G.R. No. 152318
11 of 19
http://sc.judiciary.gov.ph/jurisprudence/2009/april2009/152318.htm
We come now to the amendability of the SSS to judicial action and legal responsibility for its
acts. To our minds, there should be no question on this score considering that the SSS is a juridical
entity with a personality of its own. It has corporate powers separate and distinct from the
Government. SSS' own organic act specifically provides that it can sue and be sued in 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 immunity from suit as an entity performing governmental functions,
by virtue of the explicit provision of the aforecited enabling law, the Government must be deemed to
have waived immunity in respect of the SSS, although it does not thereby 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 has been required to submit to the jurisdiction of the Courts, subject to its right to
interpose any lawful defense. Whether the SSS performs governmental or proprietary functions thus
becomes unnecessary to belabor. For by that waiver, a private citizen may bring a suit against it for
varied objectives, such as, in this case, to obtain compensation in damages arising from contract, and
even for tort.
A recent case squarely in point anent the principle, involving the National Power Corporation,
is that of Rayo v. Court of First Instance of Bulacan, 110 SCRA 457 (1981), wherein this Court,
speaking through Mr. Justice Vicente Abad Santos, ruled:
"It is not necessary to write an extended dissertation on whether or not the NPC performs a
governmental function with respect to the management and operation of the Angat Dam. It is
sufficient to say that the government has organized a private corporation, put money in it and
has allowed it to sue and be sued in any court under its charter. (R.A. No. 6395, Sec. 3[d]). As
a government, owned and controlled corporation, it has a personality of its own, distinct and
separate from that of the Government. Moreover, the charter provision that the NPC can 'sue
and be sued in any court' is without qualification on the cause of action and accordingly it can
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include a tort claim such as the one instituted by the petitioners."
It is useful to note that on the part of the Philippine government, it had designated two entities, the
Department of Health and the Philippine Health Insurance Corporation (PHIC), as the implementing
agencies in behalf of the Philippines. The PHIC was established under Republic Act No. 7875,
Section 16(g) of which grants the corporation the power to sue and be sued in court. Applying the
previously cited jurisprudence, PHIC would not enjoy immunity from suit even in the performance
of its functions connected with SHINE, however, governmental in nature as they may be.
Is GTZ an incorporated agency of the German government? There is some mystery surrounding that
question. Neither GTZ nor the OSG go beyond the claim that petitioner is the implementing agency
of the Government of the Federal Republic of Germany. On the other hand, private respondents
asserted before the Labor Arbiter that GTZ was a private corporation engaged in the implementation
of development projects.
to Dismiss,
[43]
[42]
The Labor Arbiter accepted that claim in his Order denying the Motion
though he was silent on that point in his Decision. Nevertheless, private respondents
argue in their Comment that the finding that GTZ was a private corporation was never controverted,
[44]
and is therefore deemed admitted.
In its Reply, GTZ controverts that finding, saying that it is a
matter of public knowledge that the status of petitioner GTZ is that of the implementing agency, and
[45]
not that of a private corporation.
1/26/2016 4:07 PM