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First United Constructors Corporation, et al. Vs. Bayanihan Automotive Corporation

FIRST UNITED CONSTRUCTORS CORPORATION and BLUE STAR CONSTRUCTION CORPORATION, Petitioners, vs. BAYANIHAN AUTOMOTIVE CORPORATION, Respondent.

G.R. No. 164985 | 2014-01-15

FIRST DIVISION

DECISION

BERSAMIN, J.:

This case concerns the applicability of the legal principles of recoupment and compensation.

The Case

Under review is the decision promulgated on July 26, 2004, 1 whereby the Court of Appeals (CA) affirmed the judgment rendered on May 14, 1996 by the Regional Trial Court, Branch 107, in Quezon City adjudging the petitioners (defendants) liable to pay to the respondent (plaintiff) various sums of money and damages. 2

Antecedents

Petitioner First United Constructors Corporation (FUCC) and petitioner Blue Star Construction Corporation (Blue Star) were associate construction firms sharing financial resources,...