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SPS. JOSE FONTANILLA v. INOCENCIO D. MALIAMAN

FACTS:

The National Irrigation Administration (NIA) filed a Motion for Reconsideration asserting that it performs both proprietary functions and governmental functions. It argued that it should not be held liable for the tortious act of its driver as he was not its special agent. The NIA cited Presidential Decree No. 552 and the case of Angat River Irrigation System vs. Angat River Workers' Union as support. A strong dissenting opinion by former Chief Justice Roberto Concepcion argues that the Angat River System is a government entity exercising proprietary functions. The dissent cited various authorities to support the view that irrigation districts are public quasi corporations operating for the private benefit of landowners and performing proprietary functions. The dissent argues that enterprises engaged in the supply of utilities are considered proprietary in nature and yet also serve public benefit and welfare. The Solicitor General argues that the reasons presented in P.D. 552 for the existence of the NIA demonstrate that its responsibility concerns public welfare and benefit, thus an exercise of sovereignty. However, the dissenting opinion maintains that the NIA's functions are essentially proprietary in nature.

ISSUES:

  1. Whether or not the National Irrigation Administration (NIA) performs solely and primarily proprietary functions.

  2. Whether or not the NIA is liable for the tortious act of its driver.

RULING:

PRINCIPLES:

  • There is dissenting opinion that the Angat River System is a government entity exercising proprietary functions.

  • Irrigation districts in the United States are considered public quasi corporations organized for the private benefit of the landowners within its limits.

  • The construction and operation of irrigation canals and ditches are proprietary functions, making the district responsible for damages caused by negligence.

  • The functions of government can be classified into governmental or constituent and proprietary or ministrant.

  • Enterprises engaged in the supply of electric power, telecommunication, or prime necessities may have a public benefit, but their functions are basically proprietary in nature.

  • Water improvement districts are in a position similar to a city operating a waterworks system or an irrigation system, and their general purposes are not essentially public in nature. Their primary objects and purposes are of a purely local nature.