G.R. No. 146710-15 - Estrada vs. Desierto

Cargo discharge and loss during arrastre service
On May 10, 1963, two (2) boxes of truck spare parts were discharged in good order condition by the SS Granville into the custody of the Bureau of Customs, then operator of the arrastre service.
Of the two boxes, only one was delivered by the Bureau of Customs to the consignee.

Insurance payment and subrogation
The Insurance Company of North America acted as insurer of the cargo.
The Insurance Company of North America paid the consignee P3, 634.16 for the loss of one box.
As subrogee of the consignee, the Insurance Company of North America filed, before the City Court of Manila, a complaint for recovery of the amount it paid.

Parties, claims, and lower court outcomes
The complaint named the Republic of the Philippines and the Bureau of Customs as defendants.
The City Court of Manila granted recovery to the Insurance Company of North America.
On appeal, the Court of First Instance of Manila reversed the City Court and dismissed the complaint.
The Court of First Instance of Manila held that the suit was effectively one against the Republic of the Philippines.
The Court of First Instance of Manila reasoned that the Republic may not be sued without its consent.
The Court of First Instance of Manila further held that the Bureau of Customs was a mere agency of the Republic.
The Court of First Instance of Manila concluded that the Bureau of Customs lacked...(Subscriber-Only)

Whether the Bureau of Customs, as arrastre operator, could be sued in connection with the alleged loss of cargo
Whether the Bureau of Customs, operating the arrastre service as part of governmental machinery, was immune from suit.
Whether the complaint, though directed against the Bureau of Customs and the Republic of the Philippines, was effectively a suit against the Republic requiring ...(Subscriber-Only)