The Civil Code (R.A. No.

386) - Tolentino

Introduction:

Concept of Law

● General/Abstract
○ “The science of moral rules, founded on the rational nature of man, which govern
his free activity
○ Set of rules established for governing the relations of persons in society
● Specific/Material
○ Juridical proposition promulgated by the competent organs of the state according
to the Constitution
○ Norm of human conduct in social life established by the state which should be
followed by all
● Foundations of law
○ Product of social life, creation of human nature
○ Regulates the relations of human beings to maintain harmony in the social group
○ Rests upon the concepts of order, coexistence, and liberty
● Characteristics of Law
○ Rule of human conduct
○ Promulgated by competent authority
○ Obligatory
○ Of general observance
● Law and morals
○ Common ethical basis, same source: social conscience
○ Jus - justice: art of being good and fair
○ Law covers social activities or relations of man with his fellows
○ Morals include that to himself and to God
○ Purpose of both: happiness
● General divisions of law
○ Divine Law
■ God himself is the legislator and promulgator of law
○ Human Law
■ Promulgated by man to regulate human relations
■ 1. General/Public Law
● International law (between nations)
● Constitutional law (between humans)
● Administrative law (between officials and govt employees)
● Criminal Law (guarantees coercive power of law)
● Religious law (practice of religion)
■ 2. Individual or private law
● Civil law (relations among individuals for private ends)
 ● Mercantile law (special relations from commercial transactions)
● Procedural law (means for which private rights may be enforced)
● Kinds of Specific Law
○ Mandatory: commands that something be done
○ Prohibitory: commands that something should not be done
○ Permissive: commands that what it permits to be done should be tolerated or
respected
○ Absolute: obligatory
○ Suppletory: leaves the will of the individual free to act
● Code: collection of laws of the same kind; referring to a particular branch of law
○ Why code
■ Simplify and arrange many rules scattered in laws and customs
■ Unify various legislations
■ Introduce reforms
○ Codification started by Napoleon
○ In the Philippines
■ Code committee to formulate civil code
● Civil Law
○ Roman Law
○ Mass of rules which regulate the relations among humans for protecting private
interests
● Sources of Phil Civil Law
○ New civil code
○ Some statutes
○ Spanish and American Law

Preliminary title:​​ special feature of the modern French civil code

Chapter 1: Effect and Application of Laws

Article 1: This act shall be known as the “Civil Code of the Philippines”
- A​ civil code ​is a collection of laws that regulate the private relations of members of civil
society, determining their respective rights and obligations with reference to persons,
things, and civil acts
- Civil code of spain of 1889 ​was in force in the Phils. By royal decree
- Sources of Civil Code:
- 1. The civil code of 1889
- 2. Codes, laws, judicial decisions of countries: Spain, U.S., France, Argentina,
Mexico, england, Italy
- 3. Doctrines laid down by the SC
- 4. Filipino customs and traditions
- 5. Philippine statutes
- 6. Code Commission
 - Foreign element:
- contact with Western culture is a rightful beneficiary of the Roman Law
- Element of American culture and economic relations with them
- Concepts of right and wrong are universal
- BOOKS: I - Persons; II - Property, Ownership, and Its Modifications, III - Different Modes
of Acquiring Ownership; IV - Obligations and Contracts
- ENGLISH language
- While the form is in English, the substance is in Spanish and Filipino
- Merely translated into English

Article 2: Laws shall take effect after fifteen days following the completion of their
publication in the Official Gazette, or any newspaper in general circulation, unless
otherwise provided.

- Laws shall take effect after 15 days following publication

- Effectivity: August 30, 1950
- If the statute provides the date of effectivity, no publication is needed before it becomes
effective

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Tanada vs Tuvera
Escolin, J.

Facts:
1. Petitioners seek a writ of mandamus to compel public officials to publish various laws
(PDs, letters of instruction, general orders, EOs, administrative orders) in the Official
Gazette invoking the principle that laws must be published in the OG before they can be
valid and effective.
2. However, the respondents would have the case dismissed, saying that the petitioners
are of no legal standing and have no private interest to be subversed.
3. Petitioners maintain that the subject of petition concerns public right and the object is to
compel the performance of public duty.
4. Respondents contend that publication in the Official Gazette is not a sine qua non
requirement for the effectivity of laws where the laws themselves provide for own
effectivity dates.

Issues:
1. Whether or not publication in the Official Gazette is necessary for laws to be effective
where laws themselves provide for their own effectivity dates.

Held:
 1. Yes. Even if the law provides for the date of effectivity, Article 2 still requires that laws be
published in the Official Gazette. The publication of laws of public nature and general
applicability is mandated by law (Sec1, CA 638). Without publication, people have no
means of knowing what presidential decrees have actually been promulgated. Before a
person may be bound by law, he must first be informed of its contents.

Ruling: ​The court orders respondents to publish in the official gazette all unpublished
presidential issuances which are of general application, and unless published, they shall have
no binding effect.

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Article 3: Ignorance of the law excuses no one from compliance therewith

- It is everyone’s duty to know the law
- Reason: Ignorance will be used for evading the law and justice defeated
- Refers to Phil laws: mandatory and prohibitory laws
- Ignorance of fact is different from ignorance of law
- Ignorance of foreign law is mistake of fact, not of law
- Exceptions
- Show good faith when new law is different from former
- Should not be applied with equal force to minors
- A lawyer cannot be disbarred for an honest mistake or error of law

Article 4: Laws shall have no retroactive effect, unless the contrary is provided
- Retroactive law - intended to affect transactions which occured or rights which were
given before it became operative, and assign to them new effects not inherent in their
nature, in view of the law that was in place at the time of the occurrence
- Related to article 3
- A law that still has not been effective cannot be considered as known to the people.
Because if a subsequent law would be applied to an act that was made under a former
law, then there would be inconsistencies on which law follow.
- All statutes are construed to have prospective operation, unless the law itself declares
that it has a retroactive effect
- Exceptions to retroactive effect:
- 1. When it is expressly provided in the law - unequivocally expressed or
necessarily implied
- Exceptions: 1. When a penal statute will become an ex post fact law
- 2. When the law will impair the obligation of contract
- Penal laws will have retroactive effect as long as they favor the accuse
who is not a habitual criminal
- 2. Remedial statutes
 -
Refer to the method of enforcing rights or of obtaining redress of their
invasion (court procedure may change at any time)
- Made to ensure better administration of justice
- May be applicable to cases that are pending at its enactment
- 3. Curative statutes
- Undertake to correct errors and irregularities
- Operate on laws already existing, and are necessarily retroactive
- 4. Laws interpreting others (Interpreting statutes)
- Intended to clarify doubts or interpret an existing law
- 5. Laws creating new rights
- Laws declaring rights for the first time will effective from the time of such
declaration
- Art. 256: The family code has retroactive effect

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Buyco vs PNB
Paredes, J.

Facts:
1. Petitioner is a holder of Backpay Acknowledgment Certificate No. 4801 amounting to
P22,227.69 payable in 30 years.
2. April 24, 1956: petitioner was indebted to respondent in amount of P5,152.90 plus
interest; petitioner offered to use certificate to pay respondent.
3. July 18, 1956: respondent cannot yet grant due to pendency of decision on Florentino v.
PNB.
4. Feb 15, 1957: after the SC denied respondent’s motion, petitioner reiterated his request.
5. Feb 19, 1957: respondent refused again, citing amendment of its charter via RA 1567
(excluding backpay certificates in acceptance of payments in indebtedness), respondent
did not accept certificate.
6. March 26, 1957: petitioner requested respondent to reconsider
7. April 23, 1957: Legal Dept expressed that they could not accept such certificate because
of the amendment
8. The offer to pay the obligation with the certificate was made before the
amendment.

Issue Hold Ratio

W/N the amendment of NO ● PNB had impliedly admitted the right of the
respondent’s bank charter via petitioner to apply his certificate in payment
RA 1576 can be enacted of his obligation.
retroactively
 ● RA 1576, which excludes backpay certificates as
payments for obligations, does not contain any
provision regarding retroactivity, nor can such be
implied from language

● The present case should be governed by the law at

the time the offer in question was made.

Ruling:

Art. 4, NCC, states that the law looks to the future only, and has no retroactive effect
unless the contrary is provided. RA 1576 does not contain any provision re: retroactivity.
Mandamus is the proper remedy.
● Writ of Mandamus - order from a court to an inferior government office ordering the
official to properly fulfill their duties or correct an abuse in discretion

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Article 5: Acts executed against the provisions of mandatory or prohibitory laws shall be
void, except when the law itself authorizes their validity.
- Violation of these laws renders the act illegal and void
- Statutory provisions are mandatory
- Acts contrary to directory, permissive, or suppletory laws are not nullified by this article
- Exceptions by Manresa:
- The violation does not refer to an essential matter
- Lack of requirements in marriage
- The law may make the validity of the act depend upon the consent of the party
directly involved
- The law may declare nullity, but at the same time recognize its effects as legally
existing
- Children born before a marriage is annulled are considered legitimate

Article 6: Rights may be waived, unless the waiver is contrary to law, public order, public
policy, morals, or good customs, or prejudicial to a third person with a right recognized
by law
- Elements of Rights
- Subject: persons
- Active: entitled to demand the enforcement of the right
- Passive: duty-bound to suffer its enforcement
- Objects: things and services for the satisfaction of human wants
- Efficient cause: fact that gives rise to legal relation bet S and O (will of man)
- Kinds of rights: political (included in the participation in government) and civil (all others)
 - 1. Human rights / rights of personality: protect human personality
- Right to life, to work, to individual liberty
- 2. Family rights: rights of a member of a family
- 3. Patrimonial rights: property rights; tend to economic satisfaction
- Renunciation of waiver - relinquishment of a known right with both knowledge of its
existence and intention to relinquish it
- VOLUNTARY CHOICE is the essence of waiver
- Implied waiver - it may be implied from the ​act ​(clear and unequivocal)​ ​of the party
- Requirements of waiver
- 1. He must have that right
- 2. Capacity to make the renunciation
- 3. Renunciation must be clear and unequivocal
- There must be intent to renounce
- Waiver is applicable to all rights and privileges to which a person is legally entitled
- Laws cannot be renounced but rights arising thereof can be renounced
- Doctrine of estoppel - prevents a party from withdrawing a promise made to a second
party
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RB Michael Press v Galit
J. Velasco, Jr.

Facts:
1. Galit, respondent was an offset machine operator in RB Michael Press, the petitioner,
but he was usually absent and late for work. Despite the respondent’s attitude, he was
not given penalties for his actions. He was asked by the petitioner to work overtime but
he refused to do so.
2. The next day he was told not to work and attend an afternoon hearing, and he was
issued an office memorandum with a warning for dismissal (for tardiness,
insubordination, failure to work overtime, and disrespect) all the same day.
3. The following day, respondent was terminated from employment so he filed a complaint
for illegal dismissal and money claims before the National Labor Relations Commission.
4. He was ordered to be reinstated to his former position and be payed full backwages from
the time he was dismissed.
5. After petitioners filed a Petition for Certiorari, the CA affirmed the decision with
modifications. They asked for reconsideration but was denied by the CA.
ISSUE HELD RATIO
WoN there was just cause YES
to terminate the
employment of respondent,
WoN due process was NO
observed in the dismissal
process
· CA is correct that the charge of serious
misconduct was not subjected. However, the
charge of insubordination (when the
respondent was ordered to work overtime) is
valid.
· Wilful disobedience in the case at bar is valid
cause for dismissal since (a) the facts showed
the respondent’s wrongful and perverse
mental attitude and (b) the order violated is
lawful (based on Art 89 of the Labor Code)
· Under the twin notice and hearing
requirement (due process), the employees for
dismissal must be given 2 notices (1 to inform
employee of his/her fault; 1 to communicate
that his/employment is being terminated) and
a hearing or opportunity to defend himself.
· Although it seemed that petitioners observed
due process, the respondent was not really
given an opportunity to defend himself as the
hearing was done in haste, and he had no
time to prepare evidence on his defense.
 WoN the fact that the
numerous infractions of the
respondent have not been
immediately subjected to
sanctions can be
interpreted as waiver of the
company to impose
company rules
NO · The Labor arbiter ruled that petitioners cannot
use respondent’s habitual tardiness and
unauthorized absences to justify his dismissal
since they had already deducted the
corresponding amounts to his salary; and that
since respondent was not subject to penalty
for previous tardiness, petitioners then had
condoned the offense.
· ​The SC ruled that the mere fact that
respondent’s tardiness was not subject to
penalty cannot be considered as the
company’s waiver of its rights to enforce
company rules. “A waiver is a voluntary
and intentional relinquishment or
abandonment of a known legal right or
privilege.” The management’s prerogative
to impose punishment on an employee is a
legal right which cannot be impliedly
waived. There must be evidence to
demonstrate the company’s waiver.
· ​ Even though deductions on his salary
were made for tardiness, said infractions
can still be used collectively by petitioners
as grounds for dismissal.

CONCLUSION:

The decisions of CA and NLRC are REVERSED and SET ASIDE. The SC declares that
respondent’s dismissal from employment is VALID and LEGAL. However, it was also concluded
that the respondent’s right to due process was violated, hence, petitioners are ordered to pay
nominal damages in the amount of Php 30,000.00.

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Article 7: Laws are repealed only by subsequent ones, and their violation or
non-observance shall not be excused by disuse, custom or practice to the contrary.
When the courts declare a law to be inconsistent with the Constitution, the former
shall be void and the latter shall govern.
Administrative or executive acts, orders, and regulations shall be valid only when
they are not contrary to the laws or the Consti.
 - Repeal; unconstitutionality
- The state promulgates laws and only the state can abrogate its own acts. Statutes may
be repealed, or may unconstitutional. As long as a law remains in the statute books, then
they shall be effective.
- There are laws which cease to have effect because they lapse their own terms
- Rental Law: four years
- Some have limited period of effectivity: Emergency Powers Act
- Two kinds of repeal:
- express or declared - contained in a special provision of a subsequent law;
- implied or tacit - when the provisions of the subsequent law are incompatible or
inconsistent with those of an earlier law; no special declaration in the subsequent
law
- Laws cover the same subject matter; the latter is repugnant to the earlier
- A subsequent general law will not be held to repeal a prior special one, unless there is a
clear and necessary conflict between the two
- Rules on retroactivity govern in repealing an act (no retroactive effect)
- The repeal of a statute cannot affect or impair any vested right, act done, penalty
accrued, or judgement already final
- The criterion for determining the validity of a statute must be sought in the Constitution
itself.
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Puerto vs Court of Appeals

J. Quisumbing

FACTS:
1. Petitioners, Sinfronio and Ezperanza Puerto, mortgaged their house in exchange of a 
Php 200,000 loan payable in one year with no stipulated interest. 
2. Petitioners  however  claimed  that  the  Php  200,000  loan  consisted  of  the  Php  150,000 
valuation  of  property  and  a  hidden  interest  fee  of  Php  50,000,  which  is  not  reflected  in 
the deed of mortgage. 
3. Petitioner received Php 10,000 in advance, Php 70,000 in cashier's check and jewelry 
worth Php 70,000 for a total of Php 150,000 
4. A fraudulent receipt was fabricated to show that Petitioner received Php 30,000 in cash 
and Php 170,000 in jewelry for a total of Php 200,000, to hide the usurious nature of the 
Php 50,000 fixed interest fee. 
5. When the loan matured, Petitioner was unable to repay the Php 200,000 so Respondent 
filed a formal petition for the Petitioner to pay under threat of foreclosure 
6. When petitioners failed to pay, the house was foreclosed and is won, through public 
auction, by the Respondent 
7. Petitioners are allowed to stay in the house and agreed to pay monthly rent of Php 3,000 
to Respondent, but were unable to do so and so month interest was added 
 8. Petitioner filed an action against respondent for declaration of nullity of Deed of Real 
Estate Mortgage, but was dismissed by the trial court 
 
ISSUES: 
1. WON the contract between the parties violated the Usury Law 
2. WON the the bank circular can be applied retroactively to the contract 
 
HELD: 
1. YES
a. At the time of the questioned transaction, Act No. 2655 or Usury Law was in full
force and effect. The maximum rate of interest on a loan secured by mortgage is
12% per annum as required by the Usury Law. The 50,000 was clearly in excess
of that. Therefore, it violated the Usury Law. There is an inequality between
debtor (petitioner) and creditor (respondent) wherein the petitioners may have
been more willing to concede to the respondents’ demands to temporarily save
themselves from financial embarrassment, resulting in the evasion of the usury
law. With the loan being partly in cash and partly in jewelry, it would also be easy
to make the value of jewelry higher than the actual.
2. NO
a. Applying Article 7, Central Bank Circular No. 905 (taking effect on January 1,
1983) removed the ceiling on interest rates for secured and unsecured loans.
The contract was executed in 1972. Usury Law still applies in this case because
regardless of maturity, the circular cannot be made to retroactively apply to a
contract executed earlier when Usury Law was in full effect. 
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Article 8: Judicial decisions applying or interpreting the laws or the Constitution shall
form a part of the legal system of the Philippines
- Jurisprudence cannot create law, but a law established by jurisprudence would be a
judge-made law
- The court’s interpretation of statute become part of the law beginning the date it was
originally passed
- Courts simply do not interpret the law
- They fill the deficiencies of legislation to provide a rule for the facts of the given
case
- Adapt rigid provisions of law to the changing conditions of life and society
- Jurisprudence must be flexible for the equitable application of law
- Doctrine of stare decisis - stipulates the adherence to judicial precedents
- It requires courts to follow the rule established in the decision of the supreme
court
 - The doctrine is also flexible in light of changing circumstances
- Does not apply when there is conflict between law and precedent
- Stare decisis does not apply if it is contrary to law

Article 9: No judge or court shall decline to render judgement by reason of the silence,
obscurity, or insufficiency of the laws.
- Exception: criminal prosecution because if no law punishes an act, the case must be
dismissed
- It is the duty of the court to render a decision on a case
- His ignorance or lack of knowledge regarding a law does not exempt him from his duty
- If the law is vague, it can be clarified with rules of statutory construction
- It is only when all rules of interpretation have been exhausted that the court can create a
rule on the facts and within the juridical order
- Precedents may also serve as basis for a decision
- The court cannot deny to apply a law simply because of his own judgement of that law
- If there is no law, the general or local customs apply
- Custom: result constant and continued uniform practice by members of a social
community
- Requisites of custom:
- Plurality of acts
- Uniformity
- General practice
- Continued performance for long periods of time
- Obligatory
- Must not be contrary to law or public order
- Custom comes from society; law comes from governmental power (origin)
- Custom is spontaneous; law is a conscious creation (form)
- Custom is tacit (manifested in acts); law is express (manifested in official form)
- General rule: apply the custom of the place for the performance of the juridical
act
- The exact notion of what is just and equitable is always the strongest foundation in the
interpretation of law

Article 10: In case of doubt in the interpretation or application of laws, it is presumed that
the lawmaking body intended right and justice to prevail.
- Applied only in case of doubt and when all other rules of interpretation fail
- If the law is clear, it must be applied impartially
- Equity (fairness) is an attribute of justice and there can be no justice if the application of
the law is not made with equity.
- Equity is justice sweetened with mercy
- The purpose is to seek and follow the intention of the legislator rather than the bare legal
provision
Article 11: Customs which are contrary to law, public order or public policy shall not be
countenanced
- The courts will not favor the force of a custom in opposition to positive law

Article 12: A custom must be proved as a fact, according to the rules of evidence
- When the alleged custom is not known to those who have the best means of knowing it
then it is positive evidence for its non-existence

Article 13: When the laws speak of years, months, days, or nights, it shall be understood
that years are of 365 days each, months, of 30 days, days, of 24 hours; and nights from
sunset to sunrise
If the months are designated by their name, they shall be computed by the number
of days which they respectively have.
In computing a period, the first day shall be excluded, and the last day included.
- Year: 365 days
- Months: 30 days
- Days: 24 hours
- Nights: sunset to sunrise
- If months are specified by name, they shall be counted by their respective days
- In computing a period, the first day excluded, the last day included
- Week: period of seven consecutive days (without regard to the calendar)
- REVISED ADMINISTRATIVE CODE OF PH 1987

Article 14: Penal laws and those of public security and safety shall be obligatory to all
those who live or sojourn in the Philippine territory, subject to the principles of
international law and treaty stipulations
- Applicable to aliens
- They owe a local and temporary allegiance to the government of the country where they
are and must therefore obey its rules
- Military character does not affect the jurisdiction of the civil tribunals (US v Sweet)
- Exceptions: 1. Offense is committed by a foreign sovereign in Phil. territory; 2.
Committed by diplomatic representatives; 3. Committed in a public or armed vessel of a
foreign country
- A merchant vessel of one country which enters the port of another, subjects itself to the
laws of the latter so long as it remains within the territorial waters, unlike war vessels
- Exemption by treaty: PH-US Military Bases Agreement
- The PH shall have jurisdiction over all other offenses committed outside the
bases by any member of the Army of the US

Article 15: 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
- Domiciliary theory
 - The personal laws of a person shall be determined by his domicile
- Nationality theory
- Nationality is the basis for determining the personal laws of an individual
- Applied to purely personal relations: marriage, divorce, conjugal partnership, marital
authority
- The status of adoption, created by the law of a state having jurisdiction over it, will
be given the same effect in another state as is given by the latter to the status of
adoption when created by its own law
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Dacasin v. Dacasin
5 February, 2010

FACTS:
1. April 1994 - Petitioner, an American, and Respondent, a Filipina, were married in
Manila.
2. 21 September 1995 - Petitioner and Respondent had a Child, Stephanie .
3. June 1999 - respondent sought Divorce against petitioner from Circuit Court, 19th
Judicial Circuit, Lake County, Illinois; sole custody of Stephanie was awarded to
Respondent, Illinois Circuit court retained jurisdiction for enforcement of Divorce.
4. 28 January 2002 - Both Parties entered into an agreement for joint custody of Stephanie.
Parties agreed that disputes on the agreement would be settled in PH courts
5. 2004: Petitioner sued Respondent to enforce said contract, as Respondent exercised
sole custody over Stephanie .
6. Respondent sought dismissal of the suit over lack of jurisdiction of RTC Branch 60
(Illinois court still retained jurisdiction of the Divorce Decree)
7. RTC sustained Respondent’s motion, case was dismissed for lack of jurisdiction
8. Petitioner sought reconsideration on basis of the Divorce decree being void; motion was
Dismissed

Issues:
1. WON the RTC has jurisdiction over the suit
2. WON the agreement (of joint custody) is enforceable

HELD:
1. YES.
a. Jurisdiction depends on subject matter of the motion
b. RTC has exclusive jurisdiction on civil actions “incapable of pecuniary (relating to
money) estimation”
c. Illinois court has jurisdiction to enforce the Divorce, not the Agreement in
question
2. NO
 a. The agreement is contradictory to PH law that “No child under 7 years of age
shall be separated from the mother…” -Art. 213, Par. 2, Family Code of the
Philippines
b. At the time of the agreement, Child was under 7 years old
c. Divorce was still in effect, as ruling is just as valid in the US as it is in the PH

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Article 16: Real property as well as personal property is subject to the law of the country
where it is situated.
However, intestate and testamentary successions, both with respect to the order
of succession and to the amount of successional rights and the intrinsic validity of the
testamentary provisions, shall be regulated by the national law of the person whose
succession is under consideration, whatever may be the nature of the property and
regardless of the country wherein said property may be found.
- Property is subject to the laws of the country in which it is located
- Every question affecting title to land must be governed by the law of the space where the
land is situated
- Mobilia sequuntur personam - movables follow the owner
- Lex situs - property is separate from the owner
- Personal property may be separate from its owner, who may be taxed on its account at
the place where the property is located
- Law on succession:
- 1. Execution of wills
- Governed by the law of the place of execution
- 2. Distribution of property
- Governed by the law of the nation of the deceased
- The oneness and universality of the inheritance cannot be divided or
broken up merely because of the diff countries where the properties are
located
- The second paragraph applies only when a legal or testamentary provision has taken
place in the Philippines according to Philippine laws
- Intestacy - a person dying without having made a valid will or binding declaration

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Ancheta vs. Guersey-Dalaygon

FACTS:
1. American citizens and spouses Audrey O’ Niell and W. Richard Guersey have been
residing in the Philippines for 30 years. The couple had an adopted daughter, Kyle
Guersey Hill. Upon the death of Audrey, she named Richard as the heir of her estate
(stated in her will) and also mandated him to be the executor, thereof. Said will was
 admitted to probate before the Orphan’s Court of Baltimore, Maryland, USA. The
petitioner, Atty. Alonzo Ancheta, was named the ancillary administrator
2. Richard married a Filipina, Candelaria Guersey-Dalaygon (respondent), with whom he
has two children (Kimberly and Kevin)
3. Richard died, leaving his entire estate to the respondent, except for his rights in shares
of stock of A/G Interiors, Inc. (which he bequeathed to Kyle)
4. Petitioner, in 1987, declared both Richard and Kyle successors of Audrey’s estate,
bequeathing them ¾ and ¼ , respectively (the trial court approved this)
5. This was opposed by respondent on the ground that under the law of the State of
Maryland, "a legacy passes to the legatee the entire interest of the testator in the
property subject of the legacy."
6. Respondent contended that petitioner willfully breached his fiduciary duty when he
disregarded the laws of the State of Maryland on the distribution of Audrey’s estate in
accordance with her will.
7. Respondent argues that since Audrey left the entirety of her will to Richard, then the
entirety of it shall be given to him and not a mere ¾ of the Makati property.
8. Subsequently, since Richard left the entirety of the Makati property to the respondent,
the entirety of it should now belong to her.
9. The CA reversed the trial court’s orders and later denied the appeal of the petitioner,
hence the review for certiorari

ISSUE:
1. WoN Philippine laws on succession are applicable to aliens whose situs of properties
(immovable or movable) are the Philippines

HELD:
1. No. In this case, the petitioner completely disregarded Civil Code Article 16. The estate
laws of the State of Maryland govern.
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Article 17: The forms and solemnities of contracts, will, and other public instruments
shall be governed by the laws of the country in which they are executed.
When the acts referred to are executed before the diplomatic or consular officials
of the Republic of the Philippines in a foreign country, the solemnities established by the
Philippine laws shall be observed in their execution.
Prohibitive laws concerning persons, their acts or property, and those which have
for their object public order, public policy and good customs shall not be rendered
ineffective by laws or judgements promulgated, or by determinations or conventions
agreed upon in a foreign country.
- Matters bearing upon the execution, interpretation, and validity of a contract are
determined by the law of the place where the contract is made
- Obligations:
- The law designated by the party shall be applied
 - If not stipulated and the parties are of the same nationality, their national law
shall be applied
- If not stipulated, the law of the place of perfection of obligation shall govern
- Otherwise, the law of the domicile of the passive subject shall apply

Article 18: In matters which are governed by the code of commerce and special laws,
their deficiency shall be supplied by the provisions of this code
- On a specific matter, a special law shall prevail over a general law, which shall be
resorted to only to supply the deficiencies in the former
- When there is no deficiency, the civil code cannot be applied