Case
Department of
Agriculture
Vs.
NLRC GR
104269, 227
SCRA 693 [Nov
11, 1993]
Facts
The petitioner DA and Sultan
Security Agency (SSA) entered into a
contract for security services to be
provided by SSA to the said
governmental entity.
Guards were deployed by SSA in the
various premises of the DA.
Several Guards of the SSA filed a
complaint against DA and SSA for
underpayment of wages,
nonpayment of the 13th month pay
etc.,
The Executive Labor Arbiter
rendered a decision finding the DA
jointly and severally liable with SSA
for the payment of the money claims
and a writ of execution was
accordingly issued. The DA prayed to
quash the writ of execution with the
NLRC which did not. The DA asserts
State immunity.
Issues
May the writ of
execution be directed
against the properties
of the DA to satisfy a
final and executory
judgment?
Held
NO
Ratio/Ruling
When the State
waives its
immunity, all it
does, in effect, is to
give the other party
an opportunity to
prove, if it can, that
the State has a
liability. The Court
reiterated Republic
v. Villasor: “power
of the Courts ends
when the judgment
is rendered, since
government funds
and properties may
not be seized under
writs or execution
or garnishment to
satisfy such
judgments.
Disbursements of
public funds must
be covered by the
correspondent
appropriation as
required by law.”
Government-owned
or controlled
corporations have
juridical
personalities
separate and
distinct from the
government, and
are thus not
covered by State
immunity from suit.
Their funds are
therefore not
exempt from
garnishment.