Customs seized imported goods intended for Christmas in late 2012 and released them in January 2013. Importers sued Customs for damages. Customs claimed immunity from suit and alternatively blamed delays on a contractor who failed to deliver all contracted cranes on time despite being paid.
Customs seized imported goods intended for Christmas in late 2012 and released them in January 2013. Importers sued Customs for damages. Customs claimed immunity from suit and alternatively blamed delays on a contractor who failed to deliver all contracted cranes on time despite being paid.
Customs seized imported goods intended for Christmas in late 2012 and released them in January 2013. Importers sued Customs for damages. Customs claimed immunity from suit and alternatively blamed delays on a contractor who failed to deliver all contracted cranes on time despite being paid.
Customs seized imported goods intended for Christmas in late 2012 and released them in January 2013. Importers sued Customs for damages. Customs claimed immunity from suit and alternatively blamed delays on a contractor who failed to deliver all contracted cranes on time despite being paid.
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In the last quarter of 2012, about 5,000 container
vans of imported goods intended for the Christmas
Season were seized by agents of the Bureau of Customs. The imported goods were released only on January 10, 2013. A group of importers got together and filed an action for damages before the Regional Trial Court of Manila against the Department of Finance and the Bureau of Customs. The Bureau of Customs raised the defense of immunity from suit and, alternatively, that liability should lie with XYZ Corp. which the Bureau had contracted for the lease of ten (10) high powered van cranes but delivered only five (5) of these cranes, thus causing the delay in its cargo-handling operations. It appears that the Bureau, despite demand, did not pay XYZ Corp. the Php 1.0 Million deposit and advance rental required under their contract.
(A) Will the action by the group of importers prosper? (5%)
(B) Can XYZ Corp. sue the Bureau of Customs to collect rentals for the delivered cranes? (5'%)
A) No. The general rule is the State cannot be sued
without its consent (Sec 3, Art XVI). There can be no legal right as against the authority that makes the laws on which the right depends. [Kawananakoa v. Polyblank 205 US 349] also called the doctrine of Royal Prerogative of Dishonesty
The Bureau of Customs is a government agency
which can invoke immunity from suit.
B) Yes, one of the exceptions to the State's
immunity from suit is when it enters into a business contract or itself commences litigation.