SPOUSES JOSE AND VIRGINIA FONTANILLA VS. HON.

INOCENCIO
MALIAMAN AND NATIONAL IRRIGATION ADMINISTRATION
G.R. No. 55963, G.R. No. 61045. December 1, 1989.

FACTS:
On August 21, 1976, a pickup owned by the respondent National Irrigation
Administration, driven by a certain Hugo Garcia, collided with two bicycle riders namely;
Francisco Fontanilla the son of herein petitioners, and a certain Restituto Deligo. Both
were rushed to hospital for treatment, but Francisco needed to be transferred to
another hospital where he eventually died.
Petitioners-spouses instituted a petition against the NIA for damages for the
death of their son resulting from the accident. The trial court ruled in favor of
petitioners ordering the NIA to pay damages for the death of Francisco and for actual
expenses incurred by the spouses for the hospitalization and burial.
The NIA filed a motion for reconsideration but was denied by the trial court.
Upon the NIA’s appeal to the CA, petitioners filed the instant petition with the Supreme
Court. Petitioners assert that they are entitled to moral and exemplary damages due to
respondent’s gross negligence evidenced by the NIA personnel’s failure to stop to give
assistance to the victims. Respondent denies liability for damages because it is a
governmental agency performing governmental functions, therefore, the driver, Hugo
Garcia, should bear the consequences for his act alone.
ISSUE:
Whether or not respondent National Irrigation Administration, a government
agency, is vicariously liable with their driver Hugo Garcia.

RULING:
Yes, the NIA is vicariously liable with their driver Hugo Garcia for damages
resulting from the death of Francisco Fontanilla.
As expressly provided in RA No. 3601, the National Irrigation Administration is a
government corporation exercising proprietary functions, such as the collection of fees
for the continuation of the operation of irrigation systems and to conduct business that
is incidental or conducive to the objectives of the NIA. The NIA, being a corporation,
thus, has a juridical personality separate and distinct from the government.
 Further, since the NIA is a corporation not performing governmental functions, it
becomes liable for damage caused by a negligent driver-employee resulting to injury or
death. Therefore, the NIA is placed in a position similar to an ordinary employer that is
answerable for the negligent act of its driver, Hugo Garcia.

GOVERNMENTAL and PROPRIETARY FUNCTIONS DISTINGUISHED:

Functions and activities, which can be performed only by the government, are more or
less generally agreed to be “governmental” in character, and so the State is immune
from tort liability.
On the other hand, a service which might as well be provided by a private corporation,
and particularly when it collects revenues from it, the function is considered a
“proprietary” one, as to which there may be liability for the torts of agents within the
scope of their employment.