SANTIAGO vs REPUBLIC

87 scra 294

Facts: In January 1971, Ildefonso Santiago gratuitously donated a parcel of land to the
Bureau of Plant Industry. The terms of the donation are; that the Bureau should
construct a building on the said lot and that the building should be finished by December
7, 1974, that the Bureau should install lighting facilities on the said lot. However, come
1976 there were still no improvements on the lot. This prompted Santiago to file a case
pleading for the revocation of such contract of donation. The trial court dismissed the
petition claiming that it is a suit against the government and should not prosper without
the consent of the government.

Issue: Whether or not the state has not waived its immunity from suit.

Held: No. The government has waived its immunity and such waiver is implied by virtue
of the terms provided in the deed of donation. The government is a beneficiary of the
terms of the donation. But the government through the Bureau of Plant Industry has
breached the terms of the deed by not complying with such, therefore, the donor
Santiago has the right to have his day in court and be heard. Further, to not allow the
donor to be heard would be unethical and contrary to equity which the government so
advances. Case should prosper.