Professional Documents
Culture Documents
171396 (2006)
Kilosbayan Foundation and Bantay Katarungan Foundation vs Janolo, et al., G.R. No. 180543, August
18, 2010
REPUBLIC OF INDONESIA vs. JAMES VINZON [G.R. No. 154705. June 26, 2003]
FACTS: Petitioner Vinzon 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. The respondent terminated the agreement with
the respondent. The latter claim that it was unlawful and arbitrary. Respondent filed a Motion to
Dismiss 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.
ISSUE: W/N the CA erred in sustaining the trial court's decision that petitioners have waived their
immunity from suit by using as its basis the provision in the Maintenance Agreement.
HELD: The mere entering into a contract by a foreign state with a private party cannot be construed
as the ultimate test of whether or not it is an act juri imperii or juri gestionis. Such act is only the start
of the inquiry. There is no dispute that the establishment of a diplomatic mission is an act juri imperii.
The state may enter into contracts with private entities to maintain the premises, furnishings and
equipment of the embassy. The Republic of Indonesia is acting in pursuit of a sovereign activity when
it entered into a contract with the respondent. The maintenance agreement was entered into by the
Republic of Indonesia in the discharge of its governmental functions. It cannot be deemed to have
waived its immunity from suit.
DECISION
AZCUNA, J:
This is a petition for review on certiorari to set aside the Decision of the
Court of Appeals dated May 30, 2002 and its Resolution dated August 16,
2002, in CA-G.R. SP No. 66894 entitled The Republic of Indonesia, His
Excellency Ambassador Soeratmin and Minister Counselor Azhari Kasim v.
Hon. Cesar Santamaria, Presiding Judge, RTC Branch 145, Makati City,
and James Vinzon, doing business under the name and style of Vinzon
Trade and Services.
Petitioner, Republic of Indonesia, represented by its Counsellor, Siti
Partinah, entered into a Maintenance Agreement in August 1995 with
respondent James Vinzon, sole proprietor of Vinzon Trade and
Services. The Maintenance Agreement stated that respondent shall, for a
consideration, maintain specified equipment at the Embassy Main Building,
Embassy Annex Building and the Wisma Duta, the official residence of
petitioner Ambassador Soeratmin. The equipment covered by the
Maintenance Agreement are air conditioning units, generator sets,
electrical facilities, water heaters, and water motor pumps. It is likewise
stated therein that the agreement shall be effective for a period of four
years and will renew itself automatically unless cancelled by either party by
giving thirty days prior written notice from the date of expiry.
[1]
Petitioners claim that sometime prior to the date of expiration of the said
agreement, or before August 1999, they informed respondent that the
renewal of the agreement shall be at the discretion of the incoming Chief of
Administration, Minister Counsellor Azhari Kasim, who was expected to
arrive in February 2000. When Minister Counsellor Kasim assumed the
position of Chief of Administration in March 2000, he allegedly found
respondents work and services unsatisfactory and not in compliance with
the standards set in the Maintenance Agreement. Hence, the Indonesian
Embassy terminated the agreement in a letter dated August 31,
2000. Petitioners claim, moreover, that they had earlier verbally informed
[2]
petitioners docketed as Civil Case No. 18203 in the Regional Trial Court
(RTC) of Makati, Branch 145. On February 20, 2001, petitioners filed a
Motion to Dismiss, alleging that the Republic of Indonesia, as a foreign
sovereign State, has sovereign immunity from suit and cannot be sued as a
party-defendant in the Philippines. The said motion further alleged that
Ambassador Soeratmin and Minister Counsellor Kasim are diplomatic
agents as defined under the Vienna Convention on Diplomatic Relations
and therefore enjoy diplomatic immunity. In turn, respondent filed on
[4]
March 20, 2001, an Opposition to the said motion alleging that the Republic
of Indonesia has expressly waived its immunity from suit. He based this
claim upon the following 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.
On May 17, 2001, the trial court denied herein petitioners Motion to
Dismiss. It likewise denied the Motion for Reconsideration subsequently
filed.
The trial courts denial of the Motion to Dismiss was brought up to the
Court of Appeals by herein petitioners in a petition for certiorari and
prohibition. Said petition, docketed as CA-G.R. SP No. 66894, alleged that
the trial court gravely abused its discretion in ruling that the Republic of
Indonesia gave its consent to be sued and voluntarily submitted itself to the
laws and jurisdiction of Philippine courts and that petitioners Ambassador
Soeratmin and Minister Counsellor Kasim waived their immunity from suit.
On May 30, 2002, the Court of Appeals rendered its assailed decision
denying the petition for lack of merit. On August 16, 2002, it denied herein
[6]
for the doctrine of sovereign immunity is that there can be no legal right
against the authority that makes the law on which the right depends. In the
case of foreign States, the rule is derived from the principle of the
sovereign equality of States, as expressed in the maxim par in parem non
habet imperium. All states are sovereign equals and cannot assert
jurisdiction over one another. A contrary attitude would unduly vex the
[11]
public bidding for the repair of a wharf at a United States Naval Station is
an act jure imperii. On the other hand, we considered as an act jure
gestionis the hiring of a cook in the recreation center catering to American
servicemen and the general public at the John Hay Air Station in Baguio
City, as well as the bidding for the operation of barber shops in Clark Air
[15]
xxx
1. A diplomatic agent shall enjoy immunity from the criminal jurisidiction of the
receiving State. He shall also enjoy immunity from its civil and administrative
jurisdiction, except in the case of:
(a) a real action relating to private immovable property situated in the territory of
the receiving State, unless he holds it on behalf of the sending State for the
purposes of the mission;
(b) an action relating to succession in which the diplomatic agent is involved as
executor, administrator, heir or legatee as a private person and not on behalf of the
sending State;
xxx
EN BANC
DECISION
As Ongs petition was set for hearing by the RTC on August 7, 14, 21 and 28,
2007,[3] petitioners-therein oppositors[4] filed on August 6, 2007 a motion for
voluntary inhibition, which the RTC denied by Order of August 7, 2007, a day
after it was filed and prior to the hearing on the motion.[5] Despite the pendency
of petitioners motion for reconsideration, the RTC proceeded to hear Ongs
petition on August 14 and 21, 2007. It was only by Order of September 17,
2007[6] that the motion for reconsideration was resolved, a copy of which was
received by petitioners on October 4, 2007.
In the present petition filed on December 3, 2007, petitioners assert that public
respondent erred and committed grave abuse of discretion: (a) [i]n not
voluntarily inhibiting himself from presiding over the case; (b) [i]n declaring
herein [p]etitioners as having defaulted; and (c) in granting the Petition of
[r]espondent Gregory S. Ong.[10]
In their motion for voluntary inhibition, petitioners cite that Ong, his counsel,
and public respondent are members of the San Beda Law Alumni Association
which, along with the schools Benedictine community, publicly endorsed and
supported Ongs petition through newspaper advertisements. Moreover, from the
account of the proceedings, petitioners point out that issuing the order of default
without resolving the motion for reconsideration of the order denying the
motion for inhibition exhibits blatant bias for being unduly precipitate and
wholly unwarranted.
The rule on compulsory disqualification and voluntary inhibition of judges is
provided under Section 1, Rule 137 of the Rules of Court:
No judge or judicial officer shall sit in any case in which he,
or his wife or child, is pecuniarily interested as heir,
legatee, creditor or otherwise, or in which he is related to
either party within the sixth degree of consanguinity or
affinity, or to counsel within the fourth degree, computed
according to the rules of the civil law, or in which he has
been executor, administrator, guardian, trustee or counsel, or
in which he has presided in any inferior court when his ruling
or decision is the subject of review, without the written
consent of all parties in interest, signed by them and entered
upon the record.
In the final reckoning, there is really no hard and fast rule when it comes
to the inhibition of judges. Each case should be treated differently and decided
based on its peculiar circumstances.
Impartiality being a state of mind, there is thus a need for some kind of
manifestation of its reality, in order to provide good, sound or ethical grounds or
just and valid reasons for inhibition.[23] Bare allegations of bias and prejudice are
not enough in the absence of clear and convincing evidence to overcome the
presumption that a judge will undertake his noble role to dispense justice
according to law and evidence and without fear or favor.[24]In Gochan v.
Gochan,[25] the Court elucidated further:
Verily, the second paragraph of Section 1 of Rule 137 does not give
judges the unfettered discretion to decide whether to desist from
hearing a case. The inhibition must be for just and valid causes. The
mere imputation of bias or partiality is not enough ground for them to
inhibit, especially when the charge is without basis. This Court has to
be shown acts or conduct clearly indicative of arbitrariness or
prejudice before it can brand them with the stigma of bias or partiality.
In a string of cases, the Supreme Court has said that bias and
prejudice, to be considered valid reasons for the voluntary inhibition
of judges, must be proved with clear and convincing evidence. Bare
allegations of their partiality will not suffice. It cannot be presumed,
especially if weighed against the sacred oaths of office of magistrates,
requiring them to administer justice fairly and equitably both to the
poor and the rich, the weak and the strong, the lonely and the well-
connected.[26](emphasis and underscoring supplied)
In one case,[34] it was held that the Rules of Court does not direct the court
to order the filing of comments or oppositions to the motion before the motion is
resolved. The parties may orally argue and ventilate their positions and,
thereafter, the court may rule on the motion.
The Court notes that when petitioners filed the Omnibus Motion (for
reconsideration and deferment) which basically reiterated their previous
arguments, they no longer set the motion for hearing and simply submitted their
motion ex parte without further arguments, thereby recognizing the non-litigious
nature of their allegations.
The trial court narrated what transpired on August 14, 2007 as confirmed by the
entry of the nunc pro tunc Order of September 17, 2007 making on record the
denial of the Omnibus Motion.
The cited record of the proceedings validates the disposition made by the trial
court on the given date, during which time petitioners failed to appear. After
hearing the arguments, the trial court ruled as follows, quoted verbatim:
In the case at bar, the trial court actually took judicial action which was,
however, by mistake or inadvertence, not placed in proper form on record. In
any event, petitioners neither seriously contest the veracity of the transcript used
as basis for such confirmatory order nor claim any unwarranted prejudice from
the fact of its resolution during their non-appearance in the scheduled hearing.
Further, in considering such motions, two things must be borne in mind: (1) the
reason for the postponement and (2) the merits of the case of the movant. [45] In
this case, the requested postponement was premised on the pendency of the
motion for reconsideration. The Omnibus Motion was, however, submitted ex
parte and without further arguments from Oppositors,[46] drawing public
respondent to promptly resolve it by denying it.
As to the merits of the case of petitioners, the trial court was left with
nothing to assess since they did not file any Opposition to Ongs Petition despite
the grant to them of extension of time for the purpose and their various
submissions to the trial court all related to peripheral issues.
As for the allegation of undue haste, the Court cannot appreciate it,
considering that the trial court even granted petitioners additional period within
which to file an Opposition and in view of the nature of the case, which
empowers the trial court to make orders expediting proceedings.[49]
WE CONCUR:
RENATO C. CORONA
Chief Justice