The Holy See vs. Eriberto u. Rosario, jr.GRN 101949, December 1, 1994. !

" S#R$ % 4 Nature o& the #ase' This is a (etitio) &or certiorari to reverse a)* set asi*e the +r*ers *ate* ,u)e 0, 1991 a)* Se(tember 19, 1991 o& the Re-io)al Trial #ourt, .ra)ch /1, 0a1ati, 0etro 0a)ila i) #ivil #ase No. 9021"!. 3acts +) $(ril 14, 19"", 0s-r. Domi)-o $. #irilos, ,r., o) behal& the (etitio)er, the Holy See, a)* 5hili((i)e Realty #or(oratio) 65R#7, a-ree* to sell to Ramo) 8icu(a (arcel o& la)* 68ot %2$ locate* i) the 0u)ici(ality o& 5ara9a:ue, 0etro 0a)ila a)* re-istere* i) the )ame o& (etitio)er7 a)* lots %2. a)* %2D re-istere* u)*er 5R# ;ith the &ollo;i)- co)*itio)s' ear)est mo)ey o& 5100,000.00 be (ai* by 8icu( to the sellers a)* that the sellers clear the sai* lots o& s:uatters. <) the same mo)th, 8icu( assi-)e* his ri-hts over the (ro(erty to (rivate res(o)*e)t, Starbri-ht Sales E)ter(rises, <)c. a)* i)&orme* them o& the assi-)me)t. Therea&ter, (rivate res(o)*e)t *ema)*e* &rom 0s-r. #irilos the &ul&ilme)t o& the assi-)me)t= ho;ever, 0s-r. #irilos i)&orme* (rivate res(o)*e)t o& the s:uatters> re&usal to vacate the lots, (ro(osi)- i)stea* either that (rivate res(o)*e)t u)*erta1e the evictio) or that the ear)est mo)ey be retur)e* to the latter. 5rivate res(o)*e)t cou)ter2(ro(ose* that i& it ;oul* u)*erta1e the evictio) o& the s:uatters, the (urchase (rice o& the lots shoul* be re*uce* &rom 51, 40.00 to 51,1%0.00 (er s:uare meter. 0s-r. #irilos retur)e* the ear)est mo)ey o& 5100,000.00 a)* ;rote (rivate res(o)*e)t -ivi)- it seve) *ays &rom recei(t o& the letter to (ay the ori-i)al (urchase (rice i) cash. 5rivate res(o)*e)t se)t the ear)est mo)ey bac1 to the sellers, but later *iscovere* that o) 0arch !0, 19"9, (etitio)er a)* the 5R#, ;ithout )otice to (rivate res(o)*e)t, sol* the lots to Tro(ica)a 5ro(erties a)* Develo(me)t #or(oratio) 6Tro(ica)a7, as evi*e)ce* by t;o se(arate Dee*s o& Sale, o)e over 8ot %2$, a)* a)other over 8ots %2. a)* %2D= a)* that the sellers> tra)s&er certi&icate o& title over the lots ;ere ca)celle*, tra)s&erre* a)* re-istere* i) the )ame o& Tro(ica)a. Tro(ica)a i)*uce* (etitio)er a)* the 5R# to sell the lots to it a)* thus e)riche* itsel& at the e?(e)se o& (rivate res(o)*e)t. 5rivate res(o)*e)t *ema)*e* the rescissio) o& the sale to Tro(ica)a a)* the reco)veya)ce o& the lots, to )o avail a)* (rivate res(o)*e)t is ;illi)- a)* able to com(ly ;ith the terms o& the co)tract to sell a)* has actually ma*e (la)s to *evelo( the lots i)to a to;)house (roject, but i) vie; o& the sellers> breach, it lost (ro&its o& )ot less tha) 5!0,000,000.00.

<SS@E AB) the H+8C SEE H$S Soverei-) <00@N<TC i) the sale o& the (arcel o& la)* 6lot %2a7. HE8D CES. The Holy See has soverei-) immu)ity i) the sale o& the (arcel o& la)* 6lot%2$7.#laim to soverei-) or *i(lomatic immu)ity is state* i) the 5ublic <)ter)atio)al 8a;. Ahe) state or i)ter)atio)al a-e)cy ;ishes to (lea* soverei-) or *i(lomatic immu)ity i) a &orei-) court, it re:uests the 3orei-) +&&ice o& the state ;here it is sue* to co)vey to the court that sai* *e&e)*a)t is e)title* to immu)ity. The De(artme)t o& 3orei-) $&&airs ;as allo;e* by the #ourt to i)terve)e o) the si*e o& (etitio)er by &ili)a memora)*um o& su((ort &or the (etitio)erDs claim o& soverei-) immu)ity. The Holy See e?ercises soverei-)ty over the Eatica) #ity i) Rome, <taly, a)* is re(rese)te* i) the 5hili((i)es by the 5a(al Nu)cio. The (etitio)er is, there&ore, a &orei-) state e)joyi)- soverei-) immu)ity. The immu)ity o& the soverei-) is reco-)iFe* o)ly ;ith re-ar* to (ublic acts or acts jure im(erii o& a state, but )ot ;ith re-ar* to (rivate acts or acts jure -estio)is. <& the act is i) (ursuit o& a soverei-) activity, or a) i)ci*e)t thereo&, the) it is a) act jure im(erii, es(ecially ;he) it is )ot u)*erta1e) &or -ai) or (ro&it. The (etitio)erDs sale o& the la)* is a commercial tra)sactio) that is a) act jure im(erii. The (etitio)er has bou-ht a)* sol* la)*s i) the or*i)ary course o& a real estate busi)ess, the sai* tra)sactio) ca) be cate-oriFe* as a) act jure -estio)is. Ho;ever, (etitio)er has *e)ie* that the ac:uisitio) a)* subse:ue)t *is(osal o& 8ot %2$ ;ere ma*e &or (ro&it but claime* that it ac:uire* sai* (ro(erty &or the site o& its missio) or the $(ostolic Nu)ciature i) the 5hili((i)es. The (etitio) &or certiorari ;as -ra)te* a)* the com(lai)t a-ai)st (etitio)er ;as *ismisse*.

0$N<8$ 5R<N#E H+TE8 ES. GS<S G /4 S#R$ 40"= G.R. No. 1 3$#TS'

1%/= ! 3eb 1994H

The co)troversy arose ;he) res(o)*e)t Gover)me)t Service <)sura)ce System 6GS<S7,(ursua)t to the (rivatiFatio) (ro-ram o& the 5hili((i)e Gover)me)t u)*er 5roclamatio) No. %0*ate* " December 19"/, *eci*e* to sell throu-h (ublic bi**i)- !0I to %1I o& the issue* a)* outsta)*i)- shares o& res(o)*e)t 0a)ila Hotel #or(oratio). <) a close bi**i)- hel* o) 1"Se(tember 199% o)ly t;o 6 7 bi**ers (artici(ate*' (etitio)er 0a)ila 5ri)ce Hotel #or(oratio), a 3ili(i)o cor(oratio), ;hich o&&ere* to buy %1I o& the 0H# or 1%,!00,000 shares at 541.%" (er share, a)* Re)o)- .erha*, a 0alaysia) &irm, ;ith <TT2Sherato) as its hotel o(erator, ;hich bi* &or the same )umber o& shares at 544.00 (er share, or 5 .4 more tha) the bi* o& (etitio)er

5e)*i)- the *eclaratio) o& Re)o)- .erha* as the ;i))i)- bi**erBstrate-ic (art)er a)* the e?ecutio) o& the )ecessary co)tracts, matche* the bi* (rice o& 544.00 (er share te)*ere* by Re)o)- .erha*.

+) 14 +ctober 199%, (erha(s a((rehe)sive that res(o)*e)t GS<S has *isre-ar*e* the te)*er o& the matchi)bi* a)* that the sale o& %1I o& the 0H# may be haste)e* by res(o)*e)t GS<S a)* co)summate* ;ith Re)o)- .erha*, (etitio)er came to this #ourt o) (rohibitio) a)* ma)*amus. <) the mai), (etitio)er i)vo1es Sec. 10, seco)* (ar., $rt. J<<, o& the 19"4 #o)stitutio) a)* submits that the 0a)ila Hotel has bee) i*e)ti&ie* ;ith the 3ili(i)o )atio) a)* has (ractically become a historical mo)ume)t ;hich re&lects the vibra)cy o& 5hili((i)e herita-e a)* culture. <t is a (rou* le-acy o& a) earlier -e)eratio) o& 3ili(i)os ;ho believe* i) the )obility a)* sacre*)ess o& i)*e(e)*e)ce a)* its (o;er a)* ca(acity to release the &ull (ote)tial o& the 3ili(i)o (eo(le. To all i)te)ts a)* (ur(oses, it has become a (art o& the )atio)al (atrimo)y. 5etitio)er also ar-ues that si)ce %1I o& the shares o& the 0H# carries ;ith it the o;)ershi( o& the busi)ess o& the hotel, ;hich is o;)e* by res(o)*e)t GS<S, a -over)me)t2o;)e* a)* co)trolle* cor(oratio), the hotel busi)ess o& res(o)*e)t GS<S bei)- a (art o& the tourism i)*ustry is u):uestio)ably a (art o& the )atio)al eco)omy. <ssue' Ahether or Not the sale o& 0a)ila Hotel to Re)o)- .erha* is violative o& the #o)stitutio)al (rovisio) o& 3ili(i)o 3irst (olicy a)* is there&ore )ull a)* voi*. Hel*' The 0a)ila Hotel or, &or that matter, %1I o& the 0H#, is )ot just a)y commo*ity to be sol* to the hi-hest bi**er solely &or the sa1e o& (rivatiFatio). The 0a)ila Hotel has (laye* a)* co)ti)ues to (lay a si-)i&ica)t role as a) authe)tic re(ository o& t;e)tieth ce)tury 5hili((i)e history a)* culture. This is the (lai) a)* sim(le mea)i)- o& the 3ili(i)o 3irst 5olicy (rovisio) o& the 5hili((i)e #o)stitutio). $)* this #ourt, hee*i)the clario) call o& the #o)stitutio) a)* acce(ti)- the *uty o& bei)- the el*erly ;atchma) o& the )atio), ;ill co)ti)ue to res(ect a)* (rotect the sa)ctity o& the #o)stitutio). <t ;as thus or*ere* that GS<S acce(ts the matchi)- bi* o& (etitio)er 0$N<8$ 5R<N#E H+TE8 #+R5+R$T<+N to (urchase the subject %1I o& the shares o& the 0a)ila Hotel #or(oratio) at 544.00 (er share a)* therea&ter to e?ecute the )ecessary cleara)ces a)* to *o such other acts a)* *ee*s as may be )ecessary &or (ur(ose

Sa)tia-o vs. #+0E8E#

3acts' 5rivate res(o)*e)t $tty. ,esus Del&i), (resi*e)t o& 5eo(leKs <)itiative &or Re&orms, 0o*er)iFatio) a)* $ctio) 65<R0$7, &ile* ;ith #+0E8E# a (etitio) to ame)* the co)stitutio) to li&t the term limits o& elective o&&icials, throu-h 5eo(leKs <)itiative. He base* this (etitio) o) $rticle JE<<, Sec. o& the 19"4 #o)stitutio), ;hich (rovi*es &or the ri-ht o& the (eo(le to e?ercise the (o;er to *irectly (ro(ose ame)*me)ts to the #o)stitutio). Subse:ue)tly the #+0E8E# issue* a) or*er *irecti)- the (ublicatio) o& the (etitio) a)* o& the )otice o& heari)- a)* therea&ter set the case &or heari)-. $t the heari)-, Se)ator Roco, the <.5, Demo1rasya2<(a-ta)--ol a)- Lo)stitusyo), 5ublic <)terest 8a; #e)ter, a)* 8aba) )- Demo1rati1o)5ili(i)o a((eare* as i)terve)ors2o((ositors. Se)ator Roco &ile* a motio) to *ismiss the Del&i) (etitio) o) the -rou)* that o)e ;hich is co-)iFable by the #+0E8E#. The (etitio)ers herei) Se)ator Sa)tia-o, $le?a)*er 5a*illa, a)* <sabel +)-(i) &ile* this civil actio) &or (rohibitio) u)*er Rule /% o& the Rules o& #ourt a-ai)st #+0E8E# a)* the Del&i) (etitio) risi)- the several ar-ume)ts, such as the &ollo;i)-' 617 The co)stitutio)al (rovisio) o) (eo(leKs i)itiative to ame)* the co)stitutio) ca) o)ly be im(leme)te* by la; to be (asse* by #o)-ress. No such la; has bee) (asse*= 6 7 The (eo(leKs i)itiative is limite* to ame)*me)ts to the #o)stitutio), )ot to revisio) thereo&. 8i&ti)- o& the term limits co)stitutes a revisio), there&ore it is outsi*e the (o;er o& (eo(leKs i)itiative. The Su(reme #ourt -ra)te* the 0otio)s &or <)terve)tio). <ssue' Ahether or )ot Sec. , $rt. JE<< o& the 19"4 #o)stitutio) is a sel&2e?ecuti)- (rovisio). Ahether or )ot #+0E8E# Resolutio) No. !00 re-ar*i)- the co)*uct o& i)itiative o) ame)*me)ts to the #o)stitutio) is vali*, co)si*eri)- the abse)ce i) the la; o& s(eci&ic (rovisio)s o) the co)*uct o& such i)itiative. Ahether the li&ti)- o& term limits o& elective o&&icials ;oul* co)stitute a revisio) or a) ame)*me)t o& the #o)stitutio). Hel*' Sec. , $rt JE<< o& the #o)stitutio) is )ot sel& e?ecutory, thus, ;ithout im(leme)ti)- le-islatio) the same ca))ot o(erate. $lthou-h the #o)stitutio) has reco-)iFe* or -ra)te* the ri-ht, the (eo(le ca))ot e?ercise it i& #o)-ress *oes )ot (rovi*e &or its im(leme)tatio). The (ortio) o& #+0E8E# Resolutio) No. !00 ;hich (rescribes rules a)* re-ulatio)s o) the co)*uct o& i)itiative o) ame)*me)ts to the #o)stitutio), is voi*. <t has bee) a) establishe* rule that ;hat has bee) *ele-ate*, ca))ot be *ele-ate* 6(otestas *ele-ata )o) *ele-ari (otest7. The *ele-atio) o& the (o;er to the #+0E8E# bei)- i)vali*, the latter ca))ot vali*ly (romul-ate rules a)* re-ulatio)s to im(leme)t the e?ercise o& the ri-ht to (eo(leKs i)itiative. The li&ti)- o& the term limits ;as hel* to be that o& a revisio), as it ;oul* a&&ect other (rovisio)s o& the #o)stitutio) such as the sy)chro)iFatio) o& electio)s, the co)stitutio)al -uara)tee o& e:ual access to o((ortu)ities &or (ublic service, a)* (rohibiti)- (olitical *y)asties. $ revisio) ca))ot be *o)e by i)itiative. Ho;ever, co)si*eri)the #ourtKs *ecisio) i) the above <ssue, the issue o& ;hether or )ot the (etitio) is a revisio) or ame)*me)t has become aca*emic