Merritt v Government of the Philippine Islands 34 Phil 311

The facts of the case took place in the 1910s. E. Merritt was a
constructor who was excellent at his work. One day, while he was riding
his motorcycle along Calle Padre Faura, he was bumped by a government
ambulance. The driver of the ambulance was proven to have been
negligent. Because of the incident, Merritt was hospitalized and he was
severely injured beyond rehabilitation so much so that he could never
perform his job the way he used to and that he cannot even earn at least
half of what he used to earn.
In order for Merritt to recover damages, he sought to sue the government
which later authorized Merritt to sue the government by virtue of Act 2457
enacted by the legislature (An Act authorizing E. Merritt to bring suit
against the Government of the Philippine Islands and authorizing the
Attorney-General of said Islands to appear in said suit). The lower court
then determined the amount of damages and ordered the government to
pay the same.
ISSUE: Whether or not the government is liable for the negligent act of
the driver of the ambulance.
HELD: No. By consenting to be sued a state simply waives its immunity
from suit. It does not thereby concede its liability to plaintiff, or create any
cause of action in his favor, or extend its liability to any cause not
previously recognized. It merely gives a remedy to enforce a preexisting
liability and submits itself to the jurisdiction of the court, subject to its
right to interpose any lawful defense. It follows therefrom that the state,
by virtue of such provisions of law, is not responsible for the damages
suffered by private individuals in consequence of acts performed by its
employees in the discharge of the functions pertaining to their office,
because neither fault nor even negligence can be presumed on the part of
the state in the organization of branches of public service and in the
appointment of its agents. The State can only be liable if it acts through a
special agent (and a special agent, in the sense in which these words are
employed, is one who receives a definite and fixed order or commission,
foreign to the exercise of the duties of his office if he is a special official)
so that in representation of the state and being bound to act as an agent
thereof, he executes the trust confided to him.

In the case at bar, the ambulance driver was not a special agent nor was a
government officer acting as a special agent hence, there can be no
liability from the government. The Government does not undertake to
guarantee to any person the fidelity of the officers or agents whom it
employs, since that would involve it in all its operations in endless
embarrassments, difficulties and losses, which would be subversive of the
public interest.