CASE DIGEST

[Juan Nakpil & Sons v CA]

[Obligations and Contracts]

Court Supreme Court, Second Division

Citation GR L-47851, GR L-47863, GR L-47896

Date October 3, 1968

Petitioner JUAN F. NAKPIL & SONS, and JUAN F. NAKPIL

Respondents THE COURT OF APPEALS, UNITED CONSTRUCTION COMPANY, INC., JUAN J.

CARLOS, and the PHILIPPINE BAR ASSOCIATION

Ponente J. Paras

Relevant topic Fortuitous Event (Art. 1174), Exceptions to Extinguishment

Prepared by Charlemagne R. Dumaya

FACTS:
 The Philippine Bar Association (PBA) decided to have a building constructed in Intramuros, on the corner of Aduana
and Arzobispo. They hired Juan Nakpil & Sons to create the building specifications, and United Construction
undertook the construction on an administration basis. The building was completed in June 1966.
 In August 2, 1968, there was an unusually strong earthquake that hit Manila, causing major damage to the building.
The building tilted forward, and the tenants vacated the premises. United Construction tried to remedy the damages.
 PBA filed a case against United Construction, but United Construction filed a case against Nakpil and Sons, alleging
there were defects in the specifications passed down to them.
 PBA later moved for the demolition of the building, after there were more damages sustained in 1970. It was then
that they found United Construction deviated from the original plans. There were also defects in the construction.
These technical issues were even referred to a Commissioner chosen by the parties, when the case was being
heard in the Court of First Instance. Thus the pre-existing structural defects were established.

ISSUE – HELD – RATIO:

ISSUE HELD

Whether or not a fortuitous event, such as an earthquake, exempt a party from a NO.
liability due to negligence.

RATIO:
 Article 1174 of the CC states that there are 4 prerequisites for a person to be exempt from liability due to a
fortuitous event:
 The cause of the breach of contract must be independent of the will of the debtor
 That the event must be unforeseeable or unavoidable
 That the event must be such that the debtor would find it impossible to fulfill the obligation
 That the debtor must be free from any participation or aggravation of the injury to the creditor
 In this case, while the damage was catalyzed by the earthquake (a fortuitous event or Act of God), the defect in
the construction was the proximate cause of the issue. The last prerequisite was not met. Therefore, Article 1723,
which states that an engineer/architect/contractor will be liable for damages should the building collapse within 15
years from completion, will hold.

RULING:

Appealed decision modified. Solidary indemnity imposed on United and Nakpil, in favor of PBA, amounting to PHP 5 Million
(damages occasioned by the loss of the building) and PHP 100,000 in attorney’s fees.

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