FERNANDO A. FROILAN vs. PAN ORIENTAL SHIPPING Co.

95 Phil 905
Ponente: C.J. Paras

Facts:
Fernando A. Froilan, the plaintiff-appellee, filed a case against Pan Oriental Shipping Co., the
defendant-appellant, on February 3, 1951, saying that he bought the vessel FS-197 from the
Shipping Commission. The Shipping Commission seized the vessel and declared the selling
contract void. Subject to the consent of the President of the Philippines, the Shipping
Commission chartered and delivered said vessel to Pan Oriental Shipping Co.

The lower court granted Froilan's request for a writ of replevin to recover the vessel on February
3, 1951. As a result, Pan Oriental Shipping Co. filed an answer on March 1, 1951, disputing
Froilan's title to the custody of the vessel. The state then filed a request to dismiss the Pan
Oriental Shipping Co.'s counterclaim. The Republic of the Philippines had asked the lower court
to dismiss the Pan Oriental Shipping Co.'s counterclaim.

As a result, the defendant requests that the intervenor, the Republic of the Philippines, either
deliver the vessel to the defendants or recover it from the plaintiff.

Issues:
Whether the filing of a complaint in intervention by the Philippine government constitutes a
waiver of its right of non-suability.

Ruling:
The State's immunity from action is another reason for dismissing the defendant's counterclaim.
This is untenable since the Government effectively abandoned its right of non-suability by
bringing an intervention complaint. As a result, the appealed order is overturned and the case is
referred back to the lower court for additional proceedings.