Republic of the Philippines vs Judge Guillermo Villasor

G.R. No. L-30671 – 153 Phil. 356 – 54 SCRA 84 – Political Law – Constitutional Law – State Immunity from Suit – Waiver of Immunity – Scope of Waiver

In 1961, International Construction Corporation (ICC) won an arbitration case against arbitration case against the Philippines. In 1969, the ICC filed a special proceedings case to enforce the arbitration ruling. Judge Guillermo Villasor ruled in favor of ICC. The court then issued writs of garnishment against the bank accounts of the AFP with the Philippine Veterans Bank and the Philippine National Bank. The Republic is now seeking the annulment of the writs on the ground that they were issued in excess of jurisdiction because the funds garnished were supposed to be for the payment of pensions of retirees, pay and allowances of military and civilian personnel and for maintenance and operations of the AFP.

ISSUE: Whether or not the writ of execution is valid.

HELD: No. Here, though the AFP previously agreed to be sued, the judgment award cannot be simply enforced against it. The State may give its consent to be sued but it may also limit a claimant’s action ‘only up to the completion of proceedings anterior to the stage of execution‘ and that the power of the Courts ends when the judgment is rendered. This is because government funds and properties may not be seized under writs of execution or garnishment to satisfy such judgments. This is based on obvious considerations of public policy. Disbursements of public funds must be covered by the corresponding appropriation as required by law. The functions and public services rendered by the State cannot be allowed to be paralyzed or disrupted by the diversion of public funds from their legitimate and specific objects, as appropriated by law.

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