Leopoldo T. Bacani and Mateo A. Matoto, petitioners, vs.
National Coconut Corporation, respondent
GR No. L-9657, November 29, 1956
FACTS:
Respondents herein are court stenographers in the Branch VI of the Court of First Instance of
Manila. During the pendency of the Sycip vs. National Coconut Corporation, the counsel for
defendant requested for copies of the transcript of hearing from petitioner stenographers. After
complying with the request, the petitioners were paid in the amounts of P564 for Bacani and
P150 for Matoto.
Upon inspecting the books of the respondent, its Auditor General disallowed payments of these
fees and sought the recover of the amounts paid. The Auditor General then required the plaintiffs
to reimburse said payments on the ground that National Coconut Corporation, being a
government entity, was exempt from the payment of the fees in question.
ISSUE: Whether or not National Coconut Corporation may be considered as included in the term
“Government of the Republic of the Philippines” under Rule 130 of the Rules of Court.
HELD: No. National Coconut Corporation is not considered a part of the Government of the
Philippines for they do not come under the classification of municipal or public corporation. It
was organized with the purpose of “adjusting the coconut industry to a position independent of
the trade preferences in the United States” and of providing “facilities for the better curing of
copra products and the proper utilization of coconut by-products”. It was also given a corporate
power separate and distinct from our government and was made subject to the provisions of the
Corporation Law in so far as its corporate existence and the powers that it may exercise are
concerned. The Court also ruled that the mere fact that the Government happens to be a majority
stockholder does not make it a public corporation. Therefore, NACOCO is not exempted to pay
legal fees, and all payments made to the petitioners are valid, just, and legal.