Flashcards Studio

Arcadia Builders, Inc. contracted with Stellar Realty, Inc. to construct a sports complex. In a civil action brought by Arcadia against Stellar Realty for damages arising from defective construction, the trial court rendered a final judgment on the merits awarding PHP 4,800,000 plus costs; the judgment became final and no appeal was filed. Five years later, Arcadia’s successor-in-interest, Summit Holdings, LLC, files a second action against Stellar Realty for latent defects in the same complex discovered after the first judgment, seeking PHP 1,500,000 in additional damages. The latent defects pertain to the same contract and project but were not pleaded in the first action. (a) Identify the doctrine of conclusiveness of judgments and its essential elements. (b) Apply the doctrine to the facts and determine whether the second action is barred by res judicata. (c) If barred, explain the rationale; if not barred, explain under what circumstances it could be sustained.