Bermoy v. PNC, GR No.

L-8670, May 18, 1956

Topic: Suit Against Government Agencies

If incorporated, consult the charter.
Charter - A formal document by which a sovereign or a government grants rights,
powers, and privileges to a person, business, or the people. The highest law of any organization.

Facts:

1. July 6, 1954, twenty employees of the Philippine Normal College, who were working as
cooks, waiters, dishwasher, and in various other capacities in its dormitory known as
Normal Hall, filed an action in the Court of First Instance of Manila against the said
Philippine Normal College and/or Philippine Normal School for the recovery of salary
differentials and overtime pay.
2. Court ordered it dismissed on the ground that neither one of the defendants was a
corporation or a juridical entity with capacity to be sued.
3. Republic Act No. 416, which took effect In July., 1949, converted the old Philippine
Normal School into the present Philippine Normal College and endowed it with the
"general powers set out in section thirteen of Act Numbered Fourteen hundred and
fifty-nine, as amended" (Corporation Law)
4. One of the powers specifically enumerated in the said section. 13 of the
Corporation Law is the power "to sue and be sued in any.court." With this express
grant of power, we don't see how it could be doubted that the Philippine Normal
College could be made a defendant in a suit in court.

Issue/s:

1. Suability of the Philippine Normal College has a juridical personality of its own, but
contends that, as it is an Instrumentality of government for the discharge of state
functions, it may not be sued without the consent of the state.
Ruling:
The Solicitor General admits that the Philippine Normal College has a juridical personality of
its own, but contends that, as it is an Instrumentality of government for the discharge of
state functions, it may not be sued without the consent of the state. The answer to that
contention is that the state has already given that consent by investing the College with
the express power to be sued in courts That the Act Authorizes the College to be sued is
also made clear in section 6, where it is provided that "all process against the Board of
Trustees shall be served on the President or secretary thereof,"

Wherefore, the order appealed from is revoked and the case remanded to the court of
origin for further proceedings. No costs.