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ROSELLA D. CANQUE v. CA

FACTS:

Petitioner, Rosella D. Canque, doing business under the name RDC Construction, had contracts with the government for various infrastructure projects. In connection with these projects, petitioner entered into two contracts with private respondent, Socor Construction Corporation, for the supply of construction materials. Private respondent sent a bill to petitioner for the balance of the total account, but petitioner refused to pay, claiming that private respondent failed to submit delivery receipts showing the actual weight of the items delivered. Private respondent then filed a complaint in the Regional Trial Court of Cebu to recover the amount. Petitioner admitted the existence of the contracts and the receipt of the billing, but disputed the correctness of the bill. The trial court ruled in favor of the private respondent, ordering petitioner to pay the amount plus interest. The Court of Appeals affirmed the decision and petitioner appealed to the Supreme Court, arguing that the entries in private respondent's book of collectible accounts were inadmissible as evidence.

ISSUES:

  1. Whether the entries in private respondent's Book of Collectible Accounts constitute "entries in the course of business" and are thus admissible in evidence.

  2. Whether the petitioner is obligated to pay the amount claimed by the private respondent despite the lack of delivery receipts.

RULING:

  1. The entries in the Book of Collectible Accounts (Exh. K) do not meet the requirements under Rule 130, §37 of the Rules of Court because the person who made the entries testified in court and had no personal knowledge of the transactions. Therefore, such entries are inadmissible as evidence constituting "entries in the course of business."

  2. Despite the inadmissibility of the entries, the other documentary evidence presented and established by the trial court supports private respondent's claim. Hence, the petitioner is obligated to pay the amount claimed as it falls under Article 1235 of the Civil Code which deems an obligation complied with when the obligee accepts the performance without objection.

PRINCIPLES:

  • Entries in the Course of Business: Rule 130, §37 of the Rules of Court requires entries to be made by a person who is deceased, outside the Philippines, or unable to testify, by someone in a position to know the facts stated.

  • Article 1235, Civil Code: An obligation is deemed complied with if the obligee accepts the performance knowing its incompleteness or irregularity without expressing any protest or objection.

  • Evidence Admissibility: Memoranda used to refresh a witness's memory do not themselves constitute evidence and require caution in their admission.