Commisioner of Public Highways V Burgos DE CASTRO March 31, 1980

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MAKASIAR [dissent] What was committed in this case was a tortious act (grossly negligent bordering on malice or bad

faith) of the employees of the SSS in foreclosing the mortgage of the wrong mortgage-debtor SSS cannot be held liable for the damages caused by the tortious acts of its employees in the performance of their regular functions SSS as a public instrumentality for social welfare is immune from suit despite its Charter provision that it can sue and be sued. SSS exercises purely governmental functions and cannot be sued without its consent for the tortious acts of its personnel

COMMISIONER OF PUBLIC HIGHWAYS V BURGOS DE CASTRO; March 31, 1980


FACTS - Appeal from a decision of the Court of First Instance of Cebu - The facts of the case is as per above except that the compensation determined is now the issue. The value of the property was pegged at P 2.37 per square meter based on the price used in the conveyance of several pieces of property in the same area at about the same time. However, the court a quo in determining due compensation, considered the value of the pesos to the dollar at the time the case was being decided. So instead of just P14,615.79 the amount awarded became P49,459.34. (the original amount of 14,615.79 divided by 2 {the exchange rate at the time of the taking to be P2.00 to US$1.00} and the product being multiplied by 6.775). Based on this amount, the court determined interest to be P145,410.44. Total due from the government, including attorneys fee of ten percent amounted to P214,356.75. - Apparently, the court a quo, in revising upward the compensation, relied on Article 1250 of the New Civil Code which provides for payment of an obligation in an amount different from what has been agreed on because of the supervention of extra-ordinary inflation or

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