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:
1) Who between the petitioner and respondent was negligent?
2) Is PNR immune from suit?

HELD: There is no admissible evidence to show that the bus driver did not take necessary precaution in
traversing the track. Contributory negligence may not be ascribed to the bus driver for he had taken
necessary precautions before passing over the railway track. The failure of PNR, on the other hand, to
put a cross bar, or signal light, flagman, or switchman or semaphores is evidence of negligence on their
part.
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.