Case Title: Rayo vs. CFI of Bulacan, G.R. No.

L-55273-83

Date: December 19, 1981

Topic: Doctrine of State Immunity

Case Doctrine: GOCCs have a personality of their own and distinct from the
government

Facts:
Respondent corporation, National Power Corporation, acting through its
superintendent, Benjamin Chavez simultaneously opened all three flood gates of the
Angat Dam during the typhoon “Kading” leading to several towns of Bulacan being
inundated and in Norzagaray, hundreds of residents died and properties worth millions
were destroyed. Petitioners, who were among the victims, filed 11 complaints, with
similar cause of action, for damages against respondent corporation and Benjamin
Chavez. Respondent corporation invoked its defense of “performing a purely
governmental function in the operation of Angat Dam, thus they cannot be sued
without the express consent of the State”. Petitioners contended that respondent
corporation was performing its proprietary functions and stated under Section 3 (d) of
R.A. No. 6395, it can be sue and be sued in any court.
The Court of First Instance of Bulacan dismissed all the petitioners’ complaints and
even their motion for reconsideration. Hence, the petitioners filed for review on
certiorari.
The decision in this case is without the memorandum of the Solicitor General.

Issue:
(1) Whether or not corporation respondent performed a governmental function in the
management and operation of the Angat Dam
(2) Whether or not the corporation respondent’s power to sue and be sued under its
organic acts, R.A. No. 6395, includes the power to be sued for tort

Held:
It is unnecessary to determine if NPC performed its governmental function, it is sufficient
that the government organized a private corporation and has allowed it to sue and be
sued under its charter. Further, a Government Owned and Controlled Corporation has a
personality of its own, distinct from the government. Finally, the provision allowing the
private corporation to sue and be sued is without qualification on the cause of action and
it can include a tort claim.