Diplomatic and Consular Relations

DEUTSCHE GESELLSCHAFT TECHNISCHE ZUSAMMENARBEIT (GTZ) v. HON.

COURT OF APPEALS
G.R. No. 152318, April 16, 2009

FACTS
The Federal Republic of Germany and the Republic of the Philippines ratified and
agreement which lead to the Social Health Insurance—Networking and Empowerment (SHINE)
program wherein the program seeks to provide health care to Filipino families, especially the poor.
The Republic of Germany assigned the GTZ as the implementing corporation for the program,
while the Philippines designated the Department of Health and the Philippine Health Insurance
Corporation. Private respondents, as employed by GTZ for the implementation of the SHINE, had
a misunderstanding with the Project Manager of SHINE. This lead to an exchange of letters which
was interpreted to be the resignation of the private respondents. Private respondents then filed a
complaint for illegal dismissal to the labor arbiter. GTZ contends that it is immune from suit as it
is the accredited agency of the Federal Republic of Germany.

ISSUE
Whether or not the GTZ is immune from suit.

HELD
A state may waive its immunity through a general or specific law. The special law can take
the form of the original charter of the incorporated government agency. In this case however, GTZ
presented any evidence to support their claim that they are immune from suit, and has failed to
obtain a certification of immunity from suit from the Department of Foreign Affairs. If GTZ has
done so, then there would be no ambiguity in their claim that they are immune from suit.