MARIO R. MELCHOR, vs. COMMISSION ON AUDIT.
- G.R. Number: G.R. No. 95398
- Promulgated: 1991-08-16
- Ponente: Gutierrez, Jr., J.
Doctrine
Payment on a quantum meruit basis allows recovery of the reasonable value of services rendered regardless of any agreement as to value.
The quantum meruit principle applies even where the government, not the contractor, seeks reimbursement; after COA determines value, the public official is liable only for excess or improper payments.
Facts
Petitioner headed a school where a public school building was constructed; question arises whether he is personally liable for payments made because the contract allegedly lacked one required signature.
Petitioner wrote to the COA resident auditor on 19 September 1984 asking whether to condone the contract or sue the contractor; COA Regional Director directed disallowance of P515,305.60 in post-audit on ground the contract lacked the chief accountant's signature under LOI 968.
The Court framed the sole issue as whether petitioner should be personally liable for P515,305.60 paid to the contractor; the amount was broken down for consideration.
Issues
Whether petitioner Melchor should be held personally liable for the amount of P515,305.60 paid to the contractor.
Ruling
The petition is granted; COA's 11th Indorsement (11 November 1988) and resolution (31 July 1990) are reversed and set aside. COA is directed to allow P344,430.80 in post-audit and to determine on a quantum meruit basis the value of extra works; petitioner liable only for any excess payment thus found.
Keywords
G.R. No. 95398, MARIO R. MELCHOR v. COMMISSION ON AUDIT, personal liability, infrastructure contract, null and void contract, non-compliance with LOI No. 968, Letter of Instruction No. 968, Certificate of Availability of Funds, additional charge, post-audit disallowance, breach of contract, P.D. 1445, Government Auditing Code of the Phils., Section 85 P.D. 1445, Section 86 P.D. 1445, extra work orders, contract, contractor, signature, school