Sovereign immunity

"Xxx.

Finally, we take note of the Decision rendered by the Appellate Division of the New York Supreme Court on 26 June 2012. In Swezey v. Merrill Lynch, Pierce, Fenner & Smith, Inc., the foreign court agreed with the dismissal of the turnover proceeding against the Arelma assets initiated by alleged victims of human rights abuses during the Marcos regime. It reasoned that the Republic was a necessary party, but could not be subject to joinder in light of its assertion of sovereign immunity:

(The Republic's) national interests would be severely prejudiced by a turnover proceeding because it has asserted a claim of ownership regarding the Arelma assets that rests on several bases: the Philippine forfeiture law that predated the tenure of President Marcos; evidence demonstrating that Marcos looted public coffers to amass a personal fortune worth billions of dollars; findings by the Philippine Supreme Court and Swiss Federal Supreme Court that Marcos stole related assets from the Republic; and, perhaps most critically, the recent determination by the Philippine Supreme Court that Marcos pilfered the money that was deposited in the Arelma brokerage account. Consequently, allowing the federal court judgment against the estate of Marcos to be executed on property that may rightfully belong to the citizens of the Philippines could irreparably undermine the Republic's claim to the Arelma assets.

x x x x

The Republic's declaration of sovereign immunity in this case is entitled to recognition because it has a significant interest in allowing its courts to adjudicate the dispute over property that may have been stolen from its public treasury and transferred to New York through no fault of the Republic. The high courts of the United States, the Philippines and Switzerland have clearly explained in decisions related to this case that wresting control over these matters from the Philippine judicial system would disrupt international comity and reciprocal diplomatic self-interests.11

Xxx."

FERDINAND R. MARCOS, JR., Petitioner, vs. REPUBLIC OF THE PHILIPPINES, represented by the Presidential Commission on Good Government, Respondent. G.R. No. 189434 March 12, 2014. Accompanying case: IMELDA ROMUALDEZ-MARCOS, Petitioner, vs. REPUBLIC OF THE PHILIPPINES, Respondent. G.R. No. 189505, March 12, 2014. (Resolution).

Source:

https://www.lawphil.net/judjuris/juri2014/mar2014/gr_189434_2014.html.