Holy See vs Rosario

G.R. No. 101949

238 SCRA 524

December 1, 1994

Petitioner: The Holy See

Respondent: Hon. Elidberto Rosario, Jr., in his capacity as Presiding Judge of

RTC Makati, Branch 61 and Starbright Sales Enterprises, Inc.

FACTS: Petition arose from a controversy over a parcel of land. Lot 5-A, registered under the name Holy See, was contiguous to Lot 5-B and 5-D under the name of Philippine Realty Corporation (PRC).  The land was donated by the Archdiocese of Manila to the Papal Nuncio, which represents the Holy See, who exercises sovereignty over the Vatican City, Rome, Italy, for his residence.

Said lots were sold through an agent to Ramon Licup who assigned his rights to respondents Starbright Sales Enterprises, Inc.

When the squatters refuse to vacate the lots, a dispute arose between the two parties because both were unsure whose responsibility was it to evict the squatters from said lots. Respondent Starbright Sales Enterprises Inc. insists that Holy See should clear the property while Holy See says that respondent corporation should do it or the earnest money will be returned. With this, Msgr. Cirilios, the agent, subsequently returned the P100,000 earnest money. 

The same lots were then sold to Tropicana Properties and Development Corporation.

Starbright Sales Enterprises, Inc. filed a suit for annulment of the sale, specific performance and damages against Msgr. Cirilios, PRC as well as Tropicana Properties and Development Corporation. The Holy See and Msgr. Cirilos moved to dismiss the petition for lack of jurisdiction based on sovereign immunity from suit. RTC denied the motion on ground that petitioner already "shed off" its sovereign immunity by entering into a business contract. The subsequent Motion for Reconsideration was also denied hence this special civil action for certiorari was forwarded to the Supreme Court. 

ISSUE: Whether or not Holy See can invoke sovereign immunity.

HELD: The Court held that Holy See may properly invoke sovereign immunity for its non-suability. As expressed in Sec. 2 Art II of the 1987 Constitution, generally accepted principles of International Law are adopted by our Courts and thus shall form part of the laws of the land as a condition and consequence of our admission in the society of nations.

It was noted in Article 31(A) of the 1961 Vienna Convention on Diplomatic Relations that diplomatic envoy shall be granted immunity from civil and administrative jurisdiction of the receiving state over any real action relating to private immovable property. The Department of Foreign Affairs (DFA) certified that the Embassy of the Holy See is a duly accredited diplomatic missionary to the Republic of the Philippines and is thus exempted from local jurisdiction and is entitled to the immunity rights of a diplomatic mission or embassy in this Court. 

Furthermore, it shall be understood that in the case at bar, the petitioner has bought and sold lands in the ordinary course of real estate business, surely, the said transaction can be categorized as an act jure gestionis. However, petitioner has denied that the acquisition and subsequent disposal of the lot were made for profit but claimed that it acquired said property for the site of its mission or the Apostolic Nunciature in the Philippines. 

The Holy See is immune from suit because the act of selling the lot of concern is non-propriety in nature. The lot was acquired through a donation from the Archdiocese of Manila, not for a commercial purpose, but for the use of petitioner to construct the official place of residence of the Papal Nuncio thereof. The transfer of the property and its subsequent disposal are likewise clothed with a governmental (non-proprietal) character as petitioner sold the lot not for profit or gain rather because it merely cannot evict the squatters living in said property. 

In view of the foregoing, the petition is hereby GRANTED and the complaints were dismissed accordingly. 

• Constitutional Law 1: Immunity from suit (Textbook: Cruz, Professor: Atty. Usita)

♥ Reese Corpuz