Fluor Daniel, Inc.-Philippines vs. E. B. Villarosa & Partners Co., Ltd. Facts: 1.

Petitioner Fluor Daniel is a domestic corporation providing construction and program management services. 2. Sometime in 1996, petitioner entered into an agreement with Fil-Estate Properties, Inc. for the construction of the Fairways & Bluewater, Newcoast Island resort in Boracay Island. Respondent Villarosa was one of the contractors engaged by the petitioner to provide services for the said project. 3. Petitioner and respondent executed a separate contract for civil structure and architecture, for plumbing and fire protection, and for millworks. Fil-Estate failed to satisfy petitioners monthly progress billing. Hence, petitioner did not pay respondent. 4. Petitioner suspended the project and issued a notice of suspension to all its contractors including respondent. Respondent demanded payment of suspension cost and for work so far performed. 5. Petitioner also filed a complaint before the RTc for the sum of money and damages. 6. Petitioner filed a motion to dismiss on the ground that the complaint failed to state a cause of action. DENIED. 7. Motion for recon. DENIED. 8. Respondent filed a motion to amend its complaint followed by amended complaint. GRANTED. 9. Petitioner filed a motion to suspend proceedings. DENIED. 10. CA-affirmed the decision of the RTC. 11. Hence, this petition. Issue: WON the complaint, taken with the annexed contracts attached to it, has insufficient allegations of all the operative facts which would give rise to a cause of action against FDIP. Yes, there is insufficient allegations-> nocause of action-> motion to dismiss shall be granted. Held: 1. The essential elements of a cause of action are as follows: 1) A right in favor of the plaintiff by whatever means and under whatever law it arises or is created; 2) An obligation on the part of the defendant not to violate such right; and 3) An act or omission on the part of the defendant in violation of the right of the plaintiff or constituting a breach of the obligation of the defendant to the plaintiff for which the latter may maintain an action for recovery of damages or other relief. The occurrence of the last element that a cause of action arises gives the plaintiff a right to file an action in court for recovery of damages or other relief. The test of sufficiency of facts alleged in the complaint as constituting a cause of action is whether or not admitting the facts alleged, the court could render a valid verdict in accordance with the prayer of the complaint. In determining sufficiency of cause of action, the court takes into account only the material allegations of the complaint and no other; but in some cases, the court considers the documents attached to the complaint to truly determine sufficiency of cause of action. 2. We have ruled that a complaint should not be dismissed for insufficiency of cause of action if it appears clearly from the complaint and its attachments that the plaintiff is entitled to relief. The converse is also true. The complaint may be dismissed for lack of cause of action if it is obvious from the complaint and its annexes that the plaintiff is not entitled to any relief. In this case, we note that records show that recurring in each of the three contracts is the provision that payment by petitioner shall be subject to its timely receipt of similar payments from Fil-Estate. On their face, the said attached contracts clearly require a specific condition before petitioner may be held liable for payment. The complaint, however, failed to state that the said condition had been fulfilled. Without the said condition having taken place, petitioner cannot be said to have breached its obligation to pay.