Tan v. Director of Forestry

Tan v. Director of Forestry

G.R. No. L- 24548October 27, 1983

Makasiar, J.

Facts:

                Sometime in April 1961, the Bureau of Forestry issued Notice No. 2087, advertising for public bidding a certain tract of public forest land situated in Olongapo, Zambales, provided tenders were received on or before May 22, 1961. This public forest land, consisting of 6,420 hectares, is located within the former U.S. Naval Reservation comprising 7,252 hectares of timberland, which was turned over by the United States Government to the Philippine Government.

On May 5, 1961, petitioner-appellant Wenceslao Vinzons Tan submitted his application in due form after paying the necessary fees and posting tile required bond therefor. Nine other applicants submitted their offers before the deadline.

On May 30, 1963, the Secretary of Agriculture and Natural Resources Benjamin M. Gozon — who succeeded Secretary Cesar M. Fortich in office — issued General Memorandum Order No. 46, series of 1963, pertinent portions of which state:

xxx xxx xxx

SUBJECT: ... ... ...

(D)elegation of authority to the Director of Forestry to grant ordinary timber licenses.

1. ... ... ...

2. The Director of Forestry is hereby authorized to grant (a) new ordinary timber licenses where the area covered thereby is not more than 3,000 hectares each; and (be the extension of ordinary timber licenses for areas not exceeding 5,000 hectares each;

3. This Order shall take effect immediately.

Thereafter, Jose Y. Feliciano was appointed as Acting secretary of Agriculture and Natural Resources, replacing secretary Benjamin M. Gozon. Upon assumption of office he Immediately promulgate on December 19, 19b3 General memorandum Order No. 60, revoking the authority delegated to the Director of Forestry, under General Memorandum order No. 46, to grant ordinary timber licenses, which order took effect on the same day, December 19, 1963. Pertinent portions of the said Order read as follows:

xxx xxx xxx

SUBJECT: Revocation of General Memorandum Order No 46 dated May 30, 1963 —

1. In order to acquaint the undersigned with the volume and Nature of the work of the Department, the authority delegated to the Director of forestry under General Memorandum Order No. 46, dated May 30, 1963, to grant (a) new ordinary timber licenses where the area covered thereby is not more than 3,000 hectares each; and (b) the extension of ordinary timber licenses for areas not exceeding 3,000 hectares each is hereby revoked. Until further notice, the issuance of’ new licenses , including amendments thereto, shall be signed by the secretary of Agriculture and Natural Resources.

2. This Order shall take effect immediately and all other previous orders, directives, circulars, memoranda, rules and regulations inconsistent with this Order are hereby revoked (Emphasis supplied).

On December 19, 1963, Ordinary Timber License No. 20-’64 (NEW) dated April 22, 1963, in the name of Wenceslao Vinzons Tan, was signed by then Acting Director of Forestry Estanislao R. Bernal without the approval of the Secretary of Agriculture and Natural Resources. On January 6, 1964, the license was released by the Office of the Director of Forestry. It was not signed by the Secretary of Agriculture and Natural Resources as required by Order No. 60 aforequoted.

On February 12, 1964, Ravago Commercial Company wrote a letter to the Secretary of Agriculture and Natural Resources shall be considered by tile Natural Resources praying that, pending resolution of the appeal filed by Ravago Commercial Company and Jorge Lao Happick from the order of the Director of Forestry denying their motion for reconsideration, OTI No. 20-’64 in the name of Wenceslao V. Tan be cancelled or revoked on the ground that the grant thereof was irregular, anomalous and contrary to existing forestry laws, rules and regulations.

Issue:

                whether the case involves a suit against the State without its consent

Held:

                Yes. This action is a suit against the State which, under the doctrine of State immunity from suit, cannot prosper unless the State gives its consent to be sued. The rule establishing State immunity from suits may not be circumvented by directing the action against the officers of the State instead of against the State itself. In such cases the State’s immunity may be validly invoked against the action as long as it can be shown that the suit really affects the property, rights, or interests of the State and not merely those of the officer nominally made party defendant.

                Both the Secretary of Agriculture and Natural Resources and the Director of Forestry acted in their capacity as officers of the State, representatives of the sovereign authority discharging governmental powers. A private individual cannot issue a timber license. Consequently, a favorable judgment for the petitioner-appellant would result in the government losing a substantial part of its timber resources. This being the case, petitioner-appellant’s action cannot prosper unless the State gives its consent to be sued.