G.R. No. L-23879 - Domestic Insurance Company of the Philippines vs. Barber Line

The arrastre service is operated by the Republic of the Philippines through the Bureau of Customs.
This operation is considered a fundamental governmental function related to the assessment and collection of revenues, tariffs, customs duties, and fees from importations.
As a sovereign entity, the Republic of the Philippines enjoys immunity from being sued without its explicit consent.

The Domestic Insurance Company of the Philippines, acting as the insurer-subrogee of cargo, filed a suit for monetary compensation against Barber Line, Macondray & Co., Inc., and the Republic of the Philippines.
The suit arose from the nondelivery of certain cargo items to the consignee, Centennial Commercial Corporation.
The cargo, which included three cartons of shears, was shipped from New York and arrived in Manila on June 24, 1963.
Upon arrival, the cargo was discharged into the custody of the arrastre operator, and the consignee completed all necessary shipping documentation.
The plaintiff alleged that due to the negligence of the defendants, losses amounting to P8,800.92 were incurred due to undelivered items.

The Republic of the Philippines filed a motion to dismiss the case against it, citing sovereign immunity.
The lower court granted this motion, dismissing the case against the Republic on the grounds that the State cannot be sued without its consent.
The Domestic Insurance Company subsequently appealed the dismissal.