LSaF

Question

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 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 10 high powered van cranes but delivered only 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 P1 Million deposit and advance rental required under their contract.

(a) Will the action by the group of importers prosper?
(b) Can XYZ Corp. sue the Bureau of Customs to collect rentals for the delivered cranes? (2013 Bar)

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