Roblett v. Court of Appeals

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G.R. No.

116682 January 2, 1997


Roblett Industrial Construction Corporation, petitioner
Vs.
Court Of Appeals and Contractors Equipment Corporation, respondents

Ponente: Associate Justice Josue N. Bellosillo

FACTS:

On 23 September 1986 respondent Contractors Equipment Corporation instituted an action


for a sum of money against petitioner Roblett Industrial Construction Corporation before the RTC-
Makati alleging that in 1985 it leased to the latter various construction equipment which it used in
its projects. As a result RICC incurred unpaid accounts amounting to 342,909.38Php. RICC
entered into an Agreement with CEC where it confirmed petitioner's account. As an off-setting
arrangement respondent received from petitioner construction materials worth 115,000Php thus
reducing petitioner's balance to 227,909.38Php. A day before the execution of their Agreement,
RICC paid CEC 10,000Php in postdated checks which when deposited were dishonored. As a
consequence the latter debited the amount to petitioner's account of 227,909.38Php thus increasing
its balance to 237,909.38Php.

The General Manager of CEC, sent a letter of demand to petitioner through its Vice
President for Finance regarding the latter's overdue account of 237,909.38Php and sought
settlement thereof on or before 31 July 1986. In reply, petitioner requested for (30) days to have
enough time to look for funds to substantially settle its account. Aller Jr., Asst. VP for Finance of
RICC, declared that he signed the Agreement with the real intention of having proof of payment.
Additionally, Baltazar Banlot, VP for Finance of RICC, claimed that after deliberation and audit
it appeared that petitioner overpaid respondent by P12,000.00 on the basis of the latter's Equipment
Daily Time Reports for 2 May to 14 June 1985 which reflected a total obligation of only
P103,000.00. He claimed however that the Agreement was not approved by the Board and that he
did not authorize Aller Jr. to sign thereon. The RTC rendered judgment ordering RICC to pay
CEC, which was affirmed by the CA.

ISSUE:

Whether or not estoppel in pais is present in this case.

RULING:

YES. Estoppel in pais arises when one, by his acts, representations or admissions, or by
his own silence when he ought to speak out, intentionally or through culpable negligence, induces
another to believe certain facts to exist and such other rightfully relies and acts on such belief, so
that he will be prejudiced if the former is permitted to deny the existence of such facts. This
doctrine obtains in the present case. A statement of account for 376,350.18Php covering the period
above mentioned was received from respondent by petitioner with nary a protest from the latter.
Neither did petitioner controvert the demand letter concerning the overdue account of
237,909.38Php; on the contrary, it asked for ample time to source funds to substantially settle the
account. WHEREFORE, the petition is DENIED.

COMMENT:

The ruling of the Supreme Court is justified. The Doctrine of estoppel has its origin in
equity, and is based on moral rights and natural justice. In the case at bar, the fact that the evidence
relied upon by the petitioner is incomplete will prejudice the aggrieved party and so the application
of the principle of estoppel in this case is proper.

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