Ruiz vs Cabahug

G.R. No. L-9990 (54 O.G. 351)

September 30, 1957

Facts:
The secretary of National Defense, defendant Hon. Sotero B. Cabahug, accepted the bid of Allied Technologists,
Inc. on July 31, 1950 for the furnishing of the architectural and engineering services in the construction of the Veterans
Hospital at the price of Php 302,700. The architectural requirements were submitted by Allied Technologies through
Enrique Ruiz, Jose Herrera and Pablo Panlillo and were approved by the United States Veterans Administration and a
contract was signed due to the technical objection to the capacity of the said company in the practice of architecture
and upon the advice of the Secretary of Justice. The defendant alleged took 15% of the sum due to Allied Technologies,
Inc. at the time of payment of the contract price for the reason that Panlillo asserted that he is the sole architect of the
Veterans Hospital, excluding Ruiz and Herrera, the assertion of which was abetted by defendant Jimenez(the first cause
of action)
The plaintiff was to be deprived of their share of professional services and their professional prestige and
standing were to be gravely damaged unless the defendants are prevented from recognizing Panlillo as the sole
architect. Furthermore, the second cause of action is Title II of the contact where at any time prior to six months after
completion and acceptance of the work under Title I, the Government may direct Allied Technologists, Inc. to do the
services stated in the said Title II yet nevertheless the completion the government declined to direct the plaintiffs to
perform the job.

ISSUE:
Whether the suit filed qualify as against the government without its consent.

HELD:
The case is a not a suit against the government, which could not be sued without its consent. It was found that
the government has already allotted the full amount for the contract price; it was the defendant-officials which were
responsible for the allegation. This was to be directed to the official alone, where they are compelled to act in
accordance with the rights established by Ruiz and Herrera or to desist them from paying and recognizing the rights and
interest in the fund retained and the credit for the job finished.
The order of dismissal was reversed and set aside the case was remanded to the court a quo for further
proceedings with costs against the defendants.