Title
Champion Auto Supply Co., Inc. vs. Bureau of Customs
Case
G.R. No. L-26287
Decision Date
Apr 27, 1972
A company's request for a loan is denied due to failure to meet conditions, leading to the cancellation of the mortgage and a subsequent lawsuit for damages, which is dismissed by the court based on mutual desistance and lack of protest against the alleged breach of contract.
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Case Digest (G.R. No. L-26287)

Facts:

  • Champion Auto Supply Co., Inc. (plaintiff-appellant) initiated a case against the Bureau of Customs (defendant-appellee).
  • The conflict originated from a shipment of eight bundles of cone and oil pump assembly aboard the SS "Yakal" in Yokohama, Japan.
  • The vessel docked at the Port of Manila on September 27, 1963, with the shipment under the Bureau of Customs' custody.
  • Allegations surfaced regarding negligence by the Customs Arrastre Service, resulting in the loss of three packages and short delivery of two bundles.
  • Champion Auto Supply sought damages of PHP 10,094.25 and made multiple demands for compensation, which were ignored.
  • A complaint was filed in the Court of First Instance of Manila (Civil Case No. 60371) on March 25, 1965.
  • The Bureau of Customs refuted the allegations, asserting immunity from suit and questioning the court's jurisdiction.
  • The trial court dismissed the case, citing a lack of sufficient evidence from the plaintiff.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court affirmed the trial court's decision, dismissing the complaint by Champion Auto Supply Co., Inc.
  • The court established that the Bureau of Customs is immune from suit without its consent, which hindered the complaint's success.
  • The ruling also validated the ...(Unlock)

Ratio:

  • The Supreme Court's decision is grounded in the doctrine of governmental immunity from suit, which asserts that the government cannot be sued without its consent.
  • This principle was reinforced in the case of Mobil Philippines Exploration, Inc. vs. Customs Arrastre Service, confirming the Bureau of Customs' protection from lawsuits rela...continue reading

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