Case Summary (G.R. No. 79253)
Trial Court Proceedings
Montoya filed Civil Case No. 224-87 in the RTC, Cavite, seeking P500,000 in moral and P100,000 in exemplary damages against Bradford. Bradford failed to answer within the extended periods and, together with the U.S. Government, moved to dismiss based on sovereign immunity and immunity for official acts under the 1947 agreements. Montoya cross-moved for preliminary attachment, alleging Bradford’s imminent departure and dissolution of assets.
RTC Rulings
On July 17, 1987, Branch 22 denied the motion to dismiss for lack of indubitable grounds and granted preliminary attachment upon bond. The writ issued July 28, 1987. Bradford did not file a motion for reconsideration; Montoya presented her evidence ex parte, and on September 10, 1987, the RTC awarded P300,000 moral, P100,000 exemplary damages, and P50,000 expenses and fees.
Petition for Certiorari and Prohibition
Bradford and the U.S. Government petitioned under Rule 65 to annul the July 17 resolution and the attachment writ, alleging grave abuse of discretion and lack of jurisdiction due to sovereign immunity. They sought a restraining order against the RTC decision and execution.
Legal Issue
Whether the trial court gravely abused its discretion in refusing to dismiss the action based on:
- State immunity of the United States from suit without consent;
- Bradford’s immunity as an official performing functions under the Military Assistance and Bases Agreements; and
- The action being in effect a suit against the U.S. Government.
Supreme Court Analysis
- Intervention and Procedural Lapse
- The U.S. Government was not originally impleaded yet joined the motion to dismiss without leave to intervene. Its voluntary appearance constituted submission to RTC jurisdiction.
- Ground of Dismissal as Cause of Action
- The motion to dismiss effectively pleaded failure to state a cause of action. The RTC should have deferred resolution rather than outright denial, but the decision to proceed did not prejudice review.
- Exception to State Immunity
- Under Art. XVI, Sec. 13 of the 1987 Constitution and international law, sovereign immunity protects acts within lawful authority but not unauthorized, ultra vires, or tortious acts by officials.
- Precedents (Baer v. Tizon; Shauf v. CA; Williams v. Rarang; Minucher v. CA) confirm that officials sued in their personal capacity for acts beyond their authority fall outside immunity.
- Application to Bradford
- The complaint’s allegations, hypothetically admitted on motion to dis
Case Syllabus (G.R. No. 79253)
Antecedent Facts
- Petitioner Nelia T. Montoya, an American citizen and identification checker at the U.S. Navy Exchange (NEX) at JUSMAG headquarters in Quezon City, filed a complaint on 7 May 1987 before the Regional Trial Court of Cavite for damages against Maxine Bradford.
- Montoya alleged that on 22 January 1987, Bradford, as store manager, ordered a search of her person, bags, and car in the parking area after shopping, in a discriminatory, oppressive manner before onlookers.
- Montoya claimed she was the only employee searched that day, supported by memoranda of other Filipino employees (Annex “A”) and a policy statement from the Navy Exchange Security Manager (Annex “B”).
- She prayed for moral damages of ₱500,000, exemplary damages of ₱100,000, attorney’s fees, and costs.
Procedural History in the RTC
- Summons and complaint were served on Bradford on 13 May 1987.
- Bradford obtained two extensions to answer, setting her deadline to 1 July 1987, but she did not file an answer.
- On 25 June 1987, Bradford and the United States of America (public petitioner) filed a joint Motion to Dismiss based on foreign sovereign immunity and official‐function immunity under the 1947 Military Assistance and Military Bases Agreements.
- Montoya filed a Motion for Preliminary Attachment on 6 July 1987 seeking to attach Bradford’s assets pending trial.
- On 17 July 1987, Branch 22, RTC of Cavite denied the Motion to Dismiss for lack of “indubitable” grounds and granted the motion for preliminary attachment upon Montoya’s posting of a ₱50,000 bond.
- A writ of attachment issued on 28 July 1987.
RTC Decision on the Merits
- Bradford was declared in default for failure to file an answer.
- Montoya presented evidence ex parte on 27 August 1987.
- On 10 September 1987, the RTC rendered judgment in favor of Montoya, awarding ₱300,000 moral damages, ₱100,000 exemplary damages, and ₱50,000 attorney’s fees against Bradford.
- Bradford and the United States filed a petition for a restraining order in the Supreme Court on 21 September 1987 and sought to enjoin further proceedings in the RTC.
Proceedings in the Supreme Court
- The Supreme Court required the respondents to comment on the