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 (nonproprietal) 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 complains were dismissed accordingly.