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Na't Airport Corporation
Na't Airport Corporation
Title:
NATIONAL AIRPORTS CORPORATIONvs.
JOSE TEODORO, SR
Citation: 91 Phil 203
Facts:
The National Airports Corporation was organized under Republic
Act No. 224, which expressly made the provisions of the
Corporation Law applicable to the said corporation. On November
10, 1950, the National Airports Corporation was abolished by
Executive Order No. 365 and to take its place the Civil
Aeronautics Administration was created. Before the abolition, the
Philippine Airlines, Inc. paid to the National Airports Corporation
P65,245 as fees for landing and parking on Bacolod Airport No. 2
for the period up to and including July 31, 1948. These fees are
said to have been due and payable to the Capitol Subdivision,
Inc. which owned the land used by the National Airports
Corporation as airport, and the owner commenced an action in
the Court of First Instance of Negros Occidental against the
Philippine Airlines, Inc., in 1951 to recover the above amount. The
Philippine Airlines, Inc. countered with a thirdparty complaint
against the National Airports Corporation, which by that time had
been dissolved, and served summons on the Civil Aeronautics
Administration. The third party plaintiff alleged that it had paid to
the National Airports Corporation the fees claimed by the Capitol
Subdivision, Inc. "on the belief and assumption that the third
party defendant was the lessee of the lands subject of the
complaint and that the third party defendant and its predecessors
in interest were the operators and maintainers of said Bacolod
Airport No. 2 and, further, that the third party defendant would
pay to the landowners, particularly the Capitol Subdivision, Inc.,
the reasonable rentals for the use of their lands."
The Solicitor General, after answering the third party complaint,
filed a motion to dismiss on the ground that the court lacks
jurisdiction to entertain the third party complaint, first, because
the National Airports Corporation "has lost its juridical
personality," and, second, because agency of the Republic of the
Philippines, unincorporated and not possessing juridical
personality under the law, is incapable of suing and being sued."
Issue:
1. Whether or not the plaintiff can sue National Airport
Corporation?
2. Whether or not it can run after the Civil Aeronautics
Administration?
Ruling:
1. Yes. Not all government entities, whether corporate or non