Professional Documents
Culture Documents
CONFLICT OF LAWS
Public International Private
By: Atty. Enrique V. dela Cruz, Jr.1 Law International Law
1
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
Dutch jurists led by Huber developed territorial principle Conflict of Laws was included in law curriculum by UP College
where the laws of every state may operate only within its of Law in 1911 (no less!). Until 1950s, law teachers
territorial limit but such sovereign state may recognize predominantly used foreign law books and decisions by
that a law, which operated in the country of its origin, American courts.
shall retain force everywhere provided that it will not
prejudice its subjects. In the Bar, it used to be a separate subject along with PIL but
when it was revised, PIL was included in Pol Law while PRIL
Comitas Gentium was readily accepted because of was merged with Civil Law. But, this does not mean that PRIL
increasing international transactions. is a part of civil law as this mindview tends to limit the
perspective and scope of analysis required for conflicts
Ius Commune, applied by Italian and French jurists, was a problems.
supranational law based on Roman law and which became
the continental European common law. Now, more problems in Conflict have arisen esp. with Filipinos
engaging in foreign business transactions, and in international
Nations codified their national laws which included conflict air transport and foreign tort claims and labor contracts for
of laws provisions. OFWs.
1. Roman code codified principles of ius gentium. Although many Hague Conventions on Private International
2. Code of Napoleon contained specific rule on personal Law were concluded since 1951, which dealt with issues on:
law of individual, this was followed by several codes Personal status
(Netherlands, Romania, Italy, Portugal, Spain) Patrimonial family status
3. The German civil Code contained many provisions on Patrimonial status such as agency and trusts
Conflict of Laws. The Philippines is a signatory to the Convention on Recognition
4. Switzerland also enacted Laws on cases involving foreign of Foreign Judgment on Civil and Commercial Matters and has
elements. ratified the 1993 Convention in Respect of Inter-Country
5. Greece enacted a Civil Code with CL rules which became Adoption only.
a model in other countries
6. The Code of Bustamante (in South America) was
patterned after the Code of Napoleon C. Treatises, Commentaries and Studies of
Learned Societies
Conflict Laws of the Philippines In interpreting statutes and codes involving CL, courts resort to
works of distinguished jurists and studies of learned societies.
Spanish Civil Code was enforced in the Philippines on
December 7, 1889 until the Philippine Civil Code’s effectivity on Distinguished writers in continental Europe include Huber
August 30, 1950 which contained the provisions on conflict of Manreas, Savigny (whose work was translated into English by
laws of the earlier code. Guthrie), and Weiss.
Spain’s Code of Commerce, having some provisions on foreign Distinguished American and English writers, on the other hand,
transactions, were also enforced in the Philippines on Dec 1, include Beale, Cavers, Cheatham, Currie, Ehrenzweig,
1888. Goodrich, Gussbaum, Story, Wharton, Cheshire, Graveson.
One basic source of law is the 1987 Constitution which The American Law Institute published 2 studies on CL:
contains principles on nationality and comity. Restatement of the Conflict of Laws and a Second Restatement
with William Reese as Reporter.
Special statutes were also enacted to govern cases with
foreign elements, to wit:
D. Judicial decisions
1. Corporation Code
2. General Banking Act Decisions of courts are the most important source of CL rules
3. Foreign Currency System Act and form the main bulk of source of conflict rules.
4. Phil Foreign Law Guarantee Corp
5. Retail Business Regulation Act According to Graveson: “This branch of law is more completely
6. Anti-Dummy Law judge-made than almost any other. In its application, judges
7. Nationalization of Rice and Corn Industry Act have to deal with “All Manner of People” more than any other
8. Insurance Code branch. The claim of justice for right as a basis for conflict of
9. IP Code laws is supported not only by the terms of the judicial oath but
10. Patent Law by judicial dicta in judgments”.
11. Trademark Law
12. COGSA
13. Salvage Law PART TWO: JURISDICTION AND CHOICE OF LAW
14. Public Service Act
15. Civil Aeronautics Act
16. Phil Overseas Shipping Act IV. Jurisdiction
17. Investment Incentives Act
18. Export Incentives Act Jurisdiction may mean either a) judicial or b) legislative
19. RA 7722 jurisdiction. (This part talks of judicial jurisdiction)
The Philippines has entered into a number of treaties and Legislative JD – the ability of the state to promulgate laws and
international conventions which deal with private international enforce them on all persons and property within its territory.
law since it became a Republic.
Some of these treaties/conventions are: 4 Major Questions in Analyzing a Conflict of Laws Problem:
1. Convention on Intl Civil Aviation, 1) Has the court JD over the person of the defendant or
2. Warsaw Convention, over his property?
3. Convention on Offenses Committed on Board Aircraft
4. Convention on the Suppression of Unlawful 2) Has the court JD over the subject matter
5. Acts against Civil Aviation (“competency”)?
6. UN Convention COGSA
7. Convention on Consent to Marriage, etc 3) Has the suit been brought in the proper venue in
8. Convention on Traffic of Persons cases where a foreign element is involved?
9. Convention on Elimination of Discrimination against
Women 4) Is there a statute or doctrine under which a court
10. Convention on Political Rights of Women otherwise qualified to try the case may or may not
11. IC on the Suppression of Traffic of Women and Children refuse to entertain it?
12. Convention on World Intellectual Property Organization
13. Berne Convention on Protection of Literary and Artistic
Works A. Basis of Exercise of Judicial Jurisdiction
14. Paris Convention on Protection of Industrial Property.
Bases of Judicial Jurisdiction (3 groups):
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
2) JD over the res (based on forum-property contacts) b) the institution of legal proceedings wherein the
court’s power over the property is recognized and
3) JD over the subject matter made effective
This is acquired by the voluntary appearance of a party and his Basis of exercise of JD: the presence of the property within the
submission to authority. territorial JD of the forum.
Over the person of the plaintiff: acquired the moment he Quasi in rem JD: affects only the interests of particular persons
invokes the aid of the court by filing a suit. in that thing (ex. Quieting of title). (actions against a person in
respect of the res)
Over the person of the defendant: acquired when he enters
his appearance or is served with the legal process within the In these 2 proceedings, all that due process requires is that
state. the defendant be given adequate notice and opportunity to be
heard (which are both met by service of summons by
When he or his lawyer appears in court, he gives consent to publication).
the forum’s exercise of JD over him, except where the
appearance is for the purpose of protesting the JD over him.
Pennoyer vs. Neff
A non-resident plaintiff who files a suit is deemed to consent to (1878)
the court’s exercise of JD over subsequent proceedings arising FACTS: Neff, a California resident, owned land in Oregon
out of his original cause of action (counterclaims). which was sold under a Sheriff’s deed to satisfy a money
judgment against him. The service of summons was made
JD over the defendant may be had by personal or substituted by publication. He is suing for recovery of said land,
service of summons. alleging that the sale was invalid for lack of JD of the
Oregon court over him.
Gemperle vs. Schenker
HELD: Substituted services by publication, or in any
(1967)
other authorized form, may be sufficient to inform parties
FACTS: Paul Schenker (Swiss citizen and resident) filed a
of the object of the proceedings taken where property is
complaint against Gemperle through his wife Helen
once brought under the control of the court by seizure or
Schenker, for enforcement of subscription to shares of
some equivalent act to any proceedings authorized by law
stock. Gemperle filed a suit against Paul for damages,
upon such seizure for its condemnation and sale.
saying that Paul caused allegations to be published
attacking his reputation and bringing him into public
But where the entire object of the action is to determine the
hatred and discredit as a businessman. Schenker’s defense:
personal rights and obligations of defendants, that is, where
court has no JD over the person of Paul.
the suit is merely in personam, constructive service in this
form upon a non-resident is ineffectual for any purpose.
HELD: Jurisdiction was acquired by the lower court over
the person of Paul through service of summons addressed to
him upon Helen, it appearing from the answer that she is The important thing to prove is what kind of action is involved
the representative and attorney-in-fact of her husband in (to determine sufficiency of form of service to be used)
the civil case.
the corporation with defend the particular suit which is brought The change in the conceptual foundation of JD from territorial
there. power to fairness does not significantly affect proceedings in
rem, which are suits where the property itself is the object of
Its “presence” can be manifested only by such activities the controversy. The physical presence of the property within
carried on in its behalf by those who are authorized to act the state establishes the state’s paramount interest in
for it. adjudicating a claim over it and provides the necessary
minimum contacts.
Mullane vs. Central Hanover Bank & Trust Co. Long-Arm Statutes
(1950)
Long-arm statutes specify the kinds of contacts upon which JD
FACTS: In an action for judicial settlement of accounts of
will be asserted. Some long-arm statutes broadly authorize
Central Hanover Bank as trustee of a common trust fund,
courts to assert JD in any case not inconsistent with the
some of the beneficiaries who are non-residents of NY were Constitution, leaving it to the court to define its limitations on a
notified only by publication in a local newspaper. case-by-case basis.
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
FNC is not something that automatically applies; its HELD: The law of Nevada, being a foreign law, can only be
application rests in the sound discretion of the court proved in our courts in the form and manner provided for
by our Rules. However, it has been found that during the
in Wing On vs. Syyap. Prof. Pangalangan does not hearing for the motion of the widow Bohanan for
agree with the holding that “unless the balance is withdrawal of her share, the foreign law was introduced in
strongly in favor of the defendant, the plaintiff’s evidence by her counsel. In addition, the other heirs do not
choice of forum should rarely be disturbed”, dispute the provisions of the Nevada law. Under these
because in the first place, it was the plaintiff who circumstances, the pertinent laws of Nevada can be taken
chose that forum.
judicial notice of by the court, without proof of such law
_______________
having been offered at the hearing of the project of
partition.
2. Assume Jurisdiction
As the validity of the testamentary dispositions are to be
When the court assumes JD, it may apply forum law or foreign governed by the national law of the testator, the order of
law, although forum law should be applied whenever there is the court approving the project of partition in accordance
good reason to do so because the forum law is the basic law. with Nevada law must be affirmed.
1) A specific law of the forum decrees that internal a) The foreign law is contrary to an important public
law should apply policy of the forum
b) The foreign law is penal in nature
Examples of this are Art. 16 of Civil Code ( lex nationale c) The foreign law is procedural in nature
governs testate and intestate succession of the person whose d) The foreign law purely fiscal or administrative in
succession is under consideration); Art. 829 of the Civil Code nature
(revocation of wills outside RP); and Art. 819 (prohibition on e) The application of the foreign law will work
joint wills by Filipinos). undeniable injustice to the citizens of the forum
f) The case involves real or personal property
Example: prohibitory or mandatory laws of the situated in the forum
forum g) The application of the foreign law might
endanger the vital interest of the state
2) The proper foreign law was not properly pleaded h) The foreign law is contrary to good morals
and proved
Our courts may not take judicial cognizance of any foreign law; V. Choice of Law
hence, failure to plead and prove foreign law leads to the
presumption that it is the same as forum law. A. The Correlation between Jurisdiction and
Choice of Law
Under the Rules of Court, the foreign law may be
proved by: 1) The factors that justify exercise of judicial
a) official publication jurisdiction maybe the same factors used to
b) certification form the officer with official custody, determine choice of law
under seal, and the Phil. Embassy must certify
that such officer has official custody, etc.: that it 2) if the forum applies its internal law because it has
is the law in force at the time etc., etc. a real interest, the outcome of the case will be
foreordained by the forum
- plaintiff will choose forum who has real interest in
Fleumer vs. Hix applying its internal law
(1930)
FACTS: Fleumer, the special administrator of the estate of 3) generally, forum will apply its internal law so
Hix, appealed the denial of the probate of Hix’s will, plaintiff will bring suit where internal law is
alleging that since the will was executed in West Virginia favorable to him
by a resident therein, West Virginia law should govern.
BUT these are 2 diff. concepts. A court may exercise
jurisdiction but apply foreign law or not exercise jurisdiction
HELD: The courts of the Philippines are not authorized to
but the state’s internal law will be applied.
take judicial notice of the laws of the various States of the
American Union. Such laws must be proved as facts. Here
the requirements of law were not met. There was no B. Approaches to Choice of Law
showing that the book from which an extract was taken
was printed or published under the authority of the state of Ideally, the object of all choice of law theories must be justice
West Va. as provided in the Code of Civil Procedure; nor and predictability.
was the extract from the law attested by the certificate of
the officer having charge of the original. 1. Traditional Approaches
- theories that emphasize simplicity, convenience and
uniformity
Philippine Trust Co. vs. Bohanan
(1960) a. vested rights theory
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
- advanced by Prof. Beale (1st Restatement) 2) compare carefully the proffered rule of law & the
- an act done in a foreign jurisdiction gives rise to a result of its application with the rule of the forum
right if the laws of that state provides so. The right & its effect
vests and he can bring suit in any forum he chooses. 3) appraise these results from the standpoint of
- The forum refers law of the place of the “last act” justice between the litigants or of considerations
necessary to complete the cause of action. (place of of social policy
injury)
- If place of the last act creates no legal right, although 2. Modern Approaches
forum court creates such right if act is done within its
territory, it will not enforce the right. a. Place of the Most Significant Relationship
performance, the place of business of B & the agents and 1) the general policies of the state beyond those
the place where support are being made compared to NY reflected in substantive law
whose contacts are of less weight & significance. (place of 2) policies and values reflecting effective and
liaison & residence of H & child) harmonious relationship between states
ex. Reciprocity, advancement of multistate
Criticisms to approach: no standard to evaluate the relative activity, protecting justifiable expectations,
significance/importance of each contact such that court may evenhandedness and effectiveness.
use approach to support any preconceived result without - after determining these policies, court should then
explaining its real motives. weigh the relative strength of a state policy
- HOW? Court should consider whether the law of a
b. Interest Analysis state reflects an “emerging” or “regressing” policy.
- resolve conflicts cases by looking at the policy behind e. Leflar’s Choice-Influencing Considerations
the laws of the involved states and the interest each
state has in applying its own law. 5 major choice-influencing considerations
- Tasks of the court: 1) predictability of results
1st: determine whether the case involves a true, false 2) maintenance of interstate and int’l order
or apparent conflict (false conflict: only one state has 3) simplification of the judicial task
an actual interest in having the law applied and the 4) application of the better rule of law
failure to apply the other state law will not impair its 5) advancement of the forum’s governmental
policy) interest
2nd: if there is apparent or true conflict, court should - court should prefer a law that make good
take a second look on the policies and interests of the socioeconomic sense and are sound in view of
states. If only one has a real interest, the other is present day conditions
insubstantial, then there is false conflict. If both have - Criticism: no principled or objective standard to
real interests in applying their law, then the apparent determine “better rule”.
conflict is a true conflict.
Babcock vs. Jackson Traditional approaches do not consider policy; all modern
(1963) approaches look at policy.
FACTS: Babcock & Jackson, NY residents, met a car ______________
accident in Ontario thru J’s fault. B sued J in NY for
damages. Ontario bars recovery under a guest statute. NY
does not have a similar rule. VI. The Problem of Characterization
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
foreign country, the solemnities established by Philippine laws B) Principal authorizes a person to act as his agent in another
shall be observed in their execution. country. Agent commits a negligent act. What law will
determine the principal’s liability?
Prohibitive laws concerning persons, their acts or property, and It depends on the court’s characterization of the case as:
those which have for their object public order, public policy
and good customs shall not be rendered ineffective by laws or 1. Contractual: law of the place where the contract of
judgments promulgated, or by determinations or conventions agency was entered into; or
agreed upon in a foreign country.
2. Tortious: law of the place where tortuous conduct
The rules specify geographical location in accordance with or injury occurred
traditional approach. The problem with this: inherent rigidity,
unjust decisions.
2. Substance-Procedure Dichotomy
Solution: Characterization, Renvoi, Escape devices
Directs the court to the extent it will apply foreign law.
Characterization: the process by which a court assigns a
disputed question to an area in substantive law. It is a part of If issue substantive: court may apply foreign law
legal analysis and a pervasive problem since at least 2 If issue procedural: follow forum law
jurisdictions with divergent laws are involved.
Why apply forum law to matters of procedure?
Two Types of Characterization: One of the main goals of a rational system of CL rules: Rights
& Duties of parties arising from a legal situation shall not be
1. Subject-matter Characterization substantially varied because the forum in w/c action is
brought.
This calls for classification of a factual situation into a legal
category. It is significant in a single-aspect method because Courts of all civilized states now seek to protect parties, by
the legal category to which an issue is assigned determines referring to foreign law, against a substantial change of
governing law position because of fortuitous circumstance that suit was
brought in that forum.
Gibbs vs. Gov’t. of PI
(1933) The means provided for compulsion, or the limitation upon
FACTS: Spouses Allison & Eva were residents & citizens of compulsion are in most cases of equal practical importance to
the declaration of the validity of the plaintiff’s claim.
California owning parcels of land in Manila. Eva died.
Allison, as administrator files petition to declare lands in
Such all inclusive reference to foreign law is never made. It
his favor pursuant to California law. California Civil Code
would be too burdensome on the part of the forum and
provides that upon wife’s death previous to husband, administration of justice will be delayed. Thus, it is necessary
community property belongs absolutely to husband. to limit the scope of reference to foreign law.
HELD: California Civil Code will not apply. The law of the This limitation excludes phases of the case which make the
place where land is situated governs its descent, alienation administration of foreign law inconvenient or violative of local
&transfer & for the effect & construction of wills & other policy. In such instances, local rules of the forum are applied &
conveyances. are classified as matters of procedure.
The court would have to decide whether it is a Q relating to Other view: Correct result but arrived at using dubious
1. Legality & effects of adoption: law of state where method.
legal relationship of adoption was established or where the
adoption decree was granted shall govern; or Currie: The court availed of one of several escape devices -
characterization. It characterized the problem differently, such
2. Succession: adopter’s personal law shall prevail producing the result previously recognized as the sound result.
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
This device is not ideal. It is better if courts could expressly However, in the case of Cadalin, the court said that to enforce
state the considerations that helped them determine the the borrowed statute would contravene public policy on
results and indicate clearly how these considerations will be protection of labor.
used in other cases.
No objective standard has been suggested. An attempt to Cadalin vs. POEA Administrator
explain the court decision in terms of “demands of justice” or (1994)
“social policy” would create uncertainty & arouse criticism. FACTS: Cadalin et al. instituted a class suit with the POEA
for money claims arising from their recruitment by AIBC
Procedural issues are governed by forum law so that the court and BRII for pretermination of employment contracts.
will not be unduly burdened by task of studying peculiarities of Under Bahrain law where some of the complainants were
another legal system. It must be noted, though, that some deployed, the prescriptive period for claims arising out of a
matters cannot be clearly defined as procedural or substantive. contract of employment is one year.
Issue: Whether a contract declared ‘void’ by a stature still From depecer, which means “to dissect.”
subsists as a contract w/ the only effect of depriving party of a
remedy or mere evidence. Different aspects of a case involving a foreign element may be
Held: It was a word of substance because the statute provided governed by different systems of laws.
that the contract of sale of any interest in land shall be void
unless it was in writing ex contrario to a law stating that ‘no Von Mehren & Trautman: A man dies intestate domiciled in
action shall be brought’ of the requirement was not complied state A & w/ movable properties in State B.
with.
How will the man’s estate be divided?
State A conflict rules refer to laws of domicile. Intestate law of
2) Statutes of Limitations (SL) & Borrowing Statutes State B gives the widow a definite share in the estate of
deceased. But the determination of WON the woman claiming
(Sui Generis) the share is a “wife” is referred to family law, not laws on
Statutes of limitations are traditionally classified as ‘procedural’ succession.
because they only barred the legal remedy w/out impairing the
substantive right involved. Issues of law governing movable properties & successional
rights of spouse are of primary importance, embodying
Thus, a suit can still be maintained in another JD w/c has a substance of claim. Validity of marriage ‘affects solution
longer SL. However, certain SL’s have been classified as because it answers a preliminary or incidental Q.
substantive for conflicts purposes if providing a shorter period
for certain claim types falling w/in wider class covered by the The presence of an incidental Q is one instance which calls for
general SL. the employment of depecage.
Bournias vs Atlantic
Specificity test: Haumschild vs. Continental Casualty
(1959)
FACTS: Haumschild and Gleason were married in
Borrowing statutes Wisconsin, their domicile. Haumschild was injured in
California while riding a motor truck driven by Gleason.
“a statute under which one state may "borrow" a shorter
Their marriage was later annulled. An action for recovery
statute of limitations for a cause of action arising in another
of damages was filed by Haumschild in Wisconsin.
state.”
Continental alleges that under California law, a spouse is
Purpose: Many states, the Philippines among others, have immune from suit by the other spouse.
passed borrowing statutes to eliminate/discourage forum-
shopping. Forum court has the discretion to apply borrowing HELD: The law of the domicile ought to be applied in any
statutes or not. issue of incapacity to sue based upon family relationship.
The policy reason for denying the capacity to sue
Codal Civil Procedure Section 48 (preventing family discord) more properly lies within the
sphere of family law, where domicile usually controls the
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
The court decided that the law of the place of accident 4 Ways of Dealing with the Problem of Renvoi (Prof. Griswold):
(California) governed the issue of negligence while Wisconsin
law governed the issue of interspousal immunity. The 1) if the conflicts rules of the forum court refer the case
characterization process was taken one step further by not to the law of another state, it is deemed to mean only
limiting the classification to the case itself but likewise, to the the “internal” law of that state (internal law: that
issue arising from the case. which would be applied to a domestic case that has
no conflict-of-laws complications) – rejects the renvoi
The 1969 Restatement 2d adopted depecage & set out a
number of factors to be considered in choosing the applicable 2) the court may accept the renvoi and refer not just to
law: another state’s “internal” law but to the “whole” law
(includes choice-of-law rules applicable in multi-state
a. needs of interstate & international system cases)
Options which the forum court may do: Inapplicability of Renvoi in a False Conflict
a) accept the renvoi (apply forum law)
b) reject the renvoi (apply the internal law of the foreign US Restatement (Second) of Conflict of Laws: renvoi to be
state) used when there is a disinterested forum, to ensure that only
c) desistance/mutual disclaimer the laws advancing the policies of the interested states will be
d) “foreign court” theory applied. If the choice-of-law rules of the state to which
- the difficulty with the foreign court theory is that the reference is made refers the case back to the forum state, the
forum court will have to anticipate or guess how the court may use this situation to determine if both states have
foreign court will act. an interest in having their laws applied or if there is merely a
Renvoi is optional, based on the discretion of the false conflict.
court and the facts of the case.
_______________ False conflict:
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
In US, courts are allowed to take judicial knowledge of the law 2. apply law of the forum (courts conclude that by failing to
of sister states. adduce proof, parties acquiesce to the application of the
forum law since it is the basic law)
B. Proof of Foreign Law 3. assume foreign law is the same as law of the forum
(processual presumption)
Foreign law may be proved by presenting either of the ff:
1. an official publication of the law
2. a copy of the law attested by the officer having legal First approach: Dismiss the case
custody of the record or by his deputy. If the record
is not kept in the Philippines, it must be accompanied
with a certificate that such officer has the custody (by Walton vs. Arabian Oil Co.
the consular officer of the Phil embassy in said state (1956)
and authenticated by his seal of office) FACTS: Walton, US citizen, was injured in Saudi Arabia.
His complaint did not allege the Saudi Arabia law nor did
he proved the same during the trial. TC ruled in favor of
Proof of documents executed abroad: any public document
defendant as he did not take judicial notice of S. Arabian
executed abroad to be used in the Phils must be duly
authenticated by the Phil. consul attaching his consular seal
law.
Depositions of non-residents in a foreign country: they may be HELD: Because of failure to prove the foreign law, plaintiff
taken— loses.
1) on notice before a secretary of embassy or legation, Plaintiff has the burden of proving the law of Saudi Arabia
consul general, consul, vice-consul, or consular agent from which he shall base his claim because under NewYork
of the Phils. law, where action was instituted, lex loci delicti is the
substantive la applied in tort cases.
2) before such person or officer as may be appointed by A court abuses its discretion under the New York Civil Practice
commission or under letters rogatory. Act if it takes judicial notice of the foreign law when it is not
pleaded esp. when the party who had the burden to prove the
3) before such person which the parties have stipulated same has not assisted the court in judicially learning it.
in writing
The applicable tort principles necessary to establish
plaintiff’s claim are not rudimentary. In countries
PCIB vs. Escolin where common law does not prevail, these principles
(1974) may not exist or maybe vastly different.
FACTS: Case bet. the administrators of the estates of
Hodges spouses. W’s administrator sought the application
of Texas law. H’s administrator also used the Texas law but Second approach: apply forum law, conclude that parties
arrived at a different conclusion. acquiesce to its application.
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
3. By failing to prove French law, parties acquiesce to Thus, in the absence of proof, it may be presumed that the
apply forum law probate laws of China are the same as ours and the will in
The third presumption does not present any difficulties for question does not comply with our probate laws.
it to be universally applied regardless of the nature of the
controversy. This is more favored by the authorities and
has been followed in Sturm v. Sturm. CIR vs. Fisher
In CAB, Rights of the parties are to be determined by New (1961)
Jersey laws which permit recovery on the facts proven. FACTS: Spouses Stevenson are British subjects. H dies
leaving W as sole heir. CIR assessed estate tax on the whole
properties of the spouses because English law does not
Zalamea vs. CA recognize conjugal partnership.
(1993)
FACTS: Zalamea filed action for damages against TWA.
RTC awarded actual and moral damages. CA denied HELD: English law cannot be applied. The pertinent
award of moral damages because there was no fining of English law that allegedly vests in husband full ownership
bad faith and because overbooking was an allowed of properties acquired during the marriage was not proved
practice in US airlines. by CIR (petitioner). In the absence of proof, the Court is
justified in indulging in “processual presumption” in
HELD: CA was wrong. The US law or regulation presuming that the law of England on the matter is the
authorizing overbooking was not proved in accordance same as our law.
with our laws.
TWA relied solely on the statement of its agent that the
Code of Fed. Regulations of Civil Aeronautics Board Board of Commissioners vs. CID
allows overbooking. (1991)
No official publication of the said code was presented FACTS: Board sought the deportation of G who is alleged
as evidence. to be an alien. Marriages of G’s grandfather and of G’s
father all performed in China were not properly proven.
Written law maybe evidenced by an official publication thereof Only self-serving testimonies were allegedly presented.
or by a copy attested by the officer having legal custody of the Also, marriages are claimed to be void according to
record or by his deputy, accompanied by a certificate (made by Chinese law.
a Phil. consular officer and authenticated by his seal of office)
that such officer has legal custody.
HELD: In the absence of evidence to the contrary, foreign
laws are presumed to be the same as those of the Phils. In
Third approach: processual presumption
CAB, there being no proof of Chinese law on marriage, the
presumption arises. The Phils. adhere to the presumption of
Miciano vs. Brimo validity of marriage (A.220 FC) He who asserts the
(1924) marriage is not valid under our laws bears the burden of
FACTS: Action for partition of estate of Brimo, a Turkish proof to present the foreign law.
citizen. Oppositor claims that proposed partition is contrary
to Turkish law but he failed to prove & present evidence on In deciding whether to apply forum law or to dismiss the
the said Turkish law. case/rule against the party who failed to prove the foreign law ,
court must consider the ff: factors
HELD: In the absence of evidence on foreign law, they are
to be presumed the same as those of the Phils. Oppositor, a. degree of public interest involved
himself, acknowledges that the foreign law was not proven b. accessibility of foreign law materials to the parties
c. possibility that plaintiff is merely forum shopping
when he asked for opportunity to present evidence. He was
d. similarities between forum law and foreign law on the
granted ample opportunity to present competent evidence
issue involved
and there was no GAOD when the court refused to grant
him another opportunity.
15
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
“public policy technique”: court declines to give due course to State is not obliged to enforce the revenue law of another.
a claim existing under a foreign law because it considers the
nature of the claim unconscionable or its enforcement will Revenue laws affect a state in matters as vital to its interests
violate a fundamental principle of justice, good morals or some as penal laws. No court ought to hear a case which it cannot
deep-rooted tradition. prosecute without determining whether these laws are
consonant with its own notions of what is proper.
dismissal on the ground of public policy is not dismissal on the
merits and plaintiff can go elsewhere to file his claim. Opposition to exception: person should not be permitted to
escape his obligations in maintaining the government by
crossing state lines.
Pakistan Intl Airlines v. Ople
(1990)
FACTS: 2 Filipino stewardess-employees of PIA filed a case 5. Foreign law or judgment is contrary to Good
for illegal dismissal against their employer in DOLE. PIA’s Morals
defense is that under the contract of employment, the
parties agreed that the EE-ER relationship shall be “contra bonos mores” - acts having mischievous or pernicious
governed by the contract (which provided that Pakistan consequences or against true principles of morality.
ex. Hiring for killing, bribery of public officials, marriage
law shall apply) and not the Labor Code.
between ascendants and descendants
HELD: Public Interest standard was applied. Pakistan law
cannot be invoked to prevent the application of Phil labor 6. The application of Foreign law will work
laws and regulations to the subject matter of the case. The Undeniable Injustice to the Citizens of the
ER-EE relationship is much affected with public interest, Forum
such that otherwise applicable Phil laws and regulations
cannot be rendered illusory by the parties agreeing upon
some other law to govern their relationship. 7. The Foreign law is Penal in Character
Also, PIA did not undertake to plead and prove the
contents of the Pakistan law on the matter; it must therefore Statute is not “penal” not by what the statute is called by the
be presumed to be the same as applicable provisions of Phil legislature but whether it appears, in its essential character
law. and effect, a punishment of an offense against the public.
Criticisms: courts using public policy exception can disregard Penal statutes are all statutes which command or prohibit
the applicable law reached and replace it with forum law to certain acts, and establish penalties for their violation and even
arrive at its desired result without having to provide the those which, without expressly prohibiting certain acts, impose
rigorous legal analysis required to explain the shift. Courts a penalty upon their commission. Revenue laws are not classed
engage in “intolerable affectation of superior virtue”. as penal laws although there are authorities to the contrary.
16
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
Law of nationality first used in Napoleon Code, then in Austrian 3) Those born before January 17, 1973, of Filipino
Code, which said that laws concerning states & capacity mothers, who elect Philippine citizenship upon
govern all cities irrespective of residence. reaching the age of majority; and
17
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
The naturalization process was relaxed under Marcos’ regime. support for himself & his family in case of sickness,
Liberal method, summary inquiry. This, however, is no longer unemployment, disability to work.
in force.
o Requirement of ownership of real property: At
odds w/ Art XII, Sec. 7 Phil Constitution: “Save in
Qualifications for Applicants for Naturalization cases of hereditary succession, no private lands
shall be transferred or conveyed except to
1) Petitioner must not be less than 21 years of age on individuals qualified to acquire or hold lands of
date of hearing of petition the public domain.”
2) He must have, as a rule, resided in the Philippines for o Exceptions to prohibition on ownership of land:
a continuous period of not less than 10 years a) Save in cases of hereditary succession, no
private lands shall be transferred or conveyed except
o Why the 10 yr residence requirement? to individuals qualified to acquire or hold lands of the
So government can observe applicant’s public domain - Testamentary succession is not
conduct & ensure he imbibes principles & covered by the exception provided in the Constitution.
spirit of our Constitution. b) Sec. 2, BP 185 allowing a natural-born
citizen who lost his Filipino citizenship to be a
o When may period be reduced to 5 years? transferee of a private land for residential purposes
(not in excess of 1,000 sq. m. urban or 1 ha rural
a) applicant honorably held office under the Phil land)
gov’t. or under any of its political subdivisions c) SC broadened exception to prohibition by
b) applicant has established a new industry or applying In Pari Delicto doctrine, excluding from the
introduced a useful invention in the Phil ban the alien vendee who later becomes a naturalized
c) Married to a Filipino woman Filipino
d) Engaged as teacher in a public or recognized
private school not for exclusive instruction of o Additional exceptions thru judicial decisions have
children of persons w/ particular nationality in been criticized for inviting violation of the Constitution
any of the branches of education for a period of & disregarding a fundamental policy of allowing no
2 years one to reap benefits from an unlawful act.
e) Born in the Philippines
5) Must be able to speak & write English or Spanish &
3) Must be of good moral character, any one of the principal Philippine languages
& believe in the principles underlying the Phil Constitution
& 6) Must have enrolled his minor children of school age
in any of the public schools or recognized private
must have conducted himself in a proper & irreproachable schools where Phil history, government & civics are
manner during entire period of residence here in his taught or prescribed as part of curriculum during
relations w/ the constituted government as well as w/ the entire period of residence required of him, prior to
community in w/c he is living hearing of his petition for naturalization as citizen.
o “Proper & irreproachable” imposes a higher o Children must learn & imbibe customs, traditions &
standard of morality than “good moral ideals of Filipinos so they’ll become law-abiding
character” citizenship.
o How to prove “irreproachable conduct”? By
competent evidence such as testimony of 2 o Compliance & affirmative showing…otherwise, denied.
character witnesses well known in
community w/ high reputation for probity. o Non-compliance because of insufficient finances:
denied.
The law requires moral character of highest degree. Being
merely a “law-abiding citizen is inadequate.
Disqualification for Naturalization
4) Must own real estate in the Phil worth not less than
P5,000, Phil currency, or must have lucrative trade., General Rule: Burden of proving disqualification is upon the
profession, or lawful occupation state.
19
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
HELD: Under Sec. 15 of CA 473, an alien woman marrying candidacy. He now claims Filipino citizenship through a
a Filipino, native born or naturalized, becomes ipso facto a valid repatriation
Filipina provided she is not disqualified to be a citizen of
the Phils under Sec. of the same law. Likewise, an alien HELD: Frivaldo reacquired his Filipino citizenship and is
woman married to an alien who is subsequently now eligible to assume the office as governor. Law does not
naturalized here follows the Philippine citizenship of her specify any particular date or time when candidate must
husband the moment he takes his oath as Filipino, possess citizenship unlike that of residence and age. It can
provided, that she does not suffer from any of the also be said that Frivaldo’s repatriation retroacted to the
disqualifications under Sec. 4. date of his filing his application in Aug. 1994.
21
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
HELD: The permission of the Minister of the Interior of HELD: K is a stateless person. His testimony, aside from
China is required before a certificate of naturalization can being uncontradicted, is supported by the well-known fact
be issued in favor of Oh Hek How. The question of how a that the ruthlessness of modern dictatorships has scattered
Chinese citizen may strip himself of that status is throughout the world a large number of stateless refugees
necessarily governed by the laws of China, not that of the or displaced persons, without country and without flag.
Philippines. As a consequence, a Chinese national cannot Knowing the history, nature and character of the Soviet
be naturalized as a citizen of the Philippines, unless he has dictatorship, it would be technically fastidious to require
complied with the laws of China requiring previous further evidence of K’s claim that he is stateless than his
permission of its Minister of the Interior for renunciation of testimony that he owes no allegiance to the Russian
nationality. Communist government and, because he has been at war
with it, he fled from Russia to permanently reside in the
2. Statelessness Philippines.
Conventions to Alleviate Problems of Stateless Persons: A person may live in a place where he is not domiciled. To
acquire a domicile, there must be concurrence of
1) 1951 Geneva Convention on Status Refugees 1) intention to make it one’s domicile and
2) physical presence.
-provided some basic rights of stateless persons
“Residence” simply requires bodily presence. It is a relatively
2) 1954 UN Conference on the Elimination or Reduction of more permanent abode of a person, while residence applies to
Future Statelessness a temporary stay of a person in a given place (Koh vs. CA).
Major objective: Remedy situation of children born w/out In constructive domicile, there is no intent because
acquiring any nationality, i.e. when a child is born in a country the domicile is chosen by the law for the person
following jus sanguinis principle of parents who are citizens of
a jus soli country. The motive for leaving and the length of stay in the
new domicile is not relevant in the determination of
Convention mandates that: domicile of choice
*jus sanguinis country grant its nationality to a person born
w/in its territory if he would otherwise be stateless. Habitual residence: “bridge” between residence and
domicile
*jus soli country to extend its nationality to a person who _______________
would otherwise be considered stateless when one of his
parents is a citizen of the contracting state.
Caasi vs. CA
(1990)
Kookooritchkin vs. Solicitor General
FACTS: Miguel ran for mayor of Bolinao and won. His
(1948)
opponent filed a petition for disqualification, alleging that
FACTS; Kookooritchkin, a native-born Russian who claims
Miguel is a green card holder and hence, a permanent
to be a stateless refugee, filed a petition for naturalization.
resident of the US and not of Bolinao.
The petition was granted, for which the SolGen appealed,
saying that Kookooritchkin is not a stateless person.
22
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
HELD: Miguel’s possession of a green card disqualified 1) when the litigant is an alien whose country of origin
him from running for mayor. His application for immigrant follows the domiciliary principle; or
status and his possession of a green card are conclusive 2) where the situation concerns stateless persons, or
proof that he is a permanent resident of the US despite his those with dual or multiple nationalities; or
occasional visits to the Philippines. 3) when an alien domiciled in the Philippines executes a
will abroad.
A candidate who is a green card holder must have waived
his status as a permanent resident or immigrant of a foreign
C. General Rules on Domicile
country in order to be qualified to run for elective office in
the Philippines. In this case, there is no proof that he had
1) No person shall be without a domicile; his domicile of
waived his status as a permanent resident or immigrant of
origin prevails until the acquisition of a new one.
the US before he ran for election as mayor of Bolinao; hence
he was disqualified to run for that office. 2) A person cannot have two simultaneous domiciles (a
person can have only one domicile for a given
purpose or a given time under the law of a particular
Uytengsu vs. Republic state, but it should not be assumed that that
(1954) determination will be binding on other states or on
FACTS: Uytengsu was born in the Philippines of Chinese the same state for other purposes).
parents. He went to the US to study; but in one of his
vacations in the Philippines he applied for naturalization, 3) Domicile establishes a connection between a person
during the pendency of which he returned to the US to and a particular territorial unit.
finish his studies. Upon his return, his application was
granted; the Government appealed the grant because under 4) The burden of proving a change of domicile is upon
the law an applicant for naturalization is required to reside whoever alleges that a change has been secured.
continuously in the Phils. from the date of filing of the
petition up to the time of his admission to Philippine 5) Domicile of wife and children
citizenship. Uytengsu’s defense is that since he has been
domiciled in the Philippines during the period of his
Romualdez-Marcos vs. COMELEC
application, he was also a resident for that period.
(1995)
FACTS: Imelda Marcos filed her Certificate of Candidacy
HELD: “Residence” and “domicile” each has, in strict legal
for representative of 1st District of Leyte. A petition to
parlance, a meaning distinct and different from each other.
disqualify her was filed on the ground that she lacked the
The essential distinction between resident and domicile is
1-yr resident requirement as provided for in the
this: the first involves the intent to leave when the purpose
Constitution. In her COC, she placed “7 months” as length
for which he has taken up abode ceases, while the other has
of residence.
no such intent, the abiding is animo manendi. They are not to
be held synonymous; residence is an act, while domicile is
HELD: For purposes of election law, residence is
an act coupled with intent. The question of domicile is not
synonymous with domicile. Mere absence of an individual
involved in determining whether a person is a resident of a
from his permanent residence without the intention to
state or country.
abandon it does not result in a loss or change of domicile.
23
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
HELD: He was domiciled in Pennsylvania at the time of his 3) Constructive domicile: domicile assigned to persons
death. A man cannot retain a domicile in one place when he incapable of choosing their own domicile by operation
has moved to another, and intends to reside there for the of law. Includes minors, mentally disabled, married
rest of his life, by any wish, declaration or intent women.
inconsistent with the facts of where he actually lives and
what he means to do. Minors or infants are indubitably incapable of choosing their
own domicile. Their domicile automatically changes when their
father’s domicile changes. Minors take the domicile of their
mother upon the death of their father.
D. Kinds of Domicile
A person who has a mental disability is also assigned a
3 Kinds of Domicile:
constructive domicile. It is presumed that a person with a
mental disability cannot acquire a domicile of choice because
1) Domicile of origin: a person’s domicile at birth. A
of his inherent inability to decide where to make his home.
legitimate child’s domicile is that of his father, while
an illegitimate child’s is that of his mother.
Special Problems in Domicile of Choice vis-à-vis Constructive
2) Domicile of choice: also called voluntary domicile, is
Domicile
the place freely chosen by a person sui juris. There
must be concurrence of physical presence in the new
1) domicile of people kept under physical or legal
place and unqualified intention to make that place
compulsion
one’s home.
2) domicile of married women seeking to acquire
A problem deciding the issue of domicile of choice is the
separate domicile from their husbands
degree of permanence of abode.
People under Compulsion: traditional view is that he is in that
Difference between domicile of origin and domicile of choice:
place not as a result of his volition. Examples are military
lies in a) conditions necessary for abandonment and b)
personnel, prisoners and people with disabilities who are
capacity for revival.
confined in institutions.
Reverter or revival doctrine: presumption that domicile of
origin revived once the domicile of choice is given up, before a
Caraballo vs. Republic
new one is required.
(1962)
FACTS: Caraballo, an American staff sergeant in the US Air
Velilla vs. Posadas Force stationed in Clark Air Base, filed a petition for
(1935) adoption of a Filipino child. The petition was denied on the
FACTS: Velilla, the administrator of the estate of Moody, ground that he was not qualified to adopt, him being a non-
appealed the inheritance tax assessed against the estate on resident alien.
the ground that the decedent was not domiciled in the
Philippines. Moody went to Calcutta and Paris before his HELD: Actual or physical presence or stay of a person in a
death, and he died in India. place, not of his free and voluntary choice and without
intent to remain there indefinitely, does not make him a
HELD: He was a domiciliary of Manila. Domicile in the resident of the place. Caraballo is disqualified to adopt
Civil Code is defined as the place of habitual residence, because he is a non-resident alien. His stay in the
which was Manila in the CAB. There was no statement Philippines is only temporary, and is merely the result of
from Moody, oral or written that he adopted a new his assignment as staff sergeant.
domicile while he was absent from Manila. To establish
abandonment, he must show his deliberate and provable
In recent decisions, courts have held that a person under
choice of new domicile coupled with actual residence and
compulsion should not be barred from proving that he has
declared or proved intent that it should be his permanent
developed the required unqualified intention to establish his
abode. This was not proven. permanent abode in such place. The fact of compulsion is
reduced to just one of the factors in determining whether
intent, in fact, exists.
White vs. Tennant
(1888) Married Women: based on the concept of unity of identity of
FACTS: White and his wife lived in West Virginia, but spouses, the wife was presumed to take the domicile of the
agreed to sell their house there with the declaration, intent husband.
and purpose of making Pennsylvania their home. Upon
reaching Penn., they had to go back to West Va. on account
of the wife’s illness but White went to Penn. everyday to Go Chen and Go Lek vs. Collector of Customs
look after his stock. Upon his death, the administrator paid (1932)
the whole of the estate to the widow according to West Va. FACTS: Tan Bon, a Chinese citizen, entered the Philippines
law. However, if Penn. law was applied, ½ of the estate as the wife of a Chinese merchant. She asked her minor
would go to White’s siblings. The law of his domicile children from a previous marriage to join her here, but they
governs the distribution of his estate. were not allowed entry.
HELD: Pennsylvania was his domicile at the time of his HELD: The minor children cannot enter the Philippines. A
death. Two things must concur to establish domicile—the Chinaman’s Chinese wife and her minor children do not
fact of residence, and the intention of remaining. These two enter the Philippine Islands through their own right, but by
must exist in combination. When one domicile is definitely virtue of the right of the husband and father. Since Tan Bon
abandoned, and a new one selected and entered upon, did not enter the Philippines by her own right but by virtue
length of time is not important; one day will be sufficient, of her husband, she is not entitled to bring in her minor
provided the animus exists. children by another Chinaman who never had legal
residence in the Archipelago. The mere fact of their being
24
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
children of Tan Bon confers on them no right of entry, FACTS: H engaged the services of R, as counsel in her suit
inasmuch as she herself did not enter of her own right, and against her husband for support and for preservation of her
they cannot base their right on hers. rights in the conjugal partnership in contemplation of a
divorce suit. However, the spouses entered into a
compromise agreement to defeat the claim of R in
De La Vina vs. Villareal and Geopano attorney’s fees. H moved to dismiss on the ground of
(1920) invalidity of the contract of service because divorce is
FACTS: Geopano filed a complaint in CFI Iloilo against de contrary to Phil law.
la Vina, her husband, for divorce on the ground of
infidelity. De la Vina opposed, saying that CFI Iloilo has no HELD: R should be paid his fees. H spouses are US citizens
JD over the case considering that he resides in Negros, such and their status and the dissolution thereof are governed by
that Geopano must also be considered a Negros resident, the laws of the United States, which sanction divorce.
because the domicile of the wife follows that of the Therefore, contract is not contrary to public policy.
husband.
HELD: CFI Iloilo has JD. Where the husband has given B. Legislative Jurisdiction Distinguished from
cause for divorce, the wife may acquire another and Judicial Jurisdiction
separate domicile from that of her husband.
Status once established by the personal law of the party, is
*There are exceptions to the rule that the domicile of the wife given universal recognition.
is determined by that of her husband, one of which is that
the wife may acquire another and separate domicile from Status, capacity, and rights and duties, brought into existence
by State A and conferred in a natural or juridical person under
that of her husband where the theoretical unity of husband
its jurisdiction, should be recognized by State B, without any
and wife is dissolved, as it is by the institution of divorce
exception or qualification imposed by the latter, except by
proceedings; or where the husband has given cause for
some definite or protected rule of municipal law.
divorce; or where there is a separation of the parties by
agreement, or a permanent separation due to desertion of - Aliens can sue and be sued in our courts even on issues
the wife by the husband or attributable to cruel treatment relating to status and capacity. However, the applicable
on the part of the husband; or where there is a forfeiture by law is their personal law.
the wife of the benefit of the husband’s domicile.
Civil personality is commenced at birth and is extinguished by 4. a sincere desire to adopt a Filipino name to erase signs of
death. A declaration of death issued by a competent court is a former alien nationality which unduly hamper social and
considered valid for all purposes. business life
However, for specific purposes, our laws require that a XII. Choice of Law in Family Relations
declaration of death be issued before certain legal effects of
death arise ex. Contracting a subsequent marriage but the Man & woman may decide to marry in a country other than
periods are reduced to 2 years. that of their nationality & come home. Issue of validity of
marriage & legal consequences may be raised (Legal
The legal effects of absence and restrictions on his capacity consequences such as personal & property relations, status &
are determined by his personal law. rights of children, use of surname & right to inherit).
1. is ridiculous or tainted with dishonor or extremely difficult Article 15; Lex nationalii (Filipino citizens only)
to pronounce
2. when the change is necessary to avoid confusion Family Code Definition:
3. when the right to a new name is a consequence of change
in status
26
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
Art 1. “Marriage is a special contract of permanent union b/w as husband & wife in the presence of not less than 2
man & woman entered into in accordance w/ law for the witnesses of legal age
establishment of conjugal & family life.
Lex Loci Celebrationis (expressed in Art 26 FC):
It is the foundation of the family & an inviolable social “All marriages solemnized outside the Philippines in
institution whose nature, consequences & incidents are accordance w/ the laws in force in the country where they
governed by law & not subject to stipulation except that were solemnized, and valid there as such, shall also be valid in
marriage settlements may fix property relations during the this country…”
marriage w/in limits provided by this Code.”
Certificate of legal capacity
Juxtaposed w/ Art15 CC, w/c states that questions on family
rights, duties, status, conditions & capacity are governed by
lex nationalii, the importance of such definition is realized. Adong vs. Cheong Seng Gee
(1922)
Marriage is a special contract as distinguished from an ordinary FACTS: The late Cheong Boo’s estate is being claimed by
contract: Cheong Seng Gee, who says that he is the legitimate child
of the decedent with Tan Dit, whom the decedent allegedly
1) entered into by a man & a woman married in China.
2) both at least 18 years of age
3) solemnized by a person specifically authorized by law HELD: The validity of the Chinese marriage cannot be
4) a permanent union unless one party dies, or marriage
recognized. There is no competent testimony what the laws
is annulled or declared void in special circumstances
of China in the Province of Amoy concerning marriage
5) cannot be abrogated, amended or terminated by one
were in 1895. There is lacking proof so clear, strong and
or both parties at will
6) nature & consequences as well as incidents are unequivocal to produce a moral conviction of the existence
governed by law & not subject to stipulation by of the alleged Chinese marriage.
parties unlike ordinary contracts
7) violation of marital obligations may give rise to penal
or civil sanctions while breach of conditions of
ordinary contract can be ground for an action for People vs. Mora Dumpo
damages (1935)
FACTS: Dumpo married Hassan, and then married
1. Philippine Policy on Marriage and the Sabdapal without having her previous marriage annulled.
Family As a defense to an allegation of bigamy, Dumpo claimed
that her 2nd marriage was void because her father did not
Art XV. Sec. 2: Marriage as an inviolable social institution, is consent thereto.
the foundation of the family & shall be protected by the state.
HELD: Dumpo is not guilty of bigamy. The 2 nd marriage
Presumption of validity: The Philippines establishes a was null and void because the consent of her father was not
presumption of validity to give stability to marriage especially obtained. It is an essential element of bigamy that the
in Conflicts of Law problems. alleged 2nd marriage, having all the essential requisites,
would be valid were it not for the existence of the first.
Art 220. CC. In case of doubt, all presumptions favor the
solidarity of the family. Thus every intendment of law or facts
lean toward the validity of marriage, the indissolubility of
marriage bonds, legitimacy of children, the community of
property during marriage…
Wong Woo Yu vs. Vivo
(1935)
Goal: Guide courts, strengthen family, & emphasize state
interest in its preservation FACTS: Wong Woo Yu alleged before the Board of Special
Inquiry that she was allegedly married to a Filipino, Blas, in
a ceremony in China. The new Board ordered Wong to be
2. Extrinsic Validity of Marriage excluded from the country, on the ground that her marriage
to Blas was bereft of substantial proof.
This is governed by lex loci celebrationis.
Article 26, par. 2 HELD: Wong should be excluded. Art.15 of our Civil Code
provides that the laws relating to family rights or to the
Extrinsic validity covers questions on formalities or external status of persons are binding upon Philippine citizens,
conduct required of parties for legally valid marriage. though living abroad. Even if the marriage of Wong to Blas
before a village leader is valid in China, the same is not one
Art 2. Hague Convention on Celebration & Recognition of of those authorized in our country. Under Sec. 4 of Gen.
Validity of Marriages: Formal requirements governed by law of Orders 68 (now Art. 71 CC), a marriage contracted outside
state of celebration. the Philippines which is valid under the law of the country
General rule: All states recognize as valid marriages celebrated in which it was celebrated is also valid here; but there was
in foreign countries if the formalities prescribed there were no proof presented on the applicable law of China.
complied with.
Therefore it may be presumed to be the same as our law.
PHILIPPINES, Formal Requirements of Marriage
27
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
HELD: The marriage is valid. The English law on marriage Matrimonial consent: Parties are, at least, not ignorant that the
is locus regis actum. (The rule that, when a legal transaction marriage is a permanent union.
complies with the formalities required by the law of the
country where it is done, it is also valid in the country Mixed marriages: the law that governs substantive validity is
where it is to be given effect, although by the law of that national law of parties.
country other formalities are required.)
If a marriage is good by the laws of the country where it is Art 38. FC.: Though valid in a foreign country certain
effected, it is good all the world over, no matter whether marriages may be void in the Philippines on grounds of public
policy, such as the ff:
the proceeding or ceremony which constituted marriage
according to the law of the place would or would not
1) b/w collateral blood relatives, whether legitimate or
constitute marriage in the country of domicile of one or
illegitimate up to the 4th civil degree
other of the spouses. Since the marriage was performed in 2) b/w step-parents & stepchildren
Buenos Aires and in accordance with its laws, and since 3) b/w parents-in-law & children-in-law
proxy marriage is only a form of the ceremony and not an 4) b/w adopting parent & adopted child
essential requisite, the marriage should be upheld. 5) b/w surviving spouse of adopting parent & adopted
child
6) b/w surviving spouse of adopted child & adopter
Exceptions to Lex Loci celebrationis: The Civil Code (Art 71) 7) b/w adopted child & legitimate child of adopter
enumerates bigamous, polygamous or incestuous marriages as 8) b/w adopted children of same adopter
exceptions to the lex loci celebrationis rule. 9) b/w parties where one, w/ intention to marry the
other, killed the person’s spouse or his or her own
The Family Code (Art 26) widens these exceptions. spouse
1) either or both parties are below 18 Marriage of 1st cousins is no longer incestuous but still void ab
2) it is bigamous or polygamous initio on the ground of public policy.
3) a subsequent marriage is performed w/out recording
in the Civil Registry & registry of Properties the It is submitted that our prohibition against marriage of 1 st
judgment of annulment or declaration of nullity of cousins be limited only to Filipino nationals because many
first marriage, the partition o& distribution of the countries allow such marriages.
properties of the spouses & the delivery of
presumptive legitimes Marriages b/w foreigners whose national laws allow marriage
4) there was a mistake as to identity of the contracting of 1st cousins should be considered as valid in the Phil under
party the principle that the lex nationalii controls capacity &
5) one of the contracting parties was psychologically presumption in favor of validity of marriage, as expressed in
incapacitated to comply with the essential marital Art 220.
obligations
6) the marriage is incestuous Hague Convention on validity of Marriages allows a contracting
7) marriage is void by reason of public policy state to refuse recognition of the marriage if:
Note that the exceptions put in issue the parties’ capacity to 1) one of spouses was already married (unless marriage
enter into marrriage, thus, relating to a substantive has subsequently become valid by virtue of
requirement. dissolution or annulment of previous marriage)
Since the personal law of the parties governs questions of 2) spouses were related to one another by blood or by
intrinsic validity of marriages b/w Filipinos abroad, the above adoption, in the direct line or as brother or sister
enumerations are exceptions to the lex loci celebrationis
precisely because they are controlled by lex nationalii. 3) one of spouses had not attained the minimum age
required for marriage nor acquired the necessary
dispensation
3. Intrinsic Validity of Marriage
4) one of the spouses did not have the mental capacity
Intrinsic requirements refer to capacity or general ability of a to consent
person to marry, for instances defined by requirements of age
& parental consent, but it does not refer clearly to an 5) one of the spouses did not freely consent to the
individual’s being permitted to marry a specific person or marriage
person of a determinate class.
said country and renders such marriage invalid wherever it the formal & extrinsic requirements of a valid marriage license
may have been solemnized. & due publication & registration under Philippine law have to
be complied with).
There was a law prohibiting them.
This is said to apply to marriage b/w Filipino national & an
alien provided the alien complies with marriage requisites
In re May’s Estate under his/her national law.
(1920)
FACTS: Fannie is Sam’s niece by half blood; they are both Additional requirements for:
Jewish and NY residents. NY prohibits marriage between
uncle and niece, so they went to Rhode Island, where such 1) aliens - submission of a certificate of legal capacity to
marriage is also prohibited except where the parties are contract marriage issued by diplomatic/consular office
Jewish (the Jewish faith allow such marriages). After the
ceremony they went back to NY to live there. 2) stateless persons or refugees- submission of affidavit
stating circumstances showing legal capacity to
contract marriage
HELD: The marriage is valid. The legality of a marriage
between persons sui juris is to be determined by the law of
the place where it is celebrated. The general principle is that 4. Effects of Marriage
the rights dependent upon nuptial contracts are to be
determined by the lex loci, subject to 2 exceptions: 1) cases Personal Relations between the Spouses
within the prohibition of positive law, and 2) cases
involving polygamy or incest in a degree regarded These include mutual support, fidelity, respect, cohabitation &
generally as within the prohibition of natural law. As to the right of wife to use husband’s family name)
first exception, there is no “positive law” in New York
which serves to interdict the marriage in Rhode Island of What is the governing law? National law of parties
Sam and Fannie, and as to the second exception, their
marriage was not offensive to the public sense of morality, If spouses are of different nationalities, generally, the
it being allowed by the Jewish faith. husband’s national law may prevail as long as it is not contrary
to law, customs, & good morals of the forum.
Instances Where Recognition of Validity of Marriage May be
Withheld: Art 69 Family Code: Husband & wife have the right to fix
family domicile.
Christianity prohibits polygamous & incestuous marriages but Court, for compelling reasons, may exempt spouse from
care must be taken to confine doctrine to cases deemed living with the other.
incestuous by general consent of all Christendom.
Djumantan vs. Domingo: Filipino marries Indonesian. They go
The state may resort to ultimate escape device- contravention to Philippines w/ intention of staying here permanently.
of a public policy to w/hold recognition of validity of a foreign Subject of petition: Effect of marriage on wife’s right to stay in
marriage. the Philippines.
Rule: Marriages manifestly incompatible with the ordre public There is no law guaranteeing aliens married to Filipino citizens
of the state of nationality of parties may be refused the right to be admitted, much less to be given permanent
recognition. residency, in the Philippines.
However, commentators argue that when the non/existence of “The fact of marriage by an alien to a citizen does not
marriage is merely a preliminary Q arising incidentally in a case withdraw her from operation of immigration laws governing
involving an issue not profaning mores of forum (such as tax, admission & exclusion of aliens. Marriage of an alien woman to
property or succession law) the rule above should not be Filipino citizen does not ipso facto make her a Filipino citizen &
applied. does not excuse her from her failure to depart from the
country upon expiration of her extended stay here as alien”.
There should be Compliance of immigration laws.
In ReDalip Singh: two women claimed that they were lawfully
wedded wives of Singh, a native of India who died intestate in
Restatement 2nd: The wife who lives w/ her husband has the
California. They claim to have been lawfully married to him in
same domicile as his unless special circumstances of wife make
India over 50 yrs ago while domiciled there in accordance w/
such result unreasonable.
law of the Jat community.
But, in Ch VIII on Domicile, some legal authorities consider the
Under California laws, only 1 st wife recognized as legal widow.
assignment of constructive domicile to the wife as invidious
Wives argue that the polygamous marriages should be held
discrimination on basis of gender.
valid on strength of Art 63 CC: “All marriages contracted
w//out the state, w/c would be valid by the laws of the country
Property Relations of Spouses
in w/c the same were contracted are valid in this state”.
Hague Conventions on law Applicable to Matrimonial Property :
Court, citing English & American cases: Polygamous marriages
The internal law designated by spouses before marriage or in
can be recognized in English law “so as to confer on the ‘wives’
absence thereof the internal law of state in w/c both spouses
the status of a wife for the purposes of Sec. 10 of British
fix their habitual residence is the governing law on matrimonial
Nationality & Status of Aliens Act or for purposes of
property regimes.
succession, & upon the children the status of legitimacy.
Art 80. Family Code: In the absence of a contrary stipulation in
Marriages Celebrated by a Consular Official a marriage settlement, property relations of spouses shall be
Art. 9 of the relevant Hague convention: Marriage celebrated governed by Philippine laws, regardless of the place of the
by a diplomatic agent or consular official in accordance with his celebration of the marriage & their residence.
state law shall be considered valid as long as it is not
prohibited by the state of celebration This rule shall not apply:
Philippine law: Marriage of Filipino nationals shall be officiated 1) If both spouses are aliens
by Philippine consul general, consul or vice consul (in w/c case
29
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
What law will govern the property relations of spouses where 2) grounds for divorce subject to law of forum
one is a Filipino citizen 7 the other a foreigner? It would still be provided the parties were domiciled there.
governed by Philippine law.
Grounds for divorce are dictated by lex fori (law of the forum).
Thus, many states refuse to recognize foreign grounds for
Change of nationality after Marriage
divorce unless it corresponds w/ a ground justified by forum
If one or both spouses change nationality subsequent to
law. This is followed whether the traditional or policy centered
marriage, property regime remains unchanged because of
choice of law approach is used.
principle of immutability.
In Adong and Wong Woo Yu, the Court did not apply
Effects:
the Philippine policy of presumption of validity of 1. alien is capacitated to remarry
marriage. 2. Filipino spouse shall likewise have the capacity to
Question: is a proxy marriage between Filipinos in a remarry under Philippine law
state allowing such marriages valid? Pangalangan:
Yes, because it is merely a formal requisite ( lex loci Effect of Provision (Art 26): partial recognition in the Phil of
celebrationis apply) absolute divorce.
________________ o note: Divorce should be obtained only by alien
spouse. Otherwise, Art 26 is inapplicable.
o Nationality of the spouse obtaining the divorce at that
B. Divorce and Separation time.
Basis of JD of some countries: Domicile of one of the parties or Van Dorn vs. Romillo
matrimonial domicile
(1985)
FACTS: Van Dorn, a Filipina, married American Upton.
Ratio: Divorce, being a matter of state concern, should be
Ten years later they were divorced in the US; subsequently,
controlled by “law of place w/ w/c person is most intimately
concerned, place where he dwells. van Dorn remarried. Upton filed an action against Van
Dorn in the Philippines, asking for an accounting of certain
Due process requires that forum court have a substantive alleged conjugal properties.
contact w/ the relationship w/c it will decide won to dissolve.
30
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
HELD: The divorce decree is valid and binding upon If only the plaintiff is domiciled there: Other conditions (i.e.
Upton. Even if divorce is not valid in the Philippines for service of process to defendant) must be fulfilled
being contrary to public policy, only Philippine nationals
are covered by the policy against absolute divorces. Aliens Effect of Divorce Rendered by a Foreign Country: not covered
may obtain divorces abroad, which may be recognized in by Full faith & credit clause
the Philippines provided valid according to their national o but would be recognized under the same
law. circumstance that a sister state’s divorce decree is
given recognition.
HELD: Quita’s right to inherit from Padlan depends on her o States w/ policy-centered approach: follow the law of
citizenship at the time the divorce was decreed. If she was state of marital domicile (considered to have the most
no longer a Filipino citizen at the time of their divorce, the significant interest in status of persons)
divorce would be valid as to her and will be recognized in
the Philippines, and she would lose her right to inherit. In both approaches, lex fori (which is crucial in divorce) does
not play substantial role because the action turns on the
validity of the marriage.
Tenchavez: 2 Filipinos, divorced abroad – not
recognized in the Philippines (Art. 15 CC, nationality Note that in either traditional or policy-centered approaches,
principle) lex fori is not used; recall that lex fori can be used in divorce.
Van Dorn: 1 Filipino, 1 foreigner, divorced abroad –
Both lex loci celebrationis and law of marital domicile can
recognized (Art. 15 CC, estoppel)
provide jurisdictional basis, but only one can be a choice-of-
Pilapil: 1 Filipino, 1 foreigner – recognized (nationality
law in the determination of the annulment decree.
principle)
________________
Which states can claim adequate jurisdictional basis to hear a
conflicts annulment or nullity case?
2. Validity of Foreign Divorce between a) state where marriage was celebrated
Foreigners b) place of marital domicile
Hague Convention on Recognition of Divorce & Legal Wheaton vs. Wheaton: Even a court which acquires personal
Separation: JD over parties can grant an annulment case (US case).
31
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
Most Significant Relationship Approach: will not Definition: The act by which relations of paternity & affiliation
yield a ground for annulment. as legally existing b/w persons not so related by nature.
State C can conclude that since law of STATE
A (state of marital domicile) gives people
It is a judicial act w/c creates b/w 2 persons a relationship
their age full capacity to marry, no ground for
annulment similar to that w/c results from legitimate paternity &
affiliation.
The Choice of Law rule of STATE C will be irrelevant
Early societies considered it as a means of perpetuating a
house or cult threatened by extinction.
D. Parental Relations Original purpose: solace for childless or people who lost
children
What law determines legitimacy of a child? Personal law of
parents - either domicile or nationality. Recent time: broader, more humane aim
o Personal law of the child is the national law of the Child’s personal law as basis for exercise of jurisdiction
mother if the child is illegitimate. weakened in situations where child’s domicile is:
o merely constructive, or
o Legitimacy of the child determined by the national law o if he is a citizen of a state but he doesn’t reside there
of the father if both parents are not Filipino. (there is little basis for court to protect child interest
competently)
In the UNITED STATES:
The continuous movement of people in & out of countries
as per Second Restatement On Legitimacy of the American
should also be factored in.
Law Institute
Can an alien adopt a child in the Philippines?
o Child is legitimate if this is his status under the local
General Rule: not allowed
law where the parent is domiciled when the child’s
Reason: Different family orientation, cultures, customs &
legitimacy is claimed OR when the parent
traditions could pose problems of adaptation for child.
acknowledged the child as his own.
Exceptions:
Parental Authority over the Child
o Art 184. Aliens who have some relationship with the
-from concept of patria potestas of Roman law
child by consanguinity or affinity
What law controls? Father’s personal law controls rights &
duties of parents & children. o RA 8552 (Domestic Adoption Act Of 1998)
o Art. 211 FC: Reference to father’s personal law may These two introduced significant changes in adoption law.
result in joint exercise of parental authority
Change Pertinent to Conflict Law
32
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
Effects Of Adoption The connecting factor is the immovable itself and not the
parties concerned.
What law governs rights of adopted child & other effects of
legal adption? (law that governed the creation of adoption) Movables: not necessarily governed by the lex situs; its
transfer may be controlled by the a) lex domicilii, b) lex situs,
2 different legal orders depending on which law governed the or c) lex loci actus (the proper law of transfer).
creation of adoption:
Lex domicilii: the rights over the movables are governed by the
1) If Personal law of adopter applied—same law law of the owner’s domicile.
governs effects of adoption.
Lex situs: the state where the property is situated has the sole
2) If personal law of child applied—such law will cease power to decide the validity and effects of the transfer of
to regulate the resulting parent-child relations; it will property. Also, the parties’ legitimate expectations are
yield to the personal law of adopting parents. protected. The rationale for this is that being physically part of
the country, it should be subject to the laws thereof. The situs
Philippine courts: is the place most closely and significantly related to the issue
o Adoption relates to a civil rights of adopted child in question.
o Does not effect changes in political rights,
including eligibility to acquire adopter’s Alternatives to lex domicilii and lex situs:
citizenship
a) Lex loci actus: law of the place where the transaction
In the Philippines, principles of enforcement & recognition of a was completed
foreign judgment governs, because the decree granting an
adoption is in the form of a foreign judgment.
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
b) the proper law of the forum: law of the state which C. Extrinsic and Intrinsic Validity of Conveyances
has the most real connection with the transfer
The lex situs law applies to the following:
In the Philippines, real and personal property are “subject to
the law of the country where it is situated” (Art. 16 CC). a 1) formalities of a contract to convey property
problem regarding classification will arise only when the
property is located in a foreign country which has a law that 2) the essential validity of the transfer (unless the lex
distinguishes between real and personal property. intentionis is clearly established)
Cheesman vs. IAC Also, when the issue involves considerations other than the
(1991) validity and effect of the transfer itself, the courts may look to
FACTS: Thomas Cheesman (an American) was married to a the law of another state which has a real interest in applying
Filipina, Criselda. The spouses later separated; but Thomas its law.
brought this action to annul the sale of real property made
by Criselda in favor of Padilla. He alleged that the sale is Rudow vs. Fogel: since the issue did not relate to land title but
void for lack of his consent. The property sold was bought to whether the conveyance would result in a constructive trust
by Criselda using her personal funds, and was registered in among family members, the law applicable is the law of the
her name only. domicile of the trustor and trustee instead of the lex situs of
the property.
HELD: The sale was valid. He has no capacity to question
the sale of the property by his wife on the theory that in
E. Situs of Certain Properties
doing so he is merely exercising the prerogative of a
husband in respect of conjugal property. This would permit
indirect controversion of the constitutional prohibition. If 1. Situs of Personal Property for Tax
the property were to be declared conjugal, this would Purposes
accord to the alien husband an interest and right over the
land, which is not granted to him under the Constitution. The maxim mobilia sequuntur personam cannot be applied to
limit the right of the state to tax property within its JD. It
yields to established facts of legal ownership, actual presence,
34
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
and control elsewhere, and cannot be applied if it would result respect to capital gains, the place of the sale (which in CAB
in inescapable and patent injustice. is California) is also the place or source of the capital gain.
2. Situs of Money
F. Patents, Trademarks, Trade Name, and
Leon vs. Manufacturers Life Insurance: having been endorsed Copyright
in an annuity in Canada under a contract executed in that
country, Canada was the situs of the money, hence the The Philippines is a party to the Union Convention for the
probate court of Manila has no JD over the funds. Protection of Industrial Property; said convention states in Art.
8 that a “trade name shall be protected in all the countries of
the Union without the obligation of filing of registration,
3. Situs of Debts whether or not it forms part of the trade name.”
2 Kinds of Movable Property: Western Equipment and Supply Co. vs. Reyes; although
Western equipment has not done business in the Philippines, it
1) choses in possession – embraces all types of tangible has the right to protect its reputation. The right to the use of
physical objects the company’s corporate and trade name is a property right
which may be asserted against the whole world.
2) choses in action – refers to intangible objects
RA 8293 (Intellectual Property Code): applicant cannot register
a) mere rights of actions marks “well known internationally and in the Philippines,
b) rights represented by a document (capable whether or not it is registered here, xxx and is used for
of delivery and susceptible to negotiation as identical or similar goods or services.”
a separate legal entity)
Under Sec. 3 of the IPC, any foreign corporation which is a
national or domiciliary of a country which is a party to a
Harris vs. Balk convention, treaty or agreement relating to intellectual
(1905) property rights to which the Philippines is also a party or
FACTS: Harris and Balk are both North Carolina extends reciprocal rights to our nationals by law “shall be
domiciliaries. Harris owed Balk a sum of money. When he entitled to benefits to the extent necessary to give effect to
was in Baltimore he was served a writ of garnishment, it any provision of such convention…”
appearing that Balk has a debtor there. He paid pursuant to
the writ, but when he returned to N. Carolina, Balk sued
him for recovery of his indebtedness. Harris pleaded the Philips Export vs. CA
recovery of the Maryland judgment. (1992)
HELD: A corporation’s right to use its corporate and trade
HELD: The attachment of Harris’ debt is valid, and the name is a property right, a right in rem, which it may assert
North Carolina court should give credit to the Maryland and protect against the world in the same manner as it may
judgment. The obligation of the debtor to pay his debt protect its tangible property, real or personal, against
clings to and accompanies him wherever he goes. He is as trespass or conversion. It is regarded, to a certain extent, as
much bound to pay his debt in a foreign state when therein a property right and one which cannot be impaired or
sued upon his obligation by his creditor, as he was in the defeated by subsequent appropriation by another
state where the debt was contracted. corporation in the same field.
Prof. Beale: this decision did injustice to the creditor, as he has Emerald Garment Mfg. vs. CA
no power to fix the personal presence of his debtor at one (1995)
place or another. It is unjust to submit the creditor’s claim to FACTS: H. D. Lee Co., a foreign corporation, filed a petition
the accident of the debtor’s presence in one state or another. for cancellation of registration of the trademark “Stylistic
Mr. Lee” used on items of clothing by Emerald Garments,
alleging that it so closely resembled H. D. Lee’s trademark
4. Situs of Corporate Shares of Stocks as to cause confusion, mistake and deception on the public
as to the origin of the goods.
Under the Corporation Code (Sec. 63), shares of stock are
personal property and may be transferred by delivery of the HELD: A foreign corporation may have the capacity to sue
certificate or certificates indorsed by the owner or his attorney
for infringement irrespective of lack of business activity in
in fact. But such transfer shall not be valid until recorded in the
the Philippines on account of Section 21-A of the
books of the corporation in the manner provided.
Trademark Law but the question of whether they have an
exclusive right over their symbol as to justify issuance of
CIR vs. Anglo California National Bank the xxx writ will depend on actual use of their trademarks
(1960) in the Philippines.
FACTS: The Collector of Internal Revenue assessed
deficiency income taxes against Calamba Sugar Estates for
XIV. Choice of Law in Contracts
the capital gains on the sale of Pampanga Sugar Mills
shares of stock. The sales were conducted in SF, California,
Contract: meeting of the minds between 2 persons whereby
and payments were made there.
one binds himself, with respect to the other, to give something
or render some service. Parties are bound not only to those
HELD: CSE not liable for income tax on the capital gains. expressly stipulated but also to all the consequences which
The government cannot impose income taxes on capital according to their nature, may be in keeping with good faith,
gains where the sale took place outside its territorial JD. usage and law.
Foreign corporations may be levied income taxes only on As a gen. rule, unless provided by law or in the
income derived from sources within the Philippines. With agreement, a contract is obligatory in whatever form it may
35
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
have been entered into provided that all the essential b) in applying it consistently, certainty and
requisites for validity are present. stability are achieved.
Principal purposes of contract: Disadvantage: it will lead to unjust results when the place of
1. protect the reasonable expectations of the parties to the making is entirely incidental or casual and has no significant
contract relationship with the contract or its performance.
2. secure stability in commercial transactions
Art 1306, CC
Art. 1318, CC: requisites of a contract The contracting parties may establish such stipulations,
a. consent of the contracting parties clauses, terms and conditions as they may deem convenient,
b. object certain provided that they are not contrary to law, morals, good
c. cause of the obligation customs, public order or public policy.
There are 3 possible laws that will govern intrinsic validity of Art, 1370, CC
contracts: If the terms of the contract are clear and leave no doubt upon
1. law of the place of the making the intention of the contracting parties, the literal meaning of
2. law of the place of performance the stipulations shall control.
3. law intended by the parties
The law looks at the acts of the parties and the surrounding
circumstances which may possibly have exerted some
1. Lex Loci Contractus influence upon their actions and then assumes that their
intentions are in harmony with such acts and circumstances.
This refers to the law of the place where the contract is made.
This is the place where the last act is done which is necessary Parties are presumed to contemplate to enter into a valid
to bring the binding agreement into being so far as the acts of contract. The court should apply the law that will sustain the
the parties are concerned. contract.
Advantages:
a) relative ease in establishing place of D. Capacity to Enter into Contracts
contracting
36
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
The capacity to enter into contracts is governed by the rule on execution in case of a favorable, if final and executory
status and capacity (personal law). In countries that follow the judgment.
nationality principle, the national law prevails (art. 15, CC). In
countries that follow the domiciliary principle, law of their It is a personal action for the collection of a sum of money
domicile governs.
which the CFIs have jurisdiction to try and decide.
b. that the clause was invalid for such reasons as fraud or Specific Instances where court disregarded the adhesion
overreaching or contract:
c. if enforcement would contravene a strong public policy 1) when the party is not literate in the language of the
of the forum in which suit is brought, whether declared contract with knowledge of what was intended
by a statute or by judicial decision or
d. if the chosen forum is seriously inconvenient for the 2) when there is undue advantage made by a dominant
trial of the action. But if the parties contemplated the party usually a huge corporation or a business
claimed inconvenience, it should not be heard to monopoly
render the forum clause unenforceable.
3) when there is ambiguity in the adhesion contract, it
must be resolved contra preferentum and in favor of
The CAB involves a freely negotiated international
the party impugning it
commercial contract between the parties. As noted,
selection of a London forum was clearly a reasonable effort 4) when it is subversive of public policy when the
to bring vital certainty to this int’l transaction and to weaker party is imposed upon in dealing with the
provide a neutral forum experienced and capable in the dominant bargaining party and is reduced to the
resolution of admiralty litigation. alternative of taking it or leaving it, completely
deprived of the opportunity to bargain on equal
footing
3. Adhesion Contracts
Sweet Lines vs. Teves : Petitioners assail the validity of the
Adhesion contract is one that is not negotiated by the parties tickets issued by Sweet Lines.
having been drafted by the dominant party and usually
embodied in a standardized form. It is called a contract of HELD: The adhesion contract is void. It is not just and proper
adhesion because the participation of 1 party is limited to to expect that the passengers examined their tickets from the
affixing her signature. crowded counters esp. if there are a number of conditions in
fine print. Also, shipping companies, esp. inter-island vessels,
possess a virtual monopoly over the business of transporting
Pan Am World Airways vs. Rapadas the passengers between ports covered by their franchise.
(1992) Lastly, the court took judicial notice of the fact that these
FACTS: Rapadas’ samsonite was lost and Pan Am offered passengers come from low-income groups and are less literate
to settle the claim for $160. Rapadas refused and filed an and who have little or no choice but to avail of petitioner’s
action in court. The defense of Pan Am is that the claim is vessels.
subject to the Notice of baggage Liability Limitations
contained in the passenger ticket.
PAL vs. CA
(1996)
FACTS: Mejia shipped through PAL 1 microwave oven
from San Francisco to Manila. Upon arrival, she discovered 4. Special Contracts
that the front glass door was broken and the oven could not
be used. Mejia filed action against PAL. PAL denied In sales or barter of goods, the law of the place where the
liability and alleged that it acted in conformity with the property is located will govern (lex situs).
Warsaw Convention.
A simple loan granted by financial institutions is governed by
HELD: Although the airway bill is binding between the the law of the permanent place of business. But if granted by a
private individual, it is governed by the law of the place where
parties, the liability of Pal is not limited on the provisions of
the loan was obtained.
the airway bill. While the Warsaw Convention is law in the
Philippines, the Philippines being a signatory thereto, it
In contracts of pledge, chattel mortgage and antichresis, the
does not operate as an exclusive enumeration of the extrinsic and intrinsic validity of the contracts are governed by
instances when a carrier shall be liable for breach of lex situs.
contract or as an absolute limit of the extent of liability nor
does it preclude the operation of the Civil Code or other
pertinent laws. Carriage of Goods by Sea
38
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
HELD: COGSA does not apply but the Civil Code. Article negligence by its employees that were so gross and reckless
1753 of the Civil Code provides that the law of the country as to amount to malice and bad faith, e.g. erroneous
to which the goods are to be transported shall govern the cancellation of reservation, not confirming reinstatement of
liability of the common carrier in case of loss, destruction or reservation, confirming reservation even if EE had
deterioration. Under Article 1766, "In all matters not knowledge that they were merely waitlisted and not
regulated by this Code, the rights and obligations of notifying Lopezes of the cancellation.
common carriers shall be governed by the Code of
Commerce and by special laws," and in the Civil Code
there are provisions that govern said rights and obligations. KLM Royal Dutch vs. CA
Although Section 4 (5) of the Carriage of Goods by Sea Act (1975)
states that the carrier shall not be liable in an amount FACTS: Mendozas went on a world tour. KLM issued the
exceeding $500.00 per package unless the value of the tickets for the whole trip. Their coupon for Aer Lingus was
goods had been declared by the shipper and inserted in the marked RQ. Thru KLM’s help, reservations were made in
bill of lading, this is merely suppletory to the provisions of the Aer Lingus flight. Upon arrival, only the minors were
the Civil Code. allowed to board. Mendoza sued for breach of contract and
for damages bec. of the humiliation they suffered. KLM
denied liability on the basis of Art. 30 of the Warsaw
Convention (successive carriers liability)
Contracts for International Air Transportation
HELD: Art. 30 does not apply and KLM should be
The Warsaw Convention and amendments to the same accountable for the tortious act of Aer Lingus.Art. 30
regulate and establish uniform rules and regulations on the presupposes either an accident or delay and not the
liability of international airline carriers in cases of death, situation in CAB. Although the tickets provide that KLM’s
injuries of passengers or loss or damage of cargo. The Phils. liability for damages is limited to occurrences in its own
became a member thereof in 1951. airlines, this provision was printed in very small letters
such that a magnifying glass is needed to read it. It would
be unfair to charge Mendozas of automatic knowledge and
Liabilities of the Carrier:
it is the duty of KLM to inform them of the conditions
prescribed in the tickets or at least make sure that they read
a. in case of death or wounding- carrier’s liability is not more
than $75,000. them before they accepted the tickets. This it failed to do .
b. The limits do not apply when the damage is caused by the
act or omission of the carrier, his servants or agents, done
with the intent to cause damage or recklessly and with
knowledge that damage would probably result, provided American Airlines vs. CA
that the agent was acting within the scope of his (2003)
employment. FACTS: Mendoza bought conjunction tickets from
c. In case of loss or damage to baggage - $20/kilo for Singapore Airlines. Although it was not a participating
checked baggage and $400/passenger for unchecked airline, AA exchanged the unused portion of the ticket for a
luggage unless a higher valuation is agreed upon by the one-way ticket to New York. However, Mendoza was
parties prevented by AA’s security officers from boarding until all
d. Prescription. Action must be brought within 2 years from the other passengers have boarded. He sued action for
date of arrival at the destination, or from date which the damages against AA in RTC. AA claimed that the issuance
aircraft ought to have arrived or from the date on which of a new ticket created a separate contract of carriage from
the transportation stopped. the one with SA and therefore, under Art. 28, RTC had no
e. Venue. Any action for damages may be brought either in jurisdiction over the case against AA.
the court of the
1. domicile of the carrier
HELD: RTC had jurisdiction; the new ticket is not
2. principal place of business
considered as separate from the one issued by SA but the
3. place of business where the contract was made
contract of carriage constitutes a single operation. SA & AA
4. place of destination
5. Successive Carriers. Each of the successive carriers is are members of the IATA and under the general pool
bound by the rules on the Convention and shall be partnership agreement they act as agents of each other in
deemed to be one of the contracting parties insofar the issuance of tickets to contracted passengers. When AA
as the part of the transportation which is performed exchanged the ticket, it entered it in the IATA clearing
under his supervision. But for goods or baggage, the house and undertook to transport M. It thereby assumed
passenger or consignor has a right of action against the obligation to take the place of the principal carrier
the first carrier and the consignee who is entitled to originally designated and constituted itself as an agent of
receive the same, against the last carrier. They must SA. The number of tickets issued does not detract from the
take action against the carrier who performed the oneness of the contract of carriage as long as the parties
transportation during which the loss, damage or delay regard the contract as a single operation.
took place.
Unitary or single
Distinction between KLM and China Air: in KLM, KLM was the Article 16 CC
only company the passenger dealt with; in Chiok, it was Per universitatem
alleged that Chiok himself (passenger) requested for the PAL Split or scission
booking. It can then be argued that CAL should not be held Real Properties – lex situs
liable. Movable – lex domiciliary
________________
Universality Principle – designation of the heirs governed by
the national law of the decedent.
F. The Applicable law in the absence of an
Effective Choice
A. Extrinsic Validity of Wills
According to the 2nd Restatement, in the absence of an
effective choice of law, these factors will be considered in Filipino national making a will abroad may comply with:
determining the state with which contract has its most o lex nationalii (no express provision) or
significant relationship o lex loci celebrationis (Art 17, 815)
1. place of contracting
Pertinent Conflict-of-law rules:
2. place of negotiating of the contract (referring to law of place where will was executed as law
3. place of performance
governing forms & solemnities of will)
4. situs of the subject matter of the contract
5. domicile, residence, nationality, place of incorporation and
Form and solemnities written in Phil.
place of business 804 & 795 CC
6. place under whose local law the contract will be most
Written abroad
effective 815
816
Courts should localize the contract by examining the contacts it Art 17: The forms and solemnities of contracts, wills, and other
has with a state relative to the cogency to the issue. Example:
public instruments shall be governed by the laws of the
For contracts involving liability for destruction of goods in country in which they are executed.
transit, the state of the most significant relationship is the
state of destination. When the acts referred to are executed before the diplomatic
or consular officials of the Republic of the Philippines in a
In the absence of an effective choice of law, courts applying a foreign country, the solemnities established by Philippine laws
policy-centered approach will apply its own law when there are
shall be observed in their execution.
significant contacts with the transaction. Once these exist, the
forum has a real interest in applying its own law and such
Prohibitive laws concerning persons, their acts or property, and
would not be fundamentally unfair to the parties. The court those which have for their object public order, public policy
should also consider the legitimate expectations of the parties.
40
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
and good customs shall not be rendered ineffective by laws or 1) a will is a purely personal & unilateral act & this is
judgments promulgated, or by determinations or conventions defeated if 2 or more persons make their will in the
agreed upon in a foreign country. same instrument
Art 815: When a Filipino is in a foreign country, he is 2) the revocable character of a will is defeated, because
authorized to make a will in any of the forms established by if one of testators revoke the will, the other testators
the law of the country in which he may be. Such will may be will have no instrument left
probated in the Philippines. (n)
3) it exposes a testator to undue influence & may even
tempt one of testators to kill the other
What is the proper law for wills written abroad by Filipinos?
(There is no express provision that it is lex nationalii) 4) when a will is made jointly or in same instrument, the
more aggressive spouse is liable to dictate the terms
Tolentino: of the will for his/her own benefit
Art 815 follows general rule of lex loci celebrationis. - where will is also reciprocal, either of the spouses
who may be wicked may be tempted to kill the other.
The Civil Code did not mean to invalidate the will of a Filipino
made in conformity w/ Phil law.
Joint wills executed by Filipinos in a foreign country allowing
Aliens making wills outside the Philippines are, under Art 816 & joint wills are expressly invalidated by law. (818 & 819)
817, permitted to follow:
o lex nationalii Joint wills executed in the Philippines by aliens (whose laws do
o lex domicilii not prohibit it): the law is silent
o lex loci celebrationis
It is suggested that such will should not be probated if it
Article 816. The will of an alien who is abroad produces effect affects heirs in the Philippines (in accordance with the
in the Philippines if made with the formalities prescribed by the expressed policy in Art 819).
law of the place in which he resides, or according to the
formalities observed in his country, or in conformity with those Alien:Valid if Lex nationalii, Lex domicilii and lex loci
which this Code prescribes. (n) celibrationis allows it
Filipino: not allowed
Article 817. A will made in the Philippines by a citizen or Alien in Philippines: void
subject of another country, which is executed in accordance
with the law of the country of which he is a citizen or subject,
and which might be proved and allowed by the law of his own
country, shall have the same effect as if executed according to Extrinsic Validity of Holographic Wills
the laws of the Philippines. (n)
Art 810: a holographic will is one entirely written, dated and
It cannot be assumed that the Code places a Filipino citizen in signed by the hand of the testator himself. It is not subject to
a worse position than an alien in relation to our law. any other form, need not be witnessed and may be made in or
out of the Philippines.
The Code should have expressly stated this considering
general provision in Art 17. Aliens abroad: valid if considered as valid in lex N D L
In re Estate of Johnson Art 816 & 817 are also applicable to holographic wills
(1918)
FACTS: Ebba Ingeborg sought to annul the probate of the Merits:
o simple
will of his father Emil Johnson, because the resulting
o convenient
intestacy would be favorable to her as a sole heir. She
stresses that Section 636 of the Code Of Civil Procedure o does not require notarization
should not govern the will executed by her father in the US, o guarantees absolute secrecy
because the word “state” in the body of the section is not
capitalized (thus not referring to a State in the US). Demerits:
o peculiarly dangerous
HELD: This interpretation is erroneous because the full o an invitation to forgery
phrase “another state or country”, means that the section o short statements can confuse handwriting
refers to either a State in the US or another country. The experts
admission of the will to probate by the CFI of Manila under
Section 636 was therefore correct. Although the CFI Of
Manila most likely erred in taking judicial notice of Illinois Babcock Templeton vs. Rider Babcock
law when it promulgated that the will was executed in (1928)
conformity with the laws of Illinois, Ebba is now precluded FACTS: The will of Jennie Rider Babcock was executed in
to raise this issue because the petition to annul the probate California. Babcock Templeton, being the mother of the
did not allege the difference between Philippine Law and three beneficiaries of the will, stressed that the laws of
Illinois law. California should govern the probate since Jennie Rider
Babcock acquired domicile in California. William Rider
Babcock opposes this by stressing that her sister never
Extrinsic Validity of Joint Wills
acquired domicile in California as her latest domicile was
New York.
Art 818. Two or more persons cannot make a will jointly or in
the same instrument, either for their reciprocal benefit or for
the benefit of a third person. HELD: Her domicile was California, because even though
she later left California for New York, she never intended to
Joint wills are prohibited on grounds of public policy, because: be a New York domiciliary. The trial court was also correct
in admitting the will for probate under Section 636 of the
Code Of Civil Procedure, because the length of time of her
41
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
residence in and eventual death in the Philippines did not the Philippines adopt a system of legitimes as a matter of
result into a loss of her US citizenship. She never intended public policy, such policy does not extend to the
to become a Philippine domiciliary, thus making Section successional rights of foreigners.
618 inapplicable to the will she executed abroad.
B. Intrinsic Validity of Wills General Rule: the probate court can only rule on:
1) extrinsic validity
- governed by lex nationalii 2) due execution
3) testamentary capacity
Art 16: Real property as well as personal property is subject to 4) compliance with requisites/solemnities prescribed by
the law of the country where it is stipulated. law
__________________
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 C. Interpretation of Wills
provisions, shall be regulated by the national law of the person
whose succession is under consideration, whatever may be the Interpretation of wills is to be governed by lex nationalii.
nature of the property and regardless of the country wherein Decedent’s national law
said property may be found. (10a)
If terms are clear & unambiguous: lex intentionis
Buhanan case: Nevada law
When there are ambiguous provisions: intention of party may
Miciano vs. Brimo: Miciano, as the administrator of the estate be inferred by referring to context of the will & the testator’s
of Joseph Brimo, filed a petition for the partition of the estate. acts.
Andre Brimo opposed the partition because the will itself was
not executed in accordance with the laws of Turkey, in Article 1371. In order to judge the intention of the contracting
violation of Article 10 of the Civil Code. parties, their contemporaneous and subsequent acts shall be
principally considered. (1282)
The Court decided that although Andre Brimo opposed his
brother’s intention to have Philippine laws apply he was not Article 1375. Words which may have different significations
deemed to have contested the legacy, because the choice of shall be understood in that which is most in keeping with the
law clause in the will was contrary to law. Our laws apply the nature and object of the contract. (1286)
lex nationalii of decedent to determine intrinsic validity of a will
and this law was purposefully disregarded by decedent. The Presence of ambiguous provisions
Court considered this clause as not imposed and “shall I no Presumptions to help interpretation:
manner prejudice the heir even if the testator should otherwise 1) The interpretations of such should be determined in
provide. accordance w/ laws & customs of that state most probably in
mind of testator
Criticisms on the Miciano vs. Brimo decision: 2) In case a will admits of different dispositions, the
interpretation by which the disposition is to be operative shall
Considering the primacy of giving primacy to the last will and be preferred
testament of the decedent, the court should have respected
the wishes of the decedent (i.e. the clause in the will should Article 788. If a testamentary disposition admits of different
not have been annulled) by applying a policy-centered interpretations, in case of doubt, that interpretation by which
approach. the disposition is to be operative shall be preferred. (n)
established, and the estate distributed in accordance A will allowed in a foreign country in accordance with the law
therewith, if its contents, and due execution, and the of that country may be allowed in the Philippines… no need to
fact of its unauthorized destruction, cancellation, or prove testamentary capacity and due execution (see Article
obliteration are established according to the Rules of 817).
Court. (n)
Common Law conflicts rules…
Problem: Testator revokes his will in then domicile State A and 1) If the will is valid under the laws of the last domicile,
dies in his new domicile State B. If his revocation under the the will is valid everywhere with respect to movable
laws of State A is invalid under State B laws, what law will property
apply?
2) but the probate in the last domicile does not affect
Common law practice: law of the domicile at the time of death. real property, as these will be governed by lex rei
sitae
Philippine law: law of the place of revocation.
F. Administration of Estates
XVI. Choice of Law in Torts and Crimes
Duties of the administrator:
1) to manage and settle the debts of the decedent Tort: derived from the French word torquere or “to twist”. It is
(primary purpose) an act or omission producing an injury to another without any
previous existing lawful relation of which the act or omission
2) to distribute the residuum of the estate to the heirs may be said to be a natural outgrowth or incident.
(secondary purpose)
When the will has been proved or allowed, it is the duty of the A. Policies behind Conflicts Tort Law
probate court to issue letters testamentary thereon to the
person so named in the will upon the latter’s application. 2 Important Policies underlying substantive tort law:
When there is no will, the court may appoint an administrator. 1) to deter socially undesirable or wrongful conduct
b) ancillary- appointed by a foreign court to look after In view of these, the policy behind tort law will most likely be a
the properties located in such foreign state strongly held policy of the state and as result, that state will
not easily displace its own law with the law of another state.
Tayag vs. Benguet Consolidated Inc. In determining the applicable law, consider the policies of: a)
(1968) upholding the justified expectation of parties, and b)
FACTS: BCI stocks owned by the decedent Idonah Slade minimizing the adverse consequences that might follow from
Perkins were in the possession of the domiciliary subjecting a party to the law of more than one state.
administrator County Trust Company Of New York. Later,
Conflicts torts cases arise:
the CFI Of Manila named Renato Tayag as the ancillary
administrator. When Tayag obtained a court order for the
1) when the tortious conduct and place of resulting
County Trust Company to deposit the stocks to him, BCI injury are different and one state imposes higher
appealed. standards than the other state
HELD: The appeal must fail. BCI is a Philippine 2) when there are different product liability laws and
corporation owing full allegiance and subject to the varying judicial interpretations of the extent of liability
unrestricted jurisdiction of local courts. Its shares of stock
cannot therefore be considered in any wise as immune from
lawful court orders. The situs of shares of stock is the place substantial act, not depending on the numberof the
of domicile of the corporation. And since the power of the acts but the importance
ancillary administrator over shares located here is beyond
question, it follows that the stocks should be in the
possession of Tayag. Policies:
1) deter undesirable or wrongful conduct
Caduciary rights of the state: eschief proceedings ? 2) rectify consequences – by distributing the losses
similarity between family conflicts cases and torts
conflicts cases: strongly held policies of the state
Succession and administration of estates are governed by
3 concerns in torts:
different laws:
1) achieving just and reasonable results (consider the
succession – national law
interest of both parties
administration – situs of property (territorial/JDal)
2) societal interest
______________
3) shielding defendant from unnecessary surprise
Alabama case
G. Trusts
Distinguish: “upholding the legitimate expectations of parties”
Trust: a right of property, real or personal, held by one party vs. “shielding defendant from unnecessary surprise” – the first
for the benefit of the other. is used in contracts cases, the second is used in torts cases.
Why is the “place of the tort ( locus delicti)” difficult to drawn in numbers; instead the court localizes the state of the
determine? Different concepts of locus delicti: most significant relation and assesses the event or transaction
1) civil law: place of tortious conduct in the light of the relevant policy considerations of the
2) common law: place of injury/vested rights theory interested states and these underlying policies.
to determine lex loci delicti: determine whether you
are dealing with a civil law or common law country
________________ Saudi Arabian Airlines vs. CA
(1998)
B. Lex loci delicti commissi FACTS: Morada was a flight stewardess of Saudi Airlines.
She was involved in an attempted rape case, which led to
Lex loci delicti commissi: the law of the place where the her conviction of violation of Islamic laws in Saudi. The
alleged tort was committed. It determines the tort liability in Prince of Makkah ruled that she was wrongfully convicted.
matters affecting conduct and safety. However, she was terminated from her employment by
Saudia.
Difficulty has been encountered in determining the locus delicti
where the liability producing conduct happens in one state but
HELD: The RTC of Manila has JD to try the case, applying
the injuries are sustained in another.
the “state of most significant relationship rule.” The
Common law concept of place of wrong: place where the last following contacts should be considered in using this rule:
event necessary to make an actor liable for an alleged tort place where the injury occurred, place where the conduct
occurs. It adheres to the vested rights theory, so that if harm causing injury occurred,
does not take place then the tort is not completed. Negligence domicile/residence/nationality/place of business of the
or omission is not in itself actionable unless it results in injury corporation, and place where the relationship between the
to another. parties is centered.
Civil law concept of place of wrong: place where the tortious In CAB, the Philippines had the most significant contacts.
conduct was committed. This is premised on the principle that The overall injury occurred in the Philippines, Morada is a
the legality or illegality of a person’s act should be determined resident and a Filipina national, Saudia is a foreign
by the law of the state where he is at the time he does such corporation engaged in business here, and the relationship
act. of the parties is centered here.
The traditional view (whether the situs of the tort is the place 2. Interest Analysis
of conduct or injury) is that an actor liable by the lex loci
delicti is liable everywhere. Damages arising from torts This approach considers the relevant concerns the state may
committed in one state are actionable in another state. have in the case and its interest in having its law applied on
that issue.
Alabama Railroad vs. Carrol: the negligent infliction of an
injury in one state creates a right of action there, which may The court should first determine whether there is a true or
be enforced in any other state or country the comity of which false conflict.
admits of it.
False conflict: only one state has an interest in having its law
applied, and failure to apply the other state’s law would not
Loucks vs. Standard Oil Co. impair the policy reflected in that law.
(1913)
FACTS: Loucks, a NY resident, was run down and killed by Apparent conflict: more than one state has an apparent
Standard Oil employees in an accident while engaged in its interest in applying its law to the case.
business. Under Massachusetts law, the corporation is
liable for the death of a person where the death was caused Prof. Currie: if only one state has a real interest in the case
by the negligence of the corporation’s employees while and the other state’s interest is insubstantial then there is a
engaged in its business. However, under NY law, the false conflict. However, if both states have a real interest in
corporation is liable for such death where the death applying their law then the apparent conflict becomes a true
occurred in NY. The action to recover damages was filed in conflict.
NY.
FACTS: Schmidt sued Driscoll Hotel for illegally selling Conflicts torts cases arise due to significant differences in the
liquor to Sorensen, who was the driver of a vehicle which laws of states on the basis and extent of liability for defectively
turned over in Wisconsin. Schmidt was a passenger of that manufactured products.
vehicle and sustained injuries as a result of the accident.
The suit was filed in Minnesota, where the illegal sale was
conducted. Asahi Metal Industry vs. Superior Court of California
(1987)
HELD: Minnesota court has jurisdiction, even if the injury FACTS: Asahi Metal manufactures tire valve assemblies in
which followed the illegal sale occurred outside Minnesota. Japan and exports them, including to a Taiwanese company
The Restatement should not be applied where the plaintiff which, in turn, incorporates them into finished tires sold in
would have no remedy against the offending liquor dealer. the US. The driver of a motorcycle, who had an accident
Under the principles of equity and justice, the Minnesota resulting in injuries to him and death to his passenger, sued
law granting him a remedy should be applied, considering the Taiwanese company. The Taiwanese company filed a
that all the parties are residents of Minnesota, Driscoll cross-complaint against Asahi.
Hotel was licensed under Minnesota law, the violation of
Minnesota law occurred there, and the wrongful conduct HELD: The California court has no JD over Asahi Metal.
was completed by Sorensen in Minnesota. The constitutional touchstone/test of due process is
whether the defendant purposefully established “minimum
Schmidt illustrates the imposition of liability under a contacts” in the forum state. And “minimum contacts”
substantive rule of tort law that has a strong underlying must have a basis in some act by which the defendant
admonitory policy. purposefully avails itself of the privilege of conducting
activities within the forum state, thus invoking the benefits
and protections of its laws.
American Contributions to Conflicts Tort Law
In the CAB, no purposeful availment of the California
The determination of whether the law where the tort was market on the part of Asahi. It does not do business in
committed or the law of the domicile of the parties is the California; has no office, agents, employees, or property in
controlling law is considered one of the major contributions of Cal.; does not advertise or otherwise solicit business there;
American jurisprudence to international conflicts thought. and did not create, control, or employ the distribution
system that brought its valves to California.
Law of the tort: deemed as the proper law in questions
involving regulation of conduct.
Law of the domicile of the parties: governs in matters that
Societe Nationale Industrille Aerospatiale vs. Lee Kui Jak: An
relate to loss-distribution or financial protection.
Aerospatiale helicopter crashed in Brunei, killing a passenger
who was a Brunei resident. The administrator of the estate
brought the action in Texas, where Aerospatiale does business.
In modern approaches, there is a distinction between true or Held: Brunei (where the deceased lived and the helicopter
false conflict. crashed) was the natural forum for the trial for an action for
damages against the manufacturer of the helicopter, and it
True conflict: both states have an interest in having would be oppressive for the plaintiffs to continue with the
their law applied Texas proceedings as Aerospatiale would not be able to pursue
“maybe true” conflict legal proceedings against the Malaysian company which
false conflict: no choice necessary – the court should operates and services the helicopter.
apply the law of the only interested state
_______________ Bier vs. Mines de Potasse: A Dutch market gardener filed an
action for damages in a Dutch court against a French mining
company. The Dutch court held that it had no JD, but the
D. Foreign Tort Claims French court held that the plaintiff could elect where to sue
(place of damage or place of injurious conduct).
Tortious liability is transitory – the liability resulting from the
tort is deemed personal to the perpetrator of the wrong, which Sovereignty as Basis of Jurisdiction
follows him wherever he goes. Compensations may be exacted
from him in any proper tribunal; the right to sue is not The sovereignty model has been accepted both to:
confined to the place where the cause of action arises. a) justify any exercise of jurisdiction over a defendant
present within the territory, however short (“tag
i. Conditions for the enforcement of tort jurisdiction”)
claims
b) deny enforcement of a foreign court judgment over a
a) the foreign tort is based on a civil action and not on a defendant who was not present within that court’s
crime jurisdiction
forum, and to ensure that the states, through their courts, FACTS: Guinto and Suarez filed an action for damages
do not reach out beyond the limits imposed on them by against Marcos in California under the Alien Tort Claims
their status as coequal sovereigns in a federal system. Act. According to Guinto, Marcos’ act of seizing their film
“100 Days in September” violated their freedom of speech.
In CAB, there us a total absence of those affiliating
circumstances that are a necessary predicate to any exercise HELD: Test to determine when a violation of the law of
of state-court JD (no activity whatsoever on Oklahoma; no nations has occurred – there has been a violation by one or
sales closed nor services performed there; no availment of more individuals of those standards, rules or customs a)
the privileges and benefits of Oklahoma law; no solicitation affecting the relationship between states or between an
of business there). individual and a foreign state, and b) used by those states
for their common good and/or dealings inter se. A
violation of the First Amendment right of free speech does
not rise to the level of such universally recognized rights as
In Asahi, even if there were minimum contacts, it failed the to constitute a violation of the law of nations.
reasonableness test.
Criticism of Asahi: “additional acts” requirement is a The Alien Tort Statute justifies exercise of court JD over
reinvention of the stream of commerce law. The fear is that completely foreign tort cases because of the universal evil
the court might go back to pre- International Shoe standards n exemplified by human rights violations. This is so even though
JD (requirement of actual presence). there are no significant contacts between the courts and the
parties and events nor substantial state interest in the case
In Worldwide Volkswagen, the only requirements for the other than a general desire for compliance with customary
exercise of JD were minimum contacts and the reasonableness international law. That is why in order for the Alien Tort Act to
test; Asahi did not follow this, and include an additional apply, there is a need to establish that the tortious conduct
requirement (purposeful availment). violated an internationally protected human right.
________________
HELD: The court has JD. In a prior appeal it has been held
that subject-matter JD was not inappropriately exercised Time, Inc. vs. Reyes
even though the actions xxx occurred outside the US. (1971)
FACTS: Villegas and Enrile filed a complaint for damages
against Time, Inc. upon an alleged libel arising from a
Filartiga vs. Pena-Irala publication of Time Magazine. Plaintiffs filed their action in
(1980) CFI Rizal. But according to the applicable law, they may file
FACTS: Plaintiffs brought an action in the US against Pena- the action only in the place of first publication or in the City
Irala for wrongfully causing the death of Dr. Filartiga’s son of Manila (since they are public officers).
in Paraguay.
HELD: The case should be dismissed for improper venue.
HELD: The US federal court has JD, on the basis of the The only alternative allowed to the public official is to
Alien Tort Statute. This action is undeniably an action by an prosecute in the place where the offending article was
alien, for a tort only, committed in violation of the law of printed and first published; but in the CAB the alternative
nations. A wrong is recognized as a violation of the law of was not open to plaintiffs since the offending publication
nations where the nations of the world have demonstrated was not printed in the Philippines.
that the wrong is of mutual, and not merely several,
concern.
In Time, Inc., if the court had not characterized the issue as
jurisdictional, and decided the case from a conflicts tort
*The concept of accountability, if considered the core of the perspective, it could have taken cognizance of the case
Alien Torts Act (as espoused by the US Justice Department following the most significant relations approach because of
in Trajano vs Marcos), would be a significant setback to the the significant links between the forum and the parties.
advancement of international law.
48
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
HELD: Philippine courts have jurisdiction. Although the b. he exercises right in good faith and for a specific and
mere possession of an article of prohibited use in the honest purpose not merely to satisfy curiosity or for
Philippines, aboard a foreign vessel in transit, in any local speculative or vexatious purposes.
port, does not as a general rule constitute a crime triable by
the courts of the Islands, such vessel being considered as an Anglo American Theory on Corporations
extension of its own nationality, the same rule does not
apply when the article, the use of which is prohibited in the
Islands, is landed from the vessel upon Philippine soil. Bank of Augusta vs. Earle
(1839)
3) Third Exception: crimes which, although committed FACTS: Bank of A (incorporated in Georgia), thru M’Gran
by Philippine nationals abroad, are punishable under bought bills from Earle in Alabama. Bills were unpaid so
Philippine law (ex. Art. 2 RPC) Bank sued Earle. TC ruled that the Georgian Bank could not
exercise power in Alabama thereby making the contracts
void.
XVII. Choice of Law Affecting Corporations and Other 3) no state is under any obligation to adhere to the
Juridical Entities doctrine of comity (every state has the power to
refuse recognition)
Foreign corporation – formed under the laws of a state other a) commerce clause – prohibits a state from imposing
than the Phils; such laws allowing Filipino citizens and conditions on corporations engaged in interstate
corporations to do business there. It shall have a right to do commercial activities and provides the basis of federal
business here only after obtaining a license and a certificate of power to regulate interstate commerce.
authority from the appropriate government agency.
b) Since it is considered a “person”, once allowed to
1. Personal Law of a Corporation enter a state and acquire property, it cannot be
discriminated against by domestic corps
The personal law of the corporation is the law of the state
where it is incorporated. If the law creating it does not c) Unconstitutional conditions – forbids a state from
authorize it to enter into certain contracts, such contracts requiring the foreign corporation to give up its
which can be made in other states shall be void despite the constitutional rights either as a prerequisite to
express permission given by the other state. allowing it to do business or to avoid being removed
from that state
ME Gray vs. Insular Lumber Co. A foreign corporation, although a person, is not a citizen
(1939) entitled to the privileges given by the state to its individual
FACTS: Gray, a stockholder of Insular (incorporated in NY) citizens.
filed an action in CFI to compel Insular to allow him to
examine its books. Sec. 77 of NY Stock Corp Law only gives
the right to stockholders owning 3% of the capital stock of If according to the personal laws of the corporation,
the company. Gray does not own the required shares. stockholders are given certain rights, such rights cannot be
diminished nor added upon by the law of the place where the
HELD: Gray is not entitled to the right to examine the corporation does business. This is because such rights are
books of Insular. Gray is bound by the NY law which only already fixed by the corporation.
gives him the right to receive from the treasurer of the ________________
corporation a statement of affairs covering a particular
account of all its assets and liabilities. Neither can his rights
be granted under common law absent a showing that: 2. Exceptions to the Rule of Incorporation
a. he seeks information for an honest purpose or to Test
protect his interest as stockholder
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
a. Constitutional and Statutory Restrictions enmity. These qualities are attributable only to human beings.
The company therefore had the predominant character of its
A state may, by legislation, exclude a foreign corp altogether, shareholders being Germans.
subject to the constitutional limitations, or prescribe any
conditions it may see fit as a prerequisite to the corporation’s
right to do business within its territory. 3. Domicile or Residence of Foreign
Corporations
1987 Phil Constitution:
Art. 51, CC
a. regulates exploration, development and utilization of When the law creating or recognizing them, or any other
natural resources such that only 60% Filipino-owned provision, does not fix the domicile of juridical persons, it is
corps may be allowed to engage in these activities understood to be
b. the nation’s marine wealth and the exclusive a. the place where legal representation is established
economic zone is reserved exclusively to Filipinos b. where they exercise their principal functions
c. Congress is empowered to reserve certain areas of
investments to 60 % Filipino owned corps or provide A foreign corp. granted license to do business here acquires a
for a higher percentage (e.g. mass media – 100%) domicile in the Phils.
Pedro Palting vs. San Jose Petroleum State Investment House vs. Citibank
(1966) (1991)
FACTS: Palting opposes the tie-up between San Jose FACTS: CMI obtained loans from Citibank. CMI defaulted.
Petroleum (a Panamanian corp.) and San Jose Oil (domestic Citibank filed petition for involuntary insolvency against
corp.) as being violative of the Constitution and the CMI with CFI, Rizal. State Investment, a creditor of CMI,
Petroleum Act. SJP claimed that it is entitled to the Parity opposed claiming that Citibank had no jurisdiction because
Amendment which grants to US citizens the right to use & the banks are not resident creditors of CMI.
exploit natural resources in the Phils because its
stockholders are US citizens. HELD: The Phil branches of the bank are residents of the
Phils being resident foreign corporations as defined in the
HELD: SJP is not covered by the Parity Agreement. It is not Tax Code and other Banking Laws. What effectively makes
a foreign corp a resident corp in the Phils is its actually
owned or controlled directly by US citizens. It is owned by
another Panamanian corp., Oil Investments. Oil being in the Phils and licitly doing business here (locality of
existence) The grant of license merely gives legitimacy to its
Investments on the other hand is owned by 2 Venezuelan
corps. Even assuming that the stocks of the 2 Venezuelan doing business here but it does not make the corp a
resident. Also, the failure of the bank to aver categorically
corps are owned by US citizens, to hold that the set-up in
CAB falls within the Parity Amendment is to unduly that they are residents are not fatal to the cause of action
where it alleged that it is a foreign bank licensed to do
stretch and strain the language and intent of the law. There
would be practical impossibility to determine at any given business here.
time the citizenship of the controlling stock.
During wars, courts may pierce the corporate identity and look
into the nationality of stockholders to determine the citizenship
4. Jurisdiction Over Foreign Corporations
of the corp.
The dictum that a corporation has force only in the
incorporating state and no existence outside that state has
Filipinas Compania de Seguros vs. Christern, Huenfeld, been abandoned. The prevailing rule is, with the consent of a
Co., Inc. state, a foreign corp. shall be recognized and will be allowed to
(1951) transact business in any state, which gives its consent.
FACTS: Christern (German Co.) filed a claim against
Filipinas (US Co.) for recovery on fire insurance policies Requirements for License: Secs. 125-128, Corpo Code)
issued by the latter. F refused to pay claiming that the a. sworn application
policies ceased to be in effect on the date the US declared b. copy of articles of incorporation
was against Germany. Dir. Of Bureau of Financing directed c. designation of an agent
F to pay C. d. sworn certification of an official of the incorporating state
that a similar right is given to Filipinos in that state and
HELD: The policy ceased to be valid and binding because that the foreign corp. is in good standing
of the fact that majority of the stockholders of C are e. statement under oath by the official of the corp. attesting
Germans and it became an enemy corporation when war that the corp is solvent and in sound financial condition
was declared. Under Phil Insurance Code, anyone except a
public enemy may be insured. C is a public enemy at the
Foreign Corporations doing Business are Bound by Philippine
time the insurable risk occurred. But C is entitled to a
Law
return of the premiums paid.
Art. 129, Corp Code
All foreign corporations lawfully doing business in the
Filipinas Compania case was decided that way because of the Philippines shall be bound by all laws, rules and regulations
government interest involved. applicable to domestic corporations.
_______________
Exceptions:
Daimler Co. Continental Tire and Rubber Co.: HELD: An 1. laws on creation, formation, organization or dissolution of
English corporation with an English secretary but whose shares corporations
of stock are controlled by German nationals was considered an 2. laws which fix the relations, liabilities, responsibilities or
enemy corporation and prohibited from trading in England. It duties of stockholders, members or officers of the corp to
ruled that the company itself was incapable of loyalty or each other
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
(1957)
Rule 14, Sec. 14 ROC FACTS: Eastboard was able to secure a favorable decision
Service upon foreign corporations doing business in the Phils. from NY arbiters against J.Y. & Co. It brought an action for
may be made on the: enforcement of a money claim against JY & Co. in the Phils.
JY opposed alleging that E had no capacity to sue.
1. resident agent
2. in the absence thereof, to the government official HELD: E has capacity to sue. The license is not necessary
designated by law or any of its officers or agents within because it is not engaged in business in the Phils. The 2
the Phils
isolated transactions do not constitute engaging in business
3. on any officer or agent of the corp in the Phils
within the purview of the Corpo Law.
*a fourth method is established by case law: service thru
diplomatic channels
b. Action to Protect Trademark, Trade
Name, Goodwill, Patent or for Unfair
Competition
Art. 133, Corp Code states that these corporations may be Converse Rubber vs. Jacinto Rubber:
sued or proceeded against before Phil courts or administrative FACTS: Converse owns the trademark of “Converse Chuck
tribunals on any valid cause of action recognized under Phil
Taylor All Star”. Jacinto manufactures shoes of identical
law.
appearance. Hence, this suit.
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
license but doing business without such license which bars - the progressive prosecution of commercial gain or of the
a foreign corporation from access to our courts. purpose/object of the business organization
52
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
FACTS: Lara spouses entered into a Futures Customer Derivative Jurisdiction over Foreign Corporations (parent-
Agreement with Merrill Lynch Futures Inc. They become subsidiary)
indebted to it after a loss in the business. Laras refused to 2 Important Issues
pay and claimed that the transactions were void because 1. whether ownership by the parent over the subsidiary’s
MLFI had no license to operate as a commodity or financial stock is enough to give jurisdiction over the subsidiary
futures broker. 2. whether the activities of the subsidiary in a state will give
that state jurisdiction over he parent corporation
HELD: MLFI had the capacity to sue and Laras are
Restatement 2nd:
estopped from denying the same after having done
Jurisdiction over the parent will exist if the parent controls and
business with it over many years. The purpose of applying
dominates the subsidiary. In determining whether the separate
the doctrine of estoppel is to prevent persons from taking
corporate existence of the subsidiary has been adequately
undue advantage of a corp’s non-compliance with the preserved, the courts will consider whether the subsidiary has
statutes where such person received benefits under their its own records, assets, advertising, employees, payroll and
contract. accounting and whether its directors and headquarters are
different form those of the parent.
Granger vs. Microwave Systems In the converse situation, jurisdiction over the parent may give
(1990) jurisdiction over the subsidiary if the separate corporate
FACTS: Granger (US) sued MSI (Phil) for recovery of a sum existence of each has not been adequately maintained or if the
of money. MSI did not pay and claimed that G had no parent has acted within the state as the subsidiary’s agent.
capacity to sue bec. it was unlicensed.
B. Special Corporations What matters are governed by the personal law of the
partnership?
1. Religious Societies and the Corporation 1. nature, attributes and capacity to contract of the
Sole partnership
A religious society, if controlled by aliens, is not permitted to 2. whether or not a partnership has been constituted (esp.
acquire lands. the conditions and formalities required)
3. determination of WON it requires a separate juridical
A corporation sole is an incorporated office composed of only personality (Common law does not consider a partnership
one person as in the cases of the chief archbishop, bishop, a legal person but civil law endows partnerships with a
priest, minister or an elder of a religious sect which may form separate legal personality)
a corporation sole for the purpose of managing its affairs, 4. grounds for dissolution and termination of partnerships
property and temporalities. 5. liability of partners esp. if limited partnership is allowed
As to liability, the single unit comprising the cluster is held PART FIVE: FOREIGN JUDGMENTS
liable according to the laws of the host country but the
transnational corporation, in its entirety, is not answerable to XVIII: Recognition and Enforcement of Foreign
any legal order. Judgments
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
A. Distinction between Recognition and obligation or excuses the defendant from performance is a
Enforcement good defense to the action (ex. Evidence that court
exceeded its jurisdiction or the judgement was obtained
‘Foreign judgments’- all decisions rendered outside the forum thru fraud)
and encompasses judgments, decrees & orders of courts of
foreign countries as well as of sister states in a federal system
of gov’t. C. Policies Underlying Recognition and
Enforcement
Conceptual & Procedural Differences between Recognition &
Enforcement: 1. Res judicata
Rules on recognition & enforcement are analogous but there
are differences in conceptual & procedural aspects. Many courts recognize & enforce foreign judgments on ground
of res judicata, under which principle:
ENFORCEMENT: This happens when a successful plaintiff fails a. those who contested an issue shall be bound by
to enforce judgment in the forum court so he seeks to carry the result &
out the execution of the judgment in another state. b. matters once tried & decided w/ finality in one
jurisdiction shall be considered as settled b/w the
This requires the filing of an action and a new judgment before parties
the properties of the defendant can be attached.
Thus, parties are prevented from litigating issues already
RECOGNITION: This may arise when a successful defendant determined by a local judgment.
wins and asserts that decision to preclude the plaintiff from
filing a suit on the same claim in another forum. It is basically In Anglo-American jurisprudence, foreign judgments are not
a passive act because it does not require the filing of an action open to reexamination on merits when placed in issue before
in another forum. EX. Decree of divorce. local courts subject to a few exceptions.
2) “Obligation of foreign judgments” It considers the plaintiff’s cause of action as merged in the
judgment. Thus, he may not relitigate that exact same claim.
This doctrine of obligation is derived from the rigid &
unyielding vested rights theory. 3. Bar
Judgment of a foreign court of competent jurisdiction is
considered as imposing a duty or obligation on the losing This is where a successful defendant interposes the judgment
litigant. in his favor to avert a second action by plaintiff on the same
i.e.: claim. By direct estoppel, the relitigation of all matters decided
Forum 1- adjudicates debt owing to plaintiff are precluded
Forum 2- treats F1 judgment as evidence of debt w/c
may be enforced in F2 by an action of debt In addition, DOCTRINE OF COLLATERAL ESTOPPEL renders
conclusive all “essential issues of fact actually litigated in the
suit decided on by the foreign court”.
Goddard vs. Godard
(1870) Distinction between Res Judicata & Collateral Estoppel
FACTS: Godard (French) obtained a favorable ruling by a
French court arising on a charter party obligation against RES JUDICATA- seeks to end litigation by disallowing suit on
Gray (English). The French court interpreted the clause the same claim
“penalty for non-performance of this agreement, estimated
amount of freight” as a clause that sets the limits to liability COLLATERAL ESTOPPEL- concerned with preclusion by barring
to one voyage between the parties to the charter party relitigation of an issue already litigated on in a prior proceeding
contrary to the English interpretation. When this French
D. Requisites for Recognition or Enforcement
judgment was sought to be enforced in England, Gray
interposed in defense that the erroneous French judgement
1) The foreign judgment was rendered by a judicial or a
is a bar to the action for enforcement in England.
quasi-judicial tribunal which had jurisdiction over the
parties & the case in the proper judicial proceeding.
HELD: it is not a bar. In England, foreign judgement are
enforced based on the principle that where a court of 2) The judgment must be valid under the laws of the
competent jurisdiction has adjudicated a sum of money to court that rendered it
be due from one person to another, a legal obligation arises
to pay the sum, on which an action of debt to enforce the 3) The judgment must be final & executory to constitute
judgement may be maintained and not merely out of res judicata in another action
politeness and courtesy to other tribunals of other
countries. Anything that negates the existence of a legal
54
COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
Sharp did not designate an agent so service on govt official The polestar is whether a reasonable method for notification is
or any of its officers in Japan is allowed. The Court finds employed & reasonable opportunity to be heard is given to the
that the service made by Tokyo court sufficient to fall under person concerned.”
service to the proper govt official.
Borthwick vs. Castro
(Tokyo DC- SC Japan – Ministry of Foreign Affairs of Japan (1987)
– Japanese Embassy – DFA, Phils – RTC – sheriff delivered FACTS: Borthwick (US) owned real properties in Hawaii.
summons to principal office) He issued promissory notes to Scallon but failed to pay the
same. Scallon sued him in Hawaii. B was issued summons
while in California which process was valid under
Hawaiian law. For failure to enforce the judgement, S filed
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
action in Phils. B’s defense is that the Hawaii court has no spouse is respected by other states but such decree has no
jurisdiction over the cause of action and over his person. effect in another state as to facts and conditions occurring
subsequently to date of decree. Court of another state may
HELD: Foreign judgements are presumptive evidence of award custody otherwise upon proof of subsequent matters
the rights between parties and rejection may be justified, justifying such decree to the child’s interest.
among others, by want of jurisdiction of the issuing
authority, among others. But in CAB, such rejection was not
justified. What Borthwick seeks in this appeal is a 3 rd chance 4. The state where the foreign judgment was obtained allows
to contest the jurisdiction of the foreign court. In order to recognition or enforcement of Philippine judgment
do that, he must show that the declaration of default was
incorrect. But Borthwick did not do this. Borthwick was In Hilton vs. Guyot, a French judgment was not recognized by
given an opportunity to file his answer in the Hawaii court, a US court because it found out that French laws allowed
he was also given a chance in the CFI, Makati, but he failed review of American judgments on the merits. This ruling is
to do the same. widely criticized because:
Instead of being a mutual exchange of privileges, comity
was used as a means of retaliation.
The court in Hilton discriminated against the litigants on
2. The judgment must be valid under the laws of the court
account of the policies of their governments which they
that rendered it
were in no position to shape and alter.
It can be argued that the task of formulating policies
In Pemberto vs. Hughes although there was error in
through reciprocity is a power misplaced in the judiciary
procedure, since the Florida court was competent & no
and should be appropriately wielded by the other
substantial injustice was committed, the English court did not
branches of government.
consider the error as to significantly alter an otherwise valid
decree.
Trautman and Von Mehren point out the difficulties with the
reciprocity requirement.
3. The judgment must be final & executory to constitute res
a. its normal tendency is to lower rather than
judicata in another action
raise the standards of practice
b. the private litigants burdened may not be
If judgment is interlocutory or provisional in character w/c
closely attached to the legal order sought to
‘contemplates that a fuller investigation leading to final
be changed
decision may later be held, it creates no obligation on the
c. the administration of reciprocity clauses can
forum court to recognize it.
be complicated esp. where case law systems
are affected since finding the exact foreign
law that grants reciprocity is still nebulous. It
Nouvion vs. Freeman
is unclear whether reciprocity is proved by
(1889)
general recognition of such or requires a
FACTS: Nouvion filed an action for administration of the specific recognition for a case identical or
estate of Henderson. In order to show that he was analogous to the one before the court.
Henderson’s creditor, Nouvion alleged that he obtained a
foreign judgment establishing Henderson’s indebtedness to
him.
Cowans, et al. vs. Teconderoga Pulp and Paper Co.
(1927)
HELD: The Spanish judgment cannot be sustained because
FACTS: Cowans obtained a Quebec judgment in their favor
it was not yet final and conclusive. Where a court of
for a sum of money. TPP asserts in defense that this
competent jurisdiction has adjudicated a certain sum as due
judgment is not conclusive upon, but merely a prima facie
from one to another, a legal obligation arises, on which an
evidence before the US courts, pursuant to Quebec law.
action of debt to enforce judgment may be maintained. But
TPP alleges that since Quebec law does not reciprocate as to
to come within the terms of law properly laid down,
judgements of NY courts, NY should also not recognize the
judgment must result from an adjudication of a court of
Quebec judgment as adjudications of the issues.
competent jurisdiction, such judgement being final and
conclusive. It is not sufficient that the judgement puts an HELD: This claim of TPP pursuant to the Hilton vs. Guyot
end to and finally settles controversy. It must e shown that doctrine should not be followed. Persuasiveness of a
in the court by which it was pronounced it conclusively and foreign judgment is not dependent upon comity nor
finally settles forever the existence of debt of which it is reciprocity. Even without these principles, a judgment has
sought to be made conclusive. its own strength. Following the Hilton vs. Guyot ruling
would deprive a party of the private rights he has acquired
by reason of a foreign judgement because the country in
Querubin vs. Querubin whose courts the judgement was rendered has a different
(1950) rule of evidence than what the recognizing court has and
FACTS: Following their divorce because of Margaret’s does not give the same effect as the latter gives to a foreign
infidelity, rendered in New Mexico, their daughter judgment.
Querubina was kept in a neutral home. Silvestre then
obtained an interlocutory decree granting him custody. 5. The judgment must be for a fixed sum of money
Margaret had the decree modified since the she was
remarried and had a stable home for Querubina. When Unless the foreign judgment specifies performance or delivery,
Silvestre fled to the Philippines with Querubina, Margaret there is nothing for the forum court to enforce. In Sadler vs.
filed for habeas corpus. She asserts that the interlocutory Roberis, the English court held that until taxation, the plaintiff
order should be complied with pursuant to Article 48 Rule could not enforce his claim because the Jamaican court
39. decided that from the sum due him should first be subtracted
the costs incurred by the defendant which was to be taxed.
HELD: Her contention is erroneous. A foreign interlocutory Hence, the amount decreed was not fixed.
order in favor of Margaret did not establish a vested right
with respect to rightful custody over Queribina. The decree 6. The foreign judgment must not be contrary to the public
is not yet final but subject to change with the circumstances. policy or the good morals of the country where it is to be
Generally, divorce decree awarding custody of child to one enforced
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
refused if such were taken without giving the child opportunity Requirement to file an action anew
to be heard or if contrary to public policy.
Attempt to reconcile the principle of territorial jurisdiction of
Violation of ordre public & nonobservance of due process are courts w/c demands that the enforcement of a judgment
included as grounds for non-recognition in many Hague outside the territory of rendering court must be placed upon
Conventions. some other basis than the authority of the rendering court w/c
ceased at its jurisdictional limits- & the principle of res judicata.
2. The EEC Convention of 1968 B. Second Mode: Exequatur - -Summary proceeding also
known as ‘exequatur’ procedure.
Six countries comprising the European Economic Community Authenticated copy of foreign judgment need only be
are signatories to Convention on Jurisdiction of Courts & accompanied by a certification from Clerk of Court. Once
Enforcement of Decisions… validated the foreign judgment has same effect as local
judgment. Example: French formule executoire, used in
The Convention extends to Common Market area the reach of France, Italy, Austria
jurisdictionally improper for a now available against non-
residents under procedural systems of 4 member states. C. Third Mode: Judgment Registration
3. The Uniform Money-Judgments Recognition Act It may or may not involve judicial supervision. Authenticated
copy of foreign judgment filed w/ registrar’s office w/ other
This seeks to inspire more confidence in stability of American proofs required by domestic laws & foreign judgment is
law & bring together into one statute all common law rules of converted into a local one that is immediately executory.
recognition from jurisprudence.
It is used in Australia, England.
What does the act cover?
It is applicable to any foreign country judgment that is final & Distinctions between a foreign country & a sister-state
conclusive & enforceable when rendered even though an judgment in United States
appeal is pending or it is subject to appeal.
These differences are premised on possible absence of
principles underlying res judicata practices within foreign
G. Procedure for Enforcement country.
The Philippines has adopted the common law practice of not Von Mehren & Trautman: There are significant differences
instantaneously executing foreign judgment. between the 2 to justify refusal of a foreign country judgment
even though it could be recognized if rendered by a sister
MODES OF ENFORCEMENT state:
1) US Constitution clause of full faith and credit. This
A. First Mode: Need for New Judicial Action substitutes a federal policy in place of individual state
policies, thus demanding that sister-state judgments
Procedure in Philippines be given more than minimal preclusive effects.
(Compared to simple procedure of exequaure, Philippine mode 2) Judgments of sister-state may be brought to US
is protracted & expensive). Supreme Court for review
3) Judgments rendered by sister states are based on
Our laws require that a petition should be filed in proper court legal procedures & standards similar to those whose
attaching authenticated copy of foreign judgment to be recognition is sought.
enforced.
On the other hand, a foreign country judgment may have been
Philippine consul must certify that it had been rendered by a decided under rules that disregard private rights & duties or
court of competent jurisdiction. The petition must comply w/ fundamental policies that the recognizing court deem
all the requisites of an enforceable judgment. important.
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COURSE OUTLINE IN CONFLICT OF LAWS
By: Atty. Enrique V. dela Cruz, Jr.
Maritime laws
Caduciary rights
2176 2180 20,21,26,32 2187 codal for torts
Foreign torst, no governing statutory law but law of
decedent’s basta with minimum contacts and accused
can be served with summons
Rule of generality
Protective theory
Alien torts statute
Right to sue –
Consent doctrine
39 scra 376
201 scra 137
partnerships
59