#15 JUSMAG Philippines vs. NLRC (Article XVI Sec. 3) (ForeignGovernment)

Facts: Florencio Sacramento (private respondent) was one of the 74security assistance support personnel (SASP) working at the JointUnited States Military Assistance Group to the Philippines (JUSMAG-Phils.). He had been with JUSMAG from 1969-1992. When dismissed, heheld the position of Illustrator 2 and incumbent Pres. of JUSMAGPhils.- Filipino Civilian Employees Assoc., a labor org. dulyregistered with DOLE. His services were terminated allegedly due tothe abolition of his position.Sacramento filed complaint w/ DOLE on the ground that hewas illegally suspended and dismissed from service by JUSMAG. Heasked for reinstatement. JUSMAG filed Motion to Dismiss invokingimmunity from suit. Labor arbiter Cueto in an Order dismissed thecomplaint "for want of jurisdiction". Sacramento appealed toNLRC.NLRC reversed the ruling of the labor arbiter and held thatpetitioner had lost its right not to be sued bec. (1) the principleof estoppel-that JUSMAG failed to refute the existence of employer-employee rel. (2)JUSMAG has waived its right to immunity from suitwhen it hired the services of private respondent. Hence, thispetition.

Issue:W/N JUSMAG has immunity from suit

Held: Yes. When JUSMAG took the services of private respondent, itwas performing a governmental function on behalf of the UnitedStates pursuant to the Military Assistance Agreement between thePhils. and America* JUSMAG consists of Air, Naval and Army groupand its primary task was to advise and assist the Phils. on airforce, army and naval matters. A suit against JUSMAG is one againstthe United States government, and in the absence of any waiver orconsent of the latter to the suit, the complaint against JUSMAGcannot prosper.Immunity of State from suit is one of the universallyrecognized principles of international law that the Phils.recognizes and adopts as part of the law of the land. Immunity iscommonly understood as the exemption of the state and its organsfrom the judicial jurisdiction of another state and anchored on theprinciple of the sovereign equality of states under which one statecannot assert jurisdiction over another in violation of the maximpar in parem non habeat imperium (an equal has no power over anequal)As it stands now, the application of the doctrine ofimmunity from suit has been restricted to sovereign or governmentalactivities and does not extend to commercial, private andproprietary acts.

A suit against JUSMAG is one against the United States Government and in the absence of any waiver or consent of the latter to the suit, the complaint against JUSMAG cannot prosper.

In this jurisdiction we recognize and adopt the generally accepted principles of international law as part of the law of the land. Immunity of state from suit is one of these universally recognized principles. In international law immunity is commonly understood as the exemption of the state and its organs from the judicial jurisdiction of another state. This is anchored on the principle of sovereignty of equal states under which one state cannot assert jurisdiction over another in violation of the maxim par in parem non habet imperium (an equal power has no power over an equal).

As it now stands, the application of the doctrine of immunity from suit has been restricted to sovereign or governmental activities (jus imperii) and does not extend to commercial, private and proprietary acts (jus gestionis).