GR No.

L-51806
Civil Aeronautics Administration vs. CA and Ernest Simke
Ponente: Justice Cortes
FACTS: Ernest Simke was a naturalized Filipino and was Honorary Consul Geileral of
Israel in the Philippines. In December 1968, respondent went to the Manila International
Airport to meet his future son-in-law. While walking on the terrace, Simke slipped over
an elevation, fell on his back and broke his thigh.
He was operated on but filed for damages under quasi-delict (or negligence) against CAA
as the entity empowered to administer, operate, manage, control, maintain and develop
the Manila International Airport (RA 776). Trial Court and CA ruled in favor of Simke.
ISSUE: Is the suit against the CAA effectively against the Republic of the Philippines,
which cannot be sued without its consent?
HELD: NO
RATIO DECIDENDI: Executive Order 365 (Reorganizing the CAA and Abolishing the
National Airports Corporation) was interpreted by the Court as giving the CAA the status
of a private entity. RA 776 (Civil Aeronautics Act) amends the EO but retains most of
pertinent provisions of EO 365. Citing National Airports Corporation vs Teodoro, court
held that the CAA, which replaced the National Airports Corporation, is engaged in
solely private functions and thus has no sovereign immunity and can sue or be sued. They
cite Sec. 32 (24 and 25) which defines powers of the administrator. The nature of its
functions is private.