US vs Ruiz (136 SCRA 487)

FACTS:
The USA had a naval base in Subic, Zambales. The base was one of those provided
in the military bases agreement between the Philippines and the US. Respondent
alleges that it won in the bidding conducted by the US for the construction of
wharves in said base that was merely awarded to another group. For this reason, a
suit for specific performance was filed by him against the US.

ISSUE:
Whether the US naval base in bidding for said contracts exercise governmental
functions to be able to invoke state immunity.
HELD:
The traditional role of the state immunity exempts a state from being sued in the
courts of another state without its consent or waiver. This rule is necessary
consequence of the principle of independence and equality of states. However, the
rules of international law are not petrified; they are continually and evolving and
because the activities of states have multiplied. It has been necessary to distinguish
them between sovereign and governmental acts and private, commercial and
proprietory acts. The result is that state immunity now extends only to sovereign
and governmental acts.