PNR vs IAC Case Digest
Facts
The passenger express train if Philippines National Railway (PNR) and a passenger bus of Baliwag Transit Inc. collided at the railroad crossing at Barrio Balungao, Calumpit, Bulacan at 1:30 in the afternoon of August 10, 1947, causing damage to the bus and its passengers, 18 of whom died and 53 suffered physical injuries. Plaintiff alleged that the collision was due to the negligence and imprudence of PNR and its engineer Honorio Arbbado in operating in a busy intersection without any bars, semaphores, signal lights, flagman, or switchman.
Issue
Whether or not PNR is immune from suit
Ruling
The correct rule is that “not all government entities, whether corporate or incorporated are immune from suit. The immunity of suit is determined by the character of the objects for which the entity was organized. The paint is that when government enters into a commercial business it abandons its sovereign capacity and is to be treated like any other private corporation.
PNR is not exercising governmental powers, as such, it is not immune from suit.
PNR vs IAC Case Digest
