Veterans Manpower and Protective Services Inc. V. CA GR NO. 91359, September 25, 1992 Facts
Veterans Manpower and Protective Services Inc. V. CA GR NO. 91359, September 25, 1992 Facts
Veterans Manpower and Protective Services Inc. V. CA GR NO. 91359, September 25, 1992 Facts
CA
GR NO. 91359, September 25, 1992
Facts:
Veterans Manpower and Protective Services, Inc. (VMPSI) alleges that the provisions under
Section 4 and 17 of Republic Act No. 5487 or the Private Security Agency Law violate the 1987
Constitution against monopolies, unfair competition and combinations in restraint of trade, and
tend to favor and institutionalize the Philippine Association of Detective and Protective Agency
Operators, Inc. (PADPAO) which is monopolistic because it has an interest in more than one
security agency.
Respondent VMPSI likewise questions the validity of paragraph 3, subparagraph (g) of the
Modifying Regulations on the Issuance of License to Operate and Private Security Licenses and
Specifying Regulations for the Operation of PADPAO issued by then PC Chief Lt. Gen. Fidel V.
Ramos, through Col. Sabas V. Edades, requiring that “all private security agencies/company
security forces must register as members of any PADPAO Chapter organized within the Region
where their main offices are located...”. As such membership requirement in PADPAO is
compulsory in nature, it allegedly violates legal and constitutional provisions against
monopolies, unfair competition and combinations in restraint of trade.
May 12, 1986: A Memorandum of Agreement was executed by PADPAO and the PC Chief,
which fixed the minimum monthly contract rate per guard for eight (8) hours of security service
per day at P2,255.00 within Metro Manila and P2,215.00 outside of Metro Manila
June 29, 1987: Odin Security Agency (Odin) filed a complaint with PADPAO accusing VMPSI
of cut-throat competition by undercutting its contract rate for security services rendered to the
Metropolitan Waterworks and Sewerage System (MWSS), charging said customer lower than
the standard minimum rates provided in the Memorandum of Agreement dated May 12, 1986.
PADPAO found VMPSI guilty of cut-throat competition, hence, the PADPAO Committee on
Discipline recommended the expulsion of VMPSI from PADPAO and the cancellation of its
license to operate a security agency. The PC-SUSIA affirmed the findings and likewise
recommended the cancellation of VMPSI’s license. As a result, PADPAO refused to issue a
clearance/certificate of membership to VMPSI.
VMPSI made a request letter to the PC Chief to set aside or disregard the findings of PADPAO
and consider VMPSI’s application for renewal of its license, even without a certificate of
membership from PADPAO.
ISSUE:
Whether or not VMPSI’s complaint against the PC Chief and PC-SUSIA is a suit against the
State without its consent.
HELD:
Yes. A public official may sometimes be held liable in his personal or private capacity if he acts
in bad faith, or beyond the scope of his authority or jurisdiction, however, since the acts for
which the PC Chief and PC-SUSIA are being called to account in this case, were performed as
part of their official duties, without malice, gross negligence, or bad faith, no recovery may be
had against them in their private capacities. Furthermore, the Supreme Court agrees with the
Court of Appeals that the Memorandum of Agreement dated May 12, 1986 does not constitute
an implied consent by the State to be sued. The consent of the State to be sued must emanate
from statutory authority, hence, a legislative act, not from a mere memorandum. Without such
consent, the trial court did not acquired jurisdiction over the public respondents. Petition for
review is denied and the judgment appealed from is affirmed in toto.