FACTS:
The United States of America invited the submission of bids for various repair projects inside its naval base in Subic, Zambales. Eligio de Guzman & Co., Inc. responded to the invitation, submitted its bids and complied with subsequent requests to confirm its price proposal and for the name of its bonding company. The company was later notified of its disqualification because of its previous unsatisfactory performance rating on a previous repair contract with the United States.
ISSUE(S):
Whether or not petitioners performed jure imperei acts and can thus invoke the doctrine of state immunity from suits.
HELD:
YES. The rule of State immunity exempts a State from being sued in the courts of another state without its consent by waiver. This is a necessary consequence of the principles of independence and equality of states. However, state immunity now extends only to governmental acts of the state. In this case, the projects integral part of the naval base which is devoted to the defense of the USA and the Philippines which is a function of government.
