CA
(120 SCRA 707)
FACTS:
Spouses David and Socorro Cruz, applied and granted a real estate loan by the SSS
with residential lot located at Pateros, Rizal as collateral. The spouses Cruz complied
with their monthly payments. When delayed were incurred in their monthly payments
SSS filed a petition for foreclosure of their real estate mortgage executed by the spouses
Cruz on the ground that the spouses Cruz defaulted in payment, Pursuant for these
application for foreclosure notices were published on the second notice the counsel for
spouses Cruz sent a letter to SSS informing the latter that his clients are up to date in their
payment of the monthly amortization and the SSS should discontinued the publication of
the notices of foreclosure. This request remain unheaded, this spouses Cruz filed an
action for damages against SSS before RTC in Rizal. SSS invoking its immunity from
suit being an agency of the government performing government function. The trial court
and court of appeal nevertheless awarded damages in favor of spouses Cruz which was
affirmed by court of appeal, Hence this petition.
ISSUE: Whether or not SSS is immune from suit.
HELD:
Negative.. The SSS has a distinct legal personality and it can be sued for damages. The
SSS does not enjoy immunity from suit by express statutory consent.
It has corporated power separate and distinct from the government. SSS own organic
act specifically provides that it can sue and be sued in court. These words sue and be
sued embrace all civil process incident to a legal action. So that even assuming that the
SSS, as it claims, enjoys immunity from suit as an entity performing governmental
function, by virtue of the explicit provision of the aforecited enabling law, the
government must be deemed to have waived immunity in respect of the SSS, although it
does not thereby concede its liability that statutory law has given to the private citizen a
remedy for the enforcement and protection of his rights. The SSS thereby has been
required to submit to the jurisdiction of the court; subject to its right to interpose any
lawful defense.