Republic of Indonesia vs. James Vinzon, G.R. No. 154705, 26 June 2003 (Philippines)

Petitioner alleged that the Republic of Indonesia, as a foreign sovereign State, has sovereign immunity from suit and cannot be sued as a defendant in the Philippines. Respondent, on the other hand, alleged that the actual physical maintenance of the premises of the diplomatic mission is no longer a sovereign function of the State. The establishment of a diplomatic mission is an act jure imperii, or an act in pursuit of a sovereign activity. 

The Supreme Court held that the establishment of a diplomatic mission also encompasses its maintenance and upkeep, thus the State may enter into contracts with private entities for the maintenance and equipment of the embassy and the living quarters of its agents and officials. Hence, the Supreme Court ruled that the contract entered into by the Republic of Indonesia cannot be construed as a waiver of its immunity from suit.