Santiago Navarro, Et. Al., vs. Felix Mallari, Et. Al.

Case Digest

G.R. No. 20586 October 13, 1923

Santiago Navarro, ET AL,

vs.

Felix Mallari, ET AL,

Street, J.:

Facts:

On June 11, 1920, Santiago Navarro (one of the trustees) and Felix Mallari (contractor) came to an agreement and signed a contract for the construction of the chapel in their barrio in San Vicente, Macabebe, Pampanga. Navarro demand that first-class iron should be used, for the roof, that the best of cement should also be used, and that the woods should be of molave, dungon, guiho, and nothing else for the price of Php 12,000.00 plus Php 4,000.00 to be paid to Mallari when the work is finished. But some of the residents of municipality stated that Mallari is not a contractor or builders by profession and knows nothing about constructing houses. In fact the one who  knows little about construction was his son Jose Mallari but since Jose is not able to do the job because he is a government employee he appointed his father which is Felix Mallari (Felix Mallari was a mere figurehead). The chapel was made but one of the engineer said the work was done with complete want of knowledge and the plans were drawn by a person completely ignorant (lack of technical knowledge) that the building threatens ruin for want of proper foundation and that upon the slightest tremor of earth it might come down.

Issue:  Whether or not Navarro can confiscate the sum of Php 4,000.00 which is yet unpaid upon the purchase price and at the same time to claim the stipulated damages?

Ruling: The answer is No, the general rule is that the creditor cannot demand the fulfillment of the principal obligation and stipulated penalty at the same. The balance of Php 4,000.00 is not yet paid so Navarro cannot reimburse the said amount and claim the stipulated damages at the same time.