CASE FACTS
China National Machinery(CNMEG) entered into an Whether the No. The contract agreement was not concluded between the Philippines & China, but
Memorandum of Understanding (MOU) with NORTHRAIL
for a feasibility study for the northrail project. EXIM Bank
and the Department of Finance entered in an MOU
wherein China agreed to extend credit to the Philippine
Government to finance the project. NORTHRAIL & CNMEG
executed a contract agreement for the construction of
CHINA NATIONAL Phase 1 of the project. The Philippine government & EXIM
MACHINERY vs STA bank entered into a counterpart financial agreement.
MARIA Respondent filed a complaint for the annulment of
Contract & Injunction against CNMEG alleging that the
Contract &loan agreement were void for being contrary to
law.
CNMEG argues that the trial court has no jurisdiction over
its person as it was an agent of the Chinese Government
making it immune from suits and the Northrail project was
a product of an executive agreement.
Petitioners are board of directors of Red Cross QC chapter
filed a petition to declare Richard Gordon as having
forfeited his senate seat after being elected as Chairman
of the PNRC board of governors during his incumbency as
senator pursuant to Article 6, Section 13. In 2009, the
Supreme Court held that PNRC is not a GOCC but a sui
generis, that Sen Gordon did nto forfeit his senate seat
and lastly, the court held that PNRC charter, RA 95 is void
LIBAN vs GORDON as it directly PNRC as private corporation and it directed
PNRC to incorporate under the Corporation Code.
ISSUE HELD
Contract between NORTHRAIL & CNMEG.
Agreement is The SC reiterated that an executive agreement is similar to a treaty except that an
an executive executive agreement:
agreement a. Does not require legislative concurrence
b. Usually less formal
c. Deals with narrower range of subject matter
Under the Vienna Convention, the requisites of an EXECUTIVE AGREEMENT are:
1. Agreement must be between states
2. In writing
3. Governed by international law
The Contract was between NORTHRAIL ( a GOCC) & CNMEG (a Chinese corporation)
which are entities with distinct and separate personality from the Philippine and
Chinese government, respectively.
Whether
PNRC is a PNRC is sui genereis in nature. It is neither a GOCC nor a private corporation
private
The Court recognize the country's adherence to the Geneva Convention and respect the
corporation
unique status of the PNRC in consonance with its treaty obligations.
By requiring the PNRC to organize under the Corporation Code just like any other
private corporation, the Decision of July 15, 2009 lost sight of the PNRC's special status
under international humanitarian law and as an auxiliary of the State, designated to assist it
in discharging its obligations under the Geneva Conventions. Although the PNRC is called
to be independent under its Fundamental Principles, it interprets such independence as
inclusive of its duty to be the government's humanitarian partner. To be recognized in the
International Committee, the PNRC must have an autonomous status, and carry out its
humanitarian mission in a neutral and impartial manner.
The sections of the PNRC Charter that were declared void must therefore stay. TcSAaH
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PHARMACEUT
ICAL &
HEALTH CARE
ASSOCIATION
vs DUQUE

DBM vs
KOLONWEL

PIMENTEL vs
OFFICE of the
EXECUTIVE
SEC