Dear Atty. Gab,

Musta Atty? I’m writing to you because I’m in a really tough spot. I run a small construction business, and a few years ago, I did some work for a government agency. We had a contract, but they refused to pay the final bill, claiming some issues with the project’s completion.

I sued them to get paid what I was owed, and surprisingly, I won! The court ordered them to pay me not just the amount of the unpaid bill but also damages and attorney’s fees. But now, they’re saying they can’t pay me because they need a special permission or something from another government office. They’re using all sorts of technicalities to delay the payment, even though the court decision is final.

I’m confused. The court said I should be paid, but the government agency is acting like the court’s decision doesn’t matter. Can they really do that? Is there anything I can do to actually get the money that the court said is rightfully mine? I’m at my wit’s end, and any advice you can give would be a huge help.

Sincerely,
Carlos Mendoza

Dear Carlos,

Musta Atty! I understand your frustration with the situation you’re facing. It’s incredibly disheartening to win a legal battle only to encounter further obstacles in receiving what the court has awarded you. The core issue here revolves around the government’s unique position regarding the enforcement of court judgments against it.

In the Philippines, while the government can be sued, the execution of judgments against it is not always straightforward. Government funds are generally protected from immediate seizure to ensure public services are not disrupted. However, this doesn’t mean you’re without recourse. There are specific procedures and legal principles that apply to your situation, which I’ll explain in more detail below.

Navigating the Maze: Government Immunity and Your Claim

The principle at play here is rooted in the concept of sovereign immunity, which, in your case, affects how a judgment against a government entity can be enforced. This doesn’t mean the government is above the law, but rather that certain procedures must be followed to ensure that public funds are disbursed appropriately and in accordance with legal requirements.

As a general rule, government funds are not subject to garnishment or execution without a specific appropriation. This is based on the principle that public funds are allocated for specific purposes, and diverting them without proper authorization could disrupt essential government functions. However, it is important to know that the State’s suability is different from its liability. The Supreme Court explained:

A distinction should first be made between suability and liability. “Suability depends on the consent of the state to be sued, liability on the applicable law and the established facts. The circumstance that a state is suable does not necessarily mean that it is liable; on the other hand, it can never be held liable if it does not first consent to be sued. Liability is not conceded by the mere fact that the state has allowed itself to be sued. When the state does waive its sovereign immunity, it is only giving the plaintiff the chance to prove, if it can, that the defendant is liable.”

This means that while you were able to sue the government agency and obtain a favorable judgment, the actual payment of that judgment is subject to additional requirements.

One of those requirements is compliance to Presidential Decree No. 1445 (Government Auditing Code of the Philippines), which outlines the procedures for settling claims against the government. As the Supreme Court said:

The execution of the monetary judgment against the UP was within the primary jurisdiction of the COA. This was expressly provided in Section 26 of Presidential Decree No. 1445… It was of no moment that a final and executory decision already validated the claim against the UP. The settlement of the monetary claim was still subject to the primary jurisdiction of the COA despite the final decision of the RTC having already validated the claim. As such, Stern Builders and dela Cruz as the claimants had no alternative except to first seek the approval of the COA of their monetary claim.

Because you are dealing with government funds, the Commission on Audit (COA) has the primary jurisdiction to examine, audit and settle all debts and claims of any sort due from or owing to the Government or any of its subdivisions, agencies and instrumentalities pursuant to Presidential Decree No. 1445 (Government Auditing Code of the Philippines). You need to take note, according to the Supreme Court:

The UP correctly submits here that the garnishment of its funds to satisfy the judgment awards of actual and moral damages (including attorney’s fees) was not validly made if there was no special appropriation by Congress to cover the liability. It was, therefore, legally unwarranted for the CA to agree with the RTC’s holding in the order issued on April 1, 2003 that no appropriation by Congress to allocate and set aside the payment of the judgment awards was necessary because “there (were) already an appropriations (sic) earmarked for the said project.”

Furthermore, you need to remember that disbursements of public funds must be covered by the corresponding appropriation as required by law. The functions and public services rendered by the State cannot be allowed to be paralyzed or disrupted by the diversion of public funds from their legitimate and specific objects, as appropriated by law.

Therefore, while the court’s decision is indeed a significant victory, the government agency is correct in stating that further steps are necessary to release the funds. This is not necessarily an attempt to undermine the court’s decision but rather adherence to the established procedures for handling public funds.

Practical Advice for Your Situation

• File a Claim with the COA: Formally submit your claim, along with the court decision and supporting documents, to the Commission on Audit. This is a mandatory step to initiate the process of auditing and settling your claim.
• Follow Up Regularly: Stay in contact with the COA to monitor the progress of your claim. Inquire about the status and any additional requirements they may have.
• Coordinate with the Government Agency: Work with the government agency involved to understand their internal processes and any specific requirements they may have for processing the payment.
• Seek Legal Assistance: Consult with a lawyer experienced in dealing with government claims to ensure you are navigating the process correctly and protecting your rights.
• Be Patient: Understand that the process of settling claims against the government can be lengthy. Be prepared for potential delays and remain persistent in pursuing your claim.
• Explore Alternative Resolutions: Consider exploring alternative dispute resolution methods, such as mediation, to potentially expedite the settlement process.
• Document Everything: Maintain meticulous records of all communications, submissions, and documents related to your claim. This will be crucial in case of any disputes or appeals.

While the road ahead may seem challenging, remember that the court’s decision is in your favor. By following the proper procedures and seeking expert legal guidance, you can increase your chances of successfully obtaining the payment that is rightfully yours. Do not be discouraged. Instead, equip yourself with patience and knowledge of the law.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.