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EN BANC

G.R. No. L-26532 July 10, 1967

INSURANCE COMPANY OF NORTH AMERICA, Plaintiff-Appellant, vs. REPUBLIC OF THE PHILIPPINES and BUREAU OF CUSTOMS, Defendants-Appellees.

Quasha, Aspellera, Blanco, Zafra and Tayag for plaintiff-appellant.
Office of the Solicitor General Antonio Barredo, Solicitor T.M. Dalig and Felipe T. Cuison for defendants-appellees.

R E S O L U T I O N

BENGZON, J.P., J.:chanrobles virtual law library

This case originated in a shipment from Hamburg, Germany of 288 bundles of axle shafts for trucks, consigned to Yu Brothers Trading Company in Quezon City. Subsequently, these were discharged from the vessel MV "Japan" and delivered to the Bureau of Customs as the then arrastre operator. Of these, the Bureau of Customs delivered only 227 bundles of which 6 bundles were empty. For the loss, the consignee claimed a total of P1,543.58 from the Bureau of Customs and the Insurance Company of North America. As the said insurer paid the consignee, it filed suit as subrogee, against the Republic of the Philippines and the Bureau of Customs, and was granted recovery of P1,543.58 by the City Court of Manila. Appeal was made to the Court of First Instance of Manila where the Insurance Company of North America in its amended complaint dated July 3, 1964 sought recovery of P1,543.58 against the Republic of the Philippines and the Bureau of Customs.chanroblesvirtualawlibrarychanrobles virtual law library

After the defendants answered, during the pre-trial conference, the parties, coming to a partial stipulation of facts, limited the issues to defendant's immunity from the suit and the court's jurisdiction over the subject matter of the case.chanroblesvirtualawlibrarychanrobles virtual law library

On June 7, 1966, the Court of First Instance dismissed the case on the ground that the Bureau of Customs being an agency of the national government, the suit against it is a suit against the Republic which is immune from suit without its consent. Hence, this appeal.chanroblesvirtualawlibrarychanrobles virtual law library

The lower court did not err. In Mobil Philippines Exploration v. Government Arrastre Service & Bureau of Customs, L-23139, Dec. 17, 1966, We held that the Bureau of Customs, acting as part of the machinery of the national government in the operation of the arrastre service, as a necessary incident of its prime government function, is immune from suit.chanroblesvirtualawlibrarychanrobles virtual law library

This point renders it necessary to pass upon the remaining issues of the case.chanroblesvirtualawlibrarychanrobles virtual law library

Wherefore, the judgment appealed from is affirmed, without costs. So ordered.

Reyes, J.B.L., Makalintal, Zaldivar, Sanchez, Castro, Angeles and Fernando, JJ., concur.
Concepcion C.J. and Dizon, J., are on leave.