documentary evidence presented on the issue,” it added.