Rayo Vs. Cfi Bulacan (1).docx

Suit against the government #10 GAUDENCIO RAYO vs. COURT OF FIRST INSTANCE OF BULACAN FACTS: At the height of the typhoon "Kading", the respondent opened simultaneously all the three floodgates of the Angat Dam which resulted in a sudden, precipitate and simultaneous opening of said floodgates several towns in Bulacan were inundated. The petitioners filed for damages against the respondent corporation. Petitioners opposed the prayer of the respondents forn dismissal of the case and contended that the respondent corporation is merely performing a propriety functions and that under its own organic act, it can sue and be sued in court. ISSUE: W/N the respondent performs governmental functions with respect to the management and operation of the Angat Dam. W/N the power of the respondent to sue and be sued under its organic charter includes the power to be sued for tort. HELD: The government has organized a private corporation, put money in it and has allowed it to sue and be sued in any court under its charter. As a government owned and controlled corporation, it has a personality of its own, distinct and separate from that of the government. Moreover, the charter provision that it can sue and be sued in any court.