Professional Documents
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The courts of the forum (local Court) the parties have expressly agreed upon a
will not enforce any foreign claim time limit on their obligation, a statute
obnoxious to the forum’s public policy. which invalidates the agreement and
To enforce the one-year prescriptive directs enforcement of the contract after
period of the Amiri Decree No. 23 of the time has expired increases their
1976 as regards the claims in question obligation and imposes a burden not
would contravene the public policy on contracted for.
the protection to labor. The Texas statute as here construed and
In the Declaration of Principles and State applied deprives the garnishees of
Policies, the 1987 Constitution property without due process of law. A
emphasized that:“The state shall state may prohibit and declare invalid
promote social justice in all phases of the making of certain contracts within its
national development” (Sec. 10). borders. It may prohibit performance
‘The state affirms labor as a primary within its borders. Even of contracts
social economic force. It shall protect validly made elsewhere, if they are
the rights of workers and promote their required to be performed within the state
welfare” (Sec. 18). and their performance would violate its
In Article XIII on Social Justice and laws. But, in the case at bar, nothing in
Human Rights, the 1987 Constitution any way relating to the policy sued on,
provides: “Sec. 3. The State shall afford or to the contracts of reinsurance, was
full protection to labor, local and ever done or required to be done in
overseas, organized and unorganized, Texas. All acts relating to the making of
and promote full employment and the policy and contracts of reinsurance
equality of employment opportunities for were done in Mexico or in New York.
all.”
9. ALLSTATE INS. CO. V. HAGUE
8. HOME INS. CO. V. DICK
The decedent was a member of
Doubtless a state may prohibit the Minnesota's workforce. The State of
enjoyment by persons within its borders employment has police power
of rights acquired elsewhere which responsibilities towards non-resident
violate its laws or public policy, and, employees that are analogous to those it
under some circumstances, it may refuse has towards residents; as such
to aid in the enforcement of such rights. employees use state services and
But the Mexican corporation never was amenities and may call upon state
in Texas, and neither it nor the facilities in appropriate circumstances.
garnishees invoked the aid of the Texas Also, the State's interest in its
courts or the Texas laws. commuting non-resident employees,
And, in the absence of a contractual such as respondent's decedent, reflects a
provision, the local statute of limitation state concern for the safety and
may be applied to a right created in wellbeing of its workforce and the
another jurisdiction even where the concomitant effect on Minnesota
remedy in the latter is barred. In such employers. That the decedent was not
cases, the rights and obligations of the killed while commuting to work or while
parties are not varied. When, however, in Minnesota does not dictate a different
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result, since vindication of the rights of absent class members because each class
the estate of a Minnesota employee is an member was provided with notice of the
important state concern. Nor does the action, an opportunity to appear in
decedent's residence in Wisconsin person or through counsel, an
constitutionally mandate application of opportunity to opt out, and adequate
Wisconsin law to the exclusion of forum legal representation. The Supreme
law. Employment status is not a Court's analysis centered on
sufficiently less important status than distinguishing among the different
residence, when combined with the burdens of litigation placed upon class
decedent's daily commute across state action plaintiffs as opposed to those
lines and the other Minnesota contacts placed upon a defendant in a non-class
present, to prohibit the choice of law suit.
result in this case on constitutional state court may exercise personal
grounds. jurisdiction over the claims of
Petitioner was at all times present and nonresident class members constituted a
doing business in Minnesota. By virtue vital step in the process of ensuring the
of such presence, petitioner can hardly full and fair litigation of multistate class
claim unfamiliarity with the laws of the actions. A decision otherwise would
host jurisdiction and surprise that the have denied judicial access to multistate
state courts might apply forum law to class action plaintiffs with small
litigation in which the company is monetary claims, thus contradicting the
involved. Moreover, such presence gave explicit purpose of class action
Minnesota an interest in regulating the adjudications. Although precedent
company's insurance obligations insofar supports the Court's conclusion, the
as they affected both a Minnesota Court's analysis in reaching this
resident and court-appointed conclusion was inadequate. Generally,
representative (respondent) and a restrictions are placed upon a state
longstanding member of Minnesota's court's exercise of personal jurisdiction
workforce (respondent's decedent). for two reasons: first, to guarantee
In addition to the other contacts, protection of the personal liberty
respondent became a Minnesota resident interests of the parties to the
prior to institution of the instant litigation;second, to protect state
sovereignty concerns. The Shutts Court,
litigation. She subsequently
however, based its decision primarily on
matters of convenience,'" rather than
10. PHILLIPS PETROLEUM CO. V. SHUTTS conducting a complete analysis of the
controversial aspects of personal
jurisdiction.
Although some of the class members The minimum contacts test is premised
were non-residents who had no contacts on the theory that due process permits
with the forum state, the class members state courts to exercise personal
were plaintiffs, and therefore the jurisdiction over nonresident defendants
traditional minimum contacts test for who have certain contacts with the
personal jurisdiction was not applicable. forum state. Thus, the minimum contacts
The Shutts Court also concluded that due requirement ensures that the
process considerations were afforded to maintenance of the action in a forum
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does not offend the "traditional notions points of contact or connecting factors
of fair play and substantial justice. could be any of the following: (1) The
Included in these notions of fair play and nationality of a person, his domicile, his
substantial justice is the principle of residence, his place of sojourn, or his
interstate federalism embodied in the origin;(2) the seat of a legal or juridical
Constitution." Accordingly, the person, such as a corporation;(3) the
minimum contacts requirement limits a situs of a thing, that is, the place where a
state court's jurisdictional powers in thing is, or is deemed to be situated. In
order to protect the personal liberty particular, the lexsitus is decisive when
interests of nonresident parties in real rights are involved;(4) the place
obtaining a fair adjudication of their where an act has been done, the locus
claims. In addition, the minimum actus, such as the place where a contract
contacts requirement guarantees the has been made, a marriage celebrated, a
concept of state sovereignty" will signed or a tort committed. The lex
loci actus is particularly important in
11. SAUDI ARABIA AIRLINES V. COURT OF contracts and torts;(5) the place where an
APPEALS act is intended to come into effect, e.g.,
the place of performance of contractual
duties, or the place where a power of
Before a choice can be made, it is attorney is to be exercised;(6) the
necessary for us to determine under what intention of the contracting parties as to
category a certain set of facts or rules the law that should govern their
fall. This process is known as agreement, the lex loci intentionis;(7) the
characterization, or the doctrine of place where judicial or administrative
qualification. It is the process of proceedings are instituted or done. The
deciding whether or not the facts relate lexforithe law of the forumis particularly
to the kind of question specified in a important because, as we have seen
conflicts rule. The purpose of earlier, matters of procedure not going to
characterization is to enable the forum to the substance of the claim involved are
select the proper law. governed by it; and because the lexfori
Our starting point of analysis here is not applies whenever the content of the
a legal relation, but a factual situation, otherwise applicable foreign law is
event, or operative fact. An essential excluded from application in a given
element of conflict rules is the indication case for the reason that it falls under one
of a test or connecting factor or point of of the exceptions to the applications of
contact. Choice-of-law rules invariably foreign law; and (8) the flag of a ship,
consist of a factual relationship (such as which in many cases is decisive of
property right, contract claim) and a practically all legal relationships of the
connecting factor or point of contact, ship and of its master or owner as such.
such as the situs of the res, the place of It also covers contractual relationships
celebration, the place of performance, or particularly contracts of affreightment.
the place of wrongdoing. Considering that the complaint in the
Note that one or more circumstances court a quo is one involving torts, the
may be present to serve as the possible connecting factor or point of contact
test for the determination of the could be the place or places where the
applicable law. These test factors or tortious conduct or lex loci actus
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occurred. And applying the torts Basso, before his death, was residing
principle in a conflicts case, we find that here. Thus, it could be reasonably
the Philippines could be said as a situs of expected that no extraordinary measures
the tort (the place where the alleged
were needed for the parties to make
tortious conduct took place). This is
because it is in the Philippines where arrangements in advocating their
petitioner allegedly deceived private respective cases.
respondent, a Filipina residing and The choice-of-law issue in a conflict-of-
working here. According to her, she had laws case seeks to answer the following
honestly believed that petitioner would, important questions: (1) What legal
in the exercise of its rights and in the system should control a given situation
performance of its duties, act with
where some of the significant facts
justice, give her her due and observe
honesty and good faith. occurred in two or more states; and (2)
Considering that it was the petitioner to what extent should the chosen legal
who was invoking the applicability of system regulate the situation. These
the law of Saudi Arabia, thus the burden questions are entirely different from the
was on it [petitioner] to plead and to question of jurisdiction that only seeks to
establish what the law of Saudi Arabia answer whether the courts of a state
is.
where the case is initiated have
jurisdiction to enter a judgment. As such,
12. CONTINENTAK MICRONESIA, INC. VS. the power to exercise jurisdiction does
BASSO not automatically give a state
constitutional authority to apply forum
Under the doctrine of forum non law.
conveniens, a Philippine court in a The rule is that there is no judicial notice
conflict-of-laws case may assume of any foreign law. As any other fact, it
jurisdiction if it chooses to do so, must be alleged and proved. If the
provided, that the following requisites foreign law is not properly pleaded or
proved, the presumption of identity or
are met: (1) that the Philippine Court is similarity of the foreign law to our own
one to which the parties may laws, otherwise known as processual
conveniently resort to; (2) that the presumption, applies. Here, US law may
Philippine Court is in a position to make have been properly pleaded but it was
an intelligent decision as to the law and not proved in the labor tribunals.
the facts; and (3) that the Philippine
Court has or is likely to have power to 13. INDUSTRIAL PERSONNEL &
enforce its decision. All these requisites MANAGEMENT SERVICES
are present here. Basso may
conveniently resort to our labor tribunals
The general rule is that Philippine laws
as he and CMI had physical presence in apply even to overseas employment
the Philippines during the duration of the contracts. This rule is rooted in the
trial. CMI has a Philippine branch, while constitutional provision of Section 3,
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