CONSTITUTIONAL LAW I 1

Republic v. Judge of CFI Rizal (1980)
G.R. No. L-35919
Facts: Respondent, Jose Sison, filed a complaint against
Rice and Cord Administration (RCA) for a sum of money
with the Court of First Instance of Rizal, presided by the
respondent Judge. He later filed a motion to amend the
complaint for the purpose of showing his actionable
interest as assignee of the purchase price of the unpaid
deliveries of corn grains to the RCA.
The RCA filed a motion to dismiss the complaint on the
ground of non-suability of the RCA as mere
governmental agency of the Republic of the Philippines
but it was denied by the respondent Judge.
After a trial, the respondent Judge ruled in favor of
Sison and ordered the RCA to pay the corn grains it
purchased from Sison (1,628,451PHP) and the
attorney's fees (250,000PHP) and the costs of the suit.
The RCA later on filed its record on appeal. Sison filed
a motion to dismiss the appeal for the RCA's failure to
post an appeal bond and the RCA, represented by the
office of the Solicitor General, filed an opposition to
Sison's motion to dismiss the appeal. The record on
appeal filed by the RCA was approved by the
respondent Judge but the RCA's exemption from the
payment of legal fees and from posting of the appeal
bond was denied.
not possessed of a separate and distinct corporate
existence. On the contrary, by the law of its creation
(Section 2, Republic Act No. 3452), it is an office directly
under the Office of the President of the Philippines.
The mercantile activity of RCA in the buying and selling
of palay, rice, and corn is only incident to its primary
governmental function which is to carry out its
declared policy of subsidizing and stabilizing the price
of palay, rice, and corn in order to make it well within
the reach of average consumers, an object obviously
Identified with the primary function of government to
serve the well-being of the people. As a governmental
agency under the Office of the President the RCA is
thus exempt from the payment of legal fees as well as
the posting of an appeal bond. It is also exempt from
the requirement of filing an appeal bond on taking an
appeal from an adverse judgment, since there could be
no doubt, as to the solvency of the Government. This
well-settled doctrine of the Government's exemption
from the requirement of posting an appeal bond.

The respondent Judge issued an order giving the RCA 5

days within which to post an appeal bond. The RCA
filed a motion for reconsideration, alleging that they
are exempt from posting an appeal bond. Sison filed a
motion to dismiss the appeal on the ground of
petitioner's refusal to file the appeal bond. The
respondent Judge dismissed the RCA's appeal and
ruled that the RCA, being a mere instrumentality of the
Government of the Philippines, is not exempt from the
payment of legal fees and from posting of an appeal
bond.

Issue: Whether or not the petitioner RCA is exempt

from paying legal fees and from posting an appeal
bond.

Held: Yes, the Court found the petition meritorious.

RCA is a governmental agency of the Republic of the

Philippines without a separate, distinct and
independent legal personality from the latter. RCA is