EN BANC

[G.R. No. L-20213. January 31, 1966.]

MARIANO E. GARCIA , plaintiff-appellant, vs . THE CHIEF OF STAFF and

THE ADJUTANT GENERAL, ARMED FORCES OF THE PHILIPPINES
and/or THE CHAIRMAN, PHILIPPINE VETERANS BOARD and/or THE
AUDITOR GENERAL OF THE PHILIPPINES , defendants-appellees.

Tiangco & Millosa, for the plaintiff and appellant.

Solicitor General for the defendants and appellees.

SYLLABUS

1. ACTIONS; RECOVERY OR MONEY AGAINST THE GOVERNMENT. — A claim for the

recovery of money against the government should be filed with the Auditor General, in line
with the principle that the State cannot be sued without its consent. (New Manila Lumber
Co. vs. Republic, 107 Phil., 824.)

DECISION

REGALA , J : p

This is an appeal from an order of dismissal.

It appears that on December 1, 1961, the plaintiff-appellant, Mariano E. Garcia, filed with
the Court of First Instance of Pangasinan an action to collect a sum of money against the
Chief of Staff and the Adjutant General of the Armed Forces of the Philippines, the
Chairman of the Philippine Veterans Board and/or the Auditor General. The complaint
alleged: that sometime in July, 1948, the plaintiff suffered injuries while undergoing the 10-
month military training at Camp Floridablanca, Pampanga; that sometime thereafter he
filed his claim under Commonwealth Act 400 and in April, 1957, he submitted some
papers in support of his claim to the Adjutant General's Office upon the latter's request;
that on May 2, 1957, he received a letter from the said Adjutant General's office
disallowing his claim for disability benefits; that on November 24,1958, after further
demands of the plaintiff, the Adjutant General's Office denied the said claim, alleging that
Commonwealth Act 400 had already been repealed by Republic Act 610 which took effect
on January 1, 1950; that by reason of the injuries suffered by plaintiff he was deprived of
his sight or vision rendering him permanently disabled; and that by reason of the
unjustified refusal by defendants of plaintiff's claim, the latter was deprived of his disability
pension from July, 1948 totaling no less than P4,000 at the rate of P20 a month and
suffered thereby moral damages and attorney's fees in the amount of P2,000.00.
The Philippine Veterans Administration and the Chief of Staff of the Armed Forces filed
separate motions to dismiss the complaint on the grounds that the court has no
jurisdiction over the subject matter of the complaint; that the plaintiff failed to exhaust all
administrative remedies before coming to court; that the complaint states no cause of
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 action; and that the cause of action is barred by the statute of limitations.
Acting on the said motions, the court, on March 2, 1962, rendered an order dismissing the
complaint on the ground that the action has prescribed.
Motion for reconsideration of the said order having been denied, the plaintiff has
interposed this appeal.
Without need of discussing the various questions raised, We have to uphold the order of
dismissal, not necessarily on the same ground as found by the lower court, but for the
simple reason that the Court of First Instance has no jurisdiction over the subject matter, it
being a money claim against the government.
This Court has already held (New Manila Lumber Co. Inc. vs. Republic, 107 Phil., 824 that a
claim for the recovery of money against the government should be filed with the Auditor
General, in line with the principle that the State cannot be sued without its consent.
Commonwealth Act 327 provides:
"SECTION 1. In all cases involving the settlements of accounts of claims,
other than those of accountable officers, the Auditor General shall act and decide
the same within sixty days, exclusive of Sundays and holidays, after their
presentation . . .

"SEC. 2. The party aggrieved by the final decision of the Auditor General in the
settlement of an account or claim may, within thirty days from receipt of the
decision, take an appeal in writing:

xxx xxx xxx

(c) To the Supreme Court of the Philippines, if the appellant is a private

person or entity.

The well established rule that no recourse to court can be had until all administrative
remedies had been exhausted and that actions against administrative officers should not
be entertained if superior administrative officers could grant relief is squarely applicable to
the present case.
In view hereof, the order dismissing the complaint is hereby affirmed, without
pronouncement as to costs.
Bengzon, C.J., Bautista Angelo, Concepcion, Reyes, J.B.L., Barrera, Dizon, Bengzon, J.P. and
Zaldivar, JJ., concur.
Makalintal, J., took no part.

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