5/3/2021 E-Library - Information At Your Fingertips: Printer Friendly pertinent documents required by petitioners. As petitioners had been impressed with respondent’s performance, six (6) additional projects were given to his group under the same undertaking.[7] One of the projects handled by respondent Lirag, the Bureau of Post project, amounting to P100,000,000.00 was awarded to the “Marubeni-Sanritsu tandem.”[8] Despite respondent’s repeated formal verbal demands for payment of the agreed consultancy fee, petitioners did not pay. In response to the first demand letter, petitioners promised to reply within fifteen (15) days, but they did not do so. Pursuant to the consultancy agreement, respondent claimed a commission of six percent (6%) of the total contract price, or a total of P6,000,000.00, or in the alternative, that he be paid the same amount by way of damages or as the reasonable value of the services he rendered to petitioners, and further claimed twenty percent (20%) of the amount recoverable as attorney’s fees and the costs of suit. In their answer, petitioners denied the consultancy agreement. Petitioner Ryohei Kimura did not have the authority to enter into such agreement in behalf of Marubeni. Only Mr. Morihiko Maruyama, the general manager, upon issuance of a special power of attorney by the principal office in Tokyo, Japan, could enter into any contract in behalf of the corporation. Mr. Maruyama did not discuss with respondent Lirag any of the matters alleged in the complaint, nor agreed to the payment of commission. Moreover, Marubeni did not participate in the bidding for the Bureau of Post project, nor benefited from the supposed project. Thus, petitioners moved for the dismissal of the complaint. Petitioner Shoichi One submitted a separate answer raising similar arguments. With regard to petitioner Ryohei Kimura, the trial court did not acquire jurisdiction over his person because he was recalled to the principal office in Tokyo, Japan before the complaint and the summons could be served on him. During the pre-trial conferences held on September 18 and October 16, 1989 and on January 24, March 15 and May 17, 1990, no amicable settlement was reached. Trial on the merits ensued. On April 29, 1993, the trial court promulgated a decision and ruled that respondent is entitled to a commission. Respondent was led to believe that there existed an oral consultancy agreement. Hence, he performed his part of the agreement and helped petitioners get the project. The dispositive portion of the decision reads: “WHEREFORE, defendants are ordered, jointly and severally, to pay to the plaintiff: (1) the amount of P6,000,000.00, with interest at the legal rate (12% per annum) from January 10, 1989 until fully paid; (2) 20% of this amount to serve as reimbursement of plaintiff’s attorney’s fees; and (3) to pay the cost of the suit. “SO ORDERED. https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/52501 2/10

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