In a 31-page decision penned by Associate Justice Antonio Villamor, the CA’s Special 12th Division stated there is no reason to nullify or alter the CIAC’s decision which upheld the claim of Gammon Philippines Inc. against MRTDC for rescinding its contract for the complete concrete works of the podium structure of MRT 3 North Triangle Development in 1998.
The CA sustained the CIAC’s decision because the MRTDC’s admission of liability is binding. The appellate court noted that MRTDC admitted its liability to Gammon in its answer to the suit filed by Gammon before the CIAC.
In its answer, MRTDC stated that “it is willing to pay Gammon the total amount of P5,493,639.27 representing the sum of P4,821,261 and P672,377, which comprise Gammon’s claim for cost of the engineering and design services and site dewatering and cleanup works.”
“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,” the CA pointed out.
Furthermore, the CA said “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,” the CA added.
“We find that the CIAC had carefully considered both testimonial and documentary evidence presented on the issue…,” it stated.
Likewise, the CA said MRTDC failed to substantiate its claim that the CIAC’s award of lost profits to Gammon was based on pure speculation. Contrary to MRTDC’s claim, the CA noted that documentary evidence is not absolutely necessary in order to prove a claim for lost profit.
“Considering that CIAC’s decision is fully supported by substantial evidence on record and applicable jurisprudence, this Court cannot but sustain it,” the CA declared. Concurring with the ruling were Associate Justices Jane Aurira Lantion and Ramon Cruz.
