J PLUS ASIA DEVELOPMENT CORPORATION V. UTILITY ASSURANCE CORPORATION GR NO. 199650 .docx

 J PLUS ASIA DEVELOPMENT DEVELOPMENT CORPORATION CORPORATION CORPORATION GR NO. 199650 JUNE 26, 2013

V.

UTILITY

ASSURANCE ASSURANCE

 TOPIC: Default or ora, INTERPRET! INTERPRET!TION of Co"tra#t$, PEN!% C%!U&E' %I(UID!TED %I(UID!TED D!)!GE& *!CT&: J Plu$ !$+a, rere$e"te- / +t$ #a+ra" Joo a" lee, a"- )art+" )au"a/, e"tere- +"to a CON&TRUCTION !GREE)ENT ere/ )au"a/ u"-ertoo to u+lte fore forer4$ r4$ Co"-o Co"-o+"+ +"+u' u'ot otel el +" ora#a/ ora#a/. Te roe roe#t #t a$ to e #ole #oletete+t+" 1 /r fro te $++7"+"7 of te NOTICE O* !8!RD a"- re#e+t of 20 -o" a/e"t ;.< ;.< +lll+o"= +lll+o"= Te -o" a/e"t a$ full/ a+- o" Ja"uar/ 1<, 200;. 200;. Per te a7ree- or $#e-ule, te #olet+o" -ate of te roe#t a$ December 31, 2008. )au"a/ al$o $u+tte- te re>u+re- Perfora"#e o"- +$$ue- / Ut+l+t/ !$$ura"#e Cororat+o" UT!&&CO= UT!&&CO= +" te aou"t e>u+?ale"t to 20 -o" a/e"t or P;.< +ll+o". )au"a/ )au"a/ #oe"#e#oe"#e- or or o" Ja"uar/ @, 200;. 200;. oe?er, oe?er, a$ e?+-e"#e e?+-e"#e- / te  Jo+"t Co"$tru#t+o" E?aluat+o" Re$ult a"- &tatu$, $+7"e- / ot art+e$, te roe#t  roe#t N!#emb mber er 1$, 1$, 2008 2008.. T%& T%&,,  J PLUS ASIA a$ a$ o"l/ o"l/ 31.39 31.39  #o #ole lete te a !" N!#e 'erm()a'e* '%e c!)'rac'  a"- $e"t -ea"- letter$ letter$ to )au"a/ a"- te $uret/. J Plu$ !$+a Ale- a re>ue$t for ar+trat+o" efore te Co"$tru#t+o" I"-u$tr/ !r+trat+o" Co+$$+o" CI!C= a"- ra/e- tat )!u"a/ a"- &uret/ e or-ere- to a/ ;.9 )+ll+o" a$ l+>u+-ate- -aa7e$ a"- 2.3 )+ll+o" to te u"re#oue- -o" a/e"t or o?era/e"t a-e to )au"a/. )au"a/4$ a"$er alle7e- tat te -ela/ a$ #au$e- / retroAtt+"7 a"- oter re?+$+o" or$ or-ere- / Joo a" %ee. Te $uret/ o" te oter a"- Ale- a )TD for la# of #au$e of a#t+o". Te $uret/ ar7ue- tat te erfora"#e erfora"#e o"- erel/ erel/ 7uara"tee- te 20 -o" a/e"t a"- "ot te e"t+re ol+7at+o" of )au"a/. TE CI!C rule- +" fa?or of JP%U& !&I!. TE C! rule- tat )au"a/ a$ "ot /et +"#urre-ela/ -ela/ a"- tat tat ol+7a ol+7at+o t+o" " a$ "ot /et -ea"-a -ea"-ale le e#au$ e#au$e e te #o"tra #o"tra#t #t a$ ter+"ate- r+or to #olet+o" -ate. I&&UE& I&&UE&:: '" te )au"a )au"a/ / a- +"#urr +"#urree- -ela/B -ela/B E&= E&= '" te -ela/ $oul$oul- e re#o"e- o"l/ after te la$e of te 1 /ear #o"tra#t er+o-, a"- #o"$e>ue"tl/ '" )au"a/4$ l+a+l+t/ for l+>u+-ate- -aa7e$ ar+$e$ o"l/ uo" te ae"+"7 of $u# #o"-+t+o" DE%! )U&T E RECONED *RO) *I%ING O* CO)P%!INT= E%D: )au"a/ alrea-/ +"#urre- -ela/ at te t+e te #o"tra#t a$ ter+"ate-. ter+"ate-. Defa Defaul ultt or mor mora o" te art of te -etor +$ te -ela/ +" te fulAlle"t of te re$tat+o" / rea$o" of a #au$e +utale to te forer. It +$ te "o"fulAlle"t of  a" ol+7at+o" +t re$e#t to t+e. !rt+#le 1169 of te C+?+l Co-e ro?+-e$ tat to$e ol+7e- to -el+?er or to -o $oet+"7 +"#ur +" -ela/ fro te t+e te ol+7ee  u-+#+all/ or etrau-+#+all/ etrau-+#+all/ -ea"-$ fro te te fulAlle"t of te+r ol+7at+o". O"e o #o"tra#t$ #o"tra#t$ to #olete #olete #erta+" #erta+" or +t+" +t+" a #erta+" #erta+" t+e +$ l+ale l+ale for te -aa7e for "ot #olet+"7 +t +t+" $u# t+e, u"le$$ te -ela/ +$ e#u$e- or a+?e-. Te follo+"7 re>u+$+te$ u$t e re$e"t +" or-er tat te -etor a/ e +"

-efault: 1= tat te ol+7at+o" e -ea"-ale a"- alrea-/ l+>u+-ate-F 2= tat te -etor -ela/$ erfora"#eF a"- 3= tat te #re-+tor re>u+re$ te erfora"#e  u-+#+all/ or etrau-+#+all/. )au"a/ a$ alrea-/ +" -ela/. Ar'(c+e 13$ !" '%e C(#(+ C!*e re-&(re '%a' '%e #ar(!& '(&+a'(!) !" a c!)'rac' %a++ be ()'erre'e* '!/e'%er, a''r(b&'()/ '! '%e *!&b'"&+ !)e '%a' e)e %(c% ma re&+' "r!m a++ !"  '%em 'ae) !()'+. 4ere, '%e !r c%e*&+e ar!#e* b e'('(!)er a ()'e)*e*, )!' !)+ '! er#e a (' ba( "!r '%e ame)' !" m!)'%+ r!/re b(++()/, b&' a+! "!r e#a+&a'(!) !" '%e r!/re !" !r b '%e c!)'rac'!r.  Te Co"$tru#t+o" !7reee"t ro?+-e- tat te #o"tra#tor $all e -eee- +" -efault, +f ao"7 oter$, +t a- -ela/e- +tout u$t+Aale #au$e te #olet+o" of te roe#t / ore ta" 30 #ale"-ar -a/$ a$e- o" o#+al or $#e-ule -ul/ aro?e- / te o"er.  Te Co"$tru#t+o" !7reee"t autor+He$ et+t+o"er to #o"A$#ate te Perfora"#e o"- to a"$er for all +"-$ of -aa7e$ +t a/ $uer a$ a re$ult of te #o"tra#tor4$ fa+lure to #olete te u+l-+"7. a?+"7 ter+"ate- te #o"tra#t, et+t+o"er +$ e"t+tle- to te ro#ee-$ of te o"- a$ +"-e"+A#at+o" for -aa7e$ +t $u$ta+"e-ue to te rea# #o+tte- / )au"a/. S&c% '(&+a'(!) a++!()/ '%e c!)5ca'(!) !" '%e c!)'rac'!r6 er"!rma)ce b!)* ar'ae !" '%e )a'&re !" a e)a+' c+a&e, %(c% ( a" a##e$$or/ u"-erta+"7 to a$$ue 7reater l+a+l+t/ o" te art of te ol+7or +" #a$e of rea# of a" ol+7at+o". Te Perfora"#e o"- 7uara"tee- "ot o"l/ te 20 -o" a/e"t ut te full a"fa+tful #ol+a"#e of )au"a/4$ ol+7at+o"$ u"-er te Co"$tru#t+o" !7reee"t. Noere +" la or ur+$ru-e"#e -oe$ +t $tate tat te ol+7at+o" or u"-erta+"7 / a $uret/ a/ e aort+o"e-.  Te +o$+t+o" of +"tere$t o" te #la+$ of et+t+o"er +$ +" or-er. I " a &re' &!) *ema)* "a(+ '! a, %e ca) be %e+* +(ab+e "!r ()'ere', e#e) (" () '%& a()/, (' +(ab(+(' bec!me m!re '%a) '%e r()c(a+ !b+(/a'(!). T%e ()creae* +(ab(+(' ( )!' beca&e !" '%e c!)'rac' b&' beca&e !" '%e *e"a&+' a)* '%e )ece(' !" &*(c(a+ c!++ec'(!) .