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Conflict of Laws

Comprehensive reviewer of Sempio-Diy book


Chapter 1
In General

Conflict of Laws
That part of the municipal law of a state which directs its
courts and administrative agencies, when confronted with a
legal problem involving a foreign element, whether or not
they should apply a foreign law or foreign laws
Conflict of laws case
Any case which involves facts occurring in more than one
state or nation, so that in deciding the case, it is necessary
to make a choice between the laws of different states or
countries
Note: Conflict of laws is NOT part of international law.
Although it is sometimes thought of as part of international
law because of the presence of a foreign element in a given
problem, it is not international law in character but is part of
the municipal law of each state. By municipal law in Conflict
of Laws is meant the internal or local law of each state.
Conflict of laws vs. public international law
Public
Conflict of laws
International
Law
As to persons
Governs
Governs private
involved
sovereign states
individuals or
and entities that
corporations
are internationally
recognized or
possessed of
international
personality
As to nature
International in
Municipal in
character
character
As to
Applies only to
Deals with
transactions
transactions in
transactions
involved
which only
strictly private in
sovereign states
nature in which
or entities with
the country as
international
such has generally
personality are
no interest
concerned and
which generally
affect public
interest
As to remedies
The concerned
Recourse is had to
applied
states may first
judicial or
resort to peaceful
administrative
remedies. If these tribunals in
remedies fail, the
accordance with
states concerned
the rules of
may resort to
procedure of the
forcible remedies
country where
they sit
Sources of Conflict of Laws
1. Direct sources
Treaties
International conventions
Constitutions
Codifications and statutes
Judicial decisions
International customs
2. Indirect sources
Natural moral law
Lesley Claudio (A 2012)

Writings and treaties of thinkers and


famous writers
Chapter 2

Jurisdiction and choice of law


How one deals with a problem in Conflict of Laws
1. First, determine whether the court has jurisdiction
over the case.
If it has no jurisdiction, the case should be
dismissed
If it has jurisdiction, the court will
determine whether it should assume
jurisdiction over the case or dismiss it on
the ground of forum non conveniens
It is the law of the forum that determines
whether the court has jurisdiction over the
case
2. It will next determine whether to apply the internal
law of the forum or the proper foreign law
Three kinds of jurisdiction
1. Jurisdiction over the subject matter
2. Jurisdiction over the person
3. Jurisdiction over the res
Jurisdiction over the subject matter
Conferred by law
Defined as the power to hear and determine cases
of the general class to which the proceedings in
question belong
Cannot be conferred by consent of the parties or
by their voluntary submission
Must be invoked by filing the proper complaint or
petition with the court.
Note: In the realm of Conflict of Laws, however, there
is another element which the court must consider in
determining the matter of jurisdiction the possible
enforceability of its decision in foreign states, subject to
the rights of said states.
Jurisdiction over the person
The competence or power of a court to render a
judgment that will bind the parties involved
Jurisdiction over the plaintiff: Acquired the
moment he invokes the power of the court by
instituting the action by the proper pleading
Jurisdiction over the defendant: Acquired when
he enters his appearance or by the coercive power
of legal process exerted by the court over him
personal or substituted service of summons
o
EX: If appearance is for the sole purpose
of questioning the jurisdiction of the court.
Note: Question of erroneous service of summons must
be raised before judgment is rendered, or this would be
a case of waiver. Defective service may be cured by
actual receipt of summons or if in any other manner,
knowledge of the existence of the case
Jurisdiction over the Res
Jurisdiction over the particular subject matter in
controversy, regardless of the persons who may be
interested therein
The basis of the exercise of this jurisdiction is the
presence of the property within the territorial
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Conflict of Laws

Comprehensive reviewer of Sempio-Diy book

jurisdiction of the forum even though the court


may not have personal jurisdiction over the
persons whose interests in the property are
affected
The purpose of the suit is not to impose a persona
liability on anyone but it is to affect the interests of
all persons in a thing.

Jurisdiction in personam
Binds only the parties and
their successors in interest

Jurisdiction over the res


Binds the whole world

Actions quasi in rem


The purpose is neither to impose a personal liability
in a thing nor to affect the interests of all persons
in a thing, but to affect the interests of particular
persons in a thing.
An action affecting the personal status of the
plaintiff is also classified as an action quasi in rem
Service of summons, how effected
1. In actions in personam
(1) Personal service
(2) Substituted service
Note: Service by publication would NOT be
sufficient
2.

3.

Service by publication
(1) Action in rem
(2) Action quasi in rem
(3) Action involves the personal status of
plaintiff
Extraterritorial service of summons
(1) When the defendant does not reside and
is not found in the Philippines, and the
action affects the personal status of the
plaintiff
(2) When the defendant does not reside and
is not found in the Philippines, and the
action relates to or the subject of which is,
property within the Philippines (real or
personal), in which the defendant has a
claim, a lien or interest, actual or
contingent
(3) When the defendant is a non-resident but
the subject of the action is property
located in the Philippines in which the
relief demanded consists in excluding the
defendant from any interest therein
(4) When the property of a non-resident
defendant has been attached in the
Philippines
While a writ of attachment may
be issued by the court, said
writ cannot be implemented
until the court has acquired
jurisdiction over the nonresident defendant

Extraterritorial service, how effected


By leave of court:
1. By personal service
2. By publication, but copy of the summons and the
order of the court must be sent by registered mail
to the defendants last known address

Lesley Claudio (A 2012)

3.

In any other manner that the court may deem


sufficient, e.g., by registered mail

Instances when court may refuse to exercise


jurisdiction over a case on the basis of forum non
conveniens
1. The evidence and the witnesses may not be readily
available in the forum
2. The court dockets of the forum may already be
clogged so that to permit additional cases would
hamper the speedy administration of justice
3. The belief that the matter can be better tried and
decided in another jurisdiction, either because the
main aspects of the case transpired there or the
material witnesses have their residence there
4. To curb the evils of forum shopping the nonresident plaintiff might have filed the case in the
forum merely to secure procedural advantages or
to annoy or harass the defendant
5. The forum has no particular interest in the case
the parties not being citizens of the forum or are
residents elsewhere, or the subject matter of the
case evolved somewhere else
6. Other courts are open and the case may be better
tried in said courts
7. The inadequacy of the local judicial machinery for
effectuating the right sought to be enforced by the
plaintiff
8. The difficulty of ascertaining the foreign law
applicable
Note: The doctrine should generally apply only if the
defendant is a corporation. For if the defendant is an
individual, the proper forum may not be able to acquire
jurisdiction over him, thus leaving the plaintiff without
any remedy.
Three instances when the forum has to apply the
internal or domestic law (lex fori) in deciding a case
in conflicts of law
1. When the law of the forum expressly so provides in
its conflicts rules
2. When the proper foreign law has not been properly
pleaded and proved
3. When the case involves any of the exceptions to
the application of the proper foreign law (i.e.
exceptions to comity)
Why foreign law cannot be applied if it has not been
pleaded and proved
Our courts cannot take judicial notice of foreign laws
How a foreign law is proved under our Rules of Court
1. Written law
(1) An official publication thereof
(2) A copy of the law attested by the officer
having legal custody of the record or by
his deputy, accompanied by a certificate of
any Philippine embassy, consular, or
foreign service officer in the foreign
country where the record is kept, and
authenticated by the seal of his office
2. Unwritten law
(1) The oral testimony of expert witnesses
(2) By printed and published books of reports
of decisions of the country involved if
proved to be commonly admitted in its
courts
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Conflict of Laws

Comprehensive reviewer of Sempio-Diy book

Processual presumption of law


This rule means that when the proper foreign law has not
been properly proved, the court of the forum may presume
that said foreign law is the same as its local or domestic
law, which it can now apply
Exceptions to the applications of a foreign law
1. When the application of the foreign law would run
counter to a sound and established public policy of
the forum
2. When the foreign law is contrary to the almost
universally conceded principles of morality (contra
bonos mores)
3. When the foreign law involves procedural matters
EX: When the law is both procedural and
substantive
4. When the foreign law is penal in character
EX: A penal clause in a contract may
however be enforced here because such
clause is not criminal in nature but
provides only for liquidated damages
5. When the law is purely fiscal (i.e., revenue
producing) or administrative in nature
6. When the foreign law might work undeniable
injustice to the citizens or residents of the forum
7. When the application of the foreign law would
endanger the vital interests of the State
8. When the case involves real or personal property
located in our country
Chapter 3
Theories that justify the application of the foreign law
Theories that justify the application of the foreign law
instead of domestic or internal law
1. Theory of comity
2. Vested right theory
3. Theory of local law
4. Theory of harmony of laws
5. Theory of justice
Theory of comity
According to this theory, no foreign law would be allowed to
operate in another state except by the comity of nations
Comity
The recognition which one state allows within its
territory, to the legislative, executive, or judicial acts of
another nation
Two principles upon which the theory of comity
rests
1. The comity based on reciprocity
2. The comity based on the persuasiveness of a
foreign judgment
Our Civil Procedure still follows the
principle of reciprocity because in
Sec. 48, Rule 39, a foreign final
judgment or order is presumptive
evidence of a right as between the
parties and their successors in
interest
The vested-rights theory
Under this theory, our courts enforce not the foreign law or
foreign judgment but the right or rights that have been
vested under such law or judgment.
Lesley Claudio (A 2012)

Rights once acquired should be enforced regardless


of where the suit for its enforcement was filed.

Theory of local law


Under this theory, we apply a foreign law not because it is
foreign, but because our own law by applying a similar rule
requires us to do so, hence it is as if the foreign law has
become part of our own internal or domestic law.
Theory of harmony of laws
Under this theory, identical or similar problems should be
given identical or similar solutions thus resulting in harmony
of laws
Theory of justice
Since the purpose of all laws, including Conflict of Laws, is
the dispensation of justice, the proper foreign law should be
applied in order to attain this objective
The defect of this theory, however, is that different
persons may have different ideas of what is just
Note: No single theory contains the whole truth; no one
approach is completely valid. All of the theories have
validity. This suggests that they are not entirely exclusive.
Chapter 4
Nature and composition of conflicts rules
Purely internal provision of law vs. conflicts rule
Purely internal provision
Conflicts rule/ A
of law
provision in conflict of
laws
Governs a domestic
A provision found in our own
problem, i.e., one without a
law which governs a factual
foreign element
situation possessed of a
foreign element
Example: Art. 796 All
Example: Art. 16 Real
persons who are not
property as well as personal
expressly prohibited by law
property is subject to the
may make a will
law of the country where it
is situated
Two kinds of conflicts rules
1. One-sided rule
Indicates when Philippine law will apply
Example: Article 15 of the CC Laws
relating to family rights and duties, or to
the status, condition, and legal capacity of
persons, are binding upon citizens of the
Philippines even though living abroad
2. All-sided or multilateral rule
Indicates whether to apply the local law or
the proper foreign law
Example: Art. 16 Real property as well
as personal property is subject to the law
of the country where it is situated
Parts of every conflicts rule
1. The factual situation the set of facts or
situation presenting a conflicts problem because
there is a foreign element involved
2. The point of contact or connecting factor
The law of the country with which the factual
situation is most intimately connected

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Conflict of Laws

Comprehensive reviewer of Sempio-Diy book

Note: The first part raises while the second part


answers a legal question

3.
4.

Being a concept of social order, it cannot easily be


terminated at the mere will or desire of the parties
concerned
It is generally supposed to have a universal
character

Chapter 5
Characterization of conflict rules
Characterization
Otherwise known as classification or qualification is the
process of assigning a certain set of facts or factual
situation to its proper or correct legal category. By
characterizing the legal problem, the court of the parties
involved reach the proper solution whether to apply the
local law or the proper foreign law
Most writers hold that on the grounds of practical
necessity and convenience, it is the forum or the
lex fori that should determine the problems
characterization unless the result would be a clear
injustice
Note: Modern trend is to consider prescriptive periods
or Statute of Frauds that the parties had in mind at the
time the transaction took place

Different theories on how the personal law of an


individual is determined
1. The nationality theory
Personal theory
The status and capacity of a person are
determined by the law of his nationality or
his national law
2. The domiciliary theory
By virtue of which the status and capacity
of a person is determined by the law of his
domicile
Territorial theory
3. The situs or eclectic theory
Views the law of a particular place or situs
of an event or transaction as generally the
controlling law
Note: The Philippines follows the nationality
theory.

Chapter 6
Persona law Theories in determining ones personal
law
Personal law.
That which attaches to him wherever he may go. The law
that generally governs his status, capacity, condition, family
relations, and the consequences of his actuations. It may
be:
1. National law
2. Law of his domicile
3. Law of the situs
Status vs. capacity
Status
Place of an individual in
society and consists of
personal qualities and
relationships more or less
permanent, with which the
state and the community are
concerned

Citizenship
A citizen is one who owes
allegiance to and is entitled
to the protection of the
State
nationality and citizenship

Chapter 7
The Nationality Theory

Capacity
Only part of ones status and
may be defined as the sum
total of his rights and
obligations

Two kinds of capacity


1. Juridical capacity
Passive capacity
The fitness to be the subject of legal
relations
2. Capacity to act
Active capacity
The power to do acts with legal effects
Characteristics of status
1. It is conferred principally by the State, not by the
individual
2. It is a matter of public interest or social interest

Lesley Claudio (A 2012)

Nationality v. citizenship
Nationality
Refers to membership in a
political community, one that
is personal and more or less
permanent, not temporary.
In the field of Conflict of Laws,
are the same

Different kinds of citizenship in the Philippines


1. Natural born citizens
Those who are citizens from birth without
having to perform any act to acquire or
perfect their Philippine citizenship
Native-born Filipinos
Those born in the Philippines. Natural-born
citizens may not be native-born if they were
born abroad
2.

Citizens by naturalization
Those who were formerly aliens but by
judicial, legislative, or administrative
process, have become Filipino citizens

Jus soli v. jus sanguinis


Jus soli
A person is a citizen of the
country where he was born
or of the country of his birth

Jus sanguinis
It is citizenship by blood
This is the rule that we
follow in the Philippines

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Conflict of Laws
Note: Each country or state has the sole power and
authority to determine under its internal or municipal law
who are its citizens or nationals
Dual allegiance under Sec. 5, Article IV of the
Constitution
The provision in the Constitution (dual allegiance of citizens
is inimical to national interest and shall be dealt with by
law) is concerned not with dual citizenship per se but with
naturalized citizens of the Philippines who still maintain their
allegiance to the countries of their origin.
Effective nationality theory
Within a third state, a person having more than one
nationality shall be treated as if he had only one. Without
prejudice to the application of its law in personal matters
and of any conventions in force, a third state shall apply the
nationalities which any such person possesses, recognize
exclusively in its territory either the nationality of the
country in which he is habitually and principally a resident,
or the nationality of the country with which in the
circumstances he appears to be in fact mostly connected
The law of the country of which the deceased was
both a citizen and a domiciliary at the time of her
death is considered more effectively connected to
her than her other national law.

Comprehensive reviewer of Sempio-Diy book


Modes of acquiring Philippine citizenship by
naturalization
1. Judicial process
Com. Act No. 475 as amended by RA 530
2. Legislative process
When Philippine citizenship is conferred by
a special act of Congress on deserving
aliens
3. Administrative process
RA 9139 or the Administrative
Naturalization Law of 2000
Under this law, a Special Committee on
Naturalization is created, with the power
to approve, deny, or reject applications for
naturalization filed with said Committee
Derivative naturalization
Philippine citizenship conferred on:
1. The wife of a naturalized husband
2. The minor children of a naturalized father
3. The alien wife of a natural born or naturalized
citizen, in the latter case, the marriage having
taken place after the husbands naturalization

Citizens of the Philippines under the 1987


Constitution
1. Those who are citizens of the Philippines at the
time of the adoption of this Constitution
2. Those whose fathers or mothers are citizens of the
Philippines
3. Those born before January 17, 1973, of Filipino
mothers, who elect Philippine citizenship upon
reaching the age of majority and
4. Those who are naturalized in accordance with law
Citizenship of a Filipino woman who marries a
foreigner
Citizens of the Philippines who marry aliens shall retain their
citizenship unless by their act or omission they are deemed,
under the law, to have renounced their Philippine citizenship
(Article 4, Sec. 4, 1987 Constitution)
Citizenship of an alien woman who marries a Filipino
husband
Under Sec. 15 of the Revised Naturalization Law (Com. Act
No. 475), an alien woman marrying a Filipino, native-born
or naturalized, becomes ipso facto a Filipino, provided she is
not disqualified to be a citizen of the Philippines under Sec.
4 of the same law.
It is enough that an alien wife proves that she is
not disqualified to be a Filipino citizen not
necessarily in court but even before an agency like
the Immigration Commission
Note: An alien woman married to an alien husband
who (the husband) is subsequently naturalized also
follows the Philippine citizenship of her husband,
provided she does not suffer from any of the
disqualifications under Sec. 4 of the same Revised
Naturalization Law. This is a case of derivative
naturalization (similar to the minor children of a
naturalized Filipino citizen)
Naturalization
The process of conferring on an alien the citizenship of
another country by any of the means provided by law.

Lesley Claudio (A 2012)

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Conflict of Laws

Qualifications

Disqualifications

Comprehensive reviewer of Sempio-Diy book

Naturalization
Judicial naturalization under Com. Act. 475,
as amended
1. The petitioner must not e less than 21 years
of age on the date of the hearing of the
petition
2. He must have, as a rule, resided in the
Philippines for a continuous period of not less
than 10 years
3. He must be of good moral character, and
believe in the principles underlying the
Philippine Constitution, and must have
conducted himself in a proper and
irreproachable manner during the entire
period of his residence in the Philippines in his
relation with the constituted government as
well as with the community in which he is
living
4. He must own real estate in the Philippines
worth not less than 5,000, Philippine
currency, or must have some lucrative trade,
profession, or occupation
5. He must be able to speak and write English or
Spanish and any one of the principal
languages and
6. He must have enrolled his minor children of
school in any of the public or private schools
recognized by the Bureau of Private Schools
where Philippine history, government, and
civics are taught or prescribed as part of the
school curriculum during the entire period of
the residence required of him, prior to the
hearing of his petition for naturalization as
citizen

1.
2.
3.
4.
5.
6.
7.
8.

Lesley Claudio (A 2012)

Administrative naturalization under RA 9139 or


the Administrative Naturalization Law of 2000
1. The applicant must be born in the Philippines
and residing therein since birth
2. The applicant must not be less than 18 years of
age, at the time of filing of his/her petition
3. The applicant must be of good moral character
and believes in the underlying principles of the
Constitution and must have conducted
himself/herself in a proper and irreproachable
manner during his/her entire period of
residence in the Philippines in relation with the
duly constituted government as well as with the
community in which he/she is living
4. The applicant must have received his/her
primary and secondary education in any public
school or private education institution duly
recognized by the DECS, where Philippine
history, government, and civics are taught and
prescribed as part of the school curriculum and
where enrollment is not limited to any race or
nationality: Provided, that should he/she have
minor children of school age, he/she must have
enrolled them in similar schools.
5. The applicant must have a known trade,
business, profession, or lawful occupation, from
which he/she derives income sufficient for
his/her support and if he/she is married and/or
has dependents, also that of his/her family:
Provided, however, that this shall not apply to
applicants who are college degree holders but
are unable to practice their profession because
they are disqualified to do so by reason of their
citizenship
6. The applicant must be able to read, write, and
speak Filipino or any of the dialects of the
Philippines, and
7. The applicant must have mingled with the
Filipinos and evinced a sincere desire to learn
and embrace the customs, traditions, and ideals
of the Filipino people
Those opposed to organized government or affiliated with any association of group of person who
uphold and teach doctrines opposing all organized governments
Those defending or teaching the necessity of or propriety of violence, personal assault or
assassination for the success or predominance of their ideas
Polygamists or believers in the practice of polygamy
Those convicted of crimes involving moral turpitude
Those suffering from mental alienation or incurable contagious disease
Those who, during the period of their residence in the Philippines, have not mingled socially with
Filipinos, or who have not evinced a sincere desire to learn and embrace the customs, traditions, and
ideals of the Filipinos
Citizens or subjects of nations with whom the Philippines is at war
Citizens or subjects of a foreign country whose laws do not grant Filipinos the right to be naturalized
citizens or subjects thereof

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Conflict of Laws

Comprehensive reviewer of Sempio-Diy book

Loss of citizenship
Under Com. Act 63, as amended, a Filipino citizen may lose
his citizenship in any of the following ways:
1. By naturalization in a foreign country
2. By express renunciation of citizenship
3. By subscribing an oath of allegiance to support the
constitution or laws of a foreign country upon
attaining twenty-one years of age or more
4. By accepting commission in the military, naval, or
air service of a foreign country
5. By cancellation of the certificate of naturalization
6. By having been declared by competent authority, a
deserter of the Philippine armed forces in time of
war, unless subsequently a plenary pardon or
amnesty has been granted; and
7. In case of a woman, upon her marriage to a
foreigner, if, by virtue of the laws in force in her
husbands country, she acquires his nationality
Under the 1987 Constitution, however, the
woman retains her Philippine citizenship
unless by her act or omission she is
deemed under the law to have renounced
her Philippine citizenship
Philippine citizenship, how reacquired
Under C.A. 63, as amended, Philippine citizenship may be
reacquired as follows:
1. By naturalization, provided the applicant possesses
none of the disqualifications
2. By repatriation of deserters of the Army, Navy, or
Air Corps, Provided, that a woman who lost her
citizenship by reason of her marriage to an alien
may be repatriated in accordance with the
provisions of this Act after the termination of the
marital status
3. By direct act of Congress
RA 9225 Citizenship Retention and Reacquisition
Act of 2003
Under this law, natural born Filipino citizens who had been
naturalized in foreign countries are deemed to have
reacquired Philippine citizenship by taking an oath of
allegiance to the Philippine Constitution and laws. Those
who become naturalized in foreign countries after the
effectivity of the Act retain their Philippine citizenship upon
taking the same oath
Chapter 8
Domiciliary Theory
Domiciliary theory
It is the theory whereby the status, condition, family rights
and obligations, and capacity of a person are governed by
the law of his domicile or the lex domicilii
Domicile
It is the place where a person has his true, fixed,
permanent home, and principal establishment, and to
which, whenever he is absent, he has the intention of
returning.
Art. 50 of the CC: For the exercise of civil rights
and fulfillment of civil obligations, the domicile of
natural persons is the place of their habitual
residence

Domicile v. residence
Domicile
Residence
Denotes a fixed, permanent
Used to indicate a place of
residence to which, when
abode, whether permanent
absent, one has the
or temporary
intention of returning
Residence is not domicile, but domicile is residence coupled
with intention to remain for an unlimited time
Domicile v. citizenship
Domicile
Citizenship
Speaks of ones permanent
Indicates ties of allegiance
place of abode
and loyalty
A person may be a citizen or national of one sate and a
domiciliary of another
Note: The forum applies its own concept of domicile in
determining the domicile of a litigant before its courts (law
of the forum/lex fori, NOT national law, is the law that
determines ones domicile)
Different kinds of domicile
1. Domicile of origin: The domicile assigned by law
to a person at the moment of his birth
2. Constructive domicile or domicile by
operation of law: The domicile assigned by law to
a person after birth on account of a legal disability,
like minority, insanity, imprisonment, etc.
3. Domicile of choice: The domicile of a person sui
juris because he has his home there and to which,
whenever absent, he intends to return
Principles regarding ones domicile of choice
1. No person can ever be without a domicile or every
natural person must have a domicile
2. A person cannot have two simultaneous domiciles
3. A natural person, free (not a prisoner) and sui juris
(one of age and under no disability), can change
his domicile at pleasure
4. A domicile, once acquired, is retained until a new
one is gained
5. The presumption being in favor of the continuance
of an existing domicile, the burden of proof is on
the one who alleges that a change of domicile has
taken place
6. To acquire a new domicile of choice, the following
must concur:
(1) Residence or bodily presence in the new
locality
(2) An intention to remain there (animus
manendi) and
(3) An intention not to return to the former
abode (animus non revertendi)
Rules determining ones domicile of origin
If the child is legitimate
His domicile of origin is that
of his parents at the time of
his birth

If the child is illegitimate

If the child is legitimated

Lesley Claudio (A 2012)

If parents are separated, the


domicile of the custodial
parent
His domicile of origin is that
of the mother at the time of
his birth
The domicile of his father at
the time of his birth controls

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Conflict of Laws
If the child is adopted

If a foundling

Comprehensive reviewer of Sempio-Diy book


The domicile of origin is the
domicile of his real parents
at the time of his birth, NOT
the domicile of the adopters
The domicile of origin is the
country where it was found

Rules determining ones constructive domicile


MINORS
1. If legitimate, the domicile of both parents
In case of disagreement, that of the
father, unless there is a judicial order to
the contrary
2. If illegitimate, the domicile of the mother
3. In case of absence or death of either parent, the
domicile of the present parent.
Even in case of remarriage of the
surviving parent, still his/her domicile
determines the constructive domicile of
the minor child
4. If the child is adopted, the domicile of choice of the
adopter is the childs constructive domicile
INSANES, IDIOTS, IMBECILES
The law assigns their domicile to them:
1. If they are below the age of majority, the rules on
minors apply to them
2. If they are of age and have guardians, they follow
the domicile of choice of their guardians
3. If they are of age and have no guardians, their
constructive domicile is their domicile of choice
before they became insane
MARRIED WOMEN
1. The constructive
domicile of the wife is
the domicile of both
spouses, unless the law
allows the wife to have a
separate domicile for
valid and compelling
If the marriage is valid
reasons
2. If there is legal
separation between the
spouses, the wife can
have her own domicile of
choice
3. If there is a separation
de facto, the wife can
also have a separate
domicile
Apply the same rules when
If the marriage is
the marriage is valid.
voidable
However, after annulment,
the wife can freely select her
own domicile of choice
If the marriage is void
The wife can have a domicile
separate from the husband
OTHER PERSONS
Convict or prisoner
His domicile is the one he
had possessed prior to his
incarceration
Soldiers
Their domicile is their
domicile before their
enlistment
Public officials or
Their domicile is the one
employees abroad
they had before they were
(diplomats, etc)
assigned elsewhere, unless
they voluntarily adopt their
place of employment as their
Lesley Claudio (A 2012)

permanent residence

Chapter 9
The situs or eclectic theory
Situs or eclectic theory
The capacity, status, and family relations of a person are
governed not necessarily by the law of his nationality or the
law of his domicile but by the law of the place (situs) where
an important element of the problem occurs or is situated
Two kinds of participation of an individual under the
situs or eclectic theory
1. If participation is active When he does an act
voluntarily, the governing law is the law of the
actual situs of the transaction or event
2. If the participation is passive When the
effects of the act are set forth or determined by
law, the governing law is the law of the legal
situs, i.e., the domicile of the individual concerned
Chapter 10
The problem of the renvoi
Renvoi
A French word which means refer back or
return
In Anglo-American countries, the term used is
remission, which means to refer a matter for
consideration or judgment
When does the problem of renvoi arise?
The problem of renvoi arises when there is doubt as to
whether the reference by the lex fori (the law of the country
where the problem arises) to the foreign law involves:
1. A reference to the internal law of the foreign law or
2. A reference to the entirety of the foreign law
including its conflicts rules
In such case, if the first state follows the
nationality theory, and the second state
follows the domiciliary theory, the problem
of renvoi will most probably arise
Four solutions the court can adopt when confronted
with a renvoi problem
1. Reject the renvoi
This means that the court does not want
the problem to be sent back to us.
As in the case of the testate or intestate
succession of a foreigner but domiciled in
our country, we would simply apply his
national law or the internal law of his
country
2. Accept the renvoi
Accept the referral or transmission of the
case back to us, so that instead of
applying the foreign internal law,
Philippine law is applied
Single renvoi or single transmission
3. Follow the theory of desistment or the mutual
disclaimer of jurisdiction theory
Refrain from applying the national law of
the deceased foreigner, although our law
tells us to do so.
If said law follows the domiciliary theory
and directs that we apply the law of the
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Comprehensive reviewer of Sempio-Diy book


domicile of the deceased, so in the end,
we still apply Philippine law

4.

Apply the foreign court theory


We would simply do what the foreign
court would do if confronted with the
same case
Advantage of this theory is that regardless
of the forum, the applicable law will be the
same
Can also result in international ping pong

Double renvoi
This occurs when the local court, in adopting the foreign
court theory, discovers that the foreign court accepts the
renvoi. But since the foreign law remits the case to
Philippine law, being the law of the deceaseds domicile, the
foreign court may discover that Philippine law does not
accept the remission (as it applies the national law of the
deceased) so the foreign court, sitting as a Philippine court,
would still apply its own internal law. This is then what our
court will apply.
Theory of transmission v. renvoi
Theory of transmission
Renvoi
Transmission is the process
Renvoi means to refer a
of applying the law of a
matter for consideration or
foreign state thru the law of
judgment
a second foreign state
Transmission involves three
Renvoi involves two laws
laws
Chapter 11
Conflict rules on status and capacity
When human personality begins under our law
Art. 40, NCC: Birth determines personality, but
the conceived child shall be considered born for all
purposes that are favorable to it, provided it be
born later with the conditions specified in the
following article
Art. 41, NCC: For civil purposes, the fetus is
considered born if it is alive at the time it is
completely delivered from the mothers womb.
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 its complete delivery from the
maternal womb
Personality really begins at conception, subject to the
following conditions:
1. The purpose is favorable to the fetus
2. If it is born alive under Art. 41 of the NCC
Two kinds of children
1. Ordinary With an intra uterine life of at least 7
months
2. Extraordinary With an intra-uterine life of less
than 7 months, in which case it must live for at
least 24 hours after complete delivery from the
mothers womb
Note: In Conflict of Laws, personal law determines the
beginning of ones personality.

Lesley Claudio (A 2012)

Civil personality, when extinguished


Art. 42 of the NCC: Civil personality is extinguished by
death
Refers to physical death not civil death
A declaration of death in accordance with ones
personal law (whether his national law or the law
of his domicile) by a court of competent jurisdiction
is considered valid for all purposes
Absence, defined
A special legal status pertaining to a person who has
disappeared from his domicile, his whereabouts being
unknown, without leaving an agent to administer his
property or even if he had left an agent, the power
conferred by the absentee on the agent has expired
One status of being absent is determined in
accordance with his personal law
Our own courts also have jurisdiction to declare an
alien domiciliary in the Philippines as absent
Judicial declaration of absence under Philippine law
After the lapse of two years without any news about the
absentee or since the receipt of the last news, and five
years if the absentee has left an administrator of his
property, his absence may be declared
Instances when an absentee may be presumed dead
and for what purposes
1. For purposes of remarriage the absentee may
be presumed dead after four years of absence,
the present spouses having a well-founded belief
that the absentee is already dead
However, in case of disappearance where
there is danger of death, an absence of 2
years is enough
2. For all other purposes EXCEPT succession an
absence of seven years, it being unknown whether
or not the absentee still lives
3. For the purpose of succession an absence of
10 years is required, except if the absentee
disappeared after the age of 75 years, in which
case an absence of 5 years is enough to open his
succession
What determines the age of majority in Conflict of
Laws?
It is the personal law of the person that determines whether
he has reached the age of majority or not.
Our conflicts rules on capacity to contract
A persons capacity to contract is governed by his personal
law, whether it is the lex nationalii or the lex domicilii
EX: Contracts involving real or personal property in
which cases the lex situs or lex rei sitae applies
including the capacity of the contracting parties
Note: It is suggested that Article 15 of the CC applying the
nationality theory be limited to strictly family and domestic
transactions, while the law governing the contract should
govern ordinary day-to-day business contracts.
Change of names and surnames
A change of name is a special proceeding to establish the
status of a person involving his relation with others. Aliens
can ask for change of name in the Philippines, provided they
are domiciled here.

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Conflict of Laws

But an alien whose citizenship is either


controverted or doubtful cannot ask for a change of
name

Legislative jurisdiction vs. judicial jurisdiction over


ones status
Legislative jurisdiction
Judicial jurisdiction
Legislative jurisdiction over
Judicial jurisdiction over
ones status is the power of
ones status is the power of
his personal law to govern
the courts to decide
his status wherever he goes
questions or controversies
concerning ones status
Note: Thus, our courts can decide cases involving the
status and capacity of foreigners brought before them, but
in doing so, our courts will apply the personal law of the
foreigner, whether it be his national law or the law of his
domicile, depending on what theory the country of his
citizenship follows.
Example: Even if the personal law of the foreigner
allows divorce, he cannot apply for divorce from his
spouse before a Philippine court because we do not
recognize divorce and our courts have no
jurisdiction to grant divorces. However, a foreigner
who applies for legal separation in our country on a
ground available under his national law but not
under our law, may obtain a favorable judgment
from our courts, because it is his national law on
legal separation that our courts will apply, but
subject to our procedural law.
Chapter 12
Conflicts rules on marriage
Philippine internal law on the formal validity of
marriages or the validity of marriage as a contract
1. Essential requisites
(1) Legal capacity of the contracting parties
who must be male and female
(2) Consent freely given in the presence of a
solemnizing officer
2. Formal requisites
(1) Authority of the solemnizing officer
(2) A valid marriage license
(3) A marriage ceremony takes place with the
appearance of the contracting parties
before the solemnizing officer and their
personal declaration that they take each
other as husband and wife in the presence
of not less than two witnesses of legal age
Note: The above formal requisites apply to foreigners who
get married in the Philippines. If one or both of the parties
are foreigners, the foreigner must submit a certificate of
legal capacity to contract marriage issued by the diplomatic
or consular officials of his/her country in the Philippines
before he/she can be issued a marriage license. Stateless
persons or refugees need only to submit an affidavit stating
the circumstances showing such capacity to contract
marriage
Common law marriages of foreigners
As to common law marriages of foreigners who come to the
Philippines as husband and wife, it would seem that we
should consider the marriage valid if valid under their
national law or the law of the place where the relationship
began. But the marriage must not be contra bonos mores or
universally considered incestuous
Lesley Claudio (A 2012)

Comprehensive reviewer of Sempio-Diy book

Foreign marriages of Filipinos


GR: Under Art. 26 of the Family Code, all marriages outside
the Philippines in accordance with the laws in force in the
country where they were solemnized and valid there as
such, shall also be valid in this country, except those
prohibited under Articles 35(1), (4), (5), and (6), 36, 37,
and 38.
In other words, we follow the rule of lex loci
celebrationis
EX: A foreign marriage of Filipinos in a foreign country will
still be void in the Philippines if:
1. Either or both parties did not have legal capacity to
get married (Art. 35 (1))
2. The marriage is immoral for being bigamous or
polygamous (Art. 35 (4))
3. Consent of one party is lacking, because of mistake
as to the identity of the other (Art. 35 (5))
4. One of the parties was psychologically
incapacitated at the time of the marriage to comply
with the essential marital obligations (Art. 36)
5. The marriage is incestuous (Art. 37)
6. The marriage is void by reason of public policy
(Art. 38)
Note: Consular marriages of Filipinos abroad are valid (Art.
10, Family Code)
Conflicts rules on marriages between foreigners
solemnized abroad
1. We still apply the rule of lex loci celebrationis, but
not the exceptions in the first par. of Art. 26 of the
Family Code which apply only to Filipinos
But universally considered incestuous
marriages and marriages that are highly
immoral are excepted
2. Proxy marriages Not allowed under Philippine
internal law
Rule in the US if permitted by the law of
the place where the proxy participates in
the marriage ceremony, proxy marriages
are entitled to recognition insofar as the
formal validity of the marriage is
concerned
3. Marriages on board a vessel on the high seas
Since the country whose flag the ship is flying has
jurisdiction over the ship, the rule is that
compliance with the law of the said country is
required for the marriage to be valid
4. If the parties or at least the husband is a Muslim
it is believed that we would recognize up to four
marriages of the same husband (Philippine Muslim
Code on Personal Laws)
Mixed Marriages
Marriage between a
Filipino and foreigner
ABROAD

Marriage between a
Filipino and a foreigner in
the PHILIPPINES

If the marriage is valid


under the law of one of the
spouses while void under the
law of the other, we should
uphold the validity of the
marriage, unless the
marriage is universally
incestuous or highly immoral
(the same rule as to
foreigners who get married
abroad)
The national law of the
Filipino Philippine law
should be followed
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Comprehensive reviewer of Sempio-Diy book


otherwise our public policy
would be violated

Two aspects of marriage as a status


1. Aspect of personal rights and obligations of the
spouses
Purely personal and are not ordinarily
interfered with by the courts
2.

Aspect of their property relations


The law lays down rules and judicial
sanctions as they may affect public
interest

Law governing personal relations of spouses in


Conflict of Laws
1. Countries that follow the nationality theory (e.g.
Philippines) apply the spouses national law in
determining their personal relations with each
other
2. Countries that follow the domiciliary theory the
personal relations of the spouses are governed by
the law of their domicile
Spouses of different nationalities: law governing their
personal relations
GR: The personal relations of the spouses are governed by
the national law of the husband
Alien woman who
marries a Filipino
husband

A Filipina who marries an


alien husband

3.

If the spouses retain their different nationalities


after the marriage National law of both spouses
should govern
RE: 3 Better solution: apply the national
law of the husband at the time of the
marriage
EXCEPTIONS
1. If the national law of the husband violates public
policy of the forum
2. The national law of the wife happens to be the law
of the forum
Conflicts rules on the property relations of husband
and wife
GR: Property relations of the spouses are governed by
Philippine law, regardless of the place of the celebration of
marriage and their residence (nationality theory)
If one spouse is a Filipino (wife or husband) and
the other is an alien, Philippine law would still
govern
EX:
1.
2.

If both spouses are aliens general rule in Conflict


of Laws will apply
With respect to extrinsic validity of contracts
affecting real property the lex situs will govern
the formalities to be observed for the contracts
validity

Ipso facto becomes a Filipino


citizen if she does not suffer
under any disqualification for
naturalization as a Filipino
citizen

Doctrine of immutability of matrimonial (property)


regime of the spouses
Regardless of the change of nationality by the husband or
the wife or both, the original property regime that prevailed
at the start of their marriage prevails

Personal relations:
national law of the husband
shall govern (GR)
Constitution provides that
she shall retain her
Philippine citizenship, unless
by her act or omission, she
is deemed, under our law, to
have renounced her
citizenship

Immutability of the property regime v. immutability


of the law governing the property regime
Immutability of the
Immutability of the law
property regime
governing the property
regime
A subsequent change of
The law that creates and
nationality by the husband
governs the property regime
or wife or both does NOT
may change
change the original property
regime

Personal relations: Art. 80


of the Family Code provides
that the national law of the
wife or Philippine law would
govern the spouses
personal relations (rule was
intended to protect the
Filipino wife)

Annulment v. Declaration of nullity of marriage


Annulment
Declaration of nullity
Remedy if the marriage is
Remedy if the marriage is
voidable or annullable (valid
void ab initio
until annulled)

Conflict rules on the law governing personal relations


of spouses who change nationalities
General Rules
1. If the spouses have the same nationality but they
acquire a new nationality by their common act
their new national law will govern their personal
relations
2. If the husband alone changes his nationality after
the marriage the law of the last common
nationality of the spouses would govern

Voidable v. void marriage


Voidable marriage
It can be convalidated either
by free cohabitation or
prescription
The same property regime
as in a valid marriage is
established between the
spouses
The children are legitimate if
conceived before the decree
of annulment

legal effects
Void marriage
It cannot be convalidated
The only property
relationship between the
parties is a co-ownership
The children are illegitimate,
except children of void
marriages under Art. 36 and
53 of FC
Art. 36 children born

Lesley Claudio (A 2012)

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Comprehensive reviewer of Sempio-Diy book


under marriage that is void
on the ground of psy.
Incapacity

The marriage cannot be


attacked collaterally
The marriage can no longer
be impugned after the death
of the spouses

Art. 53 children born of


the first marriage of parties
before said first marriage
had been annulled or
declared void, and those
who marry a second time
without delivering the
presumptive legitime of the
children of their first
marriage
The marriage may be
attacked directly or
collaterally
The marriage can still be
impugned even after the
death of the spouses

Conflicts rules on annulment and declaration of nullity


of marriage
1. In Conflict of Laws, the grounds for annulment of
marriage and for declaration of nullity of marriage
are the grounds provided for by the law alleged to
have been violated lex loci celebrationis or the
law of the place where the marriage was celebrated
Reason: Considering that it is the lex loci
celebrationis that is usually applied to
determine whether a marriage is valid or
not, it is the same law that also
determines whether a marriage is voidable
or void
2. As for declaration of nullity of marriage between
two Filipinos abroad, the grounds are the
exceptions to the lex loci celebrationis in Article 26
of the Family Code:
(1) Either or both parties did not have legal
capacity to get married (Art. 35 (1))
(2) The marriage is immoral for being
bigamous or polygamous (Art. 35 (4))
(3) Consent of one party is lacking, because
of mistake as to the identity of the other
(Art. 35 (5))
(4) One of the parties was psychologically
incapacitated at the time of the marriage
to comply with the essential marital
obligations (Art. 36)
(5) The marriage is incestuous (Art. 37)
(6) The marriage is void by reason of public
policy (Art. 38)
3. As to foreigners who get married abroad the
exceptions to the lex loci celebrationis would be the
same as those in marriages as a contract:
(1) Marriages that are highly immoral
(2) Universally incestuous marriages
4. Consular marriages either the national law or the
law of the domicile of the parties applies
Courts that have jurisdiction over cases for
annulment or declaration of nullity of marriage
1. In the Philippines since we follow the nationality
theory, our courts have jurisdiction
Citizens and domiciliaries can file in the
Philippines, even if the defendant is a nonresident
2. In other countries it is usually the courts of the
parties domicile who have jurisdiction over such
Lesley Claudio (A 2012)

cases since that is the place which has the greatest


interest in the domestic relations of the spouses
Rules on the validity of foreign divorces by foreigners
abroad
1. Hague Convention states that a foreign divorce will
be recognized in the contracting states if, at the
date of the filing of the proceedings:
(1) The petitioner or respondent had his or
her habitual residence in the state where
the divorce was obtained
(2) If both spouses were nationals of said
state
(3) Although the petitioner was a national of
another country, he or she had his or her
residence in the place where the divorce
was obtained
2. In the US, a state has a duty to recognize a divorce
obtained in a sister state if the spouses were
domiciled in the latter state
3. A divorce obtained in a foreign country would be
recognized under the same circumstances that a
divorce obtained from a sister state is given
recognition
4. in the Philippines, if both spouses are aliens, we
recognize a decree of divorce obtained by them
abroad if valid under their national law
5. If one of the spouses is a Filipino and the other an
alien, we also recognize the divorce obtained by
the alien spouse abroad
Legal separation v. divorce
Legal separation
Relative divorce, only a
separation from bed and
board but the parties remain
married

Divorce
Absolute divorce, dissolves
the marriage and the parties
can marry again

Legal separation v. annulment of marriage


Legal separation
Annulment
Marriage is not defective
Marriage is defective
Grounds arise after the
Grounds must exist at the
marriage
time of or before the
celebration of the marriage
Parties are still married to
Marriage is set aside
each other
Grounds are those given by
Grounds are those given by
the national law or the
the lex loci celebrationis
domiciliary law question is
subject to certain exceptions
one of status
questions the very
existence of status
Conflict rules on legal separation
1. If the parties are of the same nationality grounds
for legal separation are those given by their
personal law (national law or domiciliary law)
2. If the parties are of different nationalities
grounds for legal separation are those under both
the personal law of the husband and wife
Courts that may grant legal separation
1. Jurisdiction in the case of aliens is not assumed by
the forum unless the national law of the parties is
willing to recognize its jurisdiction
2. In the Philippines, foreigners may ask for legal
separation here, even if they did not get married in
this country. What is important is that the court
has jurisdiction over both parties

Page 12 of 22

Conflict of Laws
3.

Comprehensive reviewer of Sempio-Diy book

Most countries assume jurisdiction over case for


legal separation on the basis of the domicile of one
of the parties or the matrimonial domicile

Note: It is NOT necessary that the cause for legal


separation take place in the country for our courts to
have jurisdiction over the case.
Grounds for legal separation under Philippine internal
law (Article 55, FC)
1. Repeated physical violence or grossly abusive
conduct against the petitioner, a common child, or
a child of the petitioner
2. Physical violence or moral pressure to compel the
petitioner to change religious or political affiliation
3. Attempt to corrupt or induce the petitioner, a
common child, or a child of the petitioner, to
engage in prostitution, or connivance in such
corruption or inducement
4. Final judgment sentencing the respondent to
imprisonment of more than 6 years, even if
pardoned
5. Drug addiction or habitual alcoholism of the
respondent
6. Contracting by the respondent of a subsequent
bigamous marriage, whether in the Philippines or
abroad
7. Lesbianism or homosexuality of the respondent
8. Sexual infidelity or perversion
9. Attempt by the respondent against the life of the
petitioner
10. Abandonment of petitioner by respondent without
justifiable cause for more than one year
Defenses to legal separation under Philippine internal
law (Article 56, FC)
1. Condonation of the offense or the act complained
of
2. Consent of the aggrieved party to the commission
of the act or offense complained of
3. Connivance between the parties in the commission
of the offense or act constituting the ground for
legal separation
4. Where both parties have given ground for legal
separation
5. Collusion between the parties to obtain legal
separation
6. Prescription
Note: The prescriptive period for filing of an action for legal
separation in the Philippines is 5 years from the time of the
occurrence of the case (Art. 57, FC)
Chapter 13
Status of Children
Conflict rules in determining legitimacy of children
1. If the parents are of the same nationality their
common personal law (national law or law of
domicile) will be applied
2. If the parents are of different nationalities
personal law of the father governs
Legitimate and illegitimate children under Philippine
internal law
1. Legitimate children children conceived or born
during the marriage of the parents

Lesley Claudio (A 2012)

2.

Illegitimate children children conceived and born


outside a valid marriage
EX: Children born of void marriages under
Article 36 (psychological incapacity) and
Article 53 (those born of the first marriage
of parties before said first marriage had
been annulled or declared void, and who
marry a second time without delivering
the presumptive legitime of the children of
their first marriage are considered
LEGITIMATE CHILDREN

Law governing the rights and duties between parent


and child
1. If the child is legitimate either the common
personal law of the parents or the personal law of
the father if the parents are of different
nationalities governs
2. If the child is illegitimate The personal law of the
mother is decisive, UNLESS the child is
subsequently recognized by the father, in which
case the rules on legitimate children will be applied
Doctrine of immutability of status
The status of a child (whether legitimate or illegitimate) is
not affected by a subsequent change of nationality of the
parents
But the rights an duties of parent and child would
after the parents change of nationality, be
governed by the new national law of the parents
Legitimation, defined
A process whereby children who in fact were not born in
lawful wedlock and should therefore be ordinarily considered
illegitimate children are by fiction of law and upon
compliance with certain legal requirements, regarded by law
as legitimate, it being supposed that they were born after
their parents had already been validly married.
Conflicts rules on legitimation of children
1. The requisites of legitimation are generally
considered those prescribed by the national law of
the parents, and if the latter have different national
laws, the national law of the father
2. In countries following the domiciliary theory, law of
the domicile of the parents, or in proper cases, the
law of the domicile of the father should govern
Philippine internal law on legitimation of children
(Articles 177-182, FC)
Requisites for legitimated children
1. The child was conceived AND born outside lawful
wedlock
2. The parents at the time of the childs conception,
were not disqualified by any impediment to marry
each other
Note: Legitimation creates a permanent (immutable) status
of the child
Adoption
An act, which establishes a relationship of paternity and
filiation and in so doing, endows the child with legitimate
status

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Conflict of Laws
Law which determines whether the relationship of
adoption has been created or not
1. The childs personal law
2. If the child does not reside in the country of his
citizenship the personal law of the adopter will
govern, or the personal law of the adopter and that
of the child will be applied concurrently
Law which determines the legal effects of adoption
The legal effects of adoption are determined by the same
law that created the relationship of adoption

Adoption by aliens in the Philippines


Under RA 8552 or the Domestic Adoption Act of 1998, aliens
(who are not even former Filipino citizens) can adopt in our
country, provided:
1. The have the same qualifications as those required
of Filipino citizens
2. Their countries have diplomatic relations with our
country
3. They have been living in the Philippines for at least
3 years prior to the filing of the petition for
adoption, and maintain such residence until the
adoption decree is entered
4. The have been certified by their diplomatic or
consular offices or by any appropriate government
agency that they have the legal capacity to adopt
in their own countries and
5. Their government allows the adopted child to enter
their own country as their adopted child
Special aliens who can adopt under RA 8552
1. A former Filipino citizen who seeks to adopt a
relative within the 4th degree of consanguinity or
affinity
2. One who seeks to adopt the legitimate son or
daughter of his or her Filipino spouse
3. One who is married to a Filipino citizen and seeks
to adopt jointly with his or her spouse a relative
within the 4th degree of consanguinity or affinity of
the Filipino spouse
These aliens need not comply with the residency in the
Philippines and they also need not submit a certification that
they have the capacity to adopt from the diplomatic or
consular office of their country in the Philippines or any
other government agency
Note: RA 8552 still requires that the (alien) husband and
wife must jointly adopt. However in cases where the
spouses are legally separated, the husband or the wife can
adopt alone, and the consent of the other spouse to an
adoption filed by one spouse is not necessary
Nature of adoption in Philippine law
1. Adoption proceedings are always judicial an din
rem, i.e., publication is required
2. A mere agreement of adoption between the
adopters and the parents of the child is not a valid
adoption, nor the fact that the child had been
adopted de facto (ampon) by the alleged adopting
parents
3. Neither is mere registration of the child in the civil
registry as the child of the adopter a valid
adoption. This even amounts to the crime of
simulation of birth
Lesley Claudio (A 2012)

Comprehensive reviewer of Sempio-Diy book


4.

The capacity and right of the adopter to file a


petition for adoption are governed by the law in
force at the time the petition is filed, and cannot be
impaired by a new law disqualifying him or her for
adoption

Recognition of a foreign decree of adoption


While there is no provision of law nor jurisprudence
expressly requiring the Philippines to recognize a foreign
decree of adoption, it is believed that under Sec. 48 of Rule
39 of the Rules on Civil Procedure, we can recognize such
foreign decree of adoption provided the foreign court had
jurisdiction to render said decree, and that there is no want
of notice, collusion, extrinsic fraud, or clear mistake of law
or fact leading to the foreign decree of adoption
Does adoption confer on the adopted child the
citizenship of the adopter?
No. Adoption does not confer on the adopted child the
citizenship of the adopter. Adoption is a matter political and
not civil in nature, and the ways in which it should be
conferred are outside the ambit of the Civil Code.
Chapter 14
Wills, succession, and administration of the estate of
deceased persons
Two theories or systems in determining the proper
law for the transmissions of successional rights
1. Unitary or single system only one law
determines transmission of real as well as personal
properties
2. Split or scission system Succession to real
property is governed by the lex situs, while
succession to movable or personal property is
governed by the law of the domicile of the
deceased at the time of his death
Note: In the Philippines, we follow the unitary or single
system, in that Article 16 of the NCC applies the
national law of the deceased, whatever may be the
nature of the property and regardless of the country
where the property is found
Extrinsic v. intrinsic validity
Extrinsic validity
Forms and solemnities of
wills
Deals with the forms and
solemnities in the making of
wills which include:
1. Age and
testamentary
capacity of the
testator
2. Form of the will
(notarial or
holographic) etc

of wills
Intrinsic validity
Substance of wills
Concerns itself with:
1. Order of succession
2. Amount of
successional rights,
and other matters
of substance

Conflicts rules in the Philippines on extrinsic validity


of wills
1. If a Filipino makes a will abroad - he may comply
with the formalities of Philippine law (lex nationalii)
or the lex loci celebrationis (the law of the place
where he was at the time of the execution of the
will) Art. 815, NCC
2. If an alien makes a will abroad - he may comply
with the formalities of his lex nationalii (law of the
Page 14 of 22

Conflict of Laws

3.

4.

country of which he is a citizen, the lex domicilii


(law of his domicile0, or the lex loci celebrationis
If an alien makes a will in the Philippines he may
comply with the formalities of his own country (lex
nationalii) or of Philippine law (lex loci
celebrationis)
Holographic wills must be entirely written, dated,
and signed by the hand of the testator. It is subject
to no other form and may be made in or out of the
Philippines and need not be witnessed (Art. 810,
NCC)

Conflicts rules on joint wills


1. Filipinos cannot make joint wills whether he or
abroad
2. Joint wills made by aliens shall be considered valid
in the Philippines if valid according to their lex
nationalii or lex domicilii or if valid under lex loci
celebrationis
3. Joint wills made by aliens in the Philippines are
void even if valid under their lex nationalii or lex
domicilii in order that our public policy on joint wills
may not be militated against
4. A joint will executed by an alien and a Filipino
citizen abroad will be valid even as to the alien (if
his national law or law of his domicile or lex loci
celebrationis allows it) but void as to the Filipino
Conflicts rules on intrinsic validity of wills
1. lex nationalii in countries that follow the
nationality theory
2. lex domicilii in countries that follow the
domiciliary theory
What governs the intrinsic validity of wills in the
Philippines
The NCC applies the lex nationalii of the decedent
Note: in case of conflict between the nationality
theory and the domiciliary theory, we can treat the
case as one of renvoi so that we can still apply
Philippine law even if the deceased was a citizen of
another country
Conflicts rules if a person dies intestate
1. In civil law countries the national law of the
decased applies
2. In common law countries the lex domicilii of the
deceased at the time of death applies with respect
to personalty, while the lex situs applies with
respect to real property
Conflicts rules on revocation of wills
1. Under Art. 829 of the NCC, a revocation done
outside the Philippines by a person who does not
have his domicile here is valid if done according to:
(1) The law of the place where the will was
made (lex loci celecbrationis) or
(2) The law of his domicile at the time of
revocation (lex domicilii)
Note: ignores the law of the place of
revocation
2. If the revocation is done in the Philippines, it is
valid if made in accordance with the provisions of
our CC
3. If the revocation is done outside the Philippines by
a person who is domiciled here, it is valid if made
in accordance with our law (lex domicilii) or lex loci

Lesley Claudio (A 2012)

Comprehensive reviewer of Sempio-Diy book


actus of the revocation (the place where the
revocation was made)
Probate, defined
Probate is the process of proving before a competent court
the due execution of a will, that the testator was possessed
of testamentary capacity, and the approval by said court of
the will
Conflict rules on probate of wills
1. The allowance of disallowance of a will is
essentially procedural, so that the law of the forum
applies to all procedural matters
2. Art. 838, 1st par: now will shall pass either real
or personal property unless it is proved and
allowed in accordance with the Rules of Court
3. There is no period of prescription for the probate of
a will
4. Wills proved and allowed in a foreign country
according to the laws of each country may be
allowed, filed, and recorded by the proper court in
the Philippines
5. Although a foreign will had already been probated
in a foreign country, it still has to be reprobated in
the Philippines in accordance with our procedural
law it is sufficient to ask for the enforcement of
the foreign judgment of the probate abroad
6. The evidence necessary for the probate or
allowance of wills which have been probated
outside the Philippines are:
(1) The due execution of the will in
accordance with the foreign law because
we cannot take judicial notice of foreign
laws
(2) The testator had his domicile in the
foreign country where the will was
probated
(3) The will had been admitted to probate in
said country
(4) The foreign tribunal is a probate court
(5) The laws of the foreign country on
procedure and allowance of wills were
followed
Administration of estate of deceased persons
Administration is the process of determining and realizing
the assets of a deceased person, the payment of the debts
of the estate, and the actual distribution of the residue to
the heirs
Conflicts rules on administration of estate of
deceased by persons
1. Administration is procedural in nature. It is the lex
fori that governs not the law that determines how
the estate of the deceased is to be distributed
2. In charge of the administration is the executor or
an administrator with a will annexed or an
administrator
Executor
Appointed by
testator in
his will

Administrator
with a will
annexed
Appointed by
the court if
there is a will
but no executed
is designated
therein

Administrator
Appointed by
the court if
there is no will

Page 15 of 22

Conflict of Laws
3.

4.

5.

Comprehensive reviewer of Sempio-Diy book

The executor is qualified, and the administrator of


the estate is appointed, by the court of the country
where the deceased was domiciled at the time of
his death, or if he was a non-domiciliary, the
country where his properties are found
The rights, powers, and duties of the executor or
administrator are coextensive with the territorial
jurisdiction of the court that qualified or appointed
him
Principal domiciliary administration v. ancillary
administration
Principal domiciliary
administration
Administration granted
in the country of the
deceaseds last domicile

6.

Ancillary
administration
Administration in other
countries where the
deceased also left
properties

The domiciliary administrator of the estate of a


deceased American citizen in the US has no power
over and is not entitled to the possession of the
stock certificates of shares of stock by the
deceased in a Philippine corporation, which
certificates must be delivered to the ancillary
administrator

Caduciary rights of state in Conflict of Laws


There are two theories adopted by different states so that
they may claim the properties left by a deceased who left
no heirs and no will:
1. Some countries adopt the theory that such
properties have become ownerless (bona vacantia)
hence they should revert to the State where they
are situated by escheat
properties pass to the State as an incident of
sovereignty, not as an heir
2. In the Philippines and some civil law countries
the theory adopted is that the State is the last heir
of a deceased person. Hence, the State succeeds
to the properties left by said deceased as an heir.

Chapter 15
PROPERTY
Conflict rules on real property and personal property
GR: lex situs/ lex re sitae law of the place where the
property is located
Old rule on law on personal property/movables Mobilia sequuntur personam
Personal effects or belongings of owner carried with him
wherever he went.
Given artificial status since did not have fixed status
personal law of the owner
Philippine rule on personal properties
Art. 15 of the CC real property as well as personal
property is subject to the law of the country where it is
situated
Matters governed by lex situs with respect to real
property
1. Extrinsic validity
2. Intrinsic validity
3. Capacity of contracting parties
4. Interpretation of documents
Lesley Claudio (A 2012)

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Effects of ownership
Co-ownership
Accession
Usufruct
Lease
Easement
Quieting of title
Registration
Prescription
Police power
Eminent domain
Taxation

Exceptions to the rule on lex situs with respect to real


properties
1. Succession governed by national law (in
Philippines) not lex situs
2. Contracts involving real property but do not deal
with title or real rights over the property, the issue
being the contractual rights and liabilities of parties
governed by the proper law of the contract (lex
loci voluntatis or lex loci intentionis)
3. In contracts where real property is given as
security by way of mortgage to secure a principle
contract (i.e. loan) loan is governed by the
proper law of the contract which the mortgage is
governed by the lex situs
4. While the validity of the transfer of land must be
determined by the lex situs, the validity of the
contract to transfer is determined by the proper
law of the contract
Rules in giving constructive situs to choses in
possession that are usually in motion
VESSELS
Public vessel
Law of the flag
Private or commercial
Law of the country or
vessel
place of registry
If vessel is docked at a
Said port is deemed as its
foreign port
temporary situs
GOODS IN TRANSIT
As to liability for loss,
Law of destination (Art.
destruction, or
1734, CC)
deterioration of goods
in transit
The validity and effect
Law of the place where
of seizure of goods in
the goods were seized
transit
(temporary situs)
Disposition or
Proper law of the contract
alienation of goods in
(lex loci voluntatis or lex
transit
loci intentionis)
Rules in giving constructive situs to intangible
personal properties or choses in action
CREDITS OR DEBTS
Involuntary transfer of
The situs of the place
assignment of a debt
where the debtor may be
(garnishment)
served (usually his
domicile)
The proper law of the
contract (the proper law of
the original transaction
out of which the chose in
action or credit arose)

Voluntary assignment

Other theories:
1. The law of the
place where the
Page 16 of 22

Conflict of Laws
or transfer of credit

Situs of a debt for


taxation purposes
Administering debts

Comprehensive reviewer of Sempio-Diy book


assignment is
executed
2. The law of the
place where
performance or
payment is
normally
expected
3. The national law
of the parties
Domicile of creditor

Situs is the place where


the assets of the debtor
are situated
NEGOTIABLE INSTRUMENTS
The law that
Law governing rights
determines whether
embodied in the
the instrument is
instrument
negotiable or not
Note: American
Restatement claims that
the situs is the place
where the instrument was
executed
The law that
The law of the situs of the
determines the validity
instrument at the time of
of the transfer,
transfer, delivery, or
delivery, or negotiation
negotiation
of the negotiable
instrument
SHARES OF STOCKS OF CORPORATIONS
Sale of shares of stocks
Law of the place of
incorporation since
transfer is recorded in the
books of the corporation
Sale of corporate
Governed by the proper
shares as between the
law of the contract (lex
parties
loci voluntatis or lex loci
intentionis)
Taxation on dividends
Law of the place of
received by corporate
incorporation
shares
FRANCHISES
Franchises
Law of the state that
- special privileges
granted them
conferred by the
government on an
individual or corporation
Goodwill of a business
Goodwill of business
Good will of business and
taxation thereon are
-Art. 521, NCC: property
governed by the law of the
and may be transferred
place where the business
together with the right to
is carried on
use the name under which
the business is conducted
Goodwill
-The patronage of any
established trade or
business
Patents, copyrights, trademarks, trade names,
and service marks
Patents, copyrights,
GR: in the absence of a
trade marks, trade
treaty, protected only by
names
the state that granted or
recognized them
Lesley Claudio (A 2012)

Art. 520, NCC: a trade


mark or a trade name duly
registered in the proper
government bureau or
office is owned by and
pertains to the person,
corporation, or firm
registering the same,
subject to the provisions
of special laws
Intellectual property
Code: Any foreign
corporation being a
national or domiciliary o a
country which is a party to
a convention, treaty, or
agreement related to
intellectual property rights
to which the Philippines is
also a party or which
extends reciprocal rights
to our nationals by law,
shall be entitled to the
benefits to the extent
necessary to give effect to
any provision of such
convention.
- Foreign corporation even
if not engaged in business
in the Philippines may
nevertheless bring a civil
or administrative action,
for opposition,
cancellation, infringement,
or unfair competition.

Chapter 16
CONTRACTS
Contract, defined
Art. 1305, NCC: Meeting of minds between two persons
whereby one binds himself, with respect to the other, to
give something or to render some service.
The specific subject of contract in Conflict of Laws
is limited to purely civil or commercial transactions.
Conflicts rules in determining extrinsic validity of
contracts
GR: the extrinsic validity of contracts is governed by the lex
loci celebrationis/ lex loci contractus
Variations to the rule of lex loci intentions in
determining extrinsic validity of contracts
1. A contract entered into by parties in two different
countries by cablegram, telex, or fax
Art. 1319 par. 2: Acceptance made by
letter or telegram does not bind the
offeror except from the time it came to his
knowledge. The contract in such a case is
presumed to have been entered in the
place where the offer was made
American law: contract is deemed
entered into in the place where the
acceptance of the offer is posted or mailed
Page 17 of 22

Conflict of Laws
2.

3.

Place of execution was merely casual or accidental


The law which has the most significant
relationship to the transaction should be
applied
(EX) When the lex loci contractus/lex loci
celebrationis contravenes an established and
important policy of the forum, or to apply it would
work gross injustice to the people of the forum, or
if the transaction is contra bonos mores

Conflict rules in determining capacity of parties to a


contract
GR: Capacity to enter into contracts is generally governed
by the personal law of the parties
In Phil., Art. 15 NCC: Capacity of a Filipino is
governed by Philippine law (nationality theory)

Comprehensive reviewer of Sempio-Diy book

6.
7.
8.

Minor details: time of payment, etc.


should be governed by the law of
performance
Parties cannot stipulate on the jurisdiction of the
courts our oust or courts jurisdiction
The parties cannot contract away applicable
provisions of law
American law recognizes cognovit clauses if the
parties were of equal bargaining power and debtor
and the debtor voluntarily agreed to said clause
Cognovit clauses: specify which courts
would have jurisdiction in case of breach
or default in payment, or it may waive
debtors right to notice (confession of
judgment)

EX: Contracts involving alienation or encumbrance of


property both real and personal capacity is governed by
the lex situs
Conflict rules in determining intrinsic validity of
contracts
1. GR: Intrinsic Validity of contracts is governed by
the proper law of the contract lex loci voluntatis
or lex loci intentionis
2. American Law (Second Restatement):
(1) law to be applied should be the law
chosen by the parties
(2) If none, the law of the state which has the
most significant relationship to the parties
or to the transaction
3. Prof. Raleigh Minor advocates application of
different laws:
(1) As to the perfection of contract: lex loci
celebrationis
(2) As to the validity of the consideration
lex loci considerationis
(3) As to questions of performance lex loci
solutionis

Barter, sale,
donation
Lease of
property:
creates real
rights
Lease of
property:
does not
create real
rights
Pledge,
chattel
mortgage,
real estate
mortgage,
antichresis
Contract of
loan: mutuum

Lex situs

Capacity
of
parties
Lex situs

Lex situs

Lex situs

Lex situs

Lex loci
celebrationis

Personal
law of
the
parties

Lex
voluntatis
or lex loci
intentionis

Lex situs

Lex situs

Lex situs

Lex loci
celebrationis

Philippine conflict rules on intrinsic validity of


contracts
1. We have no specific provision of law applicable to
conflict rules on the intrinsic validity of contracts
However the policy of our law is to give
effect to the intention of the parties
2. We should apply the proper law of the contract (lex
loci voluntatis (express) or lex loci intentionis
(implied)

Contract of
loan:
commodatum
Lease of
service,
agency,
guaranty,
suretyship

Lex situs

Personal
law of
the
parties
Lex stius

Lex loci
voluntatis
or lex loci
intentionis
Lex situs

Lex loci
celebrationis

Personal
law of
parties

Lex loci
volntatis
or lex loci
intentionis

Lex loci
celebrationis

Personal
law of
parties

Lex loci
voluntatis

Limitations to the courts choice of law in determining


the intrinsic validity of contracts
1. Generally, the parties cannot select a law that has
no connection at all with the transaction
2. If the law selected should change, it is the new law
that should be applied
EX: Change of new law is so revolutionary
that it could never have been
contemplated by parties
3. Several laws may be selected, each of which will
govern the different elements of the transaction
4. If under the selected law, the contract is legal but
in the place of performance, it is illegal, the
selected law should prevail (valid contract)
5. Questions of substantial and essential validity
(void, valid, voidable) of the contracts should be
governed by the proper law of the contracts

Lesley Claudio (A 2012)

Extrinsic
validity

Intrinsic
validity
Lex situs

Note: Agency
to alienate or
encumber real
property is
governed by lex
situs

Page 18 of 22

Conflict of Laws

Comprehensive reviewer of Sempio-Diy book


Liability for loss, destruction,
deterioration of goods in transit: law
of destination of goods (Art. 1753,
NCC)
If COGSA applies, limiation on liability
applies, unless the shipper declares
value of goods and inserts such
declaration in the bill of lading

Contract of
transportation
or carriage
(render
services)

Contract for air transportation


(Warsaw Convention)
1. The liability of the airline in case
of death, injury to passengers,
or loss or damage to cargo is
governed by Warsaw Convention
2. If there was malice, gross
negligence, or bad faith, or
improper discrimination, carrier
is liable for damages beyond
those limited by Warsaw
Convention

3.

Modern theories in determining liability for torts


1. State of the most significant relationship the
rights and obligations of parties in a case of tort is
determined by the local law of the state which,
with respect to the particular issue, has the most
significant relationship to the occurrence and the
parties
2.

The interest-analysis approach This approach


considers the relevant concerns that two or more
states may have in the case and their respective
interests in applying their laws to it
If however, the case poses a real conflict
between two or more States, if the
interested forum finds that he other State
has a greater claim in the application of its
law to a given case, the forum should
yield and apply the law of the other state.
If the forum is disinterested in the case, it
can dismiss the same on the ground of
forum non conveniens
In short, the state which has the more
relevant and weighty interests in the case
should be considered the locus delicti

3.

Qavers principle of preference Under this


theory, a higher standard of conduct and financial
protection given to the injured party by one state is
applied by the State where the injury happened, if
the latter state adopts a lower standard of conduct
and financial protection to the injured

Note: if contracts involve encumbrances of property,


real or personal, apply lex situs. If personal contracts,
law on contracts will apply
Chapter 17
TORTS
Tort, defined
Legal wrong committed upon person or property
independent of contract
Spanish law: quasi delict/culpa aquiliana fault or
negligence
American law: broader fault or negligence and
also those committed with malice or willful intent
Concept of tort in the Philippines
Blending of both Spanish and American laws
Art. 20 NCC: Every person who, contrary to law,
willfully or negligently causes damage to another,
shall indemnify the latter for the same.
Art. 2176 NCC: Whoever by act or omission
causes damage to another, there being fault or
negligence, is obliged to pay for the damage done.
Such fault or negligence, if there is no pre-existing
contractual relation between the parties, is called a
quasi-delict and is governed by the provisions of
this Chapter.
Law governing liability for torts in Conflict of Laws
Liability for torts in general is governed by the lex loci delicti
commissi (law of the place where the delict or wrong was
committed)
State where the social disturbance occurred has
the primary duty to redress the wrong and
determine the effects of the injury; and
To compensate victim for the damage or injury
suffered
Three theories in determining locus delicti
1. Civil law theory The locus delicti is the place
where the act began
2. Common law theory The locus delicti is the
place where the wrongful act became effective

Lesley Claudio (A 2012)

Theory of Dr. Rabel The locus delicti is the


place which has the most substantial connection
with the wrongful act

Conflict rules on maritime torts


1. If the tort is committed abroad a public vessel,
whether on the high seas or in foreign territorial
waters, the law of the flag is the lex loci delicti
commissii
2. If the tort is committed aboard a private or
merchant vessel on the high seas, the law of the
registry is the lex loci delicti commissii
3. If two vessels collide and are from the same state,
the law of registry is the lex loci delicti commissii
4. If the vessels come from different states with
identical laws, apply said identical laws
5. If the vessels come from different states with
different laws, the lex loci delicti commissii is the
general maritime law as understood and applied by
the forum where the cas eis filed
Foreign tort to be actionable/subject of an action for
damages in the Philippines Requisites/Conditions
1. Must acquire jurisdiction over the defendant (action
for damages is action in personam)
2. Foreign tort must not be penal in character
3. The enforcement of the tortuous liability should not
contravene our public policy
4. Our judicial machinery must be adequate for such
enforcement
Note: all procedural matters are governed
by the lex fori Phil law).
Substantive matters are governed by the
lex loci delicti commissii, thus:
(1) Period of prescription of the
action is governed by lex loci
delecti commissii because in
Page 19 of 22

Conflict of Laws

Comprehensive reviewer of Sempio-Diy book


Philippine law, prescription is
substantive not procedural
(2) Proper parties, measure of
damages, and the question
whether the acts complained of
is considered the proximate
cause of the injury are
governed by the lex loci delicti
commissii
(3) The burden of proof and
defenses that may be
interposed by defendant are
also governed by lex loci delicti
commissii

Chapter 18
CRIMES
Tort v. Crime
Tort

Crime
Both are wrongs
Violates private rights
Committed against state
Instituted by injured person
Prosecuted in the name of
against wrongdoer in civil
the State against the
case, the purpose of which
offender in criminal actions
is indemnification for
for the purpose which are
damages suffered
protection and vindication of
interests of the public as a
whole, punishment of the
offender, the reformation of
offender, or to deter others
from committing the same
act
Transitory in character
Local in character and can
tortfeasor can be made
be prosecuted only in the
liable for his wrongful act in
place or states where the
any jurisdiction where he
crimes are committed
may be found
Note: The determination of whether a wrongful act is a tort
or crime depends on the characterization of the act in the
state where said act is committed
Different theories that determine whether a state or a
legal system has jurisdiction to take cognizance of
criminal cases
Under this theory, the state
where the crime was
Territorial theory
committed has jurisdiction to
try the case, and its penal
code and the penalties
described therein will apply
Subjective territorial
principle
The state where the crime
was begun may prosecute
the same, even if it was
completed in another state
Objective territorial
principle
The state can prosecute
crimes began abroad but
completed within its territory
The country of which the
criminal is a citizen or
Lesley Claudio (A 2012)

Nationality or personal
theory

Protective theory

Real or eclectic theory

Cosmopolitan or
universality theory

Passive personality or
passive nationality theory

subject has jurisdiction to


try him for crimes allegedly
committed by him, whether
inside or outside its territory,
provided it is a crime under
said countrys penal law
Any state whose national
interests may be jeopardized
has jurisdiction over criminal
offenses, even if it is
committed outside its
territory and even if
committed by an alien
Any state whose penal code
has been transgressed upon
has jurisdiction, whether the
crime was committed inside
or outside its own territory
Any state where the criminal
is found or which has
obtained custody over him
can try him, unless
extradition applies
The state of which the victim
is a victim or subject has
jurisdiction to prosecute the
offense

Note: In the Philippines, we follow as a GENERAL RULE the


territorial theory, and by way of EXCEPTION, the protective
theory
Cases where we follow the protective theory
Art. 2, RPC: Except as provided in the treaties and laws of
preferential application, the provisions of this Code shall be
enforced not only within the Philippine Archipelago,
including its atmosphere, its interior waters and maritime
zone, but also outside of its jurisdiction, against those who:
1. Should commit an offense while on a Philippine
ship or airship;
2. Should forge or counterfeit any coin or currency
note of the Philippine Islands or obligations and
securities issued by the Government of the
Philippine Islands;
3. Should be liable for acts connected with the
introduction into these islands of the obligations
and securities mentioned in the preceding number;
4. While being public officers or employees, should
commit an offense in the exercise of their
functions; or
5. Should commit any of the crimes against national
security and the law of nations
Jurisdiction over crimes committed on board a foreign
vessel if said vessel is within territorial waters
English Rule
French Rule
Emphasizes territorial
Emphasizes nationality
principle
theory
The territory where the
The State whose flag is
crime was committed will
flown by the vessel has
have jurisdiction EXCEPT:
jurisdiction EXCEPT
1. In matters relating
if the crime affects the
to internal order
peace, order, security, and
and disciple of the
safety of the territory
vessel and
2. Those which affect
solely the ship and
its occupants such

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Conflict of Laws
as minor or petty
criminal offenses
committed
Note: Under Art. 27 of UNCLOS, Philippine courts do not
acquire jurisdiction over crimes committed on board a
vessel even if it is within our territorial waters as long as the
effect of such crime does not disturb our peace and order.
This is similar to the French rule.

Chapter 19
BUSINESS ASSOCIATIONS
Corporation, defined
Sec. 2 of Corporation Code: An artificial being created by
operation of law, having the right of succession and the
powers, attributes, and properties expressly authorized by
law or incident to its existence
Foreign corporation, defined
Sec. 123 of Corporation Code: One formed, organized, or
existing under any laws other than those of the Philippines
and whose laws allow Filipino citizens and corporations to do
business in its own country or state

Theories in determining the personal law or


governing law of a corporation
1. The theory that the personal law is the law of the
place of incorporation
2. The theory of the place or center of management
3. The theory of the place of exploitation
Note: In the Philippines, we follow the theory of the place of
incorporation
Domicile of a corporation
Art. 51 of NCC: When the law creating or recognizing them,
or any other provision does not fix the domicile of judicial
persons, the same shall be understood to be the place
where their legal representation is established or where
they exercise their legal functions
Under Corporation Code, the place of incorporation
of a Philippine corporation is also its domicile
As for a foreign corporation that has been granted
a license to operate or to do business in the
Philippines, it acquires domicile in this country by
virtue of said license
Exceptions to the theory that the personal law or the
nationality of a corporation follows the place of its
incorporation
1. For constitutional purposes even if a corporation
was incorporated in the Philippines, it cannot
exploit or develop our natural resources nor
operate public utilities unless 60% of the capital is
Filipino owned (Constitution)
2. For wartime purposes We adopt the control test
we pierce the veil of corporate identity and go
into the nationality of the controlling stockholders
to determine whether a corporation is an enemy
corporation
Matters that are governed by the personal law of the
corporation
1. Requisites for the formation of the corporation
Lesley Claudio (A 2012)

Comprehensive reviewer of Sempio-Diy book


2.
3.
4.
5.
6.

Required number of incorporators and the


members of the board of directors
The kinds of shares of stock allowed
The transfer of stocks
The issuance, amount, and legality of dividends
The powers and duties of the officers, stockholders,
and members

Law that determines the validity of corporate acts and


contracts
Determined by the place of incorporation AND by the law of
the place of performance
May a foreign corporation sue and be sued in the
Philippines?
Yes, if it has the necessary license to do business in the
Philippines. The license is required not to forbid the foreign
corporation from performing single acts but to prevent it
from acquiring a domicile for purposes of business without
taking the steps necessary to render it amenable to suit in
the local courts
Jurisdiction over foreign corporations doing business
in the Philippines, how acquired
By service of summons on:
1. Its resident agent
2. If no such agent, on the government official
designated by law to that effect; or
3. On any of its officers or agents within the
Philippines (Rules of Court)
Status of a contract of a foreign corporation who
transacts business here without the necessary license
Unenforceable, but the person who contracted with the
corporation may be in estoppel if he had received benefits
from contract
Instances when a foreign corporation not doing
business in the Philippines can sue in Philippine
courts
1. Isolated transactions
2. To protect its reputation, corporate name, and
goodwill
3. For infringement of trademark or trade name
Law that applies to multinational or transnational
corporations
These are actual branches of big mother corporations. The
branches having incorporated in the states where they are
established are governed by the internal law of said states,
and their personal laws are the local laws of host states
Partnership
A partnership exists when two or more persons bind
themselves to contribute to money, property, or industry to
a common fund, with the intention of dividing the profits
among themselves (Art. 1767, NCC)
A partnership, like a corporation, has a juridical
personality separate and distinct from that of each
of the partners
Personal or governing law of a partnership
Law of the country where it is created
Domicile of a partnership
Art. 51 of NCC: The place where their legal representation is
established or where they exercise their principal functions

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Conflict of Laws

Comprehensive reviewer of Sempio-Diy book


(a)

Chapter 20
RECOGNITION AND ENFORCEMENT OF FOREIGN
JUDGMENTS
Enforcement v. recognition
Enforcement of foreign
judgment
Means that the plaintiff or
petitioner wants the court to
positively carry out and
make effective the foreign
judgment
Implies an act of
sovereignty
Requires separate action or
proceeding brought precisely
to make foreign judgment
effective

Enforcement cannot exist


without recognition

Recognition of foreign
judgment
Means that eh defendant or
respondent is presenting the
foreign judgment on the
basis of res judicata

In case of a judgment or final


order upon a specific thing, the judgment or final
order is conclusive upon the title to the thing and
(b)
In case of a judgment or final
order against a person, the judgment or final
order is presumptive evidence of a right as
between the parties and their successors in
interest by a subsequent title
In either case, the judgment or final order may be repelled
by evidence of a want of jurisdiction, want of notice to the
party, collusion, fraud, or clear mistake of law or fact.

Involves merely a sense of


justice
Being a matter of defense,
recognition needs no action
or proceeding but implies
that an action or proceeding
has already been filed
against the defendant who is
invoking the foreign
judgment
Recognition does not need
or does not require
enforcement

Reasons why a local court in the Philippines may


refuse to recognize or enforce a foreign judgment
1. The requisite proof of the foreign judgment may
not have been presented
The manner of proving a foreign judgment
is the same as proving a foreign law
2. The foreign judgment may contravene a recognized
and established policy in our country
3. The administration of justice in the country where
the judgment came from may be shockingly
corrupt or not beyond reproach
Conditions or requirements before a local court in the
Philippines can enforce or recognize a foreign
judgment
1. There must be adequate proof of the foreign
judgment
2. The judgment must be on a civil or commercial
matter, not on a criminal, revenue, or
administrative matter
3. There must be NO:
(1) Lack of jurisdiction
(2) Want of notice
(3) Collusion
(4) Clear mistake of law or fact
4. The foreign judgment must not contravene a sound
and established public policy of the forum
5. The judgment must be res judicata:
(1) The judgment must be final
(2) Foreign court must have jurisdiction over
subject matter and parties
(3) The judgment must be on the merits; and
(4) There was identity of parties, subject
matter, and cause of action
Effects of foreign judgments in the Philippines under
Rules of Court
Sec. 48, Rule 39, 1997 Rules on Civil Procedure provides:
The effect of foreign judgment or final order of a foreign
country, having jurisdiction to render the judgment or final
order is as follows:
Lesley Claudio (A 2012)

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