Title
Supreme Court
Hermano Oil Manufacturing and Sugar Corp. vs. Toll Regulatory Board
Case
G.R. No. 167290
Decision Date
Nov 26, 2014
Petitioner sought easement of right of way for land adjacent to NLEX; courts dismissed, citing sovereign immunity, lack of jurisdiction, and valid police power under RA 2000.

Case Summary (G.R. No. 167290)

Factual Background

The petitioner owns a property adjacent to the NLEX near Sta. Rita Exit, Bulacan, covered by Transfer Certificate of Title No. T-134222. An access fence along the NLEX barred ingress and egress to the property, prompting the petitioner to request from the TRB an easement of right of way to gain access. The TRB denied the request, citing the provisions of Republic Act No. 2000 and concerns over the rehabilitation and operational integrity of NLEX, including traffic conflicts.

Procedural History

The petitioner filed a complaint for specific performance and damages against the TRB and Engr. Jaime S. Dumlao, and later amended the complaint to include PNCC and DPWH. The complaint alleged deprivation of property enjoyment due to the access fence and sought an injunction to restore ingress and egress, declaration against the voidness of the purported condemnation, and just compensation for property taking. The trial court dismissed the case for lack of jurisdiction, holding it a suit against the government without consent, and ruled that injunctions against government infrastructure projects were prohibited pursuant to PD No. 1818 and RA No. 8975. The Court of Appeals affirmed this dismissal.

Grounds for Dismissal and Jurisdictional Issues

The respondents, through the Office of the Solicitor General, argued that the courts lacked jurisdiction because: (1) the complaint was effectively a suit against the State without its consent; (2) the petitioner was not the real party in interest; (3) easement claims were barred under RA 2000 governing limited access highways; (4) the complaint lacked legal basis as no contract existed between parties; (5) proper remedy should have been certiorari under Rule 65; and (6) requisites for injunction were absent. The trial court and CA agreed, emphasizing constitutional doctrine prohibiting injunctions on government infrastructure projects.

Doctrine of Sovereign Immunity Application

The Supreme Court concurred with the lower courts that the TRB, DPWH, and Dumlao (in official capacity) enjoy sovereign immunity because they perform governmental functions inherently tied to sovereignty. Accordingly, they cannot be sued without the government’s consent. The Court distinguished PNCC’s status, recognizing it as a private corporation despite majority government ownership. Nevertheless, the complaint was dismissed due to lack of cause of action and jurisdiction regardless of PNCC’s suability.

Limits on Court’s Authority to Enjoin Government Infrastructure Projects

The Court reaffirmed the prohibition on courts issuing temporary restraining orders or injunctions against government infrastructure projects, enshrined in PD No. 1818 and further strengthened by RA No. 8975. These laws withhold jurisdiction from all courts except the Supreme Court to issue such orders against national government projects involving acquisition, clearance, bidding, implementation, or related lawful acts. The purpose is to avoid delays and disruptions in essential government projects. The petitioner’s request to enjoin the erection of the access fence and to compel an easement fell squarely within these prohibited acts.

NLEX as a Limited Access Highway Facility

The Court noted that NLEX is a limited access expressway regulated under RA No. 2000. The petitioner was bound by the existing law and the physical condition of the property at the time of acquisition in 1999 when the NLEX and its access fence were already in place. The petitioner’s predecessors consented or acquiesced to the property’s isolation, precluding demands for an easement under Article 649 of the Civil Code, which requires lack of access for such rights to be claimed compulsorily.

Authority to Regulate Limited Access Highways

Clarification was made on the agency empowered to regulate limited access highways. Although the petitioner contended the DPWH had such authority, the Court held that the Department of Transportation and Communications (DOTC) — now the Department of Transportation (DOTr) — exercises exclusive jurisdiction pursuant to Executive Order No. 546 and subsequent reorganizations. DPWH orders declaring expressways as limited access facilities were void, and the TRB, under DOTr, properly imposed and enforced the access restrictions.

Validity of the Access Fence and Police Power

The access fence was erected pursuant to RA No. 2000 and was a valid exercise of police power intended to protect public safety and welfare on the tollway. Restrictions imposed by the fence on ingress and egress to the petitioner’s property were reasonable and not confiscatory. The Court found no violation of due process or equal protection clauses, given valid classification of adjacent property owne

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