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CIVIL LAW REVIEWER

TABLE of CONTENTS

PRIVATE INTERNATIONAL LAW


Table of Contents

Chapter II. Jurisdiction ................................429


I.
Bases of Exercise of Judicial Jurisdiction
429
II.
Exercise of Jurisdiction .....................429
III. Ways of Dealing with Jurisdiction in a
Conflicts Problem.......................................430
Chapter III. Choice of Law ...........................431
I.
Approaches to Choice of Law ...........431
Chapter IV. Characterization .......................433
I.
Types of Characterization .................433
II.
Depecage ..........................................433
Chapter V. Renvoi ........................................434
I.
Definition ...........................................434
II.
Ways of Dealing with Renvoi ............434
Chapter VI. Notice and Proof of Foreign Law
.......................................................................435
I.
Proof of Foreign Law.........................435
II.
Exceptions to the Application of Foreign
Law 435
Chapter VII. Nationality................................436
I.
Determination of Nationality ..............436
II.
Procedure for Naturalization .............436
III. Loss of Philippine Citizenship ...........437
IV. Problems in Applying the Nationality
Principle .....................................................438
Chapter VIII. Domicile ..................................439
I.
Domicile ............................................439
II.
Comparative Merits and Demerits of
Domicile and Nationality ............................440
Chapter IX. Principles on Personal Status
and Capacity.................................................441
I.
Definition ...........................................441
II.
Beginning and End of Personality.....441
III. Absence ............................................441
IV. Name.................................................442
V. Age of Majority ..................................442
VI. Capacity ............................................442
Chapter X. Family Relations........................443
I.
Marriage ............................................443
II.
Divorce and Separation.....................445
III. Annulment and Declaration of Nullity 445
IV. Parental Relations.............................446
V. Adoption ............................................446

Chapter XI. Property .................................... 447


I.
Controlling LawLex Situs/Lex Rei
Sitae 447
II.
Exceptions to Lex Situs..................... 447
III. Situs of Certain Properties ................ 447
Chapter XII. Contracts ................................. 449
I.
Extrinsic Validity of Contracts ........... 449
II.
Extrinsic Validity of Contracts ........... 449
III. Capacity to Enter Into Contracts....... 449
IV. Choice of Law Issues in Conflicts
Contracts Cases ........................................ 449
V. Limitation Choice of Law................... 450
VI. Applicable Law in the Absence of
Effective Choice......................................... 450
Chapter XIII. Succession ............................. 451
I.
Extrinsic Validity (Arts. 17, 815-817, CC)
451
II.
Intrinsic Validity ................................. 451
III. Interpretation of Wills ........................ 451
IV. Revocation ........................................ 451
V. Probate.............................................. 451
VI. Administration of Estates .................. 452
VII.
Trusts............................................ 452
Chapter XIV. Torts and Crimes ................... 453
I.
Torts .................................................. 453
II.
Crimes............................................... 454
Chapter XV. Torts and Crimes .................... 455
I.
Personal Law of Corporations .......... 455
II.
Domicile/Residence of Corporations 455
III. Jurisdiction Over Foreign Corporations
455
IV. Right of Foreign Corporations to Bring
Suit 456
Chapter XVI. Foreign Judgments ............... 457
I.
Recognition v. Enforcement.............. 457
II.
Bases of Recognition and Enforcement
457
III. Policy
of
Preclusion
Underlying
Recognition and Enforcement ................... 457
IV. Requisites
for
Recognition
or
Enforcement .............................................. 457
V. Procedures for Enforcement ............. 457
VI. Effect of Foreign Judgment in the
Philippines ................................................. 458

426
PRIVATE INTERNATIONAL LAW

Chapter I. Introduction.................................427

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Chapter I. Introduction
PRIVATE INTERNATIONAL LAW:
It is a branch or part of Philippine Law which
regulates the application of foreign law
within Philippine jurisdiction in the resolution
of cases involving foreign elements.
It is that part of municipal law which governs
cases involving a foreign element.
more commonly known in other jurisdictions
as conflict of laws
General Nature of Private International Law
It is a method or technique. It is not a
system of substantive rules. It has no
material content in terms of rights and
duties, and hence it does not provide
immediate solution to the issue at hand. It
only points out the legal system which rules
are to be applied to a particular dispute.
It is a modus vivendi among the private law
systems of the world by which they may
apply one anothers laws.
The principles of conflict of laws
incorporated in municipal laws of many
states are based on comity of nations.
COMITY: is neither a matter of absolute
obligation nor of mere courtesy and good
will, it is the recognition which one nation
allows within its territory to the legislative,
executive, or judicial acts of another nation
having due regard both to international duty
and convenience, and to the rights of its own
citizens or of other persons who are under
the protection of its laws (Hilton v. Guyot,
1895)
FOREIGN ELEMENT may refer to parties,
property, events, or transactions.
PRIVATE INTERNATIONAL LAW vs.PUBLIC
INTERNATIONAL LAW
Basis
Parties

PRIL

Individuals
corporations

Transactions

or

state-to-state
or
government-togovernment
matters

PIL
Primarily
states
and international
organizations
Exception:
Human
rights
cases
private
transactions
between
individuals

427
PRIVATE INTERNATIONAL LAW

PRIVATE INTERNATIONAL LAW TEAM

Chapter I. INTRODUCTION

PRIVATE INTERNATIONAL LAW

CIVIL LAW REVIEWER

CIVIL LAW REVIEWER


Sources

Chapter I. INTRODUCTION
Custom
Treaty
general
principles of
law
recognized by
civilized
nations
judicial
decisions
teachings of
the
most
highly
qualified
publicists

Remedies

resort to forum
court or
administrative
tribunals (as
provided by
municipal laws
of the state)

National
conflict rule
International
conflict rules

diplomatic
protest
negotiation,
conciliation,
arbitration
adjudication
before
international
tribunal
use of force
war

PRIL v. Municipal law: presence of foreign


element

SOURCES
1. Codes and statutes
2. Treaties and international conventions
3. Treatises, commentaries, and studies of
learned societies
4. Judicial decisions

General Process in the Resolution of Conflict


Problem
1. Jurisdiction
Where can or should litigation be
initiated?
2. Characterization of Cause of Action
Which legal category does the case fall
into?
3. Choice of law
Which law will the court apply?
4. Recognition
and
enforcement
of
judgments
Where can the resulting judgment be
enforced?

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PRIVATE INTERNATIONAL LAW

Examples of Conflict of Law Rules in the


Philippines
1. Art. 15 CC: Lex Patriae
2. Art. 1251 (par. 3) CC: Lex Domicili
3. Art. 16 CC: Lex Situs/ Lex Rei Sitae
4. Art. 17 (par. 1) CC: Lex Loci Contractus
5. Art. 71 CC: Lex Loci Celebrationis
6. Art. 26 (par. 1) FC: Lex Loci Celebrationis
7. Art. 1306 CC: Lex Loci Intentionis

CIVIL LAW REVIEWER

Chapter II. JURISDICTION

Chapter II. Jurisdiction


I. BASES OF JURISDICTION
II. EXERCISE OF JURISDICTION
III. WAYS OF DEALING WITH JURISDICTION IN
A CONFLICTS PROBLEM

C. Jurisdiction over the SUBJECT MATTER

JURISDICTION
1. Judicial jurisdiction - the power or
authority of a court to try a case, render
judgment and execute it in accordance
with law.
2. Legislative jurisdiction- the ability of
the state to promulgate laws and
enforce them on all persons and
property within its territory.

Bases of Exercise
Jurisdiction

of

Judicial

II. Exercise of Jurisdiction


TRADITIONAL BASIS:
1. States PHYSICAL POWER over persons
and property within its territory
2. This explains the distinctions made between
1
actions in personam and actions in rem or
2
quasi in rem , dating back to the case of
Pennoyer v. Neff (1878).

A. Jurisdiction over the PERSON


Acquisition
1. Over plaintiff: filing of suit
2. Over defendant:
a. entry of appearance, or
b. service of legal process/summons
In rem proceeding: service of summons by
publication
Asiavest Limited v. CA, 1998: Jurisdiction
over the person of the defendant is not a
prerequisite to confer jurisdiction on the
court provided that the court acquires
jurisdiction over the res. Nonetheless
summons must be served upon the
defendant not for the purpose of vesting the
court with jurisdiction but merely for
satisfying the due process requirement.
In personam proceeding:
1. General Rule: Personal service of
summons
or
substituted
service,
PROVIDED, the defendant is within the
territorial jurisdiction of the court
2. Exception: In Gemperle v. Schenker
wherein a non-resident was served with
summons through his wife, who was a
resident of the Philippines and who was his
representative and attorney-in-fact in a prior
civil case filed by him; moreover, the second
case was a mere offshoot of the first case.
B. Jurisdiction over the PROPERTY
1. Acquisition
a. seizure of property under a
process

Acquisition
1. competence of the court to hear, try and
decide the case is conferred by law
2. necessary that said power be properly
invoked by the filing of petition
3. cannot be conferred by mere consent of
parties

In the US: The conceptual basis for the exercise


of jurisdiction has shifted from territorial power to
considerations of MINIMUM CONTACTS and
FUNDAMENTAL FAIRNESS.
1. International Shoe Co. v. Washington
(1945): Due process only requires that the
defendant who is not present within the
territory of the forum have minimum contacts
with it such that the maintenance of the suit
does not offend traditional notions of fair
play and substantial justice.
2. Mullane v. Central Hanover Bank & Trust
Co. (1950): The standard for adequate
notice is WON it is reasonably certain to
inform those affected or, where conditions
do not reasonably permit such notice, WON
the form chosen is not substantially less
likely to bring home notice than other of the
feasible and customary substitutes.
3. Shaffer v. Heitner (1977): The minimum
contacts and fundamental fairness test
should be satisfied regardless of whether
the proceedings are in rem, quasi in rem, or
in personam, and the minimum contacts
1

legal

Actions in personam are directed against specific


persons and seek personal judgments.
2
Actions in rem or quasi in rem are directed against
the thing or property or status of a person and seek
judgments with respect thereto as against the whole
world and against particular persons, respectively.

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PRIVATE INTERNATIONAL LAW

I.

b. institution of legal proceedings wherein


the courts power over the property is
recognized and made effective
2. Basis of jurisdiction: the presence of the
property within the territorial jurisdiction of
the forum

must exist among the forum, defendant, and


the cause of action.
4. Long-arm statutes: statutes that allow the
forum state to exercise jurisdiction over a
non-resident defendant, provided that the
prospective
defendant
has
sufficient
minimum contacts with the forum state.

III. Ways of Dealing with Jurisdiction in a


Conflicts Problem
A. Dismiss the Case
Grounds
1. For Lack of jurisdiction over the subject
matter or over the parties to the suit
2. On the ground of FORUM NON
CONVENIENS
Doctrine of Forum Non Conveniens
(Asked in 94, 04 BAR EXAMINATIONS)
1. This literally means the forum is
inconvenient.
2. This doctrine requires the court to dismiss
the case on the ground that the controversy
may be suitably tried elsewhere.
The doctrine of forum non conveniens
should NOT be used as a ground for a
motion to dismiss because Sec. 1, Rule
16 of the Rules of Court does not
include said doctrine as a ground.
The propriety of dismissing a case
based on the principle of forum non
conveniens
requires
a
factual
determination; hence it is more properly
considered as a matter of defense.
(Bank of America NT&SA v. CA, 2003)
3. Reasons for applying forum non conveniens:
a. To prevent abuse of courts processes
b. Burdensome on the court or taxpayers
c. Local machinery is inadequate to
effectuate a right (no way for the court to
secure evidence and attendance of
witnesses)
d. Avoid global forum shopping
B. Assume Jurisdiction
1. Proceed to Characterization (discussed
under CHARACTERIZATION)
2. Apply either: Forum Law or Foreign Law (will
be discussed more on the CHOICE OF
LAW)
When the court assumes jurisdiction, it
may apply forum law or foreign law.
Forum law should be applied whenever
there is good reason to do so because
forum law is the basic law.

Chapter II. JURISDICTION

Factors which justify the application of forum law


1. A specific law of the forum decrees that
internal law should apply.
2. The proper foreign law was not properly
pleaded and proved.
3. The case falls under any of the exceptions
to the application of foreign law:
a. The foreign law is contrary to an
IMPORTANT PUBLIC POLICY of the
forum
b. The foreign law is PROCEDURAL in
nature
c. The foreign law is PENAL in nature
d. The case involves real or personal
PROPERTY
SITUATED
IN
THE
FORUM (Lex Situs)
e. The issue involved in the enforcement of
foreign
claim
is
FISCAL
or
ADMINISTRATIVE
f. The foreign law is contrary to GOOD
MORALS (contra bonus mores)
g. The application of foreign law will work
UNDENIABLE INJUSTICE to citizens of
the forum
h. The application of foreign law might
endanger the VITAL INTERESTS of the
state

430
PRIVATE INTERNATIONAL LAW

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Chapter III. CHOICE of LAW

Chapter III. Choice of Law

APPROACHES TO CHOICE OF LAW


A. TRADITIONL; APPROACHES
B. MODERN APPROACHES

CHOICE OF LAW
The determination by the court of whether to
apply forum law or foreign law
The factors that justify exercise of judicial
jurisdiction may be the same factors used to
determine choice of law.
BUT, jurisdiction and choice of law are two
different concepts. A court may exercise
jurisdiction but apply foreign law OR not
exercise jurisdiction, although its internal law
may be applied as the proper law.

I.

Approaches to Choice of Law

Ideally, all choice of law theories should advance


the notions of JUSTICE and PREDICTABILITY.
A.

Traditional
Approaches:
emphasize
simplicity, convenience and uniformity

1. Vested Rights Theory


An act done in a foreign jurisdiction
gives rise to the existence of a right if
the laws of that state provide so. This
right vests in the plaintiff and he carries
it with him to be enforced in any forum
he chooses to bring suit
The applicable law is the law of the
place of occurrence of the LAST ACT
necessary to complete the cause of
action.
If the place of the last act creates no
legal right, there is nothing for the forum
to recognize and enforce, even if its own
law creates such a right.
Illustration: Carroll is an employee of
Alabama Corp. Both EE and ER are
residents of Alabama. Carroll was
injured in the course of work in
Mississippi due to negligent conduct of
co-employees in Alabama. Mississippi
bars recovery. Alabama makes ER
liable. Carroll files suit in Alabama.
There can be no recovery in this case.
Although it is claimed that the negligent
conduct was done in Alabama, the law
of Mississippi should be applied which
bars recovery since the injury was
sustained in that state and such injury
created the cause of action. It is the law
of the place of the LAST ACT necessary
to complete the cause of action.

2. Cooks Local Law Theory


Treats conflicts cases as a purely
domestic case that does not involve a
foreign element
Criticism: narrow-minded by favoring an
exaggerated local policy
3. Cavers Principle of Preference
Choice of law should be determined by
considerations of justice and social
expediency and should not be the result
of mechanical application of the rule or
principle of selection.
B. Modern Approaches: relate to reaching
appropriate results in particular cases
1. Place of the Most Significant Relationship
Factual contacts evaluated depending
on their relative importance and
relevance to the issue at hand
Identifies a plurality of factors that must
be considered in the light of choice of
law principles
Among these factors are: needs of the
interstate and international system,
relevant policies of the concerned and
interested states, justified expectations
of the parties, basic policies underlying a
particular field of law, certainty,
predictability and uniformity of result and
ease in the determination of law to be
applied
Criticism: No standard to evaluate
significance of each contact
In applying the grouping of contacts theory,
courts, instead of regarding as conclusive
the intention of the parties or the place of the
making or performance, lay emphasis rather
on the law of the place which has the most
significant contacts with the matter in
dispute. (Auten vs. Auten, 1954)
2. Interest Analysis
Looks at the policy behind the laws of
the involved states and the interest each
state has in applying its own law.
Factual contacts alone do not determine
outcome of the case UNLESS they
reflect a state policy which would be
advanced by the application of the
substantive state law.

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PRIVATE INTERNATIONAL LAW

I.

(Alabama Great Southern Railroad v.


Carroll, 1892)
Criticism: Failure to resolve conflicts
cases with considerations of policy and
fairness as it is too technical.

Court determines whether the case


involves APPARENT, TRUE or FALSE
conflict.
a. True Conflict If there is an
apparent conflict, the court takes a
second look on the policies and
interests of each state. If both have
real interests in applying their law,
then apparent conflict is a true
conflict.
b. False Conflict If only one state has
an actual interest in having its law
applied and the failure to apply the
other state law will not impair its
policy

Criticisms:
a. Conflicts cases were ordinarily
concerned only with private and not
governmental interests.
b. ii.Not all state legislatures publish
reports that explain background and
purpose of laws, thus courts are left
to speculate.

Illustration:
B and J, NY residents, met a car
accident in Ontario thru Js fault. B sued
J in NY for damages. Ontario bars
recovery under a guest statute. NY does
not have a similar rule. B should be
allowed to recover. NY had a greater
and more direct interest than Ontario.
NYs policy is to afford compensation to
a guest tortfeasor host while Ontarios
policy is to prevent fraudulent collusion
to the prejudice of Ontario defendants
and insurance companies. Ontario had
no interest in denying a remedy to a NY
guest against a NY host. (Babcock vs.
Johnson, 1963)

3. Comparative Impairment
Court weighs conflicting interests and
apply the law of the state whose interest
would be more impaired it its laws were
not followed
4. Trautmans Functional Analysis
Looks into the general policies of the
state beyond those reflected in its
substantive law and to policies and
values relating to effective and
harmonious intercourse between states.
Looks at the policies and considers their
relative weight (policy-weighing)
Considers whether the law of a state
reflects an emerging or regressing
policy

Chapter III. CHOICE of LAW

5. Leflars Choice Influencing Considerations


(BOPIS)
a. Predictability of results;
b. Maintenance
of
interstate
and
international order;
c. Simplification of the judicial task;
d. Application of the better rule of law;
e. Advancement
of
the
forums
governmental interests

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PRIVATE INTERNATIONAL LAW

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Chapter IV. CHARACTERIZATION

Chapter IV. Characterization


TYPES OF CHARACTERIZATION
DEPECAGE

CHARACTERIZATION (Asked in 94)


The process by which a court at the
beginning of the choice of law process
assigns a disputed question to an area
of substantive law.

I.

Types of Characterization

A. Subject-Matter Characterization

Classification of a factual situation into a


legal category
Illustration: Principal authorizes a person to
act as his agent in another country. Agent
commits a negligent act. The law that will
determine the principals liability depends on
the courts characterization of the case as:
a.
b.

Contractual: Law of the place where the


contract of agency was entered into; or
Tortious: Law of the place where tortious
conduct or injury occurred

B. Substance-Procedure Dichotomy

Classification of a factual situation into either


procedural or substantive
It directs the court to the extent it will apply
foreign law.

II. Depecage

1. If issue substantive: court MAY apply


foreign law or forum law
2. If issue procedural: court will apply forum
law
REASON: It would be too burdensome
and inconvenient on the part of the
forum to apply procedural laws of
another country
3. Two issues whose classification (as
procedural or substantive) is debatable:
a. Statute of Frauds

Substantive: if it forbids the creation of


obligation (e.g., void contracts)
Procedural: if it forbids the enforcement
of the obligation(e.g., unenforce-able
contracts, Art. 1403 of Civil Code)

b. Statutes of Limitations

Procedural: traditionally classified as


procedural because they only bar the
legal remedy without impairing the
substantive right involved.
Substantive: when limitation is directed
to a newly created liability so
specifically as to warrant saying that it
qualified the right. (SPECIFICITY TEST)

Literally means to dissect


Different aspects of a case involving a
foreign element may be governed by
different systems of law.
Depecage is the process of cutting up the
case issue by issue and applying the
pertinent laws to the different aspects
Merits of Depecage: Allows the other
relevant interests of the parties to be
addressed; permits the court to arrive at a
functionally sound result without rejecting
the methodology of the traditional approach.

Illustration: A man dies intestate domiciled in


State A and with movable properties in State B.
The conflict rules of State A refer to the laws of
the domicile to determine how the mans estate
should be divided. The intestate law of State B
gives the widow a definite share in the estate of
the deceased. But the determination of the WON
the woman who claims a share in the estate is a
wife is referred to family law, not the laws of
succession.
Application of Depecage in the case:
Law governing movable properties and
successional rights of spouse: embody
substance of claim
Validity of marriage: affects solution
because it answers a preliminary or
incidental question.

433
PRIVATE INTERNATIONAL LAW

I.
II.

A law on prescription of actions is sui


generis in Conflict o Laws in the sense
that it may be viewed either as
procedural or substantive, depending on
the characterization given such a law.
(Cadalin v. POEA Administrator, 1994)
BORROWING STATUTE: (Asked in 94
BAR EXAMINATIONS)

Bars the filing of a suit in the forum


if it is already barred by the statute
of limitations in the place where the
cause of action arose

Characterization of a statute into


procedural or substantive becomes
irrelevant when country of forum
has Borrowing Statute

Many
states
including
the
Philippines have passed borrowing
statutes
to
eliminate
forumshopping

Section 48 of Code of Civil


Procedure: If the laws of the state
or country where the cause of
action arose, the action is barred, it
is also barred in the Philippine
Islands.

Chapter V. RENVOI

Chapter V. Renvoi
(Asked in 97 BAR EXAMINATIONS)
I.
II.

DEFINITION
WAYS OF DEALING WITH RENVOI

I.

Definition

A. Definition
A procedure whereby a jural matter
presented is referred by the conflict of
laws rules of the forum to a foreign
state, the conflict of laws rule of which,
in turn, refers the matter to the law of the
forum or third state.
Does not apply to a false conflict
problem
Remission: reference is made back to
the law of the forum
Transmission: reference to a third state
B. Usefulness
Used to avoid unjust results
C. Criticisms
1. If both courts follow the same theory, there
would be no end to the case since the courts
would be referring it back to each other.
2. Courts may be unnecessarily burdened with
the task of identifying the choice of law rules
of another state.
Illustration:
STATE A

STATE B

Internal
Law

Internal
Law

Conflict
Laws

Conflict
Laws

There is Renvoi through Remission.

II. Ways of Dealing with Renvoi


A. Reject the Renvoi
Conflict Rules of the forum court refer
the case only to the INTERNAL LAW of
another state.
Internal Law of the foreign state is
applied by the forum court.

B. Accept the Renvoi


The court may refer not just to another
states internal law but to the whole law
which includes choice of law rules
applicable in multi-state cases.
Internal Law of the forum court or a third
state is applied.
Has the same effect as applying
Single Renvoi
Aznar vs. Garcia, (1963): Art. 16 of the
Philippine Civil Code provides that the
national law of the decedent governs the
validity of his testamentary dispositions.
Such national law means the conflict of
laws of the California Code, which
authorizes the reference or return of the
question to the law of the testators
domicile. The conflict of laws rule in
California refers back the case, when a
decedent is not domiciled in California,
to the law of his domicile (the Philippines
in CAB). The Philippine court must apply
its own law as directed in the conflict of
laws rule of the state of the decedent.
C. Desistance or Mutual Disclaimer
The forum court upon reference to
another states law sees that such law is
limited in application to its own national
and has no provision for application to a
non-national.
The same result as the acceptance of
renvoi but the process used by the
forum court is to desist applying the
foreign law.
Internal Law of the forum court or a third
state is applied.
D. Foreign Court Theory
The forum court would assume the same
position the foreign court would take were it
litigated in the foreign state.

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PRIVATE INTERNATIONAL LAW

CIVIL LAW REVIEWER

Chapter VI. NOTICE and PROOF of FOREIGN LAW

Chapter VI. Notice and Proof of Foreign


Law
I.
II.

PROOF OF FOREIGN LAW


EXCEPTIONS TO THE APPLICATION
FOREIGN LAW

I.

Proof of Foreign Law

OF

General Rule: Foreign law must be pleaded and


proved as a fact
The party whose cause of action or
defense depended on the foreign law
has the burden of proving the foreign
law.
Exception: Court may take judicial notice of
foreign laws which are already within its
ACTUAL KNOWLEDGE such as when:
they are well and generally known OR
they have been actually ruled upon in
other cases before it and none of the
parties concerned claim otherwise
(PCIB v. Escolin, 1974)
Foreign law proved by
1. an OFFICIAL PUBLICATION of the law; OR
2. a COPY of the law attested by the officer
having the legal custody of the record, or by
his deputy.
If such record is not kept in the
Philippines, it must be accompanied by
a certificate that such officer has the
custody
3 Alternatives in case of failure to plead and
prove foreign law
1. DISMISS the case for failure to establish a
cause of action
2. Apply FORUM LAW, conclude that parties
acquiesce to its application.
3. PROCESSUAL PRESUMPTION (Asked in
85, 86, 87, 88,89, 90, 91, 92, 93 and
94)
Forum presumes that the foreign law is
the same as the forum law.
Factors in deciding whether to apply
domestic law or decide against the party who
has the burden of proving the contents of
foreign law
1. degree of PUBLIC INTEREST involved
2. ACCESSIBILITY of the foreign law
materials to the parties
3. probability that the plaintiff is merely
FORUM-SHOPPING
4. SIMILARITIES between the forum law and
foreign law

II. Exceptions to the Application of


Foreign Law
1. Local law expressly so provides
2. Failure to plead and prove the foreign law or
judgment
3. Exceptions to the rule of comity (4P-FAGUV):
o The foreign law is contrary to an
IMPORTANT PUBLIC POLICY of the
forum
o The foreign law is PROCEDURAL in
nature
o The foreign law is PENAL in nature
o The case involves real or personal
PROPERTY
SITUATED
IN
THE
FORUM (Lex Situs)
o The issue involved iin the enforcement
of foreign claim is FISCAL or
ADMINISTRATIVE
o The foreign law is contrary to GOOD
MORALS (contra bonus mores)
o The application of foreign law will work
UNDENIABLE INJUSTICE to citizens of
the forum
o The application of foreign law might
endanger the VITAL INTERESTS of the
state

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Chapter VII. Nationality


I.
II.
III.
IV.

DETERMINATION OF NATIONALITY
PROCEDURE FOR NATURALIZATION
LOSS OF PHILIPPINE CITIZENSHIP
PROBLEMS IN APPLYING THE NATIONALITY
PRINCIPLE

Most civil law countries such as the


Philippines follow the NATIONAL LAW
THEORY: (Asked in 98, 04, BAR
EXAMINATIONS)

It is the nationality or citizenship of the


individual, which regulates the following:
Civil status
Capacity
Condition
Family rights and duties
Laws on Succession
Capacity to succeed

According to the Supreme Court, it is a


conflict of laws theory by virtue of which
jurisdiction over the particular subject matter
affecting a person is determined by the
latters nationality. (Ellis vs. Republic, 1963)

In the Philippines, the nationality principle is


expressed in Art. 15 of the Civil Code as
follows:

Article 15, Civil Code. Laws relating to family rights


and duties, or to status, condition and capacity of
persons are binding upon citizens of the Philippines
even though living abroad.

Chapter VII. NATIONALITY

The Constitution enumerates


FILIPINO CITIZENS

who

are

Sec.1, Art IV. The following are citizens of the


Philippines:
(1) Those who are citizens of the Philippines at the
time of the adoption of this Constitution;
(2) Those whose fathers or mothers are citizens of
the Philippines;
(3) Those born before January 17, 1973, of Filipino
mothers, who elect Philippine citizenship upon
reaching the age of majority; and
(4) Those who are naturalized in accordance with
law.

1. Natural-Born Citizens
DEFINITION: Those who are citizens of
the Philippines without having to perform
any act to acquire or perfect citizenship.
Two principles:
JUS SOLI looks to the PLACE of
BIRTH to
determine ones
nationality
JUS SANGUINIS
- means rule of DESCENT OR
BLOOD
- Principle
followed
in
the
Philippines
2. Citizens by Naturalization
NATURALIZATION: confers to an
alien a nationality after birth by any
means provided by law.
In the Philippines, this is done by
judicial method under CA No. 73 as
amended by RA 530.

II. Procedure for Naturalization


I.

Determination of Nationality

Each state has the prerogative and authority to


determine by its own municipal law who are its
nationals or citizens.
The Hague Convention on Conflict of National
Laws states this principle in the following
provisions:
1. Article 1. It is for each State to determine
who are its nationals. This law shall be
recognized by other States insofar as it is
consistent with international convention,
international customs, and the principles of
law generally recognized with regard to
nationality.
2. Article 2. Any question as to whether a
person possesses the nationality of a
particular State shall be determined in
accordance with the law of that State.

[NOTE: N.B. This is a proper subject matter of


Political Law but is important to know as
background if the Conflicts question asks you to
decide the Choice of Law involving nationality.
This was asked in the bar exams as part of
PRIL.]
Qualifications for Naturalization
1. Must not be less than 21 years old on the
date of the hearing of the petitions
2. Resided in the Philippines for a continuous
period of not less than 10 years
EXCEPTION: may be reduced to 5 years in
the ff. cases:
a. Honorably held office under the
Government or any of its subdivisions
b. Established a new industry or introduced
a useful invention
c. Married to a Filipino woman/man

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d. Engaged as a teacher in a public/private


school, not exclusive for a particular
nationality, for 2 years
e. Born in the Philippines
3. Of good moral character, believes in the
Constitution, and conducted himself in a
proper and irreproachable manner during
the entire period of his residence
4. Own real estate in the Phils. worth not less
than P5,000 or have a lucrative trade,
profession or lawful occupation
5. Must be able to speak and write English or
Spanish and any one of the principal
Philippine languages
6. Enrolled his minor children in any of the
public or private schools recognized by the
Bureau of Private Schools where Phil.
history, government and civics are taught
during the entire period of the residence
required of him, prior to the hearing of his
petition
Disqualifications for Naturalization
1. Convicted of a crime involving moral
turpitude
2. That the applicants state of origin does
not grant reciprocal rights to Filipino
citizens at the time of the hearing of his
application
Procedure for Naturalization
1. DECLARATION OF INTENT 1 year prior to
the filing of the petition, unless the applicant
is exempted
EXEMPTIONS:
a. Persons born in the Philippines and who
have received their primary and
secondary
education
in
schools
recognized by the Government here and
are not limited to any race or nationality
b. Resided continuously in the Philippines
for 30 years or more
c. Widow and minor children of an alien
who declared his intention to become a
citizen and dies before he is actually
naturalized
2. PETITION FOR NATURALIZATION
3. PUBLICATION in the Official Gazette or
newspaper of general circulation
4. HEARING
5. If the petition is approved, there will be a
REHEARING
two
years
after
the
promulgation of the judgment awarding
naturalization
6. Taking of the OATH of ALLEGIANCE

Chapter VII. NATIONALITY

III. Loss of Philippine Citizenship


A Filipino citizen may lose his citizenship in the
following ways:
1. By NATURALIZATION in foreign countries;
2. By
EXPRESS
RENUNCIATION
of
citizenship;
3. By
subscribing
to
an
OATH
of
ALLEGIANCE to support the constitution or
laws of a foreign country upon reaching 21
years of age or more, subject to certain
exceptions;
4. By rendering service to, or accepting
COMMISSION IN THE ARMED FORCES of
a foreign country, subject to certain
exceptions;
5. By having been declared by competent
authority, a DESERTER of the Phil. armed
forces in time of war, unless pardoned or
granted amnesty
6. A WOMAN, who upon her MARRIAGE TO
A FOREIGNER, if by virtue of the laws in
force in her husbands country, she
ACQUIRES HIS NATIONALITY; and
7. By CANCELLATION of the certificate of
naturalization for the ff. reasons:
i. Certificate was obtained fraudulently or
illegally
ii. Within 5 years of issuance of certificate,
returns to his native country or foreign
country to establish a permanent
residence therein;
- Remaining for more than 1 year in
his native country; or
- Two years in any foreign country,
considered prima facie evidence of
intention of taking up his permanent
residence
iii. Petition made on an invalid declaration of
intention
iv. Minor children failed to graduate from a
public or private schools recognized by
the Bureau of Private Schools where Phil.
history, government and civics are
taught, through the fault of their parents
v. Naturalized citizens has allowed himself
to be used as a dummy
NOTE: A judgment directing the issuance of
certificate of NATURALIZATION IS A MERE
GRANT OF POLITICAL PRIVILEGE, and that
neither estoppel nor res judicata may be invoked
to bar the State from initiating an action for its
cancellation

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Chapter VII. NATIONALITY

IV. Problems in Applying the Nationality


Principle
1. Dual or Multiple Citizenship
Since each state determines its own
nationals, it is possible that an individual
may be CLAIMED AS A NATIONAL
OF TWO OR MORE STATES.
In the case of Nottebohm (1955), the
ICJ applied the principle of EFFECTIVE
NATIONALITY to determine the rights
of an individual who may claim multiple
nationality
DEFINITION: a genuine bond of
attachment between the individual
and the State
NOTE:
The
Philippine
Constitution
discourages dual or multiple citizenship as
inimical to the national interest and shall be
dealt with by law.
2. Statelessness
Two senses:
a. DE JURE statelessness: A person has
been stripped of his nationality by his
former government without having an
opportunity to acquire another
b. DE FACTO statelessness: A person
possessed of a nationality but whose
country does not give him protection
outside its own territory (refugees)

NOTE: As long as stateless persons possess all


of the qualifications, they can be naturalized as
Philippine citizens without the requirement of
reciprocity.

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NOTE: the 1951 Geneva Convention of the


Status of Refugees and the UN Conference on
the Elimination or Reduction of Future
Statelessness was convened to reduce
statelessness. It provides:
Conditions such as marriage, divorce,
adoption,
naturalization,
expatriation,
would not cause an individual to lose his
nationality upon the risk of being stateless
States cannot deprive their nationals of
their identity as punishment or as
instrument of discrimination
Jus sanguinis country shall grant its
nationality to a person born within its
territory, if he would otherwise be stateless
Jus soli country shall grant its nationality
to a person who would otherwise be
considered stateless when one of his
parents is a citizen of the contracting
state.

CIVIL LAW REVIEWER

Chapter VIII. DOMICILE

I.
II.

DOMICILE
COMPARATIVE MERITS AND DEMERITS OF
DOMICILE AND NATIONALITY

I.

Domicile

A. Municipal Law/Philippine Law Definition:


PERSON
Natural persons

Juridical persons

DOMICILE
Art. 50. For the exercise
of civil rights and the
fulfillment
of
civil
obligations, the domicile
of natural persons is the
PLACE
OF
THEIR
HABITUAL REDENCE.
Domicile is determined
by the LAW CREATING
OR RECOGNIZING IT.
In the absence
thereof, place where
legal representation
or place of business
is.

CONFLICTS of LAW DEFINITION


(Restatement):
The place with which a person has a
SETTLED CONNECTION for certain
legal purposes, either because:
His home is there; or
Place is assigned to him by law
To acquire a domicile, there must be a
concurrence of TWO ELEMENTS:
i. INTENTION to make it ones
domicile; and
ii. PHYSICAL PRESENCE
Residence, on the other hand, simply
requires bodily presence of an inhabitant
in a given place.

B. General Rules on Domicile


1. No person shall be without domicile
A persons domicile of origin prevails
until he acquires anew domicile
2. A person cannot have two simultaneous
domiciles for a given purpose or a given
time under the law of a particular state
3. Domicile establishes a connection
between a person and a particular
territorial unit
4. The burden of proving a change of
domicile is on the person alleging it

C. Kinds of Domicile
1. Domicile of Origin
A persons DOMICILE AT BIRTH
LEGITIMATE CHILD
Follow the FATHERs
domicile

ILLEGITIMATE CHILD
Follow the MOTHERs
domicile

2. Domicile of Choice
i. A
persons
VOLUNTARY
DOMICILE
The place freely chosen by a
person sui juris (of full age and
capacity)
ii. To acquire it, there must be a
concurrence of:
ACTUAL RESIDENCE; and
ANIMO MANENDI - intent to
make it ones home
DISTINCTION
As
to:
condition
necessary for
its
abandonment

As to: capacity
for revival

Domicile of
Origin
Stronger
presumption in
favor
of
its
continuance
NOT
lost
by
mere
abandonment
and remains until
replaced by a
domicile
of
choice
Presumed to be
revived once the
domicile
of
choice is given
up and before a
new
one
is
acquired
(reverter
or
revival doctrine)

Domicile of
Choice
As compared to
domicile
of
origin,
less
presumption in
favor
of
its
continuance

Deemed
extinguished by
removal
of
intent even prior
to
the
acquisition of a
new domicile

3. Constructive Domicile
Domicile assigned by operation of
law to persons legally incapable of
choosing their own domicile:
Minors
Domicile
automatically
changes when their fathers
domicile changes
Take the domicile of their
mother upon their fathers
death
Mentally disabled
If capable of understanding
his
act
and
its
consequences, he may be
able to acquire a domicile of
choice although he may not

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Chapter VIII. Domicile

CIVIL LAW REVIEWER

be considered competent
enough to enter into all
aspects of civil life.
Married women

D. Special Problems in Domicile


1. People kept under physical or legal
compulsion
Military personnel
Prisoners
Persons with disabilities who are
confined in institutions

Chapter VIII. DOMICILE

b.

suitable for countries with a federal


system

2. Demerits
a. not ascertainable without first resorting
to the courts to establish whether or not
there is animo manendi
b. concept not clear-cut--- differs widely
with some states distinguishing between
residence and domicile or attributing
different meanings of domicile for
different purposes
c. if domicile of origin given much weight,
connection attenuated

MODERN VIEW: A person under


compulsion should not be barred from
proving that he intended to establish
permanent abode in the same place,
even after compulsion has been
removed
2. Married women seeking to acquire a
separate domicile from her husband
Art. 69, Family Code. The husband and wife shall fix
the family domicile. In case of disagreement, the court
shall decide. The court may exempt one spouse from
living with the other if the latter should live abroad or
there are other valid and compelling reasons for such
exemption

MODERN VIEW: Dispenses with any


presumption that the wifes domicile is
the same as her husbands.

II. Comparative Merits and Demerits of


Domicile and Nationality
A. Nationality
1. Merits
a. logical since lawmakers considered the
qualities of its citizens in making the
laws
b. easily verifiable from documents
2. Demerits
a. does not provide solution with respect to
stateless persons
those with multiple nationalities
states with diverse legal systems
b. persons ties to his nation may be so
attenuated if he has lived in another
country most of his life
B. Domicile
1. Merits
a. genuine linkadequate basis for him to
exercise rights therein and the state to
impose duties on him

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PRIVATE INTERNATIONAL LAW

Chapter IX. Principles


Status and Capacity

Chapter IX. PRINCIPLES on PERSONAL STATUS and CAPACITY

on

Personal

I.
II.
III.
IV.
V.
VI.

DEFINITION
BEGINNING AND END OF PERSONALITY
ABSENCE
NAME
AGE OF MAJORITY
CAPACITY

I.

Definition

Includes CONDITION and CAPACITY and


more specifically embraces:
1. beginning and end of human personality
2. juridical capacity
3. capacity to act
4. family relations
5. succession

Applicable Law
1. If Filipino: Philippine Law
2. If Alien: Law of nationality or domicile,
depending on the law applicable in the
aliens country
NOTE:
1. Laws relating to Family rights and
duties, Status, Condition or Legal
capacity of persons are binding on
citizens of the Philippines, even though
living abroad [Art. 15, CC]
2. Status, once established by the personal
law of the party, is given universal
jurisdiction. Hence, aliens can sue and
be sued in our courts subject to
Philippine procedural law even on
matters relating to their status, but the
law to be applied is their personal law.

II. Beginning and End of Personality


A. Governing Law
The determination of the exact moment
personality begins is governed by the
PERSONAL LAW of the individual.
B. Rule under Philippine Law
1. Beginning of personality: BIRTH
a. Birth determines personality; but the
conceived child shall be considered born
for all purposes that are favorable to it,
provided it be born later with the
conditions specified by Art. 41, FC. [Art.
40, FC]
b. For civil purposes, the fetus is
considered born if it is alive at the time it
is delivered from the mothers womb.

However, if the fetus had an intrauterine life of less than 7 months, it is


not deemed born if it dies within 24
hours after its complete delivery from
the maternal womb. [Art. 41, FC]
2. End of personality: DEATH
a. A declaration of death issued by a
competent court is considered valid for
all purposes.
b. Upon death, some of the decedents
rights and obligations are totally
extinguished, while others are passed
on to his successors

III. Absence
A. Governing Law
Determined by the PERSONAL LAW of the
individual
B. Three Ways of Dealing with Absence
1. Rebuttable Presumption that a person is
dead when he has been absent for a
number of years
2. Judicially Instigated and established which
results in legal effect similar to those of
death
3. A Judicial Decree shall have to be issued
declaring the person dead before legal
effects of death take place
NOTE: Philippine laws follow the rebuttable
presumption.

C. Rule under Philippine Law


1. Ordinary Absence [Art. 391, CC]
a. After the absence of 7 years, it being
unknown whether the absentee still
lives, s/he shall be presumed dead for
all purposes.
b. EXCEPTIONS
i. For the purpose of opening his
succession,
the
absentee
is
presumed dead after 10 years.
ii. If s/he disappeared after the age of
75 years, 5 years will be sufficient
c. Computation of Period
The computation of the 7 year period
begins not from the declaration of
absence, but from the date on which the
last news concerning the absentee is
received [Jones v. Hortiguela, 44 Phil
149]

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Chapter IX. PRINCIPLES on PERSONAL STATUS and CAPACITY

2. Extraordinary Absence [Art. 391, CC]


The following are presumed dead for ALL
purposes, including the division of estate
among the heirs: (VA-A-D)
a. A person on board a Vessel during a
sea voyage, or an Aeroplane which is
missing, who has not been heard of for
4 years since the loss of the vessel or
aeroplane;
b. A person in the Armed forces who has
taken part in war, and has been missing
for 4 years;
c. A person who has been in Danger of
death under other circumstances and
existence has not been known for 4
years. [Art. 391, CC]

VI. Capacity
A. General Rule
Determined by PERSONAL LAW;
attaches to a person wherever he is

it

B. Exceptions
1. Liability on Tortsubject to the law of the
place of tort
2. Restrictions on the contracting capacity
of a married womanin some jurisdictions,
subject to the law governing the personal
relations between spouses

3. Rule for purposes of remarriage [Art. 41, FC]


a. For purposes of remarriage, the spouse
present must first institute a summary
proceeding for the declaration of
presumptive death of the absentee
spouse, without which the subsequent
marriage is void ab initio.
b. The periods under Arts. 390 and 391,
CC have been reduced to 4 and 2 years.

IV. Name
A. Governing Law
Determined by PERSONAL LAW

V. Age of Majority

A. Governing

LawDetermined
by
PERSONAL LAW
B. Age of Majority under Philippine Law
Age of majority is 18 years old [RA 6809]

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PRIVATE INTERNATIONAL LAW

B. Rule under Philippine Law


1. No person can change his name or surname
without judicial authority [Art. 376, CC]
2. Recognized justifiable causes for change of
name:
a. when the name is ridiculous, tainted with
dishonour, or is extremely difficult to
write or pronounce
b. when the request for change is a
consequence of change of status
c. when the change is necessary to avoid
confusion
d. a sincere desire to adopt a Filipino name
to erase signs of a former nationality
which unduly hamper social and
business life.
NOTE: RA 9048 (Change of first name and
correction of clerical/typographical errors)

Chapter X. FAMILY RELATIONS

i.

Chapter X. Family Relations


I. MARRIAGE
II. DIVORCE AND SEPARATION
III. ANNULMENT
AND
DECLARATION
NULLITY
IV. PARENTAL RELATIONS
V. ADOPTION

I.

OF

Marriage

ii.

iii.

iv.

A. Definition
Art. 1, FC. Marriage is a special contract of
permanent union between a man and a woman
entered into in accordance with law for the
establishment of conjugal and family life. It is the
foundation of the family and an inviolable social
institution whose nature, consequences, and incidents
are governed by law and not subject to stipulation,
except that marriage settlements may fix the property
relations during the marriage within the limits provided
by this Code.

v.

B. Extrinsic Validity of Marriage


1. Formal Requisites of Marriage under
Philippine Law [Art. 3, FC]
a. authority of the solemnizing officer
b. valid marriage license except in the
cases provided for in Chapter 2 of Title I
c. a marriage ceremony which takes place
with the appearance of the contracting
parties before the solemnizing officer
and their personal declaration that they
take each other as husband and wife in
the presence of not less than two
witnesses of legal age.
2. Determination of Extrinsic Validity
Art. 26, FC. All marriages solemnized outside the
Philippines in accordance with the laws in force in the
country where they were solemnized, and valid there
as such, shall also be valid in this country. xxx
Art. 2, Hague Convention. Formal requirements for
marriage are governed by the law of the state of
celebration.

a. GENERAL RULE
LEX LOCI CELEBRATIONIS (law of the
place of celebration) [Art. 26, FC; Art. 2,
Hague Convention on Celebration and
Recognition of the Validity of Marriages]
b. EXCEPTIONS: The following marriages
are void even if valid in the country
where celebrated [Art. 26, FC]:

vi.

vii.

those contracted by any party below


18 years of age even with the
consent of parents or guardians [Art.
35(1), FC]
bigamous
or
polygamous
marriages not falling under Art. 41,
FC [Art. 35 (4), FC]
those contracted thru mistake of
one contracting party as to the
identity of the other [Art. 35(5), FC]
those subsequent marriage without
recording in the civil registry the
judgment
of
annulment
or
declaration of nullity, partition and
distribution of properties and the
delivery
of
the
childrens
presumptive legitimes [Art. 35(6),
FC]
a marriage contracted by any party
who, at the time of the celebration,
was psychologically incapacitated
to comply with the essential marital
obligations of marriage, even if such
incapacity becomes manifest only
after solemnization [Art. 36, FC]
incestuous marriages [Art. 37, FC]
marriages between ascendants
and ascendants of any degree,
whether
legitimate
or
illegitimate; and
marriages between brothers and
sisters, whether of the full or
half-blood
void marriages for reasons of
public policy [Art. 38, FC]
marriages between collateral
blood
relatives,
whether
legitimate or illegitimate, up to
th
the 4 civil degree
marriages between step-parents
and step-children.
marriages between the adopting
parent and adopted child
marriages between the surviving
spouse of the adopting parent
and the adopted child
marriages between the surviving
spouse of the adopted child and
the adopter
marriages between an adopted
child and a legitimate child of
the adopter
marriages between adopted
children of the same adopter
marriages
between
parties
where one, with the intention to
marry the other, killed that other
person's spouse, or his or her
own spouse.

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NOTE: These exceptions put into issue the


capacity of the parties to enter into the marriage
and therefore relate to the substantive
requirement for marriage. Since the personal law
of the parties, e.g. the national law of Filipinos,
governs the questions of intrinsic validity of
marriages between Filipinos abroad, the above
enumerations are exceptions to lex loci
celebrationis precisely because they are
controlled by lex nationalii

C. Intrinsic Validity of Marriage [refers to


capacity of a person to marry]
1. Intrinsic validity is determined by the parties
personal law, which may be their
domiciliary or national law.
NOTE:
a. Laws relating to Family rights and
duties, Status, Condition or Legal
capacity of persons are binding on
citizens of the Philippines, even though
living abroad [Art. 15, NCC]
b. When either or both of the contracting
parties are citizens of a foreign country,
it shall be necessary for them before a
marriage license can be obtained to
submit a certificate of legal capacity to
contract marriage, issued by their
respective diplomatic or consular
officials [Art. 21, FC]
c. Marriages enumerated under Art. 26(2),
FC are void even if valid in the country
where celebrated.
2. Intrinsic requirements of marriage under
Philippine Law [Art. 2, FC]
a. legal capacity of the contracting parties
who must be male and female; and
b. consent freely given in the presence of
the solemnizing officer
3. The Hague Convention on Validity of
Marriages allows a contracting state to
refuse recognition of the marriage in the ff.
3
Cases [CR-M ]:
a. one of the parties did not freely Consent
b. spouses were Related, by blood or
adoption
c. one of the parties did not have the
Mental capacity to consent
d. one of the spouses was already Married
e. one of the parties has not attained the
Minimum age, nor acquired the
necessary dispensation

Chapter X. FAMILY RELATIONS

NOTE:
1. Rule on Proxy Marriages (Asked in 85-89
BAR EXAMINATIONS)
a. proxy marriages, where permitted by the
law of the place where the proxy
participates in the marriage ceremony,
are entitled to recognition in countries
adhering to the lex loci celebrationis
rule, at least insofar as formal validity is
concerned
b. internal Philippine law, however, does
not sanction proxy marriages.
2. Consular Marriages
Marriages between Filipino citizens abroad
may be solemnized by a consul-general,
consul or vice consul of the Republic of the
Philippines [Art. 10, FC].

D. Effects of Marriage
1. Personal relations between the spouses
a. governed by the national law of the
parties
NOTE: If the spouses have different
nationalities, generally the national law of
the husband may prevail as long as it is not
contrary to law, customs and good morals of
the forum.
b. Under Philippine law, personal relations
between the spouses include [Arts. 68,
70-71, FC]
i. mutual fidelity
ii. respect
iii. cohabitation
iv. support
v. right of the wife to use the
husbands family name
2. Property relations
a. The Hague Convention declares that the
governing law on matrimonial property
is:
i. the internal law designated by the
spouses before the marriage
ii. in the absence thereof, the internal
law of the state in which the
spouses fix their habitual residence
b. Rule under Philippine law [Art. 80, FC]
(Asked in 03 BAR EXAMINATIONS)
i. In the absence of a contrary
stipulation
in
the
marriage
settlements, the property relations of
the spouses shall be governed by
Philippine laws, regardless of the
place of the celebration of the
marriage and their residence.

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CIVIL LAW REVIEWER

CIVIL LAW REVIEWER

c.

Rule is inapplicable:
if both spouses are aliens
with respect to the extrinsic
validity of the contracts affecting
property not situated in the
Philippines and executed in the
country where the property is
located
with respect to the extrinsic
validity of contracts entered into
in the Philippines but affecting
property situated in a foreign
country whose laws require
different formalities for its
extrinsic validity.

Doctrine
of
Immutability
of
Matrimonial Property RegimeThe
change of nationality on the part of the
husband or wife does not affect the
original property regime EXCEPT when
the law of the original nationality itself
changes the marital regime, hence, the
property regime has to change
accordingly.

II. Divorce and Separation


A. Rule under the Hague Convention (Asked
in 94 BAR EXAMINATIONS)
The granting of divorce or separation must
comply with the national law of the spouses
and lex fori (law of the place were the
application for divorce is made)

B. Divorce Decrees Obtained by Filipinos


1. General Rule: Decrees of absolute divorce
obtained by Filipinos abroad have no validity
and are not recognized in Philippine
Jurisdiction.
NOTE: Statutory Bases
a. Laws relating to Family rights and
duties, or to the Status, Condition and
Legal capacity of persons are binding
upon citizens of the Philippines, even
though living abroad [Art. 15, CC]
b. Prohibitive laws concerning persons,
their acts or property, and those which
have for their object public order, public
policy and good customs, shall not be
rendered ineffective by laws or
judgments, or by determinations or
conventions agreed upon in a foreign
country. [Art. 17(3), CC]
2. EXCEPTION: Art. 26(2), FC

Where a marriage between a Filipino citizen


and a foreigner is validly celebrated and a
divorce is thereafter validly obtained abroad
by the alien spouse capacitating him or her
to remarry, the Filipino spouse shall have
capacity to remarry under Philippine law
NOTE: In the case of Republic v Obrecido,
G.R. No. 154380 (2005), the Supreme Court
interpreted the exception in Art. 26(2), FC as
applying to valid marriages between two Filipino
citizens, where one party is later naturalized as a
foreign citizen and obtains a valid divorce decree
capacitating him or her to remarry.

C. VALIDITY

OF
FOREIGN
DIVORCE
BETWEEN FOREIGNERS (Asked in 75-79,
80-84, 85-89, 95-99,00-04, 05-08 BAR
EXAMINATIONS)
1. A foreign divorce will be recognized in all
contracting states if, at the date of the
institution of the proceedings [Hague
Convention on the Recognition of Divorce
and Legal Separation]:
a. either spouse had his habitual residence
there;
b. both spouses were nationals of that
state; or
c. if only the petitioner was a national, he
should have his habitual residence there
2. While there is no provision of law requiring
Philippine courts to recognize a foreign
divorce decree between non-Filipinos such
will ne recognized under the principle of
international comity, provided that it does
not violate a strongly held policy of the
Philippines.

III. Annulment and Declaration of Nullity


A. Jurisdiction to Annul
1. vested in the court of the domicile of the
parties
2. jurisdiction over the non-resident defendant
is not essential
B. Governing Law
1. Lex loci celebrationisdetermines the
consequences of any defect as to form
2. In general, the same applies with reference
to substantive or intrinsic validity. But with
regard to capacity of the parties to marry,
national law is determinative.

445
PRIVATE INTERNATIONAL LAW

ii.

Chapter X. FAMILY RELATIONS

CIVIL LAW REVIEWER

A. Determination of Legitimacy of a Child


1. Legitimacy: personal law of the parents,
which may either be their domicile or
nationality
2. In the Philippines
a. the legitimacy of the child is governed by
the national law of the parents
b. if
parents
belong
to
different
nationalities, legitimacy of the child is
governed by the national law of the
father
c. personal law of the illegitimate child is
the mothers personal law
B. Parental Authority Over the Child
Personal law of the father controls and
rights and duties of parents and child
NOTE: Reference to the personal law of the
father may result in joint exercise of parental
authority over the property of the child by the
father and mother; or, in the case on the
illegitimate child, to the mother alone

V. Adoption
(Asked in 75-79, 95-99, 00-04, 05-08 BAR
EXAMINATIONS)
A. Definition
The act by which relations of paternity and
filiation are recognized as legally existing
between persons not so related by nature
B. Domestic Adoption Act of 1998
1. An alien may adopt, provided he is:
a. of legal age
b. in possession of all civil capacity and
legal rights
c. of good moral character
d. no conviction of any crime involving
moral turpitude
e. emotionally and psychologically capable
of caring for children
f. at least 16 years older than the adoptee
g. in a position to support and care for his
children
h. his country has diplomatic relations
i. residence in the Philippines for at least 3
continuous years prior to the filing of the
application for adoption and maintains
such residence until the adoption decree
is entered
j. certificate of legal capacity to adopt in
his country to be issued by his
diplomatic or consular office; and

k.

his government allows the adoptee to


enter his country as his adopted
son/daughter

2. The requirement on residence and


certificate of qualification may be waived for
the following:
a. A former Filipino citizen who seeks to
th
adopt a relative within the 4 degree of
consanguinity or affinity; or
b. One who seeks to adopt the legitimate
son/daughter of his/her Filipino spouse;
or
c. One who is married to a Filipino citizen
and seeks to adopt jointly with his/her
th
spouse a relative within 4 degree of
consanguinity or affinity of the Filipino
spouse
3. The requirement of 16 years difference
between the adopter and the adoptee may
be waived if the adopter is:
a. The biological parent of the adoptee
b. The spouse of the adoptees parent
C. Inter-country Adoption
1. Definition
A socio-legal process of adopting a Filipino
child by a foreigner or a Filipino citizen
permanently residing abroad where the
petition is filed, the supervised trial custody
is undertaken, and the decree of adoption is
issued outside the Philippines.
2. This is an alternative means of childcare if
the child cannot be cared for in any suitable
manner in the Philippines
NOTE: Adoption is one of the ways prescribed
by law for the acquisition of Filipino citizenship
D. Effects of Adoption
Two different legal orders:
1. If the adopters personal law appliedsame
law governs the effects of the adoption
2. If the personal law of the child determined
the creation of the legal relationshipsuch
law will cease and yield to the personal law
of the adopting parents

446
PRIVATE INTERNATIONAL LAW

IV. Parental Relations

Chapter X. FAMILY RELATIONS

CIVIL LAW REVIEWER

Chapter XI. PROPERTY

contract is the loan while the mortgage of


the land is only an accessory
a. MortgageLex Situs
b. Loan Contractrules on ordinary
contracts

Chapter XI. Property


I.

I.

Controlling LawLex Situs/Lex Rei


Sitae

A. General Rule: Real as well as personal


property is subject to the law of the country
where it is situated [Art. 15, NCC]
B. Application of the Doctrine of Lex
Situs/Lex Rei Sitae
1. The capacity to transfer or acquire property
is governed by Lex Situs.
NOTE: Transfer of property to a foreigner
who subsequently became a Filipino citizen
shall be recognized [Llantino v Co Liong
Chong]
[Asked
in
00-04,
BAR
EXAMINATIONS]
2. The formalities of a contract to convey
property are governed by Lex Situs

II. Exceptions to Lex Situs


A. Transactions Not Affecting Transfer of
Title or Ownership of Land
Where the transaction does not affect
transfer of title to or ownership of the land:
Lex Intentionis or Lex Voluntatis

B. Contracts where Real Property Offered


as Security
In contracts where real property is offered by
way of a security for the performance of an
obligation such as loan, the principal

C. Intestate and Testamentary Succession


Intestate and testamentary successions
shall be regulated by the national law of the
decedent, with respect to the following [Art.
16(2); Art. 1039, NCC]
a. Order of succession
b. Amount of succession rights
c. Intrinsic validity of the testamentary
provisions
d. Capacity to succeed

D. Under a Policy-centered Approach

Forum court is not bound to look to the law


of the situs when the situs of the movable
property is insignificant or accidental
Questions relating to the validity and effect
of the transfer of the movable property are
governed by the law of the place of
principal use
Where the issue involves considerations
other than the validity and effect of the
transfer itself, governing law is the law of
the state which has real interest

III. Situs of Certain Properties


A. Situs of Personal Property for Tax
Purposes
The principle of mobilia sequuntur personam
cannot be applied to limit the right of the
state to tax property within its jurisdiction. It
yields to established facts of legal
ownership, actual presence and control
elsewhere, and cannot be applied if it would
result in patent injustice [Wells Fargo Bank
and Union Trust Co. v. CIR, 70 Phil 325
(1940)]
B. Situs of Money
In Leon v. Manufacturers Life Insurance Co.,
90 Phil 459 (1951), the Supreme Court held
that the funds in question were outside the
jurisdiction of Philippine courts, it having
been endorsed in an annuity in Canada
under a contract executed in that country.
C. Situs of Debts
The debt is located where the debtor is
located because it is where he can be sued
and the debt collected.

447
PRIVATE INTERNATIONAL LAW

CONTROLLING LAWLEX SITUS/LEX REI


SITAE
II. EXCEPTIONS TO LEX SITUS/LEX REI SITAE
A. TRANSACTIONS
NOT
AFFECTING
TRANSFER OF TITLE OR OWNERSHIP
OF LAND
B. CONTRACTS WHERE REAL PROPERTY
OFFERED AS SECURITY
C. INTESTATE
AND
TESTAMENTARY
SUCCESSION
D. POLICY-CENTERED APPROACH
III. SITUS OF CERTAIN PROPERTIES
A. SITUS OF PERSONAL PROPERTY FOR
TAX PURPOSES
B. SITUS OF MONEY
C. SITUS OF DEBTS
D. SITUS OF CORPORATE SHARES
E. PATENTS, TRADEMARKS, TRADE NAME
AND COPYRIGHT
F. GOODS TRANSPORTED BY COMMON
CARRIERS

CIVIL LAW REVIEWER

Chapter XI. PROPERTY

D. Situs of Corporate Shares


1. The situs of shares of stock of a corporation
is considered to be at the domicile of the
corporation.
2. There is a distinction between the situs of
shares of stock and the situs of the income
derived from the sale or exchange of such.
[CIR v Anglo California Bank, G.R. No. L12476(1960)]
E. Patents, Trademarks, Trade Name and
Copyright
1. Union Convention for the Protection of
Industrial Property: a trade name shall be
protected in all countries of the Union,
without the obligation of filing of registration,
whether or not it forms part of the trade
name.
2. RA 8923 (Intellectual Property Code): Any
foreign corporation which is a national or
domiciliary of a country which is a party to a
convention, treaty or agreement relating to
intellectual property rights to which the
Philippines is also a party or extends
reciprocal rights to our nationals by law shall
be entitled to benefits to the extent
necessary to give effect to any provision of
such convention.

448
PRIVATE INTERNATIONAL LAW

F. Liability of the Common Carrier for Loss,


Destruction and Deterioration of Goods
Transported
Law of Destination
1. The law of the country to which the
goods are to be transported shall govern
the liability of the common carrier for
their loss, destruction or deterioration
[Art. 1753, NCC]
2. The law of the country of destination
applies even if the goods never reach
the destination, but does not apply if the
goods were never transported
3. If the country of destination is the
Philippines, it is Philippine internal law
on loss, destruction, or deterioration that
must governthe Civil Code principally,
and the Code of Commerce and special
laws like the Carriage of Goods by Sea
Act, suppletorily.

CIVIL LAW REVIEWER

I.
II.

EXTRINSIC VALIDITY OF CONTRACTS


INTRINSIC VALIDITY OF CONTRACTS
A. LEX LOCI CONTRACTUS
B. LEX LOCI SOLUTIONIS
C. LEX LOCI INTENTIONIS
III. CAPACITY TO ENTER INTO CONTRACTS
IV. CHOICE OF LAW ISSUES
A. CHOICE OF FORUM CLAUSE
B. CONTRACTS
WITH
ARBITRATION
CLAUSE
C. ADHESION CONTRACTS
D. SPECIAL CONTRACTS
V. LIMITATIONS TO CHOICE OF LAW
VI. APPLICABLE LAW IN THE ABSENCE OF
EFFECTIVE CHOICE

I.

Extrinsic Validity of Contracts

General Rule: Lex Loci Celebrationis


The forms and solemnities of contracts xxx
shall be governed by the laws of the country
in which they are executed [Art. 17, CC]
NOTE:
1. Contracts Before Diplomatic/ Consular
Officials: The solemnities established by
Philippine laws shall be observed with
respect to contracts executed before
diplomatic or consular officials of the
Republic of the Philippines in a foreign
country [Art. 17(2), FC]
2. Contracts Entered Into by Letter/
Cablegram, etc.: A contract accepted by
letter or cablegram is presumed to have
been entered into the place where the offer
was made. [Art. 1319(2),CC]

II. Extrinsic Validity of Contracts


Three possible laws:
A. Lex Loci Contractus (Asked in 95, 02 BAR
EXAMINATIONS)
1. Law of the place where the contract is made
2. Merits
a. Relative ease in establishing
b. Certainty and stability
3. DemeritUnjust results when place of
making entirely incidental
NOTE: To determine where the contract is
made, we look to the place where the last act is
done which is necessary to bring the binding
agreement into being so far as the acts of the
parties are concerned.

B. Lex Loci Solutionis


1. Law of the place of performance governs
2. MeritAlways connected to the contract in a
significant way
3. DemeritNot helpful when the contract is
performed in 2 or more states with
conflicting laws

C. Lex Loci Intentionis


1. Law intended by the parties
2. Basis
The contracting parties may establish such
stipulations, clauses, terms and conditions
as they may deem convenient, provided
they are not contrary to law, morals, good
customs, public order, or public policy [Art.
1306, CC]
3. May be express or implied
a. Expresswhen the parties stipulate that
the contract be governed by a specific
law, such law will be recognized unless
there are cogent reasons for not doing
so.
b. Implied
i. Based on the contemporaneous and
subsequent acts of the parties
ii. Often upheld with reference to the
rule of validity of contracts which
presumes
that
the
parties
contemplate to enter into a valid
contract

III. Capacity to Enter Into Contracts


Determined by the personal laws of the
contracting parties
NOTE: Laws relating to Family rights and
duties, Status, Condition or Legal capacity
of persons are binding on citizens of the
Philippines, even though living abroad [Art.
15, NCC]

IV. Choice of Law Issues in Conflicts


Contracts Cases
A. Choice of Forum Clause
1. A case arising from a contract will be
litigated in the forum chosen by the parties if
the choice of forum clause specifically
identifies it as the only venue
2. When there is no fraud or overreaching, and
there is no showing that the choice-of-forum
clause would be unreasonable and unjust,
the clause must be given effect

449
PRIVATE INTERNATIONAL LAW

Chapter XII. Contracts

Chapter XII. CONTRACTS

CIVIL LAW REVIEWER

B. Contracts with Arbitration Clause


An arbitration clause, stipulating that the
arbitral award of an arbitral panel in a
foreign country is FINAL and BINDING, is
not contrary to public policy. It does not oust
our courts of jurisdiction as the international
arbitral award, the award of which is not
absolute and without exceptions, is still
judicially reviewable under certain conditions
provided for by the INCITRAL Model Law on
ICA as applied and incorporated in RA 9285
(Korea Technologies Co., Ltd. V Lerma,
2008)

C. Adhesion Contracts
1. Adhesion contracts are not entirely
prohibited. The one who agrees to the
contract is in reality free to reject it entirely; if
he adheres, he gives his consent.
2. It is void if there is UNDUE ADVANATGE on
the part of the dominant party
3. Any ambiguity is construed strictly against
the drafter

Chapter XII. CONTRACTS

V. Limitation Choice of Law


(Asked in 90-94 BAR EXAMINATIONS)
1. Cannot be a law which has NO
CONNECTION at all with the transaction or
the parties
2. LAW AS CHANGED will govern EXCEPT if
the change is so revolutionary that it was
never contemplated by the parties
3. Choice of law should not be interpreted to
OUST THE JURISDICTION which the court
has already acquired over the parties and
the subject matter.
4. Cannot contract away provisions of law
especially peremptory provisions heavily
impressed with PUBLIC INTEREST
5. COGNOVIT CLAUSE (confession of
judgment) valid only if the parties were of
equal bargaining power and the defendant
agreed to it voluntarily.

VI. Applicable Law in the Absence of


Effective Choice

D. Special Contracts
1. Law of the place of the MOST
SIGNIFICANT RELATIONSHIP with the
contract as a whole or with a specific issue
arising therefrom
2. Factors to consider
a. Place of contracting
b. Place of negotiating
c. Place of performance
d. Situs of the subject matter of the
contract
e. Parties domicile, residence, nationality,
place of incorporation, place of business
f. Place under whose local law the
contract will be most effective

450
PRIVATE INTERNATIONAL LAW

1. Sale or barter of goods: lex situs


2. Simple loan granted by financial institutions:
law of the permanent place of business
3. Loan granted by a private individual or
where the subject matter of the loan is
personal: law of the place where the loan
was obtained
4. Pledge, Chattel Mortgage, Antichresis: Lex
Situs
5. Carriage of Goods by Sea
a. The law of the country to which the
goods are to be transported shall govern
the liability of the common carrier for
their loss, destruction or deterioration
[Art. 1753, NCC]
b. The law of the country of destination
applies even if the goods never reach
the destination, but does not apply if the
goods were never transported
c. If the country of destination is the
Philippines, it is Philippine internal law
on loss, destruction, or deterioration that
must governthe Civil Code principally,
and the Code of Commerce and special
laws like the Carriage of Goods by Sea
Act, suppletorily.
6. International Air Transportation: Warsaw
Convention

CIVIL LAW REVIEWER

Chapter XIII. SUCCESSION

II. Intrinsic Validity

Chapter XIII. Succession

Intestate and testamentary successions shall be


regulated by the national law of the decedent,
with respect to the following [Art. 16(2); Art.
1039, NCC]
1. Order of succession
2. Amount of successional rights
3. Intrinsic validity of the testamentary
provisions
4. Capacity to succeed

I.
II.
III.
IV.
V.
VI.
VII.

Extrinsic Validity
Intrinsic Validity
Interpretation of Wills
Revocation
Probate
Administration of Estates
Trusts

I.

Extrinsic Validity (Arts. 17, 815-817, CC)


(Asked in 75-79,
EXAMINATIONS)

Alien Testator

Philippines

III. Interpretation of Wills


Governed by the National Law of the
decedent

APPLICABLE LAW
Philippine Law
1. law of the place where
he may be (lex loci
celebrationis)
[Art
815, CC]
2. Philippine law [see III
Tolentino 117]
1. Philippine Law [Art. 17,
CC]
2. law of the country in
which he is a citizen or
subject [lex nationali]
(Art. 817, NCC)

Foreign
1. law of the place in
which he resides [lex
Country [Arts.
domicilii]
816, 17, NCC]
2. law of his country (lex
nationali)
3. Philippine law
4. law of the place where
they were executed
(lex
loci
celebrationis)

NOTE: Rule re: Joint Wills


1. Joint wills prohibited under Art. 818, CC
executed by Filipinos in a foreign country
shall not be valid in the Philippines even
though authorized by the laws of the country
where they were executed. [Art. 819, CC]
(Asked in 00-04 BAR EXAMINATIONS)
2. Civil Code is silent as to the validity of a joint
will executed by an alien in the Philippines. It
is suggested that that it should not be
probated if it would affect the heirs in the
Philippines.

IV. Revocation
TESTATOR

APPLICABLE LAW

Philippine
Domiciliary
Philippine Law
Non-domiciliary
[Art. 829, CC]

Philippine
Domiciliary

Non-domiciliary
[Art. 829, CC]

1. Philippine Law
2. Law of the place of
revocation (lex loci
actus)
1. law of the place
where the will was
made
2. law of the place in
which the testator
had his domicile at
the time of the
revocation

V. Probate
A. Controlling Law
The probate of a will being essentially
procedural in character, the law of the
forum (lex fori) governs.
B. Wills Proved and Allowed in a Foreign
Country
1. A will proved and allowed in a foreign
country in accordance with the laws of that
country may be allowed, filed, and recorded
in the proper Regional Trial Court in the
Philippines [RULES OF COURT, Rule 77,
Sec.1]

451
PRIVATE INTERNATIONAL LAW

Foreign
Country

BAR

Will is revoked in
the Philippines

Filipino Testator

Philippines

95-99

Will is revoked in a Foreign


Country

PLACE OF
EXECUTION

90-94,

CIVIL LAW REVIEWER

Chapter XIII. SUCCESSION

2. Requisites for Reprobate (Vda de Perez v


Tolete, 232 SCRA 722)
The following must be proved by competent
evidence:
a. due execution of the will in accordance
with the foreign laws
b. the testator had his domicile in the
foreign country and not in the
Philippines
c. the will has been admitted to probate in
such country
d. the laws of the foreign country on
procedure and allowance of wills

VI. Administration of Estates


Territorial: governed by the law of the place
where the administration takes place, and that is
the law of the country from which the
administrator derives his authority.

VII. Trusts
Extrinsic Validity: rules governing wills apply
Intrinsic Validity: lex situs since a trust
involves property

452
PRIVATE INTERNATIONAL LAW

Chapter XIV. Torts and Crimes


I.

II.

I.

Torts
A. Traditional Approach
1. Controlling Law
a. Matters Concerning Conduct and
Safety: Lex Loci Delicti
Commissi
b. Matters Concerning Loss and
Safety: Lex Domicilii
2. Characterization of Locus Delicti
a. Common Law Rule
b. Civil Law Rule
B. Modern Approaches
1. Most Significant Relationship
2. Interest Analysis
3. Cavers Principle of Preference
C. Foreign Torts Claims
1. Transitory Nature of Torts Claims
2. Conditions for Enforcement
3. Alien Torts Claims Acts (ATCA)
4. Rule under Philippine Law
Crimes
A. General Rule: Lex Loci Delicti
Commissi/Locus Regit Actum
B. Exceptions
1. Crimes Committed by Diplomatic
Officials; Doctrine of State Immunity
2. Crimes Committed in Foreign
Vessels
3. Art. 2, Revised Penal Code

Torts

A. Traditional Approach
1. Controlling Law
a. Lex Loci Delicti Commissi (law of the
place where the alleged tort was
committed)
applies
in
matters
concerning conduct and safety
b. Lex Domicilii of the parties applies in
matters concerning loss distribution or
financial protection
2. Characterization of the place of wrong
(Locus Delicti)
a. Common Law: place where the last
event necessary to make an actor liable
for an alleged tort occurs (place of
injury)
b. Civil Law: place where the tortious
conduct was committed (place of
conduct)
B. Modern Approaches
1. Most Significant Relationship
a. The
most
significant
relationship
approach considers the states contacts
with the occurrence and the parties

Chapter XIV. TORTS and CRIMES

b. In the case of Saudi Arabian Airlines v


CA, 297 SCRA 469, the Supreme Court
had the occasion to apply the most
significant relationship rule. In the said
case the court laid down the following
factors which are to be taken into
account::
i. place where the injury occurred
ii. place where the conduct causing
the injury occurred
iii. the domicile, residence, nationality,
place of incorporation and place of
business of the parties
iv. place where the relationship, if any,
between the parties is centered
2. Interest Analysis
This approach considers the relevant
concerns the state may have in the case
and its interest in having its law applied on
that issue
3. Cavers Principle of Preference
a. Where the State of Injury provides for
higher standard of conduct or financial
protection against injury than the State
where the tortious act was done, the law
of the former shall govern
b. Where the State of injury and conduct
provides for lower standard of conduct
and financial protection than the home
State of the person suffering the injury,
the law of the State of conduct and
injury shall govern
c. Where the State in which the defendant
was engaged, the special controls and
benefits must be applied although the
State has no relationship to the
defendant
d. Where the law in which the relationship
has its seat imposed higher standards of
conduct or financial protection than the
law of the State of the injury, the former
law shall govern.
C. Foreign Torts Claims
1. Tort liability is transitory. Hence, an action
for tort may be brought wherever the
tortfeasor is subject to suit.
2. Conditions for enforcement of foreign tort
claims:
a. The foreign tort is based on civil action
and not on a crime
b. The enforcement of the tort would not
infringe the public policy of the forum
c. The judicial machinery of the forum is
adequate for its proper enforcement
3. Alien Tort Claims Act(ATCA) (Asked in 0004 BAR EXAMINATIONS)

453
PRIVATE INTERNATIONAL LAW

CIVIL LAW REVIEWER

CIVIL LAW REVIEWER

Chapter XIV. TORTS and CRIMES

grants US District Courts original jurisdiction


over any civil action by an alien for a tort
omitted in violation of the law of nations or a
treaty of the US.
4. In the Philippines, no specific statutory law
governs the enforcement of claims arising
from foreign tort.

II. Crimes
A. General Rule
Lex Loci Delicti Commissi/ Locus Regit
Actum (law of the place where the act was
committed)
NOTE: Penal laws xxx shall be obligatory
upon all those who live and sojourn in
Philippine territory, subject to the principles
of public international law and to treaty
stipulations [Art. 14, CC]

454
PRIVATE INTERNATIONAL LAW

B. Exceptions
1. Crimes committed by state officials,
diplomatic representatives and officials of
recognized
international
organizations
(based on the doctrine of state immunity
from suit.
2. Crimes committed on board a foreign vessel
even if it is within the territorial waters of the
coastal state, as long as the effect of such
crime does not affect the peace and order of
the coastal state.
3. Crimes which, although committed by
Philippine nationals abroad are punishable
under Philippine law as provided in Art. 2,
Revised Penal Code:
b. offenses committed in a Philippine
vessel or airship
c. forging or counterfeiting any coin or
currency note of the Philippines, or any
obligation issued by the government
d. introduction into the country of the
obligations and securities mentioned in
the preceding number
e. those committed by public officers or
employees in the exercise of their
functions
4. Crimes against national security and the law
of nations.

CIVIL LAW REVIEWER

I.

Personal Law of Corporations


A. General Law: Law of Incorporation
B. Exceptions
1. Constitutional
and
Statutory
Restrictions
2. Control Test During War
II. Domicile/Residence of Corporations
A. General Rule
B. Exceptions
III. Jurisdiction Over Foreign Corporations
A. Consent Doctrine
B. Foreign Corporations Doing Business
Bound by Philippine Law
1. Art. 129, Corporation Code
2. Service Upon Foreign Corporations
Doing Business in the Philippines
IV. Right of Foreign Corporations to Bring Suit
A. General Rule
B. Exceptions
1. Isolated Transactions
2. Action to Protect Trademark, Trade
Name, Goodwill, Patent or for Unfair
Competition
3. Agreements
Fully
Transacted
Outside the Philippines
4. Petitions Filed Merely as Corollary
Defense in a Suit Against It

I.

Personal Law of Corporations

A. General Rule
Law of the State where it is incorporated
[Art. 2, Corporation Code]
NOTE: Hence, if the law creating the corporation
does not give it authority to enter into certain
contracts, such contracts made by it in another
state shall be void despite the express
permission given by the laws of that other state.
B. Exceptions
1. Constitutional and Statutory Restrictions
(e.g. Art. XII, Sec. 2, 1987 Constitution)
2. Control Test During War
In wartime, the courts may pierce the veil of
corporate identity and look into the
nationality of the controlling stockholders to
determine
the
citizenship
of
the
corporation.

II. Domicile/Residence of Corporations


A. General Rule [Art. 51, CC]
that fixed by the law creating them,
recognizing them or any other provision of
law

B. Rule if the Same Not Fixed by Law


If the law does not fix the same, the domicile of
juridical persons shall be understood to be [Art.
51, CC]:
1. place where their legal representation is
established; or
2. place where they exercise their principal
functions
NOTE: A foreign corporation granted license to
operate in the Philippines acquires domicile
here.

III. Jurisdiction
Corporations

Over

Foreign

A. Consent Doctrine
A foreign corporation shall be recognized
and will be allowed to transact business in
any state which gives it consent. The
consent doctrine is established in Sections
125, 126, 127 and 128 of the Corporation
Code.
.
B. Foreign Corporations Doing Business in
Philippines Bound by Philippine Law
1. Under Art. 129 of the Corporation Code, all
foreign corporations lawfully doing business
in the Philippines shall be bound by all laws,
rules, and regulations applicable to domestic
corporations; EXCEPT:
a. provisions for the creation, formation,
organization
or
dissolution
of
corporations
b. those which fix the relations, liabilities,
responsibilities,
or
duties
of
stockholders, members, or officers of
corporations to each other or to the
corporation
2. Service upon foreign corporations doing
business in the Philippines may be made on
[Rule 14, Sec. 14, RULES OF COURT]:
c. its resident agent
a. in the absence thereof, process will be
served on the government official
designated by law or any of its officers
or agent within the Philippines
b. on any officer or agent of said
corporation in the Philippines
c. thru diplomatic channels (Far East
International v. Nankai Kogyo, 6 SCRA
725 (1962))

455
PRIVATE INTERNATIONAL LAW

Chapter XV. Torts and Crimes

Chapter XV. CORPORATIONS

CIVIL LAW REVIEWER

Chapter XV. CORPORATIONS

IV. Right of Foreign Corporations to


Bring Suit
A. General Rule
License to transact business in the
Philippines is an essential prerequisite for
filing a suit before Philippine courts [Art. 133,
Corporation Code]
B. Exceptions
1. isolated transactions
2. action to protect trademark, trade name,
goodwill, patent or for unfair competition
3. agreements fully transacted outside the
Philippines
4. when the petition filed is merely a corollary
defense in a suit against the corporation
EFFECT OF FAILURE TO SECURE A
LICENSE TO TRANSACT BUSINESS
1. the foreign corporation has no right to sue in
the Philippines but it can still be sued
2. although the contracts entered into may be
valid as between the parties, it may not be
enforced in Philippine courts

PRIVATE INTERNATIONAL LAW

456

CIVIL LAW REVIEWER

Chapter XVI. FOREIGN JUDGMENTS

III. Policy of Preclusion Underlying


Recognition and Enforcement

I.
II.

RECOGNITION v. ENFORCEMENT
BASES
OF
RECOGNITION
ENFORCEMENT
III. POLICIES UNDERLYING
IV. REQUISITES
V. PROCEDURE FOR ENFORCEMENT
VI. EFFECTS OF FOREIGN JUDGMENTS

AND

FOREIGN JUDGMENT: a decision rendered


outside the forum and encompasses judgments,
decrees and order of courts of foreign countries.

I.

Recognition v. Enforcement

A. Recognition of Foreign Judgment


1. Passive act of giving the same effect that it
has in the State where it was rendered with
respect to the parties, the subject matter of
the action and the issues involved without
the necessity of filing an action in the forum
giving effect to the judgment
2. Examples of foreign judgments which can
only be recognized: declaratory judgments,
judgments which give no affirmative relief,
judgments which determine the parties
interests in a thing or status.
B. Enforcement of Foreign Judgment
1. A judgment is enforced when, in addition to
being recognized, a party is given affirmative
relief to which the judgment entitles him; it
necessarily requires the filing of an action.
2. This necessary implies recognition.

II. Bases
of
Enforcement

Recognition

and

A. Comity
In order to obtain reciprocal treatment from
the courts of other countries, we are
compelled to take foreign judgments as they
stand and to give them full faith and credit.
B. Doctrine of Obligation
1. Considers a judgment of a foreign court of
competent jurisdiction as imposing a duty or
obligation on the losing litigant.
2. This is based on the vested rights theory.

The policy of preclusion seeks to protect


party expectation resulting from previous
litigation, to safeguard
against the
harassment of defendants, to insure that the
task of the courts not be increased by neverending litigation of the same disputes, and
in a larger senseto promote what Lord
Coke in the Ferrers Case of 1599 stated to
be the goal of all law: rest and quietness.
(Mijares v Ranada, 2005)

RELATED CONCEPTS
1. Res Judicata: once there is a final
judgment, resolution on the issues litigated
is binding on the parties and their privies.
2. Merger: plaintiffs cause of action is merged
in the judgment so that he may not relitigate
that exact claim.
3. Bar: successful defendant can interpose as
defense the judgment in his favor to avert a
nd
2 action by the plaintiff on the same claim.
4. Direct estoppel: relitigation of all matters
decided are precluded
5. Indirect estoppel: all essential issues of
fact actually litigated cannot be relitigated.

IV. Requisites
for
Enforcement

Recognition

or

1. Foreign court had JURISDICTION over the


parties and the case
2. Judgment VALID under the laws of the
country that rendered it.
3. Judgment FINAL and EXECUTORY to
constitute res judicata in another action
4. RECIPROCITY:
state
where
foreign
judgment was obtained allows recognition
and enforcement of Philippine judgments.
5. Judgment is for a FIXED SUM of money
6. Foreign judgment not contrary to PUBLIC
POLICY OR GOOD MORALS of country
where it is sought to be enforced
7. Judgment not obtained by EXTRINSIC
FRAUD, COLLUSION, MISTAKE of fact or
law.

V. Procedures

for

Enforcement

Three modes of enforcement:


A. Petition
1. Followed in most common law countries and
in the Philippines

457
PRIVATE INTERNATIONAL LAW

Chapter XVI. Foreign Judgments

CIVIL LAW REVIEWER

Chapter XVI. FOREIGN JUDGMENTS

2. The rules are silent as to what initiatory


procedure must be undertaken in order to
enforce a foreign judgment in the
Philippines. But there is no question that the
filing of a
B. Summary Proceeding
1. Followed in most civil law countries
2. A summary proceeding for enforcement is
provided by statute.
C. Judgment Registration
An authenticated copy of the foreign
judgment is filed in the registrars office
together with other proofs required by
domestic laws and the foreign judgment is
converted into a local one that is
immediately executory.

VI. Effect of Foreign Judgment in the


Philippines

NOTE: It has been recognized that public


policy as a defense to the recognition of
judgment serves as an umbrella for a variety of
concerns in international practice which may
lead to a denial of recognition [Mijares v
Ranada, 2005]

- end of Private International Law

- end of Civil Law -

458
PRIVATE INTERNATIONAL LAW

The effect of a judgment or final order of a


tribunal of foreign country, having jurisdiction to
render such is as follows [Sec. 48, Rule 39,
RULES OF COURT]:
1. In a judgment or final order upon a specific
thing, the judgment or final order is
conclusive upon the title to the thing; and
2. In a judgment or final order against a
person, the judgment or final order is
presumptive evidence of a right as between
the parties and their successors-in-interest
by a subsequent title.
3. In either case, the judgment or final order
may be repelled by evidence of
a. want of jurisdiction
b. want of notice to the party
c. collusion
d. fraud
e. clear mistake of law or fact