G.R. No. L-25338 March 28, 1969
Union Insurance Society of Canton, Ltd., plaintiff-appellant, vs. Republic of the Philippines, et al., defendants-appellees.

FACTS

The plaintiff-appellant, Union Insurance Society of Canton, Ltd., subrogated to the rights of the consignee Silicons Manufacturing Company, filed a complaint to recover P42,370.30 as the value of 135 coils of copper wire. The goods were unloaded from the vessel “Eastern Star” on September 27, 1964, and were allegedly lost due to the negligence of the Customs Arrastre Service while in its possession. The defendants-appellees, the Republic of the Philippines and the Bureau of Customs Arrastre Service, moved to dismiss the complaint on the grounds of the Republic’s immunity from suit without its consent, arguing that neither the Bureau of Customs nor the Customs Arrastre Service are juridical persons but mere dependencies of the Republic. The Court of First Instance of Manila granted the motion and dismissed the case.

ISSUE

Whether the complaint against the Republic of the Philippines and the Bureau of Customs Arrastre Service should be dismissed on the ground of the Republic’s non-suability for acts of the Customs Arrastre personnel.

RULING

Yes. The Supreme Court affirmed the order of dismissal. The issue of the Republic’s non-suability for acts of the Customs Arrastre Service personnel is not new and was extensively considered in previous cases, notably Mobil Philippines Exploration, Inc. vs. Customs Arrastre Service. The doctrine of the Republic’s immunity from suit without its consent has been uniformly and firmly established. The Bureau of Customs and the Customs Arrastre Service are not juridical persons but mere agencies or dependencies of the Republic. The principles and rulings of the previous cases govern the present case, and there is no justification to deviate from the established doctrine. The order of dismissal is affirmed.