G.R. No. 108813 – 239 SCRA 224 – Political Law – Constitutional Law – State Immunity From Suit – Waiver of Immunity – Waiver by Commercial Contract – No waiver if contract is in exercise of governmental functions
Florencio Sacramento was a security guard for JUSMAG (Joint United States Military Assistance Group to the Republic of the Philippines). He was hired in 1969 by virtue of an employment contract. JUSMAG was a creation of a 1947 agreement between the US and the Philippines. Its main task was to advise and assist the Philippines, on air force, army and naval matters.
In 1992, Sacramento was laid off on the ground that his position was abolished. He filed a labor case against JUSMAG. JUSMAG invoked immunity from suit as an entity under the US government. Sacramento argued that JUSMAG lost immunity when it entered into an employment contract with him. The labor arbiter agreed with JUSMAG. The NLRC reversed the decision and remanded the case to the LA for trial.
ISSUE: Whether or not Sacramento is correct.
HELD: No. In 1991, there was a MOA between the US and the Philippines which clarified that employees of JUSMAG are deemed to be employees of the AFP.
Further, the employment contract in this case is not a commercial contract. It was a contract entered into in the discharge of governmental functions.
The SC emphasized: the doctrine of immunity from suit has been restricted to sovereign or governmental activities (jure imperii). The mantle of state immunity cannot be extended to commercial, private and proprietary acts (jure gestionis).
