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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.
FACTS : The case emanates from a real estate transaction between the representative of the
Holy See , the Papal Nuncio who is represented in this instance by Msgr. Domingo A. Cirilos,
Jr who are the Sellers and Private Respondent, Starbright Sales Enterprises, Inc., a domestic
corporation engaged in the real estate business, who is the Buyer.
Msgr Cirilos sold 3 contigous lots with a total area of 6,000 sqm to Ramon Licup for the price
of P 1240.00 per sqm on the condition that Licup would pay P 100,000.00 as earnest money
to Seller and Seller will clear the land of the illegal squatters. Licup who was acting as the
Agent of Starbright Sales Enterprises sold his right over said lots to Starbright.
However the squatters refused to vacate the land and a dispute arose between the two
parties on who should clear and evict the squatters. Starbright propose that they will clear the
land but their should be a discount on the price of P1,240.00 /sqm to P1,150 /sqm. . The
petitioner refused and instead gave respondent two options which are : 1) Petitioner return
the earnest money and cancel the sale or 2) Private respondent evict the squatters and
continue with the original transaction.
Monsignor Cirillos return the earnest money and gave private respondent 7 days to pay for
the property in whole. Later on respondent discovered that the said lots were sold by the
Papal Nuncio to Tropicana without informing Starbright. Strabright filed a case against the
Papal Nuncio specifying and demanding that 1) Deeds of Sale between petitioner and the
respondent on the one hand, and Tropicana on the other be annuled; (2) the reconveyance of
the lots in question; (3) specific performance of the agreement to sell between it and the
owners of the lots; and (4) damages.
The petitioner filed a Motion to Dismiss on the ground of Non-Suability of a sovereign state
from suit which was denied by the court on the grounds that the Holy See has shed off its
immunity the moment it went into a proprietary transaction with an individual. The papal
Nuncio filed a Motion for Reconsideration . Hence a petition for certiorari under Rule 65 of
the Revised Rules of Court to reverse and set aside the Orders dated June 20, 1991 and
September 19, 1991 of the Regional Trial Court, Branch 61, Makati, Metro Manila in Civil
Case No. 90-183.zZ.
ISSUE : Whether or not the Holy See has shed off its immunity from suit when it entered into
a transaction with the private respondent?
HELD : The Supreme Court ruled that the Holy See has not shed off its immunity from suit
when it entered into a transaction to sell its land because the transaction is not jure gestioni
(proprietary act) but is indeed a jure imperii ( sovereign act). The lot being sold by the Papal
Nuncio is not in the regular course of business but just to sell it so that the proceeds can be
use. The purpose of establishing a mission on the lot cannot materialize due to the infestation
of squatters. It merely wanted to dispose off the same because the squatters living thereon
made it almost impossible for petitioner to use it for the purpose of the donation. Wherefore
the Certiorari of the petitioner was granted and the case of the respondent was dismissed.
The Court ruled that the respondent has a recourse which is to asked the Department of
Foreign Affairs to make a representation on his claim with the Holy See.

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