Indonesia Vs Vinzon

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Diplomatic and Consular Relations

REPUBLIC OF INDONESIA v. JAMES VINZON


G.R. No. 154705, June 26, 2003
FACTS
The Republic of Indonesia entered into a Maintenance contract with James Vinzon as the
sole proprietor of Vinzon Trade and Services, for the maintenance of the air conditioning units,
generator sets, electrical facilities, water heaters and water motor pumps of the Indonesian
embassy annex as well as the residence of the Ambassador. The Contract was then terminated by
the Indonesian Government when it found that the work done by respondent is unsatisfactory,
said termination of the contract was done prior to its expiration date. James Vinzon claims that
the termination of the contract is arbitrary and unlawful. Both the trial court and the Court of
Appeals dismissed the case due stating that the Republic of Indonesia is immune from suit.
ISSUE
Whether or not the Republic of Indonesia is immune from suit.
HELD
A foreign sovereign is immune from suit or is outside of the jurisdiction of another state
unless it gives it consent to be sued. There are two concepts of sovereign immunity, the
aforementioned and the contemporary concept that foreign sovereigns are only immune from suit
with regard to public acts or acts jure imperii, but may be sued for their proprietary acts or acts
jure gestionis. The mere entering into a contract of a foreign state is not ipso facto implied
consent for it to be sued or an act jure gestionis. Furthermore, the Vienna Convention provided
the following circumstances as the only exceptions from immunity from suit:
(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;
(c) an action relating to any professional or commercial activity exercised by the diplomatic
agent in the receiving State outside his official functions.
The act of petitioners Ambassador Soeratmin and Minister Counsellor Kasim in
terminating the Maintenance Agreement is not covered by the exceptions provided in the
abovementioned provision.

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