GR L 45322; (May, 1939) (Digest)
G.R. No. L-45322; May 4, 1939
Walter Bull, plaintiff-appellant, vs. Alfredo L. Yatco, Collector of Internal Revenue, defendant-appellee.
FACTS
Walter Bull filed a complaint in the Court of First Instance of Manila against the Collector of Internal Revenue, Alfredo L. Yatco. Bull sought to compel Yatco to disclose the names of merchants and firms that had made sales under false invoices to the Simplex Trading Co., Inc., and had paid surcharges and compromises to the Bureau of Internal Revenue. Bull claimed he was entitled to a reward as an informer under Section 2735 of the Revised Administrative Code, as amended, and demanded payment. The defendant demurred, arguing the court lacked jurisdiction because the suit was effectively against the Commonwealth of the Philippines, which had not consented to be sued. The trial court sustained the demurrer and dismissed the case.
ISSUE
Whether the Court of First Instance of Manila acquired jurisdiction over the moneyed claim against the Collector of Internal Revenue for an informer’s reward, without the claimant first exhausting the required administrative remedies.
RULING
No. The Supreme Court affirmed the trial court’s order sustaining the demurrer. The Collector of Internal Revenue is an agent of the Government, and a moneyed claim against him arising from his official acts is a claim against the Government itself. Before such a claim can be brought to court, the claimant must first present the claim to the Auditor General (now Commission on Audit) and obtain an adverse decision from that official, as required by Act No. 3083 and Section 3, Article X of the 1935 Constitution. The complaint did not allege that Bull had presented his claim to the Auditor General or that the Auditor General had decided it adversely. Therefore, the trial court correctly ruled it lacked jurisdiction. The proper procedure is for the informer to appeal the Collector’s denial to the Auditor General, and only after an adverse decision may the claimant resort to the courts.
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