1. Whether Ms. Arandillo can file a collection case here in the Philippines?

Ans: Yes. Collection of sum of money against the defendant is a personal action as it primarily
seeks the enforcement of a contract. The Rules give the Ms. Arandillo the option of choosing
where to file her complaint. She can file it in the place (1) where she herself resides, or (2)
where the defendant resides or may be found. The plaintiff or the defendant must be residents
of the place where the action has been instituted at the time the action is commenced1.

Hence, Ms. Arandillo can file a case here in the Philippines.

2. Whether a Filipino citizen can file a case against an American Citizen for a contract executed
abroad?

Ans: No. Philippine court has no jurisdiction.

3. Is Statute of Limitation applicable here in Philippines?

Ans: Yes. It is applicable.

“Art. 1144. The following actions must be brought within 10 years from the time the right of
action accrues:

(1) Upon a written contract;

(2) Upon an obligation created by law;

(3) Upon a judgment.”

Art. 1423. Obligations are civil or natural. Civil obligations give a right of action to compel their
performance. Natural obligations, not being based on positive law but on equity and natural law,
do not grant a right of action to enforce their performance, but after voluntary fulfillment by the
obligor, they authorize the retention of what has been delivered or rendered by reason thereof.
Some natural obligations are set forth in the following articles.

A written agreement serves as evidence of the lender's right to demand payment. If the debtor
fails to pay the debt within one year as agreed upon, it is imperative for lenders to put pressure
on the debtor to make a payment.

Article 1155 of the New Civil Code of the Philippines also states that, "The prescription of
actions is interrupted when they are filed before the court, when there is a written extrajudicial
demand by the creditors, and when there is any written acknowledgment of the debt by the
debtor."

1
THEODORE and NANCY ANG vs SPOUSES ALAN and EM ANG, G.R. No. 186993, August 22, 2012