G.R. No. L-27516 October 19, 1967
INSURANCE COMPANY OF NORTH AMERICA, plaintiff-appellant, vs. REPUBLIC OF THE PHILIPPINES and/or LUZON BROKERAGE CORPORATION, defendants-appellees.

FACTS

The plaintiff-appellant, Insurance Company of North America, filed a suit to recover losses and damages amounting to P13,616.06, plus interest, attorneys’ fees, and costs. The defendants were the Republic of the Philippines, in its capacity as an arrastre operator, and/or Luzon Brokerage Corporation, which took custody of the imported cargo from the Republic and delivered it to the consignee. The lower court, through a pre-trial order dated February 13, 1967, sustained the Republic’s plea of non-suability and dismissed the case against it. This dismissal prompted the plaintiff-appellant to elevate the matter on appeal.

ISSUE

Whether the suit against the Republic of the Philippines can proceed without its consent.

RULING

The Supreme Court affirmed the lower court’s order dismissing the case against the Republic of the Philippines. The Court held that the established and unwavering jurisprudential rule is that the State may not be sued without its consent, regardless of whether the claim is liquidated or unliquidated. Citing its recent decisions in Equitable vs. Smith Bell (L-24383, August 26, 1967) and Insurance Co. vs. Republic (L-26532, August 30, 1967), the Court ruled that the plea of non-suability was correctly sustained. Costs were imposed against the plaintiff-appellant.