26 Jusmag Philippines vs. NLRC
26 Jusmag Philippines vs. NLRC
26 Jusmag Philippines vs. NLRC
Case No. 26
Under the traditional rule of State immunity, a state cannot be sued in the courts of another State,
without its consent or waiver. However, in Santos, et al., vs. Santos, et al., we recognized an
exception to the doctrine of immunity from suit by a state, thus:
Nevertheless, if, where and when the state or its government enters into a contract, through its
officers or agents, in furtherance of a legitimate aim and purpose and pursuant to constitutional
legislative authority, whereby mutual or reciprocal benefits accrue and rights and obligations
arise therefrom, and if the law granting the authority to enter into such contract does not provide
for or name the officer against whom action may be brought in the event of a breach thereof, the
state itself may be sued, even without its consent, because by entering into a contract, the
sovereign state has descended to the level of the citizen and its consent to be sued is implied
from the very act of entering into such contract.