Saturday, June 23, 2012

Republic vs. Nolasco (Consti1)

Republic of the Philippines, Represented by Department of Public Works and Highways (DPWH) under Secretary Simeon Datumanong and Undersecretary Edmundo V. Mir, then Chairman of Bid and Awards Committee (BAC), Assistant Secretary Bashir D. Rasuman, BAC Vice-Chairman, Director Oscar D. Abundo, BAC Member Director OIC-director Antonio V. Malano, Jr., BAC Member and Project Director Philip F. Menez, Petitioners,
vs.
Emiliano R. Nolasco, Respondent.

Second Division

Tinga, April 27, 2005

Topic: Sovereignty - Suits not against the State - Contracts Connected with Sovereign Functions

Facts:
  • The funding for the Agno Rover Flood Control Project, a public works project, was to be derived primarily through a loan from the Japan Bank for International Cooperation (JBIC)
  • DPWH constituted a Bid and Awards Committee (BAC) for the purpose of conducting international competitive bidding for the procurement of the contract
    • Among the 6 pre-qualified bidders are present intervenors Daewoo and China International
  • Nolasco, invoking his right as a taxpayer, prayed that the DPWH and BAC be restrained from awarding the contract to Daewoo and have Daewoo disqualified as a bidder
    • He alleged having obtained copies of "Confidential Reports from an Unnamed DPWH Consultant"
    • He said that based on the reports, Daewoo's bid was unacceptable and the putative award to Daewoo illegal, immoral, and prejudicial to the government and the Filipino taxpayers
  • March 27, 2002: the RTC of Manila dismissed Nolasco's petition
    • According to the RTC, it was a suit against the State, which had been sued without its consent
  • Meanwhile, BAC resolved to recommend the award of the contract to Daewoo as it has the lowers bid; DPWH Secretary Datumanong approved (i.e signed) the recommendation
Issue:
  • Whether or not the petition was a suit against the State without its consent
Holding:
  •  Yes.
Ratio:
  •  An unincorporated government agency such as the DPWH is without any separate juridical personality of its own and hence enjoys immunity from suit.
  • It cannot be said that the DPWH was deemed to have given its consent to be sued by entering into a contract, for at the time the petition was filed by Nolasco, the DPWH had not yet entered into a contract with respect to the project
  • The presumption is that the State and its elements act correctly unless otherwise proven
Note: Much of the case is unrelated to the topic, so I ignored a lot of details. Please check the original case if you want to know the whole complicated story. :) -- Erika

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