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Conflict of Laws (Case Digest 1ST Batch)
Conflict of Laws (Case Digest 1ST Batch)
COURT OF APPEALS,
MILAGROS P. MORADA and HON. RODOLFO A. ORTIZ, in his capacity as
Presiding Judge of Branch 89, RTC of Quezon City
G.R. No. 122191 October 8, 1998
FACTS: Petitioner SAUDIA hired private respondent MORADA as a flight
attendant in 1988, based in Jeddah. On 1990, while on a lay-over in Jakarta,
Indonesia, she went to party with 2 male attendants, and on the following
morning in their hotel, one of the male attendants attempted to rape her. She
was rescued by hotel attendants who heard her cry for help. The Indonesian
police arrested the 2.
What followed was a series of interrogations from the Saudi Courts which she
did not understand as this was in their language. In 1993, she was surprised,
upon being ordered by SAUDIA to go to the Saudi court, that she was being
convicted of (1) adultery; (2) going to a disco, dancing and listening to the
music in violation of Islamic laws; and (3) socializing with the male crew, in
contravention of Islamic tradition, sentencing her to five months
imprisonment and to 286 lashes. Only then did she realize that the Saudi
court had tried her, together with the 2, for what happened in Jakarta.
SAUDIA denied her the assistance she requested, But because she was
wrongfully convicted, Prince of Makkah dismissed the case against her and
allowed her to leave Saudi Arabia. Shortly before her return to Manila, she was
terminated from the service by SAUDIA, without her being informed of the
cause.
HELD: YES.
On the presence of a “Foreign Element” in the case: 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”. The presence of a foreign element
is inevitable since social and economic affairs of individuals and associations
are rarely confined to the geographic limits of their birth or conception. The
forms in which this foreign element may appear are many. The foreign
element may simply consist in the fact that one of the parties to a contract is
an alien or has a foreign domicile, or that a contract between nationals of one
State involves properties situated in another State. In other cases, the foreign
element may assume a complex form.
In the instant case, the foreign element consisted in the fact that private
respondent Morada is a resident Philippine national, and that petitioner
SAUDIA is a resident foreign corporation. Also, by virtue of the employment
of Morada with the petitioner Saudia as a flight stewardess, events did
transpire during her many occasions of travel across national borders,
particularly from Manila, Philippines to Jeddah, Saudi Arabia, and vice versa,
that caused a “conflicts” situation to arise.
COURT disagrees with MORADA that his is purely a domestic case. However,
the court finds that the RTC of Quezon City possesses jurisdiction over the
subject matter of the suit. Its authority to try and hear the case is provided for
under Section 1 of Republic Act No. 7691, to wit:
BP129 Sec. 19. Jurisdiction in Civil Cases. — Regional Trial Courts shall
exercise exclusive jurisdiction:
xxx xxx xxx
(8) In all other cases in which demand, exclusive of interest, damages of
whatever kind, attorney`y’s fees, litigation expenses, and cots or the value of
the property in controversy exceeds One hundred thousand pesos
(P100,000.00) or, in such other cases in Metro Manila, where the demand,
exclusive of the above-mentioned items exceeds Two hundred Thousand pesos
(P200,000.00). (Emphasis ours)
xxx xxx xxx
Section 2 (b), Rule 4 of the Revised Rules of Court — the venue, Quezon City,
is appropriate:
Sec. 2 Venue in Courts of First Instance. — [Now Regional Trial Court]
(a) xxx xxx xxx
(b) Personal actions. — All other actions may be commenced and tried where
the defendant or any of the defendants resides or may be found, or where the
plaintiff or any of the plaintiff resides, at the election of the plaintiff.
Weighing the relative claims of the parties, the court a quo found it best to
hear the case in the Philippines. Had it refused to take cognizance of the case,
it would be forcing plaintiff (private respondent now) to seek remedial action
elsewhere, i.e. in the Kingdom of Saudi Arabia where she no longer maintains
substantial connections. That would have caused a fundamental unfairness to
her.
Moreover, by hearing the case in the Philippines no unnecessary difficulties
and inconvenience have been shown by either of the parties. The choice of
forum of the plaintiff (now private respondent) should be upheld.
The trial court also acquired jurisdiction over the parties. MORADA through
her act of filing, and SAUDIA by praying for the dismissal of the Amended
Complaint on grounds other than lack of jurisdiction.
Considering that the complaint in the court a quo is one involving torts, the
“connecting factor” or “point of contact” could be the place or places where the
tortious conduct or lex loci actus occurred. And applying the torts principle in
a conflicts case, we find that the Philippines could be said as a situs of the tort
(the place where the alleged tortious conduct took place). This is because it is
in the Philippines where petitioner allegedly deceived private respondent, a
Filipina residing and working here. According to her, she had honestly
believed that petitioner would, in the exercise of its rights and in the
performance of its duties, “act with justice, give her due and observe honesty
and good faith.” Instead, petitioner failed to protect her, she claimed. That
certain acts or parts of the injury allegedly occurred in another country is of no
moment. For in our view what is important here is the place where the over-all
harm or the totality of the alleged injury to the person, reputation, social
standing and human rights of complainant, had lodged, according to the
plaintiff below (herein private respondent). All told, it is not without basis to
identify the Philippines as the situs of the alleged tort.
In applying “State of the most significant relationship” rule, to determine the
State which has the most significant relationship, the following contacts are to
be taken into account and evaluated according to their relative importance
with respect to the particular issue: (a) the place where the injury occurred;
(b) the place where the conduct causing the injury occurred; (c) the domicile,
residence, nationality, place of incorporation and place of business of the
parties, and (d) the place where the relationship, if any, between the parties is
centered.
As already discussed, there is basis for the claim that over-all injury occurred
and lodged in the Philippines. There is likewise no question that private
respondent is a resident Filipina national, working with petitioner, a resident
foreign corporation engaged here in the business of international air carriage.
Thus, the “relationship” between the parties was centered here, although it
should be stressed that this suit is not based on mere labor law violations.
From the record, the claim that the Philippines has the most significant
contact with the matter in this dispute, raised by private respondent as
plaintiff below against defendant (herein petitioner), in our view, has been
properly established.
Facts:
This case was the result of William Gemperle’s retaliatory act when
respondent spouses Paul andHelen Schenker filed a case against him for the
enforcement of Schenker's allegedly initial subscription to theshares of stock
of the Philippines-Swiss Trading Co., Inc. and the exercise of his alleged pre-
emptive rights tothe then unissued original capital stock of said corporation
and the increase thereof, as well as for anaccounting and damages. Petitioner
alleged that the said complaint tainted his name as a businessman. Hethen
filed a complaint for damages and prays for the retraction of statements made
by Helen Schenker.Summons was personally served to Helen Schenker but
not to Paul Schenker. Helen then filed ananswer with a counterclaim, but Paul
Schenker filed a motion to dismiss arguing that the court never
acquiredjurisdiction over his person since admittedly, he is a Swiss citizen,
residing in Zurich, Switzerland, and has notbeen actually served with
summons in the Philippines.
Issue:
Whether or not the court acquired jurisdiction over the person of Paul
Schenker.
Ruling:
Idonah Perkins filed a demurrer thereto on the ground that “the court has no
jurisdiction of the subject of the action,” because the alleged judgment of the
SC of the State of New York is res judicata. Petitioner’s demurrer was
overruled, thus this petition.
ISSUE:
WON in view of the alleged judgment entered in favor of the petitioner by the
SC of New York and which is claimed by her to be res judicata on all questions
raised by the respondent, Eugene Perkins, the local court has jurisdiction over
the subject matter of the action.
RULING:
By jurisdiction over the subject matter is meant the nature of the cause of
action and of the relief sought, and this is conferred by the sovereign authority
which organizes the court, and is to be sought for in general nature of its
powers, or in authority specially conferred. In the present case, the amended
complaint filed by the respondent, Eugene Perkins alleged calls for the
adjudication of title to certain shares of stock of the Benguet Consolidated
Mining Company and the granting of affirmative reliefs, which fall within the
general jurisdiction of the CFI- Manila. Similarly CFI- Manila is empowered to
adjudicate the several demands contained in petitioner’s crosscomplaint.
Idonah Perkins in her crosscomplaint brought suit against Eugene Perkins
and the Benguet Consolidated Mining Company upon the alleged judgment of
the SC of the State of New York and asked the court below to render judgment
enforcing that New York judgment, and to issue execution thereon. This is a
form of action recognized by section 309 of the Code of Civil Procedure (now
section 47, Rule 39, Rules of Court) and which falls within the general
jurisdiction of the CFI- Manila, to adjudicate, settle and determine.
The petitioner expresses the fear that the respondent judge may render
judgment “annulling the final, subsisting, valid judgment rendered and
entered in this petitioner’s favor by the courts of the State of New York, which
decision is res judicata on all the questions constituting the subject matter of
civil case” and argues on the assumption that the respondent judge is without
jurisdiction to take cognizance of the cause. Whether or not the respondent
judge in the course of the proceedings will give validity and efficacy to the New
York judgment set up by the petitioner in her cross-complaint is a question
that goes to the merits of the controversy and relates to the rights of the
parties as between each other, and not to the jurisdiction or power of the
court. The test of jurisdiction is whether or not the tribunal has power to enter
upon the inquiry, not whether its conclusion in the course of it is right or
wrong. If its decision is erroneous, its judgment can be reversed on appeal; but
its determination of the question, which the petitioner here anticipates and
seeks to prevent, is the exercise by that court and the rightful exercise of its
jurisdiction.
Petition denied.
FACTS
Brand Marine Services, Inc. (BMSI), a corporation duly organized & existing
under the laws of Connecticut, &Stockton Rouzie, Jr., an American citizen,
entered into a contract
BMSI hired Rouzie as its representative to negotiate the sale of services in
several government projects in thePhilippines for an agreed remuneration of
10% of the gross receipts.
Rouzie secured a service contract w/ the Rep. of Phil. on behalf of BMSI for
the dredging of rivers affected by the Mt.Pinatubo eruption & mudflows.
Rouzie filed before the NLRC a suit against BMSI and Rust International
(Rust) for alleged nonpayment of commissions, illegal termination, & breach
of employment contract.
Upon appeal, the NLRC reversed & dismissed Rouzie’s complaint on the
ground of lack of jurisdiction.
Rouzie filed an action for damages before the RTC of La Union (where he was
a resident) against Raytheon International. He reiterated that he was not paid
the commissions due him from the Pinatubo dredging project w/c hesecured
on behalf of BMSI. The complaint also averred that BMSI, RUST and
Raytheon had combined & functioned as 1 company.
Raytheon’s contention: The written contract between Rouzie & BMSI included
a valid choice of law clause, that is, that the contract shall be governed by the
laws of the State of Connecticut. It also mentions the presence of foreign
elements in the dispute, namely that the parties & witnesses involved are
American corporations & citizens & the evidence to be presented is located
outside the Philippines, that renders our local courts inconvenient forums.
The foreign elements of the dispute necessitate the immediate application of
the doctrine of forum non conveniens
W/N the complaint should be dismissed on the ground of forum non
conveniens.
b) NO.
Raytheon’s averments of the foreign elements are not sufficient to oust the
RTC of its jurisdiction over the case and the parties involved.
On December 19, 1986, the petitioner checked in at the NOA counter in the
San Francisco airport for his scheduled departure to Manila. Despite a
previous confirmation and re-confirmation, he was informed that he had no
reservation for his flight from Tokyo to Manila. He therefore had to be wait-
listed.
On March 12, 1987, the petitioner sued NOA for damages in the RTC of
Makati. On April 13, 1987, NOA moved to dismiss the complaint on the
ground of lack of jurisdiction, citing Article 28(1) of the Warsaw Convention,
reading as follows:
Art. 28. (1) An action for damage must be brought at the option of the plaintiff,
in the territory of one of the High Contracting Parties, either before the court
of the domicile of the carrier or of his principal place of business, or where he
has a place of business through which the contract has been made, or before
the court at the place of destination.
The private respondent contended that the Philippines was not its domicile
nor was this its principal place of business. Neither was the petitioner’s ticket
issued in this country nor was his destination Manila but San Francisco in the
United States.
Lower court granted the dismissal, CA affirmed.
ISSUE: WON the Philippines has jurisdiction over the case. (Issue raised by
the party is WON the provision of the Warsaw convention was constitutional)
FACTS:
Engracio Palanca was indebted to El Banco and he had his parcel of land as
security to his debt which amounted to 218, 294. 10 Php while his property was
worth 75, 000 Php more than what he owed. Due to his failure to pay, El Banco
executed an instrument to mortgage the former's property. However, Engracio
left for Amoy, China and eventually died there. The mortgagor then instituted
foreclosure proceeding but since defendant is a non-resident, it was necessary to
give notice by publication.
The Clerk of Court was also directed to send copy of the summons to the
defendant's last known address but it was not shown whether the Clerk complied
with this requirement. Nevertheless, after publication in a newspaper of the City
of Manila, the cause proceeded and judgment by default was rendered.
The decision was likewise published and afterwards sale by public auction was
held with the bank as the highest bidder and the same was confirmed by the
court. However, about seven years after the confirmation of this sale, a motion
was made by Vicente Palanca, as administrator of the estate of the original
defendant, wherein he requested the court to set aside the order of default and
the judgment, and to vacate all the proceedings subsequent thereto.
On the ground that the order of default and the judgment rendered thereon were
void because the court had never acquired jurisdiction over the defendant or over
the subject of the action.
ISSUE:
Whether or not the court acquired jurisdiction over the defendant and the subject
matter or the action.
HELD:
Where the defendant in a mortgage foreclosure lives outside of the country and
refuses to appear or otherwise submit himself to the authority of the court, the
jurisdiction of the latter is limited to the mortgaged property, with respect to
which jurisdiction of the court is based upon the fact that the property is located
within the district and that the court, under the provisions of law applicable in
such cases is vested with the power to subject property to the obligation created
by the mortgage. In such case personal jurisdiction over the non-resident
defendant is non-essential and in fact cannot be acquired.
EN BANC
The purposes of the sixth section, requiring the certificate, was not
to prevent the persons named in the second article of the treaty
from coming into the country, but to prevent Chinese laborers from
entering under the guise of being one of the classes permitted by
the treaty. It is the coming of Chinese laborers that the act is aimed
against.
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In the case of the minor children, the same result must follow as in
that of the wife. All the reasons which favor the construction of the
statute as exempting the wife from the necessity of procuring a
certificate apply with equal force to the case of minor children of a
member or members of the admitted classes. They come in by
reason of their relationship to the father, and whether they
accompany or follow him, a certificate is not necessary in either
case. When the fact is established to the satisfaction of the
authorities that the person claiming to enter, either as wife or minor
child, is in fact the wife or minor child of one of the members of the
class mentioned in the treaty as entitled to enter, them that person
in entitled to admission without the certificate.
It has been suggested that such a ruling opens the door to fraud
and evasion, but we are not much impressed with the force of this
suggestion, knowing as we do that the immigration authorities have
been furnished by the law with peculiarly effective machinery for its
enforcement, well calculated to defeat any attempt to make an
unauthorized or improper use of so manifestly reasonable an
exception from the literal construction and application of its general
provisions.
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Ruling: