Commissioner of Public Highways vs San Diego
31 SCRA 616
Facts: Before WWII, the Philippine Government filed an action for the expropriation of a parcel of land owned by Hashim for the construction of a public road. Government took possession over the property after the deposit of the amount of 23, 413.64. Records of the case were destroyed during the WWII. After the war, Hashim filed an action for money claims before the CFI against Bureau of Public Highways.
The parties entered into a compromise agreement wherein the Bureau shall pay almost half of the amount claimed. The bureau failed to pay so Hashim filed a motion for the issuance of a writ of execution. Respondent judge granted the motion. The sheriff served the writ with a Notice of Garnishment to PNB against the Bureau's funds. Hashim further filed a motion for issuance of an order ordering the release of the amount. It was granted. PNB released the amount. Petitioner filed this petition for certiorari with mandatory injunction to reimburse the amount released.
Issues:
1. Whether or not the State may invoke its immunity from suit
2. Whether or not the State may impugn the validity of the compromise agreement
3. Whether or not the orders were valid
Ruling: In expropriation proceedings, the State submits to the court's jurisdiction and asks the court to affirm its right to take the property sought to be expropriated. State immunity does not apply.
Only the principal can question the authority of the counsel to enter into a compromise agreement. The state cannot raise it.
The assailed orders are void. Government funds are not subject to garnishment.