PNR v.

IAC
FACTS:
The passenger express train of Philippine National Railways (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 alleges that the collision was due to the
negligence and imprudence of PNR and its engineer Honorio Cirbado in operating in a busy
intersection without any bars, semaphores, signal lights, flagman or switchman.
ISSUE:
Is PNR immune from suit?
HELD:
By the doctrine of implied powers, the power to sue and be sued is implicit from the
faculty to transact private business. PNR is not exercising governmental powers, as such it is not
immune from suit.