G.R. No. 106483 – 314 Phil. 46 – 244 SCRA 210 – Political Law – Constitutional Law – State Immunity From Suit – Waiver of Immunity – Consent By Law – Waiver, if allowed by law, must be express
In 1990, Ernesto Callado was dismissed as a driver of the International Rice Research Institute (IRRI) on the ground that he figured in an accident while driving an IRRI vehicle and while under the influence of liquor. Callado then filed an illegal dismissal case against IRRI before the Labor Arbiter. The IRRI invoked that as an international organization, it is immune from suit. Callado countered this argument by submitting a Memorandum from IRRI in 1991 where it appears that in labor cases, it is waiving its immunity from suit. The Memorandum was signed by IRRI’s Director-General. The LA ruled in favor of Callado but the NLRC reversed the decision of the LA.
ISSUE: Whether or not IRRI is immune from suit.
HELD: Yes. This is clear from PD 1620 which grants immunity to the IRRI.
But PD 1620 did provide that the immunity may be waived by the Director-General, was there not a valid waiver here?
No. The Memorandum signed by the Director-General is not in any way a valid waiver of immunity. The wording of the Memo is as follows ” If the plaintiff’s attorney or the arbiter, asks if IRRI will waive its immunity we may reply that the Institute will be happy to do so, as it has in the past in the formal manner required thereby reaffirming our commitment to abide by the laws of the Philippines and our full faith in the integrity and impartially of the legal system.” The term used was “may” and not “shall.” In this case, no such waiver was executed.
