CONFLICT OF LAWS LAGURA, J.

Book by Galahad Pe Benito MIDTERMS REVIEWER (Atty. Cada)

I. Introduction to Private International Law 2. Whether Nigeria offers an adequate forum

Define, International Law
It is defined as rules and regulations of general
application dealing with the conduct of states
and of international organizations and their
relations inter se, as well as their relations with
persons, whether natural or juridical.
for adjudication of plaintiff’s claim. NO.
Ratio: Whether the norm alleged (a) is of
international character that States universally
abide by, or accede to, out of sense of legal
obligation; (b) is defined with specificity; and
(c) is of mutual concern to States.

Two (2) Branches of International Law To determine whether this prohibition

constitutes a universally accepted norm of
1. Public International Law – governs the customary international law, we examine
relationship of states and international the current state of international law by
entities consulting the sources indentified by
2. Private International Law – Article 38 of the ICJ, to which the United
comprehends laws regulating private States and all members of the United
interactional across national frontiers. It Nations are parties:
deals with conflict of laws among the laws
of two or more states and necessitates a 1. international conventions, whether
determination of which municipal law general or particular, establishing
applies to a case. rules expressly recognized by
contesting states;
Distinction 2. international customs, as evidence
Public Int’l Law Private Int’l Law of a general practice accepted as
As to source law;
Based on: Based on: 3. the general principles of law
 International  Domestic & recognized by civilized nations;
conventions municipal laws (i.e. 4. judicial decisions and the teaching
 International constitution ad of the most highly qualified
Customs, statutes . publicists of the various nations,
 General principles as subsidiary means for the
of law recognized by determination of rules of law.
civilized nations
In sum, it was inappropriate for the district court
 Judicial Decisions
to forego a more extensive examination of
and the teachings
whether treaties, international agreements, or
of the most highly
State practice have ripened the prohibition of
qualified publicists
non-consensual medical experimentation on
of the various
human subjects into a customary international
nations
law norm that is sufficiently (i) universal and
As to subjects
obligatory, (ii) specific and definable, and
States & international Individuals and (iii) of mutual concern, to permit courts to infer
organizations Corporations a cause of action under the ATS.
As to nature
International Municipal (Domestic) Universality.
The history illustrates that from its
Case: Abdullahi vs. Pfizer origins with the trial of the Nazi Doctors
at Nuremburg through its evolution in
Facts: Petitioner sued Pfizer under the Alien Tort international conventions, agreements,
Statute for violating international law for non– declarations, and domestic laws and
consensual medical experimentation. The case, regulations, the norm prohibiting non-
however, was dismissed by the Court on the consensual medical experimentation on
ground that the plaintiffs failed to identify a human subjects has become firmly
source of international law that provides a proper embedded and has secured universal
predicate for jurisdiction under the ATS and due acceptance in the community of nations.
to forum non–conveniens. Unlike our dissenting colleague’s
customary international law analysis,
Issue: which essentially rests on the mistaken
1. Whether Pfizer violated international assumption that ratified international
law on non–consensual medical treaties are the only valid sources of
experimentation. YES customary international law for ATS
purposes.
CONFLICT OF LAWS
Book by Galahad Pe Benito
Specificity.
SOSA recognize cause of action only to
enforce those customary international law
norms that are no less definite in content
than the historical paradigms familiar
when the ATS was enacted.
Mutual Concern
States throughout the world have entered
into two express and binding and
international agreements prohibiting non-
consensual medical experimentation: the
ICCPR and the Convention on Human
Rights and Biomedicine. In other words,
acting out of sense if mutual concern, the
nations of the world have made it their
business, both though international
accords and unilateral action, to
demonstrate their intention to eliminate
conduct of the type alleged in the
complaints.
Forum Non-conveniens
The defendant bears the burden of establishing
that a presently available and adequate alterative
forum exists, and that the balance of private and
public interest factors tilt heavily in favor of the
alternative forum. Absent a showing of
inadequacy by a plaintiff, “considerations of
comity preclude a court from adversely judging
the quality of a foreign justice system.”
Accordingly, while the plaintiff bears the initial
burden of producing evidence of corruption,
delay or lack of due process in the foreign forum,
the defendant bears the ultimate burden of
persuasion as to the adequacy of the forum.
Foreign Element, concept.
A factual situation that cuts across territorial
lines and is affected by the diverse laws of two or
more states is said to contain a foreign element.
A foreign element is anything which is not
domestic and has a foreign component to it. It
can be a foreigner, a foreign corporation, an
incident happening in a foreign country, or a
foreign law problem with no conflicts dimension.
These three phases are separate from each
other and a defense in one phase is not a
defense in other phases.
Phases in Conflicts Resolution
1. Jurisdiction – concerns the authority of a
court of law to take cognizance of a case
2. Choice of Law – refers to the applicable law to
the problem
3. Recognition and Enforcement of Judgments –
concerns the enforcement of foreign laws and
judgments in another jurisdiction.
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
The three (3) phases are separate from each other
and a defense in one phase is not a defense in
other phases.
Case: Hasegawa vs. Kitamura
Facts: Nippon entered into a one-year ICA with
Minori Kitamura, a Japanese national
permanently residing in the Philippines. On
February 2000, Kitamura was informed that
Nippon is no longer renewing his ICA and his
services would only be utilized only until March
31, 2000.
Issue: Whether the subject matter jurisdiction of
Philippine Courts in civil cases may be assailed
on the principles of lex loci celebrationis, lex
contractus, the state of most significant
relationship rule, or forum of non – conveniens.
NO. They are not proper grounds fro
questioning the jurisdiction of Philippine
Courts.
Ratio:
Analytically, jurisidiction and choice of law are
two distinct concepts. Jurisdiction considers
whether it is fair to cause a defendant to travel to
this state; Choice of law asks the further
question whether the application of a substantive
law which will determine the merits of the case is
fair to both parties. In this case, only the first
phase is at issue: jurisidiction. For a court to
validly exercise its power to adjudicate a
controversy, it must have jurisdiction over the
subject matter, over the issues of the case and,
over the res or thing (in case of property).
Since these three principles in Conflicts of Laws
make reference to the law applicable to a dispute,
they are rules proper for the second phase, the
choice of law. They determine which state’s law
is to be applied in resolving the substantive
issues of a conflicts problem. Necessarily, as the
only issue in this case is that of jurisidiction,
choice of law rules are not only inapplicable but
also not yet called for.
Lex loci celebrationis relates to the law of
the place of the ceremony or the law of
the place where a contract is made.
Lex contractus or lex loci contractus means
the law of the place where a contract is
executed or to be performed. It controls
the nature, construction, and validity of
the contract and it may pertain to the law
voluntarily agreed upon by the parties of
the law voluntarily agreed upon by the
parties or the law intended by them either
expressly or implicitly.
CONFLICT OF LAWS
Book by Galahad Pe Benito
State of the Most Significant Relationship
Rule. To ascertain what state law has the
most substantial connection to the
occurrence and the parties. This rule
takes into account several contacts and
evaluates them according to their relative
importance with respect to the particular
issue to be resolved.
Invocation of Forum Non-conveniens,
improper. First, it is not a proper basis for a
motion to dismiss under the Rules of Court.
Second, whether the said suit should be
entertained or dismissed on the basis of the said
doctrine depends largely upon the facts of the
particular case and is addressed to the sound
discretion of the trial court. Third, the propriety
of dismissing a case based on this principle
requires factual determination.
Three Alternatives for Courts in
DISPOSING conflicts cases involving
foreign element brought before a court
of administrative agency:
1. Lack of jurisdiction or refusal to
assume jurisdiction over the case
2. Assume jurisdiction over the case and
apply the internal law of the forum;
3. Assume jurisdiction over the case and
take into account or apply the law of
some other States or states.
STEPS IN DETERMINNING APPLICABLE LAW
1. Characterization
a. Identification of issues
b. Pinpointing the branch of law implicated
by the problem
c. Determining the existence of conflicts of
law problem by the presence of a foreign
element
d. If there is a foreign, employ the applicable
conflict of law doctrines. If none, the rule,
law or jurisprudence in the forum.
2. Connecting factors
a. An analysis is made with respect to which
jurisdiction or has the most connection to
the case.
b. The nationality of the parties, the location
of the act or event, the terms of the
agreement or contract, and other matters
are looked into to determine what legal
system between two or more legal system
is applicable.
CHOICE OF APPLICABLE LAW
Parties to a contract are free to stipulate the
applicable law that will govern their contractual
relations (this proceeds from Article 1306 of the
Civil Code). It is not necessary that the chosen
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
law be local law, so long as the choice of law does
not violate the public policy or the laws of the
forum.
EXTRATERRITORIALITY
Laws are generally territorial in application. The
reason fro this is that the mind of the lawmaker
is limited to the territorial boundaries of his
country when he enacts laws. The question of
whether a law is territorial or extraterritorial
depends on the legislative intent. This is
recognized under the international law, except
when this intrudes with the territorial integrity
and sovereignty of another country. An example
of a law providing extraterritorial application in
an explicit manner is the following:
1. Article 15, NCC.
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. Article 16, NCC
Real property as well as personal property
is subject to the law of the country where
it is stipulated.
However, intestate and testamentary
successions, both with respect to the
order of succession and to the amount of
successional rights and to the intrinsic
validity of testamentary provisions, shall b
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.
This does not conflict with the territorial integrity
or sovereignty of another country. This is also
practiced practically by all states.
Case: Small vs. United States (2005)
Facts: After serving his one year sentence in
Japan, Small returned to the US and purchased
a gun. He was then charged for unlawful gun
possession under a statute that it shall be
unlawful for any person who has been convicted
in any court, of a crime punishable by
imprisonment for a term exceeding one year.
Small challenged the conviction on the ground
that his earlier conviction in Japan, being a
foreign conviction, fell outside the scope of the
unlawful gun possession statue.
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Book by Galahad Pe Benito
Issue: Whether the “unlawful gun possession”
statute had extraterritorial application such that
foreign convictions are covered in its scope. NO.
Ratio: In determining the scope of the statutory
phrase we find help in the “common sense notion
that Congress generally legislates with domestic
concerns in mind.” This notion has led the Court
to adopt the legal presumption that Congress
ordinarily intends its statutes to have domestic,
not extraterritorial, application.
The statutes language does not suggest any
intent to reach beyond domestic convictions.
Neither does it mention foreign convictions nor is
its subject matter special, say, immigration or
terrorism, where one could argue that foreign
convictions would seem especially relevant. To
the contrary, if read to include foreign
convictions, the statute’s language creates
anomalies.
Case: Kiobel vs. Royal Dutch Petroleum Co.
Issue: Whether and under what circumstances
the ATS allows courts to recognize a cause of
action for violations of the law of nations
occurring within the territory of a sovereign other
than the United States.
Ratio: None, because the ATS has no
extraterritorial application.
o The question here is not whether petitioners
have stated a proper claim under the ATS,
but whether a claim may reach conduct
occurring in the territory of a foreign
sovereign. Respondents contend that claims
under the ATS do not, relying primarily on a
canon of statutory interpretation known as
the presumption against extraterritorial
application. That canon provides that when a
statute gives no clear indication of an
extraterritorial application, it has none,” and
it reflects the presumption that United States
law governs domestically and does not rule
the world.”
o There is no indication that the ATS was
passed to make United States a uniquely
hospitable forum for the enforcement of
international norms.
o Nor does the historical background against
which the ATS was enacted overcome the
presumption against application to conduct
in the territory of another sovereign.
o We therefore conclude that the presumption
against extraterritoriality applies to claims
under the ATS, and that nothing in the
statute rebuts that presumption. There is no
clear indication of extraterritoriality here, and
petitioners case seeking relief for violations of
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
the law of nations occurring outside the
United States is barred.
o On these facts, all the relevant conduct took
place outside the US. And even where the
claims touch and concern the territory of the
United States, they must do so with sufficient
force to displace the presumption against
extraterritorial application.
What is Forum Non Conveniens?
It simply means that the forum is not
convenient(i.e. the palace where the suit is filed
has no substantial connection to the parties, or
litigation of a dispute become very inconvenient in
the chosen venue, or parties are not resident of the
forum, or that the witness are located somewhere).
When Forum Non Conveniens is AVAILABLE
AS DEFENSE to dismiss a case:
In Puyat vs. Zabarte:
1. The belief that the matter can be tried and
decided elsewhere
2. The belief that the plaintiff sought the
forum merely to secure procedural
advantages or to convey or harass –
FORUM SHOPPING
3. Unwillingness to extend local judicial
facilities to non-residents or aliens when
the docket may already be overcrowded.
4. Inadequacy of the local judicial machinery
to effectuate the right sought to be
maintained.
5. Difficulty of ascertaining the law
Case: Saudi Arabian Airlines vs. Rebesencio
Facts: Filipino respondents were terminated as
Flight Attendant (Permanent) by Saudi Arabian
Airlines due to pregnancy which allegedly was a
ground for termination under their employment
contract. Respondents sued the petitioners. The
petitioners, in turn, filed a motion to dismiss on
the ground of forum non conveniens.
Issue: Whether the Philippine courts or tribunals
offer a convenient and adequate forum for the
adjudication of respondent’s claim? YES.
Ratio:
1. Forum non conveniens literally translates
to the forum is inconvenient. It is a
concept in international law and was
devised to combat the less than honorable
reasons and excuses that litigants use to
secure procedural advantages, annoy and
harass defendants, avoid overcrowded
dockets, and select a friendlier venue.
Thus, the doctrine of forum non
conveniens addresses the same rationale
CONFLICT OF LAWS
Book by Galahad Pe Benito
that the rule against forum shopping
does, albeit on a multijurisdictional scale.
2. Forum non conveniens finds no
application and does not operate to divest
Philippine Tribunals of jurisdiction and to
require the application of foreign law.
3. Forum non conveniens relates to forum,
not to the choice of governing law.
4. Forum non conveniens is soundly applied
not only to address parallel litigation and
undermine a litigant’s capacity to vex and
secure undue advantages by engaging in
forum shopping on an international scale.
It is also grounded on principles of comity
( a deferential gesture to the tribunals of
another sovereign) and judicial efficiency.
5. All told, the considerations for
assumption of jurisdiction by the
Philippine Tribunals have been satisfied.
First, all the parties are based in the
Philippines and all the material incidents
transpired in this jurisidiction. Thus, the
parties may conveniently seek relief from
Philippine tribunals. Second, Philippine
tribunals are in the position to make an
intelligent decision as to the law and
facts. Third, Philippine tribunals are in a
position to enforce their decisions. There
is no compelling basis for ceding
jurisdiction to a foreign tribunal. Quite
the contrary, the immense public policy
considerations attendant to this case
behoove Philippine tribunals to not shy
away from their duty to rule on the case.
II. CHOICE OF LAW
a. When parties enter into an agreement, their
relationship is usually governed by a
particular law. The default law is almost
always the local law. There are instances,
however, when this is not the case, as when
the parties stipulate a foreign law to govern
their relationship. These instances usually
involve a foreign element necessitating the
application of several principles to determine
the law applicable to the case.
b. Section 6 of the U.S. Restatement (Second) of
Laws provides the underlying principles in
determining the law applicable to a conflicts
case:
1. Statutory directive of its own state on
choice of law
2. Needs of the interstate and
international systems
3. Relevant policies of the forum
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
4. Relevant Policies of the other
interested states and the relative
interests of those states in the
determination of the particular issue
5. Protection of justified expectation
6. Basic policies underlying the
particular field of law
7. Certainty, predictability and
uniformity of result
8. Ease in the determination and
application of the law to be applied
Principle 1: Local Law
This is the general rule and it provides the local
law to be the default law that will govern the
relationship of the parties to a dispute. Most
states have conflicts of law rules specified in their
civil codes and they must be applied before one
considers the application of a foreign law
(i.e Article 15 and 16, NCC).
Problem of renvoi. It literally means to
“refer back”. A situation when a local law
requires the forum court to apply foreign
law to case in dispute. The foreign law, in
turn, directs the application of the laws of
the forum court to the case under
consideration. Thus, there is a reference
back to the local laws of the law of the
forum court.
To solve this problem, and end the
endless reference to two laws, the local
court must, after looking at the
conflicts of law rules of the foreign
state, apply the directive of the latter’s
law. Thus, if the directive is the
application of the forum court’s law,
the court must then follow to put an
end to the endless throwing back of the
case.
Case: Aznar vs. Garcia
Facts: Christensen, a US citizen, died in the
Philippines while domiciled therein. He
bequeathed a certain sum to Helen and the rest
of his estate to Mary. Helen, predicating that he
is entitled to receive a legitime more than the
sum bequeathed to her, opposed the project
partition on the ground that it should be the
Philippine law that should govern the
distribution of his estate.
Issue: Whether California or Philippine Law
governs the testamentary dispositions of the
deceased.
Ratio:
1. The law that governs the
testamentary dispositions is defined
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Book by Galahad Pe Benito
in Article 16 of the Civil Code of the
Philippines. The amount of
successional rights and to the intrinsic
validity of 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 where said property may be
found.
2. The laws of California have prescribed
two sets of laws for its citizens, one for
residents and another for those
domiciled in other jurisdiction. Reasons
demand that we should enforce the
California internal law prescribed for its
citizens residing therein, and enforce
the conflict of laws rules for the citizens
domiciled abroad.
3. As explained in the various authorities
cited above the national law mentioned
in Article 16 of our Civil Code is the law
on conflict of laws in the California Civil
Code which authorizes the reference or
return of the question to the law of the
testator’s domiciles. Under the
California Law, a testator may dispose
of his property by will in the form and
manner he desires.
4. The conflicts of laws in California,
Article 946, Civil Code, precisely refers
back the case, when decedent is not
domiciled in the California, to the law of
his domicile, the Philippines in the case
at bar. The court of the domicile cannot
and should not refer the case back to
California; such action would leave the
issue incapable of determination
because the case will then be like a
football, tossed back and forth between
the two states, between the country of
which the decedent was a citizen and
the country of his domicile.
Case: Bellis v. Bellis (1967)
Facts: Amos Bellis, a citizen of Texas, US, died
testate leaving certain sums to his legitimate and
illegitimate children from the first and second
marriage. Two of his illegitimate children opposed
the project partition on the ground that they were
denied of their legitimes. The lower court,
however, denied the opposition on the ground
that Texas Law, which is the national law of the
decedent, and which did not provide for
legitimes, governed his successional rights.
Issue: Whether the doctrine of renvoi applies in
this case? NO.
The doctrine of renvoi is usually
pertinent where the decedent is a
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
national of one country, and a domicile
of another. In the present case, it is
not disputed that the decedent was
both a national of Texas and a domicile
thereof at the time of his death. So
that assuming Texas has a conflict of
law rule providing that the domiciliary
system should govern, the same would
not result in a reference back to
Philippine law, but would still refer to
Texas Law.
Issue: Whether the application of Texas Law is
violative of public policy. NO.
Appellants would however counter that
Art. 17 of the Civil Code prevails as the
exception of Article 16, NCC:
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 judgments
promulgated, or by determination of
conventions agreed upon in a foreign
country.
This is not precisely correct. It is therefore
evident that whatever public policy or
good customs may be involved in our
system of legitimes, Congress has not
intended to extend the same to the
succession of foreign nationals. For it has
specifically chosen to leave, inter alia, the
amount of successional rights, to the
decedent’s national law. Specific
provisions must prevail over general ones.
PRINCIPLE 2: Needs of the interstate and
international systems
1. Courts must consider the needs of the
interstate and international systems in
determining the applicable law.
2. To prevent stifle in the growth of free
trade and discourage people from trading
with their counterparts in other countries,
courts must formulate principles and
reconcile multistate laws with the end in
view of encouraging international trade
among people.
PRINCIPLE 3: Relevant Policies of the forum
1. Each forum considers certain values to be
of highest import to them. In the
Philippines, courts consider protection for
labor to be of highest import. If a case
implicate a foreign law which is
prejudicial to the interest of the interest of
labor, courts are quick to strike down the
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Book by Galahad Pe Benito
foreign law in favor of the applicability of
local law.
Case: Cadalin vs. POEA Administrator
Facts: Cadalin et al were prematurely terminated
from their work in Bahrain and upon return to
the Philippines, they sued AIBC and BRII for
illegal dismissal and monetary claims. Ultimately,
the NLRC reversed the ruling of POEA and held
that the period for filing claims was three years
under the Labor Code and not ten years (Civil
Code) or one year under Amiri Decree No. 23 of
Bahrain.
Issue: Whether Amiri Decree could be applied in
our jurisdiction?
Decision: No, Amiri Decree is contrary to our
public policy on the protection of labor. The
Courts of the forum will not enforce any foreign
claim obnoxious to the forum’s public policy. To
enforce the one-year prescriptive period of the
Amiri Decree as regards the claims in question
would contravene the public policy on the
protection to labor.
Take Note:
o Promotion of Social Justice
o Labor: Primary Social Economic Force
o Full protection to labor, local and
overseas
o Full employment and equality of
employment opportunities for all.
Case: Bank of American NT & Asia vs.
American Realty Corporation
Issue: Whether or not the petitioner’s act of filing
a collection suits against the principal debtors for
the recovery of loan before foreign courts
constituted a waiver of the remedy of foreclosure.
Decision: Yes. In our jurisdiction, the remedies
available to the mortgage creditor are deemed
alternative and not cumulative. Notably, the
election of one remedy operates as a waiver of the
other.
Ratio: Incidentally, BANTSA alleges that under
the English Law, mortgagee does not lose its
security interest by simply filing actions for sums
of money.
1. Untenable. When the foreign law,
judgment or contract is contrary to a
sound and established public policy of the
forum, the said foreign law, judgment
order shall not be applied.
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
Additionally, Article 17 of the NCC
provides that 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
judgments promulgated, or by
determination of conventions agreed upon
in a foreign country.
2. The public policy sought to be protected
in the instant case is the principle
imbedded in our jurisdiction proscribing
the splitting of a single cause of action
under the Rules of Civil Procedure.
3. Moreover, foreign law should not be
applied when its application would work
undeniable injustice to the citizens or
residents of the forum.
Case: Dacasin vs. Dacasin
Facts: Harold, an American, and Susan, a
Filipino, were married in Manila. Later, they got
divorced in the United States. An agreement for
the joint custody of Stephanie was executed.
Issue: Is the agreement valid and enforceable in
the Philippines?
Decision: No, the agreement contravenes
Philippine law.
It based on our public policy that mothers should
never be separated from their young children,
seven years and below, to avoid a tragedy where
a mother has seen her baby torn away from her.
Dacasin stated that this is a matter of wisdom,
not a matter of enforceability or validity.
Ratio:
1. In this jurisidiction, parties to a contract
are free to stipulate the terms of
agreement subject to the minimum ban
on stipulations contrary to law, morals,
good customs, public order, or public
policy.
2. At the time the parties executed the
Agreement, Stephanie was under seven
years old. The relevant Philippine law on
child custody for spouses separated in
fact or in law is Article 213 of the Family
Code, “no child under seven years of age
shall be separated from the mother.
3. This decision in Dacasin is controversial
in so far as it sanctions the Philippine
Law that awards custody of a child under
seven years to the mother. No such law or
similar law exists in foreign countries,
and this law may be unique in the
CONFLICT OF LAWS
Book by Galahad Pe Benito
Philippine setting. Culturally, it is
justifiable since the mother is always the
center of a Filipino family. However, to say
that joint custody of child below seven
years to be against public policy may be a
bit of a stretch.
PRINCIPLE 4: Relevant Policies of the
interested States
1. This principle indulges courts to engage
in governmental interest analysis, courts
compare the laws and interests of two
states, determine if there is a real conflict,
and if a real conflict exists, apply the of
the state whose interest is more impaired.
Case: Kearney vs. Salomon Smith Barney
Facts: Kearney, et.al, all residents of California,
filed claims against SSB for malfeasance, fraud
and breach of fiduciary duties for recording their
telephone conversations without their consent.
In their defense, SSB filed a demurrer on the
ground that under Georgia and federal law
recordings may be lawfully made in Georgia with
one party’s consent.
Issue: Whether California law or Georgia law
governs Kearney’s claim?
Decision: California Law. <3
1. By contrast, we believe that, for a number
of reasons, the application of California
law rather than Georgia Law in the
context presented by the facts of this case
would have relatively less severe effect on
Georgia’s interests.
2. First, because California law, with regard
to the particular matter here at issue, is
more protective of privacy interests than
the comparable Georgia privacy statute,
the application of California Law would
not violate any privacy interest protected
by Georgia law.
3. Furthermore, applying California law to a
Georgia business’s recording of telephone
calls between its employees and California
customers will not severely impair
Georgia’s interests. As discussed above,
California law does not totally prohibit a
party to a telephone call from recording
the call, but rather it prohibits only the
secret or undisclosed recording of
telephone conversations, that is, the
recordings of such calls without the
knowledge of all parties to the call.
4. Accordingly, to the extent Georgia law is
intended to protect the right of a business
to record conversations when it has a
legitimate business justification for doing
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
so, the application of California law to
telephone calls between customers would
not defeat that interest.
Case: Butler vs. Adoption Media, LLC.
Facts: Michael and Richard Butler, domestic
partners in California, applied to have their
profile posted in an internet adoption
operated by the respondent. The application
was denied as the service was not available
to same sex partners. Butlers sued Adoption
media for violation of Unruh Civil Rights Act.
Issue: Whether California or Arizona Law
governs the claim of Butlers?
Decision:
a) The Court finds that the failure to
apply California law in the present
case would undermine the Unruh Act
for the same reasons. If businesses
with headquarters in other states
could maintain a regular practice of
discriminating California residents,
that practice would substantially
impair the protection afforded by the
statute.
b) Similarly, in the present case, the
Unruh Act is more protective of
consumers than the comparable
Arizona law. Application of California
law would not violate any right
protected by Arizona Law, and the
Unruh Act merely provides protection
in addition to those specifically
enumerated protections in Arizona.
Steps in governmental analysis test.
1. The court determines whether the
relevant law of the affected
jurisdiction with regard to the issue in
question is the same or different.
2. If there is a difference, the court
examines each jurisdiction’s interest
in the application of its own law to
determine whether a true conflict
exists.
3. If the court finds that there is a true
conflict, it carefully evaluates and
compares the nature and strength of
the interest of each jurisidiction to
determine which state’s interest
would be more impaired if its policy
CONFLICT OF LAWS
Book by Galahad Pe Benito
were subordinated to the policy of the
other state.
The government interest analysis is
the approach applied in most western
countries in determining the
applicable law where true conflict
exists. However, in the Philippine
setting, rarely is this approach
employed. The standard approach of
local courts, especially the Supreme
Court, is to declare the foreign law to
be against public policy where the
foreign law conflicts with a Philippine
Law.
CRITICISMS.
a) The fundamental defect of the
governmental interest analysis is
that it tends to favor laws and
interests of the forum court.
b) Quite simply, this is comparable to
the “home advantage” in sports
competition where the home state
has a specific advantage over
visiting teams due to their
familiarity with the venue and
their support from the local fans.
PRINCIPLE 5: Protection of justified
expectations
1. Parties enter into contracts or into legal
relations with the objective of achieving a
desired result.
2. When parties specify a particular law to
govern their legal relations, courts must
enforce this choice of law, unless it is
contrary to a statutory directive of the
forum court, or contravenes public policy.
Case: Francisco vs. Stolt Achievement
Facts: Francisco was injured while working on
board vessel. He then sued Stolt before Louisiana
State Court. Stolt moved for the dismissal of the
case on the ground that the employment contract
signed by Francisco provides a mandatory
arbitration in the Philippines should claims and
disputes arises from his employment. Ultimately,
the case was dismissed.
Issue: Whether Francisco was compelled to
arbitrate his claims against Stolt?
Decision: Yes!
1. The contract clearly provides remedies for
work related personal injuries and states
in Par. 29 that “claims and disputes
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
arising from this employment” are subject
to arbitration in the Philippines. We held
that the above clause which provides that
any and all disputes or controversies
arising of or by virtue of this Contract
shall be litigated in the Philippines.
2. Especially in light of our general rule,
recognized in a Convention Act case, that
“whenever the scope of an arbitration
clause is in question, the court should
construe the clause in favor of
arbitration,” we read the contract as
mandating arbitration of this dispute in
the Philippines.
3. Courts must look at justified expectation
in adjudicating cases. Parties have
reasons why they choose a particular law
as their choice of law or why they choose
a particular forum in litigating their case.
PRINCIPLE 6: Basic Policies underlying the
particular field of law
1. This means that the reason and objectives
of the laws in question should be given
consideration.
Case: Hancock vs. Watson
Issue: What law is applicable to the suit for
alienation of affection filed by David against
Roger?
Decision: The law that is applicable is the
law of the place where the tort occurred –
MISSISSIPI LAW.
a) Choice of law analysis is a three step
process:
1. First, the court must determine
whether the conflicting laws are
substantive or procedural.
2. The then must then classify the
substantive area of law–
contract, tort, or property–
applicable to the conflicting
laws, as each area of law has
its own choice of law
provisions.
3. Finally, the court must apply
the appropriate analytical
provisions to the conflict.
b) Clearly, the conflicting laws are
substantive, as the outcome will
determine whether David has a viable
cause of action. Categorizing the
substantive area of law for an
CONFLICT OF LAWS
Book by Galahad Pe Benito
alienation of affection claim is also a
simple step. Alienation of affection
claims are tort actions.
PRINCIPLE 7: Certainty, predictability
and uniformity of result
1. Most judicial systems favor stability in
judicial decisions that is why they
have formulated principles like res
judicata and stare decisis. When the
facts of a case fall squarely with the
facts of a previously decided case, the
doctrine in the latter case is usually
applied to the case in dispute.
PRINCIPLE 8: Ease in the determination
and application of the law to be applied
1. Simplicity is always a virtue in
determining which law to apply. If a
court is bound by a particular
doctrine by virtue of stare decisis, it is
usually simpler for the court to apply
the same doctrine in future cases.
2. There is no more need to adopt new
and more complicated analyses for
what only needs to be done is to apply
the law which has been applied
before.
Other Principles Affecting Choice of Law
Processual Presumption.
Failure to prove foreign law will result
to the exclusion of the foreign law and
a presumption will arise that the
foreign law is the same local law. This
is the doctrine of Processual
presumption and it presumes the
foreign law to be the same as local law
when there is failure to prove foreign
law.
Proof of Foreign Law
Foreign laws have to be properly
proved before they are admitted into
evidence. Foreign documents will be
excluded if they are properly proved.
They will be nothing but scraps of
paper which the court cannot
consider as part of the evidence of the
case.
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
How to prove foreign law? Rule 132
of the Revised Rules Court:
1. May be evidenced by an official
publication thereof; or
2. By a copy attested by the
officer having the legal custody
of the record, or by his deputy,
and accompanied, if the record
is not kept in the Philippines.
3. If the office in which the record
is kept is in foreign country,
the certificate may be made by
a Secretary of the embassy or
legation, consul general,
consul, vice consul, or consular
agent or by any officer in the
foreign service of the
Philippines stationed in the
foreign country in which the
record is kept, and
authenticated by the seal of his
office.
4. The attestation must state, in
substance, that the copy is a
correct copy of the original, or a
specific part thereof, as the
case maybe. The attestation
must be under the official seal
of the attesting office, if there
be any, or if he be the clerk of
court having a seal, under the
seal of such court.
Case: Wildvalley Shipping vs. Court of
Appeals
Facts: Due to the negligence of the
Venezuelan Pilot, the Philippine Roxas ran
aground Orinoco River and obstructed the
vessel owned by Wildvalley. A claim for
damages was filed by Wildvalley before RTC
with a prayer that a Venezuela Law to apply
since the owner of the vessel is liable for the
negligence of the compulsory pilot, which is
not under the Philippine Law.
Issue: Whether Venezuela Law is applicable.
Decision: No.
1. Said written laws were not proven in
the manner provided under Rule 132
of the Rules of Court. Only a
photocopy of the said rules was
likewise presented as evidence.
CONFLICT OF LAWS
Book by Galahad Pe Benito
2. The requirement provided under the
Rules of Court is not mere technicality
but it is intended to justify the giving
of full faith and credit to the
genuineness of a document in a
foreign country. According to the
weight of authority, when a foreign
statute is involved, the best evidence
rule require that it be proved by a
duly authenticated copy of the
statute.
3. The Venezuelan law was not pleaded
for the lower court. A foreign law is
considered to be pleaded if there is an
allegation in the pleading about the
existence of the foreign law, its import
and legal consequence on the event or
transaction in issue.
Case: Manufacturers Hanover Trust Co.
vs. Guerrero (2003)
Facts: Guerrero filed a complaint against
Hanover for damages arising from illegally
withheld taxes and illegal conversion of account.
Hanover, in its answer, presented the affidavit of
a New York Attorney, Allyssa Walden, which
essentially stated that New York was the
governing law for the contract, and that said law
barred Guerrero’s claim.
Issue: Was the New York Law proved by the
Walden affidavit?
Decision: No. The citations in the Walden
affidavit do not constitute proof of the official
records or decisions of the US Courts. While the
Bank attached copies of some of the copies do
not comply with Section 24 Rule 132 on proof of
official records or decisions of foreign courts.
Thus, the Bank has only alleged, but has not
proved, what New York Law and Jurisprudence
are on the matters at issue.
Case: Edi-staff Builders International vs.
NRLC
Facts: Gran was terminated from and upon
return to the Philippines, he sued EDI for illegal
dismissal. EDI contended that Saudi Labor Laws
should apply in the resolution of Gran’s
complaint.
Issue: Whether Saudi Labor laws should govern
Gran’s dismissal from employment.
Decision: No. Unfortunately for petitioner, it did
not proved pertinent Saudi laws on the matter;
thus, International Law doctrine of presumed
LAGURA, J.
MIDTERMS REVIEWER (Atty. Cada)
identity approach or Processual presumption
comes into play. When a foreign law is not
pleaded, or if pleaded, is not proved, the
presumption is that foreign law is the same as
ours.
1. In the present case, the employment
contract signed by Gran specifically states
that Saudi Labor Laws will govern matters
not provided for in the contract (i.e.
specific causes for termination,
termination procedures). Being the law
intended by the parties to apply to the
contract, the Saudi Labor Laws should
govern.
2. In international law, the party who wants
to have a foreign law applied to a dispute
has the burden of proving the foreign law.
The foreign law is to be treated as a
question of fact to be properly pleaded
and proved as the judge or labor arbiter
cannot take judicial notice of a foreign
law. He is presumed to know only
domestic or forum law.
EXCEPTIONS to proof of foreign laws
1. Presentation of a foreign-licensed attorney
who will testify in open court concerning
her knowledge of the law in question
2. Administrative agencies recognizing
foreign laws without proof. They are not
bound by technical rules of procedure
3. Lack of objection to the improper
presentation by one party of proof of
foreign law.
4. Recognition of a universally known law or
a law whose existence is known to most
men due to its universal application
5. Laws appearing in official websites
CASE: Norse Management Co. vs. National
Seamen Board (NSB)
Facts: Abordo died from a stroke while in the
course of his employment with Norse. His wife
instituted an action to claim of appurtenant
benefits in connection with the death of her
husband. She contended that the law of
Singapore should govern his claim. This was
upheld by the NSB and Ministry of Labor.
Issue/s:
1. Whether the Singapore Law or Philippine
Law governs the grants of benefits to
Abordo’s wife? Yes.
2. Whether the National Seamen Board can
take judicial notice of Singapore Law
absent proof thereof? Yes. It is safe to
CONFLICT OF LAWS LAGURA, J.
Book by Galahad Pe Benito MIDTERMS REVIEWER (Atty. Cada)

assume that the Board is familiar with

pertinent Singapore maritime laws
relative to workmen’s compensation.
Moreover, NSB may apply the rule on
judicial notice because in
administrative proceedings, technical
rules of procedure do not strictly
apply.

SCRIVENER’S ERROR
This means failure of the agreement to express
the intention of the parties (i.e. wrong
terminology, missing terminology or simply
clerical error). Because there is failure to express
the true intent of the parties, the agreement os
interpreted according to its plain or obvious
meaning.

CASE: Hongkong and Shanghai Banking

Corporation vs. Sherman et at. (1989)

Decision: The parties did not thereby stipulate

that only the courts of Singapore, to the
exclusion of all the rest, has jurisdiction. In the
ordinary habits of life, anyone would be
disinclined to litigate before a foreign tribunal,
with more reasons as a defendant. However, in
this case, private respondent are Philippine
residents who would rather face a complaint
against them before a foreign court and in the
process incur considerable expenses, not to
mention convenience. Private respondents’ stance
is hardly comprehensible, unless their ultimate
intent is to evade, or at least delay the payment
of a just obligation.

A state is competent to take hold of any judicial

matter it sees fit by making its courts and
agencies assume jurisdiction over all kinds of
cases brought before them.