STATE IMMUNITY

- There can be no legal right as against the authority that makes the law
on which the right depends. (Dept. of Agriculture v. NLRC, 227 SCRA 693)
- State may not be sued without its consent.” (Art. 16, Sec. 3 of the
Constitution)
GOVERNMENT AGENCY TEST
Government Agencies

Incorporated Unincorporated

Charter = Can sue Silent Charter = Governmental = Proprietary = Suable

and be sued 1. Governmental = Suit against the
Suit against the state, even with
State incidental
2. Proprietary = proprietary
Suable functions
 PUBLIC OFFICER

Suit against the Liability on the officer and suability

state –
Governmental 1. Malice, bad faith, or gross
functions/ negligence in the exercise of
official functions
functions 2. Private/ personal capacity
3. To do an act which doesn’t need
an affirmative action from the
State to assist.
EXPRESS AND IMPLIED CONSENT
Express Consent
Must be embodied in a statute – no
need for governmental or proprietary
distinction
Examples:
1. Act. No. 3083 & C.A. No. 327, as
amended by P.D. No. 1445 –
Appropriations or garnishments
must be filed with the COA. COA’s
failure to act within 60 days or
rejection of the claim = claimant
may elevate the matter to the
Supreme Court on certiorari.
2. Special law (Merritt v. Gov’t of
the PH, G.R. No. L-11154)
3. International Rice Research
Institute’s immunity under P.D.
No. 1620
Implied Consent
When the state commences
litigation – Suable (Act. 3083,
amended by P.D. No. 1445)
Exception:
- Police man sues a
governmental entity for 100
million PHP, the State issues
a countersuit for 200 million
PHP
Rationale:
1. The State intervenes using a
countersuit for the purpose of
resisting a claim against it by
invoking immunity from suit,
not by seeking affirmative relief.
As cited in: Lim v. Brownell, G.R.
No. L-8587
Sovereign enters into a contract
Proprietary contract (Acta jure imperii)
(Acta jure gestionis) - - No implied consent to be
Suable sued
Exception:
- Where property has been
taken without just
compensation being paid.
Examples:
- 1. Republic v. Sandiganbayan,
G.R. No. 90478
- 2. Air Transportation Office v.
Spouses Ramos, G.R. No.
159402
 INTERNATIONAL AGENCIES

Diplomatic Immunity and non- Suability (Restrictive Theory)

suability - Acta jure gestionis or commercial
transactions of the foreign sovereign/
Examples: business contracts: when the State enters
1. International Catholic into such a contract, it may be said to have
Migration Commission descended to the level of an individual and
(ICMC) can thus be deemed to have tacitly given
2. Southeast Asian Fisheries its consent. (Traders Royal Bank v IAC, 192
Development Center SCRA 305)
(SEAFDEC)
3. United Nations Revolving Appropriations/ money claims under C.A. No.
Fund for Natural Resources 327 as amended by P.D. 1445
Exploration (UNRFNRE)