USA v Guinto

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Facts: The private respondents are suing several officers of the U.S. Air Force station in Clark Air Base in connection with the bidding conducted by them for contracts for barbering services in the said base. On February 24, 1986, The U.S. Air Force through its Western Pacific Contracting Office in Okinawa Area Exchange solicited bids through the contracting officer, James F. Shaw. The Private respondents submitted their bids because they are concessionaire inside the Clark air base for several years, but the bidding was won by the defendant Ramon Dizon with objection of the private respondents because the defendant submitted bidding not mention in the solicitation. Petitioners Yvonne Reeves and Frederic M. Smouse explained that bidding is not awarded to Dizon but an extension of his present contract until August 31, 1986. June 30, 1986 the private respondents file a complaint to RTC to compel PHAX and the petitioners to cancel the award to defendant Dizon and to conduct re-bidding of the barbershop concession and to allow respondent to continue operating pending on ligation by writ of preliminary injunction. The respondent court issued an ex parte order directing individual petitioner to maintain status quo. July 22, 1986 petitioner file motion to dismiss and opposition to the preliminary injunction, on the ground that the action was in effect a suit against the United States of America, which had not waived its non-suability. The individual defendants, as officials/employees of the U.S. Air Force, were also immune from suit. October 10, 1988 RTC denied the petitioners motion to dismiss on the ground that the contract is commercial in nature between the plaintiffs as well as the defendants.December 11, 1986, the defendants file a petition for certiorari and prohibition and preliminary injunction to the Supreme Court on the decision of the RTC denying the motion to dismiss the case.

Issue: Whether or not the officials/employees of the U.S. Air Force were immune from suit?


Held: The court ruled that that the petitioner cannot plead any immunity from the complaint filed by the private respondents. The contracts in question being decidedly Commercial, and the conclusion reached in United Sates of America v Ruiz case cannot be applied. The petition is dismissed and the respondent judge is directed to proceed with the hearing and decision of Civil Case No. 4772. The temporary restraining order dated December 11, 1986 is lifted.

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