Flashcards Studio

Facts: AquaGuard Construction, Inc. contracted by the City of San Felipe to build a flood-control dam and spillway. The City filed a civil action for damages arising from defective construction. The trial court rendered a final judgment on the merits awarding PHP 4,900,000 plus costs; the judgment became final and no appeal was filed. Four years later, AquaGuard’s successor-in-interest, San Felipe Infrastructure, LLC, files a second action against AquaGuard for latent defects in the dam discovered after the first judgment, seeking PHP 2,000,000. 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.