Title
People vs. V.M. Ruiz
Case
G.R. No. L-35645
Decision Date
May 22, 1985
A Philippine contractor sued the U.S. over rejected bids for naval base repairs; the Supreme Court ruled the U.S. immune, deeming the projects sovereign acts.

Case Digest (G.R. No. L-35645)
Expanded Legal Reasoning Model

Facts:

  • Background and contractual dealings
    • At relevant times, the United States maintained a naval base in Subic, Zambales under the RP-US Military Bases Agreement.
    • In May 1972, the U.S. Naval Station at Subic Bay invited bids for wharf and shoreline repair projects.
    • Eligio de Guzman & Co., Inc. submitted bids and confirmed its price proposals and bonding company as requested by U.S. agents.
  • Award denial and subsequent suit
    • In June 1972, William I. Collins, acting for the U.S. Navy, notified Eligio de Guzman & Co., Inc. that it was disqualified for unsatisfactory past performance and that contracts were awarded to third parties.
    • The company filed Civil Case No. 779-M in the CFI of Rizal, seeking specific performance or damages and a preliminary injunction to enjoin contracts with third parties.
    • Petitioners (the United States and its agents) entered a special appearance to challenge jurisdiction on grounds of foreign sovereign immunity, then moved to dismiss and opposed injunctive relief.
    • The trial court denied the motion to dismiss, issued the preliminary injunction, and denied two motions for reconsideration, prompting this petition for certiorari.

Issues:

  • Jurisdictional scope of Philippine courts over foreign sovereigns
    • Can the Republic of the Philippines’ courts entertain a suit against the United States and its agents absent express consent?
  • Nature of the contested contracts
    • Whether contracts to repair Subic Bay naval facilities are sovereign (jure imperii) or commercial (jure gestionis) acts for state-immunity purposes.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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