REPUBLIC OF INDONESIA vs. JAMES VINZON [G.R. No. 154705.

June 26, 2003]

Immunity from suit

FACTS:

 Petitioner Rep. of Indonesia entered into a Maintenance Agreement with respondent.

 The maintenance agreement includes the following specific equipments: air conditioning units,
generator sets, electrical facilities, water heaters and water motor pumps. The agreement shall be
effective for 4 years.
 The new Minister Counsellor allegedly found respondent's work and services unsatisfactory and
not in compliance with the standards set in the Agreement.
 Rep. of Indonesia terminated the agreement with the respondent.
 The latter claim that it was unlawful and arbitrary.
 he filed a complaint against the petitioners which opposed by invoking immunity from
suit. 
 a Motion to Dismiss is filed alleging that the Republic of Indonesia, as a foreign state, has
sovereign immunity from suit and cannot be sued as party-defendant in the Philippines.
 Vinzon said that because of the provision in the Maintenance Agreement,
“Any legal action arising out of this Maintenance Agreement shall be settled according to the laws of the
Philippines and by the proper court of Makati City, Philippines”
Indonesia expressly waived his immunity from suit.
 Trial court and CA ruled in favor of Vinzon.

ISSUE:

W/N Ambassador Soeratmin (resident ambassador in the embassy) and Minister Counsellor Kasim may
be sued in their private capacities

HELD: 

No they cannot be sued in their private capacities because they are diplomatic agents 

Article 31 of the Vienna Convention on Diplomatic Relations provides that diplomatic agents shall enjoy
immunity from criminal jurisdiction in the receiving state (ex: Philippines). They shall also enjoy immunity
from civil and administrative jurisdiction except:

1. Real action relating private immovable property in the territory of receiving State, unless he holds
it on behalf of the sending state (ex: Indonesia)
2. Action relating to succession in which diplomatic agent is executor, administrator, or heir or
legatee as a private person and not on behalf of sending state
3. Action relating to professional or commercial activity outside his official function

Soeratmin and Kasim are not covered by the exceptions, hence they enjoy immunity from suit

Acts jure imperii are acts of a sovereign nature and are subjected to immunity. 

jure gestionis - Describing commercial transactions by bodies that are owned by

the state but are not regarded as organs of the state. In international law the state
accepts responsibility for such transactions and does not claim immunity.