Veterans vs. The Court of Appeals

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Veterans Manpower and Protective Services vs.

The Court of Appeals


G.R. No. 91359. September 25, 1992

Facts:
Veterans Manpower and Protective Services Inc., petitioner,
vs.
The Court of Appeals, The Chief of Philippine Constabulary and Philippine
Constabulary Supervisory Unit for Security and Investigation Agencies (PC-
SUSIA), respondents.
Franciso Lava Jr. and Andresito Fornier for petitioner.
Petitioner, Veterans Manpower and Protective Services Inc. (VMPSI) filed a
complaint in the RTC of Makati, Metro Manila on March 28, 1988 alleges that the
provisions under Section 4, 17 of the Republic Act No. 5487 by PD No. 11 or the
Private Security Agency Law and paragraph 3, subparagraph (g) of the Modifying
Regulations on the Issuance of License to Operate and Priavte Security Licenses
and Specifying Regulations for the Operation of PADPAO, requiring “all private
security agencies/companies security forces must register as members of any
PADPAO Chapter …” violate the 1987 Constitution against the monopolies, unfair
competition and combinations in restraint of trade, and tend to favor and
institutionalize the Philippine Association of Detective and Protective Agency
Operators, Inc. (PADPAO) which is monopolistic because it has an interest in
more than one security agency.
June 29, 1987, Odin Security Agency (Odin) filed a complaints against the
petitioner VMPSI to PADPAO accusing of cut-throat competition and charging the
customer lower than the standard minimum rates provided in which PADPAO and
respondent PC-SUSIA found the petitioner VMPSI guilty and recommended the
expulsion and cancellation of its license to operate.
Upon the petitioner VPMSI’s license was expiring on March 31, 1988, filed a case
against respondents PC Chief and PC-SUSIA when VMPSI wrote a letter to PC
Chief on March 10, 1988 requesting him to set aside the findings of PADPAO with
no reply. The court issued a retraining order against PC Chief and PC-SUSIA
“from committing acts that would result in the cancellation or non-renewal pf
VMPSI’s license”

Issue:
Whether or not VMPSI’s complaint against the PC Chief and PC-SUSIA is a suit
against the State without its consent.
Ruling:
Yes. A public official may sometimes be held liable in his personal or private
capacity if he acts in bad faith, or beyond the scope of his authority or
jurisdiction, however, since the acts for which the PC Chief and PC-SUSIA are
being called to account in this case, were performed as part of their official
duties, without malice, gross negligence, or bad faith, no recovery may be had
against them in their private capacities. Furthermore, the Supreme Court agrees
with the Court of Appeals that the Memorandum of Agreement dated May 12,
1986 does not constitute an implied consent by the State to be sued. The
consent of the State to be sued must emanate from statutory authority, hence, a
legislative act, not from a mere memorandum. Without such consent, the trial
court did not acquired jurisdiction over the public respondents. Petition for review
is denied and the judgment appealed from is affirmed in toto.

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