Harden v.

Director of Prisons
G.R. No. L-2349, October 22, 1948

QUESTION:
X was involved in a civil case with Y concerning conjugal partnership, payment of alimony and
accounting. In that case, a receiver was appointed and a preliminary injunction was issued
restraining X from transferring or alienating, except with consideration and consent of the court, all
assets (money, shares of stock, property, real, personal, whether in his name, her name or both) in
the partnership with Y. However, X transferred drafts and cash in overseas accounts, thus properties
are located in a foreign country (foreign deposits and other certificate of stocks). Receiver, through
the court, ordered X to deliver to him the certificate of stocks so that the same may be registered
pursuant to RA No. 62 which the latter failed and thus was committed to prison for contempt for
violating court orders. X contends that the fact that the properties are in the foreign country deprives
the court of jurisdiction thus the court cannot order X to deposit the cash and to deliver the certificate
of stocks. Is X correct?

ANSWER:
No.

Jurisprudence provides that while a court cannot give its receiver authority to act in another state
without the assistance of the courts thereof, yet it may act directly upon the parties before it with
respect to property beyond the territorial limits of its jurisdiction, and hold them in contempt if they
resist the court's orders with reference to its custody or disposition, Whether the property was
removed before or after the appointment of the receiver is likewise immaterial.

In the case at bar, although the properties under receivership are located in a foreign country and
thus beyond the jurisdiction of the court, the court can act directly upon X, who caused it to be
attached, and order the latter to deliver the properties. It makes no difference that the property was
in a foreign jurisdiction. Failure to comply with such order will hold X in contempt.

Thus, court has jurisdiction over foreign property subject to the litigation.