The Republic of Indonesia entered into a maintenance contract with James Vinzon to maintain facilities at the Indonesian embassy and ambassador's residence. The contract was terminated by Indonesia prior to expiration, which Vinzon claimed was unlawful. Both lower courts dismissed the case, finding Indonesia immune from suit as a sovereign nation. The Supreme Court upheld this, stating that under international law, a foreign sovereign enjoys immunity from suit unless it explicitly consents to be sued. Terminating a contract is considered a public act of governance rather than a private commercial activity, so Indonesia's act of termination was covered by sovereign immunity.
The Republic of Indonesia entered into a maintenance contract with James Vinzon to maintain facilities at the Indonesian embassy and ambassador's residence. The contract was terminated by Indonesia prior to expiration, which Vinzon claimed was unlawful. Both lower courts dismissed the case, finding Indonesia immune from suit as a sovereign nation. The Supreme Court upheld this, stating that under international law, a foreign sovereign enjoys immunity from suit unless it explicitly consents to be sued. Terminating a contract is considered a public act of governance rather than a private commercial activity, so Indonesia's act of termination was covered by sovereign immunity.
The Republic of Indonesia entered into a maintenance contract with James Vinzon to maintain facilities at the Indonesian embassy and ambassador's residence. The contract was terminated by Indonesia prior to expiration, which Vinzon claimed was unlawful. Both lower courts dismissed the case, finding Indonesia immune from suit as a sovereign nation. The Supreme Court upheld this, stating that under international law, a foreign sovereign enjoys immunity from suit unless it explicitly consents to be sued. Terminating a contract is considered a public act of governance rather than a private commercial activity, so Indonesia's act of termination was covered by sovereign immunity.
The Republic of Indonesia entered into a maintenance contract with James Vinzon to maintain facilities at the Indonesian embassy and ambassador's residence. The contract was terminated by Indonesia prior to expiration, which Vinzon claimed was unlawful. Both lower courts dismissed the case, finding Indonesia immune from suit as a sovereign nation. The Supreme Court upheld this, stating that under international law, a foreign sovereign enjoys immunity from suit unless it explicitly consents to be sued. Terminating a contract is considered a public act of governance rather than a private commercial activity, so Indonesia's act of termination was covered by sovereign immunity.
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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.