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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

REPUBLIC VS SANTOS III to the property could not be registered in favor of the applicants
G.R. No. 160453, November 12, 2012 for the reason that the property was an orchard that had dried
CRUZ up and had not resulted from accretion.

DOCTRINE: RTC: In favor of petitioners


CA: Affirmed RTC decision
All river beds remain property of public dominion and cannot be
acquired by acquisitive prescription unless previously declared ISSUE:
by the Government to be alienable and disposable.
WON the land claimed is an alienable and disposable land hence
To prove that the land subject of an application for registration Government specifically City of Paranaque in this case cannot claim
is alienable, an applicant must conclusively establish the ownership.
existence of a positive act of the Government, such as a
presidential proclamation, executive order, administrative HELD:
action, investiga tion reports of the Bureau of Lands investigator,
or a legislative act or statute. NO. The land is belongs to the inalienable public domain.
Indeed, under the Regalian doctrine, all lands not otherwise appearing to be
FACTS: clearly within private ownership are presumed to belong to the State. No
public land can be acquired by private persons without any grant, express or
Alleging continuous and adverse possession of more than ten implied, from the Government. It is indispensable, therefore, that there is a
years, respondent Arcadio Ivan A. Santos III (Arcadio Ivan) showing of a title from the State. Occupation of public land in the concept of
applied on March 7, 1997 for the registratio n of Lot 4998 -B (the owner, no matter how long, cannot ripen into ownership and be registered
property) in the RTC in Paranaque City. The property, which had as a title.
an area of 1,045 square meters, more or less, was located in
Barangay San Dionisio, Paranaque City, and was bounded Subject to the exceptions defined in Article 461 of the Civil Code (which
in the Northeast by Lot 4079 belonging to respondent Ar cadio C. declares river beds that are abandoned through the natural change in the
Santos, Jr. (Arcadio, course of the waters as ipso facto belonging to the owners of the land
Jr.), in the Southeast by the Paranaque River, in the Southwest occupied by the new course, and which gives to the owners of the adjoining
by an abandoned road, and in the Northwest by Lot 4998 -A also lots the right to acquire only the abandoned river beds not ipso facto
owned by Arcadio Ivan. belonging to the owners of the land affected by the natural change of
course of the waters only after paying their value), all river beds remain
On May 21, 1998, Arcadio Ivan amended his application for land property of public dominion and cannot be acquired by acquisitive
registration to include Arcadio, Jr. as his co -applicant because prescription unless previously declared by the Government to be
of the latter's co-ownership of the property. He alleged that the alienable and disposable. Considering that Lot 4998-B was not shown to
property had been formed through accretion and had been in be already declared to be alienable and disposable, respondents could not
their joint open, notorious, public, continuous and adverse be deemed to have acquired the property through prescription.
possession for mor e than 30 years.
To prove that the land subject of an application for registration is alienable,
The City of Paranaque opposed the application for land an applicant must conclusively establish the existence of a positive act of the
registration, stating that it needed the property for its flood Government, such as a presidential proclamation, executive order,
control program; that the property was within the legal administrative action, investigation reports of the Bureau of Lands
easement of 20 meters from the river bank; and that assuming investigator, or a legislative act or statute. Until then, the rules on
that the property was not covered by the legal easement, title confirmation of imperfect title do not apply.

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

taxes. The CIR, pending investigation, issued another assessment for estate
In the case of Menguito v Republic and Republic v. Sarmiento, a notation on and inheritance taxes in the amount of P469,665.24. In a letter, the CIR
a survey plan that the land is alienable and disposable is not a sufficient denied the request for exemption on the ground that the law of Tangier is
proof. For the original registration of title, the applicant (petitioners not reciprocal to Section 122 of the National Internal Revenue Code.
in thiscase) must overcome the presumption that the land sought to
be registered forms part of the public domain. Unless public land is Hence, CIR demanded the payment of the sums representing deficiency
shown to have been reclassified or alienated to a private person by the estate and inheritance taxes including ad valorem penalties, surcharges,
State, it remains part of the inalienable public domain. Indeed, "occupation interests and compromise penalties. In a letter, Campos Rueda requested
thereof in the concept of owner, no matter how long, cannot ripen into for the reconsideration of the decision denying the claim for tax exemption
ownership and be registered as a title." To overcome such presumption, of the intangible personal properties and the imposition of the ad valorem
incontrovertible evidence must be shown by the applicant. Absent such penalties. However,the CIR denied request. The denial is premised on
evidence, the land sought to be registered remains inalienable. the grounds that there was no reciprocity [with Tangier, which was
moreover] a mere principality, not a foreign country. Consequently,
We find applicability of the ruling in the mentioned case, the notation in the CIR demanded the payment of a total of P161,874.95 as deficiency estate
survey plan of Lot 4998-B stating it is alienable and disposable is not a and inheritance taxes including surcharges, interests and compromise
sufficient proof. The rulings of RTC and CA was reversed and set aside. penalties.

CIR vs CAMPOS RUEDA The matter was then elevated to the Court of Tax Appeals. In ruling against
G.R. No. L-13250. October 29, 1971 the contention of the Collector of Internal Revenue, the appealed decision
states: "In fine, we believe, and so hold, that the expression "foreign
DOCTRINE: country", used in the last proviso of Section 122 of the National Internal
Revenue Code, refers to a government of that foreign power which,
A foreign country is to be identified with a state, it is required in line with although not an international person in the sense of international
Pound's formulation that it be a politically organized sovereign community law, does not impose transfer or death upon intangible person properties of
independent of outside control bound by ties of nationhood, legally supreme our citizens not residing therein, or whose law allows a similar exemption
within its territory, acting through a government functioning under a regime from such taxes. It is, therefore, not necessary that Tangier should
of law. have been recognized by our Government order to entitle the
petitioner to the exemption benefits of the proviso of Section 122
The international zone of Tangier, even if it is not recognized by the of our Tax. Code."
Philippine Government as a state or even if w/o international personalitya,
could avail of the reciprocal provisions of our Tax Code
ISSUE:
FACTS:
Whether or not the acquisition of international personality is a condition sine
Maria Cerdeira is a Spanish national and was a resident of Tangier, Morocco
qua non to Tangier being considered a "foreign country".
from 1931 up to her death. At the time of her demise she left, among
HELD:
others, intangible personal properties in the Philippines. Antonio Campos
Rueda, as administrator of the estate of Maria Cerdeira, filed a provisional
NO. International personality is not required to be considered as a foreign
estate and inheritance tax return on all the properties of the latter. The CIR,
country.
pending investigation, issued an assessment for state and inheritance taxes
in the amount of P369,383.96, which tax liabilities were paid by petitioner.
Even on the assumption then that Tangier is bereft of international
Campos Rueda filed an amended return wherein intangible personal
personality petitioner has not successfully made out a case. Note that four
properties with the value of P396,308.90 were claimed as exempted from

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

days prior to the filing of this petition, In Collector of Internal Revenue vs. corporate body performing proprietary functions.
De Lara, it was specifically held by the court that: "Considering the State of
California as a foreign country in relation to Section 122 of our Tax Code we FACTS:
believe and hold, as did the Tax Court that the Ancilliary Administrator is
entitled to exemption from the inheritance tax on the intangible personal April 1960, Lots No. 1 and 4, covered by Original Certificate of Title No. 0-
property found in the Philippines." There can be no doubt that California as 381 in the name of Rafael Galvez, were sold by the latter to Filipina Mamaril,
a state in the American Union was lacking in the alleged requisite of Cleopatra Llana, ReginaBustos, and Erlinda Balatbat. Thereafter, in August.
international personality. Nonetheless, it was held to be a foreign country 1960, Mamaril, et al. sold the same lots to Lepanto Consolidated Mining
within the meaning of Section 122 of the NIRC. Even prior to the De Lara Company and the latter in turn conveyed the property to Shipside
ruling, this Court did commit itself to the doctrine that even a tiny Incorporated, herein petitioner, on1963, resulting in the issuance of
principality, that of Liechtenstein, hardly an international personality in the new Transfer Certificate of Title No. T-57 10.
traditional sense, did fall under this exempt category.
Unknown to Lepanto Consolidated Mining Company, OCT No. 0-381 was
It does not admit of doubt that if a foreign country is to be identified with a already declared null and void and was ordered cancelled by the then Court
state, it is required in line with Pound's formulation that it be a politically of First Instance of La Union, in its order dated February 1, 1963. The
organized sovereign community independent of outside control bound by decision of the CFI became final and executor on October 23, 1973.
ties of nationhood, legally supreme within its territory, acting through a
government functioning under a regime of law. It is thus a sovereign person On April 21, 1999 (24 years after), the Office of the Solicitor General, after
with the people composing it viewed as an organized corporate society being notified that the aforesaid order remained unexecuted despite the writ
under a government with the legal competence to exact obedience its of execution issued by the trial court, filed a complaint for revival of
commands. It has been referred to as a body-politic organized by judgment and cancellation of titles before the Regional Trial Court of San
common consent for mutual defense and mutual safety and to Fernando, La Union.
promote the general welfare. Correctly has it been described as "the
juridical personification of the nation." This is to view it in the light its Petitioner Shipside, Inc. moved to dismiss the complaint, alleging, among
historical development. The stress is on its being a nation, its people others that the respondent Republic was not the real party-in-
occupying a definite territory, politically organized, exercising by means of interest and that the cause of action was already barred by
its government its sovereign will over the individuals within it and prescription (impt contentions). The trial court denied petitioner's
maintaining its separate international personality. It is a territorial society motion to dismiss and its motion for reconsideration was likewise turned
divided into government and subjects, claiming within its allotted area a down. Petitioner elevated the matter to the Court of Appeals through
supremacy over all other institutions. It is the power entrusted to its petition for certiorari and prohibition. The appeal court denied the petition as
government to maintain within its territory the conditions of a legal order well as the motion for reconsideration.
and to enter into international relations. With the latter requisites satisfied,
international law does not exact independence as a condition of statehood. Other contentions of Petitioner are as follows:
(1) the complaint stated no cause of action because only final and executory
SHIPSIDE INC. VS CA judgments may be subject of an action for revival of judgment;
G.R. No. 143377, February 20, 2001 (2) the plaintiff is not the real party-in-interest because the real property
covered by the Torrens titles sought to be cancelled, allegedly part of Camp
DOCTRINE: Wallace (Wallace Air Station), were under the ownership and administration
of the Bases Conversion Development Authority (BCDA) under Republic Act
The Republic of the Philippines cannot be barred by the rules on prescription No. 7227;
(3) plaintiff's cause of action is barred by prescription;
BCDA is not a mere agency of the Government but a corporate body (4) twenty-five years having lapsed since the issuance of the writ of
performing proprietary BCDA is not a mere agency of the Government but a execution, no action for revival of judgment may be instituted because

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

under Paragraph 3 of Article 1144 of the Civil Code, such action may be apply to corporations or artificial bodies created by the State for
brought only within ten (10) years from the time the judgment had been special purposes, it being said that when the title of the Republic
rendered. has been divested, its grantees, although artificial bodies of its own
creation, are in the same category as ordinary persons
ISSUE:
The BCDA is an entity invested with a personality separate and distinct from
1. WON the Republic of the Philippines can maintain the action for the government. Section 3 of Republic Act No. 7227 reads:
revival of judgment in this case.
2. WON Republic can be barred by extinctive prescription. SECTION 3. Creation of the Bases Conversion and Development Authority.
There is hereby created a body corporate to be known as the Conversion
HELD: Authority which shall have the attribute of perpetual succession and shall be
vested with the powers of a corporation.
No to (1) and (2)
It may not be amiss to state at this point that the functions of government
As a general rule, it is plain that an action for revival of judgment must be have been classified into governmental or constituent and proprietary or
brought within ten years from the time said judgment becomes final. Taking ministrant. While public benefit and public welfare, particularly, the
these 2 provisions in consideration: promotion of the economic and social development of Central Luzon, may be
1. Article 1144(3) provides that an action upon a judgment "must be attributable to the operation of the BCDA, yet it is certain that the
brought within 10 years from the time the right of action accrues." functions performed by the BCDA are basically proprietary in
2. Section 6, Rule 39 provides that a final and executory judgment or nature. The promotion of economic and social development of Central
order may be executed on motion within five (5) years from the Luzon, in particular, and the country's goal for enhancement, in general, do
date of its entry, but that after the lapse of such time, and before it not make the BCDA equivalent to the Government. Other corporations have
is barred by the statute of limitations, a judgment may be enforced been created by government to act as its agents for the realization of its
by action. programs, the SSS, GSIS, NAWASA and the NIA, to count a few, and yet,
the Court has ruled that these entities, although performing functions aimed
But this rule on prescription does not run against the state. at promoting public interest and public welfare, are not government-function
corporations invested with governmental attributes. It may thus be said
While it is true that prescription does not run against the State, the same that the BCDA is not a mere agency of the Government but a
may not be invoked by the government in this case since it is no longer corporate body performing proprietary functions.
interested in the subject matter. While Camp Wallace may have belonged to
the government at the time Rafael Galvez's title was ordered cancelled in By raising the claim of imprescriptibility, a claim which cannot be raised by
Land Registration Case No. N-361, the same no longer holds true today. the BCDA, the Government not only assists the BCDA. Moreover, to
recognize the Government as a proper party to sue in this case would set a
Why? Because R.A 7227 and Proc. No. 216 transferred Wallace Air bad precedent as it would allow the Republic to prosecute, on behalf of
Bases/Areasor simply called military reservations to Bases and Conversion government-owned or controlled corporations, causes of action which have
Development Authority (BCDA). With the transfer of Camp Wallace to the already prescribed, on the pretext that the Government is the real party in
BCDA, the government no longer has a right or interest to protect. interest against whom prescription does not run, said corporations having
Consequently, the Republic is not a real party in interest and it may not been created merely as agents for the realization of government programs.
institute the instant action. Nor may it raise the defense of imprescriptibility,
the same being applicable only in cases where the government is a party in Addl info: Since the portion in dispute now forms part of the property
interest. owned and administered by the Bases Conversion and Development
Authority, it is alienable and registerable real property.
The rule that prescription does not run against the State does not

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

The civil case filed by RP is ordered dismissed w/o prejudice to the right of
BCDA to institute proper action. HELD:

MELCHORA CABANAS vs. FRANCISCO PILAPIL Yes. The Court adheres to the concept that the judiciary, as an agency of
G.R. No. L-25843. July 25, 1974 the State acting as parens patriae, is called upon whenever a pending suit of
Gatacelo litigation affects one who is a minor to accord priority to his best interest.
Certainly the judiciary as the instrumentality of the State in its role of parens
DOCTRINE: patriae cannot remain insensible to the validity of the mothers plea. The
United States Supreme Court opines: "This prerogative of parens patriae is
This prerogative of parens patriae is inherent in the supreme power of every inherent in the supreme power of every State, whether that power is lodged
Stat. The judiciary, as an agency of the State acting as parens patriae, is in a royal person or in the legislature, and has no affinity to those arbitrary
called upon whenever a pending suit of litigation affects one who is a minor powers which are sometimes exerted by irresponsible monarchs to the great
to accord priority to his best interest. detriment of the people and the destruction of their liberties." What is more,
there is this constitutional provision vitalizing this concept. It reads: "The
FACTS: State shall strengthen the family as a basic social institution." If, as the
Constitution so wisely dictates, it is the family as a unit that has to be
The insured, Florentino Pilapil had a child, Millian Pilapil, with a married strengthened, it does not admit of doubt that even if a stronger case were
woman, the plaintiff, Melchora Cabanas. She was ten years old. The presented for the uncle, still deference to a constitutional mandate would
defendant, Francisco Pilapil, is the brother of the deceased. have led the lower court to decide as it did.

The deceased insured himself and instituted as beneficiary, his child, with ANASTACIO LAUREL vs. ERIBERTO MISA
his brother to act as trustee during her minority. Upon his death, the G.R. No. L-409, January 30, 1947
proceeds were paid to him. Hence this complaint by the mother, with whom
the child is living, seeking the delivery of such sum. She filed the bond DOCTRINE:
required by the Civil Code. Defendant would justify his claim to the retention
of the amount in question by invoking the terms of the insurance policy. Military occupant cannot repeal or suspend operation of law of treason.

Trial Court: judgment ordering the defendant to deliver the proceeds of the Facts:
policy in question to plaintiff. Articles 320 provides: "The father, or in his
absence the mother, is the legal administrator of the property pertaining to Laurel, a Filipino citizen, was arrested in Camarines Sur by the United States
the child under parental authority. If the property is worth more than two Army and was interned under a commitment order "for his active
thousand pesos, the father or mother shall give a bond subject to the collaboration with the Japanese during the Japanese occupation," but in
approval of the Court of First Instance. Article 321 states: "The property September, 1945, he was turned over to the Commonwealth Government,
which the unemancipated child has acquired or may acquire with his work or and since then has been under the custody of the respondent Director of
industry, or by any lucrative title, belongs to the child in ownership, and in Prisons.
usufruct to the father or mother under whom he is under parental authority
and whose company he lives; . . ." The Court denied the petition for habeas corpus filed by Laurel (this was
discussed in another case). Laurel posited the theory that a Filipino citizen
ISSUE: who adhered to the enemy giving the latter aid and comfort during the
Japanese occupation cannot be prosecuted for the crime of treason defined
WON the doctrine of parens patriae finds application in this case. and penalized by article 114 of the Revised Penal Code, for the reason (1)
[Walang discussion sa facts kung ano contentions ng parties; bigla na lang that the sovereignty of the legitimate government in the Philippines and,
sumulpot yang parens patriae na yan, ganyan.] consequently, the correlative allegiance of Filipino citizens thereto was then

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

suspended; and (2) that there was a change of sovereignty over these not demand from him a positive action, but only passive attitude or
Islands upon the proclamation of the Philippine Republic: forbearance from adhering to the enemy by giving the latter aid and
comfort, the occupant has no power, as a corollary of the preceding
ISSUE: consideration, to repeal or suspend the operation of the law of treason.

WON the law on treason is suspended in times of belligerent occupation. Adoption of the petitioner's theory of suspended allegiance would lead to
disastrous consequences for small and weak nations or states, and would be
HELD: repugnant to the laws of humanity and requirements of public conscience,
for it would allow invaders to legally recruit or enlist the Quisling inhabitants
No. A citizen or subject owes, not a qualified and temporary, but an absolute of the occupied territory to fight against their own government without the
and permanent allegiance, which consists in the obligation of fidelity and latter incurring the risk of being prosecuted for treason, and even compel
obedience to his government or sovereign. The absolute and permanent those who are not to aid them in their military operation against the
allegiance of the inhabitants of a territory occupied by the enemy to their resisting enemy forces in order to completely subdue and conquer the whole
legitimate government or sovereign is not abrogated or severed by the nation, and thus deprive them all of their own independence or sovereignty
enemy occupation, because the sovereignty of the government or sovereign such theory would sanction the action of invaders in forcing the people of
de jure is not transferred thereby to the occupier. The subsistence of the a free and sovereign country to be a party in the nefarious task of depriving
sovereignty of the legitimate government in a territory occupied by the themselves of their own freedom and independence and repressing the
military forces of the enemy during a war, "although the former is in fact exercise by them of their own sovereignty; in other words, to commit a
prevented from exercising the supremacy over them" is one of the "rules of political suicide.
international law of our times."
Just as treason may be committed against the Federal as well as against the
The words "temporary allegiance," as descriptive of the relations borne by State Government, in the same way treason may have been committed
the inhabitants of the territory occupied by the enemy toward the military during the Japanese occupation against the sovereignty of the United States
government established over them, may, at most, be considered similar to as well as against the sovereignty of the Philippine Commonwealth; and that
the temporary allegiance which a foreigner owes to the government or the change of our form of government from Commonwealth to Republic
sovereign of the territory wherein he resides in return for the protection he does not affect the prosecution of those charged with the crime of treason
receives and does not do away with the absolute and permanent allegiance committed during the Commonwealth, because it is an offense against the
which the citizen residing in a foreign country owes to his own government same government and the same sovereign people, for Article XVIII of our
or sovereign. Constitution provides that: "The government established by this Constitution
shall be known as the Commonwealth of the Philippines. Upon the final and
Just as a citizen or subject of a government or sovereign may be prosecuted complete withdrawal of the sovereignty of the United States and the
for and convicted of treason committed in a foreign country, in the same proclamation of Philippine Independence, the Commonwealth of the
way an inhabitant of a territory occupied by the military forces of the enemy Philippines shall thenceforth be known as the Republic of the Philippines."
may commit treason against his own legitimate government or sovereign if
he adheres to the enemies of the latter by giving them aid and comfort. N.B. Although the military occupant is enjoined to respect or continue in
Article 114 of the Revised Penal Code, was applicable to treason committed force, unless absolutely prevented by the circumstances, those laws that
against the national security of the legitimate government, because the enforce public order and regulate the social and commercial life of the
inhabitants of the occupied territory were still bound by their allegiance to country, he has, nevertheless, all the powers of a de facto government and
the latter during the enemy occupation. may, at his pleasure, either change the existing laws or make new ones
when the exigencies of the military service demand such action, that is,
In short, military occupant cannot repeal or suspend operation of law of when it is necessary for the occupier to do so for the control of the country
treason. Since the preservation of the allegiance or the obligation of fidelity and the protection of his army, subject to the restrictions or limitations
and obedience of a citizen or subject to his government or sovereign does

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

imposed by the Hague Regulations, the usages established by civilized ISSUE:


nations, the laws of humanity and the requirements of public conscience.
1. WON the Constitution of the Commonwealth or of Republic should
WILLIAM F. PERALTA vs. THE DIRECTOR OF PRISONS be applied.
G.R. No. L-49, November 12, 1945 2. WON the (a) court, (b) summary procedure, and (c) Act 65 are
valid under the laws of nation.
DOCTRINE: 3. WON reoccupation renders the subject act invalid.

During a belligerent occupation, the political laws of the occupied territory


are merely suspended, subject to revival under the principle of jus HELD:
postliminium upon the end of the occupation. But non-political laws are 1. No. As the so-called Republic of the Philippines was a de
deemed continued unless changed by the belligerent occupant since they facto government of the second kind (of paramount force --
are intended to govern the relations of individuals as among themselves. existence is maintained by active military power within the
territories, and against the rightful authority of an established and
FACTS: lawful government|), the questions involved in the present case
cannot be decided in the light of the Constitution of the
Peralta, a member of the Metropolitan Constabulary of Manila, was Commonwealth Government, because the belligerent occupant was
prosecuted for the crime of robbery pursuant to Act 65 (issued during the totally independent of the constitution of the occupied territory in
Japanese occupation). He was found guilty and sentenced to life carrying out the administration over said territory.
imprisonment by the Court of Special and Exclusive Criminal Jurisdiction,
created in section 1 of Ordinance No. 7 promulgated by the President of the The Constitution of the so-called Republic of the Philippines can
so-called Republic of the Philippines. neither be applied, since the validity of an act of a belligerent
occupant cannot be tested in the light of another act of the same
Peralta filed a petition for habeas corpus on the ground that the Court of occupant, whose criminal jurisdiction is drawn entirely from the law
Special and Exclusive Criminal Jurisdiction "was a political instrumentality of martial as defined in the usages of nations. The government
the military forces of the Japanese Imperial Army, the aims and political established over an enemy's territory during the military occupation
purposes of the Commonwealth of the Philippines, as well as those of the may exercise all the powers given by the laws of war to the
United States of America, and therefore, null and void ab initio", and he is conqueror over the conquered, and is subject to all restrictions
being punished by a law created to serve the political purpose of the which that code imposes. Its character is the same and the source
Japanese Imperial Army in the Philippines. of its authority the same. In either case it is a government imposed
by the laws of war, and so far as it concerns the inhabitants of
The Solicitor General supports Peralta and states that Court of Special such territory or the rest of the world, those laws alone determine
and Exclusive Criminal Jurisdiction created and the summary procedure the legality or illegality of its acts.
prescribed therefor are tinged with political complexion, do not afford a fair
trial, violate the Constitution of the Commonwealth, and impair the The so-called Republic of the Philippines, apparently established
constitutional rights of accused persons under their legitimate Constitution. and organized as a sovereign state independent from any other
government by the Filipino people, was in truth and reality, a
Some of the features of the summary procedure are: that the court may government established by the belligerent occupant or the
interrogate the accused and witnesses before trial in order to clarify the Japanese forces of occupation.
points in dispute; that the refusal of the accused to answer the questions
may be considered unfavorable to him, among others. 2. Yes.
a. The so called Republic of the Philippines, being a governmental
instrumentality of the belligerent occupant, had the power or was

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

competent to create the Court of Special and Exclusive Criminal 3. Yes. During a belligerent occupation, the political laws of the
Jurisdiction. No question may arise as to whether or not a court is occupied territory are merely suspended, subject to revival under
of a political complexion, for it is a mere governmental agency the principle of jus postliminium upon the end of the occupation.
charged with the duty of applying the law to cases falling within its But non-political laws are deemed continued unless changed by the
jurisdiction. Its judgments and sentences may be of political belligerent occupant since they are intended to govern the relations
complexion or not depending upon the nature or character of the of individuals as among themselves.
law so applied.
Most acts penalized by Act 65 were political in nature. Peralta was
b. There is also no question as to the power or competence of the prosecuted for robbery connected with the supervision, control and
belligerent occupant to promulgate the law providing for such distribution of foods and other necessaries. The law effectively
procedure. The only restrictions or limitations imposed upon the penalized the robbery of its food resources by its enemies,
power of a belligerent occupant to alter the laws or promulgate particularly the guerrillas. The SC said that such offense is political
new ones, especially the criminal law as well as the laws regarding in nature.
procedure, so far as it is necessary for military purposes, that is, for
his control of the territory and the safety and protection of his All judgments of political nature of the courts during the Japanese
army, are those imposed by the Hague Regulations, the usages regime ceased to be valid upon the restoration of the national
established by civilized nations, the laws of humanity and the government by virtue of the principle of postliminium. Though no
requirements of public conscience. It is obvious that the summary redress can be claimed by the prisoner as to the sentence he has
procedure under consideration does not violate these precepts. It already served, the law that convicted him has also ceased validity.
cannot be considered as violating the laws of humanity and public As such the detained prisoner must be released. The writ of habeas
conscience, for it is less objectionable, even from the point of view corpus was granted.
of those who are used to the accusatory system of criminal
procedure, than the procedural laws based on the semi-inquisitorial Postliminium a principle of public international law that provides
or mixed system prevailing in France and other countries in for the invalidity of all illegitimate acts that an occupant may have
continental Europe. performed on a given territory after its recapture by the legitimate
sovereign.
c. It was within the power and competence of the belligerent
occupant to promulgate, through the National Assembly of the so- SOUTHEAST ASIAN FISHERIES DEVELOPMENT CENTER-
called Republic of the Philippines, Act No. 65 of the said Assembly, AQUACULTURE DEPARTMENT (SEAFDEC-AQD) vs. NLRC
which penalizes the crimes of robbery and other offenses as new G.R. No. 86773. February 14, 1992; 206 SCRA 283
crimes and offenses demanded by military necessity, incident to a LAZARO
state of war, and necessary for the control of the country by the
belligerent occupant, the protection and safety of the army of DOCTRINE:
occupation, its support and efficiency, and the success of its
operations. They are not the same ordinary offenses penalized by International organizations enjoy immunity from local jurisdiction.
the Revised Penal Code. The act aims to prevent food and other
necessaries from reaching the "guerrillas" which were harassing the FACTS:
belligerent occupant from every nook and corner of the country
and to preserve the food supply and other necessaries in order that SEAFDEC-AQD is a department of an international organization, the
in case of necessity, the Imperial Japanese forces could easily Southeast Asian Fisheries Development Center, organized through an
requisition them. agreement entered into in Bangkok, Thailand on December 28, 1967 by the
governments of Malaysia, Singapore, Thailand, Vietnam, Indonesia and the
Philippines with Japan as the sponsoring country.

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

their own.
On April 20, 1975, private respondent Juvenal Lazaga was employed as a
Research Associate on a probationary basis by the SEAFDEC-AQD and was Pursuant to its being a signatory to the Agreement, the Republic of the
appointed Senior External Affairs Officer on January 5, 1983. Thereafter, he Philippines agreed to be represented by one Director in the governing
was appointed to the position of Professional III and designated as Head of SEAFDEC Council and that its national laws and regulations shall apply only
External Affairs Office with the same pay and benefits. insofar as its contribution to SEAFDEC of "an agreed amount of money,
movable and immovable property and services necessary for the
On May 8, 1986, petitioner Lacanilao in his capacity as Chief of SEAFDEC- establishment and operation of the Center" are concerned. It expressly
AQD sent a notice of termination to private respondent informing him that waived the application of the Philippine laws on the disbursement of funds
due to the financial constraints being experienced by the department, his of petitioner SEAFDEC-AQD.
services shall be terminated at the close of office hours on May 15, 1986
and that he is entitled to separation benefits equivalent to one (1) month of One of the basic immunities of an international organization is immunity
his basic salary for every year of service plus other benefits. Because of from local jurisdiction, i.e., that it is immune from the legal writs and
petitioner's failure to pay private respondent his separation pay, the latter processes issued by the tribunals of the country where it is found. The
filed on March 18, 1987 a complaint against petitioners for non-payment of obvious reason for this is that the subjection of such an organization to the
separation benefits plus moral damages and attorney's fees with the authority of the local courts would afford a convenient medium thru which
Arbitration Branch of the NLRC. the host government may interfere in their operations or even influence or
control its policies and decisions of the organization: besides, such
PETITIONER'S ALLEGATION: NLRC has no jurisdiction over the case subjection to local jurisdiction would impair the capacity of such body to
inasmuch as the SEAFDEC-AQD is an international organization and that discharge its responsibilities impartially on behalf of its member-state.
private respondent must first secure clearances from the proper
departments for property or money accountability before any claim for MINUCHER vs. CA
separation pay will be paid, and which clearances had not yet been obtained G.R. No. 142396. February 11, 2003
by the private respondent.
DOCTRINE:
LABOR ARBITER AND NLRC: ruled in favor of private respondent.
IF THE ACTS GIVING RISE TO A SUIT ARE THOSE OF A FOREIGN
ISSUE: GOVERNMENT DONE BY ITS FOREIGN AGENT, ALTHOUGH NOT
NECESSARILY A DIPLOMATIC PERSONAGE, BUT ACTING IN HIS OFFICIAL
WON NLRC has jurisdiction over petitioner. CAPACITY, THE COMPLAINT COULD BE BARRED BY THE IMMUNITY OF THE
FOREIGN SOVEREIGN FROM SUIT WITHOUT ITS CONSENT.
HELD:
FACTS:
No. Being an intergovernmental organization, SEAFDEC including its
Departments (AQD) (established in Iloilo), enjoys functional independence Petitioner Khosrow Minucher, an Iranian national, was charged for violation
and freedom from control of the state in whose territory its office is located. of Section 4 of Republic Act No. 6425, otherwise known as the "Dangerous
Permanent international commissions and administrative bodies have been Drugs Act of 1972." The narcotic agents who raided the house of Minucher
created by the agreement of a considerable number of States for a variety were accompanied by private respondent Arthur Scalzo. Minucher was
of international purposes, economic or social and mainly non-political. In so acquitted by the trial court of the charges. Minucher filed a civil case before
far as they are autonomous and beyond the control of any one State, they the Regional Trial Court of Manila for damages on account of what he
have a distinct juridical personality independent of the municipal law of the claimed to have been trumped-up charges of drug trafficking made by
State where they are situated. As such, according to one leading authority Arthur Scalzo. Scalzo filed a motion to dismiss the complaint on the ground
they must be deemed to possess a species of international personality of that, being a special agent of the United States Drug Enforcement

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

Administration, he was entitled to diplomatic immunity. Philippine Department of Foreign Affairs and the United States Embassy, as
well as the participation of members of the Philippine Narcotics Command in
ISSUE: the "buy-bust operation" conducted at the residence of Minucher at the
behest of Scalzo, may be inadequate to support the "diplomatic status" of
WON private respondent Scalzo, although he cannot invoke diplomatic the latter but they give enough indication that the Philippine government
immunity (kasi di nya na-prove yung diplomatic status nya), can invoke the has given its imprimatur, if not consent, to the activities within Philippine
defense of state immunity from suit. territory of agent Scalzo of the United States Drug Enforcement Agency. The
job description of Scalzo has tasked him to conduct surveillance on
HELD: suspected drug suppliers and, after having ascertained the target, to inform
local law enforcers who would then be expected to make the arrest. In
Yes. While the diplomatic immunity of Scalzo might thus remain contentious, conducting surveillance activities on Minucher, later acting as the poseur-
it was sufficiently established that, indeed, he worked for the United States buyer during the buy-bust operation, and then becoming a principal witness
Drug Enforcement Agency and was tasked to conduct surveillance of in the criminal case against Minucher, Scalzo hardly can be said to have
suspected drug activities within the country on the dates pertinent to this acted beyond the scope of his official function or duties. All told, this Court is
case. If it should be ascertained that Arthur Scalzo was acting well within his constrained to rule that respondent Arthur Scalzo, an agent of the United
assigned functions when he committed the acts alleged in the complaint, the States Drug Enforcement Agency allowed by the Philippine government to
present controversy could then be resolved under the related doctrine of conduct activities in the country to help contain the problem on the drug
State Immunity from Suit. The precept that a State cannot be sued in the traffic, is entitled to the defense of state immunity from suit.
courts of a foreign state is a long-standing rule of customary international
law then closely identified with the personal immunity of a foreign sovereign PHILIPPINE TOURISM AUTHORITY vs. PGDE
from suit and, with the emergence of democratic states, made to attach not 668 SCRA 406 G.R. No. 176628. March 19, 2012
just to the person of the head of state, or his representative, but also
distinctly to the state itself in its sovereign capacity. If the acts giving rise to DOCTRINE:
a suit are those of a foreign government done by its foreign agent, although
not necessarily a diplomatic personage, but acting in his official capacity, the The application of state immunity is proper only when the proceedings arise
complaint could be barred by the immunity of the foreign sovereign from out of sovereign transactions and not in cases of commercial activities or
suit without its consent. Suing a representative of a state is believed to be, economic affairs.
in effect, suing the state itself. The proscription is not accorded for the
benefit of an individual but for the State, in whose service he is, under the FACTS:
maxim par in parem, non habet imperium that all states are sovereign
equals and cannot assert jurisdiction over one another. The implication, in PTA, an agency of the Department of Tourism, whose main function is to
broad terms, is that if the judgment against an official would require the bolster and promote tourism, entered into a contract with Atlantic Erectors,
state itself to perform an affirmative act to satisfy the award, such as the Inc. (AEI) for the construction of the Intramuros Golf Course Expansion
appropriation of the amount needed to pay the damages decreed against Projects for a contract price of P57,954,647.94. The civil works of the
him, the suit must be regarded as being against the state itself, although it project commenced. Since AEI was incapable of constructing the golf course
has not been formally impleaded. aspect of the project, it entered into a sub-contract agreement with
PHILGOLF, a duly organized domestic corporation, to build the golf course
A foreign agent, operating within a territory, can be cloaked with immunity amounting to P27,000,000.00. The sub-contract agreement also provides
from suit but only as long as it can be established that he is acting within that PHILGOLF shall submit its progress billings directly to PTA and, in turn,
the directives of the sending state. The consent of the host state is an PTA shall directly pay PHILGOLF. PHILGOLF filed a collection suit against
indispensable requirement of basic courtesy between the two sovereigns. PTA amounting to P11,820,550.53, plus interest, for the construction of the
The official exchanges of communication between agencies of the golf course. PTA, as a government entity, invokes its state immunity.
government of the two countries, certifications from officials of both the

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

ISSUE: Rizal for the foreclosure of the real estate mortgage executed by the
plaintiffs on the ground, among others:
WON PTA can invoke state immunity.
'That the conditions of the mortgage have been broken since October, 1967
HELD: with the default on the part of the mortgagor to pay in full the
installments then due and payable on the principal debt and the interest
No. The application of state immunity is proper only when the proceedings thereon, and, all of the monthly installments due and payable thereafter up
arise out of sovereign transactions and not in cases of commercial activities to the present date
or economic affairs. The State, in entering into a business contract,
descends to the level of an individual and is deemed to have tacitly given its The Cruz spouses, together with their daughter Lorna C. Cruz, instituted
consent to be sued. Since the Intramuros Golf Course Expansion Projects before the Court of First Instance of Rizal an action for damages and
partakes of a proprietary character entered into between PTA and attorney's fees against the Social Security System (SSS) and the Provincial
PHILGOLF, PTA cannot avoid its financial liability by merely invoking Sheriff of Rizal, alleging, among other things, that they had fully and
immunity from suit. religiously paid their monthly amortizations and had not defaulted in any
payment.
SSS VS. COURT OF APPEALS
The Trial Court rendered judgment against SSS directing it to pay damages
G.R. No. L-41299. February 21, 1983.
in favor of the plaintiff spouses. On appeal, the CA affirmed the lower courts
Muez
decision. Hence, the instant petition.
DOCTRINE:
SSS contends, among others, that it is not liable for damages not
being a profit-oriented governmental institution but one
SSS' own organic act specifically provides that it can sue and be sued in
performing governmental functions.
Court. These words "sue and be sued" embrace all civil process incident to a
legal action. So that, even assuming that the SSS, as it claims, enjoys
ISSUE:
immunity from suit as an entity performing governmental functions, by
virtue of the explicit provision of the aforecited enabling law, the
WON SSS can be made legally responsible for its acts through a judicial
Government must be deemed to have waived immunity in respect of the
action.
SSS, although it does not thereby concede its liability.
HELD:
FACTS:
Yes. SSS can be made legally responsible for its acts through a judicial
Sometime in March, 1963 the spouses David B. Cruz and Socorro
action.
Concio Cruz applied for and were granted a real estate loan by the SSS
with their residential lot located in Rizal as collateral. The spouses executed
To our minds, there should be no question on this score considering that
on March 26, 1963 the corresponding real estate mortgage. From the
the SSS is a juridical entity with a personality of its own. It has corporate
proceeds of the real estate loan the mortgagors constructed their residential
powers separate and distinct from the Government. SSS' own organic act
house on the mortgaged property and were furnished by the SSS with a
specifically provides that it can sue and be sued in Court. These
passbook to record the monthly payments of their amortizations. The
words "sue and be sued" embrace all civil process incident to a
mortgagors, plaintiffs herein, complied with their monthly payments
legal action. So that, even assuming that the SSS, as it claims,
although there were times when delays were incurred in their monthly
enjoys immunity from suit as an entity performing governmental
payments which were due every first five (5) days of the month. On July 9,
functions, by virtue of the explicit provision of the aforecited
1968, defendant SSS filed an application with the Provincial Sheriff of
enabling law, the Government must be deemed to have waived

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

immunity in respect of the SSS, although it does not thereby sued without its consent, much less over its objection.
concede its liability. That statutory law has given to the private citizen a
remedy for the enforcement and protection of his rights. The SSS thereby FACTS:
has been required to submit to the jurisdiction of the Courts, subject to its
right to interpose any lawful defense. Whether the SSS performs Respondent Bureau of Printing Employees Association (NLU) filed a
governmental or proprietary functions thus becomes unnecessary to complaint alleging that Serafin Salvador (Acting Secretary of the Dept. of
belabor. For by that waiver, a private citizen may bring a suit against it for General Services) and Mariano Ledesma (Director of the Bureau of
varied objectives, such as, in this case, to obtain compensation in damages Printing) have been engaging in unfair labor practice by interfering with,
arising from contract, and even for tort. or coercing the employees of the Bureau of Printing, particularly the
members of the complaining association, in the exercise of their right to self-
The proposition that the SSS is not profit-oriented was rejected in the case organization and discriminating in regard to hire and tenure of their
of SSS Employees' Association vs. Hon. Soriano. But even conceding that the employment in order to discourage them from pursuing their union
SSS is not, in the main, operated for profit, it cannot be denied that, in so activities.
far as contractual loan agreements with private parties are concerned, the
SSS enters into them for profit considering that the borrowers pay interest, Answering the complaint, the petitioners Bureau of Printing, Serafin Salvador
which is money paid for the use of money, plus other charges. and Mariano Ledesma denied the charges of unfair labor practices attributed
What is of paramount importance in this controversy is that an injustice is to them and prayed that the case be dismissed for lack of jurisdiction.
not perpetrated and that when damage is caused to a citizen, the latter
should have a right of redress particularly when it arises from a purely Petitioners, by way of affirmative defenses, alleged, among other things,
private and contractual relationship between said individual and the System. that:
1. that the Bureau of Printing has no juridical personality to sue and
The SC ruled that there was clear negligence on the part of SSS when they be sued;
mistook the loan account of Socorro J. Cruz for that of private respondent 2. that said Bureau of Printing is not an industrial concern engaged for
Socorro C. Cruz. Its attention was called to the error, but it adamantly the purpose of gain but is an agency of the Republic performing
refused to acknowledge its mistake. The SSS can be held liable for governmental functions
nominal damages. This type of damages is not for the purpose of
indemnifying private respondents for any loss suffered by them but to The trial judge of the Industrial Court sustained the jurisdiction of
vindicate or recognize their rights which have been violated or invaded by the court on the theory that the functions of the Bureau of Printing are
petitioner SSS. As to all other damages, the SC deleted them for lack of "exclusively proprietary in nature," and, consequently, denied the
basis. prayer for dismissal.

BUREAU OF PRINTING VS. THE BUREAU OF PRINTING EMPLOYEES Petitioners brought the case to this court through the present petition for
ASSOCIATION (NLU) certiorari and prohibition.
G.R. No. L-15751. January 28, 1961.
ISSUE:
DOCTRINE:
WON Court of Industrial Relations acquired jurisdiction over the petitioner
The Bureau of Printing is an office of the Government created by the Bureau of Printing.
Administrative Code of 1916. Indeed, as an office of the Government,
without any corporate or juridical personality, the Bureau of Printing cannot HELD:
be sued. Any suit, action or proceeding against it, if it were to produce any
effect, would actually be a suit, action or proceeding against the No. The CIR did not acquire jurisdiction over the petitioner Bureau of
Government itself, and the rule is settled that the Government cannot be Printing.

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

correspondent appropriation as required by law. The functions and public


The Bureau of Printing is an office of the Government created by the services rendered by the State cannot be allowed to be paralyzed or
Administrative Code of 1916 (Act No. 2657). As such instrumentality of disrupted by the diversion of public funds from their legitimate and specific
the Government, it operates under the direct supervision of the Executive objects, as appropriated by law.
Secretary, Office of the President, and is "charged with the execution of all
printing and binding, including work incidental to those processes, required FACTS:
by the National Government and such other work of the same character as
said Bureau may, by law or by order of the (Secretary of Finance) Executive The Department of Agriculture (herein petitioner) and Sultan Security
Secretary, be authorized to undertake . . .." (Sec. 1644, Rev. Adm. Code.) It Agency entered into a contract for security services to be provided by
has no corporate existence, and its appropriations are provided for in the the latter to the said governmental entity. Pursuant to their arrangements,
General Appropriations Act. Designed to meet the printing needs of the guards were deployed by Sultan Agency in the various premises of the
Government, it is primarily a service bureau and is obviously, not petitioner. On 13 September 1990, several guards of the Sultan Security
engaged in business or occupation for pecuniary profit. Agency filed a complaint for underpayment of wages, non-payment of 13th
month pay, uniform allowances, night shift differential pay, holiday pay and
This Court has already held in a long line of decisions that the Industrial overtime pay, as well as for damages, before the Regional Arbitration
Court has no jurisdiction to hear and determine the complaint for Branch X of Cagayan de Oro City, against the Department of Agriculture and
unfair labor practice filed against institutions or corporations not Sultan Security Agency.
organized for profit and, consequently, not an industrial or
business organization. This is so because the Industrial Peace Act was The Executive Labor Arbiter rendered a decision on 31 May 1991, finding
intended to apply only to industrial employment, and to govern the relations herein petitioner jointly and severally liable with sultan Security Agency for
between employers engaged in industry and occupations for purposes of the payment of the money claims, aggregating P266,483.91, of the
gain, and their industrial employees. complainant security guards. The petitioner and Sultan Security Agency did
not appeal the decision of the Labor Arbiter. Thus, the decision became final
Indeed, as an office of the Government, without any corporate or and executory.
juridical personality, the Bureau of Printing cannot be sued. (Sec. 1,
Rule 3, Rules of Court.) Any suit, action or proceeding against it, if it The Labor Arbiter issued a writ of execution, commanding the City Sheriff to
were to produce any effect, would actually be a suit, action or enforce and execute the judgment against the property of the two
proceeding against the Government itself, and the rule is settled respondents. The City Sheriff levied on execution the motor vehicles of the
that the Government cannot be sued without its consent, much petitioner, i.e., one unit Toyota Hi-Ace, one unit Toyota Mini Cruiser, and
less over its objection. one unit Toyota Crown.

DEPARTMENT OF AGRICULTURE VS. NLRC A petition for injunction, prohibition and mandamus, with prayer for
G.R. No. 104269. November 11, 1993. preliminary writ of injunction, was filed by the petitioner with the National
Labor Relations Commission ("NLRC"), Cagayan de Oro. The petition was
DOCTRINE: dismissed for lack of basis.

Where the State gives its consent to be sued by private parties either by Petitioner filed the instant Petition for Certiorari. Petitioner asserts the NLRC
general or special law, it may limit claimant's action "only up to the has disregarded the cardinal rule on the non-suability of the State.
completion of proceedings anterior to the stage of execution" and that the The private respondents, on the other hand, argue that the petitioner has
power of the Courts ends when the judgment is rendered, since government impliedly waived its immunity from suit by concluding a service contract with
funds and properties may not be seized under writs of execution or Sultan Security Agency.
garnishment to satisfy such judgments, is based on obvious considerations
of public policy. Disbursements of public funds must be covered by the

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

activities or economic affairs. Stated differently, a State may be


ISSUE: said to have descended to the level of an individual and can
1. WON The Department of Agriculture is immune from suit pursuant thus be deemed to have tacitly given its consent to be sued
to the doctrine of Non-suability of the State. only when it enters into business contracts. It does not
2. WON a Writ of Execution may be issued against it. apply where the contracts relates to the exercise of its
sovereign functions.
HELD:
1. No. The doctrine only conveys, "the state may not be sued without In the instant case, the Department of Agriculture has not
its consent;" its clear import then is that the State may at times be pretended to have assumed a capacity apart from its being a
sued. governmental entity when it entered into the questioned contract;
2. No. When the State gives its consent to be sued, it does not nor that it could have, in fact, performed any act proprietary in
thereby necessarily consent to an unrestrained execution against it. character.

REASONS: But, be that as it may, the claims of private respondents, i.e., for
1. The rule, in any case, is not really absolute for it does not say that underpayment of wages, holiday pay, overtime pay and similar
the state may not be sued under any circumstance. On the other items, arising from the Contract for Security Services,
contrary, as correctly phrased, the doctrine only conveys, "the state clearly constitute money claims. Act No. 3083, gives the consent
may not be sued without its consent;" its clear import then is that of the State to be "sued upon any moneyed claim involving liability
the State may at times be sued. The States' consent may be given arising from contract, express or implied, . . ." Pursuant, however,
either expressly or impliedly. Express consent may be made to Commonwealth Act ("C.A.") No. 327, as amended by Presidential
through a general law or a special law. In this jurisdiction, the Decree ("P.D.") No. 1445, the money claim should first be
general law waiving the immunity of the state from suit is found in brought to the Commission on Audit.
Act No. 3083, (AN ACT DEFINING THE CONDITIONS UNDER 2. As to the Writ of Execution, when the State gives its consent to
WHICH THE GOVERNMENT OF THE PHILIPPINE ISLANDS MAY BE be sued, it does not thereby necessarily consent to an unrestrained
SUED, [1923]) , where the Philippine government "consents and execution against it. Tersely put, when the State waives its
submits to be sued upon any money claim involving liability arising immunity, all it does, in effect, is to give the other party an
from contract, express or implied, which could serve as a basis of opportunity to prove, if it can, that the State has a liability.
civil action between private parties." Implied consent, on the
other hand, is conceded when the State itself commences In Republic vs. Villasor this Court, in nullifying the issuance of an
litigation, thus opening itself to a counterclaim or when it alias writ of execution directed against the funds of the Armed
enters into a contract. In this situation, the government is Forces of the Philippines to satisfy a final and executory judgment,
deemed to have descended to the level of the other contracting has explained, thus
party and to have divested itself of its sovereign immunity. This
rule, relied upon by the NLRC and the private respondents, is not, The universal rule that where the State gives its consent to
however, without qualification. Not all contracts entered into be sued by private parties either by general or special law,
by the government operate as a waiver of its non-suability; it may limit claimant's action "only up to the completion of
distinction must still be made between one which is proceedings anterior to the stage of execution" and that
executed in the exercise of its sovereign functions and the power of the Courts ends when the judgment is
another which is done in its proprietary capacity. rendered, since government funds and properties may not be
seized under writs of execution or garnishment to satisfy such
In US vs Ruiz, This court held that: The restrictive application of judgments, is based on obvious considerations of public policy.
State immunity is proper only when the proceedings arise out of Disbursements of public funds must be covered by the
commercial transactions of the foreign sovereign, its commercial correspondent appropriation as required by law. The functions and

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

public services rendered by the State cannot be allowed to be


paralyzed or disrupted by the diversion of public funds from their ISSUE:
legitimate and specific objects, as appropriated by law.
W/N petitioners are covered under the state immunity doctrine

SANDERS vs. VERIDIANO HELD:


G.R. No. L-46930. June 10, 1988.
Murillo Yes. SC found the complained acts were done by petitioners in the discharge
of their official duties. Sanders, as director of the special services, had
DOCTRINE: supervision over its personnel, and had a hand in their employment, work
Acts of public officers in the discharge of their official duties are covered assignments, discipline, dismissal and other related matters. It is not
under the state immunity doctrine. disputed that the letter he had written was in fact a reply to a request from
his superior for more information regarding the case of the private
FACTS: respondents. As for Moreau, what he is claimed to have done was write the
Chief of Naval Personnel for concurrence with the conversion of the private
Sanders was the special services director of the U.S. Naval Station (NAVSTA) respondents' type of employment even before the grievance proceedings
in Olongapo City. Moreau was the commanding officer of the Subic Naval commenced. This act is clearly official in nature.
Base. Private respondents were both employed as gameroom attendants in
the special services department of the NAVSTA. On October 3, 1975, the Given the official character of the above-described letters, we have to
private respondents were advised that their employment had been conclude that the petitioners were, legally speaking, being sued as officers
converted from full-time part-time. Their reaction was to protest this of the United States government. As they have acted on behalf of that
conversion and to institute grievance proceedings under the U.S. government, and within the scope of their authority, it is that government,
Department of Defense. The result was a recommendation for the and not the petitioners personally, that is responsible for their acts. There
reinstatement of the private respondents to permanent full-time status plus should be no question by now that such complaint cannot prosper unless
backwages. the government sought to be held ultimately liable has given its consent to
be sued.
In a letter addressed to petitioners, Sanders disagreed with the said result
and asked for the rejection of the recommendation. The letter contained the REPUBLIC VS SANDOVAL
statements that: a) "Mr. Rossi tends to alienate most co-workers and G.R. No. 84607. March 19, 1993.
supervisors;" b) "Messrs. Rossi and Wyers have proven, according to their
immediate supervisors, to be difficult employees to supervise;" among DOCTRINE:
others.
The State's recommendation to indemnify the victims of a certain case does
The petitioners then claimed that the letters contained libelous imputations not amount to waiver of immunity from suits.
that had exposed them to ridicule and caused them mental anguish. The
private respondents also made it clear that the petitioners were being sued FACTS:
in their private or personal capacity. However, the petitioners argued that
the acts complained of were performed by them in the discharge of their Mendiola massacre. Basically, this was about the farmers' continuing
official duties and that, consequently, the court had no jurisdiction over struggle for genuine agrarian reform. In 1988, they held a massive rally -
them under the doctrine of state immunity. together with progressive groups and thousands of marchers - which
resulted to a deadly clash between civilians and military/policemen. 12 were
confirmed dead, all of whom were from the side of the protesting civilians.
Due to this, the commission formed by President Aquino (to probe the

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

incident) decided to make recommendations such as the prosecution of US. Respondent alleges that it won in the bidding conducted by the US for
erring officers, policemen, and civilians. the construction of wharves in said base that was merely awarded to
another group. For this reason, a suit for specific performance was filed by
The last and the most significant recommendation of the Commission was him against the US.
for the deceased and wounded victims of the Mendiola incident to be
compensated by the government. It was this portion where petitioners ISSUE:
invoke in their claim for damages from the government. The petitioners
were not able to recover anything from the government years after. W/N the US naval base, in bidding for said contracts, exercised
governmental functions to be able to invoke state immunity
ISSUE:
HELD:
W/N petitioners can sue the State for damages after said recommendation
Yes. The traditional role of the state immunity exempts a state from being
HELD: sued in the courts of another state without its consent or waiver. This rule is
necessary consequence of the principle of independence and equality of
No. The recommendation made by the Commission regarding states. However, the rules of international law are not petrified; they are
indemnification of the heirs of the deceased and the victims of the incident continually and evolving and because the activities of states have multiplied.
by the government does not in any way mean that liability automatically It has been necessary to distinguish them between sovereign and
attaches to the State. In effect, whatever may be the findings of the governmental acts and private, commercial and proprietory acts. The result
Commission, the same shall only serve as the cause of action in the event is that state immunity now extends only to sovereign and governmental
that any party decides to litigate his/her claim. Therefore, the Commission is acts.
merely a preliminary venue. The Commission is not the end in itself.
Whatever recommendation it makes cannot in any way bind the State In this case, the projects are integral part of the naval base which is devoted
immediately, such recommendation not having become final and executory. to the defense of both US and Philippines. Indisputably, it is a function of
This is precisely the essence of it being a fact-finding body. the government of the highest order. They are not utilized for, nor dedicated
Secondly, whatever acts or utterances that then President Aquino may have to commercial or business purposes.
done or said, the same are not tantamount to the State having waived its
immunity from suit. The President's act of joining the marchers, days after RCBC vs. De Castro
the incident, does not mean that there was an admission by the State of any G.R. No. L-34548. November 29, 1988
liability. GOMEZ

US vs RUIZ FACTS:
G.R. No. L-35645. May 22, 1985
In a civil case entitled Badoc Planters, Inc. vs. Phil. Virginia Tobacco
DOCTRINE: Administration, et al., the CFI of Rizal, Quezon City Branch IX issued an
Order (Partial Judgment) on January 15, 1970 by the then Presiding Judge
Acts devoted to essential aspects of the state are also covered under State San Diego. The said order required defendants to pay jointly and severally,
immunity the plaintiff Badoc Planters, Inc.

FACTS: Therafter, Judge San Diego was promoted as a Justice of the CA so herein
public respodent (Judge De Castro) took over and acted on the Urgent Ex-
The USA had a naval base in Subic, Zambales. The base was one of those Parte Motion filed by BADOC. Judge De Castro granted said Motion.
provided in the military bases agreement between the Philippines and the

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POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

Accordingly, the Branch Clerk of Court on the very same day, issued a Writ 4(h), R.A. No. 22651; and 3) generally, to exercise all the powers of a
of Execution addressed to Special Sheriff Faustino Rigor, who then issued a corporation under the Corporation Law, insofar as they are not inconsistent
Notice of Garnishment addressed to the General Manager and/or Cashier of with the provisions of this Act [Section 4(k), R.A. No. 2265.]
RCBC, requesting a reply within five (5) days to said garnishment as to any
property which the Philippine Virginia Tobacco Administration (PVTA) might From the foregoing, it is clear that PVTA has been endowed with a
have in the possession or control of petitioner or of any debts owing by the personality distinct and separate from the government which owns and
petitioner to said defendant. Upon receipt of such Notice, RCBC notified controls it. Accordingly, this Court has heretofore declared that the funds of
PVTA thereof to enable the PVTA to take the necessary steps for the the PVTA can be garnished since "funds of public corporation which can sue
protection of its own interest. and be sued were not exempt from garnishment."
In National Shipyards and Steel Corp. v. CIR [G.R. No. L-17874, August 31,
Respondent PVTA filed a Motion for Reconsideration which was eventually 1964, 8 SCRA 781], this Court held that the allegation to the effect that the
granted. The court set aside the Orders of Execution and of Payment and funds of the NASSCO are public funds of the government and that as such,
the Writ of Execution. It likewise ordered petitioner and BADOC "to restore, the same may not be garnished, attached or levied upon is untenable for, as
jointly and severally, the account of PVTA with the said bank in the same a government-owned or controlled corporation, it has a personality of its
condition and state it was before the issuance of the aforesaid Orders by own, distinct and separate from that of the government. This court has
reimbursing the PVTA of the amount of P 206, 916.76 with interests at the likewise ruled that other govemment-owned and controlled corporations like
legal rate from January 27, 1970 until fully paid to the account of the PVTA. National Coal Company, the National Waterworks and Sewerage Authority
(NAWASA), the National Coconut Corporation (NACOCO) the National Rice
The Motion for Reconsideration filed by herein petitioner was denied. It then and Corn Corporation (NARIC) and the Price Stabilization Council (PRISCO)
appealed to the CA. CA in turn certified this case to the SC as it involves which possess attributes similar to those of the PVTA are clothed with
purely questions of law. personalities of their own, separate and distinct from that of the government
[National Coal Company v. Collector of Internal Revenue, 46 Phil. 583
ISSUE: (1924); Bacani and Matoto v. National Coconut Corporation et al., 100 Phil.
471 (1956); Reotan v. National Rice & Corn Corporation, G.R. No. L-16223,
WON PVTA funds are public funds exempt from garnishment February 27, 1962, 4 SCRA 418.] The rationale in vesting it with a separate
personality is not difficult to find. It is well-settled that when the government
HELD: enters into commercial business, it abandons its sovereign capacity and is to
be treated like any other corporation [Manila Hotel Employees' Association v.
PVTA funds are subject to garnishment. Manila Hotel Co. and CIR, 73 Phil. 734 (1941).]

RA No. 2265 created the PVTA as an ordinary corporation with all the Inasmuch as the Tobacco Fund, a special fund, was by law, earmarked
attributes of a corporate entity subject to the provisions of the Corporation specifically to answer obligations incurred by PVTA in connection with its
Law. Hence, it possesses the power "to sue and be sued" and "to acquire proprietary and commercial operations authorized under the law, it follows
and hold such assets and incur such liabilities resulting directly from that said funds may be proceeded against by ordinary judicial processes
operations authorized by the provisions of this Act or as essential to the such as execution and garnishment. If such funds cannot be executed upon
proper conduct of such operations." or garnished pursuant to a judgment sustaining the liability of the PVTA to
answer for its obligations, then the purpose of the law in creating the PVTA
Among the specific powers vested in the PVTA are: 1) to buy Virginia would be defeated. For it was declared to be a national policy, with respect
tobacco grown in the Philippines for resale to local bona fide tobacco to the local Virginia tobacco industry, to encourage the production of local
manufacturers and leaf tobacco dealers [Section 4(b), R.A. No. 2265]; 2) to Virginia tobacco of the qualities needed and in quantities marketable in both
contracts of any kind as may be necessary or incidental to the attainment of domestic and foreign markets, to establish this industry on an efficient and
its purpose with any person, firm or corporation, with the Government of the economic basis, and to create a climate conducive to local cigarette
Philippines or with any foreign government, subject to existing laws [Section manufacture of the qualities desired by the consuming public, blending

17 CRUZ, GATACELO, GOMEZ, LAZARO, MUNEZ, MURILLO


POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

imported and native Virginia leaf tobacco to improve the quality of locally Petitioner field a motion for reconsideration (MFR). Petitioner contended that
manufactured cigarettes [Section 1, Republic Act No. 4155.] its funds at the PNB Buendia Branch could neither be garnished nor levied
upon execution, for to do so would result in the disbursement of public
MUNICIPALITY OF MAKATI VS. COURT OF APPEALS funds without the proper appropriation required under the law, citing the
G.R. Nos. 89898-99. October 1, 1990 case of Republic of the Philippines v. Palacio [G.R. No. L-20322, May 29,
1968, 23 SCRA 899].
FACTS:
Respondent judge denied petitioners MFR. On appeal, the CA dismissed the
The present petition for review is an off-shoot of expropriation proceedings same for lack of merit.
initiated by petitioner Municipality of Makati against private respondent
Admiral Finance Creditors Consortium, Inc., Home Building System & Realty On appeal to the SC, Petitioner alleged for the first time that it has actually 2
Corporation and one Arceli P. Jo, involving a parcel of land and accounts with PNB Buendia Branch:
improvements thereon located at Mayapis St., San Antonio Village, Makati (1) Account No. S/A 265-537154-3 exclusively for the expropriation of the
and registered in the name of Arceli P. Jo. subject property, with an outstanding balance of P99,743.94.
(2) Account No. S/A 263-530850-7 for statutory obligations and other
An action for eminent domain was filed on May 20, 1986. Attached to purposes of the municipal government, with a balance of
petitioner's complaint was a certification that a bank account had been P170,098,421.72, as of July 12, 1989.
opened with the PNB Buendia Branch under petitioner's name containing the
sum of P417,510.00, made pursuant to the provisions of P.D. No. 42. After Admitting that its PNB Account No. S/A 265-537154-3 was specifically
due hearing where the parties presented their respective appraisal reports opened for expropriation proceedings it had initiated over the subject
regarding the value of the property, respondent RTC judge rendered a property, petitioner poses no objection to the garnishment or the levy under
decision on June 4, 1987, fixing the appraised value of the property at execution of the funds deposited therein amounting to P99,743.94.
P5,291,666.00, and ordering petitioner to pay this amount minus the However, it is petitioner's main contention that inasmuch as the assailed
advanced payment of P338,160.00 which was earlier released to private orders of respondent RTC judge involved the net amount of P4,965,506.45,
respondent. the funds garnished by respondent sheriff in excess of P99,743.94, which
After this decision became final and executory, private respondent moved are public funds earmarked for the municipal government's other statutory
for the issuance of a writ of execution. This motion was granted by obligations, are exempted from execution without the proper appropriation
respondent RTC judge. After issuance of the writ of execution, a Notice of required under the law.
Garnishment dated January 14, 1988 was served by respondent sheriff
Silvino R. Pastrana upon the manager of the PNB Buendia Branch. However, ISSUE:
respondent sheriff was informed that a "hold code" was placed on the
account of petitioner. WON public funds earmarked for the municipal governments other statutory
Private respondent filed a motion praying that an order be issued directing obligations, are exempted from execution without the proper appropriation
the bank to deliver to said sheriff the unpaid balance. On the other hand, required under the law
petitioner filed a motion to lift the garnishment, on the ground that the
manner of payment of the expropriation amount should be done in HELD:
installments which the respondent RTC judge failed to state in his decision.
Pending resolution of the above motions, petitioner filed a Manifestation There is merit in this contention. The funds deposited in the second PNB
informing the court that the subject property is now owned by PS Bank, Inc Account No. S/A 263-530850-7 are public funds of the municipal
(PSB). Thereafter, respondent trial judge subsequently issued an order government. In this jurisdiction, well-settled is the rule that public funds are
which among other things ordered PNB Buendia Branch to immediately not subject to levy and execution, unless otherwise provided for by statute.
release to PSB the corresponding balance of P4,953,506.45.

18 CRUZ, GATACELO, GOMEZ, LAZARO, MUNEZ, MURILLO


POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

More particularly, the properties of a municipality, whether real or personal, Restituto Deligo were injured and brought to the San Jose City Emergency
which are necessary for public use cannot be attached and sold at execution Hospital for treatment. Fontanilla was later transferred to the Cabanatuan
sale to satisfy a money judgment against the municipality. Municipal Provincial Hospital where he died.
revenues derived from taxes, licenses and market fees, and which are
intended primarily and exclusively for the purpose of financing the Garcia was then a regular driver of respondent NIA who, at the time of the
governmental activities and functions of the municipality, are exempt from accident, was a licensed professional driver and who qualified for
execution. employment as such regular driver of respondent after having passed the
written and oral examinations on traffic rules and maintenance of vehicles
The foregoing rule finds application in the case at bar. Absent a showing given by National Irrigation Administration authorities.
that the municipal council of Makati has passed an ordinance appropriating
from its public funds an amount corresponding to the balance due under the Spouses Fontanilla filed a case for damages (death benefits) and actual
RTC decision dated June 4, 1987, less the sum of P99,743.94 deposited in expenses for the death of their son. CFI of Nueva Ecija ruled in favor of
Account No. S/A 265-537154-3, no levy under execution may be validly spouses Fontanilla. NIA then filed its motion for reconsideration which CFI
effected on the public funds of petitioner deposited in Account No. S/A 263- denied. NIA then appealed to CA.
530850-7.
ISSUE:
Nevertheless, this is not to say that private respondent and PSB are left with
no legal recourse. Where a municipality fails or refuses, without justifiable WON the award of moral damages, exemplary damages and attorney's fees
reason, to effect payment of a final money judgment rendered against it, is legally proper in a complaint for damages based on quasi-delict which
the claimant may avail of the remedy of mandamus in order to compel the resulted in the death of the son of herein petitioners
enactment and approval of the necessary appropriation ordinance, and the
corresponding disbursement of municipal funds therefor [Viuda De Tan Toco HELD:
v. The Municipal Council of Iloilo, supra; Baldivia v. Lota, 107 Phil. 1099
(1960); Yuviengco v. Gonzales, 108 Phil. 247 (1960)]. The liability of the State has two aspects, namely:

The State's power of eminent domain should be exercised within the bounds 1. Its public or governmental aspects where it is liable for the tortious
of fair play and justice. In the case at bar, considering that valuable property acts of special agents only.
has been taken, the compensation to be paid fixed and the municipality is in 2. Its private or business aspects (as when it engages in private
full possession and utilizing the property for public purpose, for three (3) enterprises) where it becomes liable as an ordinary employer.
years, the Court finds that the municipality has had more than reasonable
time to pay full compensation. In this jurisdiction, the State assumes a limited liability for the damage
caused by the tortious acts or conduct of its special agent.
FONTANILLA VS. MALIAMAN
G.R. No. L-55963. December 1, 1989 Under paragrah 6 of Art. 2180, the State has voluntarily assumed liability for
acts done through special agents. The State's agent, if a public official, must
FACTS: not only be specially commissioned to do a particular task but that such task
must be foreign to said official's usual governmental functions. If the State's
On August 21, 1976 at about 6:30 P.M., a pickup owned and operated by agent is not a public official, and is commissioned to perform non-
respondent National Irrigation Administration (NIA), a government agency, governmental functions, then the State assumes the role of an ordinary
then driven officially by Hugo Garcia, an employee of said agency as its employer and will be held liable as such for its agent's tort. Where the
regular driver, bumped a bicycle ridden by Francisco Fontanilla, son of government commissions a private individual for a special governmental
herein petitioners, and Restituto Deligo, at Maasin, San Jose City along the task, it is acting through a special agent within the meaning of the provision.
Maharlika Highway. As a result of the impact, Francisco Fontanilla and

19 CRUZ, GATACELO, GOMEZ, LAZARO, MUNEZ, MURILLO


POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

The National Irrigation Administration is an agency of the government PROVINCE OF NORTH COTABATO VS. GRP PEACE PANEL ON
exercising proprietary functions. ANCESTRAL DOMAIN, ET AL.
G.R. No. 183591. October 14, 2008
Indubitably, the NIA is a government corporation with juridical personality GOMEZ
and not a mere agency of the government. Since it is a corporate body
performing non-governmental functions, it now becomes liable for the FACTS:
damage caused by the accident resulting from the tortious act of its driver-
employee. In this particular case, the NIA assumes the responsibility of an On August 5, 2008, the Government of the Republic of the Philippines (GRP)
ordinary employer and as such, it becomes answerable for damages. and the MILF, through the Chairpersons of their respective peace
This assumption of liability, however, is predicated upon the existence of negotiating panels, were scheduled to sign a Memorandum of Agreement on
negligence on the part of respondent NIA. The negligence referred to here is the Ancestral Domain (MOA-AD) Aspect of the GRP-MILF Tripoli Agreement
the negligence of supervision. on Peace of 2001 in Kuala Lumpur, Malaysia.

At this juncture, the matter of due diligence on the part of respondent NIA The signing of the MOA-AD between the GRP and the MILF was not to
becomes a crucial issue in determining its liability since it has been materialize, however, for upon motion of petitioners, specifically those who
established that respondent is a government agency performing proprietary filed their cases before the scheduled signing of the MOA-AD, the SC issued
functions and as such, it assumes the posture of an ordinary employer a Temporary Restraining Order enjoining the GRP from signing the same.
which, under Par. 5 of Art. 2180, is responsible for the damages caused by Formal peace talks between the parties were held in Tripoli, Libya from June
its employees provided that it has failed to observe or exercise due diligence 20-22, 2001, the outcome of which was the GRP-MILF Tripoli Agreement on
in the selection and supervision of the driver. Peace (Tripoli Agreement 2001) containing the basic principles and agenda
on the following aspects of the negotiation: Security Aspect, Rehabilitation
It should be emphasized that the accident happened along the Maharlika Aspect, and Ancestral Domain Aspect. With regard to the Ancestral Domain
National Road within the city limits of San Jose City, an urban area. Aspect, the parties in Tripoli Agreement 2001 simply agreed "that the same
Considering the fact that the victim was thrown 50 meters away from the be discussed further by the Parties in their next meeting."
point of impact, there is a strong indication that driver Garcia was driving at
a high speed. This is confirmed by the fact that the pick-up suffered On July 23, 2008, the Province of North Cotabato and Vice-Governor
substantial and heavy damage as above-described and the fact that the NIA Emmanuel Piol filed a petition, docketed as G.R. No. 183591, for
group was then "in a hurry to reach the campsite as early as possible", as Mandamus and Prohibition with Prayer for the Issuance of Writ of
shown by their not stopping to find out what they bumped as would have Preliminary Injunction and Temporary Restraining Order.
been their normal and initial reaction.
This initial petition was followed by another one, docketed as G.R. No.
Evidently, there was negligence in the supervision of the driver for the 183752, also for Mandamus and Prohibition filed by the City of Zamboanga,
reason that they were travelling at a high speed within the city limits and yet Mayor Celso Lobregat, Rep. Ma. Isabelle Climaco and Rep. Erico Basilio
the supervisor of the group, Ely Salonga, failed to caution and make the Fabian who likewise pray for similar injunctive reliefs.
driver observe the proper and allowed speed limit within the city. Under the
situation, such negligence is further aggravated by their desire to reach their By Resolution of August 4, 2008, the Court issued a Temporary Restraining
destination without even checking whether or not the vehicle suffered Order commanding and directing public respondents and their agents to
damage from the object it bumped, thus showing imprudence and cease and desist from formally signing the MOA-AD.
reckelessness on the part of both the driver and the supervisor in the group.
Significantly, this Court has ruled that even if the employer can prove the Meanwhile, the City of Iligan filed a petition for Injunction and/or
diligence in the selection and supervision (the latter aspect has not been Declaratory Relief, docketed as G.R. No. 183893, praying that respondents
established herein) of the employee, still if he ratifies the wrongful acts, or be enjoined from signing the MOA-AD or, if the same had already been
take no step to avert further damage, the employer would still be liable.

20 CRUZ, GATACELO, GOMEZ, LAZARO, MUNEZ, MURILLO


POLITICAL LAW REVIEW CASE DIGESTS [2]: THE PHILIPPINES AS A STATE

signed, from implementing the same, and that the MOA-AD be declared associated entity as a state. The Constitution, however, does not
unconstitutional. contemplate any state in this jurisdiction other than the Philippine State,
much less does it provide for a transitory status that aims to prepare any
The Province of Zamboanga del Norte, Governor Rolando Yebes, Vice- part of Philippine territory for independence.
Governor Francis Olvis, Rep. Cecilia Jalosjos-Carreon, Rep. Cesar Jalosjos,
and the members18 of the Sangguniang Panlalawigan of Zamboanga del The BJE is a far more powerful entity than the autonomous region
Norte filed on August 15, 2008 a petition for Certiorari, Mandamus and recognized in the Constitution It is not merely an expanded version of the
Prohibition,19 docketed as G.R. No. 183951 ARMM, the status of its relationship with the national government being
By subsequent Resolutions, the Court ordered the consolidation of the fundamentally different from that of the ARMM. Indeed, BJE is a state in all
petitions. but name as it meets the criteria of a state laid down in the Montevideo
Convention,namely, a permanent population, a defined territory, a
ISSUES: government, and a capacity to enter into relations with other states.
Even assuming arguendo that the MOA-AD would not necessarily sever any
WON the MOA-AD grants to the Bangsamoro Juridical Entity (BJE) the status portion of Philippine territory, the spirit animating it - which has betrayed
of a STATE itself by its use of the concept of association - runs counter to the national
WON the BJE contains the 4 elements of a State sovereignty and territorial integrity of the Republic.

HELD: The defining concept underlying the relationship between the national
government and the BJE being itself contrary to the present Constitution, it
The MOA-AD proceeds to refer to the "Bangsamoro homeland," the is not surprising that many of the specific provisions of the MOA-AD on the
ownership of which is vested exclusively in the Bangsamoro people by virtue formation and powers of the BJE are in conflict with the Constitution and the
of their prior rights of occupation. Both parties to the MOA-AD acknowledge laws.
that ancestral domain does not form part of the public domain.

The territory of the Bangsamoro homeland is described as the land mass as


well as the maritime, terrestrial, fluvial and alluvial domains, including the
aerial domain and the atmospheric space above it, embracing the Mindanao-
Sulu-Palawan geographic region.

More specifically, the core of the BJE is defined as the present geographic
area of the ARMM - thus constituting the following areas: Lanao del Sur,
Maguindanao, Sulu, Tawi-Tawi, Basilan, and Marawi City. Significantly, this
core also includes certain municipalities of Lanao del Norte that voted for
inclusion in the ARMM in the 2001 plebiscite.

These provisions of the MOA indicate, among other things, that the Parties
aimed to vest in the BJE the status of an associated state or, at any rate, a
status closely approximating it. The concept of association is not recognized
under the present Constitution No province, city, or municipality, not even
the ARMM, is recognized under our laws as having an "associative"
relationship with the national government. Indeed, the concept implies
powers that go beyond anything ever granted by the Constitution to any
local or regional government. It also implies the recognition of the

21 CRUZ, GATACELO, GOMEZ, LAZARO, MUNEZ, MURILLO

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