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CONFLICTS OF LAW individuals and juridical entities, naturalization law, laws on

PART ONE: INTRODUCTION domicile and residence, family relations, contracts, torts,
Public International Law Private International Law crimes, corporation law and property law.
I. Scope and Conflict of Laws: Nature, Definition and
Importance Principally governs states Principally governs
in their relationships individuals in their private 3 Issues in Conflict of Laws:
amongst themselves transactions which
A. Diversity of Laws, Customs and Practices involves a foreign element 1) Issue of adjudicatory JD: determines the circumstances
As to sources of law: that allow for a legal order to impose upon its judiciary the
PRIL: that part of municipal law which covers cases with a Codified in Art. 38 of the Generally derived from task of deciding multi-state and multinational disputes
foreign element. Statute of International the internal law of each
Court of Justice state and not from any 2) Issue of choice-of-law: refers to the probable sources from
Hilton vs. Guyot ―international‖ law which the applicable law of the controversy may be derived
(1895) extraneous to municipal
FACTS: Defendants were sued in France, and the French law 3) Recognition and enforcement of foreign judgments: study
court rendered judgment against them. Plaintiffs sued As to persons involved: of situations which justify recognition by the forum court of a
defendants on the French judgment in the US. The US Governs only states and Governs individuals or judgment rendered by a foreign court or the enforcement of
court held the French judgment conclusive. internationally-recognized corporations such within the forum
organizations
HELD: No law has any effect, of its own force, beyond the As to transactions:
limits of the sovereignty form which its authority is derived. Involves state-to-state or Relates to private II. A Brief History and Development of Conflict of Laws
The extent to which the law of one nation, as put in force government-to- transactions between
within its territory xxx shall be allowed to operate within the government matters individuals
dominion of another nation, depends upon xxx ―the comity As to remedies: A. Roman Law
of nations.‖
In case of violation, a state All the remedies are
may resort to provided by municipal  Ius gentium
Comity of nations is the recognition which one nation allows In PIL, it means the law of nations
1) diplomatic protest laws of the state, such as
within its territory to the legislative, executive or judicial acts It is used in the early Roman empire to mean the
2) peaceful means of resort to courts or
of another nation, having due regard both to international body of rules developed by the praetor peregrinus to
settlement (diplomatic administrative tribunals
duty and convenience, and to the rights of its own citizens or resolve disputes between foreigners or between
negotiations, arbitration
of other persons who are under the protection of its laws. foreigners and Roman citizens
or conciliation)
3) adjudication by filing a It includes Greek legal doctrines and concept of
The reasonable, if not necessary conclusion appears to us to bona fides as ius civile only applies t Roman citizens
case before international
be that judgments rendered in France, or in any other
tribunals
foreign country, by the laws of which our own judgments are
4) use force short of war,  Italian City States
reviewable upon the merits, are not entitled to full credit and The rise of this city states prompted intensive
or eventually go to war
conclusive effect when sued upon in this country, but are study of conflict of laws
prima facie evidence only of the justice of the plaintiff‘s - Bartolus: Father of Conflict of Laws; formulated
claim. Theory of Statutes
C. Object, Function and Scope
Because Northern Italy was divided into several
B. Definition city states each having their own laws on private matters,
Object and Function of Conflict of Laws: to provide rational
and valid rules or guidelines in deciding cases where the the ―Statute‖ was applied to problems of choice of law.
parties, events or transactions are linked to more than one
Second Edition of Jurisprudence: private international law is Statute is classified into:
JD.
that part of the law of each state or nation which determines a. real – applied to immovable property within
whether, in dealing with a legal situation, the law of some the state
Conflict of law rules aim to promote stability and uniformity
other state or nation will be recognized, given effect or b. personal – followed the person even outside
of solutions provided by the laws and courts of each state
applied. the domicile and governed questions on
called upon to decide conflicts cases.
personal status, capacity and movables
Scope: covers the entire range of laws as it cuts across the c. mixed – contracts, if entered into by the
Distinguished from Public International Law and other different nationals
subjects of JD of local courts or tribunals, the law on
disciplines:
evidence or proof of foreign law, the personal law of
1
 16 century, France
th
-application of foreign law was not Conflict of Laws was included in law curriculum by UP
due to comity but the resultant College of Law in 1911 (no less!). Until 1950s, law teachers
Charles Dumoulin – advocated a method to determine benefits for everyone concerned predominantly used foreign law books and decisions by
what law would govern contracts between different - advocated situs theory (seat of American courts.
nationals legal relationship): every element
of transaction be governed by the In the Bar, it used to be a separate subject along with PIL
Bertrand D‘Argentre – formulated the principle of law of the place with which said but when it was revised, PIL was included in Pol Law while
universal succession followed in the Spanish Civil Code element has the most substantive PRIL was merged with Civil Law. But, this does not mean
and adopted in the Phil. Civil Code connection that PRIL is a part of civil law as this mindview tends to limit
the perspective and scope of analysis required for conflicts
 Netherlands Pascuale Mancini problems.
- advanced nationality theory in matters concerning
Ulrich Huber – first used the term, conflict of laws status, capacity and private interests of the Now, more problems in Conflict have arisen esp. with
individual Filipinos engaging in foreign business transactions, and in
Dutch jurists asserted that State has no obligation to international air transport and foreign tort claims and labor
apply a foreign law unless imposed by treaty, by comitas B. Modern Developments contracts for OFWs.
gentium or on consideration of courtesy and
expediency.  Neo-Statutists
- followed Italian theory: when 2 or more III. Sources of Conflict of Laws
Dutch jurists led by Huber developed territorial independent laws are applicable to a Conflict
principle where the laws of every state may operate only problem, the method so devised determines what A. Codes and Statutes
within its territorial limit but such sovereign state may law shall prevail
recognize that a law, which operated in the country of  Internationalists Conflict of Laws (CL) originated in continental Europe was
its origin, shall retain force everywhere provided that it - there should be a single body of rules that can most laws were codified.
will not prejudice its subjects. solve problems involving a foreign element
Primary sources of law are found in the civil codes of
 Territorialists
Comitas Gentium was readily accepted because of different countries:
- law of the State applies to persons and things
increasing international transactions. within the State, therefore, no foreign law is
1. Roman code codified principles of ius gentium.
applied.
Ius Commune, applied by Italian and French jurists, 2. Code of Napoleon contained specific rule on
- Branch: only rights vested or acquired under
was a supranational law based on Roman law and which personal law of individual, this was followed by
foreign law are recognized in the forum but not
became the continental European common law. several codes (Netherlands, Romania, Italy, Portugal,
foreign law itself
Spain)
 1969 3. The German civil Code contained many
Nations codified their national laws which included
- 2 Restatement of Conflict of Laws, adopted by
nd
provisions on Conflict of Laws.
conflict of laws provisions.
American Law Institute under Prof. William 4. Switzerland also enacted Laws on cases involving
Reese, proposed that in the absence of statutory foreign elements.
Ex. French Civil Code of 1804
law, law to be applied in Conflict case, is the law of 5. Greece enacted a Civil Code with CL rules which
- became the pattern for Civil Codes of Spain,
the most significant relationship. became a model in other countries
Belgium and Romania
- nationality law principle (contained in Art. 15 6. The Code of Bustamante (in South America) was
Conflict of Laws in the Philippines patterned after the Code of Napoleon
of our CC) was provided in Art. 3 of the
French Code Spanish Civil Code enforced in the Philippines until 1950
contained the principles adopted from the French Civil Conflict Laws of the Philippines
 19 Century
th
Code (Code of Napoleon) particularly the nationality law
principle. Art 16, par. 1, which applies lex situs rule was Spanish Civil Code was enforced in the Philippines on
Justice Joseph Story – relied on the European adopted from Art. 10 of Spanish CC while par. 2 represents
continental theorists‘ concept of territorial sovereignty December 7, 1889 until the Philippine Civil Code‘s
the system of universal succession. Art. 17, par. 1 follows lex effectivity on August 30, 1950 which contained the
and founded conflict of laws on the principle of comity loci contractus. But there was no significant jurisprudence on
of nations. provisions on conflict of laws of the earlier code.
the subject.
Frederich Carl Von Savigny
- founder of modern private IL
2
Spain‘s Code of Commerce, having some provisions on 12. Convention on World Intellectual Property PART TWO: JURISDICTION AND CHOICE OF LAW
foreign transactions, were also enforced in the Philippines Organization
on Dec 1, 1888. 13. Berne Convention on Protection of Literary and
Artistic Works IV. Jurisdiction
One basic source of law is the 1987 Constitution which 14. Paris Convention on Protection of Industrial Property.
contains principles on nationality and comity. Jurisdiction may mean either a) judicial or b) legislative
Although many Hague Conventions on Private International jurisdiction. (This part talks of judicial jurisdiction)
Special statutes were also enacted to govern cases with Law were concluded since 1951, which dealt with issues on:
foreign elements, to wit:  Personal status Judicial JD – the power or authority of a court to try a case,
 Patrimonial family status render judgment and execute it in accordance with law.
1. Corporation Code  Patrimonial status such as agency and
2. General Banking Act trusts Legislative JD – the ability of the state to promulgate laws
3. Foreign Currency System Act The Philippines is a signatory to the Convention on and enforce them on all persons and property within its
4. Phil Foreign Law Guarantee Corp Recognition of Foreign Judgment on Civil and Commercial territory.
5. Retail Business Regulation Act Matters and has ratified the 1993 Convention in Respect of
6. Anti-Dummy Law Inter-Country Adoption only.
7. Nationalization of Rice and Corn Industry Act 4 Major Questions in Analyzing a Conflict of Laws Problem:
8. Insurance Code
9. IP Code 1) Has the court JD over the person of the defendant
10. Patent Law C. Treatises, Commentaries and Studies of Learned or over his property?
11. Trademark Law Societies
12. COGSA 2) Has the court JD over the subject matter
13. Salvage Law In interpreting statutes and codes involving CL, courts resort (―competency‖)?
14. Public Service Act to works of distinguished jurists and studies of learned
15. Civil Aeronautics Act societies. 3) Has the suit been brought in the proper venue in
16. Phil Overseas Shipping Act cases where a foreign element is involved?
17. Investment Incentives Act Distinguished writers in continental Europe include Huber
18. Export Incentives Act Manreas, Savigny (whose work was translated into English by 4) Is there a statute or doctrine under which a court
19. RA 7722 Guthrie), and Weiss. otherwise qualified to try the case may or may not
refuse to entertain it?
Distinguished American and English writers, on the other
B. Treaties and International Conventions hand, include Beale, Cavers, Cheatham, Currie, Ehrenzweig,
Goodrich, Gussbaum, Story, Wharton, Cheshire, Graveson. A. Basis of Exercise of Judicial Jurisdiction
The Philippines has entered into a number of treaties and
international conventions which deal with private The American Law Institute published 2 studies on CL: Bases of Judicial Jurisdiction (3 groups):
international law since it became a Republic. Restatement of the Conflict of Laws and a Second
Restatement with William Reese as Reporter. 1) JD over the person (based on forum-defendant
Some of these treaties/conventions are: contacts)

1. Convention on Intl Civil Aviation, D. Judicial decisions 2) JD over the res (based on forum-property
2. Warsaw Convention, contacts)
3. Convention on Offenses Committed on Board Aircraft Decisions of courts are the most important source of CL
4. Convention on the Suppression of Unlawful rules and form the main bulk of source of conflict rules. 3) JD over the subject matter
5. Acts against Civil Aviation
6. UN Convention COGSA According to Graveson: ―This branch of law is more
7. Convention on Consent to Marriage, etc completely judge-made than almost any other. In its 1. Jurisdiction over the Person
8. Convention on Traffic of Persons application, judges have to deal with ―All Manner of People‖
9. Convention on Elimination of Discrimination against more than any other branch. The claim of justice for right as This is acquired by the voluntary appearance of a party and
Women a basis for conflict of laws is supported not only by the terms his submission to authority.
10. Convention on Political Rights of Women of the judicial oath but by judicial dicta in judgments‖.
11. IC on the Suppression of Traffic of Women and Over the person of the plaintiff: acquired the moment he
Children invokes the aid of the court by filing a suit.
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basis of JD: presence of the property within the territory the suit is merely in personam, constructive service in this
Over the person of the defendant: acquired when he enters form upon a non-resident is ineffectual for any purpose.
his appearance or is served with the legal process within the 3) over the subject-matter - WON the court has
state. competence to hear the case and render
judgment; the court‘s JD must be properly The important thing to prove is what kind of action is
When he or his lawyer appears in court, he gives consent to invoked (provided for by statute) involved (to determine sufficiency of form of service to be
the forum‘s exercise of JD over him, except where the _______________ used)
appearance is for the purpose of protesting the JD over him.
2. Jurisdiction over the Property
A non-resident plaintiff who files a suit is deemed to consent International Shoe Co. vs. Washington
to the court‘s exercise of JD over subsequent proceedings JD over the property results from: (1945)
arising out of his original cause of action (counterclaims). FACTS: The state of Washington sued International Shoe
a) seizure of the property under a legal process Co. (a Delaware corporation with principal place of business
JD over the defendant may be had by personal or in Missouri) to collect the tax laid upon the exercise of the
substituted service of summons. b) the institution of legal proceedings wherein privilege of employing salesmen within the state.
the court‘s power over the property is International Shoe‘s defense is that its activities within the
recognized and made effective state, consisting merely of exhibiting samples and soliciting
Gemperle vs. Schenker orders and nothing more, were not sufficient to manifest its
(1967) This kind of JD is referred to as in rem JD; the situs could ―presence‖ there; hence the state courts had no JD over it.
FACTS: Paul Schenker (Swiss citizen and resident) filed a ―bind the world‖ and not just the interest of specific persons.
complaint against Gemperle through his wife Helen HELD: The SC of Washington has JD over International
Schenker, for enforcement of subscription to shares of Basis of exercise of JD: the presence of the property within Shoe. Due process requires only that in order to subject a
stock. Gemperle filed a suit against Paul for damages, saying the territorial JD of the forum. defendant to a judgment in personam, if he be not present
that Paul caused allegations to be published attacking his within the territory of the forum, he should have certain
reputation and bringing him into public hatred and discredit Quasi in rem JD: affects only the interests of particular minimum contacts with it, such that the maintenance of the
as a businessman. Schenker‘s defense: court has no JD over persons in that thing (ex. Quieting of title). (actions against a suit does not offend ―traditional notions of fair play and
the person of Paul. person in respect of the res) substantial justice‖. (Minimum contacts so that the suit will
not offend traditional notions of fair play and substantial
HELD: Jurisdiction was acquired by the lower court over the In these 2 proceedings, all that due process requires is that justice.)
person of Paul through service of summons addressed to the defendant be given adequate notice and opportunity to
him upon Helen, it appearing from the answer that she is the be heard (which are both met by service of summons by The demands of due process regarding the corporation‘s
representative and attorney-in-fact of her husband in the civil publication). ―presence‖ may be met by such contacts of the corporation
case. with the state of the forum as to make it reasonable xxx to
require the corporation with defend the particular suit which
Pennoyer vs. Neff is brought there.
Jurisdiction: (1878)
1) over the person FACTS: Neff, a California resident, owned land in Oregon Its ―presence‖ can be manifested only by such activities
a) voluntary appearance which was sold under a Sheriff‘s deed to satisfy a money carried on in its behalf by those who are authorized to act for
b) submission to authority judgment against him. The service of summons was made by it.
publication. He is suing for recovery of said land, alleging
rule: in substituted service, the premise is that the defendant that the sale was invalid for lack of JD of the Oregon court
is within the territorial JD of the court over him. Mullane vs. Central Hanover Bank & Trust Co.
(1950)
exception: Gemperle case – because Helen is legally HELD: Substituted services by publication, or in any other FACTS: In an action for judicial settlement of accounts of
authorized to file a case in behalf of Paul, she is also authorized form, may be sufficient to inform parties of the Central Hanover Bank as trustee of a common trust fund,
authorized to receive summons object of the proceedings taken where property is once some of the beneficiaries who are non-residents of NY were
brought under the control of the court by seizure or some notified only by publication in a local newspaper.
2) over the property equivalent act to any proceedings authorized by law upon
a) in rem – the situs could ―bind the such seizure for its condemnation and sale. HELD: When notice is a person‘s due, process which is a
world‖ mere gesture is NOT due process. The means employed
b) quasi in rem But where the entire object of the action is to determine the must be such as one desirous of actually informing the
personal rights and obligations of defendants, that is, where absentee might reasonably adopt to accomplish it. Within
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the limits of practicability, notice must be such as is contacts exist among the forum, defendant and the cause of power to enter upon the inquiry, not whether its conclusion
reasonably calculated to reach interested parties. action. in the course of it is right or wrong.

In Mullane, the manner notice was given should reasonably The change in the conceptual foundation of JD from
result in informing the affected partner; when conditions do territorial power to fairness does not significantly affect
not allow such notice, the form chosen should not proceedings in rem, which are suits where the property itself ―Presence‖/Jurisdiction:
substantially be ―less likely to bring home notice than other is the object of the controversy. The physical presence of the 1) Traditional Views
of the feasible and customary substitutes.‖ property within the state establishes the state‘s paramount a) Pennoyer – actual physical presence
interest in adjudicating a claim over it and provides the 2) Modern Views
necessary minimum contacts.
Shaffer vs. Heitner a) Int‘l. Shoe – contact between the forum
(1977) Long-Arm Statutes and the corporation (even in the
FACTS: Heitner, a non-resident of Delaware with 1 share of absence of an actual office, etc.)
stock in the Delaware corporation Greyhound, sued Long-arm statutes specify the kinds of contacts upon which
Greyhound and its officers for allegedly violating its duties. JD will be asserted. Some long-arm statutes broadly b) Mullane – disregards strict distinction
Pursuant to the case, Heitner filed a motion for authorize courts to assert JD in any case not inconsistent between in rem and in personam
sequestration of the defendants‘ stocks in Greyhound. The with the Constitution, leaving it to the court to define its
stocks, while not physically present in Delaware, are limitations on a case-by-case basis. c) Shaffer – minimum contacts between
considered to be there in view of it being the place of the properties and forum; fundamental
incorporation. fairness test
3. Jurisdiction over the Subject-matter
HELD: The Delaware court cannot exercise JD just Long-arm statutes: already identify what are the bases of JD.
because the stocks are statutorily present in Delaware. The Subject-matter JD is allocated among the courts by
property (stocks) is not the subject matter of the litigation constitutional and statutory laws, according to the nature of  Jurisdiction and choice of law do not mean
nor is the underlying cause of action related to the property. the controversy, thereby determining the competence of the the same thing.
Also, the facts in CAB does not demonstrate that defendants court to try and decide a case. _______________
have purposefully availed themselves of the privilege of
conducting activities within the forum state in a way that It is not enough that a court has a power in abstract to try
would justify bringing them before a Delaware court. and decide the case; it is necessary that said power be B. Ways of Dealing with a Conflicts Problem
properly invoked xxx by filing a petition. Subject-matter JD
In Shaffer, the minimum contacts and fundamental fairness cannot be conferred by consent of the parties. The court may deal with a conflicts problem, by:
test should be satisfied regardless of whether the proceedings
are in rem, quasi in rem or in personam. Idonah Perkins vs. Roxas 1) dismissing the case for lack of jurisdiction or on
(1941) the ground of forum non conveniens
FACTS: Eugene Perkins filed a complaint against Benguet
Traditional basis for the exercise of judicial JD is the state‘s Consolidated for the recovery of declared dividends, but 2) assuming jurisdiction and applying either forum or
physical power over persons and property within its territory; Benguet withheld payment upon the opposing claim of foreign law
this is why in in rem proceedings, it can exercise JD over Idonah Perkins, wife of Eugene. Idonah sets up a NY
property situated in the state regardless of whether it could judgment declaring her to be the sole owner of the Benguet
otherwise exercise JD over the persons whose interest would shares and allege that such 1. Dismiss the case
be affected by the decision. judgment is res judicata.
Doctrine of Forum non Conveniens
In the US, there is a shifting trend from theory of territorial HELD: The CFI has jurisdiction over the case, despite the This doctrine requires the court to dismiss the case on the
power to considerations of minimum contacts and presence of the NY judgment. Whether or not the trial ground that the controversy may be more suitably tried
fundamental fairness. This approach demands that there be judge in the course of the proceedings will give validity and elsewhere. This phrase literally means ―the forum is
forum-transaction contacts that will make it fundamentally efficacy to the NY judgment set up by Idonah in her cross- inconvenient.‖
fair to require the defendant to defend a suit in the forum complaint is a question that goes to the merits of the
regardless of his non-resident status. controversy and relates to the rights of the parties as between
each other, and not to the jurisdiction of the court. The fear Reasons for applying forum non conveniens:
Distinction, Shaffer and International Shoe: while that the trial judge may render judgment annulling the final
International Shoe requires minimum contacts between the judgment of the NY court is not a ground to deny the lower 1) to prevent abuse of the court‘s processes (prevent
defendant and the forum, Shaffer demands that minimum court of JD. The test of JD is whether or not the tribunal has harassment of defendant, dissuade a non-resident
5
plaintiff from choosing the forum because of in NY in behalf of the victims. Union carbide moved to HELD: While it is within the discretion of the trial court to
larger jury verdicts, etc.) dismiss on the ground of forum non conveniens. abstain from assuming JD on the ground of forum non
conveniens, it should do so only after vital facts are
2) burdensome on the court or taxpayers (severe HELD: Indian courts have JD, not US courts. Even if UCC established, to determine whether special circumstances
backlog of cases) has domicile in the US, this loses significance because it gave require the court‘s desistance; and the propriety of
its consent to Indian JD. Moreover, the findings of the court dismissing a case based on this principle of forum non
show that the proof bearing on the issues to be tried is conveniens requires a factual determination, hence it is more
3) local machinery is inadequate to effectuate a right almost entirely located in India (principal witnesses and properly considered a matter of defense.
(no way for court to secure evidence and documents, detailed designs, implementation of plans, safety
attendance of witnesses) precautions, etc.). The SC also held in Philsec. Investment vs. CA that the
doctrine of FNC should not be used as a ground for a
4) avoid global forum shopping motion to dismiss because Sec. 1 Rule 16 of ROC does not
Wing On Company vs. Syyap include said doctrine as a ground.
English and Scottish courts have applied FNC when there (1967)
was ―another available and more appropriate forum, in FACTS: Syyap failed pay Wing On, a NY-based
which the ends of justice would be better served in view of partnership, its obligation for a contract of purchase of Forum non conveniens:
the interests of all parties, by eliminating the vexatious or clothing material. Wing On filed an action in the Philippines 1) prevent abuse of court processes
oppressive character of the pending proceedings and by against Syyap, but Syyap contends that the trial court should 2) burdensome on the court/taxpayers
removing any unfairness to either party which would result have declined JD on the ground of forum non conveniens. 3) prevent global forum shopping
from trial in the forum seized of the case.‖
HELD: Forum non conveniens is inapplicable. Unless the  FNC is not something that automatically applies;
Heine vs. New York Insurance Co. balance is strongly in favor of the defendant, the plaintiff‘s its application rests in the sound discretion of
(1940) choice of forum should be rarely disturbed, and the court
FACTS: An action for recovery on life insurance policies furthermore, the consideration of inadequacy to enforce the
made and issued in Germany was filed by German citizens judgment, which is one of the important factors to be  in Wing On vs. Syyap. Prof. Pangalangan does
in Oregon against a NY corporation. considered in the application of said principle, would not agree with the holding that ―unless the
precisely constitute a problem to the plaintiff if the local balance is strongly in favor of the defendant, the
HELD: The Oregon court may refuse to exercise JD. The courts decline to assume JD on the basis of said principle, plaintiff‘s choice of forum should rarely be
courts of Germany and New York are open and functioning considering that defendant is a resident of the Philippines. disturbed‖, because in the first place, it was the
and competent to take JD of the controversies, and service plaintiff who chose that forum.
can be made upon the defendants in either of such JDs. To There is no existing catalogue of circumstances that will _______________
require the defendants to defend the actions in Oregon justify sustaining a plea of forum non conveniens but, in
would impose upon them great and unnecessary general, both public and private interests should be weighed.
inconvenience and expense. The courts of this country are 2. Assume Jurisdiction
established and maintained primarily to determine When the forum is the only state where JD can be obtained
controversies between its citizens and those having business over the defendant and, in addition, some relation with the When the court assumes JD, it may apply forum law or
there, and manifestly the court may protect itself against a parties exists or when the forum provides procedural foreign law, although forum law should be applied whenever
flood of litigation over contracts made and to be performed remedies not available in another state, the forum court may there is good reason to do so because the forum law is the
in a foreign country, where the parties and witnesses are not resist imposition upon its JD. basic law.
nonresidents of the forum, and no reason exists why the
liability, if any, cannot be enforced in the courts of the
country where the cause of action arose, or in the state Bank of America vs. CA Factors which justify the application of internal law:
where the defendant was organized and has its principal (2003)
offices. FACTS: The spouses Litonjua are engaged in the shipping 1) A specific law of the forum decrees that
business; they executed a contract where Bank of America internal law should apply
In re: Union Carbide was made the trustee of their businesses. But the businesses
(1986) suffered losses in the hands of the bank, so the spouses filed Examples of this are Art. 16 of Civil Code (lex nationale
FACTS: An industrial disaster in a chemical plant of Union a case for damages for breach of trust and accounting of governs testate and intestate succession of the person whose
Carbide in Bhopal, India caused deaths and injuries to a revenues in the Philippines. Bank of America filed a Motion succession is under consideration); Art. 829 of the Civil
number of residents. India enacted the Bhopal Gas Leak to Dismiss on the ground of forum non conveniens. Code (revocation of wills outside RP); and Art. 819
Disaster Act, which authorized the government (Union of (prohibition on joint wills by Filipinos).
India) to represent the victims. The UOI filed a complaint
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 Example: prohibitory or mandatory laws of her counsel. In addition, the other heirs do not dispute the
the forum provisions of the Nevada law. Under these circumstances,
the pertinent laws of Nevada can be taken judicial notice of B. Approaches to Choice of Law
2) The proper foreign law was not properly by the court, without proof of such law having been offered
pleaded and proved at the hearing of the project of partition. Ideally, the object of all choice of law theories must be
justice and predictability.
Our courts may not take judicial cognizance of any foreign As the validity of the testamentary dispositions are to be
law; hence, failure to plead and prove foreign law leads to governed by the national law of the testator, the order of the 1. Traditional Approaches
the presumption that it is the same as forum law. court approving the project of partition in accordance with - theories that emphasize simplicity, convenience
Nevada law must be affirmed. and uniformity
 Under the Rules of Court, the foreign law
may be proved by: 3) The case falls under any of the exceptions to a. vested rights theory
a) official publication the application of foreign law
b) certification form the officer with official - advanced by Prof. Beale (1 Restatement)
st

custody, under seal, and the Phil. Embassy a) The foreign law is contrary to an important - an act done in a foreign jurisdiction gives rise to a
must certify that such officer has official public policy of the forum right if the laws of that state provides so. The right
custody, etc.: that it is the law in force at the b) The foreign law is penal in nature vests and he can bring suit in any forum he
time etc., etc. c) The foreign law is procedural in nature chooses.
d) The foreign law purely fiscal or - The forum refers law of the place of the ―last act‖
administrative in nature necessary to complete the cause of action. (place
Fleumer vs. Hix e) The application of the foreign law will work of injury)
(1930) undeniable injustice to the citizens of the - If place of the last act creates no legal right,
FACTS: Fleumer, the special administrator of the estate of forum although forum court creates such right if act is
Hix, appealed the denial of the probate of Hix‘s will, alleging f) The case involves real or personal property done within its territory, it will not enforce the
that since the will was executed in West Virginia by a situated in the forum right.
resident therein, West Virginia law should govern. g) The application of the foreign law might
endanger the vital interest of the state Gray vs. Gray
HELD: The courts of the Philippines are not authorized to h) The foreign law is contrary to good morals (1934)
take judicial notice of the laws of the various States of the FACTS: Wife (W) sued husband (H) for damages in New
American Union. Such laws must be proved as facts. Here Hampshire where they are residents. Accident happened in
the requirements of law were not met. There was no V. Choice of Law Maine. Maine bars suit between spouses.
showing that the book from which an extract was taken was
printed or published under the authority of the state of West A. The Correlation between Jurisdiction and Choice HELD: The effect of the prohibition in Maine is to divest
Va. as provided in the Code of Civil Procedure; nor was the of Law the W of any cause of action against H. If there is a conflict
extract from the law attested by the certificate of the officer between lex fori and lex loci, lex loci governs in torts in
having charge of the original. 1) The factors that justify exercise of judicial respect to the legal effect and incidents of the act.
jurisdiction maybe the same factors used to
determine choice of law
Philippine Trust Co. vs. Bohanan The status as spouses is determined by New Hampshire law
(1960) 2) if the forum applies its internal law because it but the incidents of that status is governed by the law of the
FACTS: The will of Bohanan was admitted to probate; in has a real interest, the outcome of the case place of the transaction (Maine).
the probate he was declared to be a citizen of Nevada. In the will be foreordained by the forum
hearing for the proposed project of partition, Nevada law - plaintiff will choose forum who has real interest in
was not introduced. Bohanan‘s widow questioned the applying its internal law Alabama Great Southern Railroad vs. Carroll
validity of the will under Philippine law; however, if Nevada (1892)
law was to be applied, the will would be valid. 3) generally, forum will apply its internal law so FACTS: Carroll is an employee of Alabama RR. Both are
plaintiff will bring suit where internal law is residents of Alabama. C was injured in the course of work
HELD: The law of Nevada, being a foreign law, can only be favorable to him bec. of negligence of co-EE in Mississippi. Mississippi bars
proved in our courts in the form and manner provided for recovery. Alabama makes employer liable. Suit is filed in
by our Rules. However, it has been found that during the BUT these are 2 diff. concepts. A court may exercise Alabama.
hearing for the motion of the widow Bohanan for withdrawal jurisdiction but apply foreign law or not exercise jurisdiction
of her share, the foreign law was introduced in evidence by but the state‘s internal law will be applied.
7
HELD: There can be no recovery in one sate for injuries to i. needs of the interstate and intl system
the person sustained in another unless the infliction of the ii. relevant policies of the concerned states Haag vs. Barnes
injuries is actionable under the law of the state in which the iii. relevant policies of other interested (1961)
injuries were received. states FACTS: Barnes & Haag had an affair in NY. H became
Although it is claimed that the negligent conduct was done in iv. protection of justified expectations of pregnant. After giving birth, H went to Chicago. Parties
Alabama, the injury sustained creates the cause of action and the parties entered into a support agreement in Chicago. The
not the negligence. (law of the place of injury) v. basic policies underlying the particular agreement contained a choice of law clause (Illinois). H &
field of law child went back to live in NY. H filed support action in NY
Criticisms to the Approach: failure to resolve conflicts cases vi. certainty, predictability and uniformity against B. Under NY law, agreement is not binding. B‘s
with considerations of policy and fairness. of result defense: Illinois agreement bars suit.
vii. ease in the determination and
application of law to be applied
b. Cook‘s Local Law Theory HELD: Suit is barred by the prior support agreement. Court
found that Illinois has the most significant contacts. It is what
Examples of application: the parties intended to apply, the place of performance, the
- treat conflicts cases as a purely domestic case that
place of business of B & the agents and the place where
does not involve a foreign element i. torts – place of injury, place of tortious support are being made compared to NY whose contacts are
- power of a state to regulate within its territory has conduct, domicile, residence or of less weight & significance. (place of liaison & residence of
no limitation except as imposed by its own positive nationality of parties, place where H & child)
law relationship is entered
- criticism: appeals to narrow-mined who favors an ii. contracts – choice of law of the parties, Criticisms to approach: no standard to evaluate the relative
exaggerated local policy bec a sovereign can do as place of contracting, place of significance/importance of each contact such that court may
they please, depreciating the practical and performance, domicile, residence, use approach to support any preconceived result without
equitable considerations that should control the nationailty, place of incorporation and explaining its real motives.
case. place of business
b. Interest Analysis
c. Caver‘s Principles of Preference Auten vs. Auten
- resolve conflicts cases by looking at the policy
(1954)
behind the laws of the involved states and the
- choice-of-law decisions should be made with FACTS: Spouses were married and lived in England. H left
interest each state has in applying its own law.
reference to principles of preference which are and went to NY. Spouses executed support agreement in
- Tasks of the court:
conceived to provide a fair accommodation of NY. H failed to pay support. W sued H for legal separation.
1 : determine whether the case involves a true,
st

conflicting state policies and afford fair treatment W sued in NY to enforce agreement. H claimed that legal
false or apparent conflict (false conflict: only one
to the parties. separation suit, extinguished liability under NY law.
state has an actual interest in having the law
- Caver‘s principles have a territorialist bias; it looks
applied and the failure to apply the other state law
to the place where the significant events occurred HELD: English law should govern the parties. England has
will not impair its policy)
or where the legal relationship is centered. all the truly significant contacts while the nexus to NY is
2 : if there is apparent or true conflict, court
nd

- Court should: entirely fortuitous.


should take a second look on the policies and
1) scrutinize the event/ transaction giving rise to interests of the states. If only one has a real
the issue England is the seat of marital domicile and the place where
interest, the other is insubstantial, then there is
2) compare carefully the proffered rule of law & W & children were to be, it has the greatest concern in
false conflict. If both have real interests in applying
the result of its application with the rule of defining and regulating the rights and duties existing under
their law, then the apparent conflict is a true
the forum & its effect the agreement and the circumstances that affect it. Whereas
conflict.
3) appraise these results from the standpoint of NY is only the place of the agreement and where the trustee,
justice between the litigants or of where moneys will be paid for the account the W &
considerations of social policy children, had his office.
Babcock vs. Jackson
(1963)
2. Modern Approaches In applying the ―grouping of contacts‖ theory, courts, instead
FACTS: Babcock & Jackson, NY residents, met a car
of regarding as conclusive the intention of the parties or the
accident in Ontario thru J‘s fault. B sued J in NY for
a. Place of the Most Significant place of making or performance, lay emphasis rather on the
damages. Ontario bars recovery under a guest statute. NY
Relationship law of the place which has the most significant contacts with
does not have a similar rule.
the matter in dispute.
-identifies a plurality of factors:
8
HELD: B should be allowed to recover. NY had a greater & - HOW? Court should consider whether the law of
more direct interest than Ontario. NY‘s policy is to afford a state reflects an ―emerging‖ or ―regressing‖ Art 16: Real property as well as personal property is subject
compensation to a guest against tortfeasor host while policy. to the law of the country where it is situated.
Ontario‘s policy is to prevent fraudulent collusion to the
prejudice of Ontario defendants-insurance companies. e. Leflar‘s Choice-Influencing However, intestate and testamentary succession, both with
Thus, Ontario had no interest in denying a remedy to a NY Considerations respect to the order of succession and to the amount of
guest against a NY host. successional rights and to the intrinsic validity of
5 major choice-influencing considerations testamentary provisions shall be regulated by the National
The rule on tort claim is: 1) predictability of results law of the person whose succession is under consideration,
Where the issue involves standard of conduct, law of the 2) maintenance of interstate and int‘l order whatever may be the nature of the property and regardless of
place of the tort is controlling, but as to other issues, court 3) simplification of the judicial task the country wherein said property may be found. (AOI)
must apply the law of the state which has the strongest 4) application of the better rule of law
interest in the resolution of the issue presented. 5) advancement of the forum‘s governmental Art 17: The forms and solemnities of contracts, wills, and
interest other public instruments shall be governed by the laws of the
- court should prefer a law that make good country in which they are executed.
Criticisms to Approach: not all state legislatures publish
socioeconomic sense and are sound in view of
reports that explain the background and purpose of the laws, When the acts referred to are executed before the
present day conditions
thus court is left to speculate on the purpose of the law and diplomatic or consular officials of the Republic of the
- Criticism: no principled or objective standard to
not all reflected policy or had a purpose other than to decide Philippines in a foreign country, the solemnities established
determine ―better rule‖.
cases. by Philippine laws shall be observed in their execution.

Prohibitive laws concerning persons, their acts or property,


Traditional approaches do not consider policy; all modern and those which have for their object public order, public
approaches look at policy. policy and good customs shall not be rendered ineffective by
 Pangalangan on Interest analysis: why consider laws or judgments promulgated, or by determinations or
what the state wants when interests of individuals ______________
conventions agreed upon in a foreign country.
are in issue?

VI. The Problem of Characterization The rules specify geographical location in accordance with
traditional approach. The problem with this: inherent
c. Comparative Impairment rigidity, unjust decisions.

- subordination of the state objective which would A. Characterization and the Single-Aspect Method
Solution: Characterization, Renvoi, Escape devices
be least impaired
Single-aspect method: choice of law theories traditionally
- How? Court should weigh conflicting interests and Characterization: the process by which a court assigns a
concentrated on one element of a situation to connect case
apply the law of the state whose interest would be disputed question to an area in substantive law. It is a part of
to particular legal community.
more impaired if its laws were not followed legal analysis and a pervasive problem since at least 2
Goal: simplicity, convenience, uniformity
jurisdictions with divergent laws are involved.
Multi-aspect method: modern approach by which all
important factors (non/territorial) are analyzed.
d. Trautman‘s Functional Analysis Two Types of Characterization:
The applicable law is arrived at by elaborating policies &
- this approach looks into: purposes underlying rules, and the needs of international 1. Subject-matter Characterization
1) the general policies of the state beyond those intercourse.
reflected in substantive law This calls for classification of a factual situation into a legal
2) policies and values reflecting effective and Goal: just resolution of case category. It is significant in a single-aspect method because
harmonious relationship between states the legal category to which an issue is assigned determines
ex. Reciprocity, advancement of multistate The Philippines follows single-aspect method. Our conflicts governing law
activity, protecting justifiable expectations, rules are mostly found in the Civil Code.
evenhandedness and effectiveness. Gibbs vs. Gov‘t. of PI
- after determining these policies, court should then Art 15: Laws relating to family rights & duties, or to the (1933)
weigh the relative strength of a state policy status, condition and legal capacity of persons are binding FACTS: Spouses Allison & Eva were residents & citizens of
upon citizens of the Philippines, even though living abroad. California owning parcels of land in Manila. Eva died.
9
Allison, as administrator files petition to declare lands in his 2. Tortious: law of the place where tortuous wrong resulting to a physical injury shall not abate because of
favor pursuant to California law. California Civil Code conduct or injury occurred the death of the wrongdoer. Plaintiff‘s cause of action
provides that upon wife‘s death previous to husband, survives Pullen‘s death.
community property belongs absolutely to husband.
2. Substance-Procedure Dichotomy
HELD: California Civil Code will not apply. The law of the The reaction to Grant was generally negative. It was
place where land is situated governs its descent, alienation Directs the court to the extent it will apply foreign law. criticized as being based on an erroneous characterization
&transfer & for the effect & construction of wills & other greatly influenced by ―sympathy‖.
conveyances. If issue substantive: court may apply foreign law
If issue procedural: follow forum law Other view: Correct result but arrived at using dubious
As mandated by Philippine law, the lands were acquired as method.
community property in the conjugal partnership. The wife Why apply forum law to matters of procedure?
was vested with a title equal to that of her husband. Upon Currie: The court availed of one of several escape devices -
her death, if there are no obligations of the decedent, her One of the main goals of a rational system of CL rules: characterization. It characterized the problem differently,
share in the conjugal property is transmitted to the heirs by Rights & Duties of parties arising from a legal situation shall such producing the result previously recognized as the sound
succession. not be substantially varied because the forum in w/c action is result.
brought.
This device is not ideal. It is better if courts could expressly
Though the court was silent on the matter of Courts of all civilized states now seek to protect parties, by state the considerations that helped them determine the
characterization, it had the task of categorizing the issue as referring to foreign law, against a substantial change of results and indicate clearly how these considerations will be
one involving: position because of fortuitous circumstance that suit was used in other cases.
b) property to be governed by lex situs, or brought in that forum.
c) succession to be governed by decedent‘s No objective standard has been suggested. An attempt to
national law (California) The means provided for compulsion, or the limitation upon explain the court decision in terms of ―demands of justice‖
compulsion are in most cases of equal practical importance or ―social policy‖ would create uncertainty & arouse
Characterization problems are considered a threat to to the declaration of the validity of the plaintiff‘s claim. criticism.
traditional choice-of-law theories whose aims are uniformity
& predictability of results. Such all inclusive reference to foreign law is never made. It Procedural issues are governed by forum law so that the
would be too burdensome on the part of the forum and court will not be unduly burdened by task of studying
Problems: administration of justice will be delayed. Thus, it is necessary peculiarities of another legal system. It must be noted,
to limit the scope of reference to foreign law. though, that some matters cannot be clearly defined as
A) C, is adopted in the Philippines by a former Filipino procedural or substantive.
citizen and moves to the US with her adoptive mother, M. This limitation excludes phases of the case which make the
By M‘s laws, C will not be an heir. Will C be entitled to an administration of foreign law inconvenient or violative of
intestate share in M‘s estate? local policy. In such instances, local rules of the forum are Two Issues whose classification (as procedural or
applied & are classified as matters of procedure. substantive) is debatable:
The court would have to decide whether it is a Q relating to
1. Legality & effects of adoption: law of state where 1) Statute of Frauds
legal relationship of adoption was established or where the Grant vs. Mcauliffe It is considered substantive if words of law relate to
adoption decree was granted shall govern; or (1953) forbidding the creation of obligation. One that forbids the
FACTS: Plaintiffs, Grant, et al., (California residents) were enforcement of the obligation is characterized as procedural
2. Succession: adopter‘s personal law shall prevail injured in Arizona when their vehicle collided with that of
Pullen‘s (California resident), who died of accident. The Marie vs. Garrison: Defendant maintains that the NY
B) Principal authorizes a person to act as his agent in suit against estate of Pullen filed by Grant to recover Statute of Frauds affects the remedy upon a contract w/in its
another country. Agent commits a negligent act. What law damages was dismissed because under Arizona law- ―a tort terms—a rule prescribing evidence & deemed a rule of
will determine the principal‘s liability? action not commenced before the death of the tortfeasor procedure. Garrison claims that rules of the forum must be
It depends on the court‘s characterization of the case as: must be abated‖. But under California law, an action for tort followed. Marie claims that NY law was constructed as a rule
survives the death of tortfeasor. of substance going into existence of contract; determined by
1. Contractual: law of the place where the contract lex loci contractus.
of agency was entered into; or HELD: Survival statutes are procedural. Thus, California
(forum) law applies. Forum law governs if issue is
procedural. Under California Civil Code the action out of a
10
Issue: Whether a contract declared ‗void‘ by a stature still of treating the foreign statute of limitation as one of
subsists as a contract w/ the only effect of depriving party of a substance. Under the ROC of the Philippines, it is provided HELD: The law of the domicile ought to be applied in any
remedy or mere evidence. that ―if by the laws of the state or country where the cause of issue of incapacity to sue based upon family relationship.
Held: It was a word of substance because the statute action arose, the action is barred, it is also barred in the The policy reason for denying the capacity to sue
provided that the contract of sale of any interest in land shall Philippines.‖ The Bahrain law on prescription should apply. (preventing family discord) more properly lies within the
be void unless it was in writing ex contrario to a law stating However, it cannot be enforced as it would contravene the sphere of family law, where domicile usually controls the law
that ‗no action shall be brought‘ of the requirement was not public policy on the protection to labor. Philippine law will to be applied, than it does tort law, where the place of the
complied with. then be applied. injury generally determines the substantive law which will
govern.

2) Statutes of Limitations (SL) & Borrowing Statutes B. Depecage


The court decided that the law of the place of accident
Statutes of limitations are traditionally classified as From depecer, which means ―to dissect.‖ (California) governed the issue of negligence while
‗procedural‘ because they only barred the legal remedy Wisconsin law governed the issue of interspousal immunity.
w/out impairing the substantive right involved. Different aspects of a case involving a foreign element may The characterization process was taken one step further by
be governed by different systems of laws. not limiting the classification to the case itself but likewise, to
Thus, a suit can still be maintained in another JD w/c has a the issue arising from the case.
longer SL. However, certain SL‘s have been classified as Von Mehren & Trautman: A man dies intestate domiciled
substantive for conflicts purposes if providing a shorter in state A & w/ movable properties in State B. The 1969 Restatement 2d adopted depecage & set out a
period for certain claim types falling w/in wider class covered number of factors to be considered in choosing the
by the general SL. How will the man‘s estate be divided? applicable law:
State A conflict rules refer to laws of domicile. Intestate law
Specificity test: to determine whether an SL is substantive or of State B gives the widow a definite share in the estate of a. needs of interstate & international system
procedural. deceased. But the determination of WON the woman
claiming the share is a ―wife‖ is referred to family law, not b. relevant policies of the forum
An SL of a foreign country is treated as ―substantive‖ when laws on succession.
limitation was directed to newly created liability so c. relevant policies of other interested states & the
specifically as to warrant saying that it qualified the right Issues of law governing movable properties & successional relative interests of those states in the
rights of spouse are of primary importance, embodying determination of a particular issue
substance of claim. Validity of marriage ‗affects solution
Borrowing statutes because it answers a preliminary or incidental Q. d. protection of the justified expectations of the
Purpose: Many states, the Philippines among others, have parties
passed borrowing statutes to eliminate forum-shopping. The presence of an incidental Q is one instance which calls
for the employment of depecage. e. the basic policies underlying the particular field of
However, in the case of Cadalin, the court said that to law
enforce the borrowed statute would contravene public policy Merits of Depecage:
on protection of labor. This technique allows other relevant interests of parties to be f. certainty, predictability, uniformity of results, and
addressed. Thus, it permits courts to arrive at a functionally
sound result w/out rejecting the methodology of the g. ease in determination & application of law to be
Cadalin vs. POEA Administrator traditional approach. This nuanced single-aspect method applied
(1994) employs depecage by choice.
FACTS: Cadalin et al. instituted a class suit with the POEA The consideration of any elements & acceptance by courts
for money claims arising from their recruitment by AIBC of depecage help ease restrictions of single aspect method.
and BRII for pretermination of employment contracts. Haumschild vs. Continental Casualty
Under Bahrain law where some of the complainants were (1959) Courts not compelled to apply entire law to all aspects of
deployed, the prescriptive period for claims arising out of a FACTS: Haumschild and Gleason were married in case…that might produce egregious results. Cutting up the
contract of employment is one year. Wisconsin, their domicile. Haumschild was injured in case issue by issue is fair & reasonable.
California while riding a motor truck driven by Gleason.
HELD: Even though a law on prescription may be Their marriage was later annulled. An action for recovery of But even if a useful tool in modern choice-of-law analysis,
considered as substantial or procedural, its characterization damages was filed by Haumschild in Wisconsin. Continental the express reference to depecage in case law, both in US &
as either becomes irrelevant when the country of the forum alleges that under California law, a spouse is immune from the Phil still uncommon.
has a ―borrowing statute.‖ Said statute has the practical effect suit by the other spouse.
11
2) the court may accept the renvoi and refer not just disposed of all her property in favor of her daughter, and
to another state‘s ―internal‖ law but to the ―whole‖ stipulated that she had no intention of abandoning her
VII. The Problem of Renvoi law (includes choice-of-law rules applicable in domicile in England. If she was a domiciliary of France, she
multi-state cases) could only dispose of 1/3 of her personal property.

A. Definition HELD: The domicile of the testatrix at the time of her death
Aznar vs. Garcia was French. Applying English law, the fact of her residence
Renvoi – a procedure whereby a jural matter presented is (1963) in France coupled with animus manendi showed her
referred by the conflict of laws rules of the forum to a FACTS: The will of Edward Christensen, a domiciliary of intention to abandon her English domicile even if she had
foreign state, the conflict of laws rule of which, in turn, refers the Philippines, was admitted to probate, and a project of not complied with the formalities required under French law
the matter to the law of the forum or a third state. partition was proposed. Edward‘s illegitimate child opposed to become a French domicile.
the project of partition on the ground that the distribution of
Remission: reference is made back to the law of the forum the estate should be governed by Philippine law. The lower According to French municipal law, the law applicable in the
court found that Edward was a US citizen; hence the case of a foreigner not legally domiciled in France is the law
Transmission: reference to a third state successional rights and intrinsic validity of the will should be of that person‘s nationality, which is British. But British law
governed by California. refers the question back to French law, the law of the
Renvoi has been employed in cases where the domiciliary domicile. And according to French law, the French courts,
and nationality laws are applied to the same individual in HELD: Philippine law should apply. Art. 16 of the Phil. in administering the movable property of a deceased
issues involving succession, domestic relations and real Civil Code provide that the national law of the decedent foreigner who, according to the law of his country is
properties. governs the validity of his testamentary dispositions. Such domiciled in France, and whose property must, according to
national law means the law on conflict of laws of the that law, be applied in accordance with the law of the
Renvoi: California code, which authorizes the reference or return of country in which he was domiciled, will apply French
the question to the law of the testator‘s domicile. The municipal law, even if he had not complied with the French
conflict of laws rule in California precisely refers back the requirements for acquisition of domicile.
State A State B
case, when a decedent is not domiciled in California, to the
(RP) law of his domicile (the Philippines in the CAB). The Phil.
court must apply its own law as directed in the conflict of
laws rule of the state of the decedent. Options which the forum court may do:
Art. 16 Internal law a) accept the renvoi (apply forum law)
CC b) reject the renvoi (apply the internal law of the
3) by desistance or mutual disclaimer of JD – the foreign state)
Conflict-of-
same result as the acceptance of the renvoi c) desistance/mutual disclaimer
laws rule
doctrine but the process used by the forum court d) ―foreign court‖ theory
is to desist applying the foreign law. - the difficulty with the foreign court theory is that
the forum court will have to anticipate or guess
4) ―foreign court‖ theory – the forum court would how the foreign court will act.
assume the same position the foreign court would  Renvoi is optional, based on the discretion of the
B. Various ways of dealing with the Problem of take were it litigated in the foreign state
Renvoi court and the facts of the case.
_______________
Disadvantage to renvoi: if both courts follow the same
theory, there would be no end to the case since the courts
4 Ways of Dealing with the Problem of Renvoi (Prof. would be referring it back to each other. It gives rise to
Griswold): C. Usefulness of Renvoi
situations that have been invariably described as resembling
―revolving doors,‖ a ―game of lawn tennis,‖ a ―logical cabinet Renvoi has been used to avoid unjust results.
1) if the conflicts rules of the forum court refer the of mirrors‖ or a ―circulus inextricabilis.‖
case to the law of another state, it is deemed to
mean only the ―internal‖ law of that state (internal
law: that which would be applied to a domestic University of Chicago vs. Dater
Annesley, Davidson vs. Annesley (1936)
case that has no conflict-of-laws complications) – (1926)
rejects the renvoi FACTS: Mr. and Mrs. Price executed a trust deed and
FACTS: The testatrix, a British subject, was a domiciliary of promissory notes in favor of University of Chicago, for a
France according to British law, but not according to French loan secured by Mr. Price and Mr. Dater. They were
law. She made a will in English form. In the will she residents of Michigan; the mortgage and the notes were also
12
signed there and sent by mail to Chicago. In a suit filed by reference back (renvoi) to Philippine law, but would still
the University in Michigan against the spouses Dater and refer to Texas law.
Mrs. Price (Mr. Price having died earlier), the court ruled Inapplicability of Renvoi in a False Conflict
that there was no cause of action against Mrs. Price, because
under Michigan law a married woman has no capacity to US Restatement (Second) of Conflict of Laws: renvoi to be
enter into an obligation such as this, hence the note and trust used when there is a disinterested forum, to ensure that only VIII. Notice and Proof of Foreign Law
deed were void. The question is which law should be the laws advancing the policies of the interested states will be
applied, Michigan or Illinois law. applied. If the choice-of-law rules of the state to which
reference is made refers the case back to the forum state, the A. Extent of Judicial Notice
HELD: Under the law of Illinois, the capacity of Mrs. Price court may use this situation to determine if both states have
is governed by Michigan law (as held in the similar case of an interest in having their laws applied or if there is merely a It is the party whose cause of action or defense depended
Burr vs. Beckler, where the court said that since the contract false conflict. upon the foreign law who has the burden of proving the
was completed in Florida, that state governed her capacity to foreign law.
contract). In this case, the contract was complete in
Michigan, and it governs her capacity to contract. Since she Pfau vs. Trent Aluminum Co. Foreign law is treated as a question of fact that should be
was not competent to contract under Michigan law, her note (1970) properly pleaded and proved
and trust deed were void. FACTS: Trent (a New Jersey domiciliary) agreed to drive
Pfau (a Connecticut domiciliary) to Missouri. While in Iowa, In the Phils., judicial notice may be taken of a foreign law
they had a vehicular accident causing injuries to Pfau. Pfau with which the court is evidently familiar. (Delgado vs.
In the Dater decision, Michigan protected the interest of a filed suit in New Jersey against Trent Aluminum Co. Republic) Such familiarity may be because the law is
Michigan wife especially since Illinois disclaimed any desire (registered owner of the car) for the damages he sustained generally known such as American or Spanish Law from
in applying its law. Also, uniformity of results was promoted while a passenger in Trent‘s car. The defense of Trent which Phil law was derived or the judge had previously ruled
in spite of discrepancies in the choice-of-law rules of the Aluminum was that Iowa law is applicable, which provides upon it in other cases.
involved states. With renvoi, the Dater decision was made that the host-driver is not liable to his passenger-guest for
dependent on substantive law and not on the incidental law ordinary negligence. In US, courts are allowed to take judicial knowledge of the
of the forum. law of sister states.
HELD: Connecticut and New Jersey law both allow
passenger-guest recovery. It appears that Connecticut‘s
Objections to Renvoi substantive law allowing a guest to recover form his host‘s B. Proof of Foreign Law
ordinary negligence would give it a significant interest in
Critics: having that law applied to this case. Since Iowa has no Foreign law may be proved by presenting either of the ff:
1) renvoi would place the court in a ―perpetually- interest in this litigation, and since the substantive laws of 1. an official publication of the law
enclosed circle form which it would never emerge Connecticut and New Jersey are the same, this case presents 2. a copy of the law attested by the officer having
and that it would never find a suitable body of a false conflict and the Connecticut plaintiff should have the legal custody of the record or by his deputy. If the
substantive rules to apply to a particular case.‖ right to maintain an action for ordinary negligence in New record is not kept in the Philippines, it must be
The theoretical problem presented is that renvoi is Jersey. accompanied with a certificate that such officer has
workable only if one of the states rejects it and that the custody (by the consular officer of the Phil
it achieves harmony of decisions only if the states embassy in said state and authenticated by his seal
concerned do not agree on applying it the same Bellis vs. Bellis of office)
way. (1968)
FACTS: The probate of the will of Texas citizen and
Griswold: the objection is based on a false premise; as long domiciliary Amos Bellis was opposed by his 3 illegitimate Proof of documents executed abroad: any public document
as remission is to the state‘s internal law alone there will be a children in the Philippines for depriving them of their executed abroad to be used in the Phils must be duly
stop to the ―endless chain of reference.‖ compulsory legitime. However, the trial court ruled that authenticated by the Phil. consul attaching his consular seal
under Art. 16 of the Phil. Civil Code, the national law of the Depositions of non-residents in a foreign country: they may
2) Courts may be unnecessarily burdened with the decedent is to be applied in testamentary succession. The be taken—
task of identifying the choice-of-law rules of law of Texas did not provide for legitimes.
another state. 1) on notice before a secretary of embassy or
HELD: Texas law should apply. The decedent was both a legation, consul general, consul, vice-consul, or
Pangalangan: from a practical perspective, the forum court national and a domiciliary of Texas, so that even assuming consular agent of the Phils.
will not use renvoi if, in the first place, it cannot ascertain Texas has a conflict of law rule providing that the law of the
what the conflict-of-law rules of the foreign state are. domicile should govern, the rule would not result in a
13
2) before such person or officer as may be appointed 2. apply law of the forum (courts conclude that by failing of L may still be pursued, as there are 3 presumptions that
by commission or under letters rogatory. to adduce proof, parties acquiesce to the application of the court may apply in the CAB. These are:
the forum law since it is the basic law) 1, French law is the same as law of the
3) before such person which the parties have forum
stipulated in writing 3. assume foreign law is the same as law of the forum 2. French law, like all civilized countries, recognizes
(processual presumption) certain fundamental principles (taking of a loan
creates obligation to repay)
PCIB vs. Escolin 3. By failing to prove French law, parties acquiesce to
(1974) First approach: Dismiss the case apply forum law
FACTS: Case bet. the administrators of the estates of The third presumption does not present any difficulties for
Hodges spouses. W‘s administrator sought the application of it to be universally applied regardless of the nature of the
Texas law. H‘s administrator also used the Texas law but Walton vs. Arabian Oil Co. controversy. This is more favored by the authorities and has
arrived at a different conclusion. (1956) been followed in Sturm v. Sturm.
FACTS: Walton, US citizen, was injured in Saudi Arabia. In CAB, Rights of the parties are to be determined by New
HELD: Case remanded for parties to present proof of the His complaint did not allege the Saudi Arabia law nor did he Jersey laws which permit recovery on the facts proven.
applicable Texas law. The question of what are the proved the same during the trial. TC ruled in favor of
applicable laws of Texas is one of fact and not of law. defendant as he did not take judicial notice of S. Arabian
Foreign laws may not be taken judicial notice of & have to be law. Zalamea vs. CA
proven like any other fact in dispute between the parties in (1993)
any proceeding with the rare exception in instances when the HELD: Because of failure to prove the foreign law, plaintiff FACTS: Zalamea filed action for damages against TWA.
laws are within the actual knowledge of the courts, such as loses. RTC awarded actual and moral damages. CA denied award
when: Plaintiff has the burden of proving the law of Saudi Arabia of moral damages because there was no fining of bad faith
a. they are well and generally known from which he shall base his claim because under NewYork and because overbooking was an allowed practice in US
b. they have been actually ruled upon in other law, where action was instituted, lex loci delicti is the airlines.
cases before it and none of the parties claim substantive la applied in tort cases.
otherwise A court abuses its discretion under the New York Civil HELD: CA was wrong. The US law or regulation
Practice Act if it takes judicial notice of the foreign law when authorizing overbooking was not proved in accordance with
it is not pleaded esp. when the party who had the burden to our laws.
prove the same has not assisted the court in judicially
In Re Estate of Johnson  TWA relied solely on the statement of its agent that the
(1918) learning it.
Code of Fed. Regulations of Civil Aeronautics Board
FACTS: In the hearing for the probate of the will of J,  The applicable tort principles necessary to establish allows overbooking.
alleged to be made in accordance with the laws of Illinois, plaintiff‘s claim are not rudimentary. In countries where  No official publication of the said code was presented
TC judge took judicial notice of the said foreign law. common law does not prevail, these principles may not as evidence.
exist or maybe vastly different.
HELD: Trial court judge erred in taking judicial notice.
Written law maybe evidenced by an official publication
 The judge cannot take judicial notice of the acts of the
Second approach: apply forum law, conclude that parties thereof or by a copy attested by the officer having legal
Legislative Department of US particularly the various
acquiesce to its application. custody of the record or by his deputy, accompanied by a
laws of the American states.
certificate (made by a Phil. consular officer and
 Likewise, Phil. courts cannot take judicial notice of the authenticated by his seal of office) that such officer has legal
same under ―matters of public knowledge‖. custody.
Leary vs. Gledhill
 The proper rule is to require proof of the Statute (1951)
whenever it is determinative of the issue/s in Phil. FACTS: Leary instituted this action in New Jersey to recover Third approach: processual presumption
courts. the loan contracted in France against G. G moved to dismiss
on the ground that L‘s proof were insufficient as there is no
pleading or proof of the law of France where the transaction Miciano vs. Brimo
Effects of Failure to Plead and Prove Foreign Law occurred. (1924)
FACTS: Action for partition of estate of Brimo, a Turkish
Forum court may: HELD: L can recover despite failure to prove French law. citizen. Oppositor claims that proposed partition is contrary
1. dismiss the case for inability to establish cause of action Altho the court recognizes the fact that France adopts civil to Turkish law but he failed to prove & present evidence on
law rather than common law principles, the cause of action the said Turkish law.

14
HELD: In the absence of evidence on foreign law, they are Board of Commissioners vs. CID
to be presumed the same as those of the Phils. Oppositor, (1991) 1. The foreign law is contrary to an
himself, acknowledges that the foreign law was not proven FACTS: Board sought the deportation of G who is alleged important public policy of the forum
when he asked for opportunity to present evidence. He was to be an alien. Marriages of G‘s grandfather and of G‘s
granted ample opportunity to present competent evidence father all performed in China were not properly proven. ―public policy‖: no subject or citizen can lawfully commit
and there was no GAOD when the court refused to grant any act which has a tendency to be injurious to the public or
him another opportunity. Only self-serving testimonies were allegedly presented. Also, against the public good.
marriages are claimed to be void according to Chinese law.
―public policy technique‖: court declines to give due course
Suntay vs. Suntay HELD: In the absence of evidence to the contrary, foreign to a claim existing under a foreign law because it considers
(1952) laws are presumed to be the same as those of the Phils. In the nature of the claim unconscionable or its enforcement
FACTS: A will executed in Amoy by the deceased is sought CAB, there being no proof of Chinese law on marriage, the will violate a fundamental principle of justice, good morals
to be allowed in the Phils. The will was allegedly recorded presumption arises. The Phils. adhere to the presumption of or some deep-rooted tradition.
and probated by a district court in Amoy. validity of marriage (A.220 FC) He who asserts the marriage
is not valid under our laws bears the burden of proof to dismissal on the ground of public policy is not dismissal on
HELD: Will cannot be allowed. Silvino was unable to present the foreign law. the merits and plaintiff can go elsewhere to file his claim.
adduce the necessary proof under Secs. 1-3 of Rule 78 in
order to probate the will in the Philippines, specifically: In deciding whether to apply forum law or to dismiss the
a. the fact that the municipal court of Amoy is a probate case/rule against the party who failed to prove the foreign Pakistan Intl Airlines v. Ople
court law, court must consider the ff: factors (1990)
b. the procedural law of China regarding probate of wills FACTS: 2 Filipino stewardess-employees of PIA filed a case
c. the legal requirements for the execution of a valid will a. degree of public interest involved for illegal dismissal against their employer in DOLE. PIA‘s
b. accessibility of foreign law materials to the parties defense is that under the contract of employment, the parties
Although there were unverified answers of the Consul c. possibility that plaintiff is merely forum shopping agreed that the EE-ER relationship shall be governed by the
General of China, his answers are inadmissible because: d. similarities between forum law and foreign law on the contract (which provided that Pakistan law shall apply) and
a. he does not qualify as an expert on Chinese law on issue involved not the Labor Code.
probate procedure (usu. attend to trade matters), and
b. if admitted, the adverse party will be deprived of their HELD: Public Interest standard was applied. Pakistan law
right to cross-examine him C. Exceptions to the Application of Foreign Law cannot be invoked to prevent the application of Phil labor
Thus, in the absence of proof, it may be presumed that the laws and regulations to the subject matter of the case. The
probate laws of China are the same as ours and the will in 1) The foreign law is contrary to an important public ER-EE relationship is much affected with public interest,
question does not comply with our probate laws. policy of the forum such that otherwise applicable Phil laws and regulations
2) The foreign law is procedural in nature cannot be rendered illusory by the parties agreeing upon
3) Issues are related to property (lex situs) some other law to govern their relationship.
CIR vs. Fisher 4) The issue involved in the enforcement of foreign Also, PIA did not undertake to plead and prove the contents
(1961) claim is fiscal or administrative of the Pakistan law on the matter; it must therefore be
FACTS: Spouses Stevenson are British subjects. H dies 5) Foreign law or judgment is contrary to Good presumed to be the same as applicable provisions of Phil
leaving W as sole heir. CIR assessed estate tax on the whole Morals law.
properties of the spouses because English law does not 6) The application of Foreign law will work
recognize conjugal partnership. Undeniable Injustice to the Citizens of the Forum Criticisms: courts using public policy exception can disregard
7) The Foreign law is Penal in Character the applicable law reached and replace it with forum law to
8) The application of the Foreign law might endanger arrive at its desired result without having to provide the
HELD: English law cannot be applied. The pertinent the Vital Interests of the State rigorous legal analysis required to explain the shift. Courts
English law that allegedly vests in husband full ownership of engage in ―intolerable affectation of superior virtue‖.
properties acquired during the marriage was not proved by These exceptions fall under 3 main categories:
CIR (petitioner). In the absence of proof, the Court is
justified in indulging in ―processual presumption‖ in 1: when local law expressly so provides 2. The foreign law is procedural in nature
presuming that the law of England on the matter is the same 2: when there is failure to plead and prove the foreign
as our law. law or judgment Procedural or remedial laws are purely internal matters
3: when the case falls under the exceptions to the rule peculiar only to the State. It would be impractical for the
of comity court to adopt the procedural machinery of another state
such as rules on venue, forms and pleadings. Any individual
15
who submits himself to the jurisdiction of the law of the ex. Hiring for killing, bribery of public officials, Law of nationality first used in Napoleon Code, then in
forum must follow the forum‘s rules of procedure. marriage between ascendants and descendants Austrian Code, which said that laws concerning states &
capacity govern all cities irrespective of residence.
Problem: courts are tasked to characterize the problem as to
whether it is substantive or procedural law which can be 6. The application of Foreign law will work
difficult at times, ex. If issue involves statute of limitations or Undeniable Injustice to the Citizens of Merits & Demerits of Nationality as Personal Law
statute of frauds the Forum
Merits:
1) used to establish link b/w individual & state,
3. Issues are related to property (lex situs) 7. The Foreign law is Penal in Character because laws of each state presumed to be made
for an ―ascertained population‖ .
The universally-accepted rule is that as to immovable Statute is not ―penal‖ not by what the statute is called by the
property, it is governed by the law of the place where it is legislature but whether it appears, in its essential character -since laws considered physical, moral qualities of
located. and effect, a punishment of an offense against the public. citizens, laws should apply to citizens wherever
they are
Phil Civil Code also applies lex situs to personal property. It Penal statutes are all statutes which command or prohibit
also applies to cases of sale, exchange, barter, mortgage or certain acts, and establish penalties for their violation and 2) an individual‘s nationality is easily verifiable
any other form of alienation of property. even those which, without expressly prohibiting certain acts, from documents.
impose a penalty upon their commission. Revenue laws are
WHY? 3 reasons: not classed as penal laws although there are authorities to the
a. land & its improvements are within the exclusive contrary. Demerits:
control of the State & its officials are the ones who 1) Problems arise with regard to:
can physically deal with them This exception is partly remedied under the international a. stateless persons
b. following a policy-centered approach, immovables law of extradition on the basis of jurisdictional cooperation b. persons with multiple nationalities
are of greatest concern to the state in which they and assistance. c. states w/ diverse legal systems having no single
are situated national law
c. demands of certainty & convenience
8. The application of the Foreign law 2) a person‘s ties to his nation may be so attenuated
might endanger the Vital Interests of the if he has lived in another country.
4. The issue involved in the enforcement State - unreasonable for his national law to govern him
of foreign claim is fiscal or if he has no shared sense of identity.
administrative

State is not obliged to enforce the revenue law of another. PART THREE: PERSONAL LAW

Revenue laws affect a state in matters as vital to its interests Importance of Nationality in the Philippines
as penal laws. No court ought to hear a case which it cannot IX. Nationality
prosecute without determining whether these laws are Most civil law countries follow the national law theory.
consonant with its own notions of what is proper.
A. Importance of a Personal Law Phil SC: Nationality law theory is a conflict of laws theory by
Opposition to exception: person should not be permitted to virtue of which JD over the particular subject matter affecting
escape his obligations in maintaining the government by The individual‘s nationality or domicile serves as permanent a person, such as status of a natural born person, is
crossing state lines. connection b/w individual & state. Thus, what is assigned determined by the latter‘s nationality.
him is a personal law allowing courts to exercise jd or
determine the governing choice-of-law rule on a specific Art 15 CC expresses the nationality principle.
5. Foreign law or judgment is contrary to situation or transaction involving him. Art 15: ―Laws relating to family rights & duties, or to status,
Good Morals condition & capacity of persons are binding upon citizens of
Personal law follows the individual. It governs transactions the Philippines even though living abroad.‖
―contra bonos mores‖ - acts having mischievous or affecting him most (marriage, divorce, legitimacy, capacity to
pernicious consequences or against true principles of contract). This notion that a person‘s private rights should be
morality. The need for personal law arose w/ Italian Medieval city determined by his political allegiance & not by his physical
states. Domicile was the only relevant basis for personal law.
16
location, owes its origin to the awareness of national identity
born in the French revolution, Talaroc vs. Uy
(1952) Qualifications for Applicants for Naturalization
FACTS: Uy was elected mayor of Manticao, but one of the
B. Determination of Nationality defeated candidates filed a petition for quo warranto, 1) Petitioner must not be less than 21 years of age on
alleging that Uy was a Chinese citizen and therefore date of hearing of petition
Each state has prerogative to determine who are its nationals ineligible for the office.
or citizens by its own municipal law. 2) He must have, as a rule, resided in the Philippines
HELD: Uy is a Filipino citizen, following the citizenship of for a continuous period of not less than 10 years
The Hague Convention on Conflict of National laws: ―It is his mother, who reacquired her Filipino citizenship upon
for each state to determine who are its nationals. This shall the death of her Spanish husband. A wife reverts to her o Why the 10 yr residence requirement?
be recognized insofar as consistent w/ int‘l. convention, int‘l. former status upon dissolution of the marriage by the death So government can observe applicant‘s
customs, & the principles of law generally recognized w/ of her husband, and where the widowed mother herself thus conduct & ensure he imbibes principles
regard to nationality‖. reacquired her former nationality, her children (she being & spirit of our Constitution.
their natural guardian) should follow her nationality with the
Art 2. Hague Convention: Question on possession of proviso that they may elect for themselves upon reaching o When may period be reduced to 5
nationality of a particular state ―shall be determined in majority. years?
accordance w/ the law of that state.
a) applicant honorably held office under the
Who are Filipino citizens? (Philippine Constitution, Art IV) Co vs. Electoral Tribunal of the House of Representatives Phil gov‘t. or under any of its political
(1991) subdivisions
1) Those who are citizens of Philippines at time of FACTS: Ong Jr. ran as representative of the 2 district of
nd
b) applicant has established a new industry or
the adoption of this Constitution Samar and was proclaimed the winner. The losing introduced a useful invention in the Phil
candidates filed election protests, claiming that Ong Jr. was c) Married to a Filipino woman
2) Those whose fathers or mothers are citizens of not a natural-born citizen. d) Engaged as teacher in a public or recognized
the Philippines private school not for exclusive instruction of
HELD: Ong Jr. is a natural-born Filipino. He could not children of persons w/ particular nationality
3) Those born before January 17, 1973, of have been expected to have formally or in writing elected in any of the branches of education for a
Filipino mothers, who elect Philippine citizenship citizenship upon reaching majority, because he was already a period of 2 years
upon reaching the age of majority; and citizen. His mother was a natural-born citizen, and his father e) Born in the Philippines
was naturalized when Ong Jr. was only 9 years old. The filing
4) Those who are naturalized in accordance w/ law of a sworn statement or formal declaration is a requirement 3) Must be of good moral character,
for those who still have to elect citizenship. For those already & believe in the principles underlying the Phil
Filipinos when the time to elect came up, there are acts of Constitution &
1. Natural-born Citizens deliberate choice which cannot be less binding. Election is
both a formal and an informal process, and it has been held must have conducted himself in a proper &
Two principles w/c may be followed: that participation in election exercises constitute a positive irreproachable manner during entire period of
act of election of Philippine citizenship. residence here in his relations w/ the constituted
jus soli: looks to the law of the place of one‘s birth to government as well as w/ the community in w/c he is
determine one‘s nationality (followed in many common law living
countries).
2. Citizens by Naturalization o ―Proper & irreproachable‖ imposes a
jus sanguinis: rule of descent or blood. Followed in the higher standard of morality than ―good
Philippines, articulated in the Constitution. Naturalization confers to an alien a nationality after birth by moral character‖
any means provided by the law. o How to prove ―irreproachable
Natural born citizens: citizens of the Philippines from birth conduct‖? By competent evidence such
w/out having to perform any act to acquire or perfect In the Philippines, naturalization is by judicial method, as testimony of 2 character witnesses
citizenship. under CA 473, as amended RA 530. well known in community w/ high
reputation for probity.
Concept broadened by the Constitution to include ―those The naturalization process was relaxed under Marcos‘
born before January 17, 1973, of Filipino mothers, who elect regime. Liberal method, summary inquiry. This, however, is The law requires moral character of highest degree. Being
Philippine citizenship upon reaching the age of majority‖. no longer in force. merely a ―law-abiding citizen is inadequate.
17
excluding from the ban the alien vendee who later
4) Must own real estate in the Phil worth not less becomes a naturalized Filipino 3) applicant‘s conduct of keeping wife and children in a
than P5,000, Phil currency, or must have lucrative neighboring country and only visiting them (lack
trade., profession, or lawful occupation o Additional exceptions thru judicial decisions have of sincere desire to embrace Filipino customs and
been criticized for inviting violation of the traditions)
Constitution & disregarding a fundamental policy
Yu Kian Chie vs. Republic of allowing no one to reap benefits from an 4) if it is not fully established that applicant‘s nation
(1965) unlawful act. grants reciprocal rights to Filipino citizens
FACTS: Yu Kian Chie, a Chinese national, applied for
naturalization, but the Solicitor General opposed the 5) Must be able to speak & write English or Spanish
petition on the ground that Yu failed to prove that he had a & any one of the principal Philippine languages C. Procedure for Naturalization
lucrative income.
6) Must have enrolled his minor children of school The following are the steps for naturalization:
HELD: The petition should be denied. His true income age in any of the public schools or recognized
(outside of allowances and bonuses which are merely private schools where Phil history, government & a) a declaration of intention to become a citizen must
contingent) is only P150 a month, which amount does not civics are taught or prescribed as part of first be filed, unless the applicant is exempted
come up to the category of lucrative, especially considering curriculum during entire period of residence from this requirement (Secs. 5 and 6, Com. Act
that he is a married man. required of him, prior to hearing of his petition for No. 473).
naturalization as citizen.
o What does ―lucrative trade, profession, or b) The petition for naturalization must then be filed
lawful occupation‖ mean? o Children must learn & imbibe customs, traditions (Sec. 8, Com Act No. 473)
Substantial gainful employment or the obtaining of & ideals of Filipinos so they‘ll become law-abiding
tangible receipts citizenship. c) After publication in the Official Gazette or
newspaper of general publication the petition will
lucrative employment: appreciable margin of o Compliance & affirmative showing…otherwise, be heard (Sec. 9, Com. Act No. 473 as amended)
income over expenses in order to provide for denied.
adequate support for himself & his family in case d) If the petition is approved, there will be a
of sickness, unemployment, disability to work. o Non-compliance because of insufficient finances: rehearing two years after the promulgation of the
denied. judgment awarding naturalization (Sec. 1, Rep.,
o Requirement of ownership of real property: Act No. 530)
At odds w/ Art XII, Sec. 7 Phil Constitution:
―Save in cases of hereditary succession, no Disqualification for Naturalization e) The last step will be the taking of the oath of
private lands shall be transferred or conveyed allegiance to support and defend the Constitution
except to individuals qualified to acquire or General Rule: Burden of proving disqualification is upon the and the laws of the Philippines (Sec. 11, Com. Act
hold lands of the public domain.‖ state. No. 473, amended)

o Exceptions to prohibition on ownership of But SC held that petitioner must prove he has none of Declaration of Intention
land: disqualifications.
a) Save in cases of hereditary succession, When: One year before petition is filed
no private lands shall be transferred or conveyed The law must be strictly construed against applicant because With whom: File with office of the Solicitor
except to individuals qualified to acquire or hold naturalization is a privilege, not a right. General
lands of the public domain - Testamentary How: Declaration under oath of bona fide intention to
succession is not covered by the exception become Philippine citizen
provided in the Constitution. Possible causes for Disqualification:
b) Sec. 2, BP 185 allowing a natural- 1) crime involving moral turpitude (act of bareness,
born citizen who lost his Filipino citizenship to be vileness, depravity in private and social life in Exemptions to Filing of Declaration of Intention:
a transferee of a private land for residential general; contrary to conduct of honesty, modesty
purposes (not in excess of 1,000 sq. m. urban or 1 or good morals) 1) persons born in the Philippines and who have
ha rural land) received their primary and secondary education in
c) SC broadened exception to 2) if applicant does not deal with and receive Filipinos public or private schools recognized by the
prohibition by applying In Pari Delicto doctrine, in his home and visit Filipino homes in a spirit of Government, and not limited to any race or
friendship and equality without discrimination nationality
18
Vivo vs. Cloribel
2) those who have resided continuously in the (1968) HELD: Under Sec. 15 of CA 473, an alien woman marrying
Philippines for a period of thirty years or more FACTS: Chinese wife, Chua and her minor children arrived a Filipino, native born or naturalized, becomes ipso facto a
before filing their application in the Phils from Hkong. Her husband applied for Filipina provided she is not disqualified to be a citizen of the
naturalization in the Phils. Wife and children applied for Phils under Sec. of the same law. Likewise, an alien woman
3) the widow and minor children of an alien who indefinite extension of stay. Sec of Foreign Affairs allowed married to an alien who is subsequently naturalized here
declared his intention to become a citizen of the the change of their status from temporary visitors to special follows the Philippine citizenship of her husband the
Philippines and dies before he is actually non-immigrants for 2 years. Commissioner of Immigration moment he takes his oath as Filipino, provided, that she
naturalized. refused their extension. The Foreign Affairs Sec. denied does not suffer from any of the disqualifications under Sec.
their appeal and they were advised to leave the Phils. Chua 4.
Requirement is mandatory, absolute prerequisite to filed action for mandamus to implement the first ruling of
naturalization. Failure is fatal. Void for noncompliance with the Secretary but this was denied. Chua efilled alleging that This ruling reversed a prior decision of the SC (Burca vs.
law. her husband will be granted Filipino citizenship so they were Republic) which held that the alien woman married to a
also due for eventual conversion. Filipino must first file a petition for citizenship alleging that
Watt vs. Republic: In cases where petition is exempt, she possesses all the qualifications and none of the
statement to his exemption and reasons should appear on disqualifications mandated by law.
the petition so the public maybe prepared to object to any HELD: The wife, under Sec. 15 of the Revised
evidence on this regard. Naturalization Law, will not automatically become a Filipino No Judicial Declaration of Philippine Citizenship
citizen upon her husband‘s naturalization as she must still
Which court has jurisdiction? show that she possesses all the qualifications and none of the A declaration of Phil citizenship may not be granted in an
RTC of province has exclusive jurisdiction on which disqualifications for naturalization. But her having action for declaratory relief nor under the Civil Code
petitioner has resided for at least one year immediately misrepresented that she will stay for a brief period but her provision (Art. 412) on correction of entry in the Civil
preceding filing of person. intention was really to stay for a long time, demonstrated her Registry.
incapacity to satisfy the qualifications under Sec. 2 which
provides that she must be of good moral character and must But the rule was relaxed in later decisions. A petition for
have conducted herself in a proper and irreproachable correction of errors in the entry of the Civil Registry even for
Effect of Naturalization on Wife and Children manner during the entire period of her stay. She also failed a change of citizenship or status may be granted provided
to satisfy the requirement of continuous residence for 10 that an appropriate action is made wherein all parties who
Section 15, C.A. 473 states that:: years in the Philippines (actual stay: Oct. 16 ‘60 – June ‘62) may be affected by the entries are notified and represented
―Any woman who is now or may hereafter be married to a and there is a full blown adversary proceeding.
citizen of the Philippines, and who might herself be lawfully As to the children: The law requires that they must be
naturalized shall be deemed a citizen of the Philippines. dwelling in the Philippines at the time of the naturalization Tan Yu vs. Republic: There can be no action or proceeding
of the parent. Since prior to their father‘s naturalization, they for the judicial declaration of the citizenship of an individual.
Minor children of persons naturalized under this law who were already required to leave the country, they cannot be
have been born In the Philippines shall be considered said to be lawfully residing here. D. Loss of Philippine Citizenship
citizens thereof.
A foreign-born minor child, if in the Philippines at the time Also, they cannot be allowed to extend their stay. The CA 63, as amended by RA 106, provides that a Filipino
of naturalization of the parent, shall automatically become a period of stay of temporary visitors cannot be extended citizen may lose his citizenship in any of the following ways:
Philippine citizen, and a foreign-born minor child, who is without first departing form the Islands. They cannot also
not in the Philippines at the time the parent is naturalized, claim that they should be allowed extension until the father‘s 1) Naturalization in foreign countries
shall be deemed a Philippines citizen only during his oath taking because their allowed stay was for a definite
minority, unless he begins to reside permanently in the period up to a fixed day. Frivaldo vs. COMELEC
Philippines when still a minor, in which case, he will (1989)
continue to be a Philippine citizen even after becoming of FACTS: Frivaldo was elected governor of Sorsogon and
age. Moy Ya Lim vs. Commissioner of Immigration assumed office. The League of Municipalities of Sorsogon
(1971) filed for annulment of his election on the ground that he is a
A child born outside of the Philippines after the FACTS: In 1961, Lau, a Chinese, was permitted to stay in US citizen and therefor incapable of holding public office.
naturalization of his parent shall be considered a Philippine the Philippines for 1 month to visit her grandfather. After Frivaldo admitted that he was a naturalized US citizen in
citizen, unless within one year after reaching the age of repeated extensions, she was allowed to stay until Feb. 1962. 1983 but he underwent naturalization only to protect himself
majority, he fails to register himself as a Philippine citizen at However, on Jan. 1962 she married a Filipino. from then Pres. Marcos. Sol Gen supported respondent‘s
the American Consulate of the country where he resides, Commissioner ordered her to leave and sought her contention that he is a US citizen because he did not
and to take the necessary oath of allegiance.‖ deportation. Spouses filed appeal in SC. repatriate himself after his naturalization in the US
19
by repatriation or by naturalization. None of these methods
HELD: Frivaldo lost his Filipino citizenship. If Frivaldo were done. Under PD 725, repatriation may be done by a) if it shown that said naturalization certificate was
really wanted to disavow his US citizen citizenship & applying with the Special Committee on Naturalization and obtained fraudulently or illegally;
reacquire Phil. citizenship, he must do so under our laws. if the application is approved, applicant must make an oath
Under CA 63, Phil. citizenship may be reacquired through: of allegiance to the Republic of the Phils before a certificate b) if the person naturalized shall, w/in the 5 yrs next
of registration is issued by the CID. following the issuance of said certificate, return to
1. direct act of Congress his native country or to some foreign country &
2. naturalization 2) Express renunciation of citizenship establish his permanent residence there;
3. repatriation Aznar vs. COMELEC
(1990) Provided that the fact that person naturalized remain
The alleged forfeiture of US citizenship because of his active FACTS: Osmeña filed a COC for provincial governor of for 1 year in his native country of former nationality, or
participation in the elections is between him and the US; it Cebu but was declared ineligible (upon petition of Aznar) 2 years in any country, shall be considered as prima
could not have resulted to automatically restoring his for being a US citizen, as shown by an Alien Certificate of facie evidence of his intention of taking up his
Filipino citizenship which he earlier renounced. At most, he Registration. Osmeña alleges that he is a Filipino citizen permanent residence therein
could be said to be a stateless individual. Also, although the being the child of a Filipino, holder of a Phil. passport, a
Special Committee to hear repatriation cases under LOI 270 resident of the Phils. since birth, and a registered voter. c) If the petition was made on an invalid declaration
has not yet been convened, F should have waited for such or of intention
seek naturalization by legislative or judicial process. HELD: Osmeña is a Filipino citizen. Aznar failed to present
proof that O lost his citizenship by any of the modes under d) If it is shown that the minor children of the person
Frivaldo vs. COMELEC CA 63; he merely relied in the Alien Certificate of failed to graduate from recognized public or
(1996) Registration in concluding that O has been a naturalized US private high school where the required subjects are
FACTS: Frivaldo took his oath of allegiance under PD 725 citizen. Phil. courts are only allowed to determine who are taught, through the fault of the parents either by
on June 30 ‘95, much later than he filed his certificate of Filipino citizens, but have no power to determine who are neglecting to support or by transferring them to
candidacy. He now claims Filipino citizenship through a persons considered as American citizens under US laws. another school.
valid repatriation Also, the mere fact that he has an ACR does not mean that
he is no longer a Filipino; the renunciation needed to lose Certified copy of decree canceling certificate forwarded
HELD: Frivaldo reacquired his Filipino citizenship and is Phil. citizenship must be ―express.‖ to the Office of the President & the Solicitor General.
now eligible to assume the office as governor. Law does not
specify any particular date or time when candidate must 3) By subscribing to an oath of allegiance to e) If it is shown that the naturalized citizen allowed
possess citizenship unlike that of residence and age. It can support the constitution or laws of a foreign himself to be used as dummy in violation of the
also be said that Frivaldo‘s repatriation retroacted to the date country upon attaining twenty one years of age or Constitution or law requiring Philippine
of his filing his application in Aug. 1994. more, subject to certain exceptions citizenship as a requisite for exercise, use or
enjoyment of a right, franchise or privilege.
Labo vs. COMELEC 4) by rendering service to, or accepting
(1989) commission in, the armed forces of a foreign Only a Grant of Political Privilege:
FACTS: Labo was elected mayor of Baguio. Lardizabal filed country, subject to certain exceptions
a petition for quo warranto alleging that Labo is not a Judgment directing issuance of certificate of naturalization is
citizen.COMELEC declared that he was a citizen but the 5) by having been declared by competent a mere grant of political privilege. Neither estoppel nor res
CID ruled that he is not since the Australian Govt said that authority, a deserter of the Philippine armed judicata may be invoked to bar the state from initiating an
he is still a naturalized Australian citizen. forces in time of war, unless subsequently, a action for cancellation or nullification of certificate of
plenary pardon or amnesty has been granted naturalization issued.
HELD: Labo is not a citizen of the Phils because he lost the
same by performing the ff acts under CA 63: 6) in the case of a woman, upon her marriage to a If shown to have been obtained by fraud or illegal means,
1. naturalization in a foreign country foreigner, if by virtue of the laws in force in her the certificate may be cancelled. Decision in naturalization
2. express renunciation of citizenship husband‘s country, she acquires his nationality case does not constitute res judicata.
3. subscribing to an oath of allegiance to support the
Consti and laws of a foreign country. 7) cancellation of the certificate of naturalization Republic vs. Li Yao
(1992)
Even if it is to be assumed that his naturalization was The Judge may cancel the naturalization certificate issued FACTS: Li Yao was a naturalized Filipino citizen, but the
annulled because his marriage to an Australian was found to and the registration in the Civil Registry, upon motion made Sol Gen filed a petition to cancel his certificate of
be bigamous, this does not automatically restore his in proper proceedings by Sol Gen, on any of the following naturalization on the ground that he obtained such certificate
citizenship. He must reacquire it by direct act of Congress, grounds:
20
through fraudulent means. One of the grounds was tax
evasion. In determining rights of an individual who may claim 2. Statelessness
multiple nationality in a third state, the ICJ applied principle
HELD: A certification of naturalization may be cancelled if of ―effective nationality.‖ Understood in two senses:
it was subsequently discovered to have been obtained by
misleading the court upon any material fact. And a Nottebohm Case a) De jure stateless person: refers to an individual
naturalization proceeding is not a judicial adversary (1955) who has been stripped of his nationality by his
proceeding, such that a decision therein is not res judicata as FACTS: Liechtenstein brought a case against Guatemala in own former government w/out having opportunity
to any matter that would support a judgment canceling a the ICJ for breach of its obligations under international law to acquire another.
certificate of naturalization on the ground of illegal or and asking for reparations in behalf of Nottebohm. It is the
fraudulent procurement thereof. position of Liechtenstein that Nottebohm acquired Problem of statelessness began during WW II &
Liechtenstein citizenship which would entitle him to its worsened under Nazi regime in Germany & in
diplomatic protection. USSR.
E. Problems in Applying the Nationality Principle
HELD: Liechtenstein is not entitled to extend protection to b) De facto stateless person: individual possessed of a
1. Dual or Multiple Citizenship Nottebohm, because when N applied for naturalization, nationality but whose country does not give them
there is nothing to indicate that such application was protection outside their own territory.
Each state determines who its nationals are in accordance w/ motivated by any desire to dissociate himself from the
the rule in the Hague Convention on Conflict of National Government of his country, Germany. He had been settled - commonly called ―refugees‖.
Laws. in Guatemala for 34 years, and it was the main seat of his
interests and business activities. Vietnam War: Masses of people escaped from Vietnam,
Questions on WON a person possesses the nationality of a Cambodia, and Laos without any travel documents, identity
certain state are to be determined in accordance w/ the In contrast, his actual connections with Liechtenstein were papers or any form of identification normally granted by
state‘s internal law. extremely tenuous. No settled abode and no prolonged government.
residence at the time of application; the application shows
It is possible that a person can be claimed as national of 2 or that he was a mere visitor and his visit is of a transient
more states. character. There is an absence of any bond of attachment Conventions to Alleviate Problems of Stateless Persons:
between N and L and, on the other hand, the existence of a
Situations w/c may result to dual nationality: long-standing and close connection between him and G, a 1) 1951 Geneva Convention on Status Refugees
Application of jus soli & jus sanguinis link which his naturalization in no way weakened.
-provided some basic rights of stateless persons
1) Child born of Oh Hek How vs. Republic
o parents who are nationals of country (1969) 2) 1954 UN Conference on the Elimination or
applying jus sanguinis FACTS: Oh Hek How, a Chinese citizen, applied for Reduction of Future Statelessness
o in a country applying jus soli naturalization in the Philippines which was granted. A
certificate of naturalization was issue in his favor but the 3) Convention on the Reduction of Statelessness
has dual nationality Government appealed, claiming that it was issued before the - enumerates conditions under w/c an individual would
Minister of the Interior of Nationalist China issued the not lose his or her nationality upon the risk of becoming
2) Filipino citizen who marries an alien may permission for a valid renunciation of Chinese citizenship. stateless should a new nationality not be proved: i.e. divorce,
acquire citizenship of his or her spouse if the Oh Hek How argues that such permission is not among the adoption, naturalization, expatriation.
spouse‘s national law so allows. requirements under our law for the naturalization of an
alien. Convention also prohibits states from depriving nationals of
But a Filipino citizen who marries an alien shall retain identity:
Philippine citizenship, unless by his or her act or omission, HELD: The permission of the Minister of the Interior of
he is deemed under the law, to have renounced it by taking China is required before a certificate of naturalization can be 1) as punishment or
an oath of allegiance to the spouse‘s country or by express issued in favor of Oh Hek How. The question of how a 2) as discriminatory instrument for political, religious
renunciation. Chinese citizen may strip himself of that status is necessarily or ethnic reasons
governed by the laws of China, not that of the Philippines.
3) Another instance of dual or multiple nationality As a consequence, a Chinese national cannot be naturalized Major objective: Remedy situation of children born w/out
is the case of an individual who is naturalized as a citizen of the Philippines, unless he has complied with acquiring any nationality, i.e. when a child is born in a
citizen of another state but has not effectively the laws of China requiring previous permission of its country following jus sanguinis principle of parents who are
renounced his former nationality. Minister of the Interior for renunciation of nationality. citizens of a jus soli country.
21
A person may live in a place where he is not domiciled. To the Philippines. In this case, there is no proof that he had
Convention mandates that: acquire a domicile, there must be concurrence of waived his status as a permanent resident or immigrant of
*jus sanguinis country grant its nationality to a person born 1) intention to make it one‘s domicile and the US before he ran for election as mayor of Bolinao;
w/in its territory if he would otherwise be stateless. 2) physical presence. hence he was disqualified to run for that office.

*jus soli country to extend its nationality to a person who ―Residence‖ simply requires bodily presence. It is a
would otherwise be considered stateless when one of his relatively more permanent abode of a person, while Uytengsu vs. Republic
parents is a citizen of the contracting state. residence applies to a temporary stay of a person in a given (1954)
place (Koh vs. CA). FACTS: Uytengsu was born in the Philippines of Chinese
Kookooritchkin vs. Solicitor General parents. He went to the US to study; but in one of his
(1948) vacations in the Philippines he applied for naturalization,
FACTS; Kookooritchkin, a native-born Russian who claims Domicile is permanent in nature; it is not as transient and during the pendency of which he returned to the US to
to be a stateless refugee, filed a petition for naturalization. temporary as residence. finish his studies. Upon his return, his application was
The petition was granted, for which the SolGen appealed, granted; the Government appealed the grant because under
saying that Kookooritchkin is not a stateless person. 2 Requisites for domicile: the law an applicant for naturalization is required to reside
1) physical presence continuously in the Phils. from the date of filing of the
HELD: K is a stateless person. His testimony, aside from 2) intent – actual intent, not merely floating intent petition up to the time of his admission to Philippine
being uncontradicted, is supported by the well-known fact  In order to establish new domicile, it is not citizenship. Uytengsu‘s defense is that since he has been
that the ruthlessness of modern dictatorships has scattered necessary to prove intent to stay indefinitely, as domiciled in the Philippines during the period of his
throughout the world a large number of stateless refugees or long as the intent to abandon the old domicile is application, he was also a resident for that period.
displaced persons, without country and without flag. apparent.
Knowing the history, nature and character of the Soviet HELD: ―Residence‖ and ―domicile‖ each has, in strict legal
dictatorship, it would be technically fastidious to require  In domicile of choice, intent is important parlance, a meaning distinct and different from each other.
further evidence of K‘s claim that he is stateless than his The essential distinction between resident and domicile is
testimony that he owes no allegiance to the Russian  In constructive domicile, there is no intent this: the first involves the intent to leave when the purpose
Communist government and, because he has been at war because the domicile is chosen by the law for the for which he has taken up abode ceases, while the other has
with it, he fled from Russia to permanently reside in the person no such intent, the abiding is animo manendi. They are not
Philippines. to be held synonymous; residence is an act, while domicile is
 The motive for leaving and the length of stay in an act coupled with intent. The question of domicile is not
the new domicile is not relevant in the involved in determining whether a person is a resident of a
determination of domicile of choice state or country.
X. Domicile
 Habitual residence: ―bridge‖ between residence
A. Definition and domicile B. Merits and Demerits of Domicile
_______________
Municipal law concept of domicile (Art. 50, CC): Merits:
Caasi vs. CA
natural persons: the place of habitual residence (1990) 1) preferred primary connection between a person
juridical persons: determined by the law creating or FACTS: Miguel ran for mayor of Bolinao and won. His and a state because it satisfies the very purpose for
recognizing it; and in its absence shall be understood as the opponent filed a petition for disqualification, alleging that having a personal law (in common law countries) –
place where their legal representation or place of business is. Miguel is a green card holder and hence, a permanent it provides an adequate basis for him to exercise
resident of the US and not of Bolinao. rights therein and the state to impose duties on
Conflict-of-laws definition of domicile (Restatement): the him
place with which a person has a settled connection for HELD: Miguel‘s possession of a green card disqualified him
certain legal purposes, either because his home is there or from running for mayor. His application for immigrant 2) also suitable for countries with a federal system of
because that place is assigned to him by law. status and his possession of a green card are conclusive government – the law of the domicile is the law of
proof that he is a permanent resident of the US despite his the place where the individual lives
Justice Story: the place of true, fixed permanent home and occasional visits to the Philippines.
principal establishment, and to which, whenever he is
absent, he has the intention of returning. A candidate who is a green card holder must have waived his
status as a permanent resident or immigrant of a foreign
country in order to be qualified to run for elective office in
22
Demerits: FACTS: Imelda Marcos filed her Certificate of Candidacy D. Kinds of Domicile
for representative of 1 District of Leyte. A petition to
st

1) one‘s domicile is not ascertainable without first disqualify her was filed on the ground that she lacked the 1- 3 Kinds of Domicile:
resorting to the courts to establish whether or not yr resident requirement as provided for in the Constitution.
there is animo manendi In her COC, she placed ―7 months‖ as length of residence. 1) Domicile of origin: a person‘s domicile at birth. A
legitimate child‘s domicile is that of his father,
2) the notion of domicile differs widely in different HELD: For purposes of election law, residence is while an illegitimate child‘s is that of his mother.
states (some distinguish between domicile and synonymous with domicile. Mere absence of an individual
residence; others attribute different meanings of from his permanent residence without the intention to 2) Domicile of choice: also called voluntary domicile,
domicile for different purposes) abandon it does not result in a loss or change of domicile. is the place freely chosen by a person sui juris.
There must be concurrence of physical presence
3) if the law of domicile of origin is given overriding While Marcos held various residences for different purposes in the new place and unqualified intention to
significance, it may create the problem of during the past four decades, none of these purposes make that place one‘s home.
attenuated connection (similar to the use of unequivocally point to an intention to abandon her domicile
nationality as personal law) of origin in Tacloban, Leyte. She did not lose her domicile A problem deciding the issue of domicile of choice is the
of origin upon her marriage to Pres. Marcos; what she degree of permanence of abode.
The Philippines follow the nationality law theory, but there gained was actual residence.
are instances when our courts refer to the domicile of an Difference between domicile of origin and domicile of
individual in order to determine his rights or obligations. choice: lies in a) conditions necessary for abandonment and
Example is Ujano vs. Republic b) capacity for revival.
1) when the litigant is an alien whose country of origin (1966)
follows the domiciliary principle; or FACTS: Ujano was a naturalized US citizen who returned to Reverter or revival doctrine: presumption that domicile of
2) where the situation concerns stateless persons, or the Philippines as a visitor and petitioned to reacquire origin revived once the domicile of choice is given up,
those with dual or multiple nationalities; or Philippine citizenship. The petition was denied because he before a new one is required.
3) when an alien domiciled in the Philippines executes did not have the required residence.
a will abroad.
HELD: Residence, for naturalization purposes, has been Velilla vs. Posadas
interpreted to mean the actual or constructive permanent (1935)
C. General Rules on Domicile home or domicile. He cannot be said to have established his FACTS: Velilla, the administrator of the estate of Moody,
domicile here although he is actually present because his appealed the inheritance tax assessed against the estate on
1) No person shall be without a domicile; his allowed stay as a visitor is only temporary and he must leave the ground that the decedent was not domiciled in the
domicile of origin prevails until the acquisition of a when the purpose of his coming is done. Philippines. Moody went to Calcutta and Paris before his
new one. death, and he died in India.

2) A person cannot have two simultaneous domiciles In re Dorrance‘s Estate HELD: He was a domiciliary of Manila. Domicile in the
(a person can have only one domicile for a given (1932) Civil Code is defined as the place of habitual residence,
purpose or a given time under the law of a FACTS: Dorrance was born in Pennsylvania. He worked which was Manila in the CAB. There was no statement from
particular state, but it should not be assumed that and resided in New Jersey, transferred to Philadelphia and Moody, oral or written that he adopted a new domicile while
that determination will be binding on other states then returned to New Jersey. Later he was able to buy an he was absent from Manila. To establish abandonment, he
or on the same state for other purposes). estate in Pennsylvania, where he stayed with his family until must show his deliberate and provable choice of new
his death. During his lifetime he expressed that he intends to domicile coupled with actual residence and declared or
3) Domicile establishes a connection between a remain a domiciliary of New Jersey. Pennsylvania assessed proved intent that it should be his permanent abode. This
person and a particular territorial unit. inheritance tax on his estate. was not proven.

4) The burden of proving a change of domicile is HELD: He was domiciled in Pennsylvania at the time of his
upon whoever alleges that a change has been death. A man cannot retain a domicile in one place when he White vs. Tennant
secured. has moved to another, and intends to reside there for the (1888)
rest of his life, by any wish, declaration or intent inconsistent FACTS: White and his wife lived in West Virginia, but
with the facts of where he actually lives and what he means agreed to sell their house there with the declaration, intent
Romualdez-Marcos vs. COMELEC to do. and purpose of making Pennsylvania their home. Upon
(1995) reaching Penn., they had to go back to West Va. on account
of the wife‘s illness but White went to Penn. everyday to
23
look after his stock. Upon his death, the administrator paid ground that he was not qualified to adopt, him being a non-
the whole of the estate to the widow according to West Va. resident alien. HELD: CFI Iloilo has JD. Where the husband has given
law. However, if Penn. law was applied, ½ of the estate cause for divorce, the wife may acquire another and separate
would go to White‘s siblings. The law of his domicile HELD: Actual or physical presence or stay of a person in a domicile from that of her husband.
governs the distribution of his estate. place, not of his free and voluntary choice and without intent
to remain there indefinitely, does not make him a resident of *There are exceptions to the rule that the domicile of the
HELD: Pennsylvania was his domicile at the time of his the place. Caraballo is disqualified to adopt because he is a wife is determined by that of her husband, one of which is
death. Two things must concur to establish domicile—the non-resident alien. His stay in the Philippines is only that the wife may acquire another and separate domicile
fact of residence, and the intention of remaining. These two temporary, and is merely the result of his assignment as staff from that of her husband where the theoretical unity of
must exist in combination. When one domicile is definitely sergeant. husband and wife is dissolved, as it is by the institution of
abandoned, and a new one selected and entered upon, divorce proceedings; or where the husband has given cause
length of time is not important; one day will be sufficient, for divorce; or where there is a separation of the parties by
provided the animus exists. In recent decisions, courts have held that a person under agreement, or a permanent separation due to desertion of
compulsion should not be barred from proving that he has the wife by the husband or attributable to cruel treatment on
developed the required unqualified intention to establish his the part of the husband; or where there is a forfeiture by the
3) Constructive domicile: domicile assigned to permanent abode in such place. The fact of compulsion is wife of the benefit of the husband‘s domicile.
persons incapable of choosing their own domicile reduced to just one of the factors in determining whether
by operation of law. Includes minors, mentally intent, in fact, exists.
disabled, married women. Modern view (married women): dispenses with the
Married Women: based on the concept of unity of identity presumption that the wife‘s domicile is the same as her
Minors or infants are indubitably incapable of choosing their of spouses, the wife was presumed to take the domicile of husband‘s. Each party establishes his or her own domicile
own domicile. Their domicile automatically changes when the husband. completely independent of each other. As a result, the wife
their father‘s domicile changes. Minors take the domicile of need not show that her husband has given cause for divorce
their mother upon the death of their father. or legal separation to have a separate domicile.
Go Chen and Go Lek vs. Collector of Customs
A person who has a mental disability is also assigned a (1932)
constructive domicile. It is presumed that a person with a FACTS: Tan Bon, a Chinese citizen, entered the
mental disability cannot acquire a domicile of choice Philippines as the wife of a Chinese merchant. She asked XI. Principles on Personal Status and Capacity
because of his inherent inability to decide where to make his her minor children from a previous marriage to join her
home. here, but they were not allowed entry.
A. Definition
HELD: The minor children cannot enter the Philippines. A
Special Problems in Domicile of Choice vis-à-vis Chinaman‘s Chinese wife and her minor children do not Personal capacity
Constructive Domicile enter the Philippine Islands through their own right, but by
virtue of the right of the husband and father. Since Tan Bon  Includes both condition and capacity
1) domicile of people kept under physical or legal did not enter the Philippines by her own right but by virtue  Embraces matters as the beginning and end of
compulsion of her husband, she is not entitled to bring in her minor personality, capacity to have rights, capacity to
children by another Chinaman who never had legal engage in legal transactions, protection of personal
2) domicile of married women seeking to acquire residence in the Archipelago. The mere fact of their being interests, family relations, also transactions of
separate domicile from their husbands children of Tan Bon confers on them no right of entry, family law such as marriage, divorce, separation,
inasmuch as she herself did not enter of her own right, and adoption, legitimation and emancipation, and
People under Compulsion: traditional view is that he is in they cannot base their right on hers. succession.
that place not as a result of his volition. Examples are
military personnel, prisoners and people with disabilities Juridical capacity: fitness of a man to be the subject of legal
who are confined in institutions. De La Vina vs. Villareal and Geopano relations
(1920)
FACTS: Geopano filed a complaint in CFI Iloilo against de Capacity to Act: power to do acts with legal effects
Caraballo vs. Republic la Vina, her husband, for divorce on the ground of infidelity.
(1962) De la Vina opposed, saying that CFI Iloilo has no JD over ART. 37, Civil Code:
FACTS: Caraballo, an American staff sergeant in the US Air the case considering that he resides in Negros, such that Juridical capacity, which is the fitness to be the subject of
Force stationed in Clark Air Base, filed a petition for Geopano must also be considered a Negros resident, legal relations, is inherent in every natural person and is lost
adoption of a Filipino child. The petition was denied on the because the domicile of the wife follows that of the husband.
24
only through death. Capacity to act, which is the power to do persons but of the public or political law of the nation. The
acts with legal effect, is acquired and may be lost. jurisdiction of courts and other matters of procedure are of 1. there is a rebuttable presumption that a person is dead
public nature and are submitted to the territorial principle. after he has been absent for a number of years
In case of Filipinos, Art. 15 of the CC states that personal
status and capacity follows the nationality principle. 2. a person‘s unexplained absence is judicially investigated
Note: The doctrine is no longer controlling. Divorce is and established which results in legal effects similar to
In case of aliens, courts may refer to their national law or considered a violation of public policy so that courts cannot those of death
domiciliary law. issue the same. 3. a judicial decree shall have to be issued declaring a
person dead before legal effects of death can take place

Recto vs. Harden C. Beginning and End of Personality *Phil law follows the rebuttable presumption (1).
(1959)
FACTS: H engaged the services of R, as counsel in her suit The determination of the exact moment personality begins is Art. 390, CC
against her husband for support and for preservation of her referred to the individual‘s personal law. After the absence of 7 years, it being unknown whether or
rights in the conjugal partnership in contemplation of a not the absentee still lives, he shall be presumed dead for all
divorce suit. However, the spouses entered into a Art. 40, CC purposes, except for those of succession.
compromise agreement to defeat the claim of R in attorney‘s Birth determines personality; but the conceived child shall
fees. H moved to dismiss on the ground of invalidity of the be considered born for all purposes that are favorable to it, The absentee shall not be presumed dead for the purpose of
contract of service because divorce is contrary to Phil law. provided it be born later with the conditions specified in the opening his succession till after the absence of 10 years. If he
following article. disappeared after the age of 75 years, an absence of 5 years
HELD: R should be paid his fees. H spouses are US citizens shall be sufficient in order that his succession may be
and their status and the dissolution thereof are governed by Art. 41, CC opened.
the laws of the United States, which sanction divorce. For civil purposes, the fetus is considered born if it is alive at
Therefore, contract is not contrary to public policy. the time it is completely delivered from the mother‘s womb. Art. 391, CC
However, if the fetus had an intra-uterine life of less than 7
months, it is not deemed born if it dies within 24 hours after The ff. shall be presumed dead for all purposes, including
B. Legislative Jurisdiction Distinguished from Judicial its complete delivery from the maternal womb the division of estate among the heirs:
Jurisdiction (1) a person on board a vessel lost during sea voyage, or an
Geluz vs. CA: SC did not allow for recovery of damages for airplane which is missing, who has not been heard of
Status once established by the personal law of the party, is the injury and death of a conceived child which is still in the for 4 years since the loss of the vessel or airplane.
given universal recognition. mother‘s womb. Art. 40 cannot be invoked since it expressly (2) A person in the armed forces who has taken part in war
limits the provisional personality by imposing the condition and has been missing for 4 years
Status, capacity, and rights and duties, brought into existence that the child should be subsequently born alive. (3) A person who has been in the danger of death under
by State A and conferred in a natural or juridical person Civil personality is commenced at birth and is extinguished other circumstances and his existence has not been
under its jurisdiction, should be recognized by State B, by death. A declaration of death issued by a competent court known for 4 years
without any exception or qualification imposed by the latter, is considered valid for all purposes.
except by some definite or protected rule of municipal law. However, for specific purposes, our laws require that a
declaration of death be issued before certain legal effects of
- Aliens can sue and be sued in our courts even on issues Limjoco vs. Intestate Estate of Fragante: HELD: SC ruled death arise ex. Contracting a subsequent marriage but the
relating to status and capacity. However, the applicable that the estate of a deceased applicant can be granted a CPC periods are reduced to 2 years.
law is their personal law. to avoid injustice or prejudice resulting from the
impossibility of exercising such legal rights & fulfilling such The legal effects of absence and restrictions on his capacity
legal obligations of the decedent as survived after his death are determined by his personal law.
Barnuevo vs. Fuster unless the legal fiction, that the estate is considered a person,
(1913) is indulged. E. Name
FACTS: Fuster and Yanez separated. After 10 years, Y filed
for divorce on the ground of F‘s adultery. Court granted D. Absence A person‘s name is determined by law and cannot be
decree of divorce. Fuster contests jurisdiction of the court to changed without judicial intervention.(Art. 376, CC) Case
issue the said decree. law shows that courts have allowed petitions on grounds that
The domestic laws of states do not treat absentees alike. the name—
HELD: Phil court has jurisdiction. The authority and
jurisdiction of courts are not a matter of private law of Three ways of dealing with the problem:
25
1. is ridiculous or tainted with dishonor or extremely determined by the law of the place where the contract is 5) cannot be abrogated, amended or terminated by
difficult to pronounce made. one or both parties at will
2. when the change is necessary to avoid confusion 6) nature & consequences as well as incidents are
3. when the right to a new name is a consequence of governed by law & not subject to stipulation by
change in status This case should have been resolved as a capacity case parties unlike ordinary contracts
4. a sincere desire to adopt a Filipino name to erase signs instead of as a contract case (characterization). 7) violation of marital obligations may give rise to
of a former alien nationality which unduly hamper penal or civil sanctions while breach of conditions
social and business life of ordinary contract can be ground for an action
PART FOUR: CHOICE OF LAW PROBLEMS for damages
Confusion as to one‘s paternity has been held to justify the
court‘s denial of a petition for change of name. 1. Philippine Policy on Marriage and the
XII. Choice of Law in Family Relations Family
Whether an alien‘s change of name is valid depends solely
on his personal law. Man & woman may decide to marry in a country other than Art XV. Sec. 2: Marriage as an inviolable social institution, is
that of their nationality & come home. Issue of validity of the foundation of the family & shall be protected by the
marriage & legal consequences may be raised (Legal state.
F. Age of Majority consequences such as personal & property relations, status &
rights of children, use of surname & right to inherit). Presumption of validity: The Philippines establishes a
The legal disability and rights attached to minority are presumption of validity to give stability to marriage especially
aspects of personal status. It is the individual‘s personal law Family law is an area of substantive law which reflects strong in Conflicts of Law problems.
which determines whether he has reached the age of policies of state often based on values highly held by society.
majority. Family relations give rise to grave individual & societal Art 220. CC. In case of doubt, all presumptions favor the
concerns. solidarity of the family. Thus every intendment of law or
RA 6809 lowered the age of majority from 21 – 18 years but facts lean toward the validity of marriage, the indissolubility
parental consent for contracting marriage is still required of marriage bonds, legitimacy of children, the community of
until the age of 21. A. Marriage property during marriage…

Family Code Definition: Goal: Guide courts, strengthen family, & emphasize state
G. Capacity Art 1. ―Marriage is a special contract of permanent union interest in its preservation
b/w man & woman entered into in accordance w/ law for the
A person‘s ability to act is governed by his personal law. establishment of conjugal & family life.
Rules on capacity of an individual to bind himself by 2. Extrinsic Validity of Marriage
contract with other persons or by unilateral acts are the very It is the foundation of the family & an inviolable social
core of the rules that identify his legal position. The institution whose nature, consequences & incidents are This is governed by lex loci celebrationis.
incapacities attached to his legal status go with him wherever governed by law & not subject to stipulation except that
he is. marriage settlements may fix property relations during the Extrinsic validity covers questions on formalities or external
marriage w/in limits provided by this Code.‖ conduct required of parties for legally valid marriage.
The general rule on capacity is subject to several exceptions.
These include liability in tort, which is subject to the law of Juxtaposed w/ Art15 CC, w/c states that questions on family Art 2. Hague Convention on Celebration & Recognition of
the place of the tort and the restrictions on the contracting rights, duties, status, conditions & capacity are governed by Validity of Marriages: Formal requirements governed by law
capacity of a married woman. lex nationalii, the importance of such definition is realized. of state of celebration.
General rule: All states recognize as valid marriages
Marriage is a special contract as distinguished from an celebrated in foreign countries if the formalities prescribed
Insular Government vs. Frank ordinary contract: there were complied with.
(1909)
FACTS: Insular Govt entered into an employment contract 1) entered into by a man & a woman PHILIPPINES, Formal Requirements of Marriage
with Frank in Illinois when he was still a minor under Phil 2) both at least 18 years of age
law but not under Illinois law. Frank breached the contract 3) solemnized by a person specifically authorized by Art 3. FC sets the ff requirements:
so IG sued him. law
4) a permanent union unless one party dies, or 1) Authority of solemnizing officer
HELD: Illinois law should apply. Matters bearing upon the marriage is annulled or declared void in special 2) Valid marriage license except in cases provided in
execution, interpretation and validity of a contract are circumstances Ch 2 of this title
26
3) Mariage ceremony w/c takes place w/ the Wong to be excluded from the country, on the ground that o& distribution of the properties of the spouses &
appearance of contracting parties before the her marriage to Blas was bereft of substantial proof. the delivery of presumptive legitimes
solemnizing officer & their personal declaration 4) there was a mistake as to identity of the contracting
that they take each other as husband & wife in the HELD: Wong should be excluded. Art.15 of our Civil Code party
presence of not less than 2 witnesses of legal age provides that the laws relating to family rights or to the status 5) one of the contracting parties was psychologically
of persons are binding upon Philippine citizens, though incapacitated to comply with the essential marital
Lex Loci Celebrationis (expressed in Art 26 FC): living abroad. Even if the marriage of Wong to Blas before a obligations
―All marriages solemnized outside the Philippines in village leader is valid in China, the same is not one of those 6) the marriage is incestuous
accordance w/ the laws in force in the country where they authorized in our country. Under Sec. 4 of Gen. Orders 68 7) marriage is void by reason of public policy
were solemnized, and valid there as such, shall also be valid (now Art. 71 CC), a marriage contracted outside the
in this country…‖ Philippines which is valid under the law of the country in Note that the exceptions put in issue the parties‘ capacity to
which it was celebrated is also valid here; but there was no enter into marrriage, thus, relating to a substantive
proof presented on the applicable law of China. Therefore it requirement.
Adong vs. Cheong Seng Gee may be presumed to be the same as our law.
(1922) Since the personal law of the parties governs questions of
FACTS: The late Cheong Boo‘s estate is being claimed by intrinsic validity of marriages b/w Filipinos abroad, the above
Cheong Seng Gee, who says that he is the legitimate child of Apt vs. Apt enumerations are exceptions to the lex loci celebrationis
the decedent with Tan Dit, whom the decedent allegedly (1947) precisely because they are controlled by lex nationalii.
married in China. FACTS: The marriage of the Apts (both Germans) was
celebrated in Argentina by proxy. The wife, a domiciliary of
HELD: The validity of the Chinese marriage cannot be England, filed a petition for the nullification of their 3. Intrinsic Validity of Marriage
recognized. There is no competent testimony what the laws marriage on the ground that proxy marriages are not valid in
of China in the Province of Amoy concerning marriage were England. It is, however, valid in Argentina. Intrinsic requirements refer to capacity or general ability of a
in 1895. There is lacking proof so clear, strong and person to marry, for instances defined by requirements of
unequivocal to produce a moral conviction of the existence HELD: The marriage is valid. The English law on marriage age & parental consent, but it does not refer clearly to an
of the alleged Chinese marriage. is locus regis actum. If a marriage is good by the laws of the individual‘s being permitted to marry a specific person or
country where it is effected, it is good all the world over, no person of a determinate class.
matter whether the proceeding or ceremony which
constituted marriage according to the law of the place would What law controls intrinsic requirements?
People vs. Mora Dumpo or would not constitute marriage in the country of domicile
(1935) of one or other of the spouses. Since the marriage was The parties‘ personal laws—either domicile or nationality.
FACTS: Dumpo married Hassan, and then married performed in Buenos Aires and in accordance with its laws,
Sabdapal without having her previous marriage annulled. As and since proxy marriage is only a form of the ceremony and Municipal laws of each state provides substantive
a defense to an allegation of bigamy, Dumpo claimed that not an essential requisite, the marriage should be upheld. requirements of marriage.
her 2 marriage was void because her father did not consent
nd

thereto. Philippine Law sets the following substantive or essential


Exceptions to Lex Loci celebrationis: The Civil Code (Art requisites:
HELD: Dumpo is not guilty of bigamy. The 2 marriage was
nd
71) enumerates bigamous, polygamous or incestuous
null and void because the consent of her father was not marriages as exceptions to the lex loci celebrationis rule. 1) Legal capacity: must be 18 years of age & not
obtained. It is an essential element of bigamy that the alleged barred by any impediment to marry each other
2 marriage, having all the essential requisites, would be valid
nd
The Family Code (Art 26) widens these exceptions.
were it not for the existence of the first. 2) Consent freely given: in the presence of an
A foreign marriage although valid in the foreign country authorized solemnizing officer
where it was entered into will be void in the Philippines if:
Matrimonial consent: Parties are, at least, not ignorant that
1) either or both parties are below 18 the marriage is a permanent union.
Wong Woo Yu vs. Vivo 2) it is bigamous or polygamous
(1935) 3) a subsequent marriage is performed w/out Mixed marriages: the law that governs substantive validity is
FACTS: Wong Woo Yu alleged before the Board of recording in the Civil Registry & registry of national law of parties.
Special Inquiry that she was allegedly married to a Filipino, Properties the judgment of annulment or
Blas, in a ceremony in China. The new Board ordered declaration of nullity of first marriage, the partition

27
Art 38. FC.: Though valid in a foreign country certain 5) one of the spouses did not freely consent to the Christianity prohibits polygamous & incestuous marriages
marriages may be void in the Philippines on grounds of marriage but care must be taken to confine doctrine to cases deemed
public policy, such as the ff: incestuous by general consent of all Christendom.

1) b/w collateral blood relatives, whether legitimate Sottomayor vs. de Barros The state may resort to ultimate escape device-
or illegitimate up to the 4 civil degree
th
(1877) contravention of a public policy to w/hold recognition of
2) b/w step-parents & stepchildren FACTS: Sottomayor and de Barros are both Portuguese and validity of a foreign marriage.
3) b/w parents-in-law & children-in-law first cousins. Under Portuguese law they are incapable of
4) b/w adopting parent & adopted child contracting marriage. They were married in London. Rule: Marriages manifestly incompatible with the ordre
5) b/w surviving spouse of adopting parent & adopted Sottomayor filed a petition to have the marriage declared public of the state of nationality of parties may be refused
child invalid. recognition.
6) b/w surviving spouse of adopted child & adopter
7) b/w adopted child & legitimate child of adopter HELD: The marriage is invalid. The law of a country where However, commentators argue that when the non/existence
8) b/w adopted children of same adopter marriage is solemnized must decide all questions relating to of marriage is merely a preliminary Q arising incidentally in
9) b/w parties where one, w/ intention to marry the the validity of the ceremony by which the marriage is alleged a case involving an issue not profaning mores of forum (such
other, killed the person‘s spouse or his or her own to have been constituted; but as regards questions on as tax, property or succession law) the rule above should not
spouse personal capacity, it must depend on the law of the domicile, be applied.
and if the laws of any country prohibit its subjects within
certain degrees of consanguinity from contracting marriage In ReDalip Singh: two women claimed that they were
Marriages Between First Cousins: and treats such as incestuous, this imposes on the subjects a lawfully wedded wives of Singh, a native of India who died
personal incapacity which continues to affect them so long as intestate in California. They claim to have been lawfully
Marriage of 1 cousins is no longer incestuous but still void
st
they are domiciled in said country and renders such married to him in India over 50 yrs ago while domiciled
ab initio on the ground of public policy. marriage invalid wherever it may have been solemnized. there in accordance w/ law of the Jat community.

It is submitted that our prohibition against marriage of 1 st


Under California laws, only 1 wife recognized as legal
st

cousins be limited only to Filipino nationals because many In re May‘s Estate widow. Wives argue that the polygamous marriages should
countries allow such marriages. (1920) be held valid on strength of Art 63 CC: ―All marriages
FACTS: Fannie is Sam‘s niece by half blood; they are both contracted w//out the state, w/c would be valid by the laws of
Marriages b/w foreigners whose national laws allow marriage Jewish and NY residents. NY prohibits marriage between the country in w/c the same were contracted are valid in this
of 1 cousins should be considered as valid in the Phil under
st
uncle and niece, so they went to Rhode Island, where such state‖.
the principle that the lex nationalii controls capacity & marriage is also prohibited except where the parties are
presumption in favor of validity of marriage, as expressed in Jewish (the Jewish faith allow such marriages). After the Court, citing English & American cases: Polygamous
Art 220. ceremony they went back to NY to live there. marriages can be recognized in English law ―so as to confer
on the ‗wives‘ the status of a wife for the purposes of Sec. 10
Hague Convention on validity of Marriages allows a HELD: The marriage is valid. The legality of a marriage of British Nationality & Status of Aliens Act or for purposes
contracting state to refuse recognition of the marriage if: between persons sui juris is to be determined by the law of of succession, & upon the children the status of legitimacy.
the place where it is celebrated. The general principle is that
1) one of spouses was already married (unless the rights dependent upon nuptial contracts are to be Marriages Celebrated by a Consular Official
marriage has subsequently become valid by virtue determined by the lex loci, subject to 2 exceptions: 1) cases Art. 9 of the relevant Hague convention: Marriage
of dissolution or annulment of previous marriage) within the prohibition of positive law, and 2) cases involving celebrated by a diplomatic agent or consular official in
polygamy or incest in a degree regarded generally as within accordance with his state law shall be considered valid as
2) spouses were related to one another by blood or the prohibition of natural law. As to the first exception, there long as it is not prohibited by the state of celebration
by adoption, in the direct line or as brother or is no ―positive law‖ in New York which serves to interdict
sister the marriage in Rhode Island of Sam and Fannie, and as to Philippine law: Marriage of Filipino nationals shall be
the second exception, their marriage was not offensive to the officiated by Philippine consul general, consul or vice consul
3) one of spouses had not attained the minimum age public sense of morality, it being allowed by the Jewish faith. (in w/c case the formal & extrinsic requirements of a valid
required for marriage nor acquired the necessary marriage license & due publication & registration under
dispensation Instances Where Recognition of Validity of Marriage May Philippine law have to be complied with).
be Withheld:
4) one of the spouses did not have the mental This is said to apply to marriage b/w Filipino national & an
capacity to consent alien provided the alien complies with marriage requisites
under his/her national law.
28
But, in Ch VIII on Domicile, some legal authorities  In Adong and Wong Woo Yu, the Court did not
Additional requirements for: consider the assignment of constructive domicile to the wife apply the Philippine policy of presumption of
as invidious discrimination on basis of gender. validity of marriage.
1) aliens - submission of a certificate of legal capacity  Question: is a proxy marriage between Filipinos in
to contract marriage issued by diplomatic/consular Property Relations of Spouses a state allowing such marriages valid? Pangalangan:
office Yes, because it is merely a formal requisite (lex
Hague Conventions on law Applicable to Matrimonial loci celebrationis apply)
2) stateless persons or refugees- submission of Property: The internal law designated by spouses before ________________
affidavit stating circumstances showing legal marriage or in absence thereof the internal law of state in w/c
capacity to contract marriage both spouses fix their habitual residence is the governing law
on matrimonial property regimes. B. Divorce and Separation

4. Effects of Marriage Art 80. Family Code: In the absence of a contrary stipulation Divorce: Absolute or Limited
in a marriage settlement, property relations of spouses shall
Personal Relations between the Spouses be governed by Philippine laws, regardless of the place of Absolute: termination of legal relationship b/w spouses by an
the celebration of the marriage & their residence. act of law.
These include mutual support, fidelity, respect, cohabitation
& right of wife to use husband‘s family name) This rule shall not apply: Limited: (Legal separation) separation form bed & board w/c
does not effect the dissolution of marital ties. But it
What is the governing law? National law of parties 1) If both spouses are aliens modifies the incidents of marriage by relieving spouses of
duty of living w// each other.
If spouses are of different nationalities, generally, the 2) With respect to the extrinsic validity of contracts
husband‘s national law may prevail as long as it is not affecting property not situated in the Philippines & This does not necessarily affect economic rights & duties
contrary to law, customs, & good morals of the forum. executed in the country where the property is located since the court may order one to provide for support. For
such purpose, it is essential that court has JD over
Art 69 Family Code: Husband & wife have the right to fix 3) With respect to the extrinsic validity of contracts respondent spouse & the property sought to be affected by
family domicile. entered into in the Phil but affecting property decree.
 Court, for compelling reasons, may exempt spouse situated in a foreign country whose laws require
from living with the other. different formalities for its extrinsic validity
Local law governs legal consequences of divorce of spouses,
Djumantan vs. Domingo: Filipino marries Indonesian. They Art 80 generally follows lex rei sitae. nationals of same country, who marry, are domiciled &
go to Philippines w/ intention of staying here permanently. divorce.
Subject of petition: Effect of marriage on wife‘s right to stay What law will govern the property relations of spouses
in the Philippines. where one is a Filipino citizen 7 the other a foreigner? It If any of above factors connected to another state… conflicts
would still be governed by Philippine law. problem arises.
There is no law guaranteeing aliens married to Filipino
citizens the right to be admitted, much less to be given Change of nationality after Marriage Divorce jurisdiction:
permanent residency, in the Philippines. If one or both spouses change nationality subsequent to
marriage, property regime remains unchanged because of Basis of JD of some countries: Domicile of one of the
―The fact of marriage by an alien to a citizen does not principle of immutability. parties or matrimonial domicile
withdraw her from operation of immigration laws governing
admission & exclusion of aliens. Marriage of an alien woman Hague Convention on Matrimonial Property Regimes. Art Ratio: Divorce, being a matter of state concern, should be
to Filipino citizen does not ipso facto make her a Filipino 7: The applicable law continues notwithstanding any change controlled by ―law of place w/ w/c person is most intimately
citizen & does not excuse her from her failure to depart of their nationality or habitual residence. concerned, place where he dwells.
from the country upon expiration of her extended stay here
as alien‖. Due process requires that forum court have a substantive
extrinsic validity: refers to formal requisites, apply lex loci contact w/ the relationship w/c it will decide won to dissolve.
Restatement 2 The wife who lives w/ her husband has the
nd:
celebrationis
same domicile as his unless special circumstances of wife Hague Convention Relating to Divorce & Separation: The
make such result unreasonable. intrinsic validity: refers to essential requisites, apply personal granting of divorce or separation must comply w/ the
law of the parties national law of spouses & the law of the place where the
application for divorce is made.
29
HELD: The divorce decree obtained in the US is not valid, longer a Filipino citizen at the time of their divorce, the
Some laws in PRiL have made because at the time it was issued, Vicenta, like Pastor, was divorce would be valid as to her and will be recognized in
still a Filipino citizen. She was then subject to Philippine law. the Philippines, and she would lose her right to inherit.
1) the right to separation or divorce depend on the Philippine law cannot recognize a foreign decree of absolute
national law of the spouses & divorce between Filipino citizens, for this would violate
declared public policy.  Tenchavez: 2 Filipinos, divorced abroad – not
2) grounds for divorce subject to law of forum recognized in the Philippines (Art. 15 CC,
provided the parties were domiciled there. nationality principle)
Van Dorn vs. Romillo  Van Dorn: 1 Filipino, 1 foreigner, divorced
Grounds for divorce are dictated by lex fori. Thus, many (1985) abroad – recognized (Art. 15 CC, estoppel)
states refuse to recognize foreign grounds for divorce unless FACTS: Van Dorn, a Filipina, married American Upton.  Pilapil: 1 Filipino, 1 foreigner – recognized
it corresponds w/ a ground justified by forum law. This is Ten years later they were divorced in the US; subsequently, (nationality principle)
followed whether the traditional or policy centered choice of van Dorn remarried. Upton filed an action against Van ________________
law approach is used. Dorn in the Philippines, asking for an accounting of certain
alleged conjugal properties.
1. Divorce decrees obtained by Filipinos 2. Validity of Foreign Divorce between
HELD: The divorce decree is valid and binding upon Foreigners
Divorce decrees obtained abroad have no validity, not Upton. Even if divorce is not valid in the Philippines for
recognized in Philippine jurisdiction. being contrary to public policy, only Philippine nationals are Hague Convention on Recognition of Divorce & Legal
covered by the policy against absolute divorces. Aliens may Separation:
BUT a marriage b/w a Filipino & a foreigner is susceptible obtain divorces abroad, which may be recognized in the
to divorce if the divorce was validly obtained by the alien Philippines provided valid according to their national law. A foreign divorce will be recognized in all contracting states
spouse (Art 26 par 2). if at the date of institution of proceedings:
Pilapil vs. Ibay Somera
Effects: (1989) a) Respondent or petitioner had his habitual
1. alien is capacitated to remarry FACTS: Pilapil and Geiling were married in Germany, but residence there, or
2. Filipino spouse shall likewise have the capacity to were later divorced. A few months later, Geiling filed a
remarry under Philippine law complaint for adultery which was dismissed; it was refiled by b) Both spouses were nationals of this state, or
the fiscal.
Effect of Provision (Art 26): partial recognition in the Phil of c) If only the petitioner was a national, he should
absolute divorce. HELD: Geiling has no legal standing to commence the have his habitual residence there
o note: Divorce should be obtained only by alien adultery case because the person who initiates the adultery
spouse. Otherwise, Art 26 is inapplicable. case must be an offended spouse, meaning he must still be US Full Faith & Credit Clause of Constitution: A sister state
married to the accused spouse at the time of the filing of the has the duty to recognize a divorce pronounced in a sister
o Provision is to remedy the uneven status of complaint. Because of the divorce decree, Geiling is no state, when both spouses are domiciled there.
Filipino nationals whose alien spouses obtained longer the husband of Pilapil; hence he had no more legal
divorce abroad & remarried while the Filipino standing to commence the adultery case (no longer an If only the plaintiff is domiciled there: Other conditions (i.e.
spouse remained married to them in eyes of offended ―spouse‖). service of process to defendant) must be fulfilled
Philippine law.
Effect of Divorce Rendered by a Foreign Country: not
Quita vs. Court of Appeals covered by Full faith & credit clause
Tenchavez vs. Escaño (1998) o but would be recognized under the same
(1965) FACTS: Quita and Padlan were married in the Philippines, circumstance that a sister state‘s divorce decree is
FACTS: Vicenta and Pastor were married without the but Quita filed for divorce in California which was granted. given recognition.
knowledge of her parents. Vicenta went to the US to obtain She remarried twice after the divorce. Upon Padlan‘s death,
a divorce, which was granted by the Nevada Court; she Quita made claims upon his estate as the surviving spouse paramount consideration: jurisdiction of foreign court based
married an American and subsequently acquired American and heir of Padlan, alleging that since Padlan was a Filipino on parties‘ domicile.
citizenship. Pastor sued Vicenta for legal separation and citizen, he remained married to her in spite of the divorce
damages. Vicenta‘s defense is that there was a valid divorce decree.
issued by the Nevada court.
HELD: Quita‘s right to inherit from Padlan depends on her
citizenship at the time the divorce was decreed. If she was no
30
Philippine Law on Recognition of Foreign Divorce Decree: o Personal law of the child is the national law of the
No provision on recognition of divorce decree b/w non- Sample conflicts Annulment Case father if the child is legitimate or legitimated.
Filipinos;
o M&F, domiciliaries of STATE A, both 18
o but such will be recognized under international o Personal law of the child is the national law of the
years old
comity, provided it does not violate a strongly held mother if the child is illegitimate.
policy of the Philippines o marry in STATE B w/out knowledge of their
parents o Legitimacy of the child determined by the national
o suit for annulment was brought in STATE C law of the father if both parents are not Filipino.
C. Annulment and Declaration of Nullity (place of M‘s residence)
In the UNITED STATES:
Effect: Affects status & domestic relations of parties. State C can exercise JD over the case but what is the as per Second Restatement On Legitimacy of the American
governing law? Law Institute
Distinction from Divorce
 Traditional choice-of-Law rules: will find sufficient o Child is legitimate if this is his status under the
Divorce Annulment and Nullity ground for the challenge local law where the parent is domiciled when the
If the lex loci celebrationis child‘s legitimacy is claimed OR when the parent
The ground occurs after Based on defects present (STATE B) requires parental consent for a acknowledged the child as his own.
marriage celebration at time of celebration valid marriage
Parental Authority over the Child
 Most Significant Relationship Approach: will not -from concept of patria potestas of Roman law
Grounds for Annulment & Nullity: yield a ground for annulment. What law controls? Father‘s personal law controls rights &
State C can conclude that since law of duties of parents & children.
o States w/ traditional choice-of-law approach: STATE A (state of marital domicile) gives
follow the lex loci celebrationis people their age full capacity to marry, no o Art. 211 FC: Reference to father‘s personal law
ground for annulment may result in joint exercise of parental authority
o States w/ policy-centered approach: follow the law
o Art. 176 FC: Personal law could grant parental
of state of marital domicile (considered to have the The Choice of Law rule of STATE C will be authority to mother of illegitimate children
most significant interest in status of persons) irrelevant
Scope of Parental Authority:
In both approaches, lex fori (which is crucial in divorce)
does not play substantial role because the action turns on the 1) care & rearing
validity of the marriage. D. Parental Relations
2) action a parent may file against another for child
Note that in either traditional or policy-centered approaches, What law determines legitimacy of a child? Personal law of custody
lex fori is not used; recall that lex fori can be used in divorce. parents - either domicile or nationality.
3) requirements for parental consent of child‘s
Both lex loci celebrationis and law of marital domicile can marriage
Most countries: father‘s personal law
provide jurisdictional basis, but only one can be a choice-of-
German law: law of head of family
law in the determination of the annulment decree.
Law on parental relations include: E. Adoption
Which states can claim adequate jurisdictional basis to hear
o Paternity
a conflicts annulment or nullity case? Definition: The act by which relations of paternity &
o Filiation
a) state where marriage was celebrated affiliation as legally existing b/w persons not so related by
b) place of marital domicile What law governs legitimacy of child in the Philippines? nature.
National law of the parents.
Wheaton vs. Wheaton: Even a court which acquires It is a judicial act w/c creates b/w 2 persons a relationship
If parents are of different nationality: national law of father is similar to that w/c results from legitimate paternity &
personal JD over parties can grant an annulment case (US
controlling. affiliation.
case).

In the PHILIPPINES: Early societies considered it as a means of perpetuating a


house or cult threatened by extinction.

31
1) Aliens who have resided in the Philippines for 3 Effects Of Adoption
Original purpose: solace for childless or people who lost years prior to the date of filing the application for
children adoption, and maintains residency until decree of What law governs rights of adopted child & other effects of
adoption is granted QUALIFIED TO ADOPT legal adption? (law that governed the creation of adoption)
Recent time: broader, more humane aim
2 different legal orders depending on which law governed
Social & moral purpose: extend protection of society (in the 2) Other requirements: the creation of adoption:
person of adopter) to the orphan. a) certification of legal capacity
Thus, persons eligible to adopt expanded b) certification that the State law would 1) If Personal law of adopter applied—same law
allow entry of the adoptee as an adopted governs effects of adoption.
What law governs? lex domicilii child of the adopter.
The adoption process affects status of parties, necessarily 2) If personal law of child applied—such law will
governed by lex domicilii. These other requirements may be waived if the adoptee is cease to regulate the resulting parent-child
related by consanguinity or affinity to the relations; it will yield to the personal law of
What if prospective adoptive parent is domiciled in one state o adopter, or adopting parents.
& the child is domiciled in another? Twin problems of o his/ her spouse as specified by law.
jurisdiction and choice-of-law. Philippine courts:
RA 8043: o Adoption relates to a civil rights of adopted
o If the main object of adoption is the welfare of the Before this, adoption of Filipino children by foreigners was child
child, the personal law of the child is the best done pursuant to Rules & Regulations on Foreign Adoption o Does not effect changes in political rights,
choice-of-law to govern his rights & bilateral agreements. including eligibility to acquire adopter‘s
citizenship
o But the personal law of the child cannot be RA 8043 regulate the adoption of Filipino children by
successfully used to invoke jurisdiction if his o aliens, or In the Philippines, principles of enforcement & recognition
domicile is merely constructive or if he is a citizen o Filipino citizens permanently residing of a foreign judgment governs, because the decree granting
of a state but he doesn‘t reside there. abroad. an adoption is in the form of a foreign judgment.

Child‘s personal law as basis for exercise of jurisdiction RA 8043 was passed in compliance with our treaty obligation
weakened in situations where child‘s domicile is: as a signatory to the Hague Convention on Protection of Uggi Lindamand Therkelsen vs. Republic
o merely constructive, or Children & Cooperation In Respect of Intercountry (1964)
o if he is a citizen of a state but he doesn‘t reside Adoption. FACTS: Therkelsen (a German) and his wife Erlinda (a
there (there is little basis for court to protect child Filipino), filed a petition to adopt Erlinda‘s natural child.
interest competently) Convention pursues modern concept of adoption: After The application was denied on the ground that an alien
possibilities of adoption for placement of child within state cannot adopt a Filipino unless the adoption would make the
The continuous movement of people in & out of countries of origin have been exhausted, intercountry adoptions may Filipino minor a citizen of the alien‘s country.
should also be factored in. be placed in the best interest of the child.
HELD: The application should be granted. Being a
Can an alien adopt a child in the Philippines? permanent resident here, Therkelsen is not disqualified to
General Rule: not allowed Republic of the Philippines vs. CA adopt under our laws; to deny the application on the above
Reason: Different family orientation, cultures, customs & (1993) stated ground would be to impose a further requisite on
traditions could pose problems of adaptation for child. FACTS: Hughes is married to Lenita, a Filipina who was adoptions by aliens beyond those required by law. The
later naturalized as an American citizen. They filed a petition citizenship of the adopter is a matter political, not civil in
Exceptions: to adopt the 3 nephews and niece of Lenita, which was nature, and the ways in which it should be conferred lay
o Art 184. Aliens who have some relationship with granted. outside the ambit of the Civil Code.
the child by consanguinity or affinity
HELD: Hughes is not qualified to adopt since he does not
o RA 8552 (Domestic Adoption Act Of 1998) fall under the exceptions in Art. 184 of the Family Code. Ng Hian vs. Collector of Customs
While Lenita, as a former Filipino, is qualified to adopt (1916)
These two introduced significant changes in adoption law. under that provision, the adoption decree still cannot be FACTS: Marcosa married Ng Chion Te. She adopted his 2
granted because of the requirement in Art. 185 that spouses children by a previous marriage and brought one of them to
Change Pertinent to Conflict Law must jointly adopt. They cannot do this in CAB because the Philippines to study. The child, Ng Hian, was refused
Hughes is not qualified under the law. entry into the Philippines.
32
HELD: Ng Hian may enter the Philippines by virtue of In the Philippines, real and personal property are ―subject to Cheesman vs. IAC
being adopted by one who has a right to do so. In the case of the law of the country where it is situated‖ (Art. 16 CC). a (1991)
Ex Parte Fong Yim, it was held that a Chinese merchant problem regarding classification will arise only when the FACTS: Thomas Cheesman (an American) was married to
domiciled in the US has the right to bring into this country property is located in a foreign country which has a law that a Filipina, Criselda. The spouses later separated; but
with his wife minor children legally adopted by him in distinguishes between real and personal property. Thomas brought this action to annul the sale of real
China, where it is shown that the adoption was bona fide, property made by Criselda in favor of Padilla. He alleged
and that the children have lived as members of his family that the sale is void for lack of his consent. The property
and have been supported by him for several years. For real property, there is very little room for choice of law, sold was bought by Criselda using her personal funds, and
because of the emphasis on lex situs. was registered in her name only.

Why? HELD: The sale was valid. He has no capacity to question


XIII. Choice of Law in Property 1) Property physically a part of the particular state, the sale of the property by his wife on the theory that in
and that state can exercise JD over it (traditional doing so he is merely exercising the prerogative of a husband
approach) in respect of conjugal property. This would permit indirect
A. The Controlling Law 2) There is need for reliable records (to protect the controversion of the constitutional prohibition. If the
sanctity of records) property were to be declared conjugal, this would accord to
The first issue to resolve in conflicts cases involving property ________________ the alien husband an interest and right over the land, which
is whether it is a movable or an immovable, because upon is not granted to him under the Constitution.
this determination will depend the controlling legal system.
B. Capacity to Transfer or Acquire Property
Immovables: regulated by lex situs; underlying this is the C. Extrinsic and Intrinsic Validity of Conveyances
characterization of immovable property as an isolated object This is governed by the law of the place where the property
of rights so that the interests of various persons are is located. The lex situs law applies to the following:
determined by the law of the place where the land is
situated. 1) formalities of a contract to convey property
Llantino vs. Co Liong Chong
The connecting factor is the immovable itself and not the (1990) 2) the essential validity of the transfer (unless the lex
parties concerned. FACTS: The Llantinos leased real property to Chong, a intentionis is clearly established)
Chinese national (but subsequently naturalized as a Filipino),
Movables: not necessarily governed by the lex situs; its for 60 years. The Llantinos filed an action to quiet title, 3) the effects of the conveyance or properties
transfer may be controlled by the a) lex domicilii, b) lex claiming that the lease contract was invalid for circumventing
situs, or c) lex loci actus (the proper law of transfer). the constitutional prohibition on the acquisition of land by D. Exceptions to the Lex Situs Rule
aliens.
Lex domicilii: the rights over the movables are governed by 3 Exceptions to the Lex Situs rule:
the law of the owner‘s domicile. HELD: The lease contract was valid, and Chong had the
right to hold by lease the property involved although at the 1) where the transaction does not affect transfer of
Lex situs: the state where the property is situated has the sole time of execution of the contract, he was still a Chinese title to or ownership of the land (proper law: lex
power to decide the validity and effects of the transfer of national. In CAB there was no option to buy the leased intentionis or lex voluntatis)
property. Also, the parties‘ legitimate expectations are property in favor of Chong. There is nothing in the record to
protected. The rationale for this is that being physically part indicate any scheme to circumvent the constitutional
of the country, it should be subject to the laws thereof. The prohibition. Liljedahl vs. Glassgow
situs is the place most closely and significantly related to the (1921)
issue in question. Aliens are not completely excluded by the Constitution from FACTS: Bailey secured a debt payable in Iowa to Liljedahl;
use of lands for residential purposes. Since their residence in as security, he mortgaged his land in Colorado. Bailey sold
Alternatives to lex domicilii and lex situs: the Philippines is temporary, they may be granted temporary this land to Glassgow, with the provision in the deed of sale
rights, such as a lease contract which is not forbidden in the that the grantee agrees to pay the mortgagee. Glassgow sold
a) Lex loci actus: law of the place where the Constitution. The only instance where a lease contract may the land to a third party. Under Iowa law, Glassgow became
transaction was completed be considered invalid is where there are circumstances bound to pay the mortgage, but not under Colorado law.
attendant to its execution which are used as a scheme to
b) the proper law of the forum: law of the state which circumvent the constitutional prohibition. HELD: Iowa law should apply, and Glassgow should pay
has the most real connection with the transfer Liljedahl. Instruments of conveyance, as they relate primarily
33
to title, are to be construed according to the law of the situs. 2. Situs of Money 4. Situs of Corporate Shares of Stocks
But personal covenants or agreements in instruments of
conveyance will be given effect according to the law of the Leon vs. Manufacturers Life Insurance: having been Under the Corporation Code (Sec. 63), shares of stock are
place where the same is executed and to be performed. endorsed in an annuity in Canada under a contract executed personal property and may be transferred by delivery of the
in that country, Canada was the situs of the money, hence certificate or certificates indorsed by the owner or his
the probate court of Manila has no JD over the funds. attorney in fact. But such transfer shall not be valid until
2) in contracts where real property is offered by way recorded in the books of the corporation in the manner
of a security for the performance of an obligation provided.
such as loan, where the security is merely an 3. Situs of Debts
accessory contract (the principal contract is
governed by the rules on ordinary contract, while 2 Kinds of Movable Property: CIR vs. Anglo California National Bank
the accessory contract on the land is governed by (1960)
the rule of lex situs) 1) choses in possession – embraces all types of FACTS: The Collector of Internal Revenue assessed
tangible physical objects deficiency income taxes against Calamba Sugar Estates for
3) testate or intestate succession and capacity to the capital gains on the sale of Pampanga Sugar Mills shares
succeed, which are governed by the national law of 2) choses in action – refers to intangible objects of stock. The sales were conducted in SF, California, and
the decedent payments were made there.
a) mere rights of actions
Under a policy-centered approach, the forum court is not b) rights represented by a document HELD: CSE not liable for income tax on the capital gains.
bound to look to the law of the situs when the situs of the (capable of delivery and susceptible to The government cannot impose income taxes on capital
movable property at the time of the transfer was insignificant negotiation as a separate legal entity) gains where the sale took place outside its territorial JD.
or accidental. Foreign corporations may be levied income taxes only on
income derived from sources within the Philippines. With
Also, when the issue involves considerations other than the Harris vs. Balk respect to capital gains, the place of the sale (which in CAB
validity and effect of the transfer itself, the courts may look (1905) is California) is also the place or source of the capital gain.
to the law of another state which has a real interest in FACTS: Harris and Balk are both North Carolina
applying its law. domiciliaries. Harris owed Balk a sum of money. When he
was in Baltimore he was served a writ of garnishment, it
Rudow vs. Fogel: since the issue did not relate to land title appearing that Balk has a debtor there. He paid pursuant to
but to whether the conveyance would result in a constructive the writ, but when he returned to N. Carolina, Balk sued F. Patents, Trademarks, Trade Name, and Copyright
trust among family members, the law applicable is the law of him for recovery of his indebtedness. Harris pleaded the
the domicile of the trustor and trustee instead of the lex situs recovery of the Maryland judgment. The Philippines is a party to the Union Convention for the
of the property. Protection of Industrial Property; said convention states in
HELD: The attachment of Harris‘ debt is valid, and the Art. 8 that a ―trade name shall be protected in all the
North Carolina court should give credit to the Maryland countries of the Union without the obligation of filing of
E. Situs of Certain Properties judgment. The obligation of the debtor to pay his debt clings registration, whether or not it forms part of the trade name.‖
to and accompanies him wherever he goes. He is as much
bound to pay his debt in a foreign state when therein sued Western Equipment and Supply Co. vs. Reyes; although
1. Situs of Personal Property for Tax upon his obligation by his creditor, as he was in the state Western equipment has not done business in the
Purposes where the debt was contracted. Philippines, it has the right to protect its reputation. The
right to the use of the company‘s corporate and trade name
The maxim mobilia sequuntur personam cannot be applied is a property right which may be asserted against the whole
to limit the right of the state to tax property within its JD. It Prof. Beale: this decision did injustice to the creditor, as he world.
yields to established facts of legal ownership, actual has no power to fix the personal presence of his debtor at
presence, and control elsewhere, and cannot be applied if it one place or another. It is unjust to submit the creditor‘s RA 8293 (Intellectual Property Code): applicant cannot
would result in inescapable and patent injustice. claim to the accident of the debtor‘s presence in one state or register marks ―well known internationally and in the
another. Philippines, whether or not it is registered here, xxx and is
used for identical or similar goods or services.‖

Under Sec. 3 of the IPC, 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
34
property rights to which the Philippines is also a party or 2. secure stability in commercial transactions 1. law of the place of the making
extends reciprocal rights to our nationals by law ―shall be 2. law of the place of performance
entitled to benefits to the extent necessary to give effect to 3. law intended by the parties
any provision of such convention…‖ A. Contracts Involving a Foreign Element

States, in their municipal laws, have different rules on the 1. Lex Loci Contractus
Philips Export vs. CA formalities of a contract, the capacity of parties, and the
(1992) essential requisites for the intrinsic validity of contracts, This refers to the law of the place where the contract is
HELD: A corporation‘s right to use its corporate and trade interpretation and the law governing execution. Forum court made. This is the place where the last act is done which is
name is a property right, a right in rem, which it may assert should be aware if there is a law that parties have in mind necessary to bring the binding agreement into being so far as
and protect against the world in the same manner as it may when they entered into a contract. the acts of the parties are concerned.
protect its tangible property, real or personal, against trespass
or conversion. It is regarded, to a certain extent, as a Interpretations of contracts are applied only when the lex Advantages:
property right and one which cannot be impaired or loci intentionis cannot be ascertained. a) relative ease in establishing place of
defeated by subsequent appropriation by another contracting
corporation in the same field. Unlike family law, contract law does not reflect strong state
policies or values. b) in applying it consistently, certainty and
stability are achieved.
Emerald Garment Mfg. vs. CA
(1995) B. Extrinsic Validity of Contracts Disadvantage: it will lead to unjust results when the place of
FACTS: H. D. Lee Co., a foreign corporation, filed a making is entirely incidental or casual and has no significant
petition for cancellation of registration of the trademark Lex loci celebrationis governs the formal or extrinsic validity relationship with the contract or its performance.
―Stylistic Mr. Lee‖ used on items of clothing by Emerald of contracts. A contract is valid as to form if in accordance
Garments, alleging that it so closely resembled H. D. Lee‘s with any form recognized as valid by the law of the country
trademark as to cause confusion, mistake and deception on where made, and that no contract is valid which is not made 2. Lex Loci Solutionis
the public as to the origin of the goods. in accordance with the local form.
This refers to the law of the place of the performance. All
HELD: A foreign corporation may have the capacity to sue Art 17, CC matters relating to time, place, manner of performance,
for infringement irrespective of lack of business activity in The forms and solemnities of contracts, wills, and other sufficiency of performance and valid excuses for non-
the Philippines on account of Section 21-A of the public instruments shall be governed by the laws of the performance are determined by lex loci solutionis because it
Trademark Law but the question of whether they have an country in which they are executed. is undoubtedly related to the contract in a significant way.
exclusive right over their symbol as to justify issuance of the
xxx writ will depend on actual use of their trademarks in the As to Contracts entered into by cablegram, telex or fax: Art.
Philippines. 1319, CC states that acceptance made by letter or telegram Macmillan & Bloedel vs. Valderama & Sons
does not bind the offeror except from the time it came to his (1964)
knowledge. The contract is presumed to have been entered FACTS: Valderama & Sons, thru an n agent, entered into a
XIV. Choice of Law in Contracts into the place where the offer was made. contract for purchase of railroad equipment with Macmillan
in Canada. Valderama failed to get an import license
Contract: meeting of the minds between 2 persons whereby because the Import Control Comm failed to act on his
one binds himself, with respect to the other, to give C. Intrinsic Validity of Contracts application. Macmillan suffered damages because it had to
something or render some service. Parties are bound not cancel the freight engagement.
only to those expressly stipulated but also to all the Intrinsic validity refers to nature, contents and effects of the
consequences which according to their nature, may be in agreement. HELD: Lex loci solutionis applies. The general rule
keeping with good faith, usage and law. governing the validity & construction of a contract & the
As a gen. rule, unless provided by law or in the rights and liabilities thereunder is that the law of the place of
agreement, a contract is obligatory in whatever form it may Art. 1318, CC: requisites of a contract performance applies.
have been entered into provided that all the essential a. consent of the contracting parties
requisites for validity are present. b. object certain In case of conflict in determining validity, nature and
c. cause of the obligation obligation and effect of contract, lex loci solutionis prevails
Principal purposes of contract: over lex loci contractus.
1. protect the reasonable expectations of the parties to the There are 3 possible laws that will govern intrinsic validity of
contract contracts:
35
The laws of Canada, which is the place of performance,
should apply. The failure of the Import Control Comm. to The parties may stipulate on the venue of the suit in case of King Mau vs. Sycip
act on the application of import license cannot constitute a litigation concerning the contract. (1954)
legal excuse for his failure to perform his obligations under FACTS: King Mau entered into an agency agreement with
the contract. It is a general rule that plaintiff has the option to choose the the Sycip in New York. King mau was able to sell 1,000 tons
venue where the suit is to be filed in action in personam. of coconut oil. KM brought an action to collect commission
However, a case arising from the contract will be litigated from the sale. Sycip claimed that the Phil court has no
3. Lex Loci Intentionis only in the forum chosen by the parties if the choice of jurisdiction as the contract was entered in New York.
forum clause specifically identifies it as the only venue.
This refers to the law intended by the parties. When the HELD: Phil court has jurisdiction. A non-resident may sue a
parties stipulate that the contract be governed by a specific Sec. 80, Sec. 3, Restatement Second. If the parties have resident in the courts of this country where the defendant
law, such will be recognized unless there are cogent reasons agreed in writing that an action shall on a controversy be may be summoned and his property leviable upon execution
for not doing so e.g. the choice-of-law provision is contrary brought only in another state and it is brought in a court of in case of a favorable, if final and executory judgment.
to a fundamental policy of the forum. this state, the court will dismiss or stay the action, unless:
It is a personal action for the collection of a sum of money
Also construction and interpretation of contracts may be 1. the court is required by statute to entertain which the CFIs have jurisdiction to try and decide.
agreed upon by parties. the action
2. plaintiff cannot secure effective relief in other
Art 1306, CC state for reasons other than delay
The contracting parties may establish such stipulations, 3. the other state would substantially be a less HSBC vs. Sherman
clauses, terms and conditions as they may deem convenient, convenient place of trial (1980)
provided that they are not contrary to law, morals, good 4. the agreement as to place of action was FACTS: HSBC granted Eastern Book Supply an overdraft
customs, public order or public policy. obtained by misrepresentation, duress, abuse secured by the directors of the latter. Eastern failed to pay.
of economic power or other unconscionable HSBC filed suit in RTC. The defense of the directors is that
Art, 1370, CC means Phil courts have no jurisdiction because in the Guarantee
If the terms of the contract are clear and leave no doubt 5. it would be unfair or unreasonable to enforce Agreement, it was provided that Singapore shall have
upon the intention of the contracting parties, the literal the agreement jurisdiction over all disputes arising therein.
meaning of the stipulations shall control. Compagnie de Commerce vs. Hamburg Amerika
(1917) HELD: Phil courts have jurisdiction. The parties did not
The law looks at the acts of the parties and the surrounding FACTS: Compagnie (french) and Hamburg (Germany) stipulate that only the courts of Singapore, to the exclusion
circumstances which may possibly have exerted some entered into a charter party to transport C‘s goods from of all the rest, has jurisdiction. Neither did the clause in
influence upon their actions and then assumes that their Saigon- Europe. Because of the impending war between question operate to divest Phil. courts of jurisdiction.
intentions are in harmony with such acts and circumstances. France & Germany, the ship went to Manila because Saigon
is a French port. C filed for breach of contract. H contested Jurisdiction is defined as the right of a State to exercise
Parties are presumed to contemplate to enter into a valid the jurisdiction of Phil courts to try the case because the authority over persons and things within its boundaries
contract. The court should apply the law that will sustain the contract had a clause directing the settlement of disputes first subject to certain exceptions. This authority is exclusive
contract. to a Board of Arbitration in England. within and throughout the domain of the State.

HELD: Phil. courts have jurisdiction. The parties are free


D. Capacity to Enter into Contracts to waive the stipulation if they so desired. Pangalangan: HSBC case is disappointing—why did the
courts not recognize the choice of forum clause? Courts are
The capacity to enter into contracts is governed by the rule Phil courts cannot be ousted of their jurisdiction by the ―turf-conscious‖; for PRIL to progress, there is a need for
on status and capacity (personal law). In countries that follow contractual stipulation in the absence of averment and proof each country to give up some of its exercise of sovereignty.
the nationality principle, the national law prevails (art. 15, that under the law of England (place of contracting), _______________
CC). In countries that follow the domiciliary principle, law of compliance with, or an offer to comply with such a
their domicile governs. stipulation constitutes a condition precedent to the
institution of judicial proceeding for the enforcement of the
contract.
E. Choice of law Issues in Conflicts Contracts Cases Besides, Hamburg appeared and answered without objecting
to the court‘s jurisdiction; it also sought affirmative relief.

1. Choice of Forum Clause


36
2. Contracts with Arbitration Clause forum experienced and capable in the resolution of demand and the unexplained delay in acting on her claim,
admiralty litigation. amounted to bad faith and renders unquestionable its
liability for damages.
Puromines vs CA
((1993) 3. Adhesion Contracts
FACTS: Puromines and Philip Bros. entered into a contract Specific Instances where court disregarded the adhesion
of sale with an arbitration clause. Puromines filed for Adhesion contract is one that is not negotiated by the parties contract:
complaint in RTC, Manila. Philip Bros. filed a MTD on the having been drafted by the dominant party and usually 1) when the party is not literate in the language of
basis of an arbitration clause. embodied in a standardized form. It is called a contract of the contract with knowledge of what was intended
adhesion because the participation of 1 party is limited to
HELD: Arbitration clause is valid. Puromines derives its affixing her signature. 2) when there is undue advantage made by a
right from the bill of lading together with the sales contract & dominant party usually a huge corporation or a
it is bound by the provisions and terms of the bill of lading business monopoly
and of the arbitration clause incorporated in the sales Pan Am World Airways vs. Rapadas
contract. (1992) 3) when there is ambiguity in the adhesion contract,
FACTS: Rapadas‘ samsonite was lost and Pan Am offered to it must be resolved contra preferentum and in
The courts will look with favor upon such amicable settle the claim for $160. Rapadas refused and filed an favor of the party impugning it
settlements (arbitration) and will only interfere with great action in court. The defense of Pan Am is that the claim is
reluctance to anticipate or nullify the action of the arbitrator. subject to the Notice of baggage Liability Limitations 4) when it is subversive of public policy when the
The Bremen vs. Zapata contained in the passenger ticket. weaker party is imposed upon in dealing with the
(1972) dominant bargaining party and is reduced to the
FACTS: Zapata, a Houston company, entered into a HELD: The liability is limited by the Notice of Baggage alternative of taking it or leaving it, completely
contract of towage with Unterweser, a German corp. liability. Although the ticket is a contract of adhesion, it does deprived of the opportunity to bargain on equal
Contract contained a forum selection clause which provides not offend against the policy of the law forbidding one from footing
that any dispute arising must be treated before London contracting against his own negligence. The one who adheres
courts. to the contract is in reality free to reject it entirely. Court Sweet Lines vs. Teves: Petitioners assail the validity of the
finds the provisions in the plane ticket sufficient to govern tickets issued by Sweet Lines.
Zapata filed a suit in admiralty against Unterweser for breach the limitations of liabilities of the airline for loss of luggage.
of contract and damages in Florida District Court. The passenger, upon receiving his plane ticket, was expected HELD: The adhesion contract is void. It is not just and
Unterweser filed motion to dismiss for lack of jurisdiction to be vigilant insofar as his luggage is concerned. proper to expect that the passengers examined their tickets
citing the forum-selection clause. from the crowded counters esp. if there are a number of
conditions in fine print. Also, shipping companies, esp.
HELD: Florida court has no jurisdiction. As a rule, a forum PAL vs. CA inter-island vessels, possess a virtual monopoly over the
clause should control absent a strong showing that it should (1996) business of transporting the passengers between ports
be set aside. Court should enforce the forum clause FACTS: Mejia shipped through PAL 1 microwave oven covered by their franchise. Lastly, the court took judicial
specifically unless Zapata could clearly show that from San Francisco to Manila. Upon arrival, she discovered notice of the fact that these passengers come from low-
that the front glass door was broken and the oven could not income groups and are less literate and who have little or no
a. enforcement would be unreasonable and unjust or be used. Mejia filed action against PAL. PAL denied liability choice but to avail of petitioner‘s vessels.
b. that the clause was invalid for such reasons as fraud or and alleged that it acted in conformity with the Warsaw
overreaching or Convention.
c. if enforcement would contravene a strong public policy
of the forum in which suit is brought, whether declared HELD: Although the airway bill is binding between the Parties may include any stipulation as long as such
by a statute or by judicial decision or parties, the liability of Pal is not limited on the provisions of stipulations do not violate public policy or morals of the
d. if the chosen forum is seriously inconvenient for the the airway bill. While the Warsaw Convention is law in the forum.
trial of the action. But if the parties contemplated the Philippines, the Philippines being a signatory thereto, it does
claimed inconvenience, it should not be heard to not operate as an exclusive enumeration of the instances Lessons:
render the forum clause unenforceable. when a carrier shall be liable for breach of contract or as an  PanAm: not all contracts of adhesion are against
absolute limit of the extent of liability nor does it preclude public policy; balancing of interests (airline vs.
The CAB involves a freely negotiated international the operation of the Civil Code or other pertinent laws. passenger)
commercial contract between the parties. As noted, selection  PAL vs. CA: when there is ambiguity in adhesion
of a London forum was clearly a reasonable effort to bring Also, the willful misconduct and insensitivity of the officers contract, construe against the drafter.
vital certainty to this int‘l transaction and to provide a neutral of PAL in not attempting to explain the damage despite due ________________
37
Liabilities of the Carrier: confirming reservation even if EE had knowledge that they
4. Special Contracts were merely waitlisted and not notifying Lopezes of the
a. in case of death or wounding- carrier‘s liability is not cancellation.
In sales or barter of goods, the law of the place where the more than $75,000.
property is located will govern (lex situs). b. The limits do not apply when the damage is caused by
the act or omission of the carrier, his servants or agents, KLM Royal Dutch vs. CA
A simple loan granted by financial institutions is governed by done with the intent to cause damage or recklessly and (1975)
the law of the permanent place of business. But if granted by with knowledge that damage would probably result, FACTS: Mendozas went on a world tour. KLM issued the
a private individual, it is governed by the law of the place provided that the agent was acting within the scope of tickets for the whole trip. Their coupon for Aer Lingus was
where the loan was obtained. his employment. marked RQ. Thru KLM‘s help, reservations were made in
c. In case of loss or damage to baggage - $20/kilo for the Aer Lingus flight. Upon arrival, only the minors were
In contracts of pledge, chattel mortgage and antichresis, the checked baggage and $400/passenger for unchecked allowed to board. Mendoza sued for breach of contract and
extrinsic and intrinsic validity of the contracts are governed luggage unless a higher valuation is agreed upon by the for damages bec. of the humiliation they suffered. KLM
by lex situs. parties denied liability on the basis of Art. 30 of the Warsaw
d. Prescription. Action must be brought within 2 years Convention (successive carriers liability)
from date of arrival at the destination, or from date
Carriage of Goods by Sea which the aircraft ought to have arrived or from the HELD: Art. 30 does not apply and KLM should be
date on which the transportation stopped. accountable for the tortious act of Aer Lingus.Art. 30
e. Venue. Any action for damages may be brought either presupposes either an accident or delay and not the situation
American President Lines vs. Klepper in the court of the in CAB. Although the tickets provide that KLM‘s liability for
(1960) 1. domicile of the carrier damages is limited to occurrences in its own airlines, this
FACTS: K shipped on board APL‘s vessel personal effects. 2. principal place of business provision was printed in very small letters such that a
Because of damage to the effects, K sued APL. CA affirmed 3. place of business where the contract was made magnifying glass is needed to read it. It would be unfair to
CFI‘s finding of liability but awarded damages on the basis of 4. place of destination charge Mendozas of automatic knowledge and it is the duty
the COGSA. 5. Successive Carriers. Each of the successive carriers of KLM to inform them of the conditions prescribed in the
is bound by the rules on the Convention and shall tickets or at least make sure that they read them before they
HELD: COGSA does not apply but the Civil Code. Article be deemed to be one of the contracting parties accepted the tickets. This it failed to do.
1753 of the Civil Code provides that the law of the country insofar as the part of the transportation which is
to which the goods are to be transported shall govern the performed under his supervision. But for goods or
liability of the common carrier in case of loss, destruction or baggage, the passenger or consignor has a right of
deterioration. Under Article 1766, "In all matters not action against the first carrier and the consignee American Airlines vs. CA
regulated by this Code, the rights and obligations of who is entitled to receive the same, against the last (2003)
common carriers shall be governed by the Code of carrier. They must take action against the carrier FACTS: Mendoza bought conjunction tickets from
Commerce and by special laws," and in the Civil Code there who performed the transportation during which Singapore Airlines. Although it was not a participating
are provisions that govern said rights and obligations. the loss, damage or delay took place. airline, AA exchanged the unused portion of the ticket for a
Although Section 4 (5) of the Carriage of Goods by Sea Act one-way ticket to New York. However, Mendoza was
states that the carrier shall not be liable in an amount prevented by AA‘s security officers from boarding until all
exceeding $500.00 per package unless the value of the goods Lopez vs. Pan Am the other passengers have boarded. He sued action for
had been declared by the shipper and inserted in the bill of (1965) damages against AA in RTC. AA claimed that the issuance
lading, this is merely suppletory to the provisions of the Civil FACTS: Despite several confirmations, Sen. Lopez and his of a new ticket created a separate contract of carriage from
Code. family failed to get 1 class seats and were constrained to
st
the one with SA and therefore, under Art. 28, RTC had no
board as tourist passengers of PanAm. CFI, Rizal awarded jurisdiction over the case against AA.
damages in their favor. Pan Am admitted the breach of
Contracts for International Air Transportation contract but not the finding of bad faith HELD: RTC had jurisdiction; the new ticket is not
considered as separate from the one issued by SA but the
The Warsaw Convention and amendments to the same HELD: Pan Am acted in bad faith. Pan Am misled the contract of carriage constitutes a single operation. SA & AA
regulate and establish uniform rules and regulations on the Lopezes into believing the reservations were valid and was are members of the IATA and under the general pool
liability of international airline carriers in cases of death, prompted by self-interests in dong the same (precluding the partnership agreement they act as agents of each other in the
injuries of passengers or loss or damage of cargo. The Phils. Lopezes to secure other tickets). Also, there was negligence issuance of tickets to contracted passengers. When AA
became a member thereof in 1951. by its employees that were so gross and reckless as to exchanged the ticket, it entered it in the IATA clearing
amount to malice and bad faith, e.g. erroneous cancellation house and undertook to transport M. It thereby assumed the
of reservation, not confirming reinstatement of reservation, obligation to take the place of the principal carrier originally
38
designated and constituted itself as an agent of SA. The 3. place of business where contract is made – San 2) if it ousts the jurisdiction which the court has
number of tickets issued does not detract from the oneness Francisco already acquired over the parties and the subject
of the contract of carriage as long as the parties regard the 4. place of destination – San Francisco (not Manila matter
contract as a single operation. because it was merely an agreed stopping place, SF is
still the ultimate place of destination 3) if it affects a public policy or the matter is heavily
impressed with public interest
Chiok vs. China Airlines
FACTS: Chiok purchased ticket from CAL exclusively Distinction between KLM and China Air: in KLM, KLM 4) in case of confession-of-judgment clauses (waives
endorsable to PAL. While in Hkong, his flight was was the only company the passenger dealt with; in Chiok, it the debtors right to receive notice or authorizes
confirmed by both CAL and PAL attaching their respective was alleged that Chiok himself (passenger) requested for the entry of judgment)
stickers. On the day of his flight to Manila, he was informed PAL booking. It can then be argued that CAL should not be
by a PAL employee that he was not in the computer list so held liable.
he was not allowed to board. Using another CAL ticket, he ________________
was able to return to Manila. C sued CAL. CAL denied XV. Choice of Law in Wills, Succession and Administration
liability as the carriage was performed by PAL. of Estates
F. The Applicable law in the absence of an Effective
HELD: Cal is liable. The ruling in KLM is applicable. The Choice
contract was between CAL and C, with the former endorsing Will or testament: act whereby a person is permitted, w/
to PAL the HK-Mla segment. This can be treated as a single According to the 2 Restatement, in the absence of an
nd formalities prescribed by law, to determine to a certain
operation under Art. 15, IATA Rules and Art. 1 of the effective choice of law, these factors will be considered in extent the distribution of his estate to take effect after his
Warsaw Convention determining the state with which contract has its most death.
significant relationship
Art. 1, Sec. 3 WC: transportation to be performed by several It is a disposition made by a competent testator in the form
successive carriers shall be deemed to be one undivided 1. place of contracting prescribed by law of property over which he has legal power
transportation, if it has been regarded by the parties as a 2. place of negotiating of the contract of disposition
single operation, whether it has been agreed upon under the 3. place of performance
form of a single contract or of a series of contracts. 4. situs of the subject matter of the contract Conflicts of Law Perspective:
5. domicile, residence, nationality, place of incorporation Will: an involuntary transfer of property, because it comes
Art. 15 IATA: carriage to be performed by several and place of business into effect only upon death of owner. Death is involuntary,
successive carriers under one ticket, or under a ticket and 6. place under whose local law the contract will be most thus making a will is an involuntary transfer of property.
any conjunction ticket issued therewith, is regarded as a effective
single operation. Wills are governed by the ―proper law‖
Pal acted as carrying agent of CAL, thus, CAL cannot evade Courts should localize the contract by examining the o common law- law of domicile of testator
liability. contacts it has with a state relative to the cogency to the issue. o civil law- national law of testator
Example: For contracts involving liability for destruction of
goods in transit, the state of the most significant relationship
Santos III vs. Northwest Airlines is the state of destination. A. Extrinsic Validity of Wills
(1992)
FACTS: Santos bought a roundtrip (SF-Manila-SF) ticket In the absence of an effective choice of law, courts applying Filipino national making a will abroad may comply with:
from NW airlines office in SF. Despite previous a policy-centered approach will apply its own law when there o lex nationalii (no express provision) or
confirmations, he was informed that he had no reservation are significant contacts with the transaction. Once these exist, o lex loci celebrationis (Art 17, 815)
on his trip. He sued NW for damages in RTC Makati. NW the forum has a real interest in applying its own law and such
filed MTD for lack of jurisdiction. would not be fundamentally unfair to the parties. The court Pertinent Conflict-of-law rules:
should also consider the legitimate expectations of the (referring to law of place where will was executed as law
HELD: Phil court has no jurisdiction to hear the case under parties. governing forms & solemnities of will)
Art. 28 of the Warsaw Convention. This article enumerates Art 17: The forms and solemnities of contracts, wills, and
the places where action must be filed, to wit: other public instruments shall be governed by the laws of the
1. Domicile – Minnesota, USA (domicile must be G. Limitations to Choice of Law country in which they are executed.
understood in the English sense – place of
incorporation) 1) if the law selected has no connection at all with the When the acts referred to are executed before the
2. principal place of business – Minnesota transaction or the parties diplomatic or consular officials of the Republic of the

39
Philippines in a foreign country, the solemnities established In re Estate of Johnson
by Philippine laws shall be observed in their execution. (1918) Joint wills executed in the Philippines by aliens (whose laws
FACTS: Ebba Ingeborg sought to annul the probate of the do not prohibit it): the law is silent
Prohibitive laws concerning persons, their acts or property, will of his father Emil Johnson, because the resulting
and those which have for their object public order, public intestacy would be favorable to her as a sole heir. She It is suggested that such will should not be probated if it
policy and good customs shall not be rendered ineffective by stresses that Section 636 of the Code Of Civil Procedure affects heirs in the Philippines (in accordance with the
laws or judgments promulgated, or by determinations or should not govern the will executed by her father in the US, expressed policy in Art 819).
conventions agreed upon in a foreign country. because the word ―state‖ in the body of the section is not
capitalized (thus not referring to a State in the US).
Art 815: When a Filipino is in a foreign country, he is Extrinsic Validity of Holographic Wills
authorized to make a will in any of the forms established by HELD: This interpretation is erroneous because the full
the law of the country in which he may be. Such will may be phrase ―another state or country‖, means that the section Art 810: a holographic will is one entirely written, dated and
probated in the Philippines. (n) refers to either a State in the US or another country. The signed by the hand of the testator himself. It is not subject to
admission of the will to probate by the CFI of Manila under any other form, need not be witnessed and may be made in
Section 636 was therefore correct. Although the CFI Of or out of the Philippines.
What is the proper law for wills written abroad by Filipinos? Manila most likely erred in taking judicial notice of Illinois
(There is no express provision that it is lex nationalii) law when it promulgated that the will was executed in
conformity with the laws of Illinois, Ebba is now precluded Art 816 & 817 are also applicable to holographic wills
Tolentino: to raise this issue because the petition to annul the probate
Art 815 follows general rule of lex loci celebrationis. did not allege the difference between Philippine Law and Merits:
Illinois law. o simple
The Civil Code did not mean to invalidate the will of a o convenient
Filipino made in conformity w/ Phil law. Extrinsic Validity of Joint Wills o does not require notarization
o guarantees absolute secrecy
Aliens making wills outside the Philippines are, under Art Art 818. Two or more persons cannot make a will jointly or
816 & 817, permitted to follow: in the same instrument, either for their reciprocal benefit or Demerits:
o lex nationalii for the benefit of a third person. o peculiarly dangerous
o lex domicilii o an invitation to forgery
o lex loci celebrationis Joint wills are prohibited on grounds of public policy, o short statements can confuse
because: handwriting experts
Article 816. The will of an alien who is abroad produces
effect in the Philippines if made with the formalities 1) a will is a purely personal & unilateral act & this is
prescribed by the law of the place in which he resides, or defeated if 2 or more persons make their will in Babcock Templeton vs. Rider Babcock
according to the formalities observed in his country, or in the same instrument (1928)
conformity with those which this Code prescribes. (n) FACTS: The will of Jennie Rider Babcock was executed in
2) the revocable character of a will is defeated, California. Babcock Templeton, being the mother of the
Article 817. A will made in the Philippines by a citizen or because if one of testators revoke the will, the three beneficiaries of the will, stressed that the laws of
subject of another country, which is executed in accordance other testators will have no instrument left California should govern the probate since Jennie Rider
with the law of the country of which he is a citizen or subject, Babcock acquired domicile in California. William Rider
and which might be proved and allowed by the law of his 3) it exposes a testator to undue influence & may Babcock opposes this by stressing that her sister never
own country, shall have the same effect as if executed even tempt one of testators to kill the other acquired domicile in California as her latest domicile was
according to the laws of the Philippines. (n) New York.
4) when a will is made jointly or in same instrument,
It cannot be assumed that the Code places a Filipino citizen the more aggressive spouse is liable to dictate the HELD: Her domicile was California, because even though
in a worse position than an alien in relation to our law. terms of the will for his/her own benefit she later left California for New York, she never intended to
- where will is also reciprocal, either of the be a New York domiciliary. The trial court was also correct
The Code should have expressly stated this considering spouses who may be wicked may be tempted to in admitting the will for probate under Section 636 of the
general provision in Art 17. kill the other. Code Of Civil Procedure, because the length of time of her
residence in and eventual death in the Philippines did not
result into a loss of her US citizenship. She never intended
Joint wills executed by Filipinos in a foreign country allowing to become a Philippine domiciliary, thus making Section
joint wills are expressly invalidated by law. 618 inapplicable to the will she executed abroad.
40
one of property and not of succession, thus making
B. Intrinsic Validity of Wills Philippine law the governing law as the lex rei sitae. Presence of ambiguous provisions
Presumptions to help interpretation:
- governed by lex nationalii 1) The interpretations of such should be determined in
Cayetano vs. Leonidas accordance w/ laws & customs of that state most probably in
Art 16: Real property as well as personal property is subject (1984) mind of testator
to the law of the country where it is stipulated. FACTS: Upon the death of Adoracion Campos, her father
Hermogenes sought to be declared as owner of the entire 2) In case a will admits of different dispositions, the
estate as the only compulsory heir. On the other hand, interpretation by which the disposition is to be operative
However, intestate and testamentary successions, both with Nenita Paguia (one of Adoracion‘s sisters) sought the shall be preferred
respect to the order of succession and to the amount of reprobate of the will executed by Adoracion in the US.
successional rights and to the intrinsic validity of When the trial court allowed probate of the will in the Article 788. If a testamentary disposition admits of different
testamentary provisions, shall be regulated by the national Philippines, Hermogenes raised in issue that the allowance interpretations, in case of doubt, that interpretation by which
law of the person whose succession is under consideration, of the will to probate divested him of his legitime, because the disposition is to be operative shall be preferred. (n)
whatever may be the nature of the property and regardless of the will preterited him.
the country wherein said property may be found. (10a) D. Revocation
HELD: Since the governing law with respect to the amount
of successional rights is the national law of the decedent, the Article 829. A revocation done outside the Philippines, by a
Miciano vs. Brimo: Miciano, as the administrator of the governing law of Adoracion‘s will is Pennsylvania law. And
estate of Joseph Brimo, filed a petition for the partition of person who does not have his domicile in this country, is
since Pennsylvania law does not have a system of legitimes, valid when it is done according to the law of the place where
the estate. Andre Brimo opposed the partition because the Hermogenes is therefore not preterited. Although the
will itself was not executed in accordance with the laws of the will was made, or according to the law of the place in
Philippines adopt a system of legitimes as a matter of public which the testator had his domicile at the time; and if the
Turkey, in violation of Article 10 of the Civil Code. policy, such policy does not extend to the successional rights revocation takes place in this country, when it is in
of foreigners. accordance with the provisions of this Code. (n)
The Court decided that although Andre Brimo opposed his
brother‘s intention to have Philippine laws apply he was not Revocation:
deemed to have contested the legacy, because the choice of 1. lex loci celebrationis
law clause in the will was contrary to law. Our laws apply the General Rule: the probate court can only rule on: 2. lex domicilii
lex nationalii of decedent to determine intrinsic validity of a 1) extrinsic validity 3. according to our Code
will and this law was purposefully disregarded by decedent. 2) due execution
The Court considered this clause as not imposed and ―shall 3) testamentary capacity Article 830. No will shall be revoked except in the following
I no manner prejudice the heir even if the testator should 4) compliance with requisites/solemnities prescribed cases:
otherwise provide. by law 1) By implication of law; or
__________________
2) By some will, codicil, or other writing executed as
Criticisms on the Miciano vs. Brimo decision: provided in case of wills; or
C. Interpretation of Wills
Considering the primacy of giving primacy to the last will 3) By burning, tearing, canceling, or obliterating the
and testament of the decedent, the court should have Interpretation of wills is to be governed by lex nationalii. will with the intention of revoking it, by the testator
respected the wishes of the decedent (i.e. the clause in the himself, or by some other person in his presence,
will should not have been annulled) by applying a policy- If terms are clear & unambiguous: lex intentionis and by his express direction. If burned, torn,
centered approach. cancelled, or obliterated by some other person,
When there are ambiguous provisions: intention of party without the express direction of the testator, the
Using the most significant relationship approach, Philippine may be inferred by referring to context of the will & the will may still be established, and the estate
law would govern because Joseph Brimo is a Philippine testator‘s acts. distributed in accordance therewith, if its contents,
resident, the properties are in here, and he made the will and due execution, and the fact of its unauthorized
here… the only contact with Turkey is the fact of his Article 1371. In order to judge the intention of the destruction, cancellation, or obliteration are
nationality. contracting parties, their contemporaneous and subsequent established according to the Rules of Court. (n)
acts shall be principally considered. (1282)
Under the escape device of ―disingenuous characterization‖, Problem: Testator revokes his will in then domicile State A
the same result could have resulted without flouting testator‘s Article 1375. Words which may have different significations and dies in his new domicile State B. If his revocation under
will. The court could have characterized the main issue as shall be understood in that which is most in keeping with the the laws of State A is invalid under State B laws, what law will
nature and object of the contract. (1286) apply?
41
Section 1. Will proved outside Philippines may be allowed HELD: In the absence of proof that the municipal district
Common law practice: law of the domicile at the time of here. Wills proved and allowed in a foreign country, court of Amoy is a probate court and on the Chinese law of
death. according to the laws of such country, may be allowed, filed, procedure in probate matters, it may be presumed that the
and recorded by the proper Court of First Instance in the proceedings in the matter of probating or allowing a will in
Philippine law: law of the place of revocation. Philippines. the Chinese courts are the same as those provided for in our
laws on the subject. Because of this, rules on notice must be
Testamentary capacity is the capacity to comprehend the followed. Since Silvino did not cause the notification of the
nature of the transaction in which the testator is engaged at other heirs, this petition must fall.
Notice that there is a difference in the applicable law the time, to recollect the property to be disposed of and the
governing revocation of wills by a person domiciled in the persons who would naturally be supposed to have claims
Philippines and a non-domiciliary: upon the testator, and to comprehend the manner in which Vda. De Perez vs. Tolete
 For domiciliary: the governing law is the law of the the instrument will distribute his property among the objects (1994)
place where the revocation was made (lex actus) of his bounty. (Bugnao vs. Ubag, 014 SCRA 163) FACTS: Each of the Cunanan spouses (Jose and Evelyn)
 For non-domiciliary: the governing law is the law executed a will in New York containing similar provisions on
where the will was executed (lex loci celebrationis) Rule 77 Section 1 + testamentary capacity - will made in a the presumption of survivorship. When the entire family
__________________ foreign country allowed here in the Philippines !!! (see perished in a fire that gutted their home in New York, Rafael
Article 816) as the named trustee in the will of Jose filed separate
proceedings in New York for the probate of the wills of his
E. Probate A will allowed in a foreign country in accordance with the brother and sister-in-law. Later, Salud Perez (mother of
law of that country may be allowed in the Philippines… no Evelyn) filed a petition for reprobate in Bulacan. Rafael
Probate: an adjudication that the last will and testament of a need to prove testamentary capacity and due execution (see opposed by arguing that Salud was not an heir as per New
person was executed with all the formalities required by law Article 817). York law which must be the law that should govern the wills
as they were executed in New York. In deciding the matter,
As part of procedural law, probate is governed by the law of Common Law conflicts rules… the necessary evidence that should be submitted are:
the forum. 1) If the will is valid under the laws of the last
domicile, the will is valid everywhere with respect (1) the due execution of the will in accordance with
to movable property the foreign laws
But the forum will still have to look at the foreign law (2) the testator has his domicile in the foreign country
concerning compliance with extrinsic validity. and not in the Philippines
2) but the probate in the last domicile does not affect
real property, as these will be governed by lex rei (3) the will has been admitted to probate in such
sitae country
Rule 76 Section 9 Grounds for disallowing will.: The will (4) the fact that the foreign tribunal is a probate court
shall be disallowed in any of the following cases; (5) the laws of a foreign country on procedure and
Suntay vs. Suntay allowance of wills.
(a) If not executed and attested as required by law; (1954) Except for the first and last requirements, the petitioner
FACTS: Natividad Billian sought to have the will (executed submitted all the needed evidence. Salud failed to submit
(b) If the testator was insane, or otherwise mentally incapable in the Philippines) of his husband Jose Suntay probated. the 1 and 5 requirement. While the probate of a will is a
st th

to make a will, at the time of its execution; The trial court denied probate because during the course of special proceeding wherein courts should relax the rules on
the proceedings, the will was lost. Later, her son Silvino filed evidence, the goal is to receive the best evidence of which
(c) If it was executed under duress, or the influence of fear, a petition for the probate of a will allegedly executed by the matter is susceptible before a purported will is probated
or threats; Suntay in China. The trial court again denied probate, and or denied probate. Not only that, Salud also failed to notify
was correct in deciding that way, because there was no proof the heirs of Jose of the proceedings.
(d) If it was procured by undue and improper pressure and that:
influence, on the part of the beneficiary, or of some other 1. the municipal district court of Amoy, China, is a HELD: The rule that the court having jurisdiction over the
person for his benefit; probate court reprobate of a will shall "cause notice thereof to be given as
2. there was a law of China on procedure in the in case of an original will presented for allowance" means
(e) If the signature of the testator was procured by fraud or probate or allowance of wills that with regard to notices, the will probated abroad should
trick, and he did not intend that the instrument should be 3. the legal requirements for the execution of a valid be treated as if it were an "original will" or a will that is
his will at the time of fixing his signature thereto. will in China in 1931 were satisfied presented for probate for the first time. Accordingly,
4. the order of the municipal district court of Amoy compliance with Sections 3 and 4 of Rule 76, which require
Rule 77 purports to probate the will publication and notice by mail or personally to the "known

42
heirs, legatees, and devisees of the testator resident in the  succession – national law In determining the applicable law, consider the policies of:
Philippines" and to the executor are required.  administration – situs of property (territorial/JDal) a) upholding the justified expectation of parties, and b)
______________ minimizing the adverse consequences that might follow from
subjecting a party to the law of more than one state.
F. Administration of Estates
G. Trusts Conflicts torts cases arise:
Duties of the administrator:
Trust: a right of property, real or personal, held by one party 1) when the tortious conduct and place of resulting
1) to manage and settle the debts of the decedent for the benefit of the other. injury are different and one state imposes higher
(primary purpose) standards than the other state
The trust contains an express choice-of-law provision.
2) to distribute the residuum of the estate to the heirs 2) when there are different product liability laws and
(secondary purpose) varying judicial interpretations of the extent of
The courts usually apply that law in keeping with the policy
of carrying out the intent of the creator of the trust. liability
When the will has been proved or allowed, it is the duty of
the probate court to issue letters testamentary thereon to the When the trust does not contain an express choice-of-law
person so named in the will upon the latter‘s application. provision, the Court will deem controlling the law that will
sustain the validity of the trust.
When there is no will, the court may appoint an Policies:
administrator. Choices-of-law for testamentary trusts: 1) deter undesirable or wrongful conduct
2) rectify consequences – by distributing the losses
Two kinds of administrators: a) rules governing the intrinsic and extrinsic validity  similarity between family conflicts cases and torts
of wills conflicts cases: strongly held policies of the state
a) domiciliary -power over assets located in state
b) lex rei sitae with respect to the property 3 concerns in torts:
b) ancillary- appointed by a foreign court to look 1) achieving just and reasonable results (consider the
after the properties located in such foreign state interest of both parties
2) societal interest
XVI. Choice of Law in Torts and Crimes 3) shielding defendant from unnecessary surprise
Tayag vs. Benguet Consolidated Inc.
(1968) Distinguish: ―upholding the legitimate expectations of
FACTS: BCI stocks owned by the decedent Idonah Slade Tort: derived from the French word torquere or ―to twist‖. It parties‖ vs. ―shielding defendant from unnecessary surprise‖
Perkins were in the possession of the domiciliary is an act or omission producing an injury to another without – the first is used in contracts cases, the second is used in
administrator County Trust Company Of New York. Later, any previous existing lawful relation of which the act or torts cases.
the CFI Of Manila named Renato Tayag as the ancillary omission may be said to be a natural outgrowth or incident.
administrator. When Tayag obtained a court order for the Why is the ―place of the tort (locus delicti)‖ difficult to
County Trust Company to deposit the stocks to him, BCI determine? Different concepts of locus delicti:
appealed. A. Policies behind Conflicts Tort Law 1) civil law: place of tortious conduct
2) common law: place of injury/vested rights theory
HELD: The appeal must fail. BCI is a Philippine 2 Important Policies underlying substantive tort law:  to determine lex loci delicti: determine whether
corporation owing full allegiance and subject to the you are dealing with a civil law or common law
unrestricted jurisdiction of local courts. Its shares of stock 1) to deter socially undesirable or wrongful conduct country
cannot therefore be considered in any wise as immune from ________________
lawful court orders. The situs of shares of stock is the place 2) to rectify the consequences of the tortuous act by
of domicile of the corporation. And since the power of the distributing the losses that result from accident and B. Lex loci delicti commissi
ancillary administrator over shares located here is beyond products liability
question, it follows that the stocks should be in the Lex loci delicti commissi: the law of the place where the
possession of Tayag. In view of these, the policy behind tort law will most likely alleged tort was committed. It determines the tort liability in
be a strongly held policy of the state and as result, that state matters affecting conduct and safety.
will not easily displace its own law with the law of another
Succession and administration of estates are governed by state.
different laws:
43
Difficulty has been encountered in determining the locus C. Modern Theories on Foreign Tort Liability
delicti where the liability producing conduct happens in one False conflict: only one state has an interest in having its law
state but the injuries are sustained in another. applied, and failure to apply the other state‘s law would not
1. The Most Significant Relationship impair the policy reflected in that law.
Common law concept of place of wrong: place where the last
event necessary to make an actor liable for an alleged tort This theory considers the state‘s contacts with the Apparent conflict: more than one state has an apparent
occurs. It adheres to the vested rights theory, so that if harm occurrence and the parties. interest in applying its law to the case.
does not take place then the tort is not completed.
Negligence or omission is not in itself actionable unless it Two-fold purpose: Prof. Currie: if only one state has a real interest in the case
results in injury to another. 1) identify the interested state and the other state‘s interest is insubstantial then there is a
2) evaluate the relevance of these contacts to the false conflict. However, if both states have a real interest in
Civil law concept of place of wrong: place where the tortious issue in question applying their law then the apparent conflict becomes a true
conduct was committed. This is premised on the principle conflict.
that the legality or illegality of a person‘s act should be The significant-relationship approach does not call for a
determined by the law of the state where he is at the time he mechanical counting of factual contacts where strength is
does such act. drawn in numbers; instead the court localizes the state of the
most significant relation and assesses the event or transaction Problem with Interest Analysis approach: are the policies of
The traditional view (whether the situs of the tort is the place in the light of the relevant policy considerations of the the law always discernible? Sometimes we merely guess the
of conduct or injury) is that an actor liable by the lex loci interested states and these underlying policies. policies of the state (because unarticulated in the law).
delicti is liable everywhere. Damages arising from torts ________________
committed in one state are actionable in another state.
Saudi Arabian Airlines vs. CA
Alabama Railroad vs. Carrol: the negligent infliction of an (1998) 3. Cavers‘ Principle of Preference
injury in one state creates a right of action there, which may FACTS: Morada was a flight stewardess of Saudi Airlines.
be enforced in any other state or country the comity of She was involved in an attempted rape case, which led to her This principle deals with rules that sanction some kinds of
which admits of it. conviction of violation of Islamic laws in Saudi. The Prince conduct engaged in by a defendant in one state and extends
of Makkah ruled that she was wrongfully convicted. the benefit of this higher standard of conduct and financial
However, she was terminated from her employment by protection to the plaintiff even if the state of injury does not
Loucks vs. Standard Oil Co. Saudia. create analogous liabilities.
(1913)
FACTS: Loucks, a NY resident, was run down and killed by HELD: The RTC of Manila has JD to try the case, applying Pangalangan: Since both states consider that a tort has been
Standard Oil employees in an accident while engaged in its the ―state of most significant relationship rule.‖ The committed, the law of the state which places a higher
business. Under Massachusetts law, the corporation is liable following contacts should be considered in using this rule: standard of conduct should apply. This is true even if this is
for the death of a person where the death was caused by the place where the injury occurred, place where the conduct the place of tortious conduct and not the place of injury.
negligence of the corporation‘s employees while engaged in causing injury occurred, domicile/residence/nationality/place
its business. However, under NY law, the corporation is of business of the corporation, and place where the
liable for such death where the death occurred in NY. The relationship between the parties is centered. Schmidt vs. Driscoll Hotel
action to recover damages was filed in NY. (1957)
In CAB, the Philippines had the most significant contacts. FACTS: Schmidt sued Driscoll Hotel for illegally selling
HELD: Massachusetts law may be applied. A tort The overall injury occurred in the Philippines, Morada is a liquor to Sorensen, who was the driver of a vehicle which
committed in one state creates a right of action that may be resident and a Filipina national, Saudia is a foreign turned over in Wisconsin. Schmidt was a passenger of that
sued upon in another unless public policy forbids. A foreign corporation engaged in business here, and the relationship vehicle and sustained injuries as a result of the accident. The
statute is not law in the state, but it gives rise to an obligation, of the parties is centered here. suit was filed in Minnesota, where the illegal sale was
which, if transitory, follows the person and may be enforced conducted.
wherever the person may be found. 2. Interest Analysis
HELD: Minnesota court has jurisdiction, even if the injury
This approach considers the relevant concerns the state may which followed the illegal sale occurred outside Minnesota.
have in the case and its interest in having its law applied on The Restatement should not be applied where the plaintiff
that issue. would have no remedy against the offending liquor dealer.
Under the principles of equity and justice, the Minnesota law
The court should first determine whether there is a true or granting him a remedy should be applied, considering that
false conflict. all the parties are residents of Minnesota, Driscoll Hotel was
44
licensed under Minnesota law, the violation of Minnesota not be able to pursue legal proceedings against the Malaysian
law occurred there, and the wrongful conduct was completed The defendant in a transnational tort is often sued in a company which operates and services the helicopter.
by Sorensen in Minnesota. foreign court against his will; his consent to be sued is not
necessary for the acquisition of jurisdiction by the court. Bier vs. Mines de Potasse: A Dutch market gardener filed an
Schmidt illustrates the imposition of liability under a Hence, questions as to the legitimacy of the JD and validity action for damages in a Dutch court against a French mining
substantive rule of tort law that has a strong underlying of the decision may arise. company. The Dutch court held that it had no JD, but the
admonitory policy. French court held that the plaintiff could elect where to sue
(place of damage or place of injurious conduct).
ii. Products liability of the foreign
American Contributions to Conflicts Tort Law manufacturer Sovereignty as Basis of Jurisdiction

The determination of whether the law where the tort was Conflicts torts cases arise due to significant differences in the The sovereignty model has been accepted both to:
committed or the law of the domicile of the parties is the laws of states on the basis and extent of liability for a) justify any exercise of jurisdiction over a defendant
controlling law is considered one of the major contributions defectively manufactured products. present within the territory, however short (―tag
of American jurisprudence to international conflicts thought. jurisdiction‖)

Law of the tort: deemed as the proper law in questions Asahi Metal Industry vs. Superior Court of California b) deny enforcement of a foreign court judgment
involving regulation of conduct. (1987) over a defendant who was not present within that
Law of the domicile of the parties: governs in matters that FACTS: Asahi Metal manufactures tire valve assemblies in court‘s jurisdiction
relate to loss-distribution or financial protection. Japan and exports them, including to a Taiwanese company
which, in turn, incorporates them into finished tires sold in
the US. The driver of a motorcycle, who had an accident Worldwide Volkswagen Corp. vs. Woodson
In modern approaches, there is a distinction between true or resulting in injuries to him and death to his passenger, sued (1980)
false conflict. the Taiwanese company. The Taiwanese company filed a FACTS: The spouses Robinson purchased a car from
cross-complaint against Asahi. Seaway Volkswagen in New York. They met an accident in
 True conflict: both states have an interest in having Oklahoma and pinned the blame on the defective design of
their law applied HELD: The California court has no JD over Asahi Metal. the car. They brought a suit against the retailer and
 ―maybe true‖ conflict The constitutional touchstone/test of due process is whether distributor in Oklahoma.
 false conflict: no choice necessary – the court the defendant purposefully established ―minimum contacts‖
should apply the law of the only interested state in the forum state. And ―minimum contacts‖ must have a HELD: Oklahoma court has no JD. A state court may
_______________ basis in some act by which the defendant purposefully avails exercise personal JD over a nonresident defendant only so
itself of the privilege of conducting activities within the forum long as there exist ―minimum contacts‖ between the
state, thus invoking the benefits and protections of its laws. defendant and the forum state. The 2 functions of the
D. Foreign Tort Claims concept of minimum contacts is to protect the defendant
In the CAB, no purposeful availment of the California against the burdens of litigating in a distant or inconvenient
Tortious liability is transitory – the liability resulting from the market on the part of Asahi. It does not do business in forum, and to ensure that the states, through their courts, do
tort is deemed personal to the perpetrator of the wrong, California; has no office, agents, employees, or property in not reach out beyond the limits imposed on them by their
which follows him wherever he goes. Compensations may be Cal.; does not advertise or otherwise solicit business there; status as coequal sovereigns in a federal system.
exacted from him in any proper tribunal; the right to sue is and did not create, control, or employ the distribution
not confined to the place where the cause of action arises. system that brought its valves to California. In CAB, there us a total absence of those affiliating
circumstances that are a necessary predicate to any exercise
i. Conditions for the enforcement of tort of state-court JD (no activity whatsoever on Oklahoma; no
claims Societe Nationale Industrille Aerospatiale vs. Lee Kui Jak: sales closed nor services performed there; no availment of
An Aerospatiale helicopter crashed in Brunei, killing a the privileges and benefits of Oklahoma law; no solicitation
a) the foreign tort is based on a civil action and not passenger who was a Brunei resident. The administrator of of business there).
on a crime the estate brought the action in Texas, where Aerospatiale
does business. Held: Brunei (where the deceased lived and
b) the foreign tort is not contrary to the public policy the helicopter crashed) was the natural forum for the trial for
of the forum an action for damages against the manufacturer of the In Asahi, even if there were minimum contacts, it failed the
helicopter, and it would be oppressive for the plaintiffs to reasonableness test.
c) the judicial machinery of the forum is adequate to continue with the Texas proceedings as Aerospatiale would
satisfy the claim
45
Criticism of Asahi: ―additional acts‖ requirement is a in Trajano vs Marcos), would be a significant setback to the
reinvention of the stream of commerce law. The fear is that advancement of international law. 2) the act must not have been justifiable by the law of
the court might go back to pre-International Shoe standards the place where it was done
n JD (requirement of actual presence).
Guinto vs. Marcos
In Worldwide Volkswagen, the only requirements for the (1986) Time, Inc. vs. Reyes
exercise of JD were minimum contacts and the FACTS: Guinto and Suarez filed an action for damages (1971)
reasonableness test; Asahi did not follow this, and include an against Marcos in California under the Alien Tort Claims FACTS: Villegas and Enrile filed a complaint for damages
additional requirement (purposeful availment). Act. According to Guinto, Marcos‘ act of seizing their film against Time, Inc. upon an alleged libel arising from a
________________ ―100 Days in September‖ violated their freedom of speech. publication of Time Magazine. Plaintiffs filed their action in
CFI Rizal. But according to the applicable law, they may file
HELD: Test to determine when a violation of the law of the action only in the place of first publication or in the City
iii. The Alien Tort Act nations has occurred – there has been a violation by one or of Manila (since they are public officers).
more individuals of those standards, rules or customs a)
The Alien Tort Statute granted US district courts original JD affecting the relationship between states or between an HELD: The case should be dismissed for improper venue.
over any civil action by an alien for a tort committed in individual and a foreign state, and b) used by those states for The only alternative allowed to the public official is to
violation of the law of nations or a treaty of the US. their common good and/or dealings inter se. A violation of prosecute in the place where the offending article was
the First Amendment right of free speech does not rise to printed and first published; but in the CAB the alternative
the level of such universally recognized rights as to constitute was not open to plaintiffs since the offending publication was
Hilao vs. Estate of Ferdinand Marcos a violation of the law of nations. not printed in the Philippines.
(1996)
FACTS: A class suit was brought against Marcos by parties
seeking damages for human-rights abuses committed against The Alien Tort Statute justifies exercise of court JD over In Time, Inc., if the court had not characterized the issue as
them or their decedents. The Hawaii district court found for completely foreign tort cases because of the universal evil jurisdictional, and decided the case from a conflicts tort
Hilao and ordered a verdict of almost $2 billion in damages. exemplified by human rights violations. This is so even perspective, it could have taken cognizance of the case
The Estate in its appeal, argues that the Alien Tort Claims though there are no significant contacts between the courts following the most significant relations approach because of
Act does not apply to conduct that occurs abroad, and since and the parties and events nor substantial state interest in the the significant links between the forum and the parties.
the acts complained of all occurred in the Phils., the court case other than a general desire for compliance with
has no JD customary international law. That is why in order for the
Alien Tort Act to apply, there is a need to establish that the In ordinary foreign tort, the court acquiring JD must be
HELD: The court has JD. In a prior appeal it has been held tortious conduct violated an internationally protected human either the place of tortious conduct or place of injury. In
that subject-matter JD was not inappropriately exercised right. Alien tort Statute, US courts may acquire JD even if it is
even though the actions xxx occurred outside the US. neither the place of tortious conduct nor place of injury.

iv. Philippine Rule on Foreign Torts ―law of nations‖ (Filartiga): ―mutual‖ concern – nations
Filartiga vs. Pena-Irala consider the act to be detrimental to all nations; it is a
(1980) There is no specific statutory law governing the enforcement violation of a law of all countries.
FACTS: Plaintiffs brought an action in the US against Pena- of claims for damages arising form foreign torts. But on the
Irala for wrongfully causing the death of Dr. Filartiga‘s son in theory of vested rights the victim of a foreign tort may decide Guinto: violation of law of nations test—
Paraguay. to file the case in the Philippines. 1) the violation affects relationship between states, or
an individual and a foreign state
HELD: The US federal court has JD, on the basis of the It has been suggested that the English Rule may be followed, 2) used by the states for their common good and/or
Alien Tort Statute. This action is undeniably an action by an such that the tort committed abroad is actionable in the dealings inter se
alien, for a tort only, committed in violation of the law of country where it was committed and also under Philippine _______________
nations. A wrong is recognized as a violation of the law of law.
nations where the nations of the world have demonstrated
that the wrong is of mutual, and not merely several, concern. Two conditions for a case based on a foreign tort to be filed
in the Philippines (English Rule):

*The concept of accountability, if considered the core of the 1) the wrong must be of such a character that it
Alien Torts Act (as espoused by the US Justice Department would have been actionable if committed in the
Philippines
46
E. Distinguishing between Torts and Crimes HELD: Wylie and Williams are not immune from the suit.
They are sought to be held answerable for personal torts in HELD: Philippine courts have no jurisdiction over Fowler.
which the US is not involved; if found liable, they alone must Act 400 granting JD to RP courts for crimes and offenses
Tort Crime satisfy the judgment. The Bases Treaty provision on committed on the high seas, apply to ship or water craft
immunity could not possibly apply in this case, as it is registered or licensed in the Philippines only. In the CAB,
Transitory in character; Local in character; the presumed that the laws of the US do not allow the the Lawton was not registered in the Philippines; it was a US
hence liability is deemed perpetrator of the wrong commission of crimes in the name of official duty. The vessel.
personal to the tortfeasor can be sued only in the general rule is that public officials can be held personally
and make him amenable state wherein he commits accountable for acts claimed to have been performed in
to suit in whatever JD he the crime connection with official duties where they have acted ultra People vs. Wong Cheng
is found vires or where there is showing of bad faith. (1922)
FACTS: Wong was charged for having illegally smoked
An injury to an individual An injury to the state opium on board an English vessel Changsa while anchored
who may be situated in where it is committed This immunity for sovereign acts is impliedly waived when in Manila Bay.
any place the foreign state and its officials perform private, commercial
or proprietary acts. HELD: Under the English rule which is applicable here (it is
Liability is attached to the Promulgated to punish the prevailing theory in the US), to smoke opium within our
perpetrator to indemnify and reform the territorial limits, even though aboard a foreign merchant
the victim for injuries he perpetrators and deter In Rarang, although the publication was part of the duty of ship, is certainly a breach of the public order here
sustained them and others from Wylie and Williams, the goal of the publication of the established. It causes such drug to produce its pernicious
violating the law complaint would have been achieved without identifying effects within our territory. It seriously contravenes the
Rarang by name. purpose that our Legislature had in mind in enacting the
F. Lex loci delicti repressive statute, and is therefore triable in our courts.

Under the territorial principle, crimes committed within the Liang (Huefeng) vs. People
Philippines by all persons, whether Filipino citizens or (2000) US vs. Look Chaw
aliens, are prosecuted and penalized under Philippine law. FACTS: Liang, a Chinese working at the ADB, was charged (1910)
As a rule, criminal laws of a state are effective only upon by a fellow worker with grave oral defamation. The lower FACTS: Two sacks of opium were found to be in the
persons who actually commit the crime within the state‘s court dismissed the complaint on the ground that Liang is control of Look Chaw aboard the Erroll, an English
territory. covered by the immunity provision under the Agreement steamship. A complaint for possession and sale of opium
between ADB and the Phil. Government. was filed against him.
The lex loci delicti or the law of the place where the crime
was committed is the controlling law since it determines the HELD: Liang is not immune from suit. The immunity HELD: Philippine courts have jurisdiction. Although the
specific law by which the criminal is to be penalized, and under the Agreement is not absolute, and it only extends to mere possession of an article of prohibited use in the
designates the state that has the JD to punish him. acts done in official capacity. Slandering a person could not Philippines, aboard a foreign vessel in transit, in any local
possibly be covered by the immunity agreement because our port, does not as a general rule constitute a crime triable by
3 Exceptions to the Territorial rule: laws do not allow the commission of a crime, such as the courts of the Islands, such vessel being considered as an
defamation, in the name of official duty. extension of its own nationality, the same rule does not apply
1) First Exception: crimes committed by state when the article, the use of which is prohibited in the
officials, diplomatic representatives and officials of Islands, is landed from the vessel upon Philippine soil.
recognized international organizations (based on 2) Second Exception: crimes committed on board a
doctrine of state immunity) foreign vessel even if it is within the territorial 3) Third Exception: crimes which, although
waters of the coastal state committed by Philippine nationals abroad, are
punishable under Philippine law (ex. Art. 2 RPC)
Wylie vs. Rarang In the Philippines, our courts will not acquire JD over
(1992) offenders nor can Phil. laws apply as long as the effect of
FACTS: Wylie and Williams are officers of the US Navy such crime does not disturb our peace and order.
stationed in the Subic Naval base, and are in charge of the
publication ―Plan of the Day.‖ Rarang filed an action for
damages against them for libelous statements published in US vs. Fowler
the POD. FACTS: Fowler et al were accused of theft on board the US
vessel Lawton while it was traveling on the high seas.
47
the right to stockholders owning 3% of the capital stock of The power of a foreign corporation depends upon the laws
the company. Gray does not own the required shares. of the state recognizing it. It may impose conditions or
limitations subject to a few exceptions as decided by US
Fowler Cheng Look Chaw HELD: Gray is not entitled to the right to examine the courts, to wit:
books of Insular. Gray is bound by the NY law which only
FLAG US English English gives him the right to receive from the treasurer of the a) commerce clause – prohibits a state from
corporation a statement of affairs covering a particular imposing conditions on corporations engaged in
LOCATION High seas Within RP Within RP account of all its assets and liabilities. Neither can his rights interstate commercial activities and provides the
territorial territorial be granted under common law absent a showing that: basis of federal power to regulate interstate
waters waters a. he seeks information for an honest purpose or to commerce.
protect his interest as stockholder
b. he exercises right in good faith and for a specific and b) Since it is considered a ―person‖, once allowed to
CRIME theft Smoking Possession
opium and selling honest purpose not merely to satisfy curiosity or for enter a state and acquire property, it cannot be
speculative or vexatious purposes. discriminated against by domestic corps
of opium
Anglo American Theory on Corporations c) Unconstitutional conditions – forbids a state from
RESULT No JD Acquired Acquired
requiring the foreign corporation to give up its
JD JD
constitutional rights either as a prerequisite to
Bank of Augusta vs. Earle allowing it to do business or to avoid being
In RP, we follow the French Rule.
(1839) removed from that state
FACTS: Bank of A (incorporated in Georgia), thru M‘Gran
XVII. Choice of Law Affecting Corporations and Other
bought bills from Earle in Alabama. Bills were unpaid so A foreign corporation, although a person, is not a citizen
Juridical Entities
Bank sued Earle. TC ruled that the Georgian Bank could entitled to the privileges given by the state to its individual
not exercise power in Alabama thereby making the contracts citizens.
void.
A. Corporations
HELD: Bank can exercise its powers in Alabama and the If according to the personal laws of the corporation,
A corporation is an artificial being created by operation of
contracts are therefore valid. It is well-settled that by the law stockholders are given certain rights, such rights cannot be
law, having the right of succession and the powers, attributes
of the comity of nations, a corp. created by 1 sovereignty is diminished nor added upon by the law of the place where
and properties expressly authorized by law or incident to its
permitted to make contracts in another and sue in its courts the corporation does business. This is because such rights
existence.
and that the same law of comity prevails in several States of are already fixed by the corporation.
US including Alabama. Alabama courts have held that a ________________
Foreign corporation – formed under the laws of a state other
foreign corp may sue in its courts based on the comity of
than the Phils; such laws allowing Filipino citizens and
nations.
corporations to do business there. It shall have a right to do
business here only after obtaining a license and a certificate 2. Exceptions to the Rule of Incorporation
Four Basic (Important) Theories from the case: Test
of authority from the appropriate government agency.
1) a corporation, being a creature of law, has no legal a. Constitutional and Statutory
1. Personal Law of a Corporation
status beyond the bounds of the sovereignty within Restrictions
which it was created
The personal law of the corporation is the law of the state
where it is incorporated. If the law creating it does not A state may, by legislation, exclude a foreign corp altogether,
2) a corporation cannot exercise powers not granted subject to the constitutional limitations, or prescribe any
authorize it to enter into certain contracts, such contracts
by its corporate charter or by the laws of the state conditions it may see fit as a prerequisite to the corporation‘s
which can be made in other states shall be void despite the
of incorporation right to do business within its territory.
express permission given by the other state.
3) no state is under any obligation to adhere to the 1987 Phil Constitution:
doctrine of comity (every state has the power to
ME Gray vs. Insular Lumber Co.
refuse recognition) a. regulates exploration, development and utilization
(1939)
FACTS: Gray, a stockholder of Insular (incorporated in of natural resources such that only 60% Filipino-
4) a state is not obliged to grant to a foreign owned corps may be allowed to engage in these
NY) filed an action in CFI to compel Insular to allow him to
corporation the privileges and immunities activities
examine its books. Sec. 77 of NY Stock Corp Law only gives
common to its citizens
48
b. the nation‘s marine wealth and the exclusive time the insurable risk occurred. But C is entitled to a return 4. Jurisdiction Over Foreign Corporations
economic zone is reserved exclusively to Filipinos of the premiums paid.
c. Congress is empowered to reserve certain areas of The dictum that a corporation has force only in the
investments to 60 % Filipino owned corps or incorporating state and no existence outside that state has
provide for a higher percentage (e.g. mass media – Filipinas Compania case was decided that way because of the been abandoned. The prevailing rule is, with the consent of
100%) government interest involved. a state, a foreign corp. shall be recognized and will be
_______________ allowed to transact business in any state, which gives its
consent.
Pedro Palting vs. San Jose Petroleum Daimler Co. Continental Tire and Rubber Co.: HELD: An
(1966) English corporation with an English secretary but whose Requirements for License: Secs. 125-128, Corpo Code)
FACTS: Palting opposes the tie-up between San Jose shares of stock are controlled by German nationals was a. sworn application
Petroleum (a Panamanian corp.) and San Jose Oil (domestic considered an enemy corporation and prohibited from b. copy of articles of incorporation
corp.) as being violative of the Constitution and the trading in England. It ruled that the company itself was c. designation of an agent
Petroleum Act. SJP claimed that it is entitled to the Parity incapable of loyalty or enmity. These qualities are d. sworn certification of an official of the incorporating
Amendment which grants to US citizens the right to use & attributable only to human beings. The company therefore state that a similar right is given to Filipinos in that state
exploit natural resources in the Phils because its had the predominant character of its shareholders being and that the foreign corp. is in good standing
stockholders are US citizens. Germans. e. statement under oath by the official of the corp.
attesting that the corp is solvent and in sound financial
HELD: SJP is not covered by the Parity Agreement. It is not condition
owned or controlled directly by US citizens. It is owned by 3. Domicile or Residence of Foreign
another Panamanian corp., Oil Investments. Oil Corporations
Investments on the other hand is owned by 2 Venezuelan Foreign Corporations doing Business are Bound by
corps. Even assuming that the stocks of the 2 Venezuelan Art. 51, CC Philippine Law
corps are owned by US citizens, to hold that the set-up in When the law creating or recognizing them, or any other
CAB falls within the Parity Amendment is to unduly stretch provision, does not fix the domicile of juridical persons, it is Art. 129, Corp Code
and strain the language and intent of the law. There would understood to be All foreign corporations lawfully doing business in the
be practical impossibility to determine at any given time the a. the place where legal representation is established Philippines shall be bound by all laws, rules and regulations
citizenship of the controlling stock. b. where they exercise their principal functions applicable to domestic corporations.

b. Control Test During the War A foreign corp. granted license to do business here acquires Exceptions:
a domicile in the Phils. 1. laws on creation, formation, organization or dissolution
During wars, courts may pierce the corporate identity and of corporations
look into the nationality of stockholders to determine the 2. laws which fix the relations, liabilities, responsibilities or
citizenship of the corp. State Investment House vs. Citibank duties of stockholders, members or officers of the corp
(1991) to each other
FACTS: CMI obtained loans from Citibank. CMI defaulted.
Filipinas Compania de Seguros vs. Christern, Huenfeld, Co., Citibank filed petition for involuntary insolvency against Rule 14, Sec. 14 ROC
Inc. CMI with CFI, Rizal. State Investment, a creditor of CMI, Service upon foreign corporations doing business in the
(1951) opposed claiming that Citibank had no jurisdiction because Phils. may be made on the:
FACTS: Christern (German Co.) filed a claim against the banks are not resident creditors of CMI.
Filipinas (US Co.) for recovery on fire insurance policies 1. resident agent
issued by the latter. F refused to pay claiming that the HELD: The Phil branches of the bank are residents of the 2. in the absence thereof, to the government official
policies ceased to be in effect on the date the US declared Phils being resident foreign corporations as defined in the designated by law or any of its officers or agents within
was against Germany. Dir. Of Bureau of Financing directed Tax Code and other Banking Laws. What effectively makes the Phils
F to pay C. a foreign corp a resident corp in the Phils is its actually being 3. on any officer or agent of the corp in the Phils
in the Phils and licitly doing business here (locality of
HELD: The policy ceased to be valid and binding because existence) The grant of license merely gives legitimacy to its *a fourth method is established by case law: service thru
of the fact that majority of the stockholders of C are doing business here but it does not make the corp a resident. diplomatic channels
Germans and it became an enemy corporation when war Also, the failure of the bank to aver categorically that they
was declared. Under Phil Insurance Code, anyone except a are residents are not fatal to the cause of action where it
public enemy may be insured. C is a public enemy at the alleged that it is a foreign bank licensed to do business here.

49
5. Right of Foreign Corporation to bring in business. It does not constitute ―doing business‖ under 1. All that Leviton Manufacturing alleged is that it is a
Suit the law. foreign corporation. It should have, in addition, alleged
the ff pursuant to Sec. 21-a:
Acquisition of a license by a foreign corporation is an a. it registered its trademark with the Phil. Patent Office
essential prerequisite for filing of suit before our courts. Eastboard Navigation vs. Ysmael & Co. or that it is an assignee of the trademark, and
(1957) b. that the country of which it is a citizen or domiciliary
Art. 133, Corp Code states that these corporations may be FACTS: Eastboard was able to secure a favorable decision grants to Filipino corps the same reciprocal treatment,
sued or proceeded against before Phil courts or from NY arbiters against J.Y. & Co. It brought an action for either in a treaty, convention or law.
administrative tribunals on any valid cause of action enforcement of a money claim against JY & Co. in the Phils. 2. It also violates Sec. 4, Rule 8 of the Rules of Court,
recognized under Phil law. JY opposed alleging that E had no capacity to sue. which states that:
Facts showing the capacity of a party to sue or be sued
HELD: E has capacity to sue. The license is not necessary or the authority of a party to sue or be sued in a
Home Insurance Co. vs. Eastern Shipping Lines because it is not engaged in business in the Phils. The 2 representative capacity or the legal existence of an
(1983) isolated transactions do not constitute engaging in business organized association of persons that is made a party,
FACTS: Home Insurance was subrogated to the rights of within the purview of the Corpo Law. must be averred.
shippers against eastern Shipping for damages on cargo.
Eastern refused to pay. HI filed action to recover sum of
money. TC dismissed because HI failed to prove capacity to b. Action to Protect Trademark, c. Agreements Fully Transacted
sue. Trade Name, Goodwill, Patent or Outside the Philippines
for Unfair Competition
HELD: HI has capacity to sue because at the time the A foreign corporation is allowed to maintain an action on a
complaints were filed, it already had a license to conduct Even without a license, a foreign corporation may file transaction wholly celebrated and consummated abroad so
insurance business in the Phils. Insurance contracts are not complaint for unfair competition since it is a suit enjoining as not to impair the policy of stabilizing commercial
null and void for lack of license at the time it was entered the unfair trader from pursuing the unlawful competition & transactions.
into. The Corp. Code is silent on the status of the said for the aggrieved party to recover damages. This is based on
contracts. Also, the object of the law in requiring registration equity considerations.
is to subject the foreign corp. to the JD of our courts. Universal Shipping Lines vs IAC
HELD: The private respondent may sue in the Phils upon
Converse Rubber vs. Jacinto Rubber: the marine insurance policies to cover international-bound
Atlantic Mutual Insurance vs. Cebu Stevedoring FACTS: Converse owns the trademark of ―Converse Chuck cargoes shipped by the carrier. It is not the lack of the
(1966) Taylor All Star‖. Jacinto manufactures shoes of identical license but doing business without such license which bars a
FACTS: Cebu Stevedoring carried copra for Procter & appearance. Hence, this suit. foreign corporation from access to our courts.
Gamble. Copra were insured with AMI. Bec. of damages,
AMI sued Cebu Stevedoring. CS filed a MTD bec. AMI HELD: Sec 69 of the Corp Law does not disqualify
had no capacity to sue. TC ruled that it must allege that it Converse from filing the suit although it is unlicensed to do Hang Lung Bank vs. Saulog
has a license to be able to sue. business and is not doing business in the Phils. This is in (1991)
compliance with the Convention of Paris for the Protection FACTS: Hang Lung Bank, not doing business in the Phils,
HELD: Such allegation is unnecessary. However, AMI‘s of Industrial Property from which the Phils adheres to and entered into continuing guarantee agreements with Cordova
mere allegation that it is a foreign corp is not sufficient. It which US is a signatory. Chin San in HongKong for the debts of Wolder Enterprises.
must state WON it is doing business in the Phils bec Wolder defaulted so Hang Lung sued Wolder and Chin
different rules attach to the same. If it is engaged in business, San. No payment was made so it sued Chin San in RTC,
it must be licensed to be able to sue. If not so engaged, the Makati for enforcement of its money claim. Chin San
license is not required and it may sue esp. if it is a Leviton Industries vs. Salvador moved to dismiss for incapacity to sue.
single/isolated transaction. (1982)
FACTS: Leviton Manufacturing (US) sued Leviton HELD: A foreign bank not doing business in the Phils, such
Industries (Phil) for unfair competition bec. the latter uses as Hang Lung, may sue a resident for contracts entered and
6. Exceptions to License Requirement the trademark Leviton. Defendant filed MTD for failure to consummated outside the Phils.
allege capacity to sue. Reasons for rule: if not adopted,
a. Isolated Transactions a. it will hamper the growth of business between
HELD: Plaintiff failed to allege capacity to sue. Filipinos and foreigners
This has been defined as one which is occasional, incidental b. it will be used as protection by unscrupulous
and casual, not of a character to indicate a purpose to engage Filipinos who have businesses abroad
50
- the progressive prosecution of commercial gain or of or casual but is of such nature as to indicate a purpose to do
the purpose/object of the business organization other business in the State.
d. Petition Filed is Merely a Corollary
Defense in a Suit against it What is not doing business:
1. mere investment as a shareholder CIR vs. JAL
Time Inc. vs. Reyes 2. exercising of rights as investor (1991)
HELD: The court allowed a foreign corp is not maintaining 3. having a nominee director or officer to represent FACTS: JAL was assessed deficiency income tax by CIR for
a suit in our courts but is merely defending itself when it files interests the sales of its ticketing agent (PAL) in the Phils. JAL
a complaint for the sole purpose of preventing the lower 4. appointing a representative or distributor in the Phils opposed and claimed that as a non-resident foreign corp. it
court from exercising jurisdiction over the case. As such, it is which transacts business in its own name and for its can only be taxed on income from Phil sources.
not required to allege its capacity to sue. own accounts
HELD: JAL is a resident foreign corporation under the Tax
Doing business serves as the basis for jurisdiction over corps Code. For a foreign corporation to be regarded as doing
Phil. Columbia Enterprises vs. Lantin on the theory that they are present in the state or have business, there must be a continuity of conduct and
(1971) consented to suit by making that state a major place of intention to establish a continuous business (i.e.
FACTS: Katoh & Co. filed a complaint against Phil business. appointment of a local agent) and not a temporary one. JAL
Columbian. Phil Columbian challenged its capacity to sue. constituted PAL as a local agent to sell tickets which is the
TC deferred the determination of this issue until trial on the lifeblood of airline tickets, the generation of sales being its
merits. PC opposed claiming that if it files a counterclaim, it Avon Insurance vs. CA paramount objective.
will be waiving its right to assail the capacity to sue of Katoh. (1997)
HELD: A reinsurance company is not doing business in a
HELD: A counterclaim is a complaint against the plaintiff. It certain state merely because the property or lives which are Merrill Lynch Futures vs CA
would not be the foreign corp who will be maintaining a suit. insured by the original insurer company are located in that (1992)
Therefore, Sec. 69 of the Corp Law will not apply. state since the reinsurance contract is usually a separate and FACTS: Lara spouses entered into a Futures Customer
distinct arrangement from the original contract of insurance, Agreement with Merrill Lynch Futures Inc. They become
whose contracted risk is insured in the reinsurance indebted to it after a loss in the business. Laras refused to
7. Definition and Scope of agreement. pay and claimed that the transactions were void because
Transacting Business MLFI had no license to operate as a commodity or financial
The term ―doing business in the Phils‖ implies a continuity futures broker.
A foreign corporation may do business, state consent being of commercial dealings and arrangements and contemplates,
presumed, except: to that extent, the performance of acts or works or the HELD: MLFI had the capacity to sue and Laras are
1. where it is prohibited by express statutory authority or exercise of functions normally incident to and in the estopped from denying the same after having done business
constitutional enactment progressive prosecution of the purpose and object of its with it over many years. The purpose of applying the
2. where it is seeking to perform acts which are contrary to organization. doctrine of estoppel is to prevent persons from taking undue
public policy advantage of a corp‘s non-compliance with the statutes where
3. where it is seeking to exercise extraordinary and special such person received benefits under their contract.
franchises Wang Laboratories vs. Mendoza
4. where it is seeking to perform acts which are not (1987)
authorized by the law of the state of its incorporation FACTS: Wang Lab (US corp) sells its products in the Phils Granger vs. Microwave Systems
thru its exclusive distributor, Exxbite. ACCRS sued WL for (1990)
―Doing Business‖ (Foreign Investments Act) breach of contract for failure to develop the software FACTS: Granger (US) sued MSI (Phil) for recovery of a
- soliciting orders, program contracted. WL filed MTD on the basis of lack of sum of money. MSI did not pay and claimed that G had no
- service contracts, jurisdiction over its person bec. the service was invalid it capacity to sue bec. it was unlicensed.
- opening offices whether called ―liaison‖ offices, being a foreign corp not engaged in business in the Phils.
- appointing representatives if the latter stays for at least HELD: G had no capacity to sue because of its being an
180 days, HELD: WL is ―doing business‖ in the Phils. It has installed unlicensed foreign corp doing business in the Phils. Neither
- participating in the management, supervision or control 26 products in the Phils and has registered its tradename does it fall under the established exceptions. Granger had
of any domestic business with PPO. It allowed E to use such trademark and to the burden of showing that the finding fell under an
- and any other act that imply a continuity of commercial advertise the same. exception. The purpose of requiring license is to enable Phil
dealings courts to exercise jurisdiction over them. If the foreign corp
- and contemplate in the performance of acts or works Thus, it cannot be said that the case involved an isolated or operates here without submitting to our laws by securing a
single transaction. The transaction is not merely incidental
51
license, they may not be allowed to invoke our laws for their 2. whether the activities of the subsidiary in a state will give
protection. that state jurisdiction over he parent corporation  Domestic Corp.:
a) Can sue
Restatement 2 :nd
b) Can be sued
B. Special Corporations Jurisdiction over the parent will exist if the parent controls
and dominates the subsidiary. In determining whether the  Foreign Corps.
1. Religious Societies and the Corporation separate corporate existence of the subsidiary has been 1) Doing Business
Sole adequately preserved, the courts will consider whether the a. With license – can sue and be sued
A religious society, if controlled by aliens, is not permitted to subsidiary has its own records, assets, advertising, employees, b. Without license – cannot sue, can be
acquire lands. payroll and accounting and whether its directors and sued
headquarters are different form those of the parent.
A corporation sole is an incorporated office composed of 2) Not Doing Business (isolated transaction) – can
only one person as in the cases of the chief archbishop, In the converse situation, jurisdiction over the parent may sue and be sued
bishop, priest, minister or an elder of a religious sect which give jurisdiction over the subsidiary if the separate corporate ________________
may form a corporation sole for the purpose of managing its existence of each has not been adequately maintained or if
affairs, property and temporalities. the parent has acted within the state as the subsidiary‘s agent.
PART FIVE: FOREIGN JUDGMENTS
Roman Catholic Administrator vs. LRC C. Partnerships XVIII: Recognition and Enforcement of Foreign Judgments
HELD: The 60% Filipino capital requirement to own lands
was not intended to apply to corporations sole because it is Partnership is formed by 2 or more persons who bind A. Distinction between Recognition and
composed of one person usually a head or bishop of a themselves to contribute money, property or industry to a Enforcement
diocese but he is only the administrator and not the owner common fund with the intention of dividing the profits
of the temporalities. Such are administered for and in behalf among themselves. ‗Foreign judgments‘- all decisions rendered outside the
of the faithful who are Filipino citizens. forum and encompasses judgments, decrees & orders of
Phil internal law provides that if the domicile of the courts of foreign countries as well as of sister states in a
partnership is not identified by the law creating it, it is federal system of gov‘t.
2. Transnational Corporations deemed domiciled in the place where it has its legal
representation or where it exercises its principal functions. Conceptual & Procedural Differences between Recognition
Transnational corporations are clusters of several & Enforcement:
corporations, each with a separate entity, existing and spread What matters are governed by the personal law of the Rules on recognition & enforcement are analogous but there
out in several countries, but controlled by the headquarters partnership? are differences in conceptual & procedural aspects.
in a developed state where it was originally organized. 1. nature, attributes and capacity to contract of the
partnership ENFORCEMENT: This happens when a successful plaintiff
But the transnational corporations are established under and 2. whether or not a partnership has been constituted (esp. fails to enforce judgment in the forum court so he seeks to
governed by each host country‘s national laws. the conditions and formalities required) carry out the execution of the judgment in another state.
3. determination of WON it requires a separate juridical
However, all locally incorporated branches are joined personality (Common law does not consider a This requires the filing of an action and a new judgment
together by the common control and management of higher partnership a legal person but civil law endows before the properties of the defendant can be attached.
officials in the home state. partnerships with a separate legal personality)
4. grounds for dissolution and termination of partnerships RECOGNITION: This may arise when a successful
As to liability, the single unit comprising the cluster is held 5. liability of partners esp. if limited partnership is allowed defendant wins and asserts that decision to preclude the
liable according to the laws of the host country but the plaintiff from filing a suit on the same claim in another
transnational corporation, in its entirety, is not answerable to What are governed or subject to the law of the place of forum. It is basically a passive act because it does not require
any legal order. business? the filing of an action in another forum. EX. Decree of
divorce.
Derivative Jurisdiction over Foreign Corporations (parent- 1. entitlements and limitations, in general
subsidiary) 2. creation of establishments in the state
2 Important Issues 3. mercantile operations
1. whether ownership by the parent over the subsidiary‘s 4. jurisdiction of nations
stock is enough to give jurisdiction over the subsidiary

52
B. Bases of Recognition and Enforcement of Foreign
Judgments RES JUDICATA- seeks to end litigation by disallowing suit
C. Policies Underlying Recognition and Enforcement on the same claim
1) Comity
1. Res judicata COLLATERAL ESTOPPEL- concerned with preclusion
According to Cheshire, the theory on comity mean that in by barring relitigation of an issue already litigated on in a
order to maintain reciprocal treatment from the courts of Many courts recognize & enforce foreign judgments on prior proceeding
other countries, we are compelled to take foreign judgments ground of res judicata, under which principle:
as they stand & to give them Full faith & Credit. a. those who contested an issue shall be bound D. Requisites for Recognition or Enforcement
by the result &
Comity calls for reciprocity between the concerned b. matters once tried & decided w/ finality in 1) The foreign judgment was rendered by a judicial
jurisdictions. Thus, forum A will withhold recognition & one jurisdiction shall be considered as settled or a quasi-judicial tribunal which had jurisdiction
enforcement of prior judgment if it comes from Forum B, b/w the parties over the parties & the case in the proper judicial
w/c does not give same concession to forum A judgment. proceeding.
Thus, parties are prevented from litigating issues already
2) ―Obligation of foreign judgments‖ determined by a local judgment. 2) The judgment must be valid under the laws of the
court that rendered it
This doctrine of obligation is derived from the rigid & In Anglo-American jurisprudence, foreign judgments are not
unyielding vested rights theory. open to reexamination on merits when placed in issue 3) The judgment must be final & executory to
Judgment of a foreign court of competent jurisdiction is before local courts subject to a few exceptions. constitute res judicata in another action
considered as imposing a duty or obligation on the losing
litigant. The principle seeks to accomplish the policy of giving 4) The state where the foreign judgment was
i.e.: finality to litigation. Public policy dictates diminishing the obtained allows recognition or enforcement of
Forum 1- adjudicates debt owing to plaintiff judicial energy invested in deciding suits, encouraging Philippine judgment
Forum 2- treats F1 judgment as evidence of debt confidence in court decrees and securing the legitimate
w/c may be enforced in F2 by an action of debt expectations of successful plaintiff or defendant that he will 5) The judgment must be for a fixed sum of money
no longer be harassed into protecting his interests.
6) The foreign judgment must not be contrary to the
Goddard vs. Godard Rule 39 Sec 40: public policy or the good morals of the country
(1870) A foreign judgment of a tribunal of a foreign country, having where it is to be enforced
FACTS: Godard (French) obtained a favorable ruling by a jurisdiction to pronounce judgment renders it conclusive
French court arising on a charter party obligation against upon the title to the thing while a judgment against a person 7) The judgment must not have been obtained by
Gray (English). The French court interpreted the clause is presumptive evidence of a right as between the parties & fraud, collusion, mistake of fact or mistake
―penalty for non-performance of this agreement, estimated their successors in interest
amount of freight‖ as a clause that sets the limits to liability
to one voyage between the parties to the charter party 2. Merger 1. The foreign judgment was rendered by a judicial or a
contrary to the English interpretation. When this French quasi-judicial tribunal having jurisdiction over the parties &
judgment was sought to be enforced in England, Gray It considers the plaintiff‘s cause of action as merged in the the case in the proper case
interposed in defense that the erroneous French judgement judgment. Thus, he may not relitigate that exact same claim.
is a bar to the action for enforcement in England. A court validly asserts jurisdiction over actions in personam
3. Bar based on consent of parties or relation of the parties or
HELD: it is not a bar. In England, foreign judgement are events to the forum, thus satisfying minimum standards of
enforced based on the principle that where a court of This is where a successful defendant interposes the fair play & substantial justice.
competent jurisdiction has adjudicated a sum of money to be judgment in his favor to avert a second action by plaintiff on
due from one person to another, a legal obligation arises to the same claim. By direct estoppel, the relitigation of all In in rem proceeding, jurisdiction is based on the power of
pay the sum, on which an action of debt to enforce the matters decided are precluded the state over the property found within the territory
judgement may be maintained and not merely out of
politeness and courtesy to other tribunals of other countries. In addition, DOCTRINE OF COLLATERAL ESTOPPEL
Anything that negates the existence of a legal obligation or renders conclusive all ―essential issues of fact actually Northwest Orient Airlines vs. CA and C.F. Sharp
excuses the defendant from performance is a good defense litigated in the suit decided on by the foreign court‖. (1995)
to the action (ex. Evidence that court exceeded its FACTS: Under contract of agency, NOA authorized Sharp
jurisdiction or the judgement was obtained thru fraud) Distinction between Res Judicata & Collateral Estoppel to sell airline tickets. Sharp failed to remit the proceeds of
53
the ticket sales to NOA. The court in Tokyo failed to serve The polestar is whether a reasonable method for notification
the writ of summons against the Sharp branches in Tokyo. HELD: Hanoi court has no jurisdiction over Tait. is employed & reasonable opportunity to be heard is given
NOA had these writs served in the Manila main office of Jurisdiction in personam, over non-residents, in money suits, to the person concerned.‖
Sharp. Despite the notice, Sharp did not appear at the must be based upon personal service within the state that
hearing. NOA obtained a judgment in its favor. NOA sought renders the judgment. At the time of the complaint, Tait was Borthwick vs. Castro
enforce the judgment in the Philippines. Sharp opposed not in Hanoi nor were his agents or representatives. Also, (1987)
claiming that the service of process was void so the Tokyo the French law on service of summons was not applied. FACTS: Borthwick (US) owned real properties in Hawaii.
Court did not acquire jurisdiction over it. Instead of serving a copy to the Atty Gen of the Republic He issued promissory notes to Scallon but failed to pay the
who shall visae the original, the summons were served in same. Scallon sued him in Hawaii. B was issued summons
HELD: Service of summons by Tokyo court was valid. A Manila to J.M. Shotwell, a representative of Churchill & Tait while in California which process was valid under Hawaiian
foreign judgment is presumed to be valid and binding in the Inc, which is an entity entirely different from Tait. law. For failure to enforce the judgement, S filed action in
country where it comes, until the contrary is shown. The Phils. B‘s defense is that the Hawaii court has no jurisdiction
regularity of the proceedings and the giving of due notice is over the cause of action and over his person.
also presumed. The party attacking has the burden of Ramirez vs. Gmur
overcoming this presumption. In CAB, SHARP alleged that (1918) HELD: Foreign judgements are presumptive evidence of the
the extraterritorial service of summons is void. However, FACTS: The will of Bischoff contained a statement to the rights between parties and rejection may be justified, among
Sharp failed to prove the applicable Japanese procedural law effect that he had no living forced heirs. Leona Castro, others, by want of jurisdiction of the issuing authority, among
to base its claim since in matters of procedure, lex fori Bischoff‘s recognized natural daughter, had 2 sets of others. But in CAB, such rejection was not justified. What
applies. Also, Sec. 14 of ROC applies, it allows service to be children from 2 marriages, who claim to be heirs of Borthwick seeks in this appeal is a 3 chance to contest the
rd

made to: Bischoff. jurisdiction of the foreign court. In order to do that, he must
a. resident agent designated (if it has one,  first married to Von Kaufmann and had 3 children but show that the declaration of default was incorrect. But
the designation is exclusive) Von Kaufmann obtained divorce on France Borthwick did not do this. Borthwick was given an
b. if none, on the government official  Castro was remarried to Dr. Mory and they had 2 opportunity to file his answer in the Hawaii court, he was
designated by law ( Insurance children also given a chance in the CFI, Makati, but he failed to do
Commissioner – foreign insurance co.; the same.
Superintendent of Banks – foreign HELD: as to the Mory children – NO, the second marriage
banking corps. & SEC – other foreign is void. The right to inherit pertains only to legitimate,
corps licensed to do business in Phils) legitimated and acknowledged natural children. The French 2. The judgment must be valid under the laws of the court
The government official shall transmit decree of divorce is not valid in the Philippines. French that rendered it
the summons by mail to the principal court had no jurisdiction to entertain actions for dissolution
office. of marriages of performed in the Phils over persons In Pemberto vs. Hughes although there was error in
c. any of its officers/agents within the Phils. domiciled here. The RULE is that when a court, where procedure, since the Florida court was competent & no
neither of the spouses are domiciled, and to which one or substantial injustice was committed, the English court did
Sharp did not designate an agent so service on govt official both, may resort merely to obtain decree of divorce, issues not consider the error as to significantly alter an otherwise
or any of its officers in Japan is allowed. The Court finds that such decree, the divorce is not entitled to recognition valid decree.
the service made by Tokyo court sufficient to fall under elsewhere.
service to the proper govt official. 3. The judgment must be final & executory to constitute res
As long as the foreign court acquired jurisdiction, its judicata in another action
(Tokyo DC- SC Japan – Ministry of Foreign Affairs of Japan decisions will not be disturbed whether it was reached
– Japanese Embassy – DFA, Phils – RTC – sheriff delivered through an adversary proceeding or by default. If judgment is interlocutory or provisional in character w/c
summons to principal office) ‗contemplates that a fuller investigation leading to final
decision may later be held, it creates no obligation on the
Somportex vs. Philadelphia Chewing Gum Corp.. Court forum court to recognize it.
Boudard vs. Tait rejected Philadelphia‘s contention that a default judgment by
(1939) the English courts should not be extended hospitality by Nouvion vs. Freeman
FACTS: Boudard‘s husband, employee of Tait, was killed American courts. (1889)
by co-employees. Boudard obtained a favorable judgment FACTS: Nouvion filed an action for administration of the
against Tait who was declared to be in default in CFI of ―In the absence of fraud or collusion, a default judgment is estate of Henderson. In order to show that he was
Hanoi. She filed action for execution of Hanoi judgment in as conclusive as adjudication between the parties as when Henderson‘s creditor, Nouvion alleged that he obtained a
CFI Manila. Court dismissed for lack of jurisdiction of rendered after answer & complete contest in open court. foreign judgment establishing Henderson‘s indebtedness to
Hanoi court over Tait who was not a resident of French him.
Indo-China.
54
HELD: The Spanish judgment cannot be sustained because  The court in Hilton discriminated against the litigants the plaintiff could not enforce his claim because the
it was not yet final and conclusive. Where a court of on account of the policies of their governments which Jamaican court decided that from the sum due him should
competent jurisdiction has adjudicated a certain sum as due they were in no position to shape and alter. first be subtracted the costs incurred by the defendant which
from one to another, a legal obligation arises, on which an  It can be argued that the task of formulating policies was to be taxed. Hence, the amount decreed was not fixed.
action of debt to enforce judgment may be maintained. But through reciprocity is a power misplaced in the
to come within the terms of law properly laid down, judiciary and should be appropriately wielded by the 6. The foreign judgment must not be contrary to the public
judgment must result from an adjudication of a court of other branches of government. policy or the good morals of the country where it is to be
competent jurisdiction, such judgement being final and enforced
conclusive. It is not sufficient that the judgement puts an end Trautman and Von Mehren point out the difficulties with
to and finally settles controversy. It must e shown that in the the reciprocity requirement.
court by which it was pronounced it conclusively and finally a. its normal tendency is to lower rather Querubin vs. Querubin
settles forever the existence of debt of which it is sought to than raise the standards of practice (1950)
be made conclusive. b. the private litigants burdened may not HELD: It goes against the law, public policy, and good
be closely attached to the legal order customs that a mother who violated her marital vows should
sought to be changed have custody (referring to the fact that Margaret was having
Querubin vs. Querubin c. the administration of reciprocity clauses an illicit affair with another man).
(1950) can be complicated esp. where case law
FACTS: Following their divorce because of Margaret‘s systems are affected since finding the 7. The judgment must not have been obtained by fraud,
infidelity, rendered in New Mexico, their daughter exact foreign law that grants reciprocity collusion, mistake of fact or mistake of law
Querubina was kept in a neutral home. Silvestre then is still nebulous. It is unclear whether
obtained an interlocutory decree granting him custody. reciprocity is proved by general Whether or not there is fraud is decided by the court where
Margaret had the decree modified since the she was recognition of such or requires a specific enforcement of judgment is sought on the basis of its own
remarried and had a stable home for Querubina. When recognition for a case identical or internal law. A problem may arise when the internal law is
Silvestre fled to the Philippines with Querubina, Margaret analogous to the one before the court. not in agreement with the notions of equity of the foreign
filed for habeas corpus. She asserts that the interlocutory state.
order should be complied with pursuant to Article 48 Rule
39. Cowans, et al. vs. Teconderoga Pulp and Paper Co. Rule 39, Sec. 50
(1927) Effect of Foreign Judgment. The effect of a judgment of a
HELD: Her contention is erroneous. A foreign FACTS: Cowans obtained a Quebec judgment in their favor court of a foreign country, having jurisdiction to pronounce
interlocutory order in favor of Margaret did not establish a for a sum of money. TPP asserts in defense that this the judgment is as follows:
vested right with respect to rightful custody over Queribina. judgment is not conclusive upon, but merely a prima facie a. in case of a judgment upon a specific
The decree is not yet final but subject to change with the evidence before the US courts, pursuant to Quebec law. thing, the judgment is conclusive upon the title to
circumstances. Generally, divorce decree awarding custody TPP alleges that since Quebec law does not reciprocate as to the thing
of child to one spouse is respected by other states but such judgements of NY courts, NY should also not recognize the b. in case of judgment upon a person, the
decree has no effect in another state as to facts and Quebec judgment as adjudications of the issues. judgment is a presumptive evidence of a right as
conditions occurring subsequently to date of decree. Court between the parties and their successors in interest
of another state may award custody otherwise upon proof of HELD: This claim of TPP pursuant to the Hilton vs. Guyot by a subsequent title; but the judgment may be
subsequent matters justifying such decree to the child‘s doctrine should not be followed. Persuasiveness of a foreign repelled by evidence of want of jurisdiction, want
interest. judgment is not dependent upon comity nor reciprocity. of notice to the party, collusion, fraud, or clear
Even without these principles, a judgment has its own mistake of law or fact.
strength. Following the Hilton vs. Guyot ruling would
4. The state where the foreign judgment was obtained allows deprive a party of the private rights he has acquired by This rule does not refer to intrinsic fraud which goes to the
recognition or enforcement of Philippine judgment reason of a foreign judgement because the country in whose merits of the case. To impeach a foreign judgment, fraud
courts the judgement was rendered has a different rule of must be ―extrinsic, collateral act which vitiates the most
In Hilton vs. Guyot, a French judgment was not recognized evidence than what the recognizing court has and does not solemn proceedings of the courts of justice‖ such as
by a US court because it found out that French laws allowed give the same effect as the latter gives to a foreign judgment. collusion by the parties, suppression of an important
review of American judgments on the merits. This ruling is document or the presentation in evidence of a forged will or
widely criticized because: 5. The judgment must be for a fixed sum of money falsified affidavit. Extrinsic fraud signifies that a party is
 Instead of being a mutual exchange of privileges, deprived of his day in court.
comity was used as a means of retaliation. Unless the foreign judgment specifies performance or
delivery, there is nothing for the forum court to enforce. In
Sadler vs. Roberis, the English court held that until taxation,
55
Philippine Aluminum vs. FASGI E. Grounds for Non-Recognition may be refused if such were taken without giving the child
(1950) opportunity to be heard or if contrary to public policy.
FACTS: FASGI (US) entered into a distributorship Uniform Money-Judgment Recognition Act of the US,
agreement with PAWI (Phil). PAWI shipped defective Section 4: Violation of ordre public & nonobservance of due process
goods to FASGI. FASGI sued PAWI for breach of contract are included as grounds for non-recognition in many Hague
in US court. They entered into a settlement but PAWI still (a) A foreign judgment is not conclusive if- Conventions.
failed to pay. US court issued a certificate of final judgment 1. The judgment was rendered under a system which
upon application by FASGI of entry of judgment. FASGI does not provide impartial tribunals or procedures
was not able to satisfy the claim in US so it filed a complaint compatible with the requirements of due process of law F. Modern Developments in Enforcement of Foreign
for enforcement in RTC. RTC dismissed but CA reversed. 2. The foreign court did not have personal jurisdiction Judgment
over the defendant
HELD: California court judgment may be enforced. A 3. The foreign court did not have jurisdiction over the 1. The Hague Conference on Private IL Convention on
judgment for a sum of money ordered in a foreign court is subject matter Recognition & Enforcement of Foreign Judgments in Civil &
presumptive evidence of a right between the parties and their Commercial Matters established conditions & requisites for
successors-in-interest, but when suit for enforcement is filed (b) A foreign judgment need not be recognized if- contracting states to recognize & enforce each other‘s
in Phil court, the judgment may be repelled by evidence of 1) The defendant in the proceedings in foreign court judgment.
want of jurisdiction, want of notice, fraud, collusion or a did not receive notice of the proceedings in
clear mistake of law or fact. sufficient time to enable him to defend Contributions:
In CAB, PAWI failed to prove that there was collusion 2) The judgment was obtained by fraud a) provisions on applicability of Convention
between its counsel, Mr. Ready, and FASGI in entering into 3) The cause of action or claim for relief on which irrespective of nationality
the settlement and in agreeing to an entry of judgment judgment is based is repugnant to public policy of b) non-refusal for sole reason that court of state of
against PAWI. PAWI should have raised the issue before the state. origin has applied a law other than that which
the forum court in line with the principle of comity of 4) The foreign judgment conflicts with another final would have been applicable according to the rules
nations that a court should refrain from assuming the power & conclusive judgment. of Private IL of the state addressed
to pass upon the correctness of the application of laws and 5) The proceeding in the foreign country was c) it addresses the question of whether a default
evaluation of facts of judgments issued by foreign courts. contrary to an agreement between the parties judgment is subject to enforcement
under which the dispute in question settled d) establishes recognition & enforcement procedures
otherwise than the proceeding in that court
Puyat vs. Zabarte 6) In the case of jurisdiction based only on personal The seventh session looked into possibility of a general
(2001) service, the foreign court was a seriously convention on recognition & enforcement of judgments
FACTS: Z filed an action to enforce money judgment inconvenient forum for the trial of the action whose chief benefit will be the relatively uniform procedure
rendered by the Superior Court of California against P. RTC among contracting states.
by summary judgment ordered Puyat to pay Z pursuant to Grounds 1-3 under letter b are mandatory & the last 3 are
Judgment of Stipulation for Entry of Judgment contained in discretionary. 2. The EEC Convention of 1968
the Compromise Agreement between them in the Calif. The ground on non-recognition for lack of jurisdiction in
court. CA held that P is estopped from assailing the personam is most debatable. Most courts consider Six countries comprising the European Economic
judgment that had become final. jurisdiction of foreign court as appropriate when there are Community are signatories to Convention on Jurisdiction of
significant contacts between forum states & individuals. Courts & Enforcement of Decisions…
HELD: The summary judgment is allowed. Since the
present action lodged in the RTC was for the enforcement The service of summons as the traditional basis for exercise The Convention extends to Common Market area the reach
of a foreign judgment, there was no need to ascertain the of jurisdiction has been eroded. of jurisdictionally improper for a now available against non-
rights and obligations of the parties based on foreign laws or residents under procedural systems of 4 member states.
contracts; the parties needed only to perform their The ground that ―foreign court was seriously inconvenient‖
obligations under the Compromise Agreement they had employs doctrine of forum non conveniens to restrain use of 3. The Uniform Money-Judgments Recognition Act
entered into. None of the reasons for invoking forum non ―presence‖ as cornerstone of jurisdiction.
conveniens barred the RTC from exercising its jurisdiction This seeks to inspire more confidence in stability of
(forum shopping, overcrowded dockets, harassment of Art 23 Hague Convention on Jurisdiction, Applicable Law, American law & bring together into one statute all common
defendants, etc.) In CAB, there was no more need for Recognition, Enforcement & Cooperation in re of Parental law rules of recognition from jurisprudence.
material witnesses, no forum shopping or harassment of Responsibility & Measures for Protection of Children:
Puyat, no inadequacy in the local machinery to enforce the
foreign judgment and no question raised as to the Considering the best interests of child, recognition of
application of any foreign law. measures directed for protection of the child or his property
56
What does the act cover? judgment is unquestionably valid and is binding between the duties or fundamental policies that the recognizing court
parties. When the judge who is the final exponent of that deem important.
It is applicable to any foreign country judgment that is final law, authoritatively declares that the assignment by the
& conclusive & enforceable when rendered even though an Custodian of the assets of the Manila firm cannot and will In practice, courts are inclined to give recognition because of
appeal is pending or it is subject to appeal. not be allowed to affect the rights of the party concerned in 1) overriding public interest
Hong Kong, the court ruled that it is not possible for a 2) dictates of public policy that there be an end to litigation.
foreign court to pronounce his decision wrong.
G. Procedure for Enforcement
Procedure in other civil law countries
The Philippines has adopted the common law practice of
not instantaneously executing foreign judgment. B. Second Mode: Exequatur - -Summary proceeding also
known as ‗exequatur‘ procedure.
MODES OF ENFORCEMENT Authenticated copy of foreign judgment need only be
accompanied by a certification from Clerk of Court. Once
A. First Mode: Need for New Judicial Action validated the foreign judgment has same effect as local
judgment. Example: French formule executoire, used in
Procedure in Philippines France, Italy, Austria
(Compared to simple procedure of exequaure, Philippine
mode is protracted & expensive). C. Third Mode: Judgment Registration

Our laws require that a petition should be filed in proper It may or may not involve judicial supervision. Authenticated
court attaching authenticated copy of foreign judgment to be copy of foreign judgment filed w/ registrar‘s office w/ other
enforced. proofs required by domestic laws & foreign judgment is
converted into a local one that is immediately executory.
Philippine consul must certify that it had been rendered by a
court of competent jurisdiction. The petition must comply It is used in Australia, England.
w/ all the requisites of an enforceable judgment.

Requirement to file an action anew Distinctions between a foreign country & a sister-state
judgment in United States
Attempt to reconcile the principle of territorial jurisdiction
of courts w/c demands that the enforcement of a judgment These differences are premised on possible absence of
outside the territory of rendering court must be placed upon principles underlying res judicata practices within foreign
some other basis than the authority of the rendering court country.
w/c ceased at its jurisdictional limits- & the principle of res
judicata. Von Mehren & Trautman: There are significant differences
between the 2 to justify refusal of a foreign country judgment
even though it could be recognized if rendered by a sister
Ingenohl vs. Olsen and Co. state:
FACTS: Ingenohl obtained a HK judgment declaring it to 1) US Constitution clause of full faith and credit.
be the owner of the trademark against Olsen. Ingenohl then This substitutes a federal policy in place of
recovered the sums awarded by the HK judgment in an individual state policies, thus demanding that
action for collection in Manila. Olsen appealed. The appeal sister-state judgments be given more than minimal
was granted because the trial court erred in not taking into preclusive effects.
account the fact that Olsen had bought the Ingenohl 2) Judgments of sister-state may be brought to US
trademark in a sale of the same conducted by the Alien Supreme Court for review
Property Custodian. Hence this petition by Ingenohl. 3) Judgments rendered by sister states are based on
legal procedures & standards similar to those
HELD: There is no error on the part of the HK court. In whose recognition is sought.
authoritatively passing upon the issue of not giving effect to
the sale by the Alien Property Custodian, it cannot be said On the other hand, a foreign country judgment may have
that the HK tribunal committed a wrong decision. The been decided under rules that disregard private rights &
57