Saudi Arabian Airlines v. Court of Appeals, Milagros P. Morada and Hon. Rodolfo A.

Ortiz

G.R. No. 122191, October 8, 1998

Ponente: J. QUISUMBING

Facts: Milagros P. Morada, a Filipino flight attendant employed by Saudi Arabian Airlines (SAUDIA),
alleged that she was sexually assaulted by a fellow crew member while on a layover in Jakarta,
Indonesia. Morada reported the incident to SAUDIA, but the airline purportedly took no action to
address her complaint. Instead, SAUDIA allegedly coerced Morada into signing a document renouncing
the charges against her assailant and subsequently terminated her employment. Morada then filed a
complaint in the Regional Trial Court of Quezon City, asserting claims of breach of contract and wrongful
termination against SAUDIA. In response, SAUDIA filed a motion to dismiss, contending that the
Philippine court lacked jurisdiction to hear the case since the alleged misconduct occurred in Saudi
Arabia. The trial court denied SAUDIA's motion to dismiss, prompting SAUDIA to file a petition for
certiorari with the Court of Appeals.

Issue:

The primary issue before the courts was whether the Philippine court had jurisdiction to adjudicate
Morada's claims against SAUDIA, given that the alleged incidents took place in a foreign jurisdiction
(Saudi Arabia).

Ruling:

The Philippine Court of Appeals and Supreme Court ruled in favor of Milagros P. Morada, holding that
the Philippine court had jurisdiction to hear the case against Saudi Arabian Airlines (SAUDIA), even
though the events occurred in Saudi Arabia. The courts based their decision on two main factors:
Morada's Filipino citizenship: The Philippines has an inherent interest in ensuring the rights of its
citizens, even if they are abroad. SAUDIA's business activities in the Philippines: SAUDIA's continuous
business operations in the Philippines establish a sufficient nexus to justify the court's jurisdiction. The
courts also found that Morada's complaint stated a valid cause of action. This decision affirms the rights
of Filipino citizens working abroad and emphasizes the extraterritorial reach of Philippine law when
protecting the rights of its citizens against foreign entities conducting business within the country.

In other words, the Philippine court can exercise its authority over cases involving Filipino citizens or
foreign companies that are doing business in the Philippines, even if the events occurred outside of the
Philippines.