acaylar

FONTANILLA VS NATIONAL IRRIGATION ADMINISTRATION (NIA) [1991]

FACTS:

A pick-up owned and operated by NIA bumped a bicycle ridden by Francisco Fontanilla which caused the latter’s death. Spouses Fontanilla filed an action for damages for the death of their son against NIA, a government agency. NIA contends that it is tasked with governmental functions, and is therefore not liable for the tortious act of its driver who was not its special agent.

ISSUES:

1) Whether or not NIA is a government agency performing governmental functions, and is therefore not liable.

2) Whether or not NIA can sue and be sued

RULING:

1) No. NIA was not created for purposes of local government. While it may be true that the NIA was essentially a service agency of the government aimed at promoting public interest and public welfare, such fact does not make the NIA essentially and purely a "government-function" corporation. NIA was created for the purpose of "constructing, improving, rehabilitating, and administering all national irrigation systems in the Philippines” but these functions are only incidental to the principal aim of the agency- the irrigation of lands which is proprietary in nature.

2) Yes. NIA may sue and be sued in court. It is a government agency invested with a corporate personality separate and distinct from the government. It has its own assets and liabilities. It is a government agency with a juridical personality separate and distinct from the government. It is not a mere agency of the government but a corporate body performing proprietary functions.