NHA v. Roxas, 773 SCRA 358, G.R. No.

171953 (October 21, 2015)

FACTS:

On December 4, 1985, Ernesto Roxas applied for commercial lots in the

Dagat-dagatan Development Project (project) with a total area of 176 square
meters. The National Housing Authority (NHA) issued the notice of award in favor of
Roxas at P1,500.00/square meter. Due to a final subdivision project survey, the
area of the subject lots increased to 320 square meters. NHA informed Roxas about
the increased area and approved the awarding of the additional 144 square meters
at P3,500/square meter. Roxas expressed his interest in purchasing the added area;
however, he appealed for the reduction of the price to P1,500/square meter. He
pointed out that the renumbered lots, which caused the additional 144 square
meters, were unilaterally imposed by NHA upon him and that although he desired
to purchase the increased area, the purchase must be in accordance with the terms
and conditions contained in the order of payment and notice of award issued to
him. NHA rejected his appeal.

Roxas went to the Regional Trial Court (RTC) to compel NHA to comply with the
terms and conditions of the order of payment and the notice of award. The RTC
ruled in favor of Roxas, declaring him the legal awardee of the subject lots with a
total area of 320 sq. meters. The RTC ordered NHA to execute the corresponding
Contract to Sell at the cost of P1,500 per sq. meter. The RTC also ordered NHA to
pay Roxas P30,000 by way of reasonable Attorney’s Fees. NHA appealed; however,
the Court of Appeals (CA) affirmed RTC’s judgment and later rejected NHA’s motion
for reconsideration.

ISSUES:

1. Whether or not NHA is immune from the suit of Roxas;

2. Whether or not Roxas has the right to acquire the subject lots at
Pl,500.00/square meter; and
3. Whether or not Roxas should be awarded the Attorney’s Fees.

RULING: NO/YES (CATEGORICAL ANSWER),

1. YES. NHA could sue and be sued. Although NHA is a government-owned or

-controlled corporation (GOCC), it is not covered by the State’s immunity from
suit as mentioned in Section 6(i) of Presidential Decree No. 757.

PRESIDENTIAL DECREE No. 757

CREATING THE NATIONAL HOUSING AUTHORITY AND DISSOLVING THE EXISTING
HOUSING AGENCIES, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES
Section 6. Powers and functions of the Authority. The Authority shall have the
following powers and functions to be exercised by the Board in accordance with the
established national human settlements plan prepared by the Human Settlements
Commission:
(i) Sue and be sued
Express Consent

2. YES. As stated in Section 12 of the aforementioned Presidential Decree No. 757,

NHA possesses the legal competence and authority to directly grant Roxas the
right to acquire the subject lots (inclusive of the additional area) at
P1,500/square meter. NHA does not need to go through the Commission on
Audit (COA) for the review and approval of the contract to sell.

Section 12. Completed Projects: Management of Disposition. The Authority shall

determine, establish and maintain the most feasible and effective program for the
management or disposition of specific housing or resettlement projects undertaken
by the Authority. Unless otherwise decided by the Board, completed housing or
resettlement projects shall be managed and administered by the Authority.

3. The main relief in the RTC judgment, which granted Roxas the right to acquire
the subject lots at P1,500/square meter must be distinguished from the
secondary relief for attorney’s fees of P30,000. The former falls under the
ordinary course of the management or disposition of the Dagat-dagatan
 Development Project undertaken by the NHA, while the latter does not fall in the
usual course of activities of the NHA under its charter. Pursuant to Section 26 of
Presidential Decree No. 1445, Roxas should first bring up the awarding of the
attorney’s fees to COA prior to its enforcement against the NHA.

PRESIDENTIAL DECREE No. 1445

THE STATE AUDIT CODE OF THE PHILIPPINES
Section 26. General jurisdiction. The authority and powers of the Commission shall
extend to and comprehend all matters relating to auditing procedures, systems and
controls, the keeping of the general accounts of the Government, the preservation
of vouchers pertaining thereto for a period of ten years, the examination and
inspection of the books, records, and papers relating to those accounts; and the
audit and settlement of the accounts of all persons respecting funds or property
received or held by them in an accountable capacity, as well as the examination,
audit, and settlement of all debts and claims of any sort due from or owing to the
Government or any of its subdivisions, agencies and instrumentalities. The said
jurisdiction extends to all government-owned or controlled corporations, including
their subsidiaries, and other self-governing boards, commissions, or agencies of the
Government, and as herein prescribed, including non-governmental entities
subsidized by the government, those funded by donation through the government,
those required to pay levies or government share, and those for which the
government has put up a counterpart fund or those partly funded by the
government.