Holy See vs Rosario (G.R. No. 101949) Constitutional Law

G.R. No. 101949 December 1, 1994

THE HOLY SEE, petitioner,

vs.

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

Ponente:

QUIASON, J.

Action:

This is a petition for certiorari under Rule 65

Facts:

Petition arose from a controversy over a parcel of land. Lot 5-A, registered under the name Holy See.  The land was donated by the Archdiocese of Manila to the Holy See, who exercises sovereignty over the Vatican City, Rome, Italy. 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, respondent Starbright 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.

Issues:

Whether or not Holy See can invoke sovereign immunity.

Ruling:

WHEREFORE, the petition for certiorari is GRANTED and the complaint in Civil Case No. 90-183 against petitioner is DISMISSED.

Ratio Decidendi:

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.

The Holy See is immune from suit because the act of selling the lot of concern is non-propriety in nature, The transfer of the property and its subsequent disposal are likewise clothed with a governmental character as petitioner sold the lot not for profit or gain rather because it merely cannot evict the squatters living in said property.