Holy See vs Rosario (1994)

Petitioner: THE HOLY SEE

respondents: THE HON. ERIBERTO U. ROSARIO, JR., as
Presiding Judge of the Regional Trial Court of Makati, Branch 61
and STARBRIGHT SALES ENTERPRISES, INC

Ponente: Justice Quiason

G.R. No. 101949

December 1, 1994

TOPICS: Diplomatic Immunity;

FACTS:

Holy See exercises sovereignty over the Vatican City in Rome,

Italy, and is represented in the Philippines by the Papal Nuncio.

Holy See owns a parcel of land. This land was a donation from
Archdiocese of Manila. Such land was sold to Ramon Licup who
later on assigned his right to the sale to Starbright, a domestic
corporation engaged in the real estate business.

In view of the refusal of the squatters to vacate the lots sold to

Licup, a dispute arose as to who of the parties has the
responsibility of evicting and clearing the land of squatters.

Complicating the relations of the parties was the sale by Holy See
to Tropicana Properties and Development Corporation
(Tropicana).

Starbright filed a complaint for the annulment of the sale,

reconveyance of the lot and specific performance with damages.

Holy See, on the other hand, invoked sovereign immunity.

ISSUE: WON Holy See may invoke immunity.

RULING: Yes.

Certainly, the mere entering into a contract by a foreign state with

a private party cannot be the ultimate test. Such an act can only
be the start of the inquiry. The logical question is whether the
foreign state is engaged in the activity in the regular course of
business.

Lot 5-A was acquired by petitioner as a donation from the

Archdiocese of Manila. The donation was made not for
commercial purpose, but for the use of petitioner to construct
thereon the official place of residence of the Papal Nuncio.

In Article 31(a) of the Convention, a diplomatic envoy is granted

immunity from the civil and administrative jurisdiction of the
receiving state over any real action relating to private immovable
property situated in the territory of the receiving state which the
envoy holds on behalf of the sending state for the purposes of the
mission. If this immunity is provided for a diplomatic envoy, with
all the more reason should immunity be recognized as regards
the sovereign itself, which in this case is the Holy See.