G.R. No. 73919 – 214 SCRA 35 – Political Law – Constitutional Law – State Immunity from Suit – GOCCs may be sued
In 1967, the National Irrigation Administration were sued by several farmers due to a defective irrigation project. The trial court ruled in favor of the farmers and the NIA was directed to pay Php35,000.00 in damages to the farmers. NIA appealed but their appeal was denied. NIA is now invoking immunity from suit.
ISSUE: Whether or not NIA is immune from suit.
HELD: No. NIA is a GOCC created by RA 3601, as amended by PD No. 552. According to its charter, NIA may sue and be sued in court for all kind of actions, whether contractual or quasi-contractual, in the recovery of compensation and damages. NIA is a government agency with a juridical personality separate and distinct from the government. It is not a mere agency of the government but a corporate body performing proprietary functions” as it has its own assets and liabilities as well as its own corporate powers to be exercised by a Board of Directors.
