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Bacani v. NACOCOG.R. No. L-9657 Nov. 29, 1956

Two-fold Function of the Government 

FACTS:

1. Bacani and Matoto are court stenographersoth assigned in the !"# o$ Mani%a. &uringthe pendenc' o$ another civi% case (!ivi% !aseNo. 229) entit%ed *"rancisco +'cip vs.N!!*, %i/pa%a, counse% $orN!!(Nat0% !oconut !orporation ,

reuested the said stenographers $or copieso$ the transcript o$ the stenographic notesta/en ' the during the hearing. 3%ainti$$scop%ied 4ith the reuest ' de%ivering to!ounse% %i/pa%a the needed transcriptcontaining 71 pages and therea$tersuitted to hi their i%%s $or the pa'ento$ their $ees. he N!! paid the aounto$ 356 to Bacani and 315 to Matoto $or said

transcript at the rate o$ 31 per page.

). +useuent%', the uditor Genera%reuired the p%ainti$$s to reiurse saidaounts ' virtue o$ a &8 circu%ar 4hich

stated that N!!, eing a governententit', 4as eept $ro the pa'ent o$ the$ees in uestion.

. 3etitioners countered that N!! is nota governent entit' 4ithin the purvie4 o$ section 16, Ru%e 1) o$ the Ru%es o$ !ourt

4hi%e the de$endants set up as a de$ense thatthe N!! is a governent entit' 4ithinthe purvie4 o$ section 2 o$ the Reviseddinistrative !ode o$ 1917 hence, eept$ro pa'ing the stenographers0 $ees underRu%e 1) o$ the Ru%es o$ !ourt.

ISSUE: Whether or not NACOCO is agovernment entity. No, it is not.

1. G!!s do not acuire that status $or thesip%e reason that the' do not coe underthe c%assi$ication o$ unicipa% or pu%iccorporation. :hi%e N!! 4as organi;ed$or the purpose o$ <ad=usting the coconutindustr' to a position independent o$ tradepre$erences in the >nited +tates? and o$ providing <"aci%ities $or the etter curing o$ copra products and the proper uti%i;ation o$ coconut '-products?, a $unction 4hich ourgovernent has chosen to eercise to

proote the coconut industr'. #t 4as given acorporate po4er separate and distinct $ro

the governent, as it 4as ade su=ect to

the provisions o$ the !orporation La4 in so$ar as its corporate eistence and the po4ersthat it a' eercise are concerned (sections2 and , !oon4ea%th ct No. 51@. #t a'sue and e sued in the sae anner as an'other private corporations, and in this senseit is an entit' di$$erent $ro our governent.

2. here are $unctions 4hich our governentis reuired to eercise to proote its

o=ectives as epressed in our !onstitutionand 4hich are eercised ' it as an attriuteo$ sovereignt', and those 4hich it a'eercise to proote ere%' the 4e%$are,progress and prosperit' o$ the peop%e.

). 3resident :i%son enuerates theconstituent $unctions as $o%%o4sA

(1 he /eeping o$ order and providing $or

the protection o$ persons and propert' $rovio%ence and roer'.(2 he $iing o$ the %ega% re%ations et4eenan and 4i$e and et4een parents andchi%dren.

() he regu%ation o$ the ho%ding,transission, and interchange o$ propert',and the deterination o$ its %iai%ities $or detor $or crie.( he deterination o$ contract rightset4een individua%s.(5 he de$inition and punishent o$ crie.

(6 he adinistration o$ =ustice in civi%cases.(7 he deterination o$ the po%itica% duties,privi%eges, and re%ations o$ citi;ens.(@ &ea%ings o$ the state 4ith $oreign po4ersAthe preservation o$ the state $ro eterna%danger or encroachent and the

advanceent o$ its internationa% interests.0 . he ost iportant o$ the inistrant

$unctions areA pu%ic 4or/s, pu%ic education,pu%ic charit', hea%th and sa$et' regu%ations,and regu%ations o$ trade and industr'. heprincip%es deter ining 4hether or not agovernent sha%% eercise certain o$ theseoptiona% $unctions areA (1 that a governentshou%d do $or the pu%ic 4e%$are those things4hich private capita% 4ou%d not natura%%'underta/e and (2 that a governent shou%ddo these things 4hich ' its ver' nature it isetter euipped to adinister $or the pu%ic4e%$are than is an' private individua% or

group o$ individua%s.