Title
Champion Auto Supply Co., Inc. vs. Bureau of Customs
Case
G.R. No. L-26287
Decision Date
Apr 27, 1972
A shipment of auto parts was lost/damaged under Customs Arrastre Service custody. Plaintiff sued for damages, but the case was dismissed due to governmental immunity and insufficient evidence proving delivery in good condition.
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Case Digest (G.R. No. L-26287)

Facts:

  1. Shipment Details:

    • On September 14, 1963, the SS "Yakal" of the Philippine Ace Line took on board at Yokohama, Japan, a shipment of eight (8) bundles of cone and oil pump assembly consigned to Champion Auto Supply Co., Inc. (plaintiff).
    • The vessel arrived at the Port of Manila on September 27, 1963, and discharged the shipment into the custody of the Bureau of Customs, acting as the operator of the Customs Arrastre Service.
  2. Alleged Loss and Damage:

    • The plaintiff alleged that due to the negligence of the Customs Arrastre Service, three (3) packages were lost, and two (2) bundles were short-delivered, pilfered, or lost.
    • The plaintiff claimed damages amounting to P10,094.25.
  3. Legal Action:

    • On March 25, 1965, the plaintiff filed a complaint against the Bureau of Customs, seeking payment for the lost and damaged goods, legal interest, and attorney's fees of P2,500.00.
  4. Defendant's Defense:

    • The Bureau of Customs denied the allegations and raised special defenses, including governmental immunity from suit and lack of jurisdiction due to non-compliance with Act No. 3083, as amended.
  5. Trial Court Decision:

    • The trial court dismissed the complaint for insufficiency of evidence, as the plaintiff failed to prove that the shipment was delivered complete and in good order to the Customs Arrastre Service.
  6. Appeal:

    • The plaintiff appealed the decision, but the Supreme Court affirmed the dismissal based on the doctrine of governmental immunity from suit.

Issue:

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Ruling:

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Ratio:

  1. Governmental Immunity from Suit:

    • The Bureau of Customs, acting as part of the national government in operating the arrastre service, is immune from suit unless there is an express statutory waiver of such immunity.
    • This principle was established in Mobil Philippines Exploration, Inc. vs. Customs Arrastre Service (18 SCRA 1120) and has been reiterated in numerous cases.
  2. Burden of Proof:

    • The plaintiff failed to discharge its burden of proving that the shipment was delivered complete and in good order to the Customs Arrastre Service. The absence of cargo or tally sheets as evidence was fatal to the plaintiff's claim.
  3. Jurisdictional Requirement:

    • The plaintiff did not comply with the requirements under Act No. 3083, as amended, which governs money claims against the government. This further justified the dismissal of the case.


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