CONFLICT OF LAWS

(5) International Customs

CONFLICT OF LAWS a. Comity of Nations
o Comity – neither a matter of absolute
Conflict of Laws obligation nor mere courtesy;
- The part of municipal law of the state which RECIPROCITY.
directs its court and administrative agencies,
when confronted with a legal problem DISTINCTIONS BETWEEN PRIVATE INTERNATIONAL
involving a foreign element, to apply either the LAW AND PUBLIC INTERNATIONAL LAW
local law or a foreign law.
- The part of law of each state which determines PUBLIC PRIVATE
whether in dealing with a legal situation the
Nature International Municipal
law of some other states will be recognized, be
States & other Private persons
given effect or be applied.
Persons entities with
Involved international
Conflict of Laws Case
personality
- Any case involving facts occurring in more than
Transactions in Transactions in
one state or nation, so that in deciding the
Transactions which states which private
case, it is necessary to make a choice between
Involved are interested persons are
the laws of different states or countries.
interested
Peaceful Resort to the
CONFLICT PROBLEMS
(mediation & proper
Those involving foreign elements that necessitate the
conciliation) or municipal
application of conflicts rules.
forcible tribunals or
Remedies
(retortions, agencies
Factors that give rise to conflicts problems:
reprisals, or
(1) Diversity of the municipal laws of the various
war as a last
states;
resort)
(2) Occurrence of transactions affected by the
laws of 2 or more states.
TOPICS IN CONFLICTS OF LAW
FUNCTIONS OF CONFLICT OF LAW
(1) Jurisdiction;
(1) Specify circumstances when foreign
judgments may be recognized; (2) Choice of Law;
(2) Determine or ascertain the particular system of (3) Recognition or Enforcement of Foreign
Judgments.
law to be applied.
The court taking cognizance of such case is called the
SOURCES OF CONFLICT RULES
(1) Statutes or Codes forum court.
a. New Civil Code
b. Carriage of Goods by the Sea Act OBJECTIVE
(COGSA) Harmonize the diverse laws of 2 or more states.
(2) Constitution
(3) Treaties & International Conventions CASE: HASEGAWA v. KITAMURA
(4) Jurisprudence or Judicial Decisions FACTS:
ISSUE:
a. Art. 8 of the NCC – principle of stare
RULING:
decisis

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PHASES OF CONFLICTS OF LAW
1. Jurisdiction
- Where can or should litigation be initiated?
- Considers whether it is fair to cause a
defendant to travel to this state
- Possible defenses/arguments:
 Forum non conveniens
2. Choice of Law
- Which law will the court apply?
- Asks the further question whether the
application of a substantive law, which will
determine the merits of the case, is fair to
both parties
- Possible defenses/arguments:
 Lex loci celebrationis
 Lex contractus
 State of the most significant
relationship rule
3. Recognition & Enforcement of Foreign
Judgments
JURISDICTION
Importance of raising the question of jurisdiction at the
earliest possible time
It is the duty of the court to determine whether or not
it has jurisdiction.
Presumption of Jurisdiction
- Rule 131, Sec.3 of the Rules of Court
- Presumptions:
The Court always acts with jurisdiction
Rule on Summary Proceeding
Jurisdiction over the subject matter may be
raised at any time, even for the first time on
appeal; BUT, it may no longer raise such
question if it is barred by estoppel or
laches.
- Jurisdiction over the subject matter may be
raised at any time, even for the first time on
appeal; BUT, it may no longer raise such
question if it is barred by estoppel or
laches.
ASPECTS OF JURISDICTION
(1) Jurisdiction over the Subject Matter
- Jurisdiction over the general class of cases.
- Power to try and decide the class of
litigations to which the particular class
belongs.
- Principles:
o Jurisdiction is conferred by law,
hence it cannot be created by
administrative policies;
o Decisions rendered by a court with
no jurisdiction is a nullity;
o Jurisdiction cannot be conferred by
the court’s plea that it has
jurisdiction; and
o Jurisdiction cannot be conferred by
the parties – the parties cannot
stipulate on the jurisdiction of the
court.
**Doctrine of Continuity of Jurisdiction – adherence
to jurisdiction. Once a court acquires jurisdiction, it
continues to have jurisdiction until it has done all it
could.
(2) Jurisdiction over the Res
- Refers to the court’s jurisdiction over the
thing or the property which is the subject
of the action.
- The court acquires jurisdiction over the res:
o By placing the property or thing
under its custody; or
o As a result of the institution of legal
proceedings.
- If the action is in rem or quasi in rem,
jurisdiction over the person of the
defendant is not required. What is required
is jurisdiction over the res although
summons must also be served upon the
defendant in order to satisfy due process
requirement.
Application of lex fori.
- Despite the fact that the case involves a
foreign element, the forum may be forced
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to apply the internal law or lex fori in 3
instances:
o When the conflicts rule so
provides;
o When the proper foreign law (lex
causae) has not been properly
pleaded and proved; or
o When the case falls under any of
the 8 basic exceptions to the
application of the proper foreign
law.
Exceptions to the application of lex causae:
 When the foreign law, judgment or contract is
contrary to a sound and important public policy
of the forum;
 When the foreign law, judgment or contract is
contrary to recognized principles of morality
(contra bonus mores);
 When the foreign law or judgment is penal in
nature;
 When the foreign law is procedural in nature;
 When the foreign law is fiscal or administrative
in nature;
 When the application of the foreign law,
judgment, or contract may work injustice to
residents of the state;
 When the application of the foreign law,
judgment, or contract may work against the
vital interests and material security of the
state; and
 When the case involves real or personal
property situated in the forum (lex situs).
(3) Jurisdiction over the Person of the Parties
- Jurisdiction over the defendant must be
raised at the earliest possible time.
- The court acquires jurisdiction over the
plaintiff upon filing of the original
complaint in court and it is necessary that
the plaintiff personally file the complaint.
The operative act is the filing of the
complaint because this invokes the power
of the court.
- The court acquires jurisdiction over the
defendant in two ways either by: 1)
voluntary appearance; or 2) summons.
SUMMONS
 Summons are served by the sheriff or deputy
or other proper Court Officer, or for justifiable
reasons by any suitable person authorized by
the court in issuing a summons.
 Summons is the primary means by which the
court is able to acquire jurisdiction over the
defendant and to give notice that an action has
been commenced against defendant.
 Modes of Service of Summons
1. Personal
 Handing a copy of the
summons to the defendant in
person and return should be
signed by defendant.
 IF the defendant does not sign
then summons is tendered to
him.
2. Substituted
 Summons is left with a person
with suitable age and
discretion at the residence or a
person residing therein or is
left with a competent person in
the office of the defendant.
 This cannot be availed of
without prior resort to
personal service and is used
only after a reasonable effort
was done with personal
service.
3. Publication
 This type of service is with
leave of court and if: 1) the
whereabouts and identity of
the defendant cannot be
ascertained; 2) defendant does
not reside in the Philippines but
it is an action in rem; 3)
defendant is a resident of the
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Philippines, but is outside of
the country.
4. Extra-territorial service
 A situation where the
summons is to be served to a
defendant outside of the
Philippines.
RESIDUAL JURISDICTION
- Refers to the authority of the trial court to
issue orders for the protection and
preservation of the rights of the parties
which do not involve any matter litigated
by the appeal; to approve compromises; to
permit appeals by indigent litigants; to
order execution pending appeal; and to
allow the withdrawal of the appeal.
Provided these are done prior to the
transmittal of the original records of the
record on appeal, even if the appeal has
already been perfected.
Forum Non Conveniens
- If the case involves a foreign element the
court may either:
o Assume jurisdiction; or
o Refuse to assume jurisdiction on
the ground of forum non
conveniens.
- The forum may decline to assume
jurisdiction on the ground of
inconvenience without causing injustice to
the aggrieved party who may then seek
relief in a foreign court.
- Inconvenience is material only in conflicts
cases, and such inconvenience must
pertain to the tribunal and not to the
parties.
PUYAT v. ZABARTE
Grounds to declare a forum is inconvenient
 The belief that the matter can be better tried
and decided elsewhere;
 The belief that the non-resident plaintiff
sought the forum merely to secure procedural
advantages, convey, or harass defendant;
 Overcrowded dockets;
 Inadequacy of local judicial machinery; or
 Difficulty of ascertaining foreign law;
**Transfer of venue is not forum non conveniens
because in forum non conveniens there are other
courts that are better suited to tray and decide the
case.
Manila Hotel Corp. v. NLRC G.R. No. 120077
- Supreme Court dismissed the case on the
ground of forum non conveniens
- READ THE FULL TEXT
Forum Shopping
- Forum shopping exists when as a result of
an adverse opinion in one forum, a party
seeks a favorable opinion, other that by
appeal or certiorari, in another, or when he
institutes two or more actions or
proceedings grounded on the same cause,
on the gamble that one or the other court
would make a favorable disposition.
- It occurs when a party attempts to have his
action tried in a particular court or
jurisdiction where he feels he will receive
the most favorable judgment.
- It exists where the elements of litis
pendentia are present or where a final
judgment in one case will amount to res
judicata in another.
Res Judicata
- A final judgment in one case will result to
res judicata if the following requisites
concur:
o Existence of a former judgment
that must be final;
o Rendered by a court having
jurisdiction over the subject matter
and the parties;
o It must be a judgment on the
merits; and
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o There must be identity of the

parties, subject matter and causes
of action between the 1st and 2nd
action.

Litis Pendentia
- Litis pendentia occurs when the following
requisites concur:
o Identity of the parties or at least
such parties represent the same
interests in both actions;
o Identity of the rights asserted and
relief prayed for, the relief being
founded on the same facts; and
o Identity of the two preceding
particulars such that any judgment
rendered in the other action will
amount to res judicata in the action
under consideration.