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    Cnmeg V Santamaria Digest

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    Nerissa Balboa
    CNMEG entered into a contract with North Luzon Railways Corporation to construct the Northrail Project. China agreed to extend credit to the Philippine government for the project through a Memorandum of Understanding. Respondents filed a case claiming the Contract and Loan Agreement were unconstitutional. CNMEG argued it had immunity from suit as an agent of China. The court ruled that CNMEG was not entitled to immunity as its purpose was proprietary rather than sovereign. The court also ruled the Contract was not an executive agreement as the parties were not recognized states.

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    Cnmeg V Santamaria Digest

    Uploaded by

    Nerissa Balboa
    2K views1 page
    CNMEG entered into a contract with North Luzon Railways Corporation to construct the Northrail Project. China agreed to extend credit to the Philippine government for the project through a Memorandum of Understanding. Respondents filed a case claiming the Contract and Loan Agreement were unconstitutional. CNMEG argued it had immunity from suit as an agent of China. The court ruled that CNMEG was not entitled to immunity as its purpose was proprietary rather than sovereign. The court also ruled the Contract was not an executive agreement as the parties were not recognized states.

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    constitutional law; state immunity from suit

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    Cnmeg v Santamaria Digest

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    CNMEG entered into a contract with North Luzon Railways Corporation to construct the Northrail Project. China agreed to extend credit to the Philippine government for the project through a Memorandum of Understanding. Respondents filed a case claiming the Contract and Loan Agreement were unconstitutional. CNMEG argued it had immunity from suit as an agent of China. The court ruled that CNMEG was not entitled to immunity as its purpose was proprietary rather than sovereign. The court also ruled the Contract was not an executive agreement as the parties were not recognized states.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views1 page

    Cnmeg V Santamaria Digest

    Uploaded by

    Nerissa Balboa
    CNMEG entered into a contract with North Luzon Railways Corporation to construct the Northrail Project. China agreed to extend credit to the Philippine government for the project through a Memorandum of Understanding. Respondents filed a case claiming the Contract and Loan Agreement were unconstitutional. CNMEG argued it had immunity from suit as an agent of China. The court ruled that CNMEG was not entitled to immunity as its purpose was proprietary rather than sovereign. The court also ruled the Contract was not an executive agreement as the parties were not recognized states.

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    CASE DIGEST: CNMEG v SANTAMARIA

    FACTS: CNMEG entered into a Contract Agreement with the North Luzon Railways Corporation
    regarding the construction of the Northrail Project. Subsequently, a Memorandum of
    Understanding between the EXIM Bank (China) and the Department of Finance where China
    agreed to extend Preferential Buyers Credit to the Philippine Government for the Northrail Project.
    Respondents then filed a civil case against the parties on the basis that the Contract and Loan
    Agreement are unconstitutional. RTC Br. 145 issued an order setting the case for hearing. CNMEG
    then filed a motion for reconsideration on the grounds that the RTC does not have jurisdiction over
    its person because it was an agent of the Chinese government and that it was immune from suit.

    ISSUES:

    1. WoN CNMEG is entitled to immunity from suit


    2. WoN the Contract Agreement is an executive agreement

    RULING:

    1. CNMEG is not entitled to immunity from suit


    Its main purpose when it entered into an agreement in the Philippines was of a proprietary
    venture and not one to function with its sovereign powers. An entity must only be granted
    immunity from suit if it has acted pursuant to the functions set by its sovereign state.
    2. The Contract Agreement is not an executive agreement
    An executive agreement is one that allows for it to be regarded as a treaty, subjecting it to
    international law. It is clear that when CNMEG and the North Luzon Railways Corporation
    entered into agreement, both parties were not recognized as states. To be recognized as
    states is a requisite for an executive agreement and in the case at bar, the aforementioned
    parties were not.

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