GAUDENCIO RAYO vs.

COURT OF FIRST INSTANCE

OF BULACAN G.R. No. L-55273-83 December 19, 1981
FACTS: At the height of the infamous typhoon "Kading", the respondent opened simultaneously all the
three floodgates of the Angat Dam which resulted in a sudden, precipitate and simultaneous opening of
said floodgates several towns in Bulacan were inundated. The petitioners filed for damages against the
respondent corporation.
Petitioners opposed the prayer of the respondents forn dismissal of the case and contended that the
respondent corporation is merely performing a propriety functions and that under its own organic act, it
can sue and be sued in court.
ISSUE: W/N the respondent performs governmental functions with respect to the management and
operation of the Angat Dam.
W/N the power of the respondent to sue and be sued under its organic charter includes the power to be
sued for tort.
HELD: The government has organized a private corporation, put money in it and has allowed it to sue and
be sued in any court under its charter.
As a government owned and controlled corporation, it has a personality of its own, distinct and separate
from that of the government. Moreover, the charter provision that it can sue and be sued in any court.