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.

FACTS

On December 1, 1961, plaintiff-appellant Mariano E. Garcia filed a complaint in the Court of First Instance of Pangasinan to collect a sum of money. He alleged that in July 1948, he suffered injuries during military training at Camp Floridablanca, Pampanga, which permanently deprived him of his sight. He filed a claim for disability benefits under Commonwealth Act 400. In April 1957, he submitted supporting papers to the Adjutant General’s Office. On May 2, 1957, he received a letter from that office disallowing his claim. After further demands, the Adjutant General’s Office denied the claim again on November 24, 1958, stating that Commonwealth Act 400 had been repealed by Republic Act 610. Garcia claimed he was deprived of a disability pension from July 1948 totaling at least P4,000 at P20 per month, and sought moral damages and attorney’s fees of P2,000. The defendants filed motions to dismiss on grounds including lack of jurisdiction, failure to exhaust administrative remedies, no cause of action, and prescription. The lower court dismissed the complaint on March 2, 1962, on the ground that the action had prescribed.

ISSUE

Whether the Court of First Instance had jurisdiction over the subject matter of the complaint, which is a money claim against the government.

RULING

No. The Supreme Court upheld the order of dismissal, but on a different ground from the lower court. The Court of First Instance had no jurisdiction over the subject matter because it is a money claim against the government. Citing Commonwealth Act 327, the Supreme Court held that a claim for the recovery of money against the government must first be filed with the Auditor General, in line with the principle that the State cannot be sued without its consent. The party aggrieved by the Auditor General’s final decision may then appeal to the Supreme Court within thirty days. The well-established rule requiring exhaustion of administrative remedies before recourse to court is squarely applicable. The order dismissing the complaint was affirmed.