G.R. No. L-1120; August 31, 1948
INOCENCIO ROSETE, petitioner, vs. THE AUDITOR GENERAL, respondent.

FACTS

Petitioner Inocencio Rosete filed a claim for damages against the Government, alleging that his properties were destroyed by a fire that originated from a warehouse of the Emergency Control Administration (ECA), a government agency. The fire was allegedly caused by the negligence of an ECA employee, Jose Frayno y Panlilio, who ignited his cigarette-lighter near a drum of gasoline, and by the ECA’s violation of Manila city ordinances in storing gasoline. The Insular Auditor denied the claim, prompting this appeal.

ISSUE

Whether the Government is liable for the damages caused by the negligence of the ECA and its employees under Article 1903 of the Civil Code.

RULING

No. The Supreme Court affirmed the decision of the Insular Auditor, denying the claim. Under Article 1903 of the Civil Code, the State is only liable for damages caused by its special agents—those acting under a definite and specific order or commission outside the regular functions of their office. The ECA and its officers were not acting as special agents; they were performing their regular administrative functions. Therefore, the Government is not vicariously liable for their alleged negligence. The dissenting opinion argued that the ECA was a special agent, but the majority held otherwise, emphasizing the State’s immunity from suit for acts done in the exercise of governmental functions through its regular officials.

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