G.R. No. L-26994 - Caltex , Inc. vs. Customs Arrastre Service

Plaintiff-Appellee: Caltex (Philippines), Inc., consignee of goods.
Defendants-Appellants: Customs Arrastre Service and/or Bureau of Customs and/or Republic of the Philippines.
The case arises from the operation of the customs arrastre service at the Port of Manila, which was then operated by the Bureau of Customs.

On March 31, 1965, plaintiff filed an action in the Court of First Instance of Manila for recovery of the value of eleven packages of assorted goods said to be missing.
The total claimed value was P10,682.66.
Subsequent to filing, some packages were delivered, leaving only three packages undelivered, valued at P795.67.

The trial court rendered judgment in favor of the plaintiff for the amount of P795.67 plus legal interest.
This decision was made notwithstanding the defendants’ plea of the State’s immunity from suit.

Defendants appealed the decision to the Supreme Court.
The sole issue raised was the non-suability of the Republic with respect to its operation of the arrastre service through the Bureau of Customs.

Whether or not the Republic of the Philippines can be sued in relation to the operation of the customs arrastre service through the Bureau of Customs.
Whether the operation of the arrastre service by the Bureau of Customs, albeit proprietary in nature, subjects the State to suit and liability.
What remedy is available to the plaintiff and similarly situated parties for claims arising from transactions involving the Bureau of Customs and arrastre services.