Harrison Motors Corporation v. Rachel A. Navarro

Summary

Harrison Motors Corporation sold two assembled trucks to Rachel Navarro in 1987, representing that all taxes on imported parts were paid. When government agents later seized the trucks for unpaid taxes, Navarro paid P32,943.00 for their release after Harrison Motors refused to provide payment receipts or reimbursement. The Supreme Court affirmed lower courts' orders for reimbursement, ruling that Harrison Motors breached an express warranty under Civil Code provisions. The Court rejected arguments that administrative regulations imposing certificate requirements violated constitutional non-impairment principles, finding they merely enforced existing tax obligations. The decision established that sellers who make express warranties about tax payments remain liable even after ownership transfers, and buyers may seek damages for warranty breaches while retaining the goods.