Case Summary (G.R. No. 90314)
Administrative and Pre-trial Developments
The U.S. Civil Service Commission requested Isakson’s removal for non-qualification; the Department of the Air Force’s Staff Judge Advocate noted procedural irregularities and advised proper consideration of qualified candidates. Shauf pursued appeals before the U.S. Civil Service Commission while simultaneously filing for damages in Philippine courts.
Trial Court Findings
The RTC denied respondents’ motions to dismiss based on sovereign immunity and administrative-remedy exhaustion. It found both Detwiler and Persi personally liable for discrimination on account of Shauf’s sex, color, and Filipino origin, supported by documentary evidence of misapplication of DOD policies and reprisal in extending incumbents’ appointments. The RTC awarded actual damages of US $39,662.49 (converted at 1976 rates), moral and exemplary damages of P100,000, attorney’s fees (20% of actual damages), and costs.
Court of Appeals Ruling
The CA reversed, holding that the challenged appointments and personnel decisions were sovereign acts of the United States on its base, thus immune from suit under the doctrine of foreign-state immunity and the Military Bases Agreement, and that Philippine courts should not interfere in a purely internal U.S. affair.
Issues for Supreme Court Review
- Whether private respondents, U.S. military personnel officers, enjoy sovereign immunity from suit in Philippine courts.
- Whether petitioners established discrimination and whether the award of damages was proper.
- Whether petitioners’ resort to Philippine courts was barred by pursuit or exhaustion of U.S. administrative remedies.
Sovereign Immunity and Personal Liability
While the 1987 Constitution reaffirms foreign sovereign immunity, the Supreme Court clarified that this immunity does not extend to state officers sued in their personal capacity for acts beyond or without legal authority. Unauthorized, malicious, or discriminatory conduct falls outside sovereign protection. Accordingly, Detwiler and Persi, having committed actionable torts beyond their official mandate, could be held personally liable despite the United States’ status.
Discrimination Findings Upheld
The Supreme Court accorded deference to the RTC’s credibility and factual findings. Persi’s failure to follow DODI 1400.23 and AF Reg 40-301, reliance on CORRO to fill a position reserved for local dependents, and Detwiler’s inconsistent handling of incumbents’ extensions demonstrated discriminatory animus. Documentary evidence—including the EEO examiner’s report, U.S. Civil Service Commission letters, and the Staff Judge Advocate’s memorandum—corroborated deliberate procedural abuse.
Damages
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Parties
- Petitioners: Loida Q. Shauf (Filipino national, civil service eligible, former GS-1710-9 Guidance Counselor) and her husband Jacob Shauf.
- Respondents: Hon. Court of Appeals; Don E. Detwiler (Civilian Personnel Officer, Clark Air Base); Anthony Persi (Education Director, Clark Air Base).
Factual Background
- Clark Air Base established under the 1947 Philippines–U.S. Military Bases Agreement.
- Third Combat Support Group operates the Central Civilian Personnel Office (CCPO) and Education Branch.
- During the events, Detwiler headed CCPO; Persi directed educational services and recruitment.
- October 1976: Vacancy for Guidance Counselor, GS-1710-9. Shauf applied.
- Shauf’s qualifications: MA (Univ. of Santo Tomas, 1971); doctoral-level coursework in counseling psychology; 34 semester hours in psychology-guidance; 25 quarter hours in human behavioral science; four years’ prior service at GS-9 level.
Administrative EEO Complaint
- Shauf filed U.S. Equal Employment Opportunity complaint alleging discrimination based on nationality and sex.
- Investigator Rudolph Duncan found Shauf “highly qualified” and identified procedural irregularities in Persi’s recruitment.
- Persi screened local applicants, questioned Shauf’s work records, returned applications, and sought CORRO referrals.
- CORRO selected Edward B. Isakson (later deemed unqualified by U.S. Civil Service Commission).
- U.S. Civil Service Commission ordered Isakson’s removal; Detwiler ignored the directive.
- A “Notice of Proposed Disposition” offered Shauf a temporary overhire position with implied promise of future permanent appointment; permanent vacancy instead filled by extending another appointee’s term.
Trial Court Proceedings
- April 27, 1978: Shauf sued Detwiler and Persi for damages in RTC Angeles City (Civil Case No. 2783).
- Defendants’ motion to dismiss (sovereign immunity under Bases Agreement) denied by RTC.
- Parties stipulated facts: vacancy existed; Shauf was qualified and locally availabl