Supreme Court decision · Civil Law

American Insurance Company v. Republic of the Philippines

G.R. No. L-25476 · Promulgated November 15, 1967 · Ponente: Bengzon

In brief

This case is about the ability to sue the Bureau of Customs and the Republic of the Philippines for failure to deliver cargo and whether the government agency has juridical capacity to be sued.

Suing Government, Bureau of Customs, Subrogation, Legal Interest, Juridical Capacity

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G.R. No. L-22731 Galarpe de Melgar v. Pagayon (Next decision in Civil Law)

Full text

Republic of the Philippines
SUPREME COURT
Manila

EN BANC

G.R. No. L-25476 November 15, 1967

AMERICAN INSURANCE COMPANY, plaintiff-appellant,
vs.
REPUBLIC OF THE PHILIPPINES and BUREAU OF CUSTOMS, defendants-appellees.

Quasha, Asperilla and Associates for plaintiff-appellant.
Office of the Solicitor General for defendants-appellees.

BENGZON, J.P., J.:

On September 17, 1964, the City Court of Manila ordered the Republic of the Philippines and the Bureau of Customs to pay the American Insurance Company¹ P3,243.23 with legal interest for the failure of the Bureau of Customs to deliver to consignee San Miguel Brewery, in whose place the insurance company had been subrogated, the cargo of one (1) case of steel transmission chains imported from England and delivered into the custody of the Bureau of Customs by SS "Demodocus". On appeal, the Court of First Instance of Manila, sustaining the defense of the appellants, dismissed the case on the ground that the Bureau of Customs has no juridical capacity to sue or be sued and as regards the Republic of the Philippines, that it may not be sued without its consent. Hence, the American Insurance Company has appealed directly to Us on this point of law.

The Bureau of Customs, in carrying out the arrastre service does so only as an incident to a prime governmental function that of assessing and collecting revenues from imported articles and all other tariff and customs duties, fees, charges, fines and penalties. Such operations, therefore, do not render the Republic or its agencies involved, subject to suit without its consent (Mobil Philippines Exploration v. Customs Arrastre Service, L-23139, December 17, 1966).

WHEREFORE, the judgment appealed from is hereby affirmed without costs. So ordered.

Concepcion, C.J., Reyes, J.B.L., Makalintal, Zaldivar, Sanchez, Castro, Angeles and Fernando, JJ., concur.

Footnotes

¹ A New Jersey Corporation licensed to do business in the Philippines.