GR L 24930; (July, 1967) (Digest)
G.R. No. L-24930 July 31, 1967
THE SHELL REFINING COMPANY (PHILIPPINES) INC., plaintiff-appellant, vs. MANILA PORT SERVICE, NATIONAL RAILWAYS COMPANY and/or BUREAU OF CUSTOMS, thru its CUSTOMS ARRASTRE SERVICE, defendants-appellants.
FACTS
The Shell Refining Company (Philippines) Inc. filed a complaint to recover the value of merchandise lost or damaged while in the custody of the arrastre service. The complaint originally contained thirteen causes of action, but the plaintiff withdrew its claims under the 3rd, 5th, 7th, 8th, 9th, and 10th causes of action. The stipulated facts for the remaining seven causes of action (1st, 2nd, 4th, 6th, 11th, 12th, and 13th) detailed specific shipments that arrived at the Port of Manila between November 1962 and May 1963. The cargoes were unloaded into the custody of either the Manila Port Service (a subsidiary of Manila Railroad Company/National Railways Company) or, after November 21, 1962, the Bureau of Customs through its Customs Arrastre Service, which had assumed operation of the arrastre service. For these shipments, the plaintiff presented the necessary documents but either failed to receive certain items (causes 1, 2, 4, 6) or received them in damaged or leaking condition (causes 11, 12, 13). Provisional claims were filed for most, but not for the 11th cause of action. The trial court dismissed the claims against the Bureau of Customs for the 1st, 2nd, 4th, 6th, 7th, 11th, and 12th causes of action and ordered Manila Port Service to pay only for the 13th cause of action. Plaintiff appealed the dismissal of its claims against the Bureau of Customs.
ISSUE
Whether or not the Bureau of Customs, in connection with its arrastre service, can be sued.
RULING
No. The Supreme Court affirmed the trial court’s decision dismissing the complaint against the Bureau of Customs. Citing its prior ruling in Mobile Philippines Exploration, Inc. vs. Customs Arrastre Service and Bureau of Customs (L-23139, December 17, 1966), the Court held that the Bureau of Customs, being an agency of the government performing governmental functions, is immune from suit. The Court found no special reason to depart from this established ruling.