G.R No.

l-55963 DECEMBER 1,1989

SPOUSES JOSE FONTANILLA AND VIRGINIA FONTANILLA
VS.
HONORABLE INOCENCIO D. MALIAMAN and NATIONAL IRRIGATION
ADMINISTRAION
G.R No. L-61045 DECEMBER 1, 1989

FACTS:
A pick up owned by the National Irrigation Administration and driven officially by its
regular driver Hugo Garcia, bumped a bicycle ridden by Francisco Fontanilla, which
resulted in the latter’s death. The parents of Francisco filed a suit for damages against
Garcia and NIA, as Garcia’s employer. After trial, the court awarded actual, moral and
exemplary damages to Spouses Fontanilla. NIA appealed. The Solicitor General
contends that the NIA does not perform solely and primarily proprietary functions but
is an agency of the government tasked with governmental functions, and is therefore
not liable for the tortious acts of its driver Hugo Garcia who was not its special agent.
ISSUE:
Whether or not NIA is a government agency with juridical personality separate and
distinct from the government, thereby opening it up to the possibility that it may be
held liable for the damages caused by its driver, who was not its special agent.
RULING:
Yes. NIA is a government agency with a juricidal personality separate and distinct from
the government. It is not a mere agency of the government but a corporate body
performing proprietary functions. Therefore, it may be held liable for the damages
cause by the negligent act of its driver who was not a special agent.

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 Section 1 of RA No. 3601 tells us that NIA is a government agency invested with
a corporate personality separate and distinct from the government, thus is
governed by the Corporation Law. Section 2, subsection of PD 552 provides that
NIA also has its own assets and liabilities and has corporate powers to be
exercised by a Board of Director. Section 2, subsections b of PD 552 provides
that NIA may sue and may be sued in court.
 Of equal importance is the case of National Waterworks and Sewerage Authority
(NAWASA)