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POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM iii. Incorporated NON-SUABILITY OF THE STATE Gover...

POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM iii. Incorporated NON-SUABILITY OF THE STATE Government Agencies b. Implied Consent i. Government submits TOPIC OVERVIEW itself to the Court’s Jurisdiction A. Basis ii. The State itself files a a. Article XVI, Section 3 of the 1987 complaint Constitution iii. Government Enters into b. Republic v. Villasor, GRN a Business Contract L-30671, November 28, 1973 iv. When inequitable for B. When is it a Suit Against a State government to claim a. Suit Against the Republic immunity i. Republic vs. Feliciano, 1. Santiago v. G.R. No. 70853. March 12, Republic G.R. No. 1987 L-48214. b. Suit Against Foreign State & December 19, International Agencies 1978 i. USA v. Ruiz, G.R. No. 2. Amigable v. L-35645 May 22, 1985 Cuenca, G.R. No. c. Suit Against Government L-26400. Agencies February 29, 1972 i. Professional Video, Inc. vs. Technical Education and Skills Development BASIS Authority, G.R. No. 155504, June 26, 2009 ARTICLE XVI, SECTION 3 OF THE 1987 d. Suit Against Public Officers CONSTITUTION i. Lansang v. CA, GR No. “The State may not be sued without its 102667, February 23, consent” 2000 Recognition of sovereign character of the ii. Sanders v. Veridiano, GR State No. G.R. No. L-46930 Express affirmation of the unwritten rule June 10, 1988 insulating the State from the jurisdiction C. Consent as a Waiver of the Doctrine of the courts of justice a. Express Consent One of the generally accepted principles i. Money Claims Arising of international law from Contract LOGICAL AND PRACTICAL GROUND 1. Act No. 3083 Justice Holmes 2. Republic v. ○ There can be no legal right Purisima, G.R. against the authority which No. L-36084. makes the law on which the right August 31, 1977 depends ii. Torts Committed by PRACTICAL CONSIDERATION Special Agents / Quasi Demands and inconveniences of Delict litigation will divert the time and 1. New Civil Code, resources of the State form the more Article 2180 pressing matters demanding its 2. Meritt v. GPI, 34 attention, to the prejudice of the public Phil 311 (1916) welfare. PAGE 1  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM PRINCIPLE OF SOVEREIGN EQUALITY OF Republic v. Villasor STATES GRN L-30671, November 28, 1973 One state cannot assert jurisdiction over another in violation of the maxim par inn The Republic of the Philippines in this parem non habet imperium (equals have certiorari and prohibition proceeding no sovereignty over each other). To do so challenges the validity of an order issued by would “unduly vex the peace of nations” respondent Judge Guillermo P. Villasor, then Foreign states mat be sued in the host of the Court of First Instance of Cebu, Branch state if engaged regularly in a business or I,1 declaring a decision final and executory trade or on the basis of its contracts in and of an alias writ of execution directed the host state which may be considered against the funds of the Armed Forces of the as purely commercial, private and Philippines, the alleged ground being excess propriety acts but not with respect to its of jurisdiction, or at the very least, grave abuse contracts entered into by it as of discretion. The Republic of the Philippines governmental or sovereign acts. is entitled to the writs prayed for. Respondent A contract does not per se mean that Judge ought not to have acted thus. The sovereign states may be sued in local order thus impugned and the alias writ of courts execution must be nullified. The application of the doctrine of immunity from suit has been restricted FACTS to sovereign or governmental activities and cannot be executed to private and On July 3, 1961, the Court ruled in favor proprietary acts. of respondents P. J. Kiener Co., Ltd., A state entering into a contract with a Gavino Unchuan, and International private party would result in the waiver of Construction Corporation, against the its sovereign immunity. Republic of the Philippines, Jure imperii confirming an arbitration award of sovereign or governmental activities or PHP 1,712,396.40. public acts The awarded amount was not Not all acts of jure imperii may exempt a immediately settled by the Republic. state from suit, as in the case of its Respondent Hon. Guillermo P. Villasor, exercise of eminent domain, when done Judge of the Court of First Instance of without payment of just compensation. Cebu, Branch I, on June 24, 1969, Jure gestionis declared the 1961 decision final and Private and proprietary activities executory and directed the Sheriffs of Once state enters into commercial Rizal Province, Quezon City, and transactions then it descends to the level Manila to execute the decision. of the private individual and is not An Alias Writ of Execution was issued immune from the resulting liability and on June 26, 1969. consequences of actions Pursuant to this writ, on June 28, 1969, the Provincial Sheriff of Rizal served Additional Information notices of garnishment to several The determination of the executive banks, affecting funds due to the arm of the government that a state or Armed Forces of the Philippines (AFP). instrumentality is entitled to sovereign The notices of garnishment were or diplomatic immunity is a political received by the Philippine Veterans question, it is the duty of the courts to Bank on June 30, 1969. accept claims of plea of immunity The funds targeted for garnishment were allocated for the payment of pensions, pay and allowances of AFP PAGE 2  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM personnel, and operational expenses, ○ By applying the principle that as certified by the AFP Comptroller on public funds are immune from July 3, 1969. garnishment, the Supreme The Republic filed a certiorari and Court found that Judge prohibition proceeding with the Villasor’s declaration of the 1961 Supreme Court, asserting that decision as final and executory, Respondent Judge Villasor acted in the issuance of the alias writ of excess of jurisdiction and with grave execution, and the subsequent abuse of discretion in issuing the alias garnishment of AFP’s funds writ and the garnishment notices. constituted an overreach and grave abuse of discretion. The ISSUES actions taken were inconsistent with the constitutionally and Whether the state is immune from jurisprudentially protected suit, specifically regarding execution immunity of state funds from and garnishment orders against execution and garnishment public funds. proceedings. Whether Judge Villasor acted in excess of jurisdiction and with grave abuse of discretion by declaring the WHEN IS IT A SUIT AGAINST THE decision final and executory and STATE issuing an alias writ of execution targeting public funds. TEST DECISION Assuming the decision is rendered against the republic officer impleaded, State Immunity from Suit enforcement thereof will require an ○ The principle of state immunity affirmative act from the State then it is a from suit, a fundamental tenet suit against the state. of constitutional law, renders The officer impleaded may by himself the state or its government alone comply with the decision of the immune unless consenting to court without the necessity of involving suit. This immunity emanates the State then the suit can prosper from the concept of against him and will not be considered sovereignty, highlighting that a claim against the State. there can be no legal claim ○ Where a public officer acts against the state without its without or in excess of consent. The Supreme Court jurisdiction, any injury caused by reiterated this established legal him is his own personal liability principle, emphasizing that and cannot be imputed to the public funds cannot be State subjected to garnishment even if the state’s liability is adjudicated. This doctrine ensures that public functions are not disrupted by lawsuits against state funds allocated for specific public purposes. Excess of Jurisdiction and Grave Abuse of Discretion PAGE 3  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM SUIT AGAINST THE REPUBLIC Appellate Court and the Supreme Court was unsuccessful. Eventually, on August 21, 1980, the CFI Republic vs. Feliciano dismissed the case on grounds of G.R. No. 70853. March 12, 1987 non-suability of the state, which Feliciano contested but the Solicitor FACTS General supported. The Intermediate Appellate Court Pablo Feliciano bought a parcel of land reversed the dismissal in April 1985, comprising four lots (total area: prompting the Republic to seek this 1,364.4177 hectares) from Victor review. Gardiola through a Contract of Sale in 1952 which was confirmed by a Deed ISSUES of Absolute Sale in 1954. Feliciano claimed to have taken Non-Suability of the State possession of the land, introduced ○ Whether the Republic of the improvements, and had it surveyed, Philippines can be sued for which was approved by the Director of recovery of ownership and Lands. possession of a parcel of land President Ramon Magsaysay issued without its consent. Proclamation No. 90, reserving land in Validity of Possessory Information the Municipalities of Tinambac and ○ The legitimacy and sufficiency Siruma, Camarines Sur, for settlement of the “informacion posesoria” purposes under the National relied upon by Feliciano to Resettlement and Rehabilitation claim ownership of the Administration (NARRA). disputed land. Feliciano filed a complaint for recovery Immunity Waiver Contention of ownership and possession of the ○ Whether Proclamation No. 90 land on January 22, 1970. impliedly waived the state’s The Court of First Instance (CFI) ruled immunity from suit by stating in favor of Feliciano in August 1970, “subject to private rights, if any recognizing Lot No. 1 (701.9064 there be.” hectares) as Feliciano’s property but reverted Lots 2, 3, and 4 to public DECISION domain. Eighty-six settlers intervened, alleging Non-Suability of the State long-term possession that predated ○ The Supreme Court held that the purchase by Feliciano. This led to a the doctrine of non-suability of reconsideration and reopening of the the state applies. The action is case in January 1971. characterized as an in personal The intervenors failed to appear for action, directly seeking to their hearing, resulting in Feliciano litigate against the Republic again being favored by a decision in and bind it by the judgment. August 1971. ○ The complaint against the The lower court reopened the case Republic did not demonstrate again in December 1971 to allow the any statutory consent to be intervenors another chance to present sued, thereby making it their evidence. dismissible on this ground. Feliciano’s subsequent petition for Validity of Possessory Information certiorari to the Intermediate PAGE 4  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM The Court acknowledged that ○ Telegram Confirmations the “informacion posesoria” ○ The company received remained prima facie evidence telegrams from the U.S. of possession and was never requesting confirmation of converted into a record of their price proposals and ownership. Moreover, the information on their bonding authenticity of the possessory company. The company information was highly complied with these requests. questionable as it was a Rejection of Bid reconstituted document ○ In June 1972, the company without sufficient proof of its received a rejection letter original validity. signed by William I. Collins, ○ The properties exceeding the Director, Contracts Division, U.S. area stated in the possessory Navy, stating de Guzman’s documentation further unsatisfactory performance rendered its legitimacy rating on a previous project. dubious. Consequently, the projects Immunity Waiver Contention were awarded to other parties. ○ The Court rejected the Filing of Civil Case No. 779-M argument that Proclamation ○ De Guzman filed a lawsuit No. 90 implied a waiver of state against the United States of immunity. The exclusion of America and individuals James private rights from the E. Galloway, William I. Collins, reservation did not establish an and Robert Gohier from the expressed or implied consent U.S. Navy’s Contracts Division. for the state to be sued, nor The complaint sought specific could such a waiver be derived performance of the contract or, from a non-legislative act. alternatively, damages if specific performance was not feasible, alongside a writ of SUIT AGAINST FOREIGN STATE & preliminary injunction to INTERNATIONAL AGENCIES prevent the defendants from contracting third parties for the projects. USA v. Ruiz Special Appearance and Jurisdictional G.R. No. L-35645 May 22, 1985 Challenge ○ The defendants made a special FACTS appearance solely to challenge the jurisdiction of the court, Background and Bidding Process arguing that the United States ○ In May 1972, the United States, had not waived its sovereign operating a naval base in Subic, immunity. They subsequently Zambales, invited bids for filed a motion to dismiss and several repair projects related opposed the issuance of the to typhoon damage and wharf preliminary injunction. maintenance. Eligio de Trial Court Ruling Guzman & Co., Inc. (de ○ The trial court denied the Guzman) submitted bids in motion to dismiss and issued response. the preliminary injunction. The defendants filed motions for PAGE 5  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM reconsideration, which were considered obiter dictum, not denied. binding legal precedent. Petition to the Supreme Court Nature of the Contracts ○ The defendants then ○ The Supreme Court reiterated petitioned the Supreme Court that the contracts were to restrain the trial court’s inherent to the naval base’s proceedings permanently, sovereign functions, dedicated citing a lack of jurisdiction to defense purposes rather given the principles of state than commercial activities. immunity. Thus, no waiver of immunity from suit was implied. ISSUES State Immunity from Suit SUIT AGAINST GOVERNMENT ○ Whether the trial court had AGENCIES jurisdiction over the case given the traditional rule of state immunity, which exempts a Professional Video, Inc. vs. Technical Education sovereign state from being and Skills Development Authority sued without its consent. G.R. No. 155504, June 26, 2009 Commercial vs. Sovereign Functions ○ Whether the contracts for FACTS repair work constituted a governmental act (jure imperii) PROVI is an entity engaged in the sale or a commercial act (jure of high technology equipment, gestionis), and if the latter, information technology products and whether this implied a waiver broadcast devices, including the of sovereign immunity. supply of plastic card printing and security facilities. DECISION TESDA is an instrumentality of the government established under State Immunity Applicability Republic Act (R.A.) No. 7796 (the ○ The Supreme Court granted TESDA Act of 1994) and attached to the petition, emphasizing the the Department of Labor and application of state immunity Employment (DOLE) to "develop and to acts jure imperii establish a national system of skills (governmental acts), not jure standardization, testing, and... gestionis (commercial acts). It certification in the country." To fulfill concluded that the contracts in this mandate, it sought to issue question were integral to the security-printed certification and/or naval base’s operations, a identification polyvinyl (PVC) cards to sovereign function related to trainees who have passed the national defense. certification process. Misplaced Reliance on Lyons Case TESDA's Pre-Qualification Bids Award ○ The Court noted that the trial Committee (PBAC) conducted two (2) court’s reliance on the Lyons public biddings on June 25, 1999 and case was erroneous. The July 22, 1999 for the printing and statement on waiver of state encoding of PVC cards. A failure of immunity in Lyons was bidding resulted in both instances PAGE 6  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM since only two (2) bidders - PROVI and issuance of a writ of preliminary Sirex Phils. Corp. submitted proposals. attachment/garnishment. The CA Due to the failed bidding, the PBAC subsequently denied PROVI's motion recommended that TESDA enter into for reconsideration; hence, the present a negotiated contract with PROVI. On petition. December 29, 1999, TESDA and PROVI signed and executed their "Contract ISSUES Agreement Project: PVC ID Card Issuance" (the Contract Agreement) whether or not the writ of attachment against for the provision of goods... and TESDA and its funds, to cover PROVI's claim services in the printing and encoding against TESDA, is valid. The issue involves a of PVC cards. Under this Contract pure question of law and requires us to Agreement, PROVI was to provide determine whether the CA was correct in TESDA with the system and ruling... that the RTC gravely abused its equipment compliant with the discretion in issuing a writ of attachment specifications defined in the Technical against TESDA. Proposal. In return, TESDA would pay PROVI the... amount of Thirty-Nine DECISION Million Four Hundred and Seventy-Five Thousand Pesos (P39,475,000) within The RTC’s questioned order involved a fifteen (15) days after TESDA's gross misleading of the law and acceptance of the contracted goods jurisprudence amounting to action in and services. excess of its jurisdiction. Hence, we TESDA responded on July 24, 2001 by resolve to deny PROVI’s petition for filing a Motion to Discharge/Quash the lack of merit. Writ of Attachment, arguing mainly R.A. No. 7796 created the Technical that public funds cannot be the Education and Skills Development subject of garnishment. The RTC Authority or TESDA under the declared denied TESDA's motion, and "policy of the State to provide relevant, subsequently ordered the manager of accessible, high quality and efficient the Land Bank of... the Philippines to technical education and skills produce TESDA's bank statement for development in support of the the garnishment of the covered development of... high quality Filipino amount. middle-level manpower responsive to Faced with these rulings, TESDA filed a and in accordance with Philippine Petition for Certiorari with the CA to development goals and priorities." question the RTC orders, imputing TESDA replaced and absorbed the grave abuse of discretion amounting National Manpower and Youth to lack or excess of jurisdiction on the Council, the Bureau of Technical and trial court for issuing a writ of Vocational Education and the... preliminary attachment against personnel and functions pertaining to TESDA's public... funds.... he CA set technical-vocational education in the aside the RTC's orders after finding regional offices of the Department of that: (a) TESDA's funds are public in Education, Culture and Sports and the nature and, therefore, exempt from apprenticeship program of the Bureau garnishment; and (b) TESDA's of Local Employment of the DOLE. purchase of the PVC cards was a Thus, TESDA is an unincorporated necessary incident of its governmental instrumentality of the government function; consequently, it ruled that operating under its own charter. there was no legal... basis for the PAGE 7  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM Among others, TESDA is empowered and all State immunities fully apply to to: approve trade skills standards and it. trade tests as established and The rule that a state may not be sued conducted by private industries; without its consent is embodied in establish and administer a system of Section 3, Article XVI of the 1987 accreditation of both public and Constitution and has been an private institutions; establish, develop established principle that antedates and support the institutions'... trainors' this Constitution. It is as well a training and/or programs; exact universally recognized principle of... reasonable fees and charges for such international law that exempts a state tests and trainings conducted, and and its organs from the jurisdiction of retain such earnings for its own use, another state. The principle is based subject to guidelines promulgated by on the very essence of sovereignty, the Authority; and perform such other and on the practical ground that there duties and functions necessary to can be no legal right as against the carry out the... provisions of the Act, authority that makes the... law on consistent with the purposes of the which the right depends. It also creation of TESDA. rests on reasons of public policy -- that All these measures are undertaken public service would be hindered, and pursuant to the constitutional the public endangered, if the command that "[T]he State affirms sovereign authority could be labor as a primary social economic subjected to law suits at the instance force," and shall "protect the rights of of every citizen and, consequently,... workers and promote their controlled in the uses and dispositions welfare"; that "[T]he State shall of the means required for the proper protect and... promote the right of all administration of the government. is citizens to quality education at all pointed out by TESDA in its levels, and shall take appropriate steps Memorandum, the garnished funds to make such education accessible to constitute TESDA's lifeblood - in all"; in order "to afford protection to government parlance, its MOOE - labor" and "promote full employment whose withholding via a writ of and equality of employment... attachment, even on a temporary opportunities for all." basis, would paralyze Under these terms, both TESDA's functions and services. As constitutional and statutory, we do well, these funds also include TESDA's not believe that the role and status Personal Services funds from which of TESDA can seriously be contested: salaries of TESDA personnel are it is an unincorporated sourced. Again and for obvious instrumentality of the government, reasons, the release of these funds directly attached to the DOLE cannot be delayed. through the participation of the Jurisprudence teaches us that the rule Secretary of Labor as its Chairman, on the issuance of a writ of for the performance of attachment must be construed strictly governmental functions - i.e., the in favor of the defendant. Attachment, handling of formal and non-formal a harsh remedy, must be issued only education and training, and skills on concrete and specific grounds and development. As an unincorporated not on general averments merely instrumentality operating under a quoting the words of the... pertinent specific charter, it is equipped with rules. Thus, the applicant's affidavit both express and implied... powers, must contain statements clearly PAGE 8  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM showing that the ground relied upon the writ of attachment despite want of for the attachment exists. any valid ground for its issuance. PROVI, in this case, never entrusted For all these reasons, we support the any money or property to TESDA. appellate court's conclusion that no While the Contract Agreement is valid ground exists to support the supported by a Certificate as to grant of the writ of attachment Availability of Funds (Certificate) issued against TESDA. The CA's annulment by the Chief of TESDA's Accounting and setting aside of the Orders of the Division, this Certificate does not RTC were therefore fully in order. automatically confer... ownership over the funds to PROVI. Absent any actual disbursement, these funds form part SUIT AGAINST PUBLIC OFFICERS of TESDA's public funds, and TESDA's failure to pay PROVI the amount stated in the Certificate cannot be Lansang v. CA construed as an act of fraudulent GR No. 102667, February 23, 2000 misapplication or embezzlement. In this regard,... Section 86 of Presidential FACTS Decree No. 1445 (The Accounting Code) provides: In 1970, the General Assembly of the By law, therefore, the amount stated in Blind, Inc. (GABI) was allegedly given the Certification should be intact and office, library space, and areas to remains devoted to its purpose since operate kiosks in Rizal Park by the its original appropriation. PROVI can National Parks Development rebut the presumption that Committee (NPDC), through an necessarily arises from the cited undocumented “verbal agreement”. provision only by evidence to the GABI agreed to remit 40% of its kiosk contrary. No such evidence has... been operations’ profits to NPDC. Following adduced. the 1986 EDSA Revolution, NPDC’s The affidavit, being the foundation of new leadership, led by petitioner the writ, must contain particulars Amado J. Lansang, initiated a park showing how the imputed fraud was clean-up. Lansang terminated GABI’s committed for the court to decide occupation in 1988, citing a breach of whether or not to issue the writ. To their verbal agreement. reiterate, a writ of attachment can only GABI president Jose Iglesias was be granted... on concrete and specific deceived into signing a consent for grounds and not on general eviction, unaware due to his blindness. averments merely quoting the words Upon receiving eviction notices, GABI of the rules. sought legal action for damages and The affidavit filed by PROVI through an injunction, which resulted in a Elmer Ramiro, its President and Chief temporary restraining order (TRO) Executive Officer, only contained a against the eviction. After the TRO’s general allegation that TESDA had expiration, NPDC successfully evicted fraudulent misapplied or converted GABI. the amount of P10,975,000.00 that was GABI’s case was dismissed by the RTC, allotted to it. Clearly, we cannot infer arguing it was essentially against the any finding of fraud... from PROVI's State which cannot be sued without vague assertion, and the CA correctly consent. The Court of Appeals reversed ruled that the lower court acted with this, finding Lansang personally liable grave abuse of discretion in granting PAGE 9  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM for damages. Lansang’s appeal to the Anthony M. Rossi and Ralph L. Wyers, Supreme Court argued the lawsuit both American citizens residing in the was improperly directed at the state Philippines, were employed as game and that his actions were legitimate room attendants at NAVSTA’s special official duties. services department. On October 3, 1975, Rossi and Wyers ISSUES were informed that their employment status was changed from permanent Whether the Court of Appeals erred in full-time to permanent part-time not recognizing the lawsuit against effective October 18, 1975. They Lansang as essentially a suit against protested this change and initiated the State. grievance proceedings under U.S. Whether Lansang’s termination of Department of Defense rules. The GABI’s concession was valid and hearing officer recommended that performed within his lawful duties. they be reinstated to their full-time status with back pay, criticizing Special DECISION Services management as autocratic in the process. The Supreme Court granted Lansang’s On May 17, 1976, Sanders wrote a letter petition, setting aside the Court of to Moreau rejecting the Appeals’ decision, and affirmed the recommendation. He cited behavioral RTC’s dismissal due to lack of merit. issues with Rossi and Wyers and The court clarified that Lansang was alleged they had broken sued in his personal capacity for acting confidentiality oaths. Additionally, on with alleged malice and not within his November 7, 1975, a letter signed “by official NPDC duties. It found no direction” of Moreau (although not by substantial evidence of abuse of Moreau himself) was sent to the Chief authority by Lansang or any valid of Naval Personnel to explain and claim for damages by GABI. justify the employment status change, State immunity does not protect also requesting concurrence with this public officials from liability for actions change. performed in bad faith or beyond their Rossi and Wyers filed a complaint for authority. It also established that damages on November 8, 1976, at the public spaces cannot be subject to Court of First Instance of Olongapo lease agreements, and such City. They claimed that the letters were accommodations are revocable at the libelous and prejudicial, suing Sanders government’s discretion and Moreau in their personal capacities. The petitioners filed a motion to dismiss, asserting the acts Sanders v. Veridiano were part of their official duties and GR No. G.R. No. L-46930 June 10, 1988 thus covered by the doctrine of state immunity. FACTS ISSUES Petitioner Dale Sanders was the special services director of the U.S. Whether Sanders and Moreau were Naval Station (NAVSTA) in Olongapo performing their official duties when City, while petitioner A.S. Moreau, Jr. they committed the acts for which was the commanding officer of the they were sued. Subic Naval Base. Private respondents PAGE 10  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM Whether the doctrine of state would negate the petitioners’ good immunity applies, thereby negating faith presumption. the court’s jurisdiction. ○ The doctrine of state immunity protects state officials from DECISION being sued in their official capacities without the state’s Official Capacity of Petitioners: consent. ○ The court established that ○ Actions performed within Sanders and Moreau acted official duties are insulated within their official capacities. from personal liability. Sanders, in his role, had ○ Good faith is presumed in governance over personnel public officers’ actions unless matters, and his letter shown otherwise, preventing disputing the grievance report personal liability for official acts was an integral part of his performed within their duties as the director of authority. NAVSTA. Moreau’s letter to the Chief of Naval Personnel also WAIVER OF IMMUNITY pertained to his official The doctrine of state immunity is responsibilities regarding sometimes called the “royal prerogative personnel and budgetary of dishonesty” issues. The court determined State must not avail itself of immunity to these acts were official in take undue advantage of parties that nature and not personal torts. may have legitimate claims against it. Application of State Immunity: Built in Qualification: ○ Since the petitions were ○ The state may divest itself of its performed as part of their sovereign immunity and thereby official duties, the court voluntarily open itself to suit. concluded that any ruling ○ The state may be sued if it gives against Sanders and Moreau its consent would effectively amount to a suit against the U.S. government, which had not CONSENT AS THE WAIVER OF THE consented to be sued. The legal DOCTRINE principle of state immunity protects a state and its officials FORMS OF CONSENT acting in official capacities from Expressed Consent jurisdiction without its consent. ○ May be manifested either The court referenced prior through general law or a special cases to reinforce that official law acts performed on behalf of a Implied Consent foreign government are ○ State itself commences litigation shielded by immunity. or when it enters into a contract Moreover, the letters, regarded as privileged communication, were protected under both Philippine law and the doctrine of good faith applicable to public officers. Thus, the court held that the respondents did not establish any malicious intent that PAGE 11  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM EXPRESSED CONSENT payment by the owners MONEY CLAIMS ARISING FROM CONTRACT Republic v. Purisima General Law G.R. No. L-36084. August 31, 1977 ○ Act No. 3083 The Government of the FACTS Philippines iSlands hereby consents and submits to In a civil suit for the collection of a be sued upon any monetary claim against the Rice and moneyed claim involving Corn Administration (RCA), arising liability arising fro m from an alleged breach of contract, contract, express or Yellow Ball Freight Lines, Inc. (plaintiff) implied, which could serve filed a complaint before the Court of as a basis of civil action First Instance of Manila under Judge between private parties. Amante P. Purisima (respondent judge). The RCA, a governmental C.A. No. 327 amended by P.D. No. 1445 entity, moved to dismiss the case on ○ A claim against the government September 7, 1972, invoking the must first be filed with the doctrine of non-suability of the state. Commission on Audit which must act upon it within 60 days. Judge Purisima denied this motion on ○ Rejection of the claim will October 4, 1972, prompting the authorize claimant to elevate the Republic of the Philippines, matter to the Supreme Court on represented by Solicitor General certiorari and in effect sue the Estelito P. Mendoza, to seek a review State with its consent. from the Supreme Court through a petition for certiorari and prohibition. SPECIAL LAW Enacted by the PH Legislature ISSUES authorizing an individual to sue the government for injuries he had Whether the doctrine of non-suability sustained. of the state precludes the Court of First Instance from exercising Additional Information jurisdiction over a suit against the Rice Express waiver can also be provided for and Corn Administration for a breach in a treaty, such as the Visiting Forces of contract. Agreement (VFA), but applicable only Whether implied consent could be to suits covered by the same and may argued from the provisions of the not be invoked as general consent for alleged contract between Yellow Ball all suits Freight Lines, Inc. and the RCA. THE DOCTRINE OF SOVEREIGN IMMUNITY WAS NOT AN DECISION INSTRUMENT FOR PERPETRATING ANY INJUSTICE ON A CITIZEN. The Supreme Court reiterated the ○ Example: exercising the right of established doctrine that a state or its eminent domain without just agencies cannot be sued without its compensation, immunity from consent. This principle was firmly suit cannot be set up by the grounded in prior jurisprudence, State against an action for specifically citing Mobil Philippines PAGE 12  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM The owners and managers of an Exploration, Inc. v. Customs Arrastre establishment or enterprise are likewise Service and reinforced by the current responsible for damages caused by their constitutional provision stating, “The employees in the service of the branches State may not be sued without its in which the latter are employed or on consent.” the occasion of their functions. The Court emphasized that, in light of Employers shall be liable for the this doctrine, the respondent judge damages caused by their employees and lacked the jurisdiction to entertain the household helpers acting within the monetary claim against the RCA. The scope of their assigned tasks, even series of precedents from various though the former are not engaged in cases (e.g., Switzerland General any business or industry. Insurance Co., Ltd. v. Republic of the The State is responsible in like manner Philippines, Providence Washington when it acts through a special agent; but Insurance Co. v. Republic) underscored not when the damage has been caused that non-consent results in an outright by the official to whom the task done lack of judicial jurisdiction. properly pertains, in which case what is Implied Consent provided in Article 2176 shall be ○ Addressing the argument of applicable. implied consent based on the Lastly, teachers or heads of terms of the RCA’s contract establishments of arts and trades shall be with the plaintiff, the Supreme liable for damages caused by their pupils Court dismissed this notion. and students or apprentices, so long as The state’s consent must be they remain in their custody. explicitly provided through The responsibility treated of in this article legislative enactment. shall cease when the persons herein Individual agreements or mentioned prove that they observed all implied consents within the diligence of a good father of a family contracts involving to prevent damage. (1903a) governmental entities cannot constitute valid consent to be sued. UN/INCORPORATED GOVERNMENT AGENCIES TORTS COMMITTED BY SPECIAL AGENTS / QUASI DELICT UNINCORPORATED AGENCIES Possess no juridical personality of its own NEW CIVIL CODE, ART. 2180 The suit is against the agency’s principal, The obligation imposed by Article 2176 is the State demandable not only for one's own acts NO separate juridical personality but is or omissions, but also for those of merged in the general machinery of the persons for whom one is responsible. government The father and, in case of his death or Examples: Department of Justice and incapacity, the mother, are responsible Bureau of Mines for the damages caused by the minor Any suit against it is an action against children who live in their company. the Philippine Government Guardians are liable for damages caused by the minors or incapacitated persons INCORPORATED AGENCIES who are under their authority and live in Has a charter of its own that invests it their company. with a separate juridical personality PAGE 13  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM Example: Social Security System, The legislative Act No. 2457 was University of the Philippines, and the City passed on February 3, 1915, specifically of Manila authorizing Merritt to sue the It is suable if the charter says so which is Government to determine liability and true regardless of its function damages. Merritt filed the suit in the Court of SUABILITY VS LIABILITY First Instance of Manila. The trial court found in favor of Merritt, awarding him P14,741 in damages. The mere fact that the State is suable Both parties appealed—Merritt does not mean that it is liable contended the damages were Waiver of immunity by the State does insufficient, while the Government does not mean concession of its disputed its liability and the finding of liability negligence. When the State allows itself to be sued, all it does is to give the other party an ISSUES opportunity to prove that the State is liable Whether the trial court erred in THE STATE MAY BE SUABLE BUT NOT limiting Merritt’s general damages to LIABLE P5,000 and his lost wages during incapacitation to P2,666. SUABILITY Whether the Government of the Is the result of the express or implied Philippine Islands can be held liable consent of the State to be sued for the negligent actions of its employee, under the then-prevailing LIABILITY legal doctrines. Determined after hearing on the basis of the relevant laws and the established DECISION facts General Damages Meritt v. GPI ○ The Supreme Court agreed 34 Phil 311 (1916) with the trial court’s assessment of P5,000 for FACTS Merritt’s permanent injuries. They found no substantial The collision in question occurred on evidence to justify increasing March 25, 1913, between E. Merritt, who this amount. was riding a motorcycle, and an Lost Wages ambulance from the General Hospital ○ The Supreme Court found an in Manila. error in the trial court’s limited The accident happened when the award for lost wages to P2,666, ambulance, without signaling, only covering the period Merritt suddenly turned to the right side of was hospitalized. As evidence Taft Avenue, colliding with Merritt, showed a six-month total who was on Padre Faura Street. incapacitation, the Court Merritt suffered severe injuries, awarded lost wages for the full including fractures to the skull and period, raising it to P6,000, right leg, leading to lasting bringing total damages to impairments and substantial medical P18,075. treatment. Government Liability PAGE 14  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM ○ The Court examined Act No. 2457 and Spanish Civil Code IMPLIED CONSENT principles. It held that the Act only waived the Government’s REPUBLIC V. SANDIGANBAYAN immunity from suit but did not The court ruled that when the Republic necessarily concede liability. entered into a compromise agreement ○ Under Article 1903 of the Civil with a private person, it stripped itself of Code, the state is liable when its immunity from suit and placed itself damage is caused by a “special of its immunity from suit and placed agent,” which was not itself on the same level as its adversary applicable to the General Hospital’s chauffeur. ○ Since the driver of the GOVERNMENT SUBMITS ITSELF TO ambulance was not a “special THE COURT’S JURISDICTION agent” but a regular employee, the State could not be held liable for his negligence, per When the State enters into a contract established jurisprudence from which created mutual or reciprocal rights Spain. and obligations, the State may be sued The Supreme Court reversed the trial even without express consent court’s damages award, holding that Its consent is implied from its entry into the Government of the Philippine the contract and the Republic's breach Islands was not liable for the injury grants the other party the right to under existing laws. enforce or repudiate the contract The State can be held liable for the acts of its agents only when acting THE STATE ITSELF FILES A through “special agents” as per Article COMPLAINT 1903 of the Civil Code. When actions stem from duties intrinsic to a public official’s position, the liability is When the State files a complaint, the personal, not governmental. defendant is entitled to file a ○ Civil Code Article 1902 Persons counterclaim against it. causing damage through fault ○ Froilan v. Pan Oriental Shipping or negligence are liable to Co. - government impliedly make reparations. allowed itself to be sued when it ○ Civil Code Article 1903 Extends filed a complaint in intervention liability to those with authority for the purpose of asserting a over the direct tortfeasor, claim for affirmative relief including parents, guardians, and specifically state actors GOVERNMENT ENTERS INTO A through “special agents.” BUSINESS CONTRACT Consent to sue granted by legislation does not imply recognition of liability; it must align with pre-established When the government enters into a legal principles and does not create contract, the State descended to the new liabilities. level of the ordinary individual and Act No. 2457 becomes subject to judicial action and ○ Legislative consent to sue does processes. not automatically equate to governmental liability. PAGE 15  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM USA V. RUIZ ISSUES Suability would follow only if the contract is entered into by th e government in its Can the state be sued for proprietary capacity. non-compliance with the terms of the Governmental contracts do not result in donation, despite the constitutional implied waiver of immunity of the State provision prohibiting suits against the from suit. state without its consent? Does the action for revocation of a Additional Information donation imply consent from the An agreement to submit any dispute state? to arbitration may be construed as an Does retroactive application of the implicit waiver of immunity from suit. constitutional provision affect this case? Santiago v. Republic DECISION G.R. No. L-48214. December 19, 1978 The Court acknowledged the explicit FACTS constitutional prohibition against suing the state without its consent. On January 1971, Ildefonso Santiago However, it recognized the inherent and his spouse execute a deed of unfairness if such a rule prevented donation of their property to the Santiago from seeking redress for the Bureau of Plant Industry. alleged breach of conditions by the Bureau of Plant Industry agrees to government, which accepted a install lighting facilities, a water donation with specific terms. system, an office building, and parking Implied Consent on or before December 7, 1974. ○ The Court ruled that consent to The Bureau fails to fulfill these terms be sued can be implied. In this by the agreed date. case, the Court found it On August 9, 1976, Santiago files an appropriate to presume such action in the Court of First Instance consent to ensure equity and (CFI) of Zamboanga City, aiming to justice, considering the revoke the donation due to government accepted the non-compliance. donation with explicit Defendants are the Republic of the conditions. Philippines, represented by the Retroactive Application Bureau’s Director, and Regional ○ The Court dismissed the Director of Region IX. argument that applying the The Republic moves to dismiss the non-suability provision case, invoking the constitutional retroactively would injustice provision that the state cannot be Santiago’s case, grounding its sued without its consent. decision on the established The CFI grants the motion to dismiss, principle of non-suability in agreeing with the Republic’s stance. both the 1935 Constitution and Santiago, represented by his existing jurisprudence. attorney-in-fact Alfredo T. Santiago, The Supreme Court granted Santiago’s files a petition for certiorari to the petition for certiorari, nullifying the Supreme Court challenging the order CFI’s dismissal order. It directed the of dismissal. CFI to proceed with the case, ensuring Santiago’s right to be heard. PAGE 16  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM property without violating the Amigable v. Cuenca doctrine of governmental immunity G.R. No. L-26400. February 29, 1972 from suit. The determination of appropriate FACTS compensation for the land taken by the government. Victoria Amigable, the The availability of damages, including plaintiff-appellant, owned Lot No. 639 attorney’s fees, for the plaintiff. in Cebu City, with her ownership duly registered without any government DECISION claim annotated on the title. Despite a lack of expropriation or voluntary sale, The Supreme Court set aside the trial the government utilized a portion court’s decision, allowing the plaintiff measuring 6,167 square meters of the to sue the government based on the lot for Mango and Gorordo Avenues. principle that the government had These roads existed since 1921 but effectively consented to the lawsuit by were substantially improved from 1924 taking the property without legal onwards. On March 27, 1958, Amigable process. The Court remanded the case requested compensation for the for determination of due appropriated land, a claim disallowed compensation based on the land’s by the Auditor General on December value at the time of taking, legal 9, 1958, and communicated to her in interest on the compensation from the January 1959. Consequently, Amigable time of taking until payment, and filed an amended complaint on attorney’s fees. February 6, 1959, seeking recovery of The ruling, therefore, upheld the right ownership, possession, and to compensation for appropriated compensation for illegal occupation, property while rejecting the absolute moral damages, attorney’s fees, and application of governmental costs. The government, as immunity. defendant-appellee, denied the This case establishes that when the allegations and asserted defenses, government takes private property for inter alia, regarding the lawsuit’s public use without due legal process, prematurity, prescription, immunity the aggrieved party may maintain a from suit, and the province of Cebu’s suit against the government without responsibility. contravening the doctrine of The plaintiff presented evidence ex governmental immunity from suit parte due to defendants’ without consent. Compensation must non-appearance. The trial court be determined based on the dismissed the complaint, citing the property’s value at the time of taking, government’s immunity and lack of including legal interest until payment jurisdiction over claims against it. The and the government is responsible for plaintiff appealed to the Court of attorney’s fees. Appeals, which subsequently referred Doctrine of Governmental Immunity the case to the Supreme Court for ○ Cannot be used to perpetrate resolution of legal questions. injustice; not absolute when it contravenes constitutional ISSUES rights. Prescriptive period for claiming Whether the plaintiff may validly sue compensation the government over the appropriated PAGE 17  POWERS AND STRUCTURES OF GOVERNMENT LPS 3102 1ST SEMESTER – ATTY. LALAINE ESMERALDA – TTH 4:30 -6:00 PM ○ Not specified, but the claim should be made within a reasonable time and is subject to specific instances of prescription under the law. Determination of just compensation ○ Value of the property at the time of the taking. Legal interest as damages ○ Payable from the time of taking until actual payment is made by the government. PAGE 18