STATE IMMUNITY/NON-SUABILITY OF THE STATE Flashcards
What happened in the case of Republic vs Fetalvero?
This is a case on eminent domain. There were 2 issues here:
1.) WHETHER OR NOT THE COMPROMISE AGREEMENT BETWEEN BOTH PARTIES IS VOID SINCE THE AMOUNT OF JUST COMPENSATION IS ALLEGEDLY GROSSLY DISADVANTAGEOUS TO THE GOVERNMENT
NO. THE COMPROMISE AGREEMENT IS NOT VOID.
The Court notes that for almost 20 years now, petitioner had been enjoying the use of respondent’s property without paying the full amount of just compensation under the Compromise Agreement. Respondent had been deprived of his property for almost two (2) decades.
2.) WHETHER OR NOT GOVERNMENT FUNDS MAY BE SEIZED UNDER A WRIT OF EXECUTION OR A WRIT OF GARNISHMENT IN SATISFACTION OF COURT JUDGMENTS.
NO. THE GENERAL RULE IS THAT GOVERNMENT FUNDS CANNOT BE SEIZED BY VIRTUE OF WRITS OF
EXECUTION OR GARNISHMENT.
Respondent failed to show that he first raised his claim before the Commission on Audit. Without this necessary procedural step, respondent’s money claim cannot be entertained by the courts through a writ of execution.
What happened in the case of Philippine Textile Research Institute vs CA?
The issues for this case is whether or not PTRI, et al. are immune from suit.
NO. THE RULE ON STATE IMMUNITY FROM SUIT IS NOT ABSOLUTE. PTRI is being sued upon a
claim involving liability arising from a contract.
Hence, the general law on the waiver of immunity
from suit finds application. Furthermore, there is
implied consent on the part of the State to be
subjected to suit when the State enters into a
contract. In this situation, the government is deemed to
have descended to the level of the other contracting party and to have divested itself of its sovereign immunity.
PTRI also manifested unequivocally its consent to be
subjected to suit with respect to disputes arising from
the subject Contract. Further, the subject Contract was
clearly not executed in the exercise of PTRI’s governmental function of aiding the textile industry. The subject Contract dealt solely with the rehabilitation works of the electrical facilities of PTRI’s buildings.
