In Madag Buisan, et al. vs. Commission on Audit and Department of Public Works and Highways, the Supreme Court ruled against landowners seeking compensation for damages allegedly caused by the premature opening of the Liguasan Cut-off Channel. The Court cited the doctrine of sovereign immunity, prescription, and laches, barring the claims for lack of merit. This decision reinforces the principle that the State is generally immune from suit unless it consents, and it underscores the importance of filing claims against the government promptly.

When a Floodgate Opens: Can Citizens Sue the State for Infrastructure Damage?

In 1989, the Department of Public Works and Highways (DPWH) embarked on the Liguasan Cut-off Channel project in Maguindanao, aiming to mitigate the persistent flooding issues plaguing the region. Years later, in April 2001, the DPWH faced a barrage of claims from landowners asserting that the project’s early activation led to significant damage to their properties, crops, and other improvements. These claims ignited a series of investigations and committee formations within the DPWH, ultimately leading to a deadlock due to evidentiary challenges and the considerable time that had elapsed since the alleged damages occurred. The DPWH then referred the claims to the Commission on Audit (COA) for resolution.

On April 14, 2010, the landowners, represented by Mayor Bai Annie C. Montawal, collectively filed a petition with the COA, seeking a hefty sum of P122,051,850.00 in compensation for the extensive damages they allegedly sustained. However, their pursuit of compensation was met with resistance from both the DPWH and internal disputes among the landowners themselves. The DPWH contested the validity of the claims, challenging the landowners’ ability to substantiate their ownership of the damaged properties and establish a direct causal link between the project’s construction and the purported damages. Furthermore, the DPWH argued that the landowners’ cause of action had already expired under the statute of limitations.

The COA sided with the DPWH, denying the landowners’ money claims, primarily citing the doctrines of laches and prescription. Laches, in legal terms, refers to the unreasonable delay in asserting a right, while prescription pertains to the statutory time limit within which a legal action must be initiated. The COA found that the landowners had failed to pursue their claims within a reasonable timeframe, thereby forfeiting their right to compensation. The petitioners sought reconsideration, but the same was denied by the COA for lack of merit.

The Supreme Court addressed the question of whether the COA gravely abused its discretion in finding that the petitioners’ claim was barred by laches and prescription. The Court denied the petition, ruling that the petition failed to comply with the rules on certification against forum shopping. Section 5 of Rule 64 of the Rules of Court requires that a petition for review of judgments and final orders or resolutions of COA, the petition should be verified and contain a sworn certification against forum shopping. Citing, SEC. 3. Contents and filing of petition; effect of non-compliance with requirements. – x x x.

The petitioner shall also submit together with the petition a sworn certification that he has not theretofore commenced any other action involving the same issues in the Supreme Court, the Court of Appeals or different divisions thereof, or any other tribunal or agency; if there is such other action or proceeding, he must state the status of the same; and if he should thereafter learn that a similar action or proceeding has been filed or is pending before the Supreme Court, the Court of Appeals, or different divisions thereof, or any other tribunal or agency, he undertakes to promptly inform the aforesaid courts and other tribunal or agency thereof within five (5) days therefrom.

The failure of the petitioner to comply any of the requirements shall be sufficient ground for the dismissal of the petition.

The Court further explained that the Doctrine of Non-Suability of State insulates the DPWH, a governmental entity, from claims of damages. The fundamental law of the land provides that the State cannot be sued without its consent, citing 1987 CONSTITUTION, Article XVI, Section 3.

It is a fundamental postulate of constitutionalism flowing from the juristic concept of sovereignty that the State, as well as its government, is immune from suit unless it gives its consent. The rule, in any case, is not absolute for it does not say that the State may not be sued under any circumstances. The doctrine only conveys that “the state may not be sued without its consent;” its clear import then is that the State may at times be sued.

The Court emphasizes the DPWH exercises governmental functions that effectively insulate it from any suit, much less from any monetary liability. The construction of the Project which was for the purpose of minimizing the perennial problem of flood in the area of Tunggol, Montawal, Maguindanao, is well within the powers and functions of the DPWH as mandated by the Administrative Code of 1997. The failure to allege the existence of the State’s consent to be sued in the complaint is a fatal defect, and on this basis alone, should cause the dismissal of the complaint. Citing Republic v. Feliciano, 232 Phil. 391, 396 (1987).

Moreover, the Court ruled that the petitioners’ cause of action has been barred by prescription and laches. The petitioners asserted that the cause of action arose in 1992 but the Court stated this assertion is self-serving as no pieces of evidence was presented or even attached as supporting documents in their petition to prove their claim. Worse, the petitioners could not even pinpoint the exact moment of time of the destruction of their properties.

ART. 1146. The following actions must be instituted within four years:

(1) Upon an injury to the rights of the plaintiff;
(2) Upon a quasi-delict.

The Supreme Court ruled that the COA did not abuse its discretion in denying the petitioners’ claims for damages against the DPWH. The Supreme Court is tasked to be vigilant and conscientious in safeguarding the proper use of the government’s and, ultimately, the people’s property. The exercise of its general audit power is among the constitutional mechanisms that gives life to the check and balance system inherent in our form of government, citing Espinas v. Commission on Audit, G.R. No. 198271, April 1, 2014, 720 SCRA 302.

FAQs

What was the key issue in this case?	The key issue was whether the Commission on Audit (COA) gravely abused its discretion in denying the petitioners’ money claims against the Department of Public Works and Highways (DPWH) for damages caused by a government project. The Supreme Court ultimately addressed issues of sovereign immunity, prescription, and laches.
What is the doctrine of sovereign immunity?	The doctrine of sovereign immunity states that the State cannot be sued without its consent. This principle protects the government from being held liable for actions taken in the performance of its governmental functions.
What is prescription in the context of legal claims?	Prescription refers to the statutory time limit within which a legal action must be initiated. If a claim is not filed within the prescribed period, the right to sue is lost.
What does the term ‘laches’ mean?	Laches is the failure or neglect, for an unreasonable and unexplained length of time, to do what should have been done earlier through due diligence. It essentially means sleeping on one’s rights.
Why was the certification against forum shopping important in this case?	The certification against forum shopping is a sworn statement confirming that the petitioner has not filed any other action involving the same issues in other courts or tribunals. Failure to comply with this requirement can lead to the dismissal of the petition.
How did the DPWH’s governmental function affect the outcome of the case?	The DPWH’s construction of the project was considered a governmental function, which provided a layer of immunity from liability under the doctrine of sovereign immunity. This made it more difficult for the landowners to successfully claim damages.
What evidence did the petitioners fail to provide?	The petitioners failed to provide sufficient evidence to prove that they were the legal owners of the damaged properties and that the damage was directly caused by the DPWH’s project. Additionally, there were inconsistencies in the evidence presented.
What is the role of the Commission on Audit (COA) in cases like this?	The COA has the authority to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the government. It plays a crucial role in safeguarding public funds and ensuring accountability.

This case serves as a reminder of the importance of adhering to procedural rules, understanding the limitations of suing the government, and promptly pursuing legal claims. The Supreme Court’s decision underscores the need for substantial evidence and timely action when seeking compensation from the State.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Madag Buisan, et al. vs. Commission on Audit and Department of Public Works and Highways, G.R. No. 212376, January 31, 2017