Recognition and Enforcement of Foreign Judgment

General rule: Law of one country has no application and force in another

Exception
country. : a.) Consent
Philippine (express
laws have or implied): effect.
no extraterritorial when our laws

provide extraterritorial effect (e.g. extraterritoriality principle

of RPC)

b.) Section 48 of Rule 39 of the rules of court.

c.) Principle of Comity

Requisites of a Valid Judgment
Section 92 of the U.S. Restatement of the Law, Second, Conflict of Laws

A judgment is valid if:

(a) the state in which it is rendered has jurisdiction to act judicially in the case;
(b) a reasonable method of notification is employed and a reasonable opportunity

to be heard is afforded to persons affect;

(c) the judgment is rendered by a competent court; and
(d) there is compliance with such requirements of the state of rendition as necessary

for the valid exercise of power by the court.

Reasons for recognition of foreign judgments.
Principle of comity.

The Supreme Court held:

“a valid judgment rendered by a foreign tribunal may be recognized insofar as

the immediate parties and the underlying cause of action are concerned so long

as it is convincingly shown that there has been an opportunity for a full and fair

hearing before a court of competent jurisdiction; xxx…"

However: Comity is not a matter of absolute right
It does not impose upon our country the obligation to recognize and

enforce a judgment rendered by the court of another country.

When comity conflicts with, or is contrary to, the public policy,

morals, or mandatory laws.

 Theories on recognition of foreign judgment.
Two (2) theories:

1. Cause of action and the judgment are merged.

-He may sue for its enforcement without re-litigating the case in the domestic court of the

country where he seeks enforcement of the judgment.

2. Cause of action and the judgment are NOT merged.

- he has to re-litigate the whole case all over again in the domestic court.

Aluminum Wheels, Inc. v. GASGI terprises, Inc.,

-plaintiff's cause of action does not merge with the judgment

-he has to re-litigate the whole case in the place where he seeks

enforcement of the foreign judgment.

Recognition and enforcement of foreign judgement distinguished.

Recognition is a passive effect of foreign judgment

-merely adjudicate the respective rights and obligations of the parties without giving

any of them affirmative reliefs

Enforcement is active remedy

-refers to enforcement of foreign judgment and grant affirmative

reliefs.
ex. requiring to pay a some of money, perform certain acts
Enforcement includes recognition, while recognition does not

necessarily include enforcement.

Hang Lung Bank v. Saulog

Court stated:

”In its pleadings before the court, petitioner appears to be in quandary as to whether the

suit below is one for enforcement or recognition of the Hongkong judgment,

The complaint therefore appears to be one of the enforcement of the Hongkong

judgment because it prays for the grant of the affirmative relief given by said foreign

However,
judgment.a foreign judgment may not be enforced if it is not recognised in the

jurisdiction where affirmative relief is being sought. under Rule 39 of the Rules of

Court in order that the defendant, private respondent herein, may present evidence of

lack of jurisdiction, notice, collusion, fraud or clear mistake of law or fact.”