THIRD DIVISION

G.R. No. 106483, May 22, 1995

ERNESTO L. CALLADO, PETITIONER, VS. INTERNATIONAL RICE
RESEARCH INSTITUTE, RESPONDENT.

DECISION

Nature: Intl. Org. Immunity from Suit and the express waiver of such immunity of the head

or authorized representative of the institute.

Facts:

1. Callado was employed as a driver of IRRI for almost seven (7) years.

2. While driving the IRRI vehicle on official trip to Ninoy Aquino Intl. Airport and

back to IRRI, he figured in an accident.

3. The IRRI Human Resource Development Department conducted a preliminary

investigation and the findings and charges are below:

a. Driving on duty while in the influence of liquor

b. Serious misconduct

c. Gross and habitual neglect of duty

4. Collado submitted his answer and defenses to the charges against him.

5. IRRI evaluated the answer of the petitioner, and issued a notice of termination

order to him.

6. Collado filed a complaint before the labor arbiter for illegal dismissal, suspension,

and indemnity pay with moral and exemplary damages and attorney's fees.

7. IRRI wrote to inform the labor arbiter about their immunity from legal process

and suit by virtue of article 3 of presidential decree no. 1620, and that invokes

such diplomatic and immunity and privileges as an international organization.

Presidential Decree No. 1620, Article 3 provides:

"Article 3. Immunity from Legal Process. The Institute shall enjoy immunity

from any penal, civil and administrative proceedings, except insofar as that

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 immunity has been expressly waived by the Director-General of the Institute

or his authorized representatives."

8. The labor arbiter admitted the defense of immunity but cited that in cases of

termination, IRRI waived its immunity and that ordering the respondent to

reinstate Callado to his position and give the full back pay to be computed from

March to October.

Issue: Whether or not the immunity is waived by the IRRI.

Held: No, NLRC (National Labor Relations commissions) ordered to set aside the decision of

the labor arbiter and dismissed the complaint.

Reason: IRRIs immunity is undisputed. International organization are immune from local

(penal, administrative, civil) proceedings of the court, and respecting the separation of

power, court cannot go beyond the determination of the executive branch who recognized

and affirmed with the principle since diplomatic immunity is a political question.

The objective is to avoid the host country to pressure, control, and enter into the affairs of

the international organization and hampered their function.

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