Lung Chea Kung Kee & Co. v. Wright
REITERATIONFacts
The Antecedents: Plaintiff, a copartnership based in Shanghai, China, sought a writ of mandamus to compel the Insular Auditor to countersign a warrant. This warrant was drawn by the Collector of Customs against the "General Fund" of the Bureau of Customs to satisfy a judgment. Procedural History: The Supreme Court had previously rendered a decision in civil action G.R. 21362, ordering the Court of First Instance (CFI) to enter judgment in favor of the plaintiff against Vicente Aldanese, Collector of Customs, for P47,816.32 in damages due to the misdelivery of merchandise. The CFI subsequently entered this judgment. The Collector of Customs then drew a warrant against the Insular Treasury's "General Fund" for this amount. The Petition: The plaintiff presented the warrant to the Insular Auditor for countersignature as required by law. The Insular Auditor refused to countersign the warrant, prompting the plaintiff to file an action for a writ of mandamus, alleging a violation of duty and lack of adequate remedy at law.
Issue(s)
Whether the Insular Auditor may be compelled by mandamus to countersign a warrant drawn against the "General Fund" of the Bureau of Customs to satisfy a judgment for damages against the Collector of Customs for a tort committed by a subordinate. Whether the Government of the Philippine Islands is liable for damages for the negligent acts of its regular officials and employees in the performance of their ordinary functions.
Ruling
The demurrer to the petition is sustained, and the petition is dismissed. The Insular Auditor is not compelled to countersign the warrant.
Ratio Decidendi
On the issue of compelling the Insular Auditor to countersign the warrant: The Court held that the Insular Auditor was not compelled to countersign the warrant. The warrant was drawn to satisfy a judgment for damages against the Collector of Customs for a tort committed by a subordinate. The Court emphasized that there was no judgment against the Government itself. Public funds, such as the "General Fund" of the Bureau of Customs, are not the property of the Collector of Customs but are public funds that can only be used for the satisfaction of obligations of the Government, absent specific statutory provisions to the contrary. Since the warrant contemplated an expenditure for a purpose other than a direct government obligation, the Insular Auditor had the right and duty to refuse to countersign it. On the issue of Government liability for torts of its employees: The Court reiterated the principle that, in common with other governments, the Government of the Philippine Islands is not liable for damages for the negligent acts of its regular officials and employees in the performance of their ordinary functions. This principle, established in cases like Merritt v. Government of the Philippine Islands, means that the Government cannot be sued for torts committed by its agents unless there is a specific law waiving its immunity from suit and consenting to be sued for such acts. Therefore, a judgment for damages against a government official for the tort of a subordinate does not automatically create an obligation on the part of the Government to pay from public funds without proper legislative appropriation or authorization.
Main Doctrine
The Insular Auditor is not compelled to countersign a warrant drawn against public funds to satisfy a judgment for damages against the Collector of Customs for a tort committed by a subordinate, as the Government is not liable for such acts unless specifically provided by statute, and public funds can only be used for authorized government obligations.