Waterworks v. Leon

GRIÑO-AQUINO, J.:

This is a special civil action of certiorari under Rule 65 of the Rules of Court, with prayer for preliminary injunction and/or temporary restraining order, to enjoin the respondents from enforcing the writ of execution issued by respondent Judge on March 16, 1987 in Civil Case No. 80390, on the ground that he acted in excess of his jurisdiction and with grave abuse of discretion in issuing it, and that the petitioner Metropolitan Waterworks and Sewerage System [(or MWSS), formerly National Waterworks & Sewerage Authority (or NWSA)] has no other plain, speedy and adequate remedy in the ordinary course of the law as the Deputy Sheriff has already garnished the deposits of the petitioner in the Philippine National Bank. On July 17, 1970, private respondents filed an action for specific performance and damages against the petitioner in the Regional Trial Court of Manila, where it was docketed as Civil Case No. 80390.

During the pendency of the case, the parties agreed to submit the controversy to a Board of Arbitrators pursuant to Republic Act No. 876. After extensive hearings, the arbitration Board rendered a decision-award on August 11, 1972, ordering MWSS to pay the private respondents, Integrated Construction Services, Inc. and Engineering Construction, Inc., the sum of P15,518,383.61 less P2,329,433.41, to be set aside as a trust fund to pay creditors of the joint venture in connection with the project, or a net award of P13,188,950.20 with interest of 6% per annum from the filing of the complaint until fully paid. The award was confirmed by respondent Judge on September 9, 1972 and it became final and executory.

On October 2, 1972, the petitioner and the private respondents entered into an agreement, the pertinent portions of which provided as follows: "1. In lieu of the provision of 6% interest on the net award from the date of the filing of the complaint up to the date that it is paid, the MWSS would only pay a straight 6% interest on such amount without computing the period of time involved; "2. In lieu of the cost of arbitration to be divided equally between the MWSS and the joint venture, the cost of arbitration will be borne solely by the Joint Venture; "3.

The amount of P127,622.31 represent the rental of NWSA-owned equipment deducted from the net award of P13,188,950.20, plus the six (6%) percent straight interest; "4. The amount of P197,267.79 representing the claims already paid by MWSS to the V.V. Dionisio Construction, Inc., as well as the amount of P265,539.67 shall be reimbursed to the MWSS from the Trust fund for Third party Claims in the amount of P2,329,433.41; and "5. That the MWSS agrees to pay within fifteen (15) days after the official release of this Resolution and after the joint venture shall have signed a written CONFORME on the result of the conferences in a separate letter to be sent by the MWSS and waived any and all claims that the Joint Venture may have had or now have, for, upon or by reason of any manner, cause or thing whatsoever against the NWSA, MWSS, or its successor in interest.

"As a result of the above-dated understanding, the net payable amount is computed as follows: Net Amount Awarded by the Board of Arbitrators P 13,188,950.20 Plus: Straight 6% interest 791,337.01