Conflicts Finals Reviewer 2009-10A

Antonio Arcilla | Rachelle Mayu a | Chari!!e Men"o#a $a%lyn Pine"a | &ahlia Sala'at | Ai"a Villanue(a (Second Semester, A.Y.
2009-2010)
Examples of Conflict of Law Rules in the Philippines 1. Art. 15 CC 2. Art. 1251 (par. 3) CC 3. Art. 1! CC $. Art. 1% (par. 1) CC 5. Art. %1 CC !. Art. 2! (par. 1) 'C %. Art. 13(! CC Lex Patriae Lex omicili Lex "itus # Lex Rei "itae Lex Loci Contractus Lex Loci Cele&rationis Lex Loci Cele&rationis Lex Loci )ntentionis
CONFLICT OF LAWS PRIL FINALS REVIEWER!
Art. 015 ,#en a 'ilipino is in a forei.n countr- , #e is aut#ori!ed to -a.e a will in an' o" t#e "or-s establis#ed b' t#e law o" t#e ountr' in w#i # #e -a' be. /u # will -a' be probated in t#e $#ilippines. Art. 01! *#e will o" an alien who is a&roa+ produ es e""e t in t#e $#ilippines i" -ade wit# t#e "or-alities pres ribed b' t#e law o" t#e pla e in w#i # #e resides, or a ording to t#e "or-alities obser%ed in #is ountr', or in on"or-it' wit# t#ose w#i # t#is 0ode pres ribes. Art. 01% A will ma+e in the Philippines &- a citi1en or su&2ect of another countr-, w#i # is e+e uted in a ordan e wit# t#e law o" t#e ountr' o" w#i # #e is a iti!en or sub(e t, and w#i # -ig#t be pro%ed and allowed b' t#e law o" #is own ountr', s#all #a%e t#e sa-e e""e t as i" e+e uted a ording to t#e laws o" t#e $#ilippines. Art. 010 !wo or more persons cannot ma,e a will "ointly, or in the same instrument, either for their reciprocal benefit or for the benefit of a third person. Art. 013 ,ills, pro#ibited b' t#e pre eding arti le, e+e uted b' 1ilipinos in a "oreign ountr' s#all not be %alid in t#e $#ilippines, e%en t#oug# aut#ori!ed b' t#e laws o" t#e ountr' w#ere t#e' -a' #a%e been e+e uted. Art. 1251 Payment shall be made in the place designated in the obligation. *#ere being no e+press stipulation and i" t#e underta.ing is to deli%er a deter-inate t#ing, t#e pa'-ent s#all be -ade wherever the thing might be at the moment the obligation was constituted. 2n an' ot#er ase, t#e pla e o" pa'-ent s#all be t#e do-i ile o" t#e debtor. 2" t#e debtor #anges #is do-i ile in bad "ait# or a"ter #e #as in urred in dela', t#e additional e+penses s#all be borne b' #i-. *#ese pro%isions are wit#out pre(udi e to %enue under t#e &ules o" 0ourt. Art. 13(! *#e ontra ting parties -a' establis# su # stipulations/ clauses/ terms an+ con+itions as the- ma- +eem con*enient, pro%ided t#e' are not ontrar' to law, -orals, good usto-s, publi order, or publi poli '. Art. 1%53 *#e law o" t#e ountr' to w#i # t#e goods are to be transported s#all go%ern t#e lia&ilit- of the common carrier "or t#eir loss, destru tion or deterioration.
Ci*il Co+e , Arts. 15, 16, 17, 71, 75, 124, 815-817, 818-819, 1039, 1753, 1306 Art. 15 Laws relating to famil- ri.hts an+ +uties/ or to status/ con+ition an+ capacit- of persons are binding upon iti!ens o" t#e $#ilippines e%en t#oug# li%ing abroad. Art. 1! &eal propert' as well as personal propert' is sub(e t to t#e law o" t#e ountr' w#ere it is situated. )owe%er, intestate an+ testamentar- succession, bot# wit# respe t to t#e order of successions and to the amount of successional rights and to the intrinsic validity of testamentary provisions, s#all be regulated b' t#e national law o" t#e person w#ose su ession is under onsideration, whatever may be the nature of the property and regardless of the country wherein said property may be found. Art. 1% *#e forms an+ solemnities of contracts/ wills/ an+ other pu&lic instruments s#all be go%erned b' t#e laws o" t#e ountr' in w#i # t#e' are e+e uted. ,#en t#e a ts re"erred to are e+e uted be"ore t#e +iplomatic or consular officials of the Repu&lic of the Philippines in a "oreign ountr', t#e sole-nities establis#ed b' $#ilippine laws s#all be obser%ed in t#eir e+e ution. $ro#ibiti%e laws on erning persons, t#eir a ts or propert', and t#ose w#i # #a%e, "or t#eir ob(e t, publi order, publi poli ' and good usto-s s#all not be rendered ine""e ti%e b' laws or (udg-ents pro-ulgated, or b' deter-inations or on%entions agreed upon in a "oreign ountr'.
Art. 71 (Amended by Art. 26, FC) All marriages performed outside the Philippines in accordance with the laws in force in the country where they were performed, and valid there as such, shall also be valid in this country, except bigamous, polygamous, or incestuous marriages as determined by Philippine law. Art. 75 (See Art. 7 and 10, FC) Marriages between Filipino citizens abroad may be solemnized by consuls and vice-consuls of the epublic of the Philippines. !he duties of the local civil registrar and of a "udge or "ustice of the peace or mayor with regard to the celebration of marriage shall be performed by such consuls and vice-consuls. Art. 124 (See Art. 80, FC) #f the marriage is between a citizen of the Philippines and a foreigner, whether celebrated in the Philippines or abroad, the following rules shall prevail$ %&' #f the husband is a citizen of the Philippines while the wife is a foreigner, the provisions of this (ode shall govern their relations) %*' #f the husband is a foreigner and the wife is a citizen of the Philippines, the laws of the husband+s country shall be followed, without pre"udice to the provisions of this (ode with regard to immovable property.
'amil- Co+e, Arts. 10, 7.5, 26, 80, 184, 185, 187 Art. % Marriage may be so emni!ed by" 314 An' in u-bent -e-ber o" t#e (udi iar' wit#in t#e ourt5s (urisdi tion6 324 An' priest, rabbi, i-a-, or -inister o" an' #ur # or religious se t dul' aut#ori!ed b' #is #ur # or religious se t and registered wit# t#e i%il registrar general, a ting wit#in t#e li-its o" t#e written aut#orit' granted b' #is #ur # or religious se t and pro%ided t#at at least
Antonio Arcilla | Rachelle Mayu a | Chari!!e Men"o#a $a%lyn Pine"a | &ahlia Sala'at | Ai"a Villanue(a (Second Semester, A.Y. 2009-2010)
one o" t#e ontra ting parties belongs to t#e sole-ni!ing o""i er5s #ur # or religious se t6 334 An' s#ip aptain or airplane #ie" onl' in t#e ase -entioned in Arti le 316 344 An' -ilitar' o--ander o" a unit to w#i # a #aplain is assigned, in t#e absen e o" t#e latter, during a -ilitar' operation, li.ewise onl' in t#e ases -entioned in Arti le 326 (5) An- consul4.eneral/ consul or *ice4consul in the case pro*i+e+ in Article 1(. Art. 1( 7arriages between 1ilipino iti!ens abroad -a' be sole-ni!ed b' a onsul-general, onsul or %i e- onsul o" t#e &epubli o" t#e $#ilippines. *#e issuan e o" t#e -arriage li ense and t#e duties o" t#e lo al i%il registrar and o" t#e sole-ni!ing o""i er wit# regard to t#e elebration o" -arriage s#all be per"or-ed b' said onsular o""i ial. Art. 2! All marria.es solemni1e+ outsi+e the Philippines, in a ordan e wit# t#e laws in "or e in t#e ountr' w#ere t#e' were sole-ni!ed, and %alid t#ere as su #, s#all also be %alid in t#is ountr', e+ ept t#ose pro#ibited under Arti les 35 314, 344, 354 and 364, 36, 37 and 38. ,#ere a marria.e &etween a 'ilipino citi1en an+ a forei.ner is %alidl' elebrated and a di%or e is t#erea"ter %alidl' obtained abroad b' t#e alien spouse apa itating #i- or #er to re-arr', t#e 1ilipino spouse s#all #a%e apa it' to re-arr' under $#ilippine law.
Art. #5 !he following marriages shall be $oid %rom t&e beginning$ %&' !hose contracted by any party below eighteen years of age even with the consent of parents or guardians) %*' !hose solemnized by any person not legally authorized to perform marriages unless such marriages were contracted with either or both parties believing in good faith that the solemnizing officer had the legal authority to do so) %-' !hose solemnized without license, except those covered the preceding (hapter) %.' !hose bigamous or polygamous marriages not failing under Article .&) %/' !hose contracted through mista,e of one contracting party as to the identity of the other) and %0' !hose subse1uent marriages that are void under Article /-. Art. #6 A marriage contracted by any party who, at the time of the celebration, was psychologically incapacitated to comply with the essential marital obligations of marriage, shall li,ewise be void even if such incapacity becomes manifest only after its solemnization. Art. #7 Marriages between the following are in'est(o(s and $oid %rom t&e beginning, whether relationship between the parties be legitimate or illegitimate$ %&' 2etween ascendants and descendants of any degree) and %*' 2etween brothers and sisters, whether of the full or half blood. %3&a' Art. #8 !he following marriages shall be $oid %rom t&e beginning %or reasons o% )(b i' )o i'y$ %&' 2etween collateral blood relatives whether legitimate or illegitimate, up to the fourth civil degree) %*' 2etween step-parents and step-children) %-' 2etween parents-in-law and children-in-law) %.' 2etween the adopting parent and the adopted child)
%/' 2etween the surviving spouse of the adopting parent and the adopted child) %0' 2etween the surviving spouse of the adopted child and the adopter) %4' 2etween an adopted child and a legitimate child of the adopter) %3' 2etween adopted children of the same adopter) and %5' 2etween parties where one, with the intention to marry the other, ,illed that other person+s spouse, or his or her own spouse. %3*'
Art. 0( 2n t#e absen e o" a ontrar' stipulation in a -arriage settle-ent, t#e propert' relations o" t#e spouses s#all be go%erned b' $#ilippine laws, regardless of the place of the celebration of the marriage and their residence. *#is rule s#all not appl'8 314 ,#ere bot# spouses are aliens6 324 ,it# respe t to t#e e+trinsi %alidit' o" ontra ts a""e ting propert- not situate+ in the Philippines and e+e uted in t#e ountr' w#ere t#e propert' is lo ated6 and 334 ,it# respe t to t#e e+trinsi %alidit' o" ontra ts entered into in t#e $#ilippines but a""e ting propert' situated in a "oreign ountr' w#ose laws re9uire di""erent "or-alities "or its e+trinsi %alidit'. Art. 10$ *#e "ollowing persons ma- not a+opt8 314 *#e guardian wit# respe t to t#e ward prior to t#e appro%al o" t#e "inal a ounts rendered upon t#e ter-ination o" t#eir guardians#ip relation6 324 An' person w#o #as been on%i ted o" a ri-e in%ol%ing -oral turpitude6 334 An alien, except$ 3a4 A "or-er 1ilipino iti!en w#o see.s to adopt a relati%e b' onsanguinit'6 3b4 :ne w#o see.s to adopt t#e legiti-ate #ild o" #is or #er 1ilipino spouse6 or 3 4 :ne w#o is -arried to a 1ilipino iti!en and see.s to adopt (ointl' wit# #is or #er spouse a relati%e b' onsanguinit' o" t#e latter. Aliens not in luded in t#e "oregoing e+ eptions -a' adopt 1ilipino #ildren in a ordan e wit# t#e rules on inter- ountr' adoptions as -a' be pro%ided b' law. 328a, ;. :. 91 and $< 6034 Art. 105 6usband and wife must "ointly adopt, except in the following cases$ 314 ,#en one spouse see.s to adopt #is own illegiti-ate #ild6 or 324 ,#en one spouse see.s to adopt t#e legiti-ate #ild o" t#e ot#er. 329a, ;. :. 91 and $< 6034 Art. 10% !he following may not be adopted$ 314 A person o" legal age, unless #e or s#e is a #ild b' nature o" t#e adopter or #is or #er spouse, or, prior to t#e adoption, said person #as been onsistentl' onsidered and treated b' t#e adopter as #is or #er own #ild during -inorit'. 324 An alien wit# w#ose go%ern-ent t#e &epubli o" t#e $#ilippines #as no diplo-ati relations6 and 334 A person w#o #as alread' been adopted unless su # adoption #as been pre%iousl' re%o.ed or res inded.
PAR5 67E 8 )75R6 9C5)67 2. /0:$; :1 0:=1L20* :1 LA,/8 =A*>&;, <;12=2*2:= A=< 27$:&*A=0; A. ):ER")5; 6' LA<"/ C9"56=" A7 PRAC5)CE" -di%ision o" world into -an' independent states wit# own laws ? o urren e o" e%ents t#at ontains ele-ents signi"i ant to -ore t#an 1 legal s'ste- @ on"li t o" laws -t#ere #ad been atte-pts to #a%e a uni"or- law8 1928 /i+t# 2nternational 0on"eren e o" A-eri an /tates in )a%ana8 on $&2L Austa-ante 0ode8 uni"or- pro%isions on i%il law, o--er ial law, penal law and law on pro edure reation o" t#e 2nter-A-eri an 0oun il o" Burists b' :A/ in 1948 - but #as not a #ie%ed an't#ing on rete 1951 )ague 0on%ention on $&2L8 on "a-il' law, su ession and produ ts liabilit' 7AP notes C&8 Laws ha*e effect onl- within their territories Aasis8 every nation is sovereign and independent) another state can8t force our courts to apply their laws D8 ,#en our own law pro%ides t#at laws o" ot#er states are appli able >)L567 : ?9;65 (1035) Custa%e Cu'ot 3li9uidator "or 1ren # "ir- 0)A&L;/ 1:&*&20) E 0:.4 sued o-partners o" A.*. /*;,A&* E 0:. )enr' )ilton and ,illia- Libbe' 3residents o" =F4 in 1&;=0) 0:>&* "or a-ount due to t#e 1ren # "ir-. 1ren # ourt ruled in #is "a%or, so #e sued )ilton and Libbe' in >/ 0ir uit 0ourt "or en"or e-ent o" t#e 1ren # Budg-ent. >/ 00 #eld (udg-ent on lusi%e, entered de ree in "a%or o" Cu'ot ,G: ;DA72=2=C A=;, 7;&2*/ :1 *); 0A/;. 9:; <= court should give force and effect to the French >udgment when French courts give no force and effect to the duly rendered "udgments in <= (ourts against French citizens =: C&8 =o law #as an' e""e t, o" its own "or e, be'ond t#e li-its o" t#e so%ereignt' "ro- w#i # its aut#orit' is deri%ed. D8 *#e e+tent to w#i # t#e law o" one nation, as put in "or e wit#in its territor', whether by executive order, by legislative act, or by "udicial decree, s#all be allowed to operate wit#in t#e do-inion o" anot#er nation, <;$;=</ >$:= w#at our greatest (urists #a%e been ontent to all *); 0:72*F :1 =A*2:=/ C6=)5; -neit#er a -atter o" absolute obligation nor -ere ourtes' and good will 4REC6?7)5)67 <>)C> 67E 7A5)67 ALL6<" <)5>)7 )5" 5ERR)56R; @6' 5>E LE?)"LA5):E @EAEC95):E @6R B9 )C)AL AC5" 6' A765>ER 7A5)67/ >A:)7? 9E RE?AR C65> 56 ...)75ER7A5)67AL 95; @A7 C67:E7)E7CE A7 56 5>E R)?>5" 6' )5" 6<7 C)5)DE7" 6R 6' 65>ER PER"67" <>6 ARE 97 ER 5>E PR65EC5)67 6' )5" LA<" 7AP notes Lowers standard o" o-it'8 principle of retortion is a tas. "or t#e legislature to do, not "or t#e ourts6 t#e ourt in appl'ing o-it' was doing legislati%e a t. $lus in(usti e is t#at pri%ate indi%iduals
annot #ange laws so w#' -a.e t#e- su""er "or t#e di""eren e in laws in di""erent statesH C. E')7)5)67 ?istinguished from Public #nternational @aw and other ?isciplines $art o" -uni ipal law w#i # go%erns ases in%ol%ing a "oreign ele-ent =)76R, t#ose uni%ersal prin iples o" rig#t and (usti e w#i # go%ern t#e ourts o" one state #a%ing be"ore t#e- ases in%ol%ing ...t#e operation ...and e""e t o" laws o" another state or country C>E")RE, part o" law w#i # o-es into pla' w#en t#e issue be"ore t#e ourt A11;0*/ /:7; 1A0* :& ;I;=* :& *&A=/A0*2:= t#at is /: 0L:/;LF 0:==;0*;< ,G 1:&;2C= /F/*;7 :1 LA, as to ne essitate re ourse to t#at s'ste2n+ e+/ American Burispru+ence, part o" t#e law o" ea # state or nation w#i # deter-ines w#et#er, in dealing wG a legal situation, t#e law o" so-e ot#er state or nation will be ...re ogni!ed, ...gi%en e""e t ...or applied >)L567 *. ?9;65, law on erning t#e rig#ts o" persons wit#in t#e territor' and do-inion o" one nation, b' reason o" a ts, pri%ate or publi , done wit#in t#e do-inion o" anot#er nation $2L %s. $&2L Cate.orP9CL)C )L PR):A5E )L
Appli abilit' &elations#ips o"&elations#ip o" indi%iduals o" ratione states a-ongin t#eir pri%ate transa tions personae t#e-sel%es w#i # in%ol%e a "oreign and ratione ele-ent materiae /our es law o" A38, 20B /tatute8 ?R, "ro- internal law o" J ustoea # state, =:* "ro- an' Jtreaties international law JC$2L e+traneous to -uni ipal law J(uridi al de isions Jtea #ings o" -ost7A5)67AL C67'L)C5 #ig#l' 9uali"iedR9LE"8 2nternal law o" publi ists ea # ountr' A, i" on"li t go%erned b' treat' e.g. )ague 0on%ention on t#e 0on"li t o" Laws relating to t#e "oro" testa-entar' dispositions )75ER7A5)67AL C67'L)C5 R9LE"8 Jinternational on%entions J"oreign ase law J o--entaries interpreting t#ese on%entions $ersons in%ol%ed J/tates J2nternationall' &e ogni!ed organi!ations J2ndi%iduals J0orporations
*ransa tions /tate to state
$ri%ate transa tions
go%erned &e-edies
Co%ern-ent go%ern-ent
to
J<iplo-ati protest J ourts Jpea e"ul -eans o"Jad-in tribunals settle-ent o" international disputes8 Kdiplo-ati negotiations Karbitration K on iliation Jad(udi ation b' "iling ase be"ore int5l tribunals Jwar
"5A595E" classification 1. REAL "5A595E" (S-A-.-A *+A/,A)" applied to immovable property wAn the state 2. PER"67AL "5A595E" (S-A-.-A 0+*S12A/,A)" "ollowed persons e%en outside #is do-i ile, go%erned all 9uestions on erning Lpersonal status L apa it' L-o%ables 3. =)AE "5A595E" (S-A-.-A M,3-A), on ontra ts - depend on w#ere entered 16t& 'ent(ry Fran'e C>ARLE" 9=69L)7, -et#od to deter-ine w#at law would go%ern 0:=*&A0*/ A;*,;;= <211;&;=* =A*2:=AL/ CER5RA7 EAR?E75E, $&2=02$L; :1 >=2I;&/AL />00;//2:= 7etherlan+s C9R?9 769/ R6 E7CER?/ 9LR)C> >9CER (first use+ C67'L)C5 6' LA<"), /tate was under no obligation to appl' "oreign law >=L;// i-posed b' Ltreat' L0:72*A/ C;=*2>7 30o-it' o" =ationsH4 Lon onsideration o" ourtes' and e+pedien ' B6>7 :6E5, no statue, real, personal or -i+ed, an a t b' itsel" be'ond t#e territor' o" t#e legislator nor an it #a%e an' e""e t elsew#ere against t#e will o" t#e legislator o" anot#er state 4-erritoria 0rin'i) e8 C&8 laws o" e%er' state -a' operate :=LF ,2*)2= *); *;&&2*:&2AL L272* :1 />0) /*A*; D8 -a' re ogni!e laws o" anot#er ountr' $&:I2<;< t#at it will not pre2u+ice t#e sub(e ts o" t#e so%ereign w#ose re ognition is soug#t J(omitas Bentium 30o-it' o" =ations4 approa # readil' a epted --ost trans-(urisdi tional disputes to be resol%ed b' t#e appli ation o" 2>/ C;=*2>7 or 2>/ 0:77>=; #us (ommne$ supranational law based on &o-an Law, be a-e ontinental ;uropean 0o--on Law -nations began odi"'ing t#eir national laws to in lude on"li t o" laws pro%isions8 JAa%arian 0ode8 t#eor' o" statutes J$russian 0ode8 t#eor' o" e""i a ' o" ontra ts J1ren # 0i%il 0ode8 pattern "or 0i%il 0odes o" /pain, Aelgiu-, and &o-ania8 nationalit' prin iple -adopted b' &$8 A&*15, =00 B. B6"EP5> "56R;, Commentaries on t&e Con% i't o% /a5s territorial theoryAcomitas gentium approach -territorial so%ereignt', "ounded on"li t o" laws on t#e prin iple o" o-it' o" nations -adopted b' B:/;$) A;AL;, American estatement of (onflict of @aws, de%eloped territoria 67+S-+8 *,9:-S6 s'&oo o% t&o(g&t 'RE ER)C> CARL :67 "A:)?7;, System o% Modern /a5 4 Sit(s t&eory -ad%o ated #istori al s #ool o" (urispruden e -appli ationo" "oreign law was not +ue to o-it' A>* t#e resultant bene"its "or e%er'one on erned -"ounder o" 7:<;&= $&2L 4theor- of situs#seat of le.al relationship, e%er' ele-ent o" a transa tion be go%erned b' t#e law o" t#e pla e wit# w#i # said ele-ent #as t#e -ost substanti%e onne tion PA"C9ALE =A7)C)7), 2ationa ity as t&e ;asis o% /a5 o% 2ations4 nationa ity t&eory(sorto% Mi<ed stat(te)
7uni ipal law %s. 0on"li t o" Law rules in 7uni ipal law 7uni ipal law =o "oreign ele-ent present 0on"li t o" Law in 7L 2n%ol%es "oreign ele-ent
C.6CBEC5/ '97C5)67 A7 "C6PE :b"ect and Function -pro%ide rational and %alid rules or guidelines in de iding ases w#ere issue in%ol%ed relates to -ore t#an one (urisdi tion -prote tion o" rational e+pe tations -stabilit' and uni"or-it' o" solutions =cope -al-ost all sub(e ts 1. Burisdi tion o" ourts 2. ;%iden e o" proo" o" "oreign law 3. $ersonal law o" indi%iduals and (uridi al entities 4. =aturali!ation law 5. Laws on do-i ile and residen e 6. 1a-il' relations 7. 0ontra ts 8. *orts 9. 0ri-es 10. 0orpo law 11. $ropert' law 12. 2nternational air transport 3,arsaw on%ention4
22. )2/*:&F A=< <;I;L:$7;=* :1 0:=1L20* :1 LA,/ A.R6=A7 LA< 6R)?)7 *oman +m)ire ,(s genti(m" -law o" nations in $2L -go%erns relations o" /tates -bod' o" rules de%eloped b' t#e $&A;*:& $;&;C&2=>/ to resol%e disputes between 1oreigners 1oreigners and &o-an 0iti!ens ,(s Ci$i e" applied onl' to &o-an 0iti!ens ,ta y -2tal' was di%ided into -an' it'-states, ea # #a%e own law - so t#e' #a%e on"li ts o" law proble-s CAR56L9" (father of conflict of laws)8 "or-ulated t#e *);:&F :1 /*A*>*;/ -t#e t#eor' o" statutes was used b' t#e 2talian it'-states to resol%e on"li t o" law issues
-nationalit- theor- on /tatus 0apa it' $ri%ate interests o" t#e indi%idual -=;, *);:&F :1 $&2L C.=6 ER7 E:EL6P=E75" F7eostatutists, w#en two or -ore independent laws are appli able to a on"li t o" laws proble-, t#e method so devised determines what law shall prevail F)nternationalists8 t#ere s#ould be a single body of rules t#at an sol%e proble-s in%ol%ing "oreign ele-ent F5erritorialists, law o" t#e /tate applied to persons and t#ings wit#in t#e /tate, no foreign law should be applied -bran #8 onl' rig#ts %ested or a 9uired under a "oreign law are re ogni!ed but not t#e "oreign law itsel" J2n+ Restatement, ,illia- &eese8 t#e law to be applied in a on"li t o" laws ase is t#e law o" t#e -ost signi"i ant relations#ip FCA:ER"/ C9RR)E A7 E>RE7D<E)?, poli '- entered approa #es (onflicts of @aws in the Philippines -onl' w#en &$ be a-e so%ereign state 2n =008 Arti le 158 nationalit' prin iple Art. 15. Laws relating to J"a-il' rig#ts and duties, Jor to t#e status, J ondition and Jlegal apa it' o" persons are binding upon iti!ens o" t#e $#ilippines, e%en t#oug# li%ing abroad. 39a4 Arti le 163148 le+ situs rule Art. 16. &eal propert' as well as personal propert' is sub(e t to t#e law o" t#e ountr' w#ere it is stipulated. Arti le 163248 uni%ersal su ession )owe%er, intestate and testa-entar' su essions, bot# wit# respe t to t#e order o" su ession and to t#e a-ount o" su essional rig#ts and to t#e intrinsi %alidit' o" testa-entar' pro%isions, s#all be regulated b' t#e national law o" t#e person w#ose su ession is under onsideration, w#ate%er -a' be t#e nature o" t#e propert' and regardless o" t#e ountr' w#erein said propert' -a' be "ound. Arti le 173148 le+ lo i ontra tus Art. 17. *#e "or-s and sole-nities o" ontra ts, wills, and ot#er publi instru-ents s#all be go%erned b' t#e laws o" t#e ountr' in w#i # t#e' are e+e uted.
2. Ceneral Aan.ing A t 3. A t 2nstituting 1oreign 0urren ' /'ste- in t#e $#ilippines 4. $#ilippine 1oreign Law Cuarantee 0orporation 5. A t &egulating &etail Ausiness 6. Anti-<u--' Law 7. =ationali!ation o" t#e &i e and 0orn 2ndustr' 8. 2nsuran e 0ode 9. $rote tion o" 2ntelle tual $ropert' 10. $atent Law 11. *rades-ar. Law 12. 0:C/A 13. /al%age Law 14. $ubli /er%i e A t 15. 0i%il Aeronauti s A t 16. $#ilippine :%erseas /#ipping A t 17. 2n%est-ent 2n enti%es A t 18. ;+port 2n enti%es A t 19. &A 7722 liberali!ing entr' o" "oreign ban.s in t#e $#ilippines C.5REA5)E" A7 )75ER7A5)67AL C67:E75)67" 1. 0on%ention on 2nternational 0i%il A%iation 2. 0on%ention "or t#e >ni"i ation o" 0ertain &ules relating to international 0arriage b' Air - ,arsaw 0on%ention 3. 0on%ention on :""enses 0o--itted on Aoard Air ra"t 4. 0on%ention "or /uppression o" >nlaw"ul A ts against t#e /a"et' o" 0i%il A%iation 5. >= 0:C/A 6. 0on%ention on t#e 0onsent to 7arriage, 7ini-u- Age "or 7arriage and &egistration o" 7arriages 7. 0on%ention on *ra""i o" $erson 8. 0on%ention on t#e ;li-ination o" All 1or-s o" <is ri-ination Against ,o-en 30;<A,4 9. 0on%ention on $oliti al &ig#ts o" ,o-en 10. 2nternational 0on%ention "or t#e /uppression o" t#e *ra""i in ,o-en and 0#ildren 11. 0on%ention "or t#e /uppression o" t#e *ra""i in $ersons and o" t#e ;+ploitation o" t#e $rostitution o" :t#ers 12. 0on%ention ;stablis#ing t#e ,orld 2ntelle tual $ropert' :rgani!ation 13. Aerne 0on%entions "or t#e $rote tion o" Literar' and Artisti ,or.s 14. 0on%ention "or t#e $rote tion o" 2ndustrial $ropert' 15. $aris 0on%ention "or t#e $rote tion o" 2ndustrial $ropert' 16. )ague 0on%entions on $&2L8 Lpersonal status Lpatri-onial "a-il' status Lpatri-onial status su # as agen ' and trusts 17. 0on%ention on &e ognition o" 1oreign Budg-ent on 0i%il and 0o--er ial -atters 18. 0on%ention in &espe t o" 2nter 0ountr' Adoption C.5REA5)"E" /C6==E75AR)E" A7 "59 )E" 6' LEAR7E "6C)E5)E" European >lri # )uber, ?e (onflicto @egum ?iversarum in ?iversia #mpecis 7areas 3di ba 7anresaH4, (omentarios al (odigo (ivil 7spanol 1M %on /a%ign', =ystem des 2eutigen omishcen ights, englis# translation b' Cut#rie Andrei ,eiss, !raite !heori1ue et Prati1ue de ?roit #nternational Prive American an+ En.lish B) Aeale, (onflict of @aws <1 0a%ers, !he (hoice of @aw Process ;. 0#eat#a-, (ases and Materials on (onflict of @aws A. 0urrie, =elected 7ssays on the (onflict of @aws A. ;#ren!weig, A !reatise on the (onflict of @aws )1 Coodri #, (onflict of @aws AM Mu#n, (ommentarieson P #@
222. /:>&0;/ :1 0:=1L20* :1 LA,/ A.C6 E" A7 "5A595E" 7ote, ma8am "ust glossed over this. -0on"li t o" Laws "ro- 0ontinental ;urope - odi"ied - so 0i%il 0odes are pri-ar' sour es o" 0on"li t o" Laws rules -prin iple o" ius gentiu-8 odi"ied in &o-an 0odes #n P /panis# 0i%il 0ode o" 18888 en"or ed in &$ <e 7, 1889 until August 30, 1950 -0on"li t o" laws pro%isions adopted b' &$ =00 0ode o" 0o--er e o" /pain8 "oreign transa tions pro%isions also en"or ed in <e 1, 1888 =ew8 1987 0onsti8 =ationalit', 0o-it' =pecial =tatutes 1. 0orporation 0ode
A Cussbau-, Principles of P #@ ; &abel, !he (onflict of @aws B /tor', (ommentaries on the (onflict of @aws 1 ,#arton, !reatiese on the (onflict of @aws C0 0#esire, Private #nternational @aw &) Cra%eson, (onflict of laws American )nstitute &estate-ent o" t#e 0on"li ts o" Laws /e ond &estate-ent .B9 )C)AL EC)")67" 9ra$eson" t#is bran # o" law is -ore t#an al-ost an' ot#er PAR5 5<6 8 B9R)" )C5)67 A7 2I. B>&2/<20*2:= Bu+icial Buris+iction, power or aut#orit' o" a ourt to ...tr' a ase Lrender (udg-ent Land e+e ute it in a ordan e wit# law Le.islati*e 2uris+iction8 abilit' o" t#e state to Lpro-ulgate laws Len"or e t#e:n all persons and propert' wit#in its territor' A. CA")" 6' EAERC)"E 6' B9 )C)AL B9R)" )C5)67 &. >urisdiction :ver the Person ?eneralla. Ioluntar' appearan e b. /ub-ission to aut#orit' :I;& *); $;&/:= :1 *); $LA2=*211 -w#en plainti"" in%o.es t#e aid o" t#e ourt b' "illing a suit :I;& *); $;&/:= :1 *); <;1;=<A=* 1. Enters appearance C&8 appearan e o" de"endant or law'er - gi%es onsent "or t#e "oru-5s e+er ise o" (urisdi tion o%er #iD8 /pe ial appearan e "or t#e purpose o" protesting t#e (urisdi tion o" t#e ourt 2. )f non4resi+ent who is initiall- the plaintiff, if counterclaim file+ a.ainst him/ he is alrea+- +eeme+ to &e un+er the courtEs exercise of 2uris+iction 3. "er*e+ with the le.al process within the state, "ER:)CE 6' "9==67" (R9LE 1$/ R6C) "ection !, PER"67AL "ER:)CE -#anding #i- a op' -tendering #i- a op' i" #e re"uses "ection %, "u&stitute+ "er*ice -"or (usti"iable auses, de"endant annot be ser%ed wGn reasonable ti-e personall' a. &esiden e8 wit# so-e person o" />2*AAL; AC; and <2/0&;*2:= *);= &;/2<2=C *);&;2= b. :1120;G &;C>LA& $LA0; :1 A>/2=;//8 o-petent person in #arge t#ereo" "ection 12, "er*ice upon 'orei.n Pri*ate Buri+ical Entit('PBE) <e"endant8 "oreign $ri%ate Buridi al ;ntit' -transa ted business in &$ )ow /er%i e -ade8 o-pletel' (udge--ade
a. on *+S,8+2- A9+2- designated in a ordan e wit# law "or t#at purpose b. i% 21 A9+2-" i. on go%ern-ent o""i ial designated b' law to t#at e""e t 2i. :n an' o" its o""i ers or agents wit#in t#e $#ilippines "ection 15. Extraterritorial "er*ice <e"endant8 a. <oes not reside ? not "ound in &$ b. A tion a""e ts t#e personal status o" plainti"" . &elates to, or t#e sub(e t o" w#i # is, propert' wit#in t#e $#ilippines in w#i # t#e de"endant #as or lai-s a lien or interest, a tual or ontingent d. :r in w#i # t#e relie" de-anded onsists, w#oll' or in part, in e+ luding t#e de"endant "ro- an' interest t#erein e. :r t#e propert' o" t#e de"endant #as been atta #ed wit#in t#e $#ilippines 6ow served$ -wit# lea%e o" ourt a. $ersonal ser%i e b. A' publi ation in a newspaper o" general ir ulation in su # pla es and "or su # ti-e as t#e ourt -a' order ? op' o" su--ons and order sent t#ru registered -ail to last .nown address . 2n an' ot#er -anner t#e ourt -a' dee- su""i ient <)LL)A7 ?E=PERLE : >ELE7 "C>E7GER (13!%) 2n t#e "irst ase, t#e wi"e )elen / #en.er, sued Ce-perle in be#al" o" #er #usband $aul. Ce-perle now sues $aul "or -ali ious publi ation o" allegations and su--ons was ser%ed on )elen. 0ourt ruled in "a%or o" Ce-perle so $aul ontests t#e (urisdi tion o" t#e ourt, wit# t#e de"ense t#at no (urisdi tion was a 9uired o%er #i- as t#e de"endant. 9:; "urisdiction may be ac1uired by service of summons to the wife of the defendantC F;/, under e+ eptional ir u-stan es. C&8 ser%i e o" su--ons on wi"e is not ser%i e o" su--ons on t#e de"endant #usband D8 in t#is ase, t#e wi"e is t#e attorne' in "a t o" #er #usband, w#o #ad aut#orit' to sue and be sued *. >urisdiction over the Property a. /ei!ure o" propert' under a legal pro ess b. 2nstitution o" legal pro eedings w#erein t#e ourt5s power o%er t#e propert' is re ogni!ed and -ade e""e ti%e -situs ould bind t#e world, not (ust t#e interest o" spe i"i persons -&asis of exercise of 2uris+iction8 presen e o" t#e propert' wit#in t#e territorial (urisdi tion o" t#e "orue.g. "or"eiture o" tangible propert', registration o" land title =(asi ,n rem" -based on state5s p#'si al power o%er t#e propert' "ound wit#in its territor' A>* a""e ts onl' interests o" parti ular persons in t#at t#ing e.g. a tion to 9uiet title to propert'8 t#e lai-ant5s title to t#e propert' in 9uestion is superior to ot#ers )n Procee+in.s )7 RE= an+ H9A") )7 RE= 8 as long as t#ere is ade9uate noti e ? opportunit' to be #eard, o.a' naN t#is an be done t#roug# publi ation PE776;ER : 7E'' (10%0)
C>6)CE 6' LA<
$enno'er obtained a (udg-ent in :regon against =e"" 3a 0ali"ornian resident4, wit# su--ons ser%ed b' publi ation in an :regon newspaper. 0ourt ruled in "a%or o" $enno'er, ordered e+e ution o" (udg-ent o%er =e""5s land in :regon. =e"" ontests (urisdi tion o" t#e ourt o%er #is propert' 3"or t#e e+e ution o" (udg-ent4, arguing t#at no (urisdi tion was obtained o%er #i- as t#e de"endant. 9:; court could execute "udgment over ;eff+s property in :regonC =o. *#e (udg-ent "ro- w#i # t#e order "or e+e ution was deri%ed is %oid, as t#e ourt did not a 9uire (urisdi tion o%er t#e person o" t#e de"endant. -2" t#e (udg-ent is pre%iousl' %oid 3no (urisdi tion o%er t#e person o" t#e non-resident de"endant4, it will not be o-e %alid b' t#e subse9uent dis o%er' o" t#e propert' o" t#e nonresident de"endant or b' #is subse9uent a 9uisition o" it - or else, (udg-ent would o up' a doubt"ul position o" being %oid or %alid depending on t#e presen e o" propert' o" t#e nonresident de"endant in t#e "oru-5s territor' Jpresen e wit#in territorial (urisdi tion o" a ourt was prere9uisite to its rendition o" a (udg-ent personall' binding #i)75ER7A5)67AL ">6E C6. : <A">)7?567 2nt5l /#oe is a 0o-pan' w#ose prin ipal pla e o" business is 7issouri but does business in ,as#ington 3alt#oug# -aintains no o""i e in ,as#ington, #ired 11-13 sales-an under dire t super%ision and ontrol o" sales -anagers based in 7issouri. *#ese sales-en are onl' allowed to soli it sales, t#en would "orward t#e orders "or appro%al to 7issouri4. ,as#ington wants to ta+ its business a ti%ities in t#e state, ser%ed su--ons to its ,as#ington sales-en and -ailed t#roug# registered -ail to t#e 7issouri o""i e. 9:; 9ashington can impose taxes on the activities of the company in the stateC F;/. *#e ontinuous and s'ste-ati operations o" t#e orporation in ,as#ington t#roug# its agents were onsidered to %est t#e state wit# (urisdi tion o%er it ? traditional notions o" "air pla' and substantial (usti e. -presence symbolize those activities of the corporation+s agents within the state which courts will deem to be sufficient to satisfy the demands of due process -ser%i e o" pro ess ser%i e to an agent %ests t#e ourts (urisdi tion i" t#e a ti%ities are ontinuous, s'ste-ati , also gi%es rise to t#e liabilities sued, e%en i" no onsent to be sued or no aut#ori!ation to an agent to a ept. 7AP notes Jt#is approa # o" -ini-u- onta ts and "unda-ental "airness de-ands t#at t#ere be "oru--transa tion onta ts t#at will -a.e it "unda-entall' "air to re9uire t#e de"endant to de"end a suit in t#e "oru- regardless o" #is nonresident status e.g. i" a person sells onl' 2 pairs o" s#oes in a state, would #e be su""i ientl' appraised o" an' suit against #i- in t#at stateH =o. so no e+pe tation t#at #e be #ailed in ourt ? i" -e(o -ara-i ang .ita, -a' e+pe tation dapat na 'ou -a' be sued in t#at state Jdid not loo. into w#at .ind o" suit was "iled8 e%en i" in personam or in rem or even 1uasi in rem, not stri t w#at .ind o" ser%i e was used as long as notions o" "air pla' was obser%ed =9LLA7E :. CE75RAL >A76:ER CA7G A7 5R9"5 C6./ 5R9"5EE/ E5.AL (1>50) *#e 0entral )ano%er Aan., a trust o-pan' in =F, wanted to #a%e a (udi ial settle-ent o" its assets w#i # is binding on all t#e bene"i iaries in its boo.s. )owe%er, publi ation was onl' -ade in
=F, pursuant to =F law, w#en so-e o" its bene"i iaries does not li%e in =F. 9:; the "udgment of the ;D (ourt binds non-resident beneficiaries of the common fund maintained by (entral 6anover 2an, =:. *#e =F ban.ing law %iolaes <ue pro ess so its %oid, t#us, ser%i e in a ordan e wit# it is also %oid and non-binding. *#e ban. #ad t#e na-es and addresses o" its bene"i iaries so t#e' s#ould #a%e ser%ed su--ons to t#ose a""e ted b' it t#roug# a -ore ade9uate -eans t#an t#at pro%ided b' t#e law -/*A=<A&< 1:& A<;O>A*; =:*20;8 t#e -eans e-plo'ed -ust be su # as one desirous o" a tuall' in"or-ing t#e absentee -ig#t reasonabl' adopt to a o-plis# it. *#e reasonableness and onstitutional %alidit' o" an' #osen -et#od -a' be de"ended on t#e ground t#at it is in itsel" reasonabl' ertain to in"or- t#ose a""e ted ">A''ER : >E)57ER (13%%) )eitner sued t#e o""i ers o" Cre'#ound, a orporation in orporated in <elaware but w#ose o""i ers 3and t#eir orresponding sto . erti"i ates elsew#ere4 "or antiturst liabilities. 0ourt ser%ed su--ons t#roug# publi ation and t#roug# erti"ied -ail to t#e o""i ers5 last .nown addresses. 0ourt ruled in "a%or o" )eitner, ordered t#at t#e erti"i ate o" sto .s o" t#e o""i ers be se9uestered. 9:; there are sufficient contacts for the ?elaware court to exercise "urisdiction over the officers of Breyhound and their certificate of stoc,s =: Aeing -ere o""i ers is not su""i ient -ini-u- onta t -:""i er5s #oldings in Cre'#ound do not pro%ide onta ts wit# <elaware su""i ient to support t#e (urisdi tion o" <elaware 0ourts be ause propert- is 765 5>E "9CBEC5 =A55ER 6' L)5)?A5)67 (not action in rem) -t#e :""i ers-appellants, w#o are not re9uired to a 9uire interest in Cre'#ound in order to #old t#eir positions, did not b' a 9uiring t#ose interests, surrender t#eir rig#ts to be broug#t to (udg-ent onl' in states wit# w#i # t#e' #ad P7ini-u- 0onta ts 7AP notes >/ /0 de"ined t#e outer rea #es o" per-issible e+er ise o" (udi ial (urisdi tion w#en it #eld t#at 72=27>7 0:=*A0*/ A=< 1>=<A7;=*AL 1A2&=;// *;/* /):L< A; /A*2/12;< &;CA&<L;// :1 ,);*);& *); $&:0;;<2=C/ A&; 2= &;7, O>A/2 2= &;7 :& 2= $;&/:=A7. =ote t#at /#a""er de-ands t#at -ini-u- onta ts e+ist a-ong t#e "oru-, de"endant A=< *); 0:A. 2n 2=*;&=A*2:=AL /):;, all t#at was re9uired was -ini-u- onta t between de"endant and "oru-. /ong arm Stat(tes -spe i"' t#e .ind o" onta ts upon w#i # (urisdi tion will be asserted b' a state e.g. 0o--ission o" tortuous a ts wGn t#e state 0elebration o" a ontra t t#ere $resen e o" propert' owned b' de"endant -i" t#ese or ot#er -ini-u- onta ts e+ist, t#e ourt an e+er ise (urisdi tion be ause it #as a (usti"ied interest in pro%iding t#e plainti"" wit# a "oru-, no "unda-ental un"airness results -i" long-ar- statute broad, as long as it doesn5t on"li t wit# 0onsti, ourts now #a%e dis retion to de"ine on a ase-to- ase basis 3. Burisdi tion :%er t#e /ub(e t 7atter 3 o-peten e4 - on"erred b' law or onsti -based on t#e nature o" t#e ontro%ers'
-it is ne essar' t#at said power to tr' be properl' in%o.edLb' "iling a petition - annot be on"erred b' onsent o" parties8 de ision is %oid i" ourt e+ eeds its (urisdi tion and power in rendering it ) 67A> PERG)7" : R6AA" (13$1) ;ugene $er.ins wanted t#e ourt to de lare t#at t#e s#ares in A070 was #is, t#us t#e di%idends belong to #i-, and not to #is wi"e 2dona#. )e i-pleaded 2dona# and ;ngel#ard, bot# nonresidents o" t#e $#ilippines, and 2dona# alleged in #er answer t#at t#ere was alread' a =F (udg-ent de laring #er to be t#e sole owner o" t#e s#ares lai-ed b' ;ugene, t#us, t#is (udg-ent s#ould be res (udi ata. 9:; (ourt had "urisdiction over the sub"ect matter of the case %with #donah arguing that this is barred by es >udicata' F;/, t#e ourt #as (urisdi tion o%er t#e sub(e t -atter to deter-ine i" t#e =F Budg-ent is &es Budi ata -B>&2/<20*2:= :I;& />AB;0* 7A**;&8 t#e nature o" t#e ause o" a tion and o" t#e relie" soug#t, on"erred b' t#e so%ereign aut#orit' w#i # organi!es t#e ourt, and is to be soug#t "or in general nature o" its powers, or in aut#orit' spe iall' on"erred J*;/* :1 B>&2/<20*2:=8 ,:= t#e tribunal #as t#e power to enter upon t#e in9uir', =:* ,#et#er its on lusion in t#e ourse o" it is rig#t or wrong C. <A;" 6' 1. EAL)7? <)5> A C67'L)C5" PR6CLE=
967; (A;+! 7F<=7 !: 7F7 (#=7 >< #=?#(!#:;$ Jw#en t#e "oruis t#e onl' state w#ere (urisdi tion o%er de"endant an be obtained Jw#en t#e "oru- pro%ides pro edural re-edies not a%ailable in anot#er state 7AP notes$9hen Forum non (onveniens Jwould ause in(usti e to t#e parties Ji" t#e suit was boug#t in a parti ular ase onl' be ause it gi%es a larger %erdi t - but so w#atH e.g. t#ere5s a stud' t#at i" t#e state is -ostl' o-posed o" Asians, t#e (ur' would gi%e lower a-ount o" da-ages. ,#'H -<isparit' in t#e C<$ and standard o" li%ing o" Asians and ,esterners. Asians t#in. its alread' a big a-ount o" %alue but ,esterners don5t t#in. so. Asians are #appier, and an li%e wit#, less t#ings. Lso t#is ground, on its own, is not a ground. Aut i" t#ere are ot#er "a tors w#i # would -a.e it in on%enient "or t#e "oru- to e+er ise (urisdi tion, t#en dis-iss ase J#arass t#e ot#er part'8 #oose "oru- -ost in on%enient to t#e ot#er part' Jglobal "oru- s#opping8 "iles nu-erous ases be"ore se%eral "oru-s - di""erent 3and -a'be on"li ting4 de isions Lt#at5s w#' we #a%e 0=1/ J"oru- s#opping %s. "orunon on%eniens8 "oru- s#opping onl' one o" t#e reasons w#' dis-issL >E)7E : 7E< ;6RG )7"9RA7CE C6=PA7; (13$() A =F 2=suran e 0o-pan' w#o did business 3issued insuran e poli ies in Cer-an', establis#ed an o""i e4 in Cer-an' was sued b' Cer-an iti!ens in >/ 0ourts 9:; <= (ourts are compelled to ta,e cognizance of the disputeC =:. Alt#oug# >/ 0ourts ould e+er ise (urisdi tion o%er t#e dispute, it would be in on%enient "or t#e de"endant >/ 0orporation to bring to >/ it orporate boo.s and re ords all t#e wa' "ro- Cer-an' (ust to de"end itsel" against Cer-an plainti""s -1oru- non on%eniens8*#e ourt #as dis retion to e+er ise (urisdi tion. *#e ourts #a%e repeatedl' re"used, in t#eir dis retion, to entertain (urisdi tion in 0:A arising in a "oreign (urisdi tion, ,);&; A:*) $A&*2;/ A&; =:=&;/2<;=*/ :1 *); 1:&>78*#e ourts o" t#is ountr' are establis#ed and -aintained pri-aril' to deter-ine ontro%ersies between its own iti!ens and t#ose #a%ing business t#ere, and -ani"estl' t#e ourt -a' prote t itsel" against a "lood o" litigation o%er ontra ts -ade and to be per"or-ed in a "oreign ountr'L #; 7$ <;#:; (A 2#?7 %&530' Facts Ae ause o" t#e gas lea. in >nion 0arbide5s 2ndia plant, se%eral 2ndian iti!ens were .illed and in(ured. As a result, se%eral suits were "iled against >nion 0arbide in >/ - w#i # were later dis-issed be ause t#e 2ndian Co%ern-ent was granted b' a newl' ena ted 2ndian law to #a%e e+ lusie rig#t to represent t#e %i ti-s in 2ndia or elsew#ere 3note8 2ndian go%ern-ent "iled o-plaint in 2ndia against >nion 0arbide4 #ssue ,:= dis-issal based on "orunon on%eniens %alid 3t#e ot#er two issues are not reall' related to t#e topi so (ust see t#e boo.4 6eld F;/. *#e 2ndian 0iti!en-$lainti""s #a%e re%o.ed t#eir aut#ori!ations o" A-eri an ounsels to represent t#e- and substituted t#e 2ndian Co%ern-ent. *#e 2ndian Co%ern-ent
<is-iss t#e 0ase
?octrine of forum non conveniens - ourts -a' de line to tr' t#e ase on t#e ground t#at t#e ontro%ers' -a' be -ore suitabl' tried elsew#ere -literal interpretation8 "oruis in on%enient E<sual grounds when this was used by the court$ K,#en plainti"" -ade t#e #oi e o" t#e "oru- pri-aril' to #arass de"endant b' in"li ting upon #i- unne essar' e+pense and #ards#ip in pursuing t#e re-ed' K,#ere non-resident plainti"" #ose t#e "oru- be ause #e "elt t#at t#e (ur' %erdi ts were larger t#an in ot#er "or a K,#en su # would be burdenso-e on t#e ourt or ta+pa'ers K,#en t#e parties are non-residents and t#ere was a se%ere ba .log o" ases w#en it per ei%ed t#at (ur' dut', w#en o-pulsor', s#ould not be "oisted on a o--unit' wit# no lin. wit# or interest in t#e litigation Kw#en t#e ourt5s lo al -a #iner' was inade9uate to e""e tuate a rig#t, su # as w#en it #ad no wa' o" se uring e%iden e and t#e attendan e o" willing witnesses =ummary$ should consider both public and private interests Private interests$ Jrelati%e ease o" a ess to sour e o" proo" JA%ailabilit' o" o-pulsor' pro ess "or attendan e o" unwilling witnesses J ost o" obtaining and attendan e o"" willing witnesses Jpossibilit' o" %iewing t#e pre-ises i" appropriate Jall ot#er pra ti al proble-s t#at -a.e trial o" a ase eas', e+peditious, and ine+pensi%e Public #nterest Jad-inistrati%e di""i ulties en ountered w#en ourts are ongested J(ur' dut'8 burden on o--unit' Jappropriateness o" #a%ing t#e trial in a ourt t#at is "a-iliar wit# t#e appli able state law rat#er t#an getting anot#er "oruen-es#ed in a o-pli ated on"li t-o"-laws proble-
alread' "iled wit# 2ndian ourt, and 2ndian ourts pro%ides reasonabl' ade9uate alternati%e "oru-. -t#oug# e%iden e in >/8 basi design progra-s, 7ost o" t#e e%iden e in 2=<iA8 Jprin ipal witnesses Jdo u-ents bearing on t#e de%elop-ent and onstru tion o" t#e plant Jdetailed designs Ji-ple-entation o" plans Joperation and regulation o" t#e plant Jsa"et' pre autions J"a ts wG respe t to t#e a ident itsel" Jdeat#s and in(uries attributable to t#e a ident 9#;B :; (:MPA;D G =DDAP %&504' 1a ts ,ing-on, an =F 0o-pan', entered into a ontra t wit# /''ap 0o, an &$ 0o-pan', "or t#e s#ipping o" lot#ing -aterials "ro- =F to &$. /''ap "ailed to settle t#eir obligations wit# ,ing-on so ,ingon sued /''ap in &$. /''ap was arguing t#at t#e &$ ourt s#ould #a%e re"used e+er ising (urisdi tion o%er t#e ase based on 1oru- non on%eniens 2ssue ,:= t#e ourt s#ould #a%e de lined (urisdi tion based on "orunon on%eniens )eld =:. >nless t#e balan e is strongl' in "a%or o" t#e de"endant, t#e plainti""5s #oi e o" "oru- s#ould rarel' be disturbed -0onsideration o" inade9ua ' to en"or e t#e (udg-ent 2. Assu-e Burisdi tion
)eld =o be ause t#e will was not s#own to be e+e uted in a ordan e wit# t#e law w#ere t#e will was -ade, i.e. ,. Iirginia law -t#e ourt an5t ta.e (udi ial noti e, "oreign laws -ust be pro%ed as "a ts $)2L2$$2=; *&>/* 0:. I A:)A=A= 319604 1a ts Ao#anan, a =e%adan iti!en, died wit# a will. $*0 was na-ed t#e e+e utor o" t#e will, o""ered t#e will "or probate in &$. ,ill le"t onl' $6. to t#e wi"e and #ildren, w#ile gi%ing al-ost e%er't#ing to de edent5s siblings and grandson.$*0 presented =e%ada law appli able be"ore t#e ourt in 2 earlier #earings. 2ssue ,:= t#e will was dul' e+e uted in a ordan e wit# =e%ada Law, w#i # was not dul' pro%ed in t#is stage o" t#e pro eeding )eld Fes be ause $#ilippine *rust 0o. alread' produ ed =e%ada laws twi e be"ore t#e ourts below. As =e%ada law does not i-pose o-pulsor' #eirs, pro(e t partition %alid -/: );&;, ourt de ided to ta.e (udi ial noti e o" t#e =e%ada law, as presented in t#e earlier stages o" t#e ase Foreign law cannot be applied ...w#en "oreign law is 314 ontrar' to an i-portant publi poli ' o" t#e "oru324 penal in nature 334 pro edural in nature 344 purel' "is alGad-inistrati%e in nature 354 3will4 wor. undeniable in(usti e to t#e iti!ens o" t#e "oru364 ase in%ol%es realGpersonal propert' situated in t#e"oru374 appli ation o" "oreign law -ig#t endanger %ital interest o" t#e state 3"oru-4 384 ontrar' to good -orals
Forum law decrees application of internal law 0i%il 0ode Article 1!, -a.es real and personal proert' sub(e t to t#e law o" t#e ountr' w#ere t#e' are situated 2ntestate and testa-entar' su ession8 go%erned b' le+ nationale o" t#e person w#ose su ession is under onsideration Article 023, -a.es re%o ation done outside t#e $#ilippines %alid a ording to t#e law o" t#e pla e w#ere t#e will was -ade or le+ do-i illi Article 013, pro#ibits 1ilipinos "ro- -a.ing (oint wills e%en i" %alid in t#e ountr' w#ere t#e' were e+e uted 1oru- law was not properl' pleaded and pro%ed !he proper foreign law was not properly pleaded and proved -no Budi ial noti e o" "oreign law &ele%ant rules o" e%iden e8 Q *o pro%e written "oreign law8 "ollow re9uire-ents in /e 24-25, &ule 132 Q 7a' be sub(e t o" (udi ial ad-ission Q $ro essual presu-ption - no proo" nor ad-ission, "oreign law presu-ed to be t#e sa-e as t#at in t#e $#ilippines 1L;>7;& I )2D 319304 1a ts 1leu-er, t#e ad-inistrator o" )i+5s estate, presented t#e latter5s will3e+e uted abroad4 "or probate be"ore &$ ourt. )e alleges t#at t#e will was dul' e+e uted in a ordan e wit# ,.Iirginia laws, s#owing a op' o" t#e appli able laws as "ound in t#e ,est Iirginia 0ode and 0erti"ied b' t#e <ire tor o" &$ =ational Librar'. 2" t#e will would be probated in a ordan e wit# &$ laws, it would not be allowed be ause it did not s#ow t#at )i+ a .nowledged it in t#e presen e o" 2 o-petent witnesses and it was subs ribed b' )i+ and #is witnesses in t#e presen e o" one anot#er 2ssue ,:= t#e will s#ould be probated in &$
I. 0):20; :1 LA, A.5>E C6RRELA5)67 C>6)CE 6' LA< CE5<EE7 B9R)" )C5)67 A7
Exercise of Buris+iction an+ Choice of Law +ecisions relate+ in 3 important wa-s, 1. 1A0*:&/ t#at will (usti"' t#e "oru- ourtRs e+er ise o" (urisdi tion -a' be t#e sa-e "a tors t#at will deter-ine w#et#er t#e "oruourt will appl' its internal law 3"a tors t#at will deter-ine (urisdi tion -a' be t#e sa-e "a tors t#at will deter-ine #oi e o" law4 2. 2" t#e 1oru- applies its internal law 3 because it has a real interest in that case 4, t#en t#e out o-e o" t#e ase will be "oreordained b' t#at "oru- w#ere t#e suit was broug#t. SK *#e e""e t o" t#is is t#at S t#e plainti"" ,ill bring #is suit, in t#e state w#i # #as a real interest in appl'ing its internal law. 3. And sin e in practice, t#e "oru- will -ost li.el' appl' its own law rat#er t#an displa e it in "a%or o" a "oreign law, t#e plainti"" will predi tabl' bring #is lai- in t#e ourts o" the state, the internal law of which is favorable to him.rt Buris+iction an+ choice of law are 2 +istinct concepts. "oruourt -a' e+er ise (urisdi tion but will not appl' its own law6 or will re"use to assu-e (urisdi tion alt#oug# its internal law -a' be applied as proper law
C.APPR6AC>E" 56 C>6)CE 6' LA< All choice of law problems see, to answer * important 1uestions$ 1. ,#at legal s'ste- s#ould ontrol w#ere t#e signi"i ant "a ts o" t#e ase o urred in 2 or -ore statesH 2. *o w#at e+tent s#ould t#e #osen legal s'ste- regulate t#e situationH - /e%eral t#eories #a%e alread' been propounded to identi"' t#e legal s'ste- t#at s#ould ontrol - 2deall', all #oi e o" law t#eories -ust ad%an e bot# notions o" B>/*20; and $&;<20*AA2L2*F. - )owe%er, t#e' do not alwa's do so. *#e "oruis t#en "a ed wit# t#e proble- w#i # i" t#ese 2 i-portant %alues s#ould be stressed. Prof. Arthur Gon Mehren and ?onald !rautman lassi"' t#ese t#eories into two8 *raditional Approa # and 7odern Approa # 1. 5ra+itional Approach - e-p#asi!e t#e prin iples o" /27$L202*F, 0:=I;=2;=0; and >=21:&72*F 3as.ed in t#e e+a-4 2. =o+ern Approach S t#ose w#i # relate to reaching appropriate results in particular cases
10
2" t#ere is a on"li t bet. le+ lo i and le+ "ori, t#e "or-er go%erns in torts and in ontra ts wrt t#e legal e""e t and in idents o" a ts. 5herefore/ whate*er woul+ &e a +efense to this action ha+ it &een &rou.ht in =aine/ woul+ also &e a +efense in 7ew >ampshire. 2t is desirable t#at t#e re-ed' be t#e sa-e, w#ere%er t#e a tion is broug#t. $lainti"" argues t#at t#e inabilit' to re o%er in 7aine is -erel' be ause t#ere is a pro#ibition o" suit between ) and , in 7aine. *#us, re o%er' -a' be #ad b' going to a (urisdi tion w#ere su # suits are allowed, li.e in =ew )a-ps#ire. =o. *#e inabilit' to "ile an a tion is not -erel' be ause t#ere is a pro#ibition o" suit, but t#at t#e a ts o-plained o" do not gi%e rise to A=F ause o" a tion. *#ere #as been no brea # o" legal dut'. ALAAA7A C&;A* /:>*);&= &.&. 0:. I 0A&&:LL 318924 0arroll is a resident o" Alaba-a, a bra.e-an e-plo'ed b' Alaba-a Creat /out#ern &&. Alaba-a && operated a railroad "ro- *ennessee, t#roug# Alaba-a to 7ississippi. *#e ontra t o" e-plo'-ent was entered into in Alaba-a. 0arroll was in(ured in 7ississippi, be ause o" a negligent "ailure to spot a de"e ti%e lin. between 2 "reig#t ars. >nder 7ississippi law S 0arroll ould =:* re o%er against Alaba-a && be ause t#e negligen e was aused b' a "ellow ser%ant. >nder Alaba-a law S ould re o%er6 in(ur' su""ered in t#e ourse o" e-plo'-ent 0arroll broug#t suit in Alaba-a. ,:= 0arroll -a' re o%er in Alaba-a. =: )eld8 =o ause o" a tion bot# in Alaba-a and in 7ississippi. 5here can &e no reco*er- in one "tate for in2uries to a person sustaine+ in another unless the infliction of the in2uries is actiona&le un+er the law of the "tate in which thewere recei*e+. *#e negligent in"li tion o" an in(ur' in a state under statutor' ir u-stan es reates a rig#t o" a tion in t#at state, w#i #, being transitor', -a' be en"or ed in an' ot#er /tate or ountr', t#e o-it' o" w#i # ad-its o" it. *#e in(ur' o urred in 7ississippi. 2t was in t#at state t#ere"ore w#ere t#e 0:A, i" an', arose. And under t#e law o" 7ississippi, plainti"" #ad no ause o" a tion. )en e, plainti"" #as no rig#ts, w#i # t#e ourt o" Alaba-a an en"or e. Anot#er point being raised b' t#e plainti"" is its rig#t to re o%er under t#e ;-plo'erRs Liabilit' A t 3Alaba-a ontra t o" e-plo'e-ent4. *#is is based upon t#e "a t t#at at t#e ti-e t#e plainti"" was in(ured, #e was in t#e dis #arge o" #is duties w#i # rested on #i- b' t#e ter-s o" #is e-plo'-ent ontra t entered into in Alaba-a. =:. *#e "a t t#at it was an Alaba-a ontra t and t#at t#e plainti"" and t#e orporation were residents o" Alaba-a are o" no i-portan e #ere. *#e duties and liabilities in ident to t#e relation between t#e plainti"" and t#e de"endant w#i # are in%ol%ed in t#is ase are not i-posed b', nor do t#e' spring "ro- t#e ontra t. *#e onl' o""i e o" t#e ontra t #ere is t#e establis#-ent o" a relation between t#e- o" -aster and ser%ant. *#e ondu t o" su # persons toward ea # ot#er, w#en its legalit' is broug#t in 9uestion, is to be ad(udged b' t#e rules o" t#e one or t#e ot#er /tates as in "alls territoriall' wit#in t#e one or t#e ot#er. 2n Cra' %s Cra' alt#oug# t#e onl' relation o" 7aine to t#e spouses was solel' t#at it was t#e pla e w#ere t#e a ident o urred, t#e ourt auto-ati all' applied t#e law o" t#at pla e6 re(e ted a #oi e o" law based on reason, (usti e and e+pedien '. i" t#is law was ena ted b' 7aine to pre%ent do-esti ontro%ersies in 7aine, w#' s#ould a =ew )a-ps#ire wi"e not be allowed to sue #er #usband in =ew )a-ps#ireH /#ouldnRt proble-s o" "a-il' relations be deter-ined
1.
5ra+itional Approach Iested &ig#ts *#eor' Lo al Law *#eor' 0a%erRs $rin iples o" &e"eren e
Gested ights !heory J traditional learning is an #ored on t#e prin iple t#at #oi e o" law rules t#at are8 K si-ple in "orK apable o" eas' ad-inistration K would pro-ote predi tabilit' K and dis ourage "oru- s#opping t#eor' ad%an ed b' $ro". Bosep# Aeale6 #e in orporated t#e t#eor' into t#e "irst &estate-ent o" 0on"li t o" Laws 9n+er this theor-/ an act +one in a forei.n 2uris+iction .i*es rise to the existence of a ri.ht if the laws of that state pro*i+es so. 5his ri.ht :E"5" in the plaintiff an+ he carries it with him to &e enforce+ in any %or(m he chooses to &rin. suit. 1oru- S re"ers to t#e law o" t#e pla e o" o urren e o" t#e Tlast a tU ne essar' to o-plete t#e ause o" a tion. );=0;, i" t#e laws o" t#e state w#ere t#e last a t o urred reate no legal rig#t, t#ere is not#ing "or t#e "oru- to re ogni!e and en"or e, e%en i" its own law reates su # a rig#t. 1urt#er-ore, t#e law o" t#e state o" t#e Tlast a tU is onsidered t#e law appli able to all substanti%e issued o" t#e ase. <2/A<IA=*AC;8 %alues o" si-pli it' and uni"or-it' are ad%an ed e%en at t#e e+pense o" rea #ing a (ust result Cra' %s Cra', Alaba-a Creat /out#ern %s 0arroll C&AF I C&AF 319344 Cra', wit# #er #usband, was on t#eir wa' #o-e to =ew )a-ps#ire. *#e' #ad an a ident in 7aine. Cre' "iled da-ages "or personal in(uries in =ew )a-ps#ire against #er #usband, w#o was t#e one dri%ing. 2n 7aine, spouses are barred "ro- -aintaining an a tion against ea # ot#er. =o su # pro#ibition in =ew )a-ps#ire. )eld8
b' t#e personal laws o" t#e parties rat#er t#an t#e pla e o" t#e wrongH CR)5)C)"=" 67 :E"5E R)?>5" 5>E6R; 2ts -ain wea.ness was its "ailure to resol%e on"li ts ases wit# re"eren e to onsiderations o" poli ' and "airness. *#e stri t and un'ielding appli ation o" t#e law o" t#e pla e o" in(ur' an be o-e ounterintuiti%e, i" not altoget#er arbitrar'. 2n 0arroll "or e+a-ple, t#e Alaba-a ourt applied t#e law o" 7ississippi at t#e e+pense o" arri%ing at a (ust result. <r. Bo%ito /alonga identi"ies 5 -a(or de"e ts o" t#e t#eor'8 1. ,#en t#eorists o" t#e %ested rig#ts t#eor' state t#at it is not the foreign law but the rights ac1uired under it, w#i # are en"or ed b' t#e ourts o" anot#er ountr' S t#ere is at on e in%ol%ed a self4 +elusion of reasonin.. 2. =ot all rig#ts a 9uired under "oreign law are prote ted elsew#ere, nor is t#eir prote tion alwa's desirable. 3. *#e prote tion o" rig#ts and ot#er interests is not t#e onl' onsideration to be ta.en into a ount. 4. *#e law prote ts not onl' %ested rig#ts onstituted abroad but o"ten "oreign legal relations#ips, apa ities or powers out o" w#i #, rig#ts or t#e e+tin tion o" duties and #arges or t#e in%alidit' o" a ts, -a' arise. 5. 2t is di""i ult or i-pra ti able to appl' t#e t#eor' w#ere t#e -aterial aspe ts o" a transa tion or e%ent tou # two or -ore states e9uall'. -ost states #a%e es #ewed t#e rigidit' in#erent in t#e traditional approa #. )owe%er, a nu-ber o" ourts still "ollow it in rea tion to t#e per ei%ed un ertaint' o" t#e poli '-oriented poli ies. @ocal @aw !heory b' $ro". ,alter ,#eeler 0oo. re(e ted dedu tion "ro- general prin iples as a -eans to as ertain positi%e law and instead proposed to uneart# rules b' loo.ing at t#e ases and ot#er on rete p#eno-ena, in luding t#e be#a%ior o" (udges. 0oo. obser%ed t#at8 1st8 t#e power o" a state to regulate wit#in its territor' #as no li-itation, e+ ept su # as -a' be i-posed b' its own positi%e law 2nd8 t#at in on"li ts o" laws proble-s, t#e ourt does not en"or e a "oreign rig#t but a rig#t reated b' its own law b' treating a ase as a purel' do-esti ase t#at does not in%ol%e a "oreign ele-ent. As a result, t#e law applied -a' not be e+a tl' t#at w#i # t#e "oreign ourt would #a%e en"or ed. 0&2*202/7 S it lends to t#e narrow--inded w#o -a' be in lined to depre iate t#e pra ti al and e9uitable onsideration t#at s#ould ontrol t#e ad(udi ation o" on"li t ases in "a%or o" an e+aggerated lo al poli ' on t#e ground t#at t#e' and t#e so%ereign w#i # t#e' represent an do as t#e' please (aver8s Principles :f Preference b' $ro". <a%id 0a%ers #oi e o" law s#ould be deter-ined b' onsiderations o" (usti e and so ial e+pedien ' and s#ould not be a result o" t#e -e #ani al appli ation o" a rule or prin iple o" sele tion ,#en a ourt is "a ed wit# a 9uestion w#et#er to re(e t t#e law o" t#e "oru- and ad-it "oreign law, it s#ould8 1.
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s rutini!e t#e e%ent or transa tion gi%ing rise to t#e issue be"ore it 2. o-pare are"ull' t#e pro""ered rule o" law and t#e result w#i # its appli ation -ig#t wor. in t#e ase at bar wit# t#e rule o" t#e "oru- and its e""e t t#erein 3. appraise t#ese results "ro- t#e standpoint o" (usti e between t#e litigants or o" t#ose broader onsiderations o" so ial poli ' w#i # on"li ting laws -a' e%o.e onl' w#en t#is pro ess o" anal'sis is "ollowed an we su ess"ull' set aside t#e sti"ling e""e ts o" ensuring ertaint' and uni"or-it' abo%e all ot#er ob(e ti%es 0a%ers ontends t#at t#e #oi e o" law de isions s#ould be -ade wit# re"eren e to prin iples o" pre"eren e w#i # are on ei%ed to pro%ide a "air a o--odation o" on"li ting state poli ies and a""ord "air treat-ent to t#e parties w#o are aug#t up in t#e #a!ards between on"li ting state poli ies 0&2*202/7/8 s#ows a *;&&2*:&2AL2/* A2A/6 t#e' loo. at t#e pla e w#ere t#e signi"i ant e%ents o urred or w#ere t#e legal relations#ip is entered.
2. =o+ern Approaches Place :f Most =ignificant elationship re(e ted t#e single onne ting "a tor o" t#e pla e w#ere t#e last a t o urred and adopted an approa # w#i # identi"ied a pluralit' o" "a tors t#at -ust be onsidered in t#e lig#t o" #oi e o" law prin iples. A-ong t#ese #oi e o" law prin iples were8 3a4 t#e needs o" t#e interstate and international s'ste3b4 rele%ant poli ies o" t#e on erned states 3 4 rele%ant poli ies o" ot#er interested states and t#e relati%e interest o" t#ose in t#e deter-ination o" t#e parti ular issue 3d4 t#e prote tion o" (usti"ied e+pe tations o" t#e parties 3e4 t#e basi poli ies underl'ing t#e parti ular "ield o" law 3"4 ertaint', predi tabilit' and uni"or-it' o" result 3g4 ease in t#e deter-ination and t#e appli ation o" t#e law to be applied *o deter-ine w#i # was t#e state o" t#e -ost signi"i ant relations#ip, t#e "a tual onta ts o" ea # ase were onsidered in t#e lig#t o" t#ese prin iples *#ese onta ts #owe%er di""ered in ea # area o" substanti%e law. ;+a-ple8 2n *:&*/ t#e onta ts to be ta.en into a ount are8 pla e w#ere t#e in(ur' o urred pla e w#ere t#e negligent ondu t o urred do-i ile, residen e or nationalit' o" t#e parties pla e w#ere t#e relations#ip between t#e parties are entered 2n 0:=*&A0* 0A/;/ t#e "a tual onta ts in lude8 law #osen b' t#e parties pla e o" ontra ting pla e o" negotiation o" t#e ontra t pla e o" per"or-an e
do-i ile, residen e, nationalit', pla e o" in orporation and pla e o" business o" t#e parties - in bot# tort and ontra t ases, t#e onta ts are e%aluated depending on t#eir relati%e i-portan e and rele%an e to t#e issue at #and A>*;= I A>*;=319544 *#e Autens -arried in ;ngland. *#e #usband deserted #is wi"e and 2 #ildren and -o%ed to =F. *#e wi"e later went to =F w#ere t#e' #ad a separation agree-ent w#ere t#e wi"e pro-ised not to bring an' a tion relating to t#e separation. )usband Auten "ailed to gi%e "inan ial support so wi"e broug#t a suit "or legal separation in ;ngland in t#e ground o" adulter'. =ot#ing #appened wit# t#e ase. /o t#e wi"e broug#t an a tion in =F to en"or e t#e separation agree-ent. )usband argued t#at t# ewi"eRs institution o" t#e ;nglis# separation pro eeding was in %iolation o" t#e separation agree-ent, t#us #is obligations under it are e+tinguis#ed. *#e lower ourt o" =F "ound "or t#e #usband. ,#et#er =F law or Aritis# law s#ould appl'. ;=CL2/) LA, )eld8 ;=CL2/) LA, applies. All -atters relating upon t#e e+e ution, interpretations and %alidit' o" ontra ts are deter-ined b' t#e law o" t#e pla e w#ere t#e ontra t is -ade6 w#ile all -atters onne ted wit# its per"or-an e are regulated b' t#e law o" t#e pla e w#ere t#e ontra t is per"or-ed. ,#at onstitutes a brea # o" ontra t and w#at ir u-stan es e+ use a brea # are onsidered -atters o" per"or-an e, go%ernable b' t#e law o" t#e pla e o" per"or-an e. /o-e treat t#is rule as on lusi%e, w#ile ot#ers onsider t#e 2=*;=*2:= o" t#e parties as ontrolling, w#ile ot#ers #a%e resorted to t#e T0;=*;& :1 C&AI2*FU or TC&:>$2=C :1 0:=*A0*/U *);:&F. >nder t#is t#eor' the courts/ instea+ of re.ar+in. as conclusi*e the partiesI intention or the place of maJin. or place of performance/ la- emphasis rather upon the law of the place which has the most si.nificant contacts with the matter in +ispute. Alt#oug# t#is -a' a""ord less ertaint' and predi tabilit', it gi%es to t#e pla e #a%ing t#e -ost interest in t#e proble- para-ount ontrol o%er t#e legal issues arising out o" a parti ular "a tual onte+t, t#us allowing t#e "oru- to appl' t#e poli ' o" t#e (urisdi tion -ost inti-atel' on erned wit# t#e out o-e o" t#e parti ular litigation. ;+a-ining t#e onta ts wit# =ew For. and ;ngland o-pels t#e on lusion t#at it -ust be ;nglis# law t#at s#ould be applied. 2t is w#ere all t#e trul' signi"i ant onta t too. pla e, w#ile =F is (ust t#e pla e w#ere t#e agree-ent was -ade. *#e ) and , are bot# Aritis# sub(e ts, -arried in ;ngland, #ad #ildren t#ere, and t#ere li%ed as a "a-il'. *#e #usband le"t "or =F onl' under a te-porar' %isa. *#e agree-ent deter-ined and "i+ed t#e -arital responsibilities o" an ;nglis# #usband and "at#er. *#ere is no 9uestion t#at ;ngland #as t#e greatest on ern. ;%en t#oug# t#e agree-ent was e+e uted in =F, it is sting ;ngland t#at #as t#e greatest on ern in de"ining and regulating t#e rig#ts and duties e+isting under t#at agree-ent. )AAC I AA&=;/ 319614 =or-an Aarnes, an 2llinois law'er, and <orot#' )aag, a =F legal se retar', #ad an illegiti-ate #ild. A"ter s#e be a-e pregnant, )aag went to 0ali"ornia. $rior to t#e birt# o" #er #ild, s#e went to 0#i ago and entered into a support agree-ent wit# Aarnes. *#e agree-ent ontained a #oi e o" law lause in "a%or o" 2llinois w#i # up#eld su # agree-ent. )owe%er, =F law ga%e no binding e""e t to agree-ents -ade b' parents o" an illegiti-ate #ild unless su # is (udi iall' appro%ed. )aag returned to =F and "iled t#is support a tion.
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,#et#er =F law or 2llinois law s#ould appl'. 2LL2=:2/ LA,. )eld8 2llinois law s#ould appl'. *#e parties stipulated in t#e agree-ent t#at 2llinois law would appl', ;%en i" t#e partiesR intention and t#e pla e o" -a.ing t#e ontra t are not gi%en de isi%e e""e t, t#e' are gi%en #ea%' weig#t in deter-ining w#i # (urisdi tion #as t#e -ost signi"i ant onta t wit# t#e -atter in dispute. 2llinois onta ts8 agree-ent entered into in 2llinois, #ild was born in 2llinois, all ontributions "or support are -ade "ro- 0#i ago6 parties e+pressl' intended "or 2llinois law to appl'. 0ontrasted wit# t#ese 2llinois onta ts, t#e =F onta ts are o" "ar less weig#t and signi"i an e8 -ot#er and #ild urrentl' li%e in =F and part o" t#e liaison too. pla e in =F. 2t -a' not be gainsaid t#at t#e enter o" gra%it' o" t#e agree-ent was 2llinois. Appl'ing t#e 2llinois law, t#e support agree-ent t#us bars t#e present a tion "or support. 2nstead o" t#e ter- Tstate o" t#e -ost signi"i ant relations#ip,U alt#oug# using t#e sa-e -et#odolog', t#e Auten ase used t#e ter- T enter o" gra%it',U Tpla e w#i # #as t#e -ost signi"i ant onta tsU and Tgrouping o" onta tsU Auten onsidered all rele%ant onta ts instead o" auto-ati all' appl'ing t#e law o" t#e pla e w#ere t#e ontra t was -ade. 0&2*202/78 t#e approa # is one w#i # an be used to support %irtuall' an' result and is t#us bound to #a-per t#e sound de%elop-ent o" t#e o--on law b' sa%ing t#e ourt t#e di""i ult but ne essar' e""ort o" arti ulating t#ose true -oti%ations w#i # are t#e %er' ele-ents o" growing rules As in t#e ase o" )aag, t#e ourt applied t#e law o" 2llinois w#i # was t#e -anRs #o-e. S t#e 9uestion is, is t#is onsistent in appl'ing Auten or did t#e ourt -anipulate t#e onta ts to a #ie%e a pre on ei%ed resultH 0&2*202/78 "ailure to pro%ide an' standard to deter-ine w#i # o" t#e onta ts were signi"i ant and e%aluate t#e relati%e i-portan e o" a group o" onta ts.
#nterest Analysis b' $ro". Arainerd 0urrie urged t#e resolution o" #oi e o" law proble-s b' loo.ing at t#e poli ' be#ind t#e laws o" t#e in%ol%ed states and t#e interest ea # state #ad in appl'ing its own law under t#is approa #, "a tual onta ts alone did not deter-ine t#e out o-e o" a ase unless t#e' re"le ted a state poli ' w#i # would be ad%an ed b' appli ation o" t#e substanti%e state law. A"ter t#e ourt anal'!ed t#e poli ies re"le ted b' a state law, it #ad to deter-ine w#et#er bot# states #ad a real interest in #a%ing t#eir law applied, #en e t#ere was a true on"li t 1AL/; 0:=1L20* S onl' one state #ad an interest in #a%ing its law applied S t#us, t#e "oru- onl' #ad to appl' t#e substanti%e law o" t#e interested state *&>; 0:=1L20* S bot# states #a%e a real interest in #a%ing t#eir law applied. AAA0:0M I BA0M/:= Ceorgia Aab o . and 7r. and 7rs. Ba .son, all residents o" =F, le"t "or a wee.end trip to 0anada. 7r. Ba .son lost ontrol o" t#e ar and Aab o . was badl' in(ured. >pon t#eir return to =F, Aab o . "iled a suit against Ba .son.
=F law does not #a%e a guest statute but 0anada law renders a dri%erGowner o" a %e#i le not liable "or su # in(ur'. ,:= t#e law o" t#e pla e o" t#e a ident go%erns. =:. )eld8 =F law applies. 0o-parison o" t#e relati%e onta ts and interests o" =F and :ntario -a.es it lear t#at =F #as greater and -ore dire t interest. *#e present a tion in%ol%es in(uries sustained b' =F guests as a result o" t#e negligen e o" a =F #ost. :ntarioRs sole relations#ip wit# t#e o urren e is t#e -ere "a t t#at t#e a ident o urred t#ere. =F poli ' re9uires t#e tort"easor to o-pensate #is guest "or in(uries aused b' #is negligen e6 t#e legislature #as repeatedl' re"used to ena t a statute den'ing or li-iting re o%er'. =F ourt #as no reason nor warrant to depart "ro- su # poli ' (ust be ause t#e a ident #appened be'ond its borders. =eit#er #as :ntario an' interest in den'ing re-ed' to a =F guest against #is =F #ost. 1or t#e ob(e t o" :ntarioRs guest statute is to pre%ent "raudulent assertion o" lai-s b' passengers, in ollusion wit# t#e dri%ers against insuran e o-panies6 asserted against :ntario de"endants and t#eir insuran e arriers. ,#et#er t#e =F de"endants -ig#t be de"rauded b' t#e =F plainti""s is s ar el' a %alid on ern "or :ntario. Also, it is =F w#ere t#e parties reside, w#ere t#e guest-#ost relations#ip arose and w#ere t#e trip began and was to end. ,#ile :ntario was (ust t#e pla e o" "ortuitous o urren e o" t#e a ident. *#e liabilities o" t#e parties ste- "ro- t#eir guest-#ost relations#ip and not %ar' and s#i"t as t#e auto-obile pro eeds "ro- pla e to pla e. <issent8 *#e present ase -a.es substantial #anges in t#e law o" torts. *#e e+pression o" enter o" gra%it' and signi"i ant onta ts were neit#er applied nor are t#e' appli able in t#e real- o" torts. Atte-pts to -a.e t#e law o" publi poli ' o" =F pre%ail o%er t#e laws and poli ies o" ot#er /tates w#ere iti!ens o" =F ar on erned are si-pl' a "or- o" e+traterritorialit' w#i # an be turned against us w#ere%er a tions are broug#t in t#e ourts o" =F w#i # in%ol%e iti!ens o" ot#er /tates. in Aab o ., t#e ourt #eld t#at t#e appli ation o" =F law ad%an ed t#e poli ' re"le ted in t#at law, w#ile t#e "ailure to appl' :ntario law did not i-pair t#e poli ' be#ind t#e law. 0&2*202/7/8 on"li ts ases are ordinaril' on erned onl' wit# pri%ate and not go%ern-ental interests. >nwor.able be ause it will re9uire t#e ourt to de ide ea # ase in an ad #o basis sin e t#e ourt is re9uired in e%er' ase to as ertain t#e purpose o" ea # o" t#e potentiall' appli able lo al law rules in order to deter-ine w#i # o" t#ese rules appl'. 2ts e-p#asis on t#e poli ' re"le ted in t#e law ga%e rise to a nu-ber o" di""i ulties be ause not all state legislatures publis#ed o--ittee reports t#at e+plained t#e ba .ground and purpose o" t#e law, leading ea # ourt to deter-ine on its own t#e purpose o" t#e law in 9uestion S -a' en ourage ourts to engage in ar- #air spe ulation o" t#e poli ' be#ind anot#er stateRs law (omparative #mpairment
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Also, not all laws re"le ted poli ' or #ad a purpose ot#er t#an to de ide ases.
b' $ro". ,illia- Aa+ter alls "or t#e subordination o" t#e state ob(e ti%e w#i # would be least i-paired. *#e ourts were as.ed to weig# on"li ting interests and appl' t#e law o" t#e state w#ose interest would be -ore i-paired o" its law were not "ollowed 0&2*202/78 pressured ourts to loo. be#ind an apparent on"li t to t#e pre ise issue and t#e pre ise interest o" ea # state
Functional Analysis b' $ro". <onald *raut-an and Art#ur Ion 7e#ren t#is approa # loo.ed into t#e general poli ies o" t#e state be'ond t#ose re"le ted in its substanti%e law and to poli ies and %alues relating to e""e ti%e and #ar-onious inter ourse between states. *#ese poli ies in lude re ipro it', ad%an e-ent o" -ultipstate a ti%it', prote ting (usti"iable e+pe tations, e%en#andedness in dealing wit# si-ilar ases and e""e ti%eness *#e ne+t step is "or t#e ourt to onsider t#e relative strength of the state policy w#i # t#e aut#or alls Tpoli ' weig#ingU 7illi.en %s $ratt8 $rat was a resident o" 7assa #usetts, w#ere spouse annot a t as suret' "or oneRs obligation. 2n 7aine, $rattRs spouse applied "or redit "ro- 7illi.en guaranteed b' $ratt. ,#en t#e' de"aulted, 7illi.en sued $ratt on t#e guarant' in 7aine. )eld8 <aniel was liable S pla e o" ontra ting was in 7aine. <uring t#e ti-e t#is de ision was -ade, t#e restri ti%e poli ' on t#e rig#t o" -arried wo-an was on t#e wanw in 7assa #usetts and in ot#er states. *#us, t#e rule in "or e at t#e ti-e t#e ontra t was -ade was not based on a strongl' #eld poli '. >sing t#e "un tional anal'sis, t#e ourt s#ould onsi"er w#t#er t#e law o" t#e state re"le ts an e-erging or regressing poli '. (hoice #nfluencing (onsiderations b' $ro". &obert Le"lar espoused 5 -a(or #oi e-in"luen ing onsiderations t#at would lead ourts to t#e #oi e o" law de ision8 1. $redi tabilit' o" results6 2. 7aintenan e o" interstate and international order6 3. /i-pli"i ation o" t#e (udi ial tas.6 4. Appli ation o" t#e better rule o" law6 5. Ad%an e-ent o" t#e "oru-Rs go%ern-ental interests ontrasted wit# interest anal'sis w#i # appl' a parti ular rule o" substanti%e law in order to i-ple-ent a poli ' re"le ted t#erein a ording to Le"lar, ourts will pre"er rules o" law w#et#er t#e' are "oru- law or anot#er stateRs law as long as t#e' -a.e good so ioe ono-i sense "or t#e ti-e t#e ourt spea.s and are sound in %iew o" present da' onditions Le"larRs Tbetter ruleU riterion #as been t#e -ost ontro%ersial aspe t o" #is approa #. 0&2*202/78 in pra ti e, t#e ourts #a%e al-ost alwa's onsidered its own law as t#e better law.
I2. $&:AL;7 :1 0)A&A0*;&2VA*2:= A.C>ARAC5ER)DA5)67 A7 5>E ")7?LE4A"PEC5 =E5>6
14
*: AI:2< *);/;, ourts #a%e resorted to 0)A&A0*;&2VA*2:= and &;=I:2, w#i # operate as Tes ape de%i es.U C>ARAC5ER)DA5)67 a. t#e pro ess b' w#i # a ourt at t#e beginning o" t#e #oi e o" law pro ess assi.ns a +ispute+ Kuestion to an area in su&stanti*e law- su # as torts, ontra ts, "a-il' law or propert'. b. in on"li ts o" laws situations, #ara teri!ation be o-es a per%asi%e proble- sin e at least 2 (urisdi tions wit# di%ergent laws are in%ol%ed. . *#ere are 2 *F$;/ o" #ara teri!ation8 i. /ub(e t 7atter 0#ara teri!ation ii. /ubstan e $ro edure <i #oto-'
0#oi e o" law t#eories #a%e traditionall' on entrated on one ele-ent o" a situation on order to onne t t#e ase to a parti ular legal o--unit' t#is is alled t#e /2=CL;-A/$;0* 7;*):< 1or e+a-ple S an issue deter-ined as ontra tual is i--ediatel' re"erred to t#e pla e o" ontra ting6 one t#at is tortuous is assigned to t#e pla e o" tort *#e goal o" t#is -et#od is to "oster /27$L20*F, 0:=I;=2;=0; and >=21:&72*F :1 &;/>L*/ *raditional Approa # single aspe t -et#od 7odern Approa # -ulti-aspe t -et#od )ere, ALL i-portant "a tors o" t#e ase, bot# territorial and non-territorial are anal'!ed and t#e appli able law is arri%ed at b' rationall' elaborating and appl'ing t#e poli ies and purposes underl'ing t#e parti ular legal rules t#at o-e in 9uestion as well as t#e needs o" t#e interstate or international inter ourse ;nd is to rea # a (ust resolution "or t#e ase at #and $)2L2$$2=;/ "ollow t#e /2=CL;-A/$;0* 7;*):< 1ound in 0i%il 0ode8 o Art. 15. Laws relating to "a-il' rig#ts and duties, or to t#e status, ondition and legal apa it' o" persons are binding upon iti!ens o" t#e $#il. e%en t#oug# li%ing abroad o Art. 16. &eal propert' as well as personal propert' is sub(e t to t#e law o" t#e ountr' w#ere it is situated. )owe%er, intestate and testa-entar' su ession, bot# wit# respe t to t#e order o" su ession and to t#e a-ount o" su essional rig#ts and to t#e intrinsi %alidit' o" testa-entar' pro%isions, s#all be regulated b' t#e =ational law o" t#e person w#ose su ession is under onsideration, w#ate%er -a' be t#e nature o" t#e propert' and regardless o" t#e ountr' w#erein said propert' -a' be "ound. o Art. 17. 1or-s and sole-nities o" ontra ts, wills and ot#er publi instru-ents s#all be go%erned b' t#e laws o" t#e ountr' in w#i # t#e' are e+e uted. ,#en t#e a ts re"erred to are e+e uted be"ore t#e diplo-ati or onsular o""i ials o" t#e &$ in a "oreign ountr', t#e sole-nities establis#ed b' $#ilippine laws s#all be obser%ed in t#eir e+e ution. $ro#ibiti%e laws on erning persons, t#eir a ts or propert' and t#ose w#i # #a%e "or t#eir ob(e t publi order, publi poli ' and good usto-s s#all not be rendered ine""e ti%e b' laws or (udg-ents pro-ulgated, or b' deter-ination s or on%entions agreed upon in a "oreign ountr'. *#ese $#il. rules spe i"' t#e geograp#i al lo ation "row#ere t#e go%erning law is "ound, onsistent wit# t#e traditional approa # <i""i ult' in "ollowing t#ese territoriall' oriented rules in#erent rigidit' and un(ust de isions t#at -a' resu.lt "ro- t#eir appli ation.
2.
/ub(e t 7atter 0#ara teri!ation - is t#e lassi"i ation b' a ourt o" a "a tual situation into a legal ategor'6 i-pt. 2n single-aspe t -et#od be ause t#e L;CAL 0A*;C:&F to w#i # an issue is assigned, deter-ines t#e go%erning law C2AA/ I C:IR* :1 $2319334 Allison Cibbs was t#e ) o" ;%a Cibbs. *#e' were iti!ens o" 0ali"ornia and were do-i iled t#ere. *#e' a 9uired 3 par els o" land in 7anila, w#i # "or-ed part o" t#eir on(ugal propert'. ;%a died and Allison was appointed ad-inistrator. Allison "iled a petition in 0ali"ornia alleging t#at under 0ali"ornia, w#en a spouse dies, t#e on(ugal propert' be o-es absolutel' owned b' t#e sur%i%ing spouse. 0ourt granted petition and ad(udi ated to Allison sole and absolute owners#ip o" t#e land. Allison presented t#e de ree to t#e &egister o" <eeds in 7anila and de-anded "or t#e issuan e o" a *0*. &egister o" <eeds de lined to a ept t#e de ree as binding and re"used to register t#e trans"er o" title on t#e ground t#at t#e in#eritan e ta+ #as not 'et been paid. Allison "iled a ase in 7anila. 0ourt a""ir-ed t#e de ision o" t#e &egister o" deeds. )en e t#is petition. 2ssue8 ,#et#er t#e 0ali"ornia 0i%il 0ode or t#e $#il. Ad-inistrati%e 0ode s#ould appl'. )eld8 $#ilippine Law s#ould appl'. 2n real propert', t#e law o" t#e pla e w#ere t#e propert' is lo ated go%erns. *#e nature and e+tent o" t#e title w#i # %ested in 7rs. Cibbs -ust be deter-ined in a ordan e wit# t#e le+ rei sitae. >nder $#il. law, s#e was %ested o" a title e9ual to t#at o" #er #usband6 s#all be dee-ed partners#ip propert'. >pon #er deat# #er s#are in t#e on(ugal propert' does not be o-e absolutel' owned b' t#e #usband but is trans-itted to #er #eirs b' su ession, w#i # le%ies a ta+ on in#eritan e 3t#e order o" su ession is to be go%erned b' 0ali"ornia law sin e personal law go%erns in su ession4.
Alt#oug# t#e ourts was silent on t#e -atter o" #ara teri!ation, it was "a ed wit# t#e tas. o" ategori!ing t#e issue in Cibbs as in%ol%ing real propert' to be go%erned b' t#e le+ situs, :& one in%ol%ing su ession to be go%erned b' t#e national law o" t#e de edent.
0#ara teri!ation proble-s are onsidered a -ena e to t#e traditional #oi e o" law t#eories w#i # ai- "or uni"or-it' and predi tabilit' o" results. ;+. in issue o" ,:= an adopted #ild is entitled to an intestate s#are in #er parentRs estate. 2" t#e #ild was adopted in t#e $#il. b' a "or-er 1il. 0iti!en, t#en -o%es to t#e >/ and be o-es a >/ iti!en, b' w#ose laws s#e will not be an #eir, t#e ourt will #a%e to de ide w#et#er is a 9uestion relating to adoption or to su ession. 2" su ession S law o" t#e pla e w#ere adoption too. pla e go%erns6 i" su ession S law o" adopted go%erns. Anot#er e+a-ple is in w#en a person #ires an agent in anot#er ountr' and t#e agent o--its a negligent a t. *#e liabilit' o" t#e prin ipal will depend on t#e #ara teri!ation o" t#e ase i" ontra tual, law o" t#e pla e w#ere t#e ontra t was entered into go%erns6 i" tortuous, law o" t#e pla e o" tort. 3. /ubstan e-$ro edure <i #oto-' dire ts t#e ourt to t#e e+tent it will appl' "oreign law i" t#e issue is />A/*A=*2I; S t#e ourt -a' appl' "oreign law i" $&:0;<>&AL S law o" t#e "oru-6 t#e rig#ts and duties i" parties arising "ro- a legal situation s#all not be substantiall' %aried be ause o" t#e "oru- in w#i # an a tion is broug#t o all in lusi%e re"eren e to t#e "oreign law is ne%er -ade6 a #ea%' burden would be t#rown upon t#e ourts o" t#e "oruand t#e orderl' ad-inistration o" (usti e will be #a-pered. A li-itation upon t#e s ope o" t#e re"eren e to t#e "oreign law is t#us ne essar'.
15
(ust and rational result being lear, t#e ourt a%ailed itsel" o" one o" t#e se%eral es ape de%i es t#at are built into t#e s'ste- itsel". "ar "ro- an ideal wa' o" dealing wit# t#e situation6 it would be better i" t#e ourt ould state e+pli itl' t#e onsiderations t#at led t#e- in t#e "irst pla e to deter-ine w#at t#e result s#ould be and indi ate learl' #ow t#ese onsiderations will be appraised in ot#er ases legal s #olars #owe%er #a%e not suggested an' -et#od w#ereb' ourts ould sele t an appropriate law ob(e ti%el' and an atte-pt b' t#e ourt to e+plain its de isions in ter-s o" de-ands o" (usti e or so ial poli ' would doubtlessl' reate -ore un ertaint' and arouse -ore riti is- t#an did t#e 0ali"ornia /0Rs e-plo'-ent o" t#e traditional es ape de%i e so #ara teri!ation $ro edural issues are go%erned b' "oru- law so as not to undul' burden or o-pli ate t#e tas. o" t#e ourt wit# t#e stud' o" un o--on pe uliarities and re"ine-ents o" anot#er legal s'ste-. )owe%er, so losel' are pro edure and substan e onne ted t#at in -an' ases, a re"usal to a ept t#e "oreign rule as to a -atter "alling into a doubt"ul lass will de"eat t#e poli ' in%ol%ed in "ollowing t#e "oreign substanti%e law. 2 2ssues t#at o asion t#e debate as regards t#eir proper lassi"i ation8 /tatute o" 1rauds and /tatute o" Li-itations =tatute :f Frauds - onsidered as substanti%e i" t#e words o" t#e law relate to "orbidding t#e reation o" obligation - on t#e ot#er #and, one t#at "orbids t#e en"or e-ent o" t#e obligation is onsidered pro edural o Art. 1403 S ontra ts t#at do not o-pl' wit# t#e /tatues o" 1rauds are unen"or eable b' a tion unless t#e sa-e or so-e note or -e-orandu- t#ereo" be in writing6 e%iden e o" t#e agree-ent annot be re ei%ed wit#out t#e writing or se ondar' e%iden e o" its ontents. - 7arie %s Carrison8 Carrison -aintains t#at t#e =F /tatute o" 1rauds is a rule a""e ting t#e re-ed' upon a ontra t wit#in its ter-s and dee-ed a rule o" pro edure. 7arie lai-s t#at t#e =F law was onstru ted as a rule o" substan e going into t#e e+isten e o" a ontra t );L<8 t#e =F /tatute o" 1rauds was a rule o" substan e sin e it pro%ides t#at t#e ontra t o" sale o" an' interest in land s#all be %oid unless it was in writing6 as opposed to a law stating t#at Tno a tion s#all be broug#tU i" t#e re9uire-ent was not o-plied wit#. =tatutes :f @imitations And 2orrowing =tatutes b' tradition, lassi"ied as Tpro eduralU be ause t#e' barred onl' t#e legal re-ed' wit#out i-pairing t#e substanti%e rig#t in%ol%ed. as a result, a suit ould still be -aintained in anot#er (urisdi tion t#at pro%ides "or a longer statute o" li-itations #owe%er, ertain statutes o" li-itations #a%e been lassi"ied as substanti%e "or on"li ts purposes i" t#e' pro%ide a s#orter period "or ertain t'pes o" lai-s t#at "all wit#in a wider lassi"i ation o%ered b' a general statute o" li-itations. 2n order to deter-ine w#et#er a "oreign statute s#ould be regarded as substanti%e or pro edural "PEC)')C)5; 5E"5 8 9" court hel+ that a statute of limitations of a forei.n countr- is treate+ as
C&A=* I 70A>L211; 319534 Crant et. al. were residents o" 0ali"ornia. 2n(ured in Ari!ona w#en t#eir ar ollided wit# t#e ar o" $ullen. $ullen, also "ro0ali"ornia, died. Crant broug#t a tion in 0ali"ornia against $ullenRs estate to re o%er "or t#eir in(uries. >nder Ari!ona law, a tort a tion w#i # #as not been o--en ed be"ore t#e deat# o" t#e tort"easor -ust be abated. >nder 0ali"ornia law, ause o" a tion "or torts sur%i%e t#e deat# o" t#e tort"easor. ,:= t#e present pro eeding are substanti%e or pro edural "or purposes o" on"li t o" laws. )eld8 /ur%i%al o" auses o" a tion o" a pro edural issue6 0ali"ornia law go%erns /ur%i%al o" auses o" a tion s#ould be go%erned b' t#e law o" t#e "oru-. /ur%i%al is not an essential part o" t#e 0:A itsel" but relates to t#e pro edures a%ailable "or t#e en"or e-ent o" t#e legal lai- o" da-ages. CrantRs 0:A sur%i%es $ullenRs deat#. t#e rea tion to Crant was on t#e w#ole, negati%e. #ara teri!ed as #a%ing been based on an erroneous #ara teri!ation t#at was greatl' in"luen ed b' s'-pat#' "a tors in t#e ase. Anot#er %iew8 orre t result but arri%ed at using dubious -et#od. A dg. to 0urrie t#e ourt a%ailed o" one o" se%eral es ape de%i es S #ara teri!ation6 it #ara teri!ed t#e proble- di""erentl' and t#e di""erent #ara teri!ation produ ed t#e result t#at #as been pre%iousl' re ogni!ed as t#e sound one6 t#e
su&stanti*e when the limitation was +irecte+ to the newlcreate+ lia&ilit- so s)e'i%i'a y as to warrant sa-in. that is Kualifie+ the ri.ht. ;onetheless, in order to eliminate forum-shopping, many states including the Phil. have passed borrowing statutes which bar the filing of a suit in the forum if it is already barred by the statute of limitations in the place where the cause of action arose )owe%er, in 0adalin, t#e ourt #eld t#at to en"or e t#e borrowed statute would ontra%ene publi poli ' on prote tion o" labor.
16
)owe%er, t#e deter-ination o" ,:= t#e wo-an w#o lai-s a s#are in t#e estate 2/ a wi"e is go%erned b' 1a-il' law and not laws on su ession *#e issue o" w#at law go%erns t#e -o%able propert' and t#e su essional rig#ts o" t#e spouse are o" pri-ar' i-portan e sin e t#e' e-bod' t#e Tsubstan e o" t#e lai-U6 #owe%er, t#e %alidit' o" t#e -arriage a""e ts t#e solution be ause it answers a preli-inar' or in idental 9uestion. 5he presence of an inci+ental Kuestion is one instnce which calls for the emplo-ment of +epeca.e a single ele-ent o" a ase is -ade to relate it to one legal s'ste-6 depe age allows t#e ot#er rele%ant interests o" t#e parties to be addressed ;""e t permit courts to arri*e at a functionall- soun+ result w#o re2ectin. the metho+olo.- of tra+itional approach >A9="C>)L : C675)7E75AL CA"9AL5; (1353) Ba 9uel'n )au-s #ild and Le &o' Cleason were -arried in ,is onsin and were do-i iled t#ere. 2n 1958arriage was annulled. 1956, )au-s #ild was in(ured w#ile dri%ing a -otor tru . dri%en b' Cleason in 0ali"ornia. )au-s #ild "iled an a tion against Cleason in 0ali"ornia. Cleason -o%ed to dis-iss be . under 0ali"ornia law, spouses are i--une "ro- suit b' t#e ot#er and t#at )au-s #ild is estopped to assert t#e in%alidit' o" t#eir -arriage. ,:= t#e law o" t#e do-i ile s#ould appl'. F;/ ,#et#er t#e law o" t#e pla e o" wrong s#ould be applied, in resol%ing an issue o" inter"a-il' i--unit' "ro- suit in tort. =: )eld8 *#e law o" t#e do-i ile is t#e one t#at oug#t to be applied in deter-ining an' issue o" in apa it' to sue based upon "a-il' relations#ip. t#e ourt de ided t#at t#e law o" t#e pla e o" a ident, 0ali"ornia, go%erned t#e issue o" negligen e, w#ile ,is onsin law go%erned t#e issue o" interspousal i--unit'. *#e #ara teri!ation pro ess was ta.en one step "urt#er b' not li-iting t#e lassi"i ation to t#e ase itsel" but li.ewise, to t#e issues arising "ro- t#e ase. 1A0*:&/ to be onsidered in #oosing appli able law8 3set out b' t#e 1969 &estate-ent 2d w#i # adopted depe age4 a. t#e needs o" t#e interstate and international s'steb. rele%ant poli ies o" t#e "oru. rele%ant poli ies o" ot#er interested states and t#e relati%e interests o" t#ose states in t#e deter-ination o" a parti ular issue d. prote tion o" t#e (usti"ied e+pe tation o" t#e parties e. basi poli ies underl'ing t#e parti ular "ield o" law ". ertaint', predi tabilit' and uni"or-it' o" results g. ease in t#e deter-ination and appli ation o" t#e law to be applied t#e onsideration o" an' o" t#ese ele-ents and t#e a eptan e b' t#e ourts o" depe age #elp ease t#e in#erent restri tions o" t#e single-aspe t -et#od ourts are not o-pelled to appl' t#e entiret' o" a stateRs law to all aspe ts o" t#e ase, appli ation o" w#i # -ig#t produ e egregious results6 utting up t#e ase b' issue and appl'ing pertinent laws allows t#e ourt to rea # a de ision t#at is "air and desirable.
CA AL)7 : P6EA A =)7)"5RA56R (133$) 0adalin instituted a lass suit wit# t#e $:;A "or -one' lai-s arising "ro- t#eir re ruit-ent "ro- Asia 2nternational Auilders and e-lo'-ent b' Arown and &oot 2nternational 3A&224. A&22 is a "oreign orporation wit# #ead9uarters in *e+as, w#ile A2A0 is a do-esti orporation. 0adalin soug#t t#e pa'-ent o" t#e une+pired portion o" t#e e-plo'-ent ontra ts, w#i # were ter-inated pre-aturel'. 2n Aa#rain were so-e o" t#e o-plainants were deplo'ed, t#eir labor law pro%ides t#e ter-s and onditions o" e-plo'-ent to go%ern e-plo'ees and wor.ers in Aa#rain. =2&0 dis-issed t#e lai-s. *o $:;A, t#e pres ripti%e period was 10 'ears, w#ile =L&0 pro%ides "or 3 'ear pres ription period as pro%ided in t#e Labor 0ode. /olo itor Ceneral said t#e pres ripti%e period is 1 'ear as pres ribed b' t#e A-iri de ree. )eld8 As a general rule, a "oreign pro edural law will not be applied in t#e "oru-. $ro edural -atters su # as ser%i e o" pro ess, (oinder o" a tions, period and re9uisites "or appeal, et . are go%erned b' t#e laws o" t#e "oru-. *#is is true e%en i" t#e a tion is based upon "oreign substanti%e law. >owe*er/ a law on prescription of actions is sui .eneris in that it ma- &e *iewe+ either as proce+ural or su&stanti*e/ +epen+in. on the characteri1ation .i*en such law. >owe*er/ the characteri1ation into a proce+ural or su&stanti*e law &ecomes irrele*ant when the countr- of the forum has a L&orrowin. statute.M /u # statute #as t#e pra ti al e""e t o" treating t#e "oreign statute o" li-itation as one o" substan e. 2t dire ts t#e state o" t#e "oru- to appl' t#e "oreign statute o" li-itations. 2t pro%ides t#at an a tion barred b' t#e lo al laws o" t#e pla e w#ere in t#e "oru- e%en t#oug# t#e lo al statute #as not run against it. /e . 48 o" our 0ode o" 0i%il $ro edure pro%ides t#is. ):,;I;&, /e . 48 annot be en"or ed in so "ar as it ordains appli ation o" t#e A-iri <e ree. 5he courts of the forum will not enforce an- forei.n claim o&noxious to the forumIs pu&lic polic-. 5o enforce the 1 -r. prescripti*e perio+ woul+ contra*ene the pu&lic polic- on protection to la&or. 5he applica&le pro*ision is the Philippine law. C. EPACA?E - "ro- t#e 1ren # word Tdepe erU -eaning to disse t - term for the phenomenon where +ifferent aspects of a case in*ol*in. a forei.n element ma- &e .o*erne+ &+ifferent s-stems of laws - e+. b' $ro". 7e#ren and *raut-an S 7an dies intestate, do-i iled in /tate A and #as -o%able propert' in /tate A. /tate A re"er to laws o" t#e do-i ile to det. #ow #is estate s#ould be di%ided /tate A gi%es t#e widow a de"inite s#are in t#e estate o" t#e de eased
alt#oug# appli ation o" depe age in ase law bot# in t#e $#il. and >/ is still un o--on . Capacit- to Enter )nto Contracts go%erned b' t#e rules on status and apa it' ountries t#at "ollow nationalit' law prin iple national laws6 ountries t#at "ollow do-i iliar' law t#eor' law o" t#eir do-i ile s#all go%ern 2n #nsular Bovernment vs Fran,$ disregarded t#e nationalit' prin iple. 1ran. #ad t#e apa it' to enter into a ontra t w#et#er in t#e >/ or t#e $#il. sin e #e was o" -a(orit' age as deter-ined b' #is national law. )en e, #e ould not plead in"an ' and 9uestion t#e %alidit' o" t#e ontra t. t#is de ision was an erroneous appli ation o" t#e le+ lo i elebretionis sin e w#at was in 9uestion was t#e apa it' to ontra t. *#e ourt ould #a%e arri%ed at t#e sa-e result #ad it applied le+ nationalii, w#i # was also t#e le+ lo i elebrationis. ;. 0#oi e o" Law 2ssues in 0on"li ts 0ontra ts 0ases - under prin iple o" "reedo- to ontra t, parties -a' stipulate on t#e law t#at will go%ern t#eir ontra t agree-ent 1. 0#oi e o" 1oru- 0lause 0o-pagnie de 0o--er e %s )a-burg A-eri a /tea-s#ip /a-bia, registered in Cer-an' and oened b' )a-burg A-eri.a, pro eeded to port o" /aigon w#ere it was ta.ing a argo belonging to t#e plainti"" 0o-pagnie de 0o--er e, a orporation organi!ed under t#e laws o" 1ran e. *#ere were ru-ors o" i-pending war. 7aster o" /a-ia re ei%ed on order "ro- owner )a-burg to pro eed at on e to /aigon, w#i # is a neutral port. $lainti"" 0o-pagnie <e 0o--er e ob(e ted and insisted t#at t#e stea-s#ip s#ould load t#e w#ole argo wit# t#e ter-s o" t#e #arter part'. *#e -aster went to /aigon. *#e stea-s#ip t#en went to 7anila and re-ained t#ere. =o atte-pt was -ade b' t#e owners, -aster or agent o" t#e stea-s#ip to o-plete t#e %o'age or to onser%e its peris#able -er #andise. *#e argo was deteriorating so t#e -aster o" t#e stea-s#ip se ured a (udi ial aut#orit' to sell t#e- and t#e balan e o" t#e argo was du-ped into t#e sea. *#e pro eeds o" t#e sale was deposited in t#e ourt. $lainti"" "iled an a tion "or brea # o" ontra t. /oug#t to re o%er in /aigon t#e "ull %alue o" t#e argo loaded. <e"endant alleged t#at $#il. ourts #ad no (urisdi tion sin e t#e part' #ad a lause dire ting settle-ent o" disputes "irst to a Aoard o" Arbitration in ;ngland. ,:= $#il. ourt #ad (urisdi tion. )eld8 F;/. :b(e tion to (urisdi tion raised "or t#e "irst ti-e on appeal. <e"endant not onl' appeared and soug#t wGo ob(e ting to t#e ourtRs (urisdi tion but e%en as.ed "or a""ir-ati%e relie" b' "iling a ounter lai-. A ontra tual stipulation "or a general arbitration annot be in%o.ed to oust t#e ourt o" its (urisdi tion, as stated in nu-erous ases, and t#is do trine s#ould be applied in t#e ase at bar, notwit#standing t#e "a t t#at t#e ontra t was e+e uted in ;ngland, in t#e absen e o" a%er-ent and proo" t#at under t#e law o" ;ngland o-plian e wit# or an o""er to o-pl' wit# su # a stipulation onstitutes a ondition pre edent to t#e institution o" (udi ial pro eeding "or t#e en"or e-ent o" t#e ontra t. Ming 7au %s /' ip Ming 7au, agent o" /' ip, sold and s#ipped 1000 tons o" o onut oil to 1assett w#o in turn assigned it to 1ortrade 0orp. >nder t#e
17
agen ' agree-ent in =ew For., Ming was -ade t#e e+ lusi%e agent o" /' ip in t#e sale o" $#ilippine o onut oil outside t#e $#il. to be paid 2 WX o" t#e total sale. Ming "iled t#is a tion to olle t $59. as #is s#are as agent. /' ip #owe%er ontends t#at t#e transa tion "or t#e sale o" 1. tons o" o onut oil e-ulsion was not o%ered b' t#e agen ' ontra t. 2t was ontended t#at as t#e ontra t was e+e uted in =F, t#e ourt o" 012 7anila #ad no (urisdi tion. ,:= ourt #ad (urisdi tion. )eld8 F;/. A non-resident -a' sue a resident in t#e ourts o" t#e $#il. w#ere t#e de"endant -a' be su--oned and #is propert' le%iable upon e+e ution in ase o" a "a%orable (udg-ent. 2t is a personal a tion "or olle tion o" su- o" -one' w#i # t#e 012 o" 7anila #a%e (urisdi tion to de ide. *#ere is no on"li t o" laws in%ol%ed in t#e ase be ause it is onl' a 9uestion o" en"or ing an obligation reated b' or arising "ro- ontra t and unless t#e en"or e-ent o" t#e ontra t be against publi poli ' o" t#e "oru-, it -ust be en"or ed. in t#is ase, t#e ourt #eld t#at t#ere is no on"li t o" laws in%ol%ed disregards t#e on ept o" on"li t o" alws as en o-passing all ases w#i # #a%e at least 1 "oreign ele-ent. /in e t#e ontra t was e+e uted in =F and t#e goods were s#ipped in =F, t#en t#ere are ob%iousl' "oreign ele-ents t#at #ara teri!e t#e ase as a on"li ts ase. 1ollowing t#e 2=*;&;/* A=ALF/2/ approa #, t#e poli ies re"le ted b' t#e stateRs laws will deter-ine w#et#er t#e' #a%e a real interest in t#e ase. /in e t#e $#ilippines #as no interest in appl'ing its own law, t#en t#e ourt ould #a%e "ound t#at t#e poli ' o" t#e $#il. is not signi"i antl' in%ol%ed in t#e ir u-stan es o" t#e ase. *#e ase presents a 1AL/; 0:=1L20* and t#e "oru- e+er ises (urisdi tion o%er t#e ase but applies t#e law o" t#e interested state w#i # is t#e le+ lo i elebrationis. )/A0 %s /#er-an ;astern Aoo. /uppl' /er%i e, /ingaporean o-pan', was granted b' )/A0 an o%erdra"t "a ilit' in t#e a-ount o" Y200.. As se urit', /#er-an and &elo(, dire tors o" t#e o-pan', e+e uted a (oint and se%eral guarantee. 0o-pan' "ailed to pa' its obligations. *#us, ban. went a"ter /#er-an. Also "ailed to pa'. /o ban. "iled a ase in &*0 o" O0. /#er-an lai-s t#at $#il. ourt #ad no (urisdi tion be ause o" t#e stipulation in t#e guarantee t#at t#e ourts o" /ingapore s#all #a%e (urisdi tion o%er all disputes arising under t#e guarantee. )eld8 &*0 #as (urisdi tion. $arties did not stipulate t#at :=LF t#e ourts o" /ingapore, *: *); ;D0L>/2:= o" all t#e rest, #as (urisdi tion. =eit#er did t#e lause operate to di%est $#il. ourts o" (urisdi tion. $arties -a' stipulate on t#e %enue o" t#e suit in ase o" litigation on erning t#e ontra t. )owe%er, a ase arising "rot#e ontra t will be litigated onl' in t#e "oru- #osen, i" t#e #oi e o" "orulause spe i"i all' indenti"ies it as t#e :=LF %enue6 to t#e e+ lusion o" t#e ot#ers. 2" parties agreed in writing t#at an a tion s#all be broug#t onl' in anot#er state and it is broug#t in t#is ourt, t#e ourt will dis-iss or sta' t#e a tion as appropriate, unless - t#e ourt is re9uired b' statute to entertain t#e a tion - plainti"" annot se ure e""e ti%e relie" in t#e ot#er state t#e ot#er state would be a substantiall' less on%enient pla e "or t#e trial t#an t#is state
- t#e agree-ent as to t#e pla e o" t#e a tion was obtained b' -isrepresentation, duress, abuse o" e ono-i power, or ot#er un ons ionable -eans. it would "or so-e ot#er reason be un"air or unreasonable to en"or e t#e agree-ent 2. 0ontra ts wit# Arbitration 0lause gi%es rise to t#e issue o" w#et#er one o" t#e parties an o-pel t#e ot#er to sub-it to arbitration in earl' A-eri an ases, t#e ourt de lared t#e arbitration lause indenti"'ing t#e arbiter to de ide all -atters and de lare su # de isions as "inal and on lusi%e between t#e parties is ontrar' to t#e de lared poli ' o" t#e ourts. -
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en"or e-ent would ontra%ene a strong publi poli ' o" t#e "oru- in w#i # t#e suit is broug#t w#et#er de lared b' statute or b' (udi ial de ision i" seriousl' in on%enient "or t#e trial o" t#e a tion6 but i" it an be s#own t#at t#e parties #a%e onte-plated su # in on%enien e, t#en it is di""i ult to see w#' it s#ould be #eld unen"or eable.
1912, =F Arbitration Law was passed pro%iding t#at arbitration ontra ts be %alid, en"or eable and irre%o able. *#us, in t#e >/, ontra ts wit# arbitration lause are no longer onsidered o""ensi%e to t#e settled publi poli '. :n t#e ontrar', t#e -odern tenden ' o" t#e ourts is to loo. wit# "a%or upon su # agree-ents. 3. Ad#esion 0ontra ts A<);/2:= 0:=*&A0* a. one t#at is not negotiated b' t#e parties, #a%ing been dra"ted b' t#e do-inant part' and usuall' e-bodied in a standardi!ed "or-. 2t is alled a ontra t o" ad#esion be ause t#e onl' parti ipation o" t#e ot#er part' is in a""i+ing #er signature or ad#ering t#ereto. b. Also re"erred to as a Tta.e it or lea%e itU ontra t . ;+. 2nsuran e ontra ts, bills o" lading, ontra ts o" sale o" land "ro- real estate "ir-s and airline ti .ets $anA- ,orld Airwa's %s &apadas Bose &apadas, w#ile standing in line to board t#e "lig#t "ro- Cua- to 7anila, was ordered b' a $an A- ontrol agent to #e . in #is sa-sonite atta #Z ase. )e instead went to t#e end o" t#e line to tr' to get t#roug# wit#out #a%ing to #e . in #is atta #Z ase. )e was again spotted, and "or "ear t#at #e would -iss t#e plane, #e #e .ed it in wit#out de laring its ontents or %alue. )owe%er, t#e atta #Z ase ne%er arri%ed in 7anila. $an A- o""ered to settle t#e lai- "or Y160. &apadas re"used and "iled t#is ase lai-ing t#at its %alue was Y42.. $an A- a .nowledged responsibilit' "or t#e loss but asserted t#at t#e lai- was sub(e t to t#e T=oti e o" Aaggage Liabilit' Li-itations "or-ing part o" t#e passengerRs ti .et.U )eld8 *#e ,arsaw on%ention go%erns t#e a%ail-ent o" t#e liabilit' li-itations were t#e baggage #e . is o-bined wit# or in orporated in t#e passenger ti .et w#i # o-plies wit# t#e on%entionRs pro%ision. 2n t#e ase at bar, t#e baggage #e . is o-bined wit# t#e passenger ti .et in one do u-ent o" arriage. *#e pro%isions in t#e plane ti .et are su""i ient to go%ern t#e li-itations o" liabilities o" t#e airline "or loss o" luggage. 2" t#e passenger "ails to addu e e%iden e to o%er o-e t#e stipulations, #e annot a%oid t#e appli ation o" liabilit' li-itations. $AL %s 0A Cilda 7e(ia s#ipped t#roug# $AL one unit o" -i rowa%e o%en "ro- /an 1ran is o to 7anila. >pon arri%al o" t#e unit, 7e(ia
$uro-ines, 2n . %s 0A $uro-ines entered into a ontra t wit# $#ilip Arot#ers "or t#e sale o" >rea. *#e ontra t pro%ided an arbtration lause w#i # stated t#at disputes arising t#ere"ro- s#all be settled b' arbitration in London. *#e >rea deli%ered b' $#ilip Arot#ers in 7anila were in bad order and ondition, a.ed, lu-p' and onta-inated wit# rust and dirt. $uro-ines "iled a o-plaint in &*0 "or brea # o" ontra t o" arriage. ,:= ourt #as (urisdi tion. )eld8 =:. *#e parties are obligated to respe t t#e arbitration pro%isions on t#e sales ontra t andGor t#e bill o" lading. *#e' annot es ape "ro- t#is obligation under t#e arbitration lause stated t#erein. *#e rule now is t#at unless t#e agree-ent is su # as absolutel' to lose t#e doors o" t#e ourts against t#e parties, w#i # agree-ent would be %oid, t#e ourts will loo. wit# "a%or upon su # a-i able arrange-ent and will onl' inter"ere wit# great relu tan e to anti ipate or nulli"' t#e a tion o" t#e arbitrator. Are-en %s Vapata Vapata, a )ouston orporation, ontra ted wit# >nterweser, a Cer-an orporation, "or t#e towing o" VapataRs rig, 0#aparral, "ro- Louisiana to 2tal'. *#eir ontra t ontained a "oru--sele tion lause pro%iding t#at an' dispute -ust be treated be"ore t#e London 0ourt o" Busti e. ,#ile in t#e 2nternational waters, a se%ere stor- arose and 0#aparral was seriousl' da-aged. Vapata instru ted >nterweserRs tug to tow t#e da-aged rig to 1lorida, t#e nearest port o" re"uge. Vapata o--en ed a suit in t#e >/A "or da-ages. >nterweser -o%ed to dis-iss "or la . o" (urisdi tion. >/ <istri t ourt #eld t#at t#e "oru- sele tion lause is unen"or eable, reiterating t#e traditional %iew t#at agree-ents in ad%an e o" ontro%ers' w#ose ob(e t is to oust t#e (urisdi tion o" t#e ourts are ontrar' to publi poli ' and will not be en"or ed. )eld8 2n t#e lig#t o" t#e present-da' o--er ial realities and e+panding international trade, t#e "orulause s#ould ontrol absent a strong s#owing t#at it s#ould be set aside. *#e orre t approa # would #a%e been to en"or e t#e "orulause unless Vapata ould learl' s#ow t#at en"or e-ent would be unreasonable and un(ust or t#at it was in%alid "or reasons su # as "raud and o%errea #ing. 0ase -ust be re-anded "or re onsideration. *#e ourt notes #owe%er t#at t#ere is not#ing in t#e re ord present t#at would support re"usal to en"or e t#e "orulause. *#e parties in%ol%ed #ere are an A-eri an and a Cer-an. &easonable to #oose London, w#i # was a neutral "oru-. A ontra tual #oi e o" "oruunen"or eable i"8 lause would be #eld
dis o%ered t#at t#e "ront glass door was bro.en. 7e(ia -ade oral and written de-ands "or rei-burse-ent "or t#e %alue o" t#e o%en, w#i # $AL ignored. 7e(ia "iled an a tion and de-anded $30. rei-burse-ent, and $10. "or -oral da-ages. $AL alleged t#at t#ere was no %alid ause o" a tion sin e it a ted in good "ait# and in o-plian e wit# t#e ,arsaw 0on%ention and e+er ised due diligen e in t#e sele tion and super%ision o" its e-plo'ees. ,:= t#e li-ited liabilit' pro%ision on t#e airwa' bill s#ould appl'. )eld8 =:. *#e "ront portion o" t#e airwa' bull ontains a si-ple warning t#at t#e s#ip-ent is sub(e t to t#e onditions o" t#e ontra t on t#e dorsal portion regarding t#e li-ited liabilit' o" t#e arrier unless a #ig#er %aluation is de lared. *#e lower ourt de lared orre t t#e nonappli ation o" t#e li-ited liabilit' under t#e airwa' bill. 1urt#er-ore, t#ere was glaringl' no atte-pt w#atsoe%er on t#e part o" $AL to e+plain t#e ause o" t#e da-age to t#e o%en. *#is onstitutes gross arelessness and negligen e w#i # itsel" (usti"ies t#e award o" da-ages. Branting that the airway bill is a contract of adhesion, it has been ruled that such contracts are not entirely prohibited and are in fact binding regardless of 9:; the respondent has read the provisions thereof. *#e stri t interpretation o" a ontra t o" ad#esion against t#e dra"ter is due to t#e pe uliarit' o" t#e transa tion w#erein one part', nor-all' a orporation, dra"ts all t#e pro%isions o" t#e ontra t wit#out an' parti ipation on t#e part o" t#e ot#er part' ot#er t#an t#e a""i+-ent o" signature. e%en t#oug# it parta.es o" t#e nature o" a ontra t o" ad#esion and su # -ust be onstrued stri tl' against t#e part' w#i dra"ted t#e sa-e or ga%e an' rise to an' a-biguit' t#erein, it s#ould be borne in -ind t#at a ontra t o" ad#esion -a' be stru . down as %oid and unen"or eable, "or being sub%ersi%e o" publi poli ', only when the wea,er party is imposed upon dealing with the dominant bargaining party and is reduced to the alternative of ta,ing or leaving it, completely deprived of the opportunity to bargain on e1ual footing. !his means that if a party to an adhesion contract is at the very least, on e1ual footing with the other party, and he is totally free to re"ect the same, his assent to the terms and conditions of the contract can not be considered as offensive to public policy. /weet Lines %s *e%es8 it is #ardl' (ust and proper to e+pe t t#e passengers to e+a-ine t#eir ti .ets re ei%ed "ro- rowded ounters "or onditions t#at -a' be printed t#ereon, -u # less #arge t#e- wit# #a%ing onsented to t#e onditions, so printed espe iall' i" t#ere are a nu-ber o" su # onditions in "ine print as in t#is ase. $assengers o" inter-island %essels do not #a%e t#e sa-e #an e, sin e t#eir alleged ad#esion is presu-ed onl' "rot#e "a t t#at t#e' pur #ased t#e passage ti .ets. 2t s#ould also be stressed t#at s#ipping o-panies possess are %irtual -onopol' lea%ing passengers wit# no #oi e but to bu' t#eir ti .ets and a%ail i" t#eir %essels and "a ilities. 1inall', passengers w#o board t#ese inter-island %essels o-e "ro- t#e low-in o-e
19
group and are less literate and w#o #a%e little or no #oi e but to a%ail o" petitionerRs %essels. 4. /pe ial 0ontra ts *#ere are spe ial t'pes o" ontra ts wit# spe ial #ara teristi s w#i # are go%erned b' spe i"i rules. sales or barter o" goods le+ situs loan granted b' "inan ial institutions law o" t#e per-anent pla e o" business loan granted b' pri%ate indi%idual or sub(e t -atter o" loan is personal law o" t#e pla e w#ere t#e loan was obtained pledge, #attel -ortgage and anti #resis le+ situs (arriage of Boods by =ea A-eri an $resident Lines %s Mlepper Mlepper s#ipped on board $resident 0le%eland in Bapan a li"t ontaining personal and #ouse#old e""e ts, under a bill o" lading. ,#en it arri%ed in a7anila, w#ile t#e li"t %an was being unloaded, it "ell on t#e rane and t#e ontents were spilled and s attered. Mlepper "iled "or da-ages. 012 7anila ordered t#e s#ipping o-pan' to pa'. A-eri an $resident Lines now ontends t#at its liabilit' annot e+ eed Y500 in%o.ing in its "a%or t#e bill o" lading and 0:C/. )eld8 ,it# regard to t#e ontention t#at t#e 0:</ s#ould also ontrol t#e ase, su # is o" no -o-ent. Art. 1753 pro%ides t#at t#e law o" t#e ountr' to w#i # t#e goods are to be transported s#all go%ern t#e liabilit' o" t#e o--on arrier in ase o" loss or destru tion. *#is -eans t#at t#e laws o" t#e $#il. s#ould appl'. *#ere"ore, alt#oug# 0:C/ state t#at t#e arrier s#all not be liable "or -ore t#an Y500 unless t#e %alue o" t#e goods #as been inserted, it is onl' />$$L;*:&F to t#e pro%isions o" t#e 0i%il 0ode. :n t#e strengt# o" t#is opinion, t#e ourt is onstrained to rule t#at t#e liabilit' o" t#e arrier wit# regard to t#e da-age o" t#e goods s#ould onl' be li-ited to Y500. (ontracts of Air !ransportation o-parati%el' a new sub(e t in 0on"li t o" Laws in order to regulate and establis# uni"or- rules and regulations on t#e liabilit' o" international airline arriers in ases o" deat#, in(uries o" passengers or loss or da-age o" argo, t#e ,arsaw 0on%ention was on luded *#e 0on%ention applies to all international transportation o" persons, baggage or goods pwe"or-ed b' air ra"t "or #ire, enu-erates instan es w#en liable and "i+es t#e -a+i-u- a-ount o" da-ages to be in luded in ea # ase6 arrier and passenger -a' agree b' spe ial ontra t to a #ig#er ontent o" t#e liabilit' "or loss or da-age. 7ost o" t#e ases de ided b' t#e /0 in%ol%ing international air transportation were due to -ali e, bad "ait#, dis ri-inator' a ts or ot#erwise i-proper ondu t o" its e-plo'ees. 2n said ases, t#e /0 de lined to appl' t#e ,arsaw 0on%ention Lope! %s $anA-
/en. Lope! and #is "a-il' "ailed to get 1st lass seats and were -ade to board as tourist passengers, despite se%eral on"ir-ations. 012 awarded da-ages. $an A- ad-itted brea # o" ontra t, but not t#e "inding o" bad "ait#. )eld8 $anA- an elled t#e plainti""Rs reser%ations b' -ista(e and t#erea"ter, deliberatel' and intentionall' wit##eld su # "a t "rot#e plainti"". *#e plainti""s were -islead into pur #asing "irst lass ti .ets w#en in "a t, t#ere was none. 2n legal onte-plation, su # ondu t alread' a-ounts to bad "ait# breas# o" a .nown dut' t#roug# so-e motive of interest or ill will. At an' rate, all t#e -ista.es ad%an ed b' t#e de"endant, t#ere would at least be negligen e so gross and re .less as to a-ount to -ali e or bad "ait#. ML7 &o'al <ut # Airlines %s 0A /pouses 7endo!a went on a world tour wit# t#eir daug#ter and nie e. ML7 issued ti .ets "or t#e w#ole trip. A"ter sig#tseeing in A-eri an and ;uropean ities t#e' obtained a on"ir-ation "roAer Lingus t#roug# t#e #elp o" ML7. :n t#eir wa' to Lourdes, upon #e .ing in at t#e Aar elona airport, onl' t#e 'oung wards were allowed to ta.e t#e plane. *#e spouses were o""-loaded b' t#e -anager in an in#u-ane -anner. *#e' "iled an a tion "or da-ages "or brea # o" ontra t o" arriage and "or t#e #u-iliating treat-ent t#e' re ei%ed. ML7 alleges t#at under Art. 30 o" t#e ,arsaw on%ention, in ases w#ere t#ere are %arious su essi%e arriers, ea # arrier w#o a epts passengers s#all be sub(e t to t#e rules o" t#e on%ention and t#at onl' t#e arrier w#o per"or-ed t#e transportation is liable in ases o" a ident or dela'. )eld8 Art. 30 o" t#e ,arsaw on%ention not appli able. *#e arti le presupposes t#e o urren e o" an a ident or dela', neit#er o" w#i # too. pla e at t#e Aar elona Airport. *#e argu-ent t#at ML7 s#ould not be #eld a ountable "or t#e tortuous ondu t o" Aer Lingus is una eptable. *#e ondition was printed in letters so s-all t#at one would #a%e to use a -agni"'ing glass to read t#e words. As t#e airline w#i # issued t#e ti .ets wit# t#e .nowledge t#at t#e respondents would be "lown on t#e %arious legs o" t#eir (ourne' b' di""erent air arriers, t#e ML7 is #argeable wit# t#e dut' o" spe i"i all' in"or-ing t#e respondents o" t#e onditions pres ribed in t#e ti .ets or to as ertain t#at t#e respondents read t#e- be"ore t#e' a epted t#e passage ti .ets. =o e""ort was e+erted b' ML7. 7oreo%er, t#e passage ti .ets to be per"or-ed b' su essi%e arriers is to be regarded as a single operation rat#er t#an a series o" independent ontra ts. *#e spouses dealt e+ lusi%el' wit# ML7. *#e brea # was e%en aggra%ated b' t#e dis ourteous and #ig#l' arbitrar' ondu t o" an o""i ial o" t#e Aer Lingus. /antos 222 %s =ort#west :rient Airlines /antos boug#t a roundtrip ti .et "ro- =ort#west airlines in its o""i e in /an 1ran is o. 3/1-7anila %ia *o.'o-/14. ,#en #e #e .ed in at t#e ounter in t#e /1 airport, despite pre%ious on"ir-ation, #e was in"or-ed t#at #e #ad no reser%ation "or #is "lig#t "ro- *o.'o to 7anila. /antos sued =ort#west "or da-ages in t#e $#il. =ort#west -o%ed to dis-iss "or la . o" (urisdi tion. )eld8 $#il. ourt no (urisdi tion. >nder Art. 28 o" t#e ,arsaw on%ention, t#e pla es w#ere t#e a tion -ust be "iled are8 1. <o-i ile S w#i # is t#e pla e o" in orporation o" t#e o-pan'6 in t#is ase, 7inessota 2. $rin ipal pla e o" business S 7innesota 3. $la e o" business w#ere t#e ontra t is -ade S /1 4.
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$la e o" destination S w#i # is t#e ulti-ate destination6 t#us /1
t#is is a -atter o" (urisdi tion and not %enue, w#i # ould not be wai%ed b' t#e de"endant w#en it "ailed to interpose ti-el' ob(e tion 1. Appli able law in t#e absen e o" an e""e ti%e #oi e &estate-ent 2nd Law Co%erning in Absen e o" e""e ti%e #oi e. 2n t#e absen e o" an e""e ti%e #oi e o" law b' t#e parties, onsideration will be gi en to t#e "ollowing "a tors in deter-ining t#e state wit# w#i # t#e ontra t #as its -ost signi"i ant relations#ip. 1. $la e o" ontra ting 2. $la e o" negotiating 3. $la e o" per"or-an e 4. /itus o" t#e sub(e t--atter o" t#e ontra t 5. $artiesR do-i ile, residen e, nationalit', pla e o" in orporation, pla e o" business 6. $la e under w#ose lo al law t#e ontra t will be -ost e""e ti%e in #oi e o" alw de isions in on"li ts ontra ts ases, t#e &estate-ent 2nd dire ts t#e "oruourt to single out t#e state o" t#e -ost signi"i ant relations#ip wit# t#e ontra t as a w#ole or wit# a spe i"i issue arising t#ere"ro-. *#e ourt s#ould t#ere"ore lo ali!e t#e ontra t b' e+a-ining t#e "a tual onta ts t#at it #as wit# t#e on erned state relati%e to t#eir ogen ' to t#e issue. 2n t#e absen e o" an e""e ti%e #oi e o" law, ourts appl'ing a poli ' entered approa # will appl' its own law w#en t#ere are signi"i ant onta ts wit# t#e transa tion. :n e t#ese e+ist, t#e "oru- #as a real interest in appl'ing its own law and su # would not be "unda-entall' un"air to t#e parties. *#e ourt s#ould also onsider t#e legiti-ate e+pe tations o" t#e parties.
C. Li-itations to 0#oi e o" Law generall', parties -a' not sele t a law to go%ern t#eir ontra t i" said law sele ted #as no onne tion at all wit# t#e transa tion or t#e parties i" t#e law sele ted s#ould #ange, t#e law as #anged will go%ern6 e+ ept i" t#e #ange is so re%olutionar' t#at it was ne%er onte-plated b' t#e parties. 2n su # ase, t#e law originall' intended s#all go%ern $#il. laws annot be rendered illusor' b' t#e parties agreeing on so-e ot#er laws to go%ern t#eir relations#ip. 0ounterbalan ing t#e prin iple o" autono-' o" parties to ontra t is t#e e9uall' general rile t#at pro%isions o" appli able law, esp. t#ose a""e ted wit# publi poli ', are dee-ed written into t#e ontra t. /tated di""erentl', t#e go%erning prin iple is t#at parties -a' not ontra t awa' appli able pro%isions o" law espe iall' pere-ptor' pro%isions #ea%il' i-pressed wit# publi interest. Anot#er e+a-ple8 use o" 0:C=2I2* 0LA>/;/ or on"ession o" (udg-ent lause S #eld %alid onl' i" t#e parties were o" e9ual bargaining power and t#e debtor agreed to it %oluntaril' and wit# ogs.
I22. $&:AL;7 :1 &;=I:2 A. E')7)5)67 Ren*oi is a proce+ure where&- a 2ural matter presente+ is referre+ &- the conflict of laws rules of the forum to a forei.n
state/ the conflict of laws rule of which/ in turn refers the matter &acJ to the law of the forum C.:AR)69" <A;" 6' RE7:6) 1.Re2ect the Ren*oi 0on"li t &ules o" t#e "oruourt re"er t#e ase onl' to t#e 2=*;&=AL LA, o" anot#er state. 2nternal Law o" t#e "oreign state is applied b' t#e "oruourt. )as t#e sa-e e""e t as <ouble &en%oi Attains #ar-on' o" de isions Aut t#is wor.s onl' i" t#e ot#er state also adopts double ren%oi. :t#erwise, t#ere would be no end to t#e ase 3re%ol%ing door, ga-e o" lawn tennis, ir ulus ine+trabilis4. EAL)7? <)5> 5>E PR6CLE= 6'
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A ording to 1ren # law, t#e law appli able in #er ase is t#e law o" #er nationalit' w#i # is Aritis# law, w#i # re"ers t#e 9uestion ba . to 1ren # law and t#e 1ren # rule is t#at t#e ad-inistration o" t#e -o%able o" a "oreigner w#o a ording to t#e law o" #is ountr' is do-i iled in 1ran e and w#ose propert' -ust a ording to t#at law be applied in a ordan e wit# t#e law o" t#e ountr' in w#i # #e was do-i iled, will appl' 1ren # -uni ipal law, e%en i" t#e de eased #as not o-plied wit# t#e 1ren # rule on a 9uisition o" do-i ile. Aritis# law pro%ides t#at t#e "a t o" residen e in 1ran e oupled wit# ani-us -anendi s#owed #er intention to abandon #er ;nglis# do-i ile e%en wit#out t#e "or-alities o" 1ren # law "or a 9uiring do-i ile. C.9"E'9L7E"" 6' RE7:6) A*oi+ un2ust results >=2I;&/2*F :1 0)20AC: I <A*;& 319364 1A0*/8 7r. $ri e and 7r. <ater obtained a loan se ured b' -ortgage, t#eir wi%es were in luded as partied in t#e trust -ortgage . ,#en 7r. $ri e, t#e >ni%ersit' sued /ps. <ater and 7rs $ri e, t#e ourt ruled t#ere was no ause o" a tion against 7rs.$ri e be ause under 7i #igan law a -arried wo-an annot enter into obligations li.e t#is #en e t#e trust -ortgage was %oid. 2//>;8 ,#at is t#e appli able law );L<8 7i #igan law is appli able. *#e ase is go%erned b' eit#er 2llinois or 7i #igan law. Assu-ing t#at b' 7i #igan law o" t#e "oru2llinois law is appli able, t#en t#e ase is go%erned b' 7i #igan law be ause 2llinois on"li ts o" law rule set "ort# in 2urr v 2ec,ler pro%ides t#at 7i #igan law is appli able in su # situations. 7AP ;:!7=$ 2y accepting renvoi , Michigan protected the interests of a Michigan wife since #llinois disclaimed any desire in applying its law. Promoted uniformity of results inspite of discrepancies in the choice of law of the involved states. :b"ections to envoi !he universal application of the doctrine would place the court in a perpetually enclosed circle from which it would never emerge and that it would never find a suitable body of substantive rules to apply to a particular case envoi is wor,able only if one of the states re"ects it Achieves harmony of decisions only if the states concerned do not agree on applying it the same way on applying it the same way. ?7A; B #=9:@?$ this is based on a false premise because for as long as remission is to the state8s #;!7 ;A@ @A9 alone there will be a stop to the endless chain of reference which in fact is an extremely rare apparition. (ourts may be un
2. Accept the Ren*oi 0on"li t &ules o" t#e "oruourt re"er t#e ase to t#e w#ole law o" anot#er state[to bot# t#e 2=*;&=AL LA, and 0:=1L20* &>L;/ o" anot#er state. *#is in ludes t#e #oi e-o"-law rules appli able in -ulti-state ases. 2nternal Law o" t#e "oruourt or a t#ird state is applied. )as t#e sa-e e""e t as appl'ing /ingle &en%oi AD7AR : ?ARC)A (13!3) 1A0*/8 ;dward 0#ristensen a 0ali"ornia iti!en at t#e ti-e o" deat# disposed #is all #is properties b' will ,)elen,#is a .nowledged natural #ild opposed t#e pro(e t partition as it depri%es #er o" #er legiti-e. 2//>;8 ,:= $#il law s#ould appl' );L<8 $#ilippine Law s#ould appl'. A16 o" t#e $#ilippine 0i%il 0ode pro%ides t#at t#e national law o" t#e de edent go%erns t#e %alidit' o" #is testa-entar' dispositions, t#e national law o" ;dward is 0ali"ornia Law w#i # on"li t o" law rule re"ers ba . t#e ase to t#e law o" t#e de edentRs do-i ile w#i # is t#e $#ilippines "or t#is ase. *#e $#ilippine ourt a epted t#e ren%oi and applied its law. 3 . esistance or =utual isclaimer *#e sa-e result as t#e a eptan e o" ren%oi but t#e pro ess used b' t#e "oruourt is to desist appl'ing t#e "oreign law. 2nternal Law o" t#e "oruourt or a t#ird state is applied. 4. 'orei.n Court 5heor*#e "oruourt would assu-e t#e sa-e position t#e "oreign ourt would ta.e were it litigated in t#e "oreign state. A==;/L;F, <AI2</:= I A==;/L;F 319264 1A0*/8 *estatri+ died in 1ran e, a ording to ;nglis# law s#e was do-i iled in 1ran e but not a ording to 1ren # law "or not o-pl'ing wit# t#e 1ren # i%il ode. /#e -ade. /#e -ade an ;nglis# will w#ere s#e ga%e all #er propert' to #er daug#ter, and stipulated t#at s#e did not want to abandon ;ngland as #er do-i ile. 2//>;8 ,:= s#e ould ,b' will, gi%e all #er propert' to #er daug#ter31ren # law 1G3 disposable4 );L<8 =o./#e was a 1ren # <o-i ialiar'.
#napplicability of envoi in a False (onflict 1AL/; 0:=1L20* $1A> I *&;=* AL>72=>7 0:. 1A0*/8
/te%en $"au 30onne ti ut do-i iliar'4 and Aru e *rent 3=ew Berse' do-i iliar'4 bot# students o" $arsons 0ollege in 2owa agreed to dri%e toget#er to 0olu-bia in a ar owned b' *rent Alu-inu- 0o-pan' 3=ew Berse' 0orp4. ,#ile still in 2owa, Aru e "ailed to negotiate a ur%e and ollided wit# anot#er ar, $"au was in(ured.
22
2//>;8 );L<8 0ase was re-anded "or parties to pro%e pertinent *e+as law. *#e 9uestion o" w#at is t#e appli able law o" *e+as is one o" "a t and not o" law. 1oreign law annot be ta.en (udi ial noti e o" and -ust be pro%en li.e an' ot#er "a t. 2= &;8 ;/*A*; :1 B:)=/:= 319184 1A0*/8 ;-il Bo#nson, >/ iti!en died in 7anila lea%ing a #olograp#i will w#i # was signed b' two instead o" t#ree witnesses re9uired b' se 618 o" t#e ode o" 0i%il $ro edure. *#e will was ad-itted to probate pursuant to /e 636 o" t#e 0ode o" 0i%il $ro edure on t#e ground t#at t#e will was in a ord wit# t#e law o" t#e state o" 2llinois o" w#i # Bo#nson was at t#e ti-e #is deat# a iti!en o" );L<8 *rial (udge s#ould not #a%e ta.en (udi ial noti e o" 2llinois law. 7ffects of Failure to Plead and Prove Foreign @aw !he forum court has three alternatives &. ?ismiss the case for inability to establish a cause of action -raditiona a))roa'& burden of introducing proof of the contents of the foreign law rests upon the party relying on the foreign law forum court upon proof would enforce a right existing under that foreign law failure to prove its content is failure to establish a prima facie case
2//>;8 ,:= 2owa guest statute is appli able to $"auRs A tion );L<8 *#e ase presents a "alse on"li t. 0onne ti ut and =ew Berse' substanti%e law are in a ord in as -u # as 0onne ti ut #as repealed its guest statute6 =ew Berse' Law allows guest passenger suits. ,#ile t#e #oi e o" law rule o" 0onne ti ut ad#eres to le+ lo i deli ti and 2owa w#i # #as a guest statute t#e ourt #eld t#at 2owa #as no interest in t#is litigation. *#ere is no reason "or appl'ing t#e #oi e o" law rule o" 0onne ti ut be ause it will "rustrate t#e %er' goals o" go%ern-ental-interest anal'sis, Le+ lo i deli tiRs goal is uni"or-it' and si-pli it' and does not relate to a stateRs interest in #a%ing its law applied to gi%en issues in a tort ase. A;LL2/ I A;LL2/ 319684 1A0*/8 Aellis , a iti!en and do-i iliar' o" *e+as ,in #is will pro%ided t#at #is t#ree illegiti-ate #ildren in t#e $#ilippines were to re ei%e 40M $esos ea # and t#e re-ainder o" #is estate s#all go to #is legiti-ate #ildren. 2llegiti-ate #ildren opposed t#e pro(e t partition be ause it i-pairs t#eir legiti-e. 2//>;8 );L<8 3:n ren%oi4 t#ere is no &en%oi in t#is ase be ause t#e testator was bot# a iti!en and do-i iliar' o" *e+as. *#ere ould #a%e been ren%oi it t#e on"li ts o" laws rules o" *e+as pro%ided "or le+ rei sitae but t#e appli able on"li ts rules o" *e+as #as not been pleaded and pro%en, #en e, still no ren%oi. I222. =:*20; A=< $&::1 :1 1:&;2C= LA, A. EA5E75 6' B9 )C)AL 765)CE )n the Phils/the 2u+.e is cannot taJe 2u+icial notice of a forei.n law thus/ the part- whose cause of action or +efense +epen+e+ upon the forei.n law has the &ur+en of pro*in. the forei.n law. ?elgado v epublic L"udicial notice may be ta,en of a foreign law with which the court is evidently familiarH #n <=, the full faith and credit clause allows courts to ta,e "udicial ,nowledge of the law of sister states. PR66' 6' '6RE)?7 LA< 6fficial pu&lication of the lawN or A cop- of the law atteste+ &- the officer ha*in. custo+- of the recor+/ or &- his +eput-. )f such recor+ is not Jept in the Philippines/ it must &e accompanie+ with a certificate that such officer has the custo+-.
,AL*:= I A&AA2A= A7;&20A= :2L 319564 1A0*/8 ,alton 3Ar.ansas iti!en4 is suing Arabian A-eri an :il a <elaware 0orporation "or tort w#i # o urred in /audi Arabia. Aot# $lainti"" and <e"endant did not plead /audi Arabian law nor at t#e trial o""er to pro%e it. =ew For. law is t#at t#e substanti%e law appli able to tort is t#e law o" t#e pla e w#ere t#e alleged tort o urred *#e ourt ruled in "a%or o" t#e <e"endant 2//>;8 );L<8 1oreign law is a "a t t#at -ust be pro%ed, and t#e burden rests on t#e plainti"" w#o relies on t#e "oreign law "or #is ause o" a tion, #en e t#e "ailure to plead and pro%e *. !o apply the law of the forum !he basic law is the law of the forum and when foreign law is not proved then there is no reason to displace the basic law
C.
L;A&F I CL;<)2LL 319514 1A0*/8 2n t#is ase Lear' see.s to re o%er "ro- Cled#ill -one' #e loaned to t#e latter in 1ran e. Cled#ill -o%ed to dis-iss on ground t#at t#ere was no pro-ise to pa', no de-and "or repa'-ent and t#at Lear' "ailed to plead and pro%e law o" 1ran e w#ere t#e transa tion o urred. 2//>;8
$02A I ;/0:L2= 319744 1A0*/8 *#is ase between t#e ad-inistrators o" 7r. and 7rs. )odges regarding t#e a-ount o" t#e estate o" 7rs. )odges 3w#o died "irst4 in relation to t#e on(ugal partners#ip and t#e legiti-e o" 7r. )odges in t#e estate o" #is wi"e w#o was a *e+as iti!en.
,:= Lear' annot re o%er "or "ailure to plead and pro%e 1ren # law );L<8 Lear' an re o%er. *#ree presu-ptions -a' be indulged in 1. *#at t#e law o" 1ran e is t#e sa-e as t#e law o" t#e "oru2. *#at t#e law o" 1ran e li.e all i%ili!ed ountries re ogni!e ertain "unda-ental prin iples su # as t#at t#e ta.ing o" a loan reates an obligation to pa' 3. A' "ailing to pro%e 1ren # law, parties a 9uies e to appl' "oru- law *#e ourt used t#e t#ird presu-ption be ause it does not present an' su # di""i ulties "or it -a' be uni%ersall' applied regardless o" t#e ontro%ers'. VALA7;A I 0A 319934 02& I 12/);& 319614 1A0*/8 Vala-eaRs are suing *ransworld Airlines, 2n . "or -oral da-ages be ause t#e' were bu-ped o"" t#eir "lig#t due to o%erboo.ing. &*0 ruled in t#eir "a%or, 0A re%ersed and #eld t#at -oral da-ages are re o%erable onl' w#ere t#ere is "raud or bad "ait# and sin e it is a -atter o" re ord t#at o%erboo.ing o" "lig#ts is n a epted pra ti e o" >/ airlines, no "raud or bad "ait# ould be i-puted to *rans,orld Airlines. 2//>;8 );L<8 1oreign laws do not pro%e t#e-sel%es nor an t#e ourts ta.e (udi ial noti e o" t#e-. Li.e an' ot#er "a t, t#e' -ust be alleged and pro%en. ,ritten law -a' be e%iden ed b' an o""i ial publi ation t#ereo" or b' a op' attested b' t#e o""i ers #a%ing legal ustod' o" t#e re ord, or b' #is deput', and a o-panied wit# a erti"i ate t#at su # o""i er #as ustod'. *#e erti"i ate -a' be -ade b' a se retar' o" an e-bass' or legation, onsul general, onsul, %i e onsul, or onsular agent or b' an' o""i er in t#e "oreign ser%i e o" t#e $#ilippines stationed in t#e "oreign ountr' in w#i # t#e re ord is .ept, and aut#enti ated b' t#e seal o" #is o""i e. -. !o assume that the foreign law is the same as the law of the forum Processual presumption or presumed-identity approach
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*#e -ost signi"i ant relations#ip t#eor' or disingenuous #ara teri!ation would #a%e led to t#e sa-e on lusion />=*AF I />=*AF 319524 1A0*/8 Bose /unta' 31ilipino4 died in A-o', 0#ina, #is #ild "ro- #is se ond -arriage see.s t#e probate o" #is will w#i # #e alleges to #a%e been "iled, probated and allowed in t#e A-o' distri t ourt, t#e ourt disallowed. 2//>;8 );L<8 2n t#e absen e o" proo" t#at t#e -uni ipal distri t ourt o" A-o' is a probate ourt and on t#e 0#inese law o" pro edure in probate -atters, it -a' be presu-ed t#at t#e pro eedings in t#e -atter o" probating or allowing a will in t#e 0#inese ourts are t#e sa-e as t#osepro%ided "or in our laws on t#e sub(e t.
1A0*/8 7r. /te%enson died lea%ing a will instituting #is wi"e as #is sole #eiress. 0olle tor is assessing in#eritan e ta+ on t#e w#ole o" t#e estate, be ause under Aritis# law all t#e properties were owned b' t#e #usband t#us passes to t#e wi"e t#ru in#eritan e. 2//>;8 ,:= Aritis# law is appli able );L<8 =o. Aritis# law annot be applied in t#e absen e o" proo" o" w#at Aritis# law is. 2n t#e absen e o" proo", "oreign laws are presu-ed to be t#e sa-e as t#ose o" t#e $#ilippines. $ro essual presu-ption A:A&< :1 0:772//2:=;&/ I <;LA &:/A 319914 1A0*/8 Aoard is see.ing to deport Cat #alian, w#o t#e board is lai-ing to be an alien sin e t#e -arriage o" #is 1ilipino grand"at#er and 0#inese Crand-ot#er were not pro%en, #en e #is "at#er is 0#inese and sin e #is -ot#er is 0#inese #e is 0#inese . *o be %alid in t#e $#ils it -ust pro%en t#at t#e -arriage was %alid in 0#ina. 2//>;8 );L<8 2n t#e absen e o" e%iden e, "oreign law is presu-ed to be t#e sa-e as $#ilippine law. *#e $#ilippines ad#ere to t#e presu-ption o" %alidit' o" -arriage and #e w#o lai-s t#e in%alidit' o" -arriage #as t#e burden o" pro%ing t#e sa-e. EAP 7otes, 1a tors to onsider w#en de iding w#et#er to appl' do-esti law or de ide t#e ase against t#e part' w#o #as t#e burden o" pro%ing t#e ontents o" t#e "oreign law. 1. <egree o" publi interest in%ol%ed 2. A essibilit' o" "oreign law -aterials to t#e parties 3. $ossibilit' t#at plainti"" is -erel' "oru- s#opping 4. /i-ilarities between "oru- law and "oreign law on t#e issue in%ol%ed !his will not li,ely result in the application of forum law except in cases involving marriage and family relations C. EACEP5)67" 56 5>E APPL)CA5)67 6' '6RE)?7 LA< 1. 0ontrar' to an 2-portant $ubli $oli ' o" t#e 1oru-
7202A=: I A&27: 319244 1A0*/8 *#e brot#er o" *ur.is# testator opposed t#e s #e-e o" partition o" t#e estate o" t#e de eased w#i # is not in a ord wit# *ur.is# law 3national law o" testator4 #en e %oid "or %iolating t#e i%il ode w#i # pro%ides t#at legal and testa-entar' su ession Ls#all be regulated b' t#e national law o" t#e person w#ose su ession is in 9uestion. )owe%er, #e "ailed to pro%e *ur.is# law 2//>;8 );L<8 2n t#e absen e o" e%iden e on su # laws, t#e' are presu-ed to be t#e sa-e as t#ose o" t#e $#ilippines. *#e ourt applied pro essual presu-ption but #eld in t#e sa-e breadt# t#at t#e testatorRs e+press wis# t#at $#ilippine law be applied was %oid "or being ontrar' to law. EAP 7otes,
$AM2/*A= 2=*RL A2&L2=;/ I :$L; 319904 1A0*/8 $a.istan 2nternational Airlines e+e uted in 7anila 2 separate ontra ts o" e-plo'-ent w#i # pro%ided t#at $2A reser%es t#e rig#t to ter-inate t#e agree-ent at an'ti-e b' gi%ing t#e ;; noti e in writing 1 -ont# be"ore t#e intended date o" ter-ination and t#at t#e go%erning law s#all be t#e laws o" $a.istan and %enue "or a tions is Mara #i ourts. $2A ter-inated t#e e-plo'-ent o" t#e 2 1ilipinas w#o "iled o-plaint "or illegal dis-issal. 2//>;8 ,:= $a.istani law is t#e go%erning law );L<8 1. $ubli $oli '8 =o. *#is ontra tual pro%ision annot be in%o.ed to pre%ent t#e appli ation o" $#ilippine labor laws and regulations to t#e sub(e t -atter o" t#is ase.;;-;& relations#ip is -u # a""e ted wit# publi interest and t#at t#e ot#erwise appli able $#ilippine laws and regulations annot be rendered illusor' b' t#e parties b' agreeing upon so-e ot#er law to go%ern t#eir relations#ip. 2. /ubstanti%e 0onta tsG7ost signi"i ant relations#ip. Mara #i ourts annot be t#e sole %enue "or t#e settle-ent o" disputes. 0ontra t e+e uted and per"or-ed in t#e $#ilippines, $etitioner is a orp. doing business in t#e $#ils and pri%ate respondents are iti!ens. 3. $2A did not pro%e $a.istani law, t#us it is presu-ed to be t#e sa-e as $#ilippine law o
24
Law-a.ers onsider t#e p#'si al and -oral 9ualities o" t#e iti!ens so, logi all', laws s#ould appl' to t#ese iti!ens w#ere%er t#e' are. 2ndi%idualRs nationalit' is easil' %eri"iable "rodo u-ents.
<e-erits o" =ationalit' as $ersonal Law o <oes not sol%e proble-s relating to stateless people and t#ose wit# -ultiple nationalities. o =o solutions o""ered to states wit# di%erse legal s'ste-s su # as t#e >/ sin e t#ere is no single national law. o A personRs ties to #is nation -a' be attenuated i" #e #as li%ed in anot#er ountr' "or -ost #is li"e. 2-portan e o" =ationalit' o =ationalit' or iti!ens#ip regulates #is8 0i%il status 0apa it' 0ondition 1a-il' rig#ts and duties Laws on su ession 0apa it' to su eed o =ationalit' prin iple e+pressed in Art. 15 o" t#e =00 w#i # -a.es laws relating to "a-il' rig#ts and duties, status, ondition and apa it' o" persons binding upon 1ilipino iti!ens w#ere%er t#e' -a' be.
;A$ =otes8 2. ,#en $ro edural in =ature 3. 2ssues are related to $ropert' 3Le+ /itus4 4. 2ssue 2n%ol%ed in t#e ;n"or e-ent o" 1oreign 0lai- is 1is al or Ad-inistrati%e 5. 0ontrar' to Cood 7orals 30ontra Aonos 7ores4 6. >ndeniable 2n(usti e to 0iti!ens o" t#e 1oru7. ,#en $enal in 0#ara ter 8. ;ndanger Iital 2nterests o" t#e /tate PAR5 5>REE 8 PER"67AL LA< 2D. =A*2:=AL2*F A. )=P6R5A7CE 6' A PER"67AL LA< $ersonal law ser%es as a per-anent onne tion between t#e indi%idual and t#e state. $ersonal law allows ourts to e+er ise (urisdi tion or deter-ine t#e go%erning #oi e-o"-law rule on a spe i"i situation or transa tion. $ersonal law "ollows t#e person w#ere%er #e goes and go%erns transa tions w#i # a""e t #i- t#e -ost su # as -arriage, di%or e, legiti-a ' and apa it' to ontra t. 7erits o" =ationalit' as $ersonal Law o *#e laws o" ea # state were presu-ed to be -ade "or an as ertained population. C.
E5ER=)7A5)67 6' 7A5)67AL)5; )ague 0on%ention on 0on"li t o" =ational Laws8 2t is "or ea # state to deter-ine w#o are its nationals. *#is law s#all be re ogni!ed b' ot#er /tates inso"ar as it is onsistent wit# international on%ention, international usto-s and t#e prin iples o" law generall' re ogni!ed wit# regard to nationalit'. Arti le 4 o" t#e 0onstitution enu-erates w#o are 1ilipino iti!ens8 o 0iti!ens o" t#e $#ilippines at t#e ti-e o" adoption o" 0onstitution o 1at#ers or -ot#ers are iti!ens o" t#e $#ilippines o Aorn be"ore Banuar' 17, 1973 o" 1ilipino -ot#ers w#o ele t 1ilipino iti!ens#ip upon rea #ing t#e age o" -a(orit' o =aturali!ed a ording to law
1. =atural-born 0iti!ens 0iti!ens o" t#e $#ilippines wit#out #a%ing to per"oran' a t to a 9uire iti!ens#ip ;it#er appl' (us sanguinis 3rule o" des ent or blood4 or (us soli 3law o" pla e o" oneRs birt#4. Bus soli is "ollowed in -an' ountries. $#ilippine 0onstitution applies t#e (us sanguinis prin iple. (o vs. 7lectoral !ribunal$ :ng did not #a%e to "or-all' ele t iti!ens#ip be ause #e was a natural-born iti!en, #is -ot#er being 1ilipino and #is -ot#er was naturali!ed w#en :ng was still a -inor.
Aznar vs. (:M7@7(8 /0 ruled t#at pri%ate respondent was a t#e son o" a 1ilipino "at#er, t#e burden was in u-bent upon petitioner to pro%e t#at t#e "or-er #ad lost #is $#ilippine iti!ens#ip. *ALA&:0 I >F 319524 a. "ummar>' de"eated *alaro and was ele ted -a'or. *alaro "iled a petition "or 9uo warranto be ause >' was 0#inese and t#ere"ore ineligible. *#e petition was granted. >' argues #is "at#er was a /panis# sub(e t and #is -ot#er was 1ilipino. A"ter #is -ot#er was widowed, s#e rea 9uired #er 1ilipino iti!ens#ip and is 1ilipino b' t#e -ere "a t o" #is birt#. )ssue ,:= >' is 1ilipino >el+ F;/ :ng "ollowed #is -ot#erRs 1ilipino iti!ens#ip w#o rea 9uired #er 1ilipino iti!ens#ip a"ter t#e deat# o" #er #usband. A ording to t#e &oa ase, a 1ilipino wo-an re%erts to #er 1ilipino iti!ens#ip upon #er #usbandRs de-ise and t#erea"ter #er -inor #ildrenRs nationalit' auto-ati all' "ollowed t#at o" t#eir -ot#er be ause s#e was t#eir natural guardian, pro%ided t#at t#e' -a' ele t "or t#e-sel%es t#eir nationalit' upon rea #ing t#e age o" -a(orit'. *#is rule was not #anged b' t#e adoption o" t#e (us sanguinis do trine. 0: I ;L;0*:&AL *&2A>=AL :1 *); )& 319914 "ummar:ng *e was t#e grand"at#er o" pri%ate respondent Bose :ng Br. :ng *e was "ro- 0#ina and settled in /a-ar wit# #is son Bose, /r. w#o was born in 0#ina. Bose /r. e%entuall' -arried a 1ilipina. Bose /r. was naturali!ed w#en Bose Br. was 9 'ears old. Bose Br. -arried a 1ilipina and was registered as a %oter in /a-ar. )e ran "or 0ongress-an and won. Losing andidates "ile ele tion protests on t#e ground t#at :ng, Br. was not a natural-born iti!en o" t#e $#ilippines. )ssue ,:= :ng was a natural-born iti!en >el+ F;/ :ng ould not #a%e as.ed "or iti!ens#ip upon rea #ing t#e age o" -a(orit' be ause #e was born wit# it. )is -ot#er was naturalborn but #is "at#er was naturali!ed. *#ere is not#ing to indi ate t#at :ng did not e-bra e #is $#ilippine #eritage. *#e "iling o" a swor- state-ent is a re9uire-ent "or t#ose w#o need to ele t iti!ens#ip. 1or t#ose alread' 1ilipinos w#en t#e ti-e to ele t a-e up, t#ere are a t o" deliberate #oi e w#i # annot be less binding. $arti ipation in ele tion e+er ises onstitutes a positi%e a t o" ele tion o" 1ilipino iti!ens#ip. 8issent :ng was 0#inese at birt# be ause #is "at#er was 0#inese. 2. 0iti!ens b' =aturali!ation =aturali!ation is b' (udi ial -et#od. 2t on"ers to an alien nationalit' a"ter birt# b' an' o" t#e -eans pro%ided b' law. <uring t#e -artial law period, t#e naturali!ation pro edure was liberali!ed. *#e "iling o" <e laration o" 2ntent and in o-e ta+ re9uire-ents were re-o%ed. . b.
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*#e appli ants needed to s#ow t#at t#e' were able to spea. and write 1ilipino, ;nglis# or /panis# and an' o" t#e prin ipal 1ilipino languages. *#is pro edure is no longer in "or e. Ouali"i ations "or appli ants "or naturali!ation8 At least 21 'ears o" age on t#e date o" #earing o" t#e petition &esided in t#e $#ilippines "or a ontinuous period o" not less t#an 10 'ears $eriod -a' be redu ed to 5 'ears in an' o" t#e "ollowing ases8 Appli ant #as #onorabl' #eld o""i e under t#e Co%ern-ent o" t#e $#ilippines or under an' o" t#e pro%in es ities, -uni ipalities or politi al subdi%isions6 Appli ant #as establis#ed a new industr' or introdu ed a use"ul in%ention in t#e $#ilippines6 7arried to a 1ilipino wo-an ;ngaged as a tea #er in a publi or re ogni!ed pri%ate s #ool not establis#ed "or t#e e+ lusi%e instru tion o" #ildren o" persons o" a parti ular nationalit' or ra e in an' o" t#e bran #es o" t#e edu ation or industr' "or a period o" two 'ears6 Aorn in t#e $#ilippines
:" good -oral #ara ter and belie%es in t#e prin iples underl'ing t#e $#ilippine 0onstitution and -ust #a%e ondu ted #i-sel" in a proper and irreproa #able -anner during t#e entire period o" #is residen e in t#e $#ilippines in #is relations wit# t#e onstituted go%ern-ent as well as wit# t#e o--unit' in w#i # #e is li%ing6 7ust own real estate in t#e $#ilippines wort# not less t#an $5,000 or -ust #a%e so-e lu rati%e trade, pro"ession or law"ul o upation 7ust be able to spea. and write ;nglis# or /panis# and an' o" t#e prin ipal languages. 7ust #a%e enrolled #is -inor #ildren o" s #ool age in an' o" t#e publi s #ools or pri%ate s #ools re ogni!ed b' t#e Aureau o" $ri%ate / #ools w#ere $#ilippine #istor', go%ern-ent and i%i s are taug#t or pres ribed as part o" t#e s #ool urri uluduring t#e entire period o" #is residen e re9uired o" #i- prior to t#e #earing "or naturali!ation.
d.
e. ".
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=inimum 1(4-ear resi+ence reKuirement, is to enable t#e go%ern-ent to obser%e t#e appli antRs ondu t and to ensure t#at #e #as i-bibed t#e prin iples and spirit o" 0onstitution. ?oo+ moral character reKuirement, 7eans t#at t#e appli ant -ust #a%e ondu ted #i-sel" in an irreproa #able -anner. o *#is, a ording to t#e /0, i-poses a #ig#er standard o" -oralit' t#an t#e ter- Tgood -oral odu t.U o o Aeing a law abiding iti!en was inade9uate to pro%e irreproa #able ondu t. ;%iden e o" irreproa #able ondu t #as to be pro%ed b' o-petent e%iden e su # as testi-on' o" two #ara ter witnesses w#o -ust be well-.nown in t#e o--unit' and en(o' a #ig# reputation "or probit' and t#at t#eir word -a' be ta.en on "a e %alue. ;-plo'ees or persons in t#e petitionerRs ser%i e or o" t#e business enterprise #e operates are not o-petent to be attesting witnesses.
Enrollment reKuirement, 0#ildren -ust learn and i-bibe usto-s, traditions and ideals o" 1ilipinos so t#at t#e' will be o-e law abiding iti!ens.
F> M2A= 0)2; I &;$>AL20 319654 "ummarFu petitioned "or naturali!ation. /ol Cen opposed on t#e ground o" "ailure to pro%e lu rati%e sour e o" in o-e. )ssue ,:= Fu #as a lu rati%e sour e o" in o-e >el+ =: )e was onl' re ei%ing $150 as a "i+ed a-ount ea # -ont#. *#e rest was in t#e "or- o" allowan es and bonuses w#i # -a' or -a' not be gi%en to #i-. /u # additional a-ount was purel' ontingent, a idental or in idental w#i # does not o-e up to t#e ategor' o" a lu rati%e in o-e. <is9uali"i ations "or naturali!ation o *#e state #as t#e burden to pro%e t#e dis9uali"i ation o" an appli ant "or $#ilippine iti!ens#ip. 2n se%eral /0 de isions, #owe%er, it #as been #eld t#at t#e petitioner -ust pro%e t#at #e #as none o" t#e dis9uali"i ations. Aut be ause naturali!ation is a pri%ilege and not a rig#t, t#e law -ust be stri tl' onstrued against t#e appli ant. $ossible grounds "or dis9uali"i ation8 0ri-e in%ol%ing -oral turpitude 2" appli ant does not deal wit# and re ei%e 1ilipinos in #is #o-e and %isit 1ilipino #o-es in a spirit o" "riends#ip, "riendliness and e9ualit' wit#out dis ri-ination 2" #is nation does not grant re ipro al rig#ts to 1ilipino iti!ens at ti-e o" #earing #is appli ation
Lucrati*e tra+e/ profession or lawful occupation reKuirement8 -eans substantial gain"ul e-plo'-ent or t#e obtaining o" tangible re eipts. o Appre iable -argin o" in o-e o%er e+penses in order to pro%ide "or ade9uate support "or #i-sel" and #is "a-il' in t#e e%ent o" si .ness, une-plo'-ent or disabilit' to wor. 6wnership of lan+ reKuirement, At odds wit# Art. 12, /e . 7 o" t#e 0onstitution w#i # reads8 T/a%e in ases o" #ereditar' su ession, no pri%ate lands s#all be trans"erred or on%e'ed e+ ept to indi%iduals 9uali"ied to a 9uire or #old lands o" t#e publi do-ain.U o ;+ eption to pro#ibition on owners#ip o" real propert'8 *esta-entar' su ession8 /a%e in ases o" #ereditar' su ession, no pri%ate lands s#all be trans"erred or on%e'ed e+ ept to indi%iduals 9uali"ied to a 9uire or #old lands o" t#e publi do-ain. /e . 2, A$ 185 w#i # allowed a natural-born iti!en w#o #ad lost #is 1ilipino iti!ens#ip to be a trans"eree o" a pri%ate land "or residential purposes as long as it did not e+ eed 1,000 s9. -. o" urban land or 1 #a. o" rural land. A' appl'ing t#e do trine o" in pari deli to w#erein t#e alien %endee later be o-es a naturali!ed 1ilipino and is e+ luded "ro- t#e onstitutional ban
C. PR6CE 9RE '6R 7A59RAL)DA5)67 /teps "or =aturali!ation o <e laration o" intention to be o-e a iti!en o $etition "or naturali!ation o $ubli ation in t#e :""i ial Ca!ette or newspaper o" general publi ation t#en #earing o &e#earing a"ter two 'ears a"ter pro-ulgation o" (udg-ent awarding naturali!ation o *a.ing o" oat# o" allegian e
?eclaration of #ntention 1ile wit#in 1 'ear prior to petition "or ad-ission to $#ilippine iti!ens#ip 1ile wit# t#e :/C a de laration under oat# t#at it is #is bona "ide intention to be o-e a iti!en o" t#e $#ilippines ;+e-ptions "or "iling a <e laration o" 2ntention8
Lan.ua.e reKuirement, ;%en i" t#e appli ant an understand but annot spea. and write t#e re9uisite languages, #e is not 9uali"ied to be naturali!ed.
o $ersons born in t#e $#ilippines and w#o #a%e re ei%ed t#eir pri-ar' and se ondar' edu ation in publi s #ools or pri%ate s #ools re ogni!ed b' t#e go%ern-ent and not li-ited to ra e or nationalit' *#ose w#o #a%e resided ontinuousl' in t#e $#ilippines "or a period o" 30 'ears or -ore be"ore "iling t#eir appli ation *#e widow and -inor #ildren o" an alien w#o de lared #is intention to be o-e a iti!en o" t#e $#ilippines and dies be"ore #e is a tuall' naturali!ed
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denied b' t#e Aureau o" 2--igration. *#e' were ad%ised to lea%e but t#e' ountered wit# a petition "or -anda-us. *#e A:2 argues t#at e%en i" >' was naturali!ed, 0#ua was not auto-ati all' law"ull' naturali!ed. )ssue ,:= 0#ua auto-ati all' be a-e a naturali!ed 1ilipino >el+ =: 0#ua -ust "irst pro%e t#at s#e possesses all t#e 9uali"i ations and none o" t#e dis9uali"i ations "or naturali!ation. :n t#e ontrar', 0#ua de-onstrated #er in apa it' to satis"' t#e 9uali"i ation t#at s#e -ust be o" good -oral #ara ter. /#e -isrepresented be"ore t#e onsular representati%es t#at s#e a-e to t#e ountr' "or a te-porar' %isit w#en s#e in "a t intended to sta' per-anentl'. /#e sta'ed be'ond t#e ti-e legall' allowed and s#e also dela'ed ourt pro esses b' appl'ing "or -anda-us. 7:F FA L27 FA: I 0:77 :1 2772C&A*2:= 319714 "ummarLau arri%ed in t#e $#ilippines in 1961 and was allowed to sta' until 1ebruar' 1962. 2n Banuar' 1962, s#e -arried Li- Fao w#o was allegedl' 1ilipino. *#e period "or #er law"ul sta' e+pired and s#e "iled an a tion "or in(un tion in order to restrain t#e A:2 "roordering #er to lea%e. *#e 012 denied #er petition, ruling t#at -ere -arriage does not su""i ientl' grant #er 1ilipino iti!ens#ip and s#e -ust "irst pro%e s#e possesses t#e 9uali"i ations and none o" t#e dis9uali"i ations. )ssue ,:= Lau is a 1ilipino iti!en >el+ F;/, pro%ided t#at s#e is not dis9uali"ied to be a iti!en o" t#e $#ilippines. *#e law is o" A-eri an origin but $#ilippine ourts s#owed no intent to brea. awa' "ro- t#at tradition. *#e 0ourts #a%e pre%iousl' wa%ered in t#e ases o" Lee /uan A' and Lo /an *uang t#at t#ere -ust be proo" t#at t#e spouse possesses t#e 9uali"i ations o" a an appli ant but in t#is ase, t#e /0 o%erturned su # pre%ious de isions and #eld t#at an alien wo-an -arried to an alien subse9uentl' naturali!ed "ollows t#e iti!ens#ip o" #er #usband pro%ided t#at s#e does not su""er "ro- an' o" t#e dis9uali"i ations outlined. Moy Da @im re%ersed 2urca vs. epublic w#i # #eld t#at iti!ens#ip s#ould not be #anded out blindl' to an' alien wo-an on a ount o" #er -arriage to a 1ilipino. Aur a appealed to t#e /0 but t#e 0ourt ruled t#at notwit#standing t#e Moy Da @im do trine, Aur a still #ad to ta.e steps ne essar' "or t#e an ellation o" #er alien erti"i ate o" regulation to se ure #er status as iti!en.
&e9uire-ent to "ile a de laration o" intention is -andator' and an absolute prere9uisite to naturali!ation 2" t#e appli ant is e+e-pt "ro- "iling a de laration o" intention, #is petition s#ould ontain a state-ent as to #is e+e-ption and t#e orresponding reasons "or su # e+e-ption o 2n order to apprise t#e publi , espe iall' t#e o""i ers #arged wit# noti e o" t#e appli ation, so t#at t#e' -a' be prepared to ontest or ob(e t to an' e%iden e addu ed in t#at regard 1ailure to do so onstitutes a "atal de"e t in petition and renders it %oid "or non o-plian e wit# law
7ffect of ;aturalization on 9ife and (hildren An' wo-an w#o is -arried to a iti!en o" t#e $#ilippines and w#o -ig#t #ersel" be law"ull' naturali!ed s#all be dee-ed a iti!en 7inor #ildren o" persons naturali!ed w#o #a%e been born in t#e $#ilippines s#all be onsidered iti!ens 1oreign-born -inor #ild in t#e $#ilippines at t#e ti-e o" naturali!ation o" parent is auto-ati all' a 1ilipino iti!en 1oreign-born -inor #ild not in t#e $#ilippines at ti-e o" naturali!ation o" parent s#all be dee-ed a 1ilipino iti!en onl' during #is -inorit' unless8 o Aegins to reside per-anentl' in t#e $#ilippines w#en still a -inor in w#i # ase #e will be onsidered a 1ilipino iti!en e%en a"ter be o-ing o" age.
1oreign-born #ild a"ter naturali!ation o" #is parent s#all be onsidered a 1ilipino iti!en o >nless wit#in one 'ear a"ter rea #ing t#e age o" -a(orit', #e "ails to register #i-sel" as a $#ilippine iti!en at t#e A-eri an 0onsulate o" t#e ountr' w#ere #e resides and ta.es t#e ne essar' oat# o" allegian e
;o >udicial ?eclaration of Philippine (itizenship <e laration o" $#ilippine iti!ens#ip -a' not be granted in an a tion o" de larator' relie". /u--ar' pro edure under Art. 412 o" t#e 00 "or orre tion o" error in entr' in 0i%il &egistr' w#i # -ig#t also #ange t#e iti!ens#ip or status o" an indi%idual was also disallowed. *#is rule #as, #owe%er, been rela+ed in later /0 de isions.
I2I: I 0L:&2A;L 319684 "ummar0#ua and #er 2 -inor sons arri%ed "ro- )M. 0#uaRs #usband >' #ad applied "or naturali!ation w#i # was granted. 0#ua and #er #ildren "iled a petition "or inde"inite e+tension to sta' w#ile waiting "or >' to ta.e #is oat#. *#is was granted b' t#e <1A but
!au Du (hin vs. epublic8 *#ere an be no (udi ial pro eeding or a tion "or t#e de laration o" t#e iti!ens#ip o" an indi%idual. 0ourts o" (usti e e+ist "or t#e settle-ent o" (usti iable ontr%ersies w#i # i-pl' a gi%en rig#t, an a t or o-ission %iolati%e o" t#e rig#t and a re-ed' granted or san tioned b' law "or said brea # o" rig#t.
28
. L6"" 6' P>)L)PP)7E C)5)DE7">)P 1. =aturali!ation in 1oreign 0ountries 1&2IAL<: I 0:7;L;0 319894 "ummar1ri%aldo pro lai-ed go%ernor-ele t o" /orsogon. An a tion annul-ent was "iled against #i- on t#e ground t#at #e was not a 1ilipino iti!en #a%ing been naturali!ed in t#e >/ in 1983. 1ri%aldo ad-itted t#at #e #ad indeed been naturali!ed but argued t#at #e onl' did so in order to prote t #i-sel" "ro- prose ution during -artial law. )ssue ,:= 1ri%aldo is a 1ilipino iti!en >el+ =: 2" 1ri%aldo reall' wanted to disa%ow #is A-eri an iti!ens#ip, #e ould #a%e done so in t#ree wa's 14 b' dire t a t o" 0ongress, 24 b' naturali!ation and 34 b' repatriation. &epatriation annot be a #ie%ed b' a ti%e parti ipation in $#ilippine ele tions. )e -a' #a%e "or"eited #is >/ iti!ens#ip in doing but t#is does not -ean t#at #e #as rea 9uired $#ilippine iti!ens#ip. /i-pl' "iling a erti"i ate o" andida ' does not allow #i- to re o%er $#ilippine iti!ens#ip. 1&2IAL<: I 0:7;L;0 319964 "ummar1ri%aldo too. #is oat# o" allegian e a"ter #is andida ' #ad been "iled. )ssue ,:= 1ri%aldo #ad rea 9uired $#ilippine iti!ens#ip >el+ F;/ *#e repatriation o" 1ri%aldo retroa ted to t#e date o" t#e "iling o" #is appli ation. *#e law does not spe i"' an' parti ular date or ti-e w#en t#e andidate -ust possess iti!ens#ip unli.e t#at "or residen e and age. Aeing a "or-er 1ilipino, #e deser%es a liberal interpretation o" t#e $#ilippine laws. LAA: I 0:7;L;0 319894 "ummarLabo was ele ted -a'or o" Aaguio. A petition "or 9uo warranto was "iled against #i- on t#e ground t#at #e was not a 1ilipino iti!en. *#e 0:7;L;0 #eld t#at #e was a iti!en but t#e A:2 #eld t#at #e was Australian sin e an o""i ial state-ent "ro- t#e Australian go%ern-ent stated t#at #e was still Australian. Labo alleges #e as.ed "or a #ange o" status "ro- i--igrant to a returning "or-er $#ilippine iti!en. )is naturali!ation onl' -ade #i-, at worse, a dual iti!en. )e was also -arried to an Australian and it was later annulled on t#e ground o" biga-'. )ssue ,:= Labo #ad been di%ested o" #is 1ilipino iti!ens#ip erti"i ate o"
>el+ F;/ *#ere are -odes b' w#i # $#ilippine iti!ens#ip -a' be lost. *#is in ludes naturali!ation in a "oreign ountr', e+press renun iation o" iti!ens#ip and subs ribing to an oat# o" allegian e to support t#e 0onstitution o" a "oreign ountr', all o" w#i # appl' to Labo. <ual allegian e is ini-i al to t#e national interest. ;%en i" #is -arriage to t#e Australian was annulled "or being biga-ous, it does not a-ount to restoration o" #is iti!ens#ip. &e(e tion o" #is Australian iti!ens#ip does not -ean an auto-ati reinstate-ent o" #is $#ilippine iti!ens#ip. *#ird, t#ere was no (udi ial de ree o" naturali!ation issued in LaboRs "a%or. 2. ;+press &enun iation o" 0iti!ens#ip AV=A& I 0:7;L;0 319904 "ummar:s-ena was andidate "or go%ernor o" 0ebu. A petition "or dis9uali"i ation was "iled against #i- "or being a >/ iti!en. *#e <eportation 0o--issioner issue a erti"i ate t#at :s-ena was A-eri an #eld an Alien 0erti"i ate o" &egistration. :s-ena argued t#at #e was 1ilipino, #eld a $#ilippine passport, was a resident o" t#e $#ilippines sin e birt# and was a registered %oter. )ssue ,:= :s-ena is a 1ilipino iti!en >el+ F;/ 0:7;L;0 "ailed to present dire t proo" t#at :s-ena #ad lost #is 1ilipino iti!ens#ip. )e was not naturali!ed, #e #ad not e+pressl' renoun ed #is iti!ens#ip and #e #ad not subs ribed to an oat# o" allegian e to anot#er ountr'. *#e -ere "a t t#at #e #olds an alien erti"i ate registration does not -ean t#at #e #ad renoun ed #is iti!ens#ip. *#e "a t t#at t#e do u-ent states t#at t#e erti"i ate states t#at #e is 1ilipino does not -ean t#at #e is not 1ilipino. Ae ause #is "at#er is a 1ilipino, t#ere is a presu-ption t#at :s-ena is 1ilipino. :s-ena #olds a %alid passport and #ad ontinuousl' parti ipated in ele tions in t#e ountr'. 3. /ubs ribing to an :at# o" Allegian e to support t#e 0onstitution or Laws o" a 1oreign 0ountr' upon attaining 20 'ears o" age 3sub(e t to ertain e+ eptions4 4. A' rendering ser%i e to or a epting o--ission in t#e ar-ed "or es o" a "oreign ountr' sub(e t to ertain e+ eptions 5. A' #a%ing been de lared b' o-petent aut#orit', a deserter o" t#e $#ilippine ar-ed "or es in ti-e o" war, unless subse9uentl', a plenar' pardon or a-nest' #as been granted6 6. 2n ase o" a wo-an, upon #er -arriage to a "oreigner, i" b' %irtue o" t#e laws in "or e in #er #usbandRs ountr', s#e a 9uires #is nationalit'6 and 7. A' an ellation o" t#e erti"i ate o" naturali!ation. /e . 18 o" t#e =aturali!ation Law pro%ides t#at upon -otion -ade in t#e proper pro eedings b' t#e /olCen, t#e Budge -a' an el t#at naturali!ation erti"i ate issued and its registration in t#e 0i%il &egistr' "or an' o" t#e "ollowing reasons8 o 2" it is s#own t#at said naturali!ation erti"i ate was obtained "raudulentl' or illegall'6
o 2" t#e person naturali!ed s#all, wit#in "i%e 'ears ne+t "ollowing t#e issuan e o" said naturali!ation erti"i ate, return to #is nati%e ountr' or to so-e "oreign ountr' and establis# #is per-anent residen e6 $ro%ided t#at t#e "a t o" t#e person naturali!ed re-aining "or -ore t#an one 'ear in #is nati%e ountr' or t#e ountr' o" #is "or-er nationalit' or two 'ears in an' ountr', s#all be onsidered as pri-a "a ie e%iden e o" #is intention o" ta.ing up #is per-anent residen e t#ere
29
-aterial "a t. A naturali!ation pro eeding is not a (udi ial ad%ersar' pro eeding, t#e de ision rendered t#ere does not onstitute res (udi ata as to an' -atter t#at would support a (udg-ent an elling a erti"i ate o" naturali!ation on t#e ground o" illegal or "raudulent pro ure-ent. E. PR6CLE=" )7 APPL;)7? 5>E 7A5)67AL)5; PR)7C)PLE 1. <ual or 7ultiple 0iti!ens#ip A ording to t#e )ague 0on%ention, ea # state deter-ines w#o its own nationals are. An' 9uestion as to w#et#er or not a person possesses t#e nationalit' o" a parti ular state s#all be deter-ined a ording to t#e /tateRs internal law. *#ere"ore it is possible t#at an indi%idual lai-ed as a national o" two or -ore states. 2nstan es o" dualG-ultiple iti!ens#ip o Appl'ing (us soli and (us sanguinis, a #ild born o" parents w#o are nationals o" a ountr' appl'ing (us sanguinis in a ountr' appl'ing t#e (us soli prin iple #as dual nationalit'. A 1ilipino iti!en w#o -arries an alien -a' a 9uire t#e iti!ens#ip o" #is or #er spouse i" t#e spouseRs national law so allows. A 1ilipino iti!en, #owe%er, w#o -arries an alien s#all retain $#ilippine iti!ens#ip unless b' #is or #er a t or o-ission, #e is dee-ed under t#e law to #a%e renoun ed it b' ta.ing an oat# o" allegian e to t#e spouseRs ountr' or b' e+press renun iation. An indi%idual w#o is naturali!ed iti!en o" anot#er state but #as not e""e ti%el' renoun ed #is "or-er nationalit'. an be
o o
2" t#e petition was -ade on an in%alid de laration o" intention6 2" it is s#own t#at t#e -inor #ildren i" t#e person naturali!ed "ailed to graduate "ropubli or pri%ate #ig# s #ool re ogni!ed b' t#e Aureau o" $ri%ate / #ools, w#ere $#ilippine #istor', go%ern-ent and i%i s are taug#t or pres ribed as part o" t#e s #ool urri ulu-, t#roug# t#e "ault o" t#eir parents eit#er b' negle ting to support t#e- or b' trans"erring t#e- to anot#er s #ool or s #ools. A erti"ied op' o" t#e de ree an elling t#e naturali!ation erti"i ate s#all be "orwarded b' t#e 0ler. o" 0ourt to t#e :""i e o" t#e $resident and t#e :""i e o" t#e /oli itor Ceneral6 2" it is s#own t#at t#e naturali!ed iti!en #as allowed #i-sel" to be used as a du--' in %iolation o" t#e 0onstitution or legal pro%isions re9uiring $#ilippine iti!ens#ip as a re9uisite "or t#e e+er ise, use o" en(o'-ent o" a rig#t, "ran #ise or pri%ilege
A (udg-ent dire ting t#e issuan e o" erti"i ate o" naturali!ation is a -ere grant o" politi al pri%ilege and t#at neit#er estoppel nor res (udi ata an be in%o.ed to bar t#e /tate "or initiating an a tion "or t#e an ellation or nulli"i ation o" t#e erti"i ate o" naturali!ation t#us issued. 2" it is s#own t#at t#e naturali!ation erti"i ate was obtained "raudulentl' or illegall', t#e erti"i ate -a' be an elled. *#e de ision in a naturali!ation ase does not be o-e res (udi ata.
=:**;A:)7 0A/; S L2;0)*;=/*;2= I C>A*;7ALA 319554 "ummarCuate-ala e+pelled and re"used to read-it =ottebo#-, a Cer-an national and sei!ed #is propert' wit#out o-pensation. =ottebo#- li%ed in Cuate-ala "or 34 'ears and Cuate-ala be a-e #is -ain seat o" interest and #e sta'ed t#ere until #e was e+pelled. =ottebo#- settled in Lie #tenstein. Lie #tenstein as.ed "or da-ages and t#e restoration o" =ottebo#-Rs propert' in Cuate-ala. Cuate-ala argues t#at =ottebo#- #ad not legall' a 9uired Lie #tenstein nationalit'. )ssue ,:= =ottebo#- was a national o" Lie #tenstein >el+ =: )e #ad no settled abode in Lie #tenstein. )is sta' t#ere was transient. )e went to Lie #tenstein onl' be ause Cuate-ala re"used to ad-it #i-. :) );M ):, I &;$>AL20 319694 "ummar:# applied "or naturali!ation w#i # was granted. :# as.ed t#at #e be allowed to ta.et#e oat# o" allegian e and t#is was granted. *#e go%ern-ent appealed t#at #is naturali!ation be an elled be ause t#e erti"i ate was issued and t#e oat# was -ade be"ore
&;$>AL20 I L2 FA: 319924 "ummarLi Fao was a naturali!ed iti!en. /olCen "iled a petition to an el #is naturali!ation be ause #e #ad obtained su # t#roug# "raud and ta+ e%asion. Li Fao died pending appeal. )ssue ,:= t#e an ellation o" t#e erti"i ate o" naturali!ation is %alid >el+ F;/ 0erti"i ate -a' be an elled i" it is subse9uentl' dis o%ered t#at t#e appli ant obtained it b' -isleading t#e ourt upon an'
t#e ourt order was -ade. *#e -otion was granted but, at t#e sa-e ti-e, :# was aut#ori!ed to ta.e a new oat# and t#e issuan e o" anot#er erti"i ate o" naturali!ation to %alidate t#e "irst one -ade. )ssue ,:= :# #ad %alidl' renoun ed #is iti!ens#ip under 0#inese law >el+ =: :# #ad not se ured "ro- t#e 2nterior 7inister in 0#ina t#e per-ission to %alidl' renoun e #is nationalit'. 1or naturali!ation to be e""e ti%e, renun iation s#ould be e""e ted a ording 2. /tatelessness *wo .inds o" statelessness8 o e 2ure8 &e"ers to an indi%idual w#o #as been stripped o" #is nationalit' b' #is "or-er go%ern-ent wit#out #a%ing an opportunit' to a 9uire anot#er o e facto8 /tateless persons are indi%iduals possessed o" a nationalit' but w#ose ountr' does not gi%e t#e- prote tion outside t#eir own territor'. *#e' are o--onl' .nown as re"ugees.
30
s#ow t#at under t#e laws o" &ussia, Moo.oorit #.in #ad lost #is &ussian iti!ens#ip. )ssue ,:= Moo.oorit #.in was stateless >el+ F;/ Moo.oorit #.in was a iti!en o" t#e ;-pire o" &ussia but t#at ;-pire #as sin e t#en eased to e+ist sin e t#e 0!ars were o%ert#rown b' t#e Aols#e%i.s and #as now be o-e a 0o--unist nation. 2t would be te #ni all' "astidious to re9uire "urt#er e%iden e o" #is statelessness sin e #e #as sin e "led &ussia.
D. <:7202L; A. E')7)5)67
1951 Cene%a 0on%ention on t#e /tatus o" &e"ugees pro%ided basi rig#ts o" stateless persons. 1954 >= 0on"eren e on t#e ;li-ination or &edu tion o" 1uture /tatelessness was on%ened and adopted a 0on%ention on t#e &edu tion o" /tatelessness in 1961. o 0onditions under w#i # an indi%idual would not lost #is or #er nationalit' upon t#e ris. o" be o-ing stateless s#ould a new nationalit' not be pro%ided8 7arriage <i%or e Adoption =aturali!ation ;+patriation 7a(or ob(e ti%e is to re-ed' t#e situation o" #ildren born wit#out a 9uiring an' nationalit' w#i # arises w#en a #ild is born in a ountr' "ollowing t#e (us sanguinis prin iple o" parents w#o are iti!ens o" a (us soli ountr'. 0on%ention -andates t#at t#e (us sanguinis ountr' grant its nationalit' to a person born wit#in its territor' i" #e would ot#erwise be stateless and t#e (us soli ountr' to e+tend its nationalit' to a person w#o would ot#erwise be onsidered stateless w#en one o" #is parents is a iti!en o" t#e ontra ting state.
6=)C)LE =unicipal law +efinition o natural persons, "or t#e e+er ise o" i%il rig#ts and t#e "ul"ill-ent o" i%il obligations, t#e do-i ile o" natural persons is t#e pla e o" t#eir #abitual residen e. 3Art. 50, 0i%il 0ode4 o 2uri+ical persons, do-i ile is deter-ined b' t#e law reating or re ogni!ing it. 2n t#e absen e t#ereo" it s#all be understood to be t#e pla e w#ere t#eir legal representation or pla e o" business is. Conflict4of4laws +efinition o t#e pla e wit# w#i # a person #as a settled onne tion "or ertain legal purposes, eit#er be ause #is #o-e is t#ere or be ause t#at pla e is assigned to #i- b' law <o-i ile #as a 9uired a te #ni al -eaning6 a person -a' li%e in a pla e w#ere #e is =:* do-i iled. *#e "ollowing re9uire-ents -ust on ur8 o )ntention to maJe it oneIs +omicile o Ph-sical presence in t#e pla e Resi+ence on t#e ot#er #and re9uires onl' bodil' presen e o" an in#abitant in a gi%en pla e. T<o-i ile is not e+a tl' s'non'-ous wit# t#e ter- residen e. <o-i ile re"ers to relati%el' -ore per-anent abode o" a person, w#ile residen e applies to a te-porar' sta'LU 3Ioh v. (A4
M::M::&2*0)M2= I /:LC;= 319484 "ummarMoo.oorit #.in "iled a petition "or naturali!ation w#i # was e%entuall' granted. )e was a nati%e-born &ussian w#o arri%ed in t#e $#ilippines as a -e-ber o" t#e ,#ite &ussians under Ad-iral /tar.. )e -arried a 1ilipino. 2t was establis#ed t#at #e was a stateless re"ugee. /olgen appealed, lai-ing t#at Moo.oorit #.in was not stateless but was a &ussian iti!en. )e #ad "ailed to
0AA/2 I 0A 319904 'AC5", 7iguel won as 7a'or o" Aolinao. 0aasi, a ri%al andidate, ob(e ted to 7iguelRs 9uali"i ations on t#e ground t#at t#e latter was a green ard #older, #en e a per-anent resident o" A-eri a and not o" Aolinao. 30:7;L;0 dis-issed t#e ontest, #olding t#at t#e possession o" a green ard does not establis# 7iguelRs abandon-ent o" #is $#ilippine residen e4 ,#en 7iguel returned to t#e $#ilippines in =o%e-ber 1987, #e sta'ed in Aolinao "or onl' t#ree 334 -ont#s be"ore t#e ele tions on Banuar' 18, 1988. )""9E, ,:= 7iguel is a resident o" Aolinao, and not >/. >EL , 7iguel lost #is $#ilippine residen e. *#e law re9uires t#at t#e andidate w#o is a green ard #older -ust #a%e wai%ed #is status as a per-anent resident or i--igrant o" a "oreign ountr'. 7iguelRs a t o" "iling a erti"\ ate o" andida ' "or ele ti%e o""i e in t#e $#ilippines
did not itsel" onstitute a wai%er o" #is status as a per-anent resident or i--igrant o" t#e >/. *#ere -ust be so-e ot#er a t independent o" and prior to t#e "iling o" #is andida '. =o e%iden e t#at 7iguel wai%ed #is status as green ard #older be"ore #e ran "or -a'or. Lo al Co%Rt 0ode re9uires residen e o" one 314 'ear in t#e -uni ipalit' 3to get a 9uainted wit# t#e pla eRs ondition4. :-nibus ;le tion 0ode #as a poli ' o" banning $#ilippine iti!ens wit# dual lo'alties and allegian e. 3.
31
2" t#e law o" t#e do-i ile o" origin is gi%en o%erriding signi"i an e, t#en it -a' reate t#e sa-e proble- o" attenuated onne tion we saw in t#e use o" nationalit' as personal law. 3,#' s#ould t#e law i-posed at birt#, independent o" oneRs "ree #oi e be gi%en weig#t w#en t#e person #as no signi"i ant ties wit# t#e stateH4 ?E7ERAL R9LE8 *#e $#ilippines "ollows t#e nationalit' law t#eor', pursuant to Art. 15 o" t#e 0i%il 0ode. ;+ ept8 o 2n ases w#ere t#e litigant is an alien w#o o-es "ro- a ountr' "ollowing t#e do-i iliar' prin iple. o /tateless persons or t#ose wit# dual or -ultiple nationalities 3t#en t#e ourt would #a%e to re"er to do-i ile4. o ,#en an alien do-i iled in t#e $#ilippines e+e utes a will abroad. 1or-alities o" t#e will -a' be go%erned b' t#e law o" t#e do-i ile. o 2n a re%o ation o" a will outside t#e $#ilippines, %alidit' o" re%o ation -ust "ollow t#e law o" t#e do-i ile o" t#e testator. 6=)C)LE
>F*;=C/> I &;$>AL20 319544 'AC5", >'tengsu born o" 0#inese parents in <u-aguete. ,ent to t#e >/ to stud' in /tan"ord >ni%ersit' 31947 - 19504. 2n April o" t#e sa-e 'ear #e returned to t#e $#ilippines "or a 4--ont# %a ation. >'tengsu "iled #is appli ation "or naturali!ation on Bul' 15, 1950. 1ortwit#, #e returned to t#e >/ and too. a post-grad ourse in 2ndiana w#i # #e "inis#ed in 1951. )e a-e ba . to t#e $#ilippines later t#at 'ear. 012 o" 0ebu granted #is appli ation "or naturali!ation, w#i # t#e go%Rt opposed on t#e ground t#at >'tengsu <2< =:* reside in t#e $#ilippines ontinuousl' "ro- t#e date o" "iling o" t#e petition. 1or al-ost 5 'ears >'tengsu resided in t#e >/, 3 'ears be"ore t#e appli ation "or naturali!ation, 2 a"ter.. )""9E, ,:= >'tengsu satis"ied t#e re9uire-ents o" t#e =aturali!ation Law. >EL , &esiden e and <o-i ile are =:* /F=:=F7:>/ in relation to iti!ens#ip, (urisdi tion, li-itations, s #ool pri%ileges, probate and su ession. :ne is a resident o" a pla e "ro- w#i # #is departure is inde"inite as to ti-e, de"inite as to purpose6 and "or t#is purpose #e #as -ade t#e pla e #is te-porar' #o-e. &esiden e is an a t. <o-i ile is an a t oupled wit# an intent. *#e 9uestion o" do-i ile is =:* 2=I:LI;< in deter-ining w#et#er a person is a resident o" a state or ountr'. 2n t#is ase, a tual and substantial resident wit#in t#e $#ilippines, not legal residen e 3do-i ile4 alone is essential to t#e en(o'-ent o" t#e bene"its o" t#e e+e-ption. C. =ER)5" A7 E=ER)5" 6' 6=)C)LE
C. ?E7ERAL R9LE" 67
')R"5, =o person s#all be wit#out a do-i ile. A personRs do-i ile o" origin pre%ails until #e a 9uires a new do-i ile. "EC67 , A person annot #a%e two si-ultaneous do-i iles, sin e t#e %er' purpose "or identi"'ing oneRs do-i ile is to establis# a onne tion between t#e person and a de"inite legal s'ste-. 5>)R , 2t establis#es a parti ular territorial unit. onne tion between a person and a
'69R5>8 *#e burden o" pro%ing a #ange o" do-i ile is upon w#oe%er alleges t#at a #ange #as been se ured. *#ere -ust be o%erw#el-ing e%iden e, ot#erwise t#e ourts will de ide in "a%or o" ontinuan e o" do-i ile. 0ourts -a' #a%e di""erent notions o" do-i ile and -a' attribute t#ese %ar'ing -eanings "or di""erent purposes. A person an #a%e onl' one do-i ile "or a gi%en purpose or a gi%en ti-e under t#e law o" one state, but it s#ould not be assu-ed t#at t#e deter-ination will be binding on ot#er states, or on t#e sa-e state "or ot#er purposes.
=ER)5" 2n o--on law ountries, do-i ile is t#e pre"erred pri-ar' onne tion between a person and a state6 it satis"ies t#e %er' purpose "or #a%ing a personal law. 2t pro%ides "or an ade9uate basis "or t#e person to e+er ise rig#ts 3in t#e pla e w#ere #e establis#es #is per-anent #o-e4, and "or t#e state to i-pose duties on #i-. <o-i ile is suitable "or "ederal s'ste-s o" go%ern-ent, sin e t#e law o" t#e do-i ile is t#e law o" t#e pla e w#ere t#e indi%idual li%es. E=ER)5" 1. :neRs do-i ile is not as ertainable wit#out "irst resorting to t#e ourts to establis# w#et#er or not t#ere is animo manendi. 2. *#e notion o" do-i ile di""ers widel' wit# so-e states distinguis#ing between residen e and do-i ile or attributing di""erent -eanings o" do-i ile "or di""erent purposes.
&:7>AL<;V-7A&0:/ I 0:7;L;0 319954 'AC5", 2-elda 7ar os "iled #er 0:0 "or &epresentati%e in t#e 1irst <istri t o" Le'te. 2nitiall', s#e indi ated t#at #er lengt# o" residen e in t#e pla e s#e soug#t to be ele ted was T7 7:=*)/U. 0irilo 7onte(o "iled a petition "or an ellation and dis9uali"i ation, on t#e ground t#at 2-elda did not -eet t#e onstitutional re9uire-ent o" residen ' 3-ust be a resident "or a period not less t#an one 'ear4. 2-elda t#en a-ended #er 0:0 #anging se%en -ont#s to Tsin e #ild#ood.U 0:7;L;0 an elled 2-eldaRs 0:0, stating t#at #er animus revertendi was /an Buan, 7anila, and not *a loban. >EL , 2-elda was a resident o" *a loban sin e #ild#ood. 1or purposes o" ele tion law, residen e is s'non'-ous wit# do-i ile 3-eaning residen e re"ers to do-i ile4. 2t is t#e "a t o" residen e, not a state-ent in t#e 0:0 w#i # oug#t to be de isi%e in deter-ining ,:= an indi%idual #as satis"ied t#e onstitutional re9uire-ent. An indi%idual does not lose #is do-i ile e%en i" #e #as li%ed and -aintained residen e in di""erent pla es. *#e
0:7;L;0 was re"erring to petitionerRs %arious pla es o" 3a tual4 residen e, not #er do-i ile. A -inor "ollows t#e do-i ile o" #er parent. *a loban was #er do-i ile o" origin b' operation o" law. <o-i ile o" origin is not easil' lost. *o "ull' e""e t a #ange o" do-i ile, one -ust de-onstrate8 a. A tual re-o%al "rodo-i ile b. Aona "ide intention o" abandoning t#e "or-er pla e o" residen e and establis#ing a new one . A ts w#i # orrespond wit# purpose. A' #er -arriage to 7ar os, assu-ing t#at #e "i+ed an' o" t#e pla es t#e' li%ed in as on(ugal residen e, 2-elda -erel' gained upon -arriage a tual -arriage. /#e did not lose #er do-i ile o" origin.
32
C&8 a personRs e+pression o" desire -a' not supersede t#e e""e t o" #is ondu t. A -an annot retain a do-i ile in one pla e w#en #e #as -o%ed to anot#er, and intends to reside t#ere "or t#e rest o" #is li"e, b' an' wis#, de laration, or intent in onsistent wit# t#e do-inant "a ts o" w#ere #e a tuall' li%es and w#at #e a tuall' -eans to do. A de laration as to do-i ile t#at is sel"-ser%ing and not "ollowed b' a ts in a ordan e wit# t#e de laration will not be regarded as on lusi%e, but will 'ield to t#e intent w#i # t#e a ts and ondu t o" t#e person learl' indi ate. *#ere -ust be A:*) a tual residen e and an intention o" re-aining 3animus manendi' be"ore a do-i ile -a' be establis#ed. . G)7 " 6' 6=)C)LE 1. <o-i ile o" :rigin - personRs do-i ile at birt# legiti-ate #ild "ollows "at#erRs do-i ile illegiti-ate #ild "ollows -ot#erRs do-i ile <o-i ile o" 0#oi e - %oluntar' do-i ile, t#e pla e "reel' #osen b' a person sui (uris. *#ere -ust be on urren e o" p#'si al presen e in t#e new pla e and un9uali"ied intention to -a.e t#at pla e oneRs #o-e. 0onstru ti%e <o-i ile - b' operation o" law, do-i ile is assigned to persons legall' in apable o" #oosing t#eir do-i ile. 2t in ludes8 7inors 7entall' disabled 7arried wo-en
>BA=: I &;$>AL20 319664 'AC5", >(ano was born in 1900 o" 1ilipino parents in 2lo os /ur. )e went to t#e >/ w#ere #e sta'ed "or -ore t#an 20 'ears, a 9uiring iti!ens#ip b' naturali!ation. 2n 1960 #e returned to t#e $#ilippines and "iled a petition see.ing rea 9uisition o" #is $#ilippine iti!ens#ip, wit# intention o" renoun ing #is allegian e to t#e >/. 0ourt denied t#e petition on t#e ground t#at petitioner did not #a%e t#e residen e re9uired b' law, w#i # was 6 -ont#s. >EL , >(ano "ailed to satis"' t#e 0onsti re9uire-ent. &esiden e re9uire-ent in ases o" naturali!ation #as alread' been interpreted to -ean t#e a tual or onstru ti%e per-anent #o-e ot#erwise .nown as legal residen e or do-i ile. 2t is #ara teri!ed b' animus manendi. An alien w#o o-es to t#e $#ilippines "or business or pleasure annot be said to #a%e establis#ed #is do-i ile #ere, be ause t#e period o" #is sta' is onl' te-porar'. >(ano, w#o was an A-eri an iti!en at t#e ti-e, was ad-itted into t#e $#ilippines as a te-porar' %isitor, a status #e -aintained at t#e ti-e o" "iling o" t#e petition. /u # being t#e ase, #e #as not o-plied wit# t#e 6--ont# residen e re9uired b' law. 2= &;8 <:&&A=0;R/ ;/*A*; 319324 'AC5", 2n 1897 Bo#n *. <orran e entered t#e e-plo' o" t#e 0a-pbell $reser%e 0o-pan' in 0a-den, =B, in w#i # #is un le #ad a substantial interest. )e establis#ed #is residen e in 0a-den during t#e start o" #is areer. <orran e and #is wi"e t#en -o%ed to $#iladelp#ia in 1908, and re-ained t#ere until 1911. )e subse9uentl' pur #ased a ountr' pla e in =B, and t#e 0o--onwealt# on edes t#at "ro- 7a' 7, 1911 to =o%. 14, 1925, <orran eRs do-i ile was =ew Berse'. 1ro- =o%. 14, 1925, t#e "a-il' -o%ed to &adnor. 1ro- t#is ti-e until #is deat#, <orran e was do-i iled in $enns'l%ania. )is do-i ile is now t#e sub(e t o" t#e in9uir', sin e t#e estate wis#es to a%oid pa'ing substantial ta+es on personal propert'. )""9E, 7a' e+pressions o" a -an to t#e e""e t t#at #e desires to retain a do-i ile o" #oi e in one state pre%ail o%er t#e intention to -a.e a new #o-e -ani"ested b' an a tual re-o%al to t#e new residen e in anot#er state, and a o-panied b' a -anner o" li%ingH >EL , <orran e was do-i iled in $enns'l%ania at t#e ti-e o" #is deat#.
2.
3.
<i""eren e between :rigin and 0#oi e8 1. <o-i ile o" :rigin en(o's staun # presu-ption o" ontinuan e o-pared to do-i ile o" #oi e. 2. <o-i ile o" :rigin is not lost b' -ere abandon-ent and re-ains until repla ed b' do-i ile o" #oi e. /in e do-i ile o" #oi e is a 9uired upon on urren e o" animo et facto, it is dee-ed e+tinguis#ed b' re-o%al o" intent e%en prior to a 9uisition o" a new do-i ile. 3. <o-i ile o" :rigin is presu-ed to be re%i%ed on e do-i ile o" #oi e is gi%en up, and be"ore a new one is a 9uired 3re%erter or re%i%al do trine4. 0riti is- "or re%erter do trine8 it %iolates t#e well-settled prin iple o" do-i ile8 t#at a person retains #is do-i ile until a new do-i ile o" #oi e is se ured and t#at a new do-i ile is establis#ed upon on urren e o" "a t and intention. L;=C*) :1 /*AF 2/ 277A*;&2AL. As long as t#ere is no intention to return to t#e old do-i ile, a new do-i ile is reated, w#et#er t#e intention to re-ain is "or t#e rest o" oneRs li"e, or "or an inde"inite period. 7:*2I; *: 0)A=C; <:7202L; 2/ 277A*;&2AL. 0ourts wills not weig# t#e et#i al %alues o" #is -oti%es.
I;L2LLA I $:/A<A/ 319354 'AC5", Art#ur 7ood', an A-eri an iti!en, engaged in business #er, and died in 0al utta, 2ndia in 1931. 7ood' e+e uted a will, be9ueat#ing all #is propert', to #is onl' sister 2da $al-er, w#o was a iti!en and resident o" =ew For.. 7ood' was also a transient in $aris "or t#ree -ont#s be"ore #e went to 2ndia. A2& prepared "or t#e estate o" 7ood' an in#eritan e ta+ return. *#e estate 9uestioned it, stating t#at sin e 7ood' was not a resident o" t#e $#ilippines, #is intangible personal propert' s#ould not be sub(e t to in#eritan e ta+. )""9E, ,:= 7ood' was legall' do-i iled in t#e $#ilippines at t#e ti-e o" #is deat#.
33
>EL , =o state-ent b' 7ood' t#at #e #ad adopted a new do-i ile w#ile #e was absent "ro- 7anila. *#ere is no e%iden e as to w#ere in $aris #e #ad an' "i+ed abode t#at #e intended to be #is per-anent #o-e. 0ourt applied Art. 40 o" t#e 0i%il 0ode, w#i # de"ines do-i ile as t#e pla e o" usual residen e. ;A$8 7ood' in #is letter "ro- 2ndia e+pressed #is intention ne%er to li%e in t#e $#ilippines again, sin e #e was tr'ing to a%oid on"ine-ent in t#e 0ulion Leper 0olon'. 2t s#ould #a%e been onsidered animo non revertendi 3intention to abandon4. *#e 0ourt in t#is ase loo.ed into t#e -oti%es o" 7ood', w#en su # was irrele%ant in deter-ining do-i ile. ,)2*; I *;=A=* 318884 'AC5", 7i #ael ,#ite initiall' li%ed in ,est Iirginia, but de ided to sell #is "ar- and -o%e to $enns'l%ania wit# #is wi"e, wit# t#e de laration, intent and purpose o" -a.ing $enns'l%ania t#eir #o-e. ,#ite unloaded #is #ouse#old goods and turned loose #is li%esto . in #is new "ar-. )is wi"e be a-e ill, and "inding t#e new pla e da-p and un o-"ortable, t#e' de ided to return to ,est Iirginia, w#ere #is wi"e re-ained to re o%er. ;%er'da' ,#ite -ade t#e trip to $enns'l%ania to tend to #is "lo .. ,ee.s later, ,#ite also ontra ted t#e t'p#oid, and died intestate in t#e ,est Iirginia #ouse. *#e issue o" do-i ile deter-ines t#e su ession rig#ts o" t#e #eirs. >EL , *wo t#ings -ust on ur to establis# do-i ile8 "a t o" residen e, and t#e intention o" re-aining. ,#en do-i ile is de"initel' abandoned, and a new one sele ted and entered upon, lengt# o" ti-e is not i-portant. :ne da' will be su""i ient, pro%ided t#e animus e+ists. ;%en w#en point o" destination is not rea #ed, do-i ile -a' s#i"t in itinere. 1a ts on lusi%el' s#ow t#at 7i #ael ,#ite abandoned #is residen e wit# t#e intention and purpose o" -a.ing $enns'l%ania #is #o-e. 0A&AAALL: I &;$>AL20 319624 'AC5", &i ardo 0araballo, an A-eri an iti!en, was enlisted in t#e >/ Air 1or e and detailed in 0lar. Airbase. )e and #is wi"e desired to adopt as t#eir #ild =or-a Lee 0aber, natural daug#ter o" one 7er edes 0aber. 0araballo and #is wi"e #a%e reared t#e #ild sin e #er birt#. 0araballo "iled a petition "or adoption o" t#e #ild, but t#e 1is al o" $a-panga opposed, on ground t#at as a nonresident alien, 0araballo was not 9uali"ied 3under Art. 335 a non-resident alien annot adopt4. >EL , A tual or p#'si al presen e or sta' o" a person in a pla e, not o" #is "ree and %oluntar' #oi e and wit#out intent to re-ain t#ere inde"initel', does not -a.e #i- a resident o" t#e pla e. $:L20F 0:=/2<;&A*2:=8 interest o" t#e state to prote t t#e interests o" t#e adopted -inor6 annot be pla ed be'ond t#e rea # and prote tion o" t#e ountr' o" #is birt#. ;A$8 a person under o-pulsion s#ould not be barred "ropro%ing t#at #e #as de%eloped t#e re9uired un9uali"ied intention to establis# #is per-anent abode in su # pla e. 2" #e intends to
re-ain a"ter t#e o-pulsion #as been re-o%ed, su # a person will be able to a 9uire a do-i ile o" #oi e. C: 0);= A=< C: L;M I 00 319324 'AC5", $etitioners were -inor #ildren o" Co *uan and *an Aon. ,#en Co *uan died, *an Aon -arried anot#er 0#inese, and bot# o" t#e- a-e to t#e $#ilippines. *an Aon was ad-itted as t#e wi"e o" a 0#inese -er #ant. *an Aon as.ed #er #ildren to (oin to o-e o%er to t#e $#ilippines. )""9E, ,:= a 0#inese widow w#o was ad-itted to and a 9uired a residen e in t#e $#ilippines as t#e wi"e o" a 0#inese -er #ant was entitled to bring in #er -inor #ildren. >EL , *an Aon did not enter t#roug# #er own but t#roug# t#at o" #er se ond #usband. 2" t#e rig#t to enter is deri%ed "ro- #er #usbandRs, and t#e rig#t o" t#e -inor #ildren "ro- t#at o" t#eir "at#er, t#en t#e petitioners, not being #ildren o" t#e se ond #usband, A&; =:* ;=*2*L;< *: ;=*;&. ;A$8 All t#e -inors s#ould be treated t#e sa-e wa'. 7inors s#ould "ollow t#e do-i ile o" t#e "at#er, but sin e t#e "at#er was dead, t#e #ildren s#ould now be able to "ollow t#e do-i ile o" t#e -ot#er. <; LA I2=A I I2LLA&;AL 319204 'AC5", =ar isa "iled a o-plaint against <iego <ela Iina alleging t#at s#e was a resident o" 2loilo, and t#at t#e de"endant was a resident o" =egros :riental. *#at s#e was t#e legit wi"e o" <iego, and t#at #e #ad been adulter'. Ae ause o" said illi it relations, de"endant e(e ted =ar isa "ro- t#e on(ugal #o-e. <ela Iina ontended t#at 012 2loilo #ad no (urisdi tion to ta.e ogni!an e o" said a tion "or di%or e, be ause #e was a resident o" =egros :riental, and #is wi"e -ust also be onsidered a resident o" t#e sa-e pro%in e be ause t#e do-i ile o" t#e #usband is also t#e do-i ile o" t#e wi"e. >EL , *#e wi"e -a' a 9uire anot#er and separate do-i ile "rot#at o" #er #usband w#ere t#e t#eoreti al unit' o" #usband and wi"e is dissol%ed, as it is b' t#e institution o" di%or e pro eedings6 or w#ere t#e #usband #as gi%en ause "or di%or e. *#e ase o" =ar isa "alls under one o" t#e -an' e+ eptions -entioned. ;A$8 ,i"e -a' ne%ert#eless establis# a separate do-i ile i" s#e is (usti"ied in lea%ing #er #usband. *#e -odern %iew #owe%er dispenses an' presu-ption t#at wi"eRs do-i ile is t#e sa-e as t#e #usbandRs. ;a # part' establis#es #is or #er own do-i ile o-pletel' independent o" ea # ot#er. ,i"e need not s#ow t#at #er #usband #as gi%en ause "or di%or e or legal separation.
D2. $&2=02$L;/ := $;&/:=AL /*A*>/ A=< 0A$A02*F A. E')7)5)67
&;0*: I )A&<;= 319594 'AC5", )arden engaged t#e ser%i es o" 0laro 7. &e to to appear as #er ounsel in an a tion against #er #usband, 1red, to se ure an in rease in t#e a-ount o" support s#e was re ei%ing.
1or attorne'Rs "ees, 7rs. )arden agreed to pa' &e to 20 per ent o" t#e %alue o" #er s#are o" t#e on(ugal propert' a"ter li9uidation. $ending appeal, 7r. and 7rs. )arden -utuall' released and "ore%er dis #arged ea # ot#er "ro- all a tions, debts, duties and lai-s to t#e on(ugal partners#ip, w#i # on%enientl' in luded &e toRs attorne'Rs "ees. &e to "iled a -otion alleging t#at t#e purpose o" t#e instru-ent was to de"eat #is lai- o" attorne'Rs "ees. 7rs. )arden argued t#at t#e ontra t between #er and &e to was in%alid, as it was to se ure a di%or e de ree in %iolation o" $#ilippine law.
34
poli '
<i%or e is onsidered a %iolation o" publi 3;/0A$; 7;0)A=2/7 applied #ere4.
C. CE?)77)7? A7 E7 6' PER"67AL)5; *#e deter-ination o" t#e e+a t -o-ent personalit' begins is go%erned b' t#e 0+*S12A/ /A? 2n t#e $#ilippines8
>EL , *#e purpose o" t#e ontra t wit# &e to was =:* to se ure a di%or e, or to "a ilitate or pro-ote t#e pro ure-ent o" a di%or e. 2t -erel' soug#t to prote t t#e interest o" 7rs. )arden in t#e on(ugal partners#ip. =ore importantl-, 7r. and 7rs. )arden, bot# iti!ens o" t#e >/, t#eir status and t#e dissolution t#ereo" are go%erned b' t#e laws o" t#e >/, ,)20) ALL:, <2I:&0;. 3t#us t#e ontra t between &e to and 7rs. )arden is not ontrar' to laws, -orals, good usto-, publi poli '4 Appl-in. Art. 15 of the Ci*il Co+e/ status is .o*erne+ &the national law (nationalit- principle). C. LE?)"LA5):E B9R)" )C5)67 B9 )C)AL B9R)" )C5)67 )"5)7?9)">E 'R6=
Art. 40. Airt# deter-ines personalit'6 but t#e on ei%ed #ild s#all be onsidered born "or all purposes t#at are "a%orable to it, pro%ided it be born later wit# t#e onditions spe i"ied in t#e "ollowing Art.. Art. 41. 1or i%il purposes, t#e "etus is onsidered born i" it is ali%e at t#e ti-e it is o-pletel' deli%ered "ro- t#e -ot#erRs wo-b. )owe%er, i" t#e "etus #ad an intra-uterine li"e o" less t#an se%en -ont#s, it is not dee-ed born i" it dies wit#in twent'-"our #ours a"ter its o-plete deli%er' "ro- t#e -aternal wo-b. Ce.innin. of personalit-, ;,*-: En+ of personalit-, 8+A-:
765E, A de laration o" deat# issued b' a o-petent ourt is onsidered %alid "or all purposes. >pon deat#, so-e o" #is rig#ts and obligations are totall' e+tinguis#ed, w#ile ot#ers are passed on to #is su essors. . AC"E7CE <eter-ined b' #is 0+*S12A/ /A? 5hree <a-s of ealin. with A&sence 1. *+;.--A;/+ 0*+S.M0-,12 t#at a person is dead w#en #e #as been absent "or a nu-ber o" 'ears6 2. @.8,C,A//A ,27+S-,9A-+8 and establis#ed w#i # results in legal e""e ts si-ilar to t#ose o" deat#6 and 3. A @.8,C,A/ 8+C*++ s#all #a%e to be issued de laring t#e person dead be"ore legal e""e ts o" deat# ta.e pla e. *#e $#ilippines "ollows rebuttable presu-ption. 7ote that for the purposes of remarria.e/ a 2u+icial +ecree of presumpti*e +eath is reKuire+. Art. 390. A"ter t#e absen e o" se%en 'ears, it being un.nown w#et#er or not t#e absentee still li%es, #e s#all be presu-ed dead "or all purposes, e+ ept t#ose o" su ession. *#e absentee s#all not be presu-ed dead "or t#e purpose o" opening #is su ession till a"ter an absen e o" ten 'ears. 2" #e disappeared a"ter t#e age o" se%ent'-"i%e 'ears, an absen e o" "i%e 'ears s#all be su""i ient in order t#at #is su ession -a' be opened. Art. 391. *#e "ollowing s#all be presu-ed dead "or all purposes, in luding t#e di%ision o" t#e estate a-ong #eirs8 314 A person on board a %essel lost during a sea %o'age, or on an airplane w#i # is -issing, w#o #as not been #eard o" "or "our 'ears sin e t#e loss o" t#e %essel or airplane6 324 A person in t#e ar-ed "or es w#o #as ta.en part in war, and #as been -issing "or "our 'ears6 334 A person w#o #as been in danger o" deat# under ot#er ir u-stan es and #is e+isten e #as not been .nown, "or "our 'ears. 1or spe i"i purposes, $#ilippine law re9uires t#at a 8+C/A*A-,12 1F 8+A-: be issued be"ore ertain legal e""e ts o" deat# arise.
AA&=>;I: I 1>/*;& 319134 'AC5", 1uster and 0onstan!a Fane! were -arried in /pain in 1975. 2n 1899 t#e' agreed in a publi do u-ent b' w#i # t#e' resol%ed to separate and li%e apart. Fane! o--en ed di%or e pro eedings against 1uster in C') =anila, alleging adulter'. *#e ourt de reed t#e suspension o" t#eir li"e in o--on, and dire ted t#at t#e o--unal propert' be di%ided between t#e parties. Fane! alleges t#at t#e dowr' broug#t into t#e -arriage is parap#ernal propert'. )""9E, ,:= $#ilippine di%or e. ourts #a%e (urisdi tion to de ree
>EL , ;E" Burisdi tion o" ourts to de ree a di%or e is not o-prised wit#in t#e personal status o" t#e #usband and wi"e, be ause t#e t#eor' o" statutes and o" t#e rig#ts w#i # belong to e%er'one does not go be'ond t#e sp#ere o" pri%ate law. *#e (urisdi tion o" ourts and ot#er 9uestions relating to pro edure are onsidered to be o" a publi nature and onse9uentl' are generall' sub-itted to t#e territorial prin iple. 012 7anila did not la . (urisdi tion o%er t#e persons o" t#e litigants, "or, alt#oug# /panis# 0at#oli sub(e ts, t#e' were residents o" t#is it' and #ad t#eir do-i ile #erein 3012 o" $#ilippines #a%e t#e power and (urisdi tion to tr' a tions "or di%or e. <e ided during A-eri an o upation4 ;A$8 2n t#e said ase, ourts applied t#e law o" t#e do-i ile. Ceneral rule #owe%er is t#at in t#e ase o" aliens, $#ilippine 0ourts -a' appl' national law i" t#e ountr' o" t#e alien applies t#e nationalit' prin iple, or t#e law o" t#e do-i ile i" t#e' "ollow t#e do-i iliar' prin iple 3appli ation o" ren%oi #ere4. :ur laws no longer re ogni!e absolute di%or e, t#us our ourts an no longer tr' a tions "or di%or e e%en i" broug#t b' persons w#ose national laws allow it.
1or t#e purpose o" ontra ting a s(bseB(ent marriage 3also, periods in Arts. 390 and 391 were redu ed to 2 'ears4
35
E. 7A=E <eter-ined b' 0+*S12A/ /A? =6 ER7 :)E<, A personRs na-e is determined by a5 and 'annot be '&anged 5it&o(t C(di'ia inter$ention. 2n t#e $#ilippines8 =o person an #ange #is na-e or surna-e wit#out (udi ial aut#orit'. Crounds8 &idi ulous or tainted wit# dis#onor or e+tre-el' di""i ult to pronoun e6 ,#en t#e #ange is ne essar' to a%oid on"usion6 ,#en t#e rig#t to a new na-e is a onse9uen e o" a #ange in status6 A sin ere desire to adopt a 1ilipino na-e to erase signs o" a "or-er alien nationalit' w#i # undul' #a-per so ial and business li"e.
At t#e ti-e o" t#e e+e ution o" t#e onta t in 2llinois, 1ran. was an adult under t#e laws o" t#e state. 1ran. based #is de"ense on $#ilippine law, w#i # stated t#at -ales did not rea # t#eir -a(orit' until t#e' #ad rea #ed 23 'ears old. *#e 0ourt applied lex loci contractus, in t#at -atters bearing upon t#e e+e ution, interpretation and %alidit' o" a ontra t are deter-ined b' t#e law o" t#e pla e w#ere t#e ontra t is -ade.
;A$8 0ourt s#ould #a%e applied 1ran.Rs national law 3w#i # was law o" 2llinois4. *#is would 'ield t#e sa-e result an'wa', and would be -ore stable 3 onsider a s enario w#erein 1ran. entered into t#e ontra t :>*/2<; o" 2llinois.4
PAR5 '69R 8 C>6)CE 6' LA< PR6CLE=" D22. 0):20; :1 LA, 2= 1A72LF &;LA*2:=/ Family law is an area of substantive law which inextricably reflects strong policies of the state often anchored on values and mores highly held by society. A. =ARR)A?E - L;D =A*2:=AL22 go%erns 9uestions o" "a-il' rig#ts, and duties, status, onditions and apa it'. 3Art. 15, 004 As a 0:=*&A0*8 7ere de' aration b' t#e ontra ting parties in t#e )resen'e o" t#e sole-ni!ing o""i er and 2 witnesses signed b' t#e ontra ting parties and t#eir witnesses attested b' t#e sole-ni!ing o""i er entered into b' a man and 5oman bot# 18 'ears old so emni!ed b' one aut#ori!ed b' law )ermanent (nion, >=L;// one dies6 or annulled or de lared %oid 'annot be abrogated, a-ended, or ter-inated b' will nature, onse9uen es, in idents are go$erned by a5 %iolation o" -arital obligations may gi$e rise to )ena or 'i$i san'tions
'. A?E 6' =AB6R)5; <eter-ined b' #is 0+*S12A/ /A? :n e e-an ipated, parental aut#orit' is ter-inated, and is 9uali"ied "or all a ts o" i%il li"e, sa%e ertain e+ eptions. 2n t#e $#ilippines8 &A 6809 lowered t#e age o" -a(orit' to 18 years o d, EACEP5 marria.e4 elete this. A.e of marria.e )" 10. Are -ou referrin. to reKuirement of parental consentO )f -es/ put is as C95 marria.e reKuires parental consent if parties are &et. 10421. ?. CAPAC)5; ?E7ERAL R9LE, <eter-ined b' 0+*S12A/ /A? Atta #ed to a person w#ere%er #e is EACEP5)67, Lia&ilit- in 5ort S sub(e t to t#e law o" t#e pla e o" tort Restrictions on the contractin. capacit- of a marrie+ woman S in so-e (urisdi tions, sub(e t to t#e law go%erning t#e personal relations between t#e spouses C67'L)C5" 6' LA< PR6CLE=, w#en a person w#o is "ull' apa itated under #is personal law enters into a ontra t w#i # will be per"or-ed in a "oreign ountr'
As a /$;02AL 0:=*&A0*8
2=/>LA& C:I;&=7;=* I 1&A=M 319094 'AC5", 2nsular Co%ern-ent o" t#e $#ilippines entered into a ontra t "or wit# Ceorge 1ran., to wor. as a stenograp#er. 1ran. re ei%ed ad%an es to o%er #is tra%el e+penses. *#e ontra t pro%ided t#at in ase o" %iolation, 1ran. would be liable "or t#e a-ount e+pended b' t#e go%ern-ent "or #is e+penses. Ae"ore one "ull 'ear lapsed on t#e ontra t, 1ran. le"t t#e o-pan' and re"used to "urt#er o-pl' wit# t#e ter-s o" t#e ontra t. 2n t#e a tion o--en ed b' 2nsular, 1ran. alleged #e was a -inor at t#e ti-e t#e ontra t was entered into 3t#us -a.ing t#e ontra t %oid4. )""9E, ,:= 1ran. was a -inor 3w#at law applied to #i-4 >EL ,
1. Philippine Polic- on =arria.e an+ the 'amil- Art. FG, =ec. *, &534 (onstitution 8 T7arriage as an in%iolable so ial institution is t#e "oundation o" t#e "a-il' and s#all be prote ted b' t#e /tate.U - Presumption of Galidity of Marriage, Art. **J, (( 8 *#is rule is "ollowed in order to gi%e stabilit' to t#e institution o" -arriage espe iall' in on"li t-o"-laws proble-s. 2. Extrinsic :ali+it- of =arria.e - 1ollow le+ lo i elebrationis 3law o" t#e pla e o" elebration4. *#is is also ontained in t#e )ague 0on%ention on 0elebration and &e ognition o" t#e Ialidit' o" 7arriages 3Arti le 24. - Ceneral rule8 All states re ogni!e as IAL2< t#ose -arriages elebrated in "oreign ountries i" t#e' o-plied wit# t#e "or-alities pres ribed t#erein. *#is is in Art. 26 o" t#e 1a-il' 0ode.
- 7xtrinsic validity o%ers 9uestions relating to t#e "or-alities or e+ternal ondu t re9uired o" t#e parties or o" t#ird persons espe iall' o" publi o""i ers, ne essar' to t#e "or-ation o" a legall' %alid -arriage. - Formal re1uisites under Art. -, Family (ode$ 314 Aut#orit' o" t#e sole-ni!ing o""i er6 324 Ialid -arriage li ense wit# e+ eptions6 334 7arriage ere-on' wit# t#e appearan e o" t#e ontra ting parties be"ore t#e sole-ni!ing o""i er and t#eir personal de laration t#at t#e' ta.e ea # ot#er as )E, in t#e presen e o" not less t#an 2 witnesses o" legal age. A 67? : C>E67? "E7? (1322) ;state o" 0#eong Aoo is lai-ed b' two parties 314 #is alleged legiti-ate #ild "ro- a -arriage ontra ted in 0#ina in 1895, and 324 #is alleged legiti-ate spouse "ro- a -arriage in Aasilan in 1896. 9:; a marriage contracted in (hina and proven mainly by a matrimonial letter is valid in the Philippines =: - *o establis# a %alid "oreign -arriage, it is "irst ne essar' to pro%e be"ore t#e ourts o" t#e 2slands t#e e+isten e o" t#e "oreign law as a O o" "a t, and it is t#en ne essar' to pro%e t#e alleged "oreign -arriage b' on%in ing e%iden e. *#ere is a need "or proo" t#at is lear, strong and une9ui%o al so as to produ e a -oral on%i tion o" t#e e+isten e o" su # i-pedi-ent 3prior -arriage4. PE6PLE : =6RA 9=P6 (1335) ,i"e was on%i ted o" biga-' and s#e appealed alleging t#at t#e se ond -arriage was null and %oid a ording t#e 7o#a--edan rites on t#e ground t#at #er "at#er #ad not gi%en #is onsent. 9:; she should be held liable for bigamy =: 2t is an essential ele-ent o" t#e ri-e o" biga-' t#at t#e alleged se ond -arriage, #a%ing all t#e essential re9uisites, would be %alid were it not "or t#e subsisten e o" t#e "irst -arriage. 2n t#is ase, t#e "a t t#at t#e "at#er did not onsent "or t#e reason t#at #e was not in"or-ed t#ereo", is "atal to t#e alleged -arriage. <67? <66 ;9 : :):6 (13!5) *#e general rule is t#at a -arriage ontra ted outside t#e $#ilippines w#i # is %alid under t#e law o" t#e ountr' in w#i # it is elebrated is also %alid in t#e $#ilippines. Aut in t#is ase, no %alidit' an be i-puted to t#e -arriage in 0#ina in t#e absen e o" proo" relati%e to -arriage laws t#erein. AP5 : AP5 (13$%) 0elebration o" -arriage b' pro+' is a -atter o" "or- o" t#e ere-on' or pro eeding, and not an essential re9uisite o" -arriage. *#ere is not#ing ab#orrent to 0#ristian ideas in t#e adoption o" t#at "or-. Ceneral rule is t#at i" a -arriage is good b' t#e laws o" t#e ountr' w#ere it is e""e ted, it is "ood all t#e world o%er, no -atter w#ere t#e pro eeding or ere-on' w#i # onstituted -arriage a ording to t#e law o" t#e pla e would or would not onstitute -arriage in t#e ountr' o" do-i ile o" one or o" t#e ot#er spouse. :oi+ marria.es in the Philippines e*en if *ali+ in forei.n countr- where cele&rate+, 1. ,#en eit#er or bot# parties are 27@:9 &3 D7A = o" age e%en wit# parental onsent6 2. 2#BAM:<= : P:@DBAM:<= -arriage6 3. M#=!AI7 A= !: #?7;!#!D o" a ontra ting part'6 4. A
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5. 6. 7.
subse9uent -arriage per"or-ed 9#!6:<! 7(: ?#;B #; !67 (#G#@ 7B#=! D t#e (udg-ent o" annul-ent or de laration o" nullit', partition and distribution o" properties and t#e deli%er' o" t#e #ildrenRs presu-pti%e legiti-es6 7arriages w#ere eit#er spouse is P=D(6:@:B#(A@@D #;(APA(#!A!7?6 #;(7=!<:<= -arriages6 and G:#? -arriages b' reason o" publi poli '
765E, *#ese e+ eptions put into issue t#e apa it' o" t#e parties to enter into t#e -arriage and t#ere"ore relate to t#e substanti%e re9uire-ent "or -arriage. /in e t#e personal law o" t#e parties, e.g. t#e national law o" 1ilipinos, go%erns t#e 9uestions o" intrinsi %alidit' o" -arriages between t#e 1ilipinos abroad, t#e abo%e enu-erations are e+ eptions to lex loci celebrationis pre isel' be ause t#e' are ontrolled b' lex nationalii. 3. )ntrinsic :ali+it- of =arria.e 4 re"er to apa it' o" a person to -arr' <eter-ined b' t#e partiesR 0+*S12A/ /A?, w#i # -a' eit#er be do-i ile or nationalit'. )ntrinsic reKuirements, 1. /+9A/ CA0AC,-A 2. 7ust 21- ;+ ;A**+8 b' an' i-pedi-ent 3. C12S+2- "reel' gi%en in t#e presen e o" an aut#ori!ed sole-ni!ing o""i er >a.ue Con*ention on :ali+it- of =arria.es allows a ontra ting state to re"use re ognition o" t#e -arriage in t#e "". ases8 i. :ne o" t#e spouses was alread' -arried ii. /pouses were related, b' blood or adoption iii. )ad not attained t#e -ini-u- age, nor a 9uired t#e ne essar' dispensation i%. <id not #a%e t#e -ental apa it' to onsent %. <id not "reel' onsent
765E, Ceneral rule on $ro+' -arriages8 ,#ere per-itted to t#e law o" t#e pla e w#ere t#e pro+' parti ipates in t#e -arriage ere-on', are entitled to re ognition in ountries ad#ering to lex loci celebrationis rule at least inso"ar as "or-al %alidit' is on erned. 2n t#e $#ilippines, law does not san tion pro+' -arriages. "6556=A;6R : E CARR6" (10%%) First cousins and void marriage) domiciled in Portugal then moved to @ondon to get married) wife filed petition to declare marriage invalid due to lac, of consent. Ouestions o" personal apa it' to enter into an' ontra t is to be de ided a ording to t#e law o" t#e do-i ile. Law o" a ountr' w#ere a -arriage is sole-ni!ed -ust alone de ide all 9uestions relating to t#e %alidit' o" t#e ere-on' b' w#i # t#e -arriage is alleged to #a%e been onstituted. Aut personal in apa it', based on law o" do-i ile, still a""e ts t#e- w#ere%er su # -arriage -a' #a%e been sole-ni!ed. )7 RE =A;I" E"5A5E (132() >ewish couple) residents of ;D and married in hode #sland) lower court ruled that marriage is void and husband did not 1ualify as administrator for estate of the deceased wife because wife was husband8s niece by blood *#e general rule is t#at i" a -arriage is %alid i" onsidered %alid in t#e pla e w#ere elebrated. *wo e+ eptions are w#en it is pro#ibited b' positi%e law and in%ol%es pol'ga-' or in est in a degree regarded generall' as wit#in t#e pro#ibition o" natural law.
re-arr' under $#ilippine law.
37
=ew For. statute does not e+pressl' de lare su # -arriages %oid 3-arriage o" its do-i iliaries sole-ni!ed in a "oreign state w#ere su # -arriage is %alid4. $. Effects of =arria.e 1. $ersonal relations between spouses 2n lude8 -arital "idelit', respe t, o#abitation, support and t#e rig#t o" t#e wi"e to use t#e #usbandRs "a-il' na-e go%erned b' t#e 2A-,12A/ /A? o" t#e parties 765E, i" t#e spouses #a%e di""erent nationalities, generall' t#e nationa a5 o% t&e &(sband -a' pre%ail as long as said law is not ontrar' to law, usto-s and good -orals o" t#e "oru-. 2. Propert- relations &etween the spouses *#e )ague 0on%ention de lares t#at t#e go%erning law on -atri-onial propert' regi-e is8 *#e internal law designated b' t#e spouses be"ore t#e -arriage 2n t#e absen e t#ereo", t#e internal law o" t#e state in w#i # t#e spouses "i+ t#eir #abitual residen e 2n t#e $#ilippines8
:ali+it- of 'orei.n i*orce &etween 'orei.ners )ague 0on%ention8 a "oreign di%or e de ree will be re ogni!ed in all ontra ting states i", at t#e date o" t#e institution o" t#e pro eedings, i. eit#er spouse #ad #is #abitual residen e t#ere6 ii. bot# spouses were nationals o" t#at state6 or iii. i" onl' t#e petitioner was a national, #e s#ould #a%e #is #abitual residen e t#ere
Art. 80, 10. 2n t#e absen e o" a ontrar' stipulation in a -arriage settle-ent, t#e propert' relations o" t#e spouses s#all be go%erned b' $#ilippine laws, regardless o" t#e pla e o" elebration o" t#e -arriage and t#eir residen e. *#is rule s#all not appl'8 (1) ,#ere bot# spouses are aliens6 (2) ,it# respe t to t#e e+trinsi %alidit' o" ontra ts a""e ting propert' not situated in t#e $#ilippines and e+e uted in t#e ountr' w#ere t#e propert' is lo ated6 and (3) ,it# respe t to t#e e+trinsi %alidit' o" ontra ts entered into in t#e $#ilippines not a""e ting propert' situated in a "oreign ountr' w#ose laws re9uire di""erent "or-alities "or t#eir e+trinsi %alidit'. 81C-*,2+ 1F ,MM.-A;,/,-A 1F MA-*,M12,A/ 0*10+*-A *+9,M+, *#e #ange o" t#e nationalit' on t#e part o" t#e #usband or wi"e or bot# does not a""e t t#e original propert' regi-e ;D0;$* w#en t#e law o" t#e original nationalit' itsel" #anges t#e -arital regi-e, #en e, t#e propert' regi-e #as to #ange a ordingl'. ):6RCE A7 "EPARA5)67
REP9CL)C : 6CREC) 6 (2((5) Filipino husband left by Filipina wife, Filipina wife was naturalized as an <= citizen then divorced him. 6e now wants a declaration allowing him to remarry again. (ourt held that A*0.* is also applicable to cases where the spouse who obtained divorce decree is a naturalized citizen of a =tate allowing divorce, provided the law allowing such divorce is proven K divorce decree proven. !he rec,oning point is not the citizenship of the parties at the time of the celebration of the marriage, but their citizenship at the time a valid divorce is obtained abroad by the alien spouse capacitating the latter to remarry . *,2= ;L;7;=*/ 1:& A$$L20A*2:= :1 A&*26.28 1. *#ere is a %alid -arriage t#at #as been elebrated between a 1ilipino iti!en and a "oreigner6 and 2. A %alid di%or e is obtained abroad b' t#e alien spouse apa itating #i- or #er to re-arr'. *#e re .oning point is not t#e iti!ens#ip o" t#e parties at t#e ti-e o" t#e elebration o" t#e -arriage, but t#eir iti!ens#ip at t#e ti-e a %alid di%or e is obtained abroad b' t#e alien spouse apa itating t#e latter to re-arr'. ):,;I;&, );&;, *); $;*2*2:= 1:& A>*):&2*F *: &;7A&&F C&A=*;< AF *0 ,A/ /;* A/2<; A;0A>/; :A&;02<: 1A2L;< *: $&:I; *); 118 1. ,i"e %alidl' obtained naturali!ation 2. 1oreign law allowing di%or e 3. ,i"e %alidl' obtained di%or e de ree "A7 L9)" : "A7 L9)" Former @aguna governor had &st spouse who predeceased him, then married again to an American citizen who divorced him, then remarried again. 6e died with his -rd wife but his *nd wife and the children in the &st marriage contested the standing of the -rd wife, claiming that the said marriage was bigamous since the *nd marriage was still subsisting under P law %can+t apply F( retroactively'. (ourt held that even with F( not applied retroactively, Gan ?orn and other "urisprudence sufficiently provides the validity to the -rd marriage, thus recognizing divorce obtained by an alien spouse against the Filipino spouse. 6owever, as the -rd marriage was not sufficiently proved, the case was remanded in order for the -rd spouse to present further evidence on this. C. A779L=E75 A7 ECLARA5)67 6' 79LL)5;
C.
)ague 0on%ention pro%ides t#at t#e granting o" di%or e or separation -ust o-pl' wit# t#e 2A-,12A/ /A? o" spouses an+ /+3 F1*, 3law o" t#e pla e w#ere t#e appli ation "or di%or e is -ade4 ?roun+s for +i*orce8 /+3 F1*, i*orce ecrees 6&taine+ &- 'ilipinos ?E7ERAL R9LE, <e rees o" absolute di%or e obtained b' 1ilipinos abroad #a%e no %alidit' and are not re ogni!ed in $#ilippine (urisdi tion. EACEP5)67, Art.26324.,#ere a -arriage between a 1ilipino iti!en and a "oreigner is %alidl' elebrated and a di%or e is t#erea"ter %alidl' obtained abroad b' t#e alien spouse apa itating #ior #er to re-arr', t#e 1ilipino spouse s#all #a%e apa it' to
*raditional approa #8 @7F @:(# (7@72 A!#:;#= $oli '- entered approa #8 law o" t#e state o" MA #!A@ ?:M#(#@7
Burisdi tion to Annul Iested in t#e ourt o" t#e domicile o" t#e parties Burisdi tion o%er t#e non-resident de"endant is not essential *#e Co%erning Law
@ex loci celebrationis S deter-ines t#e onse9uen es o" an' de"e t to "or2n general, sa-e applies wit# re"eren e to substanti%e or intrinsi %alidit'. Aut wit# regard to capacity of the parties to marry, national law is deter-inati%e ii.
38
*#e spouse o" t#e adopteeRs parent.
. PARE75AL RELA5)67" <eter-ination o" Legiti-a ' Legiti-a '8 personal law o" t#e parents 2n t#e $#ilippines8 *#e legiti-a ' o" t#e #ild is go%erned b' t#e ;A!#:;A@ @A9 o" t#e parents 2" parents belong to di""erent nationalities, legitimacy o" t#e #ild is go%erned b' t#e ;A!#:;A@ @A9 of the FA!67 $ersonal law o" t#e illegitimate child is t#e M:!67 8= P7 =:;A@ @A9. Parental Authorit- 6*er the Chil+ P7 =:;A@ @A9 of the FA!67 duties o" parents and #ild. ontrols t#e rig#ts and
)nter4countr- A+option E')7)5)67, A so io-legal pro ess o" adopting a 1ilipino #ild b' a "oreigner or a 1ilipino iti!en per-anentl' residing abroad w#ere t#e petition is "iled, t#e super%ised trial ustod' is underta.en, and t#e de ree o" adoption is issued outside t#e $#ilippines. *#is is an alternati%e -eans o" #ild@ are i" t#e #ild annot be ared "or in an' suitable -anner in t#e $#ilippines. 765E, Adoption is not one o" t#e wa's pres ribed b' law "or t#e a 9uisition o" 1ilipino iti!ens#ip Effects of A+option 5wo +ifferent le.al or+ers, 12. 2" t#e adoptersR personal law applied S sa-e law go%erns t#e e""e ts o" t#e adoption. 2" t#e personal law o" t#e #ild deter-ined t#e reation o" t#e legal relations#ip S su # law will ease and 'ield to t#e personal law o" t#e adopting parents
=:*;8 &e"eren e to t#e personal law o" t#e "at#er -a' result in (oint e+er ise o" parental aut#orit' o%er t#e propert' o" t#e #ild b' t#e "at#er and -ot#er6 or, in t#e ase o" t#e illegiti-ate #ild, to t#e -ot#er alone. E. A 6P5)67 4 t#e a t b' w#i # relations o" paternit' and a""iliation are re ogni!ed as legall' e+isting between persons not so related b' nature. omestic A+option Act of 1330 An alien -a' adopt, pro%ided #e is8 1. :" @7BA@ AB7 2. 2n possession o" all (#G#@ (APA(#!D and @7BA@ #B6!= 3. :" B::? M: A@ (6A A(!7 4. =o on%i tion o" an' ri-e in%ol%ing -oral turpitude 5. ;-otionall' and ps' #ologi all' apable o" aring "or #ildren 6. At least 16 'ears older t#an t#e adoptee 7. 2n a position to support and are "or #is #ildren 8. )is ountr' #as diplo-ati relations 9. &esiden e in t#e $#ilippines "or at least 3 ontinuous 'ears prior to t#e "iling o" t#e appli ation "or adoption and -aintains su # residen e until t#e adoption de ree is entered 10. 0erti"i ate o" legal apa it' to adopt in #is ountr' to be issued b' #is diplo-ati or onsular o""i e6 and 11. )is go%ern-ent allows t#e adoptee to enter #is ountr' as #is adopted sonGdaug#ter *#e re9uire-ent on residen ' and erti"i ate o" 9uali"i ation to adopt -a' be wai%ed "or t#e "ollowing8 i. A "or-er 1ilipino iti!en w#o see.s to adopt a relati%e wit#in t#e 4t# degree o" onsanguinit' or a""init'6 or ii. :ne w#o see.s to adopt t#e legiti-ate sonGdaug#ter o" #isG#er 1ilipino spouse6 or iii. :ne w#o is -arried to a 1ilipino iti!en and see.s to adopt (ointl' wit# #isG#er spouse a relati%e wit#in 4t# degree o" onsanguinit' or a""init' o" t#e 1ilipino spouse. *#e re9uire-ent o" 16 'ears di""eren e between t#e adopter and t#e adoptee -a' be wai%ed i" t#e adopter is8 i. *#e biologi al parent o" t#e adoptee
D222. 0):20; :1 LA, 2= $&:$;&*F A.*); 0:=*&:LL2=C LA, 4depends on ,:= t#e propert' is -o%able or not 2--o%able Le+ situs8 rig#ts, interests o" %arious person are deter-ined b' t#e law o" t#e pla e w#ere t#e land is situated 7o%able 7a' be8 1. @ex domicili 3mobilia se1uuntur personam'$they could be moved from place to place, difficult to anticipate where they may be situated at a given time 2. lex situs8 K*raditional reason8 t#e state #as t#e sole power to de ide t#e %alidit' and e""e ts o" t#e trans"er o" propert' K$oli '-oriented rationale8 parties e+pe t t#eir transa tion would be go%erned b' t#e law o" t#e pla e w#ere t#e propert' is lo ated 3. @ex loci actus 3law o" t#e pla e w#ere t#e transa tion was o-pleted4 4. $roper law o" trans"er8 law o" t#e state w#i # #as t#e -ost real onne tions wit# t#e trans"er
+A0 notes" 8i%%eren'e i% traditiona reason or )o i'y4'entered a))roa'&D 5ra+itional approach, enters on t#e territor'8 sin e it is part o" t#e territor' o" t#e state, it is t#e state5s law w#i # would go%ern Polic-4oriente+, -ost signi"i ant onta ts, state w#ose interest is less i-paired ,n *0" AR5$1$8 propert' is an't#ing t#at -a' be an ob(e t o" appropriation AR5 1!, irrele%ant i" real or personal propert' 3as regards nationals4 - le+ situs applies $roble-8 w#at i" t#e pla e w#ere t#e propert' is lo ated distinguis#es between rules appli able to real and personal propert' and t#e appli able law is not t#eir lawH ?&y *0 ado)ted /e< Sit(sD Aeing p#'si all' part o" t#e ountr', it ]t#e propert'^ s#ould be sub(e t to t#e laws t#ereo". *#e situs is t#e pla e -ost losel' and signi"i all' related to t#e issue in 9uestion
39
2n rease in t#e a-ount and %ariet' o" personal propert' not onne ted wG t#e person o" t#e owner, so adopt le+ situs e%en wit# -o%ables.
1or-alities 3e+trinsi 4 lex situs -treated as a 9uestion ontra t and not o" propert'
;ssential %alidit' 3intrinsi 4 C&8 lex situs o" D8 lex intentionis establis#ed learl'
A. 0A$A02*F *: *&A=/1;& :& A0O>2&; $&:$;&*F -go%erned b' LA, :1 *); $LA0; ,);&; *); $&:$;&*F 2/ L:0A*;<8 /+3 S,-.S LLA=*2=: I. 0: L2:=C 0):=C 319904 Fa'ts" 0o Liong 0#ong entered a ontra t wit# Llantino /ps "or a lease o" land "or a period o" 60 'ears. =ote t#at 0o Liong 0#ong was naturali!ed as a 1ilipino iti!en 3 #anged na-e to Buan 7olina4.Llantino sps wanted to re o%er t#e propert' "ro- 0o Liong 0#ong. ,ss(e" ,:= t#e lease ontra t is 2=%alid be ause at t#e ti-e o" its e+e ution, #e was a 0#ineseH :e d" =:. it was IAL2<. Lease ontra ts wit# Aliens allowed sin e an alien5s sta' in &$ is te-porar', t#e' -a' be granted te-porar' rig#ts su # as a lease ontra t w#i # is not pro#ibited b' t#e onstitution -t#e lease ontra t is %alid as long as t#ere are no ir u-stan es attendant to its e+e ution w#i # are used to ir u-%ent t#e onstitutional pro#ibition su # as an option to bu' t#e ontra t or a lease "or -ore t#an 50 'ears.An e+ eption to t#is e+ eption is w#en t#e alien subse9uentl' a 9uires $#ilippine 0iti!ens#ip. 7AP ;otes -it5s -erel' *;7$:&A&F possession o" propert' - not owners#ip -,#' pro#ibit owners#ip o" lands o" aliensH *o preser%e properties in "a%or o" 1ilipinos (677=MA; G. #A( %&55&' 1a ts A-eri an -arried to a 1ilipina. 1ilipina wi"e sold land and #ouse on it, initiall' wGo protest "ro- A-eri an #usband, but later ontesting it, raising t#at t#e sale was -ade wGo #is .nowledge and onsent 3prerogati%e o" t#e #usband in respe t to on(ugal propert'4. 2ssue ,:= t#e A-eri an #usband an ontest t#e %alidit' o" t#e saleH )eld =:. 2n a ordan e wit# t#e 0onstitution, aliens annot #a%e pri%ate lands trans"erred or on%e'ed to t#e- e+ ept in ases o" #ereditar' su ession. *#us, t#e alien #usband #ere does not #a%e personalit' to ontest t#e %alidit' o" t#e sale as t#e #usband o" t#e seller, #e not allowed to #a%e interest o%er t#e land. -note8 #ere, trial ourt "ound t#at t#e propert' was boug#t b' t#e 1ilipina wi"e wit# #er own "unds and t#e bu'er was #eld a bu'er in C1 be ause t#e alien spouse led #er to belie%e t#at t#e propert' was indeed t#e 1ilipina wi"e5s and not a on(ugal propert'. 7AP notes$ PF review$ administration and management of property is "ointly exercised by spouses Lso w#at #appens nowH -Aliens an5t #a%e on(ugal properties, or else would ontra%ene 0onsti pro%isions pro#ibiting owners#ip o" aliens -possibl', alien spouse -a' still e+er ise s#are in on(ugal properties i" it is on%erted to -o%able properties, i.e. as#NNNN - but as long as it is i--o%able, an5t own an't#ing 0.;D*&2=/20 A=< 2=*&2=/20 IAL2<2*F :1 0:=I;FA=0;/
<.;D0;$*2:=/ *: L;D /2*>/ &>L; 1. *ransa tion does not a""e t trans"er o" title to or owners#ip o" t#e land 2. ,#en transa tion is -erel' an a essor' to a prin ipal ontra t 3. *estateG2ntestate /u ession E apa it' to su eed 1. 5ransaction +oes not affect transfer of title to or ownership of the lan+ Appl-, lex intentionis or lex voluntatis L2LB;<A)L I. CLA//C:, 319214 1a ts Aaile' owed -one' to 1os.ett so #e e+e uted a -ortgage o%er a 0olorado land in "a%or o" 1os.ett. Aaile' later sold t#e -ortgaged 0olorado land to Classgow, wit# a deed ontaining a blan. spa e "or t#e insertion o" t#e na-e o" t#e grantee 3w#o would t#en assu-e t#e liabilit' in t#e -ortgage4. Classgow -ade subse9uent trans"ers. 1os.ett trans"erred #is interest to Lil(edal so w#en t#e debt was due and Aaile' was not able to pa', Lil(edal sued Classgow, et al. As a de"ense, t#e' alleged t#at in t#e le+ situs, #e is not liable as #e did not pla e #is na-e in t#e blan.. 2ssue ,:= t#e lex situs would appl', and not t#e lex intentionisH )eld @ex intentionis 3w#ere t#e trans"eree is liable "or pa'-ent o" obligation upon -ere a eptan e " deed4 2nstru-ents o" on%e'an e pri-aril' or dire tl' relating to t#e tile "ollow le+ rei sitae6 personal o%enants or agree-ents in instru-ents o" on%e'an e "ollow law o" t#e pla e w#ere t#e sa-e is e+e uted and to be per"or-ed 0ontra ts -ade and to be per"or-ed in a parti ular state are -ade wit# re"eren e to t#e law o" t#at state.*#e parties -a' be presu-ed to #a%e ontra ted wit# re"eren e to t#e law o" 2owa, w#ere t#e ontra t was e+e uted and to be per"or-ed, and t#at t#e' intended to be bound in a ordan e t#erewit#. 2. <hen transaction is merel- an accessor- to a principal contract (i.e. mort.a.e for a loan) A)) y$ lex situs applies to t#e -ortgage ontra t 3t#us, t#is is still not an e+ eption4 but law on ontra ts go%ern t#e prin ipal ontra t 3. 5estate#)ntestate "uccession P capacit- to succee+ A)) y8 lex nationali or t#e national law o" t#e de edent 3A16.2, =004 :n Movables$ Polic-4centere+ approach, "oruourt not bound to loo. to t#e law o" t#e situs w#en Jt#e situs is 2=/2C=2120A=* :& 2=02<;=*AL e.g. pla e -erel' #osen "or on%enien e o" one o" t#e parties, w#en t#e' bot# .now t#at t#e propert' would be used so-ew#ere else Jw#en t#e issues in%ol%es onsiderations ot#er t#an t#e %alidit' and e""e t o" t#e trans"er itsel" QQQAPPL;, law o" t#e pla e w#i # #as real interest in t#e propert' ;./2*>/ :1 0;&*A2= $&:$;&*2;/ 1. ")59" 6' PER"67AL PR6PER5; '6R 5AA P9RP6"E"
-0A=5* appl' mobilia se1uuntur personam 3#ad its origins in onsiderations o" general on%enien e and publi poli '4 mobilia se1uuntur personam$ a o--on law do trine #olding t#at personal propert' #eld b' a person is go%erned b' t#e sa-e law t#at go%erns t#at person, so t#at i" a person w#o is legall' do-i iled in one (urisdi tion dies wit# propert' in a se ond (urisdi tion, t#at propert' is legall' treated as t#oug# it were in t#e "irst (urisdi tion. -/*A*; #as rig#t to ta+ propert' wGn its (urisdi tion - an5t be applied i" it would result in ines apable and patent in(usti e A/2A*20 $;*&:L;>7 I. 0: O>20: 319404 Jwarning8 not a ta+ ase so ligaw 1a ts8 0o Oui o was an agent o" Asiati $etroleu- w#o de"aulted in pa'-ent o" t#e pro eeds o" #is sale "or t#e latter o-pan'. 0o-pan' "iled suit to re o%er a-ount, atta #ed #is ban. deposits wG 7er antile Aan. o" 0#ina. 2ssue ,:= t#e ourt %alidl' e+er ised (urisdi tion o%er t#e propert' o" 0o Oui o e%en i" t#e ourt did not a 9uire (urisdi tion o%er #is personH )eld F;/. All propert' wGn a state is sub(e t to t#e (urisdi tion o" its ourts, and t#e' #a%e t#e rig#t to8 Ad(udi ate title t#ereto ;n"or e liens t#ereupon /ub(e t it to t#e pa'-ent o" t#e debts o" its owners Lw#et#er residents or not --odern tenden ' is to -a.e =: <2/*2=0*2:= A;*,;;= 7:A2L2*F A=< 277:A2L2*F :1 $&:$;&*F establis#ed b' t#e ti-e #onored prin iples o" le+ rei sitae and -obilia personase9uuntur Re*iew, Cf, Penno-er *s. 7eff, 2" personal a tions, s#ould gi%e su--ons personall' and not t#roug# publi ation or else no (urisdi tion o%er person o" de"endant Kuasi in rem, e =i+.ele- *. 'eran+os, A 9uasi in re- a tion is an a tion between parties w#ere t#e dire t ob(e t is to rea # and dispose o" propert' owned b' t#e- or so-e interest t#erein. Burisdi tion was a 9uired be ause it was a 9uasi in re- a tion, w#ere (urisdi tion o%er t#e person is not re9uired and w#ere t#e ser%i e o" su--ons is re9uired onl' "or t#e purpose o" o-pl'ing wit# t#e re9uire-ent o" due pro ess. )n rem, w#ere t#e dire t ob(e t is to rea # and dispose o" propert' owned b' t#e-. 3i.e. testa-entar' pro eeding w#i # is an a tion in re- par e+ ellan e4 2. ")59" 6' =67E; L;:= I. 7A=>1A0*>&;&/ L2;1 2=/>&A=0; 0:. 319214 %warning$ "ust mentioned in the body of ma8am8s discussion, not separate case discussion so ung ibang parts hula lang' 1a ts -Leon probabl' wanted to re o%er -one' "ro- an instru-ent endorsed in an annuit' in 0anada so #e sued t#e lo al bran # or agen ' o" 7anu"a turers Li"e 2nsuran e in &$ to re o%er )eld /in e t#e -one' to be re o%ered was "ro- an instru-ent endorsed in an annuit' in 0anada under a ontra t e+e uted in t#at ountr', 0A=A<A ,A/ *); /2*>/ :1 *); 7:=;F -t#e lo al bran # i-pleaded deli%ered to t#e annuitant t#e #e .s -ade out and issued "ro- t#e #o-e o""i e in 0A=A<A, but no s#owing t#at t#e "unds 3t#e -one'4 was indeed trans"erred "ro0A=A<A to t#e #o-e bran # Fcha, :nl' 0#e .s were in t#e lo al bran #, not -one'. $robabl', t#e pleading pra'ed t#at -one', not #e .s were to be le%ied on or so-et#ing. AooL t#is ase is labo
40
3. ")59" 6' EC5" -still >=/;**L;< in &$ -suggested t#at t#e law wG go%erns t#e ontra t "ro- w#i # t#e debt arises s#ould go%ern t#e trans"er o" t#e debt * ,inds of movable property$ 1. 0#oses in possession8 all .inds o" *A=C2AL; $)F/20AL :AB;0*/ 2. 0#oses in a tion8 2=*A=C2AL; ob(e ts a. 7ere rig#ts o" a tion8 debt arising "ro- a loan b. &ig#ts represented b' a do u-ent8 apable o" deli%er', sus eptible to negotiation as a separate legal entit' )A&&2/ I. AALM 319054 1a ts )arris owed Aal. Y180 3in =ort# 0arolina4, w#o owed -ore t#an Y300 to ;pstein 3in 7ar'land4. ,#en )arris was in 7ar'land, ;pstein ser%ed a writ o" atta #-ent to t#e debt o" )arris to Aal.. Aa . in =ort# 0arolina, Aal. wanted to olle t "ro- )arris. 2ssue ,:= t#e situs o" debt and atta #-ent o" debtH #ara ter o" sta' i-portant in
)eld =o. *#e obligation o" t#e debtor to pa' #is debt lings to and a o-panies #i- w#ere%er #e goes -2" t#e garnis#ee be "ound in t#e /tate, and pro ess be personall' ser%ed upon #i- t#erein, t#e ourt a 9uires (urisdi tion o%er #i-, and an garnis# t#e debt due "ro- #i- to t#e debtor o" t#e plainti"" and onde-n it, pro%ided t#at t#e garnis#ee ould #i-sel" be sued b' #is reditor in t#at /tate -$ower o%er t#e person o" t#e garnis#ee on"ers (urisdi tion on t#e ourts o" t#e /tate w#ere t#e writ issues. 2", w#ile te-poraril' t#ere, #is reditor -ig#t sue #i- t#ere and re o%er t#e debt, t#en #e is liable to pro ess o" garnis#-ent, no -atter w#ere t#e situs o" t#e debt was originall' -$ossession annot be ta.en o" a debt or o" t#e obligation to pa' it as tangible propert' -ig#t be ta.en possession o" ( #!#L<7 !: !67 (A=7$ * premises which led to the conclusion in the case$ 1. <ebt t#oug# intangible, is sub(e t to sei!ure li.e tangible propert' 2. *#e debt is L:0A*;< w#ere t#e debtor is - an be sued w#ere%er #e is -A>* *)2/ 7AM;/ *); 0&;<2*:& );L$L;// *: 12D *); $;&/:=AL $&;/;=0; :1 *); <;A*:& A* :=; $LA0; :& A=:*);& L>n(ust to sub-it t#e reditor5s lai- to t#e a ident o" t#e debtor5s presen e in one state or anot#er $. ")59" 6' C6RP6RA5E ">ARE" 6' "56CG" 0orporation 0ode8 /;0 63 Ls#ares o" sto . issued b' t#e orp are $;&/:=AL $&:$;*F L-a' be trans"erred b' <;L2I;&F :1 *); 0;&*220A*; :& 0;&*2120A*;/ 2=<:&/;< AF *); :,=;& :& )2/ A**:&=;F 2= 1A0* or ot#er persons legall' aut#ori!ed to -a.e t#e trans"er Ialid *rans"er -%alid between parties :=LF8 not 'et re orded -w#en %alid to e%er'one8 re orded in t#e boo.s o" t#e orporation Ls#ows t#e na-es o" t#e parties to t#e transa tion Ldate o" trans"er Lnu-ber o" erti"i ate or erti"i ates Lnu-ber o" s#ares trans"erred 02& I. A=CL: 0AL21:&=2A =A*2:=AL AA=M 319604
1a ts 02& wanted to olle t Pde"i ien 'P in o-e and apitl gainst ta+ "ro- 0ala-ba /ugar ;state 2n . "or t#e sale o" apital sto . o" $a-panga />gar 7ills 3w#i # was onsu-ated in 0ali"ornia4. 2ssue ,:= 02& ould i-pose in o-e ta+ and apital gains ta+ on sales o" s#ares o" sto . 3lo ated in &$4 w#i # was onsu-ated in 0ali"orniaH )eld =o. *#e =2&0 i-poses in o-e ta+ on orporations onl' on in o-e deri%ed "ro- sour es wGn &$. *#e =2&0 also de"ines t#e sour e o" apital gains ta+ as t#e pla e o" sale. /in e t#e pla e o" t#e sale is outside t#e $#ilippines, t#e in o-e is t#us deri%ed "rooutside t#e $#ilippines, and so t#e orporation ould not be ta+ed "or t#e said transa tions. -:n argu-ent o" 02& t#at t#e situs o" t#e s#ares o" sto . w#i # is t#e sub(e t o" t#e sale is in &$, t#us, t#e apital gains is deri%ed in &$8 no in o-e ta+ i-posed on t#e s#ares t#e-sel%esN -t#e sub(e t o" t#e pro eedings is t#e in o-e deri%ed b' t#e sale o" t#e s#ares o" sto ., =:* t#e in o-e deri%ed "ro- t#e s#ares itsel"N 1. $A*;=*/, *&A<;7A&M/, *&A<; =A7;, 0:$F&2C)* Paris (onvention of &35- %<nion (onvention for the Protection of #ndustrial Property' -&$ be a-e a part' to it on /epte-ber 1965 -prote ts *&A<; =A7; in all ountries o" t#e >nion wGo obligation o" registration, ,:= it "or-s part o" t#e trade na-e ,;/*;&= ;O>2$7;=* A=< />$$LF 0: I. &;F;/ 319254 A "oreign orporation wanted to en(oin a do-esti orporation w#o intends to use t#e "oreign orp5s na-e in &$, and would engage in t#e sa-e business as t#e "oreign orp, "ro- using its na-e. 2ssue ,:= t#e "oreign orporation #as legal apa it' to sue to prote t its reputation e%en i" itRs not registered nor is doing business in &$H )eld Fes. *#e rig#t to use t#e o-pan'5s orporate and trade na-e is a propert' rig#t w#i # -a' be asserted against t#e w#ole world. -)A=:I;& /*A& 72LL2=C I. ALL;= A=< ,);;L;& 0:&$8 trade-ar. a .nowledges no territorial boundaries o" -uni ipalities or states or nations, but e+tends to e%er' -ar.et w#ere t#e trader5s goods #a%e be o-e .nown and identi"ied b' t#e use o" t#e -ar. RA 0233, )75ELLEC59AL PR6PER5; C6 E 6' 1330 -establis#ed t#e 2ntelle tual $ropert' :"i e -does not allow orps to register as t#eir trade na-es t#ose w#i # are 1. ,ell .nown internationall' and in t#e &$, ,:= registered in &$ 3alread' used as a -ar. b' so-e ot#er person4 2. >sed "or identi al or si-ilar goods or ser%i es -allows a orporation wG -a' not be engaged in business or is not registered in &$ to still "ile suit 3 i%il or ad-inistrati%e4 to prote t its trade na-e 3note8 onl' owners o" registered -ar.s in &$ an re o%er da-ages "or trade-ar. in"ringe-ent4 $)2L2$/ ;D$:&* AI I. 0A 319924 1a ts 1oreign 0o-pan' 3$#ilips ;+port AI4 and orporations allowed to use its na-e 3$#ilips ;le tri al La-ps and $#ilips 2ndustrial <e%elo-ent 0orp4 wanted t#e an ellation o" t#e 0erti"i ate o" &egistration o" /tandard $)2L2$/ 0orp., a do-esti orporation w#i # allegedl' wanted to ride on t#e popularit' and na-e o" t#e
41
"oreign orp to sell its produ ts 3w#i #, alt#oug# alleged to (ust be engaged in #ain rollers, belts, bearings, utting saw, -a' a tuall' sell t#e sa-e produ ts as t#at o" t#e o-plainant4. 2ssue ,:= t#e "oreign orporation orporateGtrade na-e ould sue to prote t its
)eld -a orporation5s rig#t to use its orporate and trade na-e is a propert' rig#t, a rig#t in rem, w#i # it -a' assert and prote t against t#e world in t#e sa-e -anner as it -a' prote t its tangible propert', real or personal, against trespass or on%ersion. 2t is regarded, to a ertain e+tent, as a propert' rig#t and one w#i # annot be i-paired or de"eated b' subse9uent appropriation b' anot#er orporation in t#e sa-e "ield -A na-e is pe uliarl' i-portant as ne essar' to t#e %er' e+isten e o" a orporation. 2ts na-e is one o" its attributes, an ele-ent o" its e+isten e, and essential to its identit'. *#e general rule as to orporations is t#at ea # orporation -ust #a%e a na-e b' w#i # it is to sue and be sued and do all legal a ts. *#e na-e o" a orporation in t#is respe t designates t#e orporation in t#e sa-e -anner as t#e na-e o" an indi%idual designates t#e person6 and t#e rig#t to use its orporate na-e is as -u # a part o" t#e orporate "ran #ise as an' ot#er pri%ilege granted. -A orporation a 9uires its na-e b' #oi e and need not sele t a na-e identi al wit# or si-ilar to one alread' appropriated b' a senior orporation w#ile an indi%idual5s na-e is t#rust upon #i-. A orporation an no -ore use a orporate na-e in %iolation o" t#e rig#ts o" ot#ers t#an an indi%idual an use #is na-e legall' a 9uired so as to -islead t#e publi and in(ure anot#er. ;7;&AL< CA&7;=* 7A=>1A0*>&2=C 0:&$:&A*2:= I. 0:>&* :1 A$$;AL/ 319954 3note8 t#is is not appli able an'-ore under t#e 2$ 0ode4 1a ts 2n t#is ase, &$ 0o-pan' used /*FL2/*20 7&. L;;. L;; international wanted t#e an ellation o" t#e said trade-ar., alleging t#at it losel' rese-bled its own trade-ar. 3P/t'listi 7r.P was (ust a s-all -ar.ing at t#e side, t#en t#e PLeeP was si-ilar to t#e PLeeP *7 b' t#e "oreign orp4. 2ssue ,:= t#e "oreign orporation5s trade-ar. is entitled to prote tion )eld =:. 0ourt #eld t#at sin e t#e international orp "ailed to pro%e prior a tual use o" 2 -ont#s be"ore t#e' #ad t#eir *7 registered in &$ ? using t#e )olisti approa # in testing t#e *7, /t'listi 7r. Lee ould still be used b' t#e do-esti orp. *#e ase su--ar' in 7a5a-5s boo. "o uses t#oug# on t#e $rior A tual >se re9uire-ent 3w#i # is -isleading be ause under t#e 2$0, it5s not re9uired an'-ore4, sa'ing t#at e%en i" t#e $aris 0on%ention pro%ides "or t#e prote tion o" *7s b' "oreign orporation e%en i" it5s not registered in &$, it doesn5t -ean t#at t#e said "oreign law is superior to our own laws. *#e in orporation prin iple in 0onsti -erel' -a.es t#e $aris 0on%ention e9ual in standing to our own laws.
D2I. 0):20; :1 LA, 2= 0:=*&A0*/ J*#e prin ipal purposes o" ontra t law8 1. to prote t t#e reasonable e+pe tations o" t#e parties to t#e ontra t 2. to se ure stabilit' in o--er ial transa tions A. 0:=*&A0*/ 2=I:LI2=C A 1:&;2C= ;L;7;=* 9hat led to the problem of conflicts lawC
42
Crowing nu-ber o" agree-ents and stipulations entered b' persons or entities o" di""erent nationalities /tates #a%e di""erent -uni ipal laws8 1or-alities o" ontra ts 0apa it' o" parties ;ssential re9uisites "or t#e intrinsi %alidit' o" ontra ts 2nterpretation o" ontra ts Law go%erning e+e ution t#ereo" J$arties intended appli able law8 prote t reasonable e+pe tations Jinterpretation rules8 appli able onl' w#en intended law an5t be as ertained 7AP ;otes 'amil- law8 usuall' won5t appl' "oreign law be ause "a-il' law would appl' t#e law w#i # re"le ts t#e %alues #eld #ig#l' b' so iet' o" t#e "oruIs. Contract Law, not -u # atta #-ent to t#e so ieties -oral -ores6 re"le t business pra ti es ;+trinsi Ialidit' 2ntrinsi Ialidit'
7odern -eans o" o--uni ations
_ *#e prin ipal purposes o" ontra t w#i # are ertaint' and stabilit' are a #ie%ed ?#=A?GA;!AB7$ _ 2" pla e -erel' in idental, no signi"i ant relations#ip wit# t#e ontra t or its per"or-an e 2. Lex loci "olutionis (law of the place of performance) =cope$ _ *i-e _ $la e _ 7anner o" per"or-an e _ /u""i ien ' o" per"or-an e _ Ialid e+ uses "or nonper"or-an e Advantage$ _ Alwa's onne ted to t#e ontra t in a signi"i ant wa' ?isadvantage$ _ Ci%es e+traterritorial e""e t to t#e laws o" t#e "or-er state 3w#ere t#e ontra t was -ade4 _ =ot #elp"ul w#en t#e ontra t s#ould be per"or-ed in 2 or -ore states wG on"li ting laws on %alidit'
Law o" t#e pla e w#ere t#e ,ould depend8 ontra t was entered 3lex loci Le+ lo i ontra tus celebrationis4 Le+ lo i solutionis Le+ loi intentionis A. ;D*&2=/20 IAL2<2*F :1 0:=*&A0*/ -"ollows law o" t#e pla e w#ere t#e ontra t was -ade 3 lex loci celebrationis4 2n+ Reinstatement/ Art1%, "ollow law o" t#e ountr' w#ere instru-ent is e+e uted "or "or-s and sole-nities Locus re.it actum8 pla e go%erns t#e a ts #f contracts entered through cablegram, telefaxM Art1319324, =008 A eptan e -ade b' letter or telegra- does not bind t#e o""eror e+ ept "ro- t#e ti-e it a-e to #is .nowledge K"" law o" t#e pla e w#ere t#e o""er was -ade 7;B7@ vs. G7@A=(:$ w#ere telegrap#i o--uni ations are "ollowed b' letters e+pressl' re"erring to t#e telegra-s and on"ir-ing t#e sa-e, su # telegra-s be o-e ad-inssible as part o" orresponden e between parties 0. 2=*&2=/20 IAL2<2*F :1 0:=*&A0*/ )ntrinsic *ali+it-, re"ers to t#e nature, ontent and e""e ts o" t#e agree-ent 7lements of a (ontract%A&-&3'$ a. 0onsent b. :b(e t . 0onsideration !here are - applicable laws$ 1. Le+ Lo i 0ontra tus 2. Le+ Lo i /olutionis 3. Le+ Lo i 2ntentionis 1. Lex Loci Contractus (law of the place of maJin.) !7=!$ loo. at t#e pla e w#ere t#e last a t is done wG is ne essar' to bring t#e binding agree-ent into being so "ar as t#e a ts o" t#e parties are on erned A?GA;!AB7$ _ &elati%e ease in establis#ing t#e pla e o" ontra ting
7A072LLA= A=< AL:;<;L I. *) IAL<;&A7A A=< /:=/ 319644 1a ts Ialdera-a entered into a ontra t wG 7a -illan in 0anada t#roug# #is agent, /plane. *#e ontra t re9uired t#at Ialdera-a a 9uire i-port li ense w#i # was ne essar' "or t#e opening o" letter o" redit 3b' 7a -illan in 0anada4. /in e Ialdera-a did not a 9uire i-port li ense, 7a -illan an elled t#e ontra t, and in urred e+penses in t#e pro ess. *#us, sues Ialdera-a. Ialdera-a now alleges as a de"ense t#at /plane was not aut#ori!ed to enter into t#e ontra t in be#al" o" Ialder-a, t#us t#e ontra t was per"e ted in 7anila, and t#e le+ lo i elebrationis is in 7anila, t#us, &$ Law appli able 2ssue ,:= &$ Law is appli able )eld =o. &egardless i" le+ lo i ontra tus or le+ lo i solutionis is applied, 0anadian law would still appl' Le+ lo i ontra tus Le+ lo i solutionis ,#en law o" ontra ting di""erent "ro- law o" per"or-an e8 law o" pla e o" per"or-an e go%erns8 Ialidit' =ature :bligation ;""e t o" t#e ontra t
law o" t#e pla e w#ere a ontra t is -ade or entered into go%erns wG respe t to8 Jnature J%alidit' Jobligation Jinterpretation 3e%en i" t#e pla e o" per"or-an e and pla e o" ontra ting is di""erent4 As to onstru tion and %alidit' o" ontra t8 law o" t#e pla e w#ere it is -ade ,#'8 t#e -uni ipal law o" a state is t#e law o" t#e ontra t -ade wGn t#at state, "or-s part o" it and -ust go%ern w#ene%er its per"or-an e is soug#t to be en"or ed -"or t#e on%enien e o" t#e ourts
,#'8 parties are presu-ed to ontra t wit# re"eren e to t#e law o" t#e pla e w#ere t#e ontra t is to be per"or-ed, o"ten restri ted to situations w#ere a ontrar' intent or agree-ent does not appear.
As would be seen "ro- t#e "ale f.o.&. :ancou*er, 7a -illan was
A. ;+trinsi Ialidit' o" ,ills
43
"irst issue, t#e law o" ontra ting is in 0anada, be ause it is #ere w#ere t#e agent o" Ialdera-a 3/plane4 per"e ted t#e ontra t wit# 7a -illan
obligated to bring t#e goods sub(e t o" t#e sale to Ian ou%er and load t#e sa-e on t#e s#ip w#i # was to ta.e t#e- to &$, at 7a -illan5s e+pense so pla e o" per"or-an e in Ian ou%er "ale c.i.f. Campomanes Ca-/ 7e.ros 6cci+ental, Kpoint o" %iew o" seller8 still in 0anada ... pla e o" s#ipping is still onsidered t#e pla e o" per"or-an e 3be ause t#is is -erel' a -odi"ied ".o.b. Kpoint o" %iew o" bu'er8 still in 0anada LIaldera-a was to open a LG0 pa'able to 7a -illan in 0anada, on"ir-ed b' 0anadian Aan. in Ian ou%er, w#i # -a' be negotiated b' t#e 0anadian Aan. o" 0o--er e, Ian ou%er, A.0. Le%en i" t#e LG0 is to be opened in 7anila, t#e pla e o" t#e bu'er5s per"or-an e and o" s#ip-ent is still in 0anada so its law would be applied
1ilipino -a.es a will abroad 1or-alities pres ribed under $#ilippine law 3 lex nationalii o =o e+press pro%ision in 00 o /en *oletino -sin e 00 A816 allows aliens to "ollow $#ilippine law in sole-nities o" will w#en e+e uting wills abroad *#ose establis#ed b' t#e ountr' w#ere t#e will is e+e uted 3lex celebrationis4 o 00A17 and A815 S le+ elebrationis "or sole-nities o" a will
Ouestions as to ele-ents ? a-ount o" da-ages pro urable "or a brea # or %iolation o" a dut' growing out o" a ontra t8 pertain to &2C)*, not a re-ed' so go%erned b' le+ lo i ontra tus 3. Lex loci intentionis -<i e' and 0#es#ire8 intrinsi %alidit' o" ontra t s#ould be go%erned b' t#e law intended b' t#e parties -L;D L:02 2=*;=*2:=2/8 usuall' e+pressed in t#e #oi eo"-law pro%ision o" t#e ontra t -w#' allowed8 _ A1306, =008 0ontra ting parties -a' stipulate w#ate%er t#e' want as long as not ontrar' to ` Law ` 7orals ` Cood usto-s ` $ubli order ` $ubli poli ' _ 0#e . i" A1307 or 13068 as to interpretation o" intent o" parties C&8 i" ter-s lear, literal -eaning will ontrol D8 i" ter-s un lear 3words %s. intent48 intent would go%ern based on onte-poraneous and subse9uent a ts -#ow to deter-ine 2=*;=*8 a ts o" t#e parties ? surrounding ir u-stan es Lassu-es t#at t#eir intentions are in #ar-on' wG su # a ts and ir u-stan es Jbut alwa's assu-e t#e assu-ption t#at would -a.e t#e ontra t IAL2< DI. 0):20; :1 LA, 2= ,2LL/, A<72=2/*&A*2:= :1 ;/*A*;/ ,ill An a t w#ereb' a person is per-itted wit# t#e "or-alities pres ribed b' law to deter-ine to a ertain e+tent t#e distribution o" #is estate to ta.e e""e t a"ter #is deat#. />00;//2:= A=<
2n &e ;state o" Bo#nson319184 1A0*/8 ;-il Bo#nson, >/ iti!en died in 7anila 3residen e4 lea%ing a #olograp#i will w#i # was signed b' two instead o" t#ree witnesses re9uired b' se 618 o" t#e ode o" 0i%il $ro edure. *#e will was ad-itted to probate pursuant to /e 636 o" t#e 0ode o" 0i%il $ro edure on t#e ground t#at t#e will was in a ord wit# t#e law o" t#e state o" 2llinois o" w#i # Bo#nson was at t#e ti-e #is deat# a iti!en o" 2//>;8 ,:= $#ilippine law or 2llinois law s#ould appl' );L<8 *#e allegation is -erel' t#at t#e testator was a resident o" t#e $#ilippine 2slands. 2llinois law s#ould appl' be ause t#e ase s#ould be go%erned b' t#e national laws o" t#e testator.
7xtrinsic Galidity of >oint 9ills 1ilipinos pro#ibited "ro- -a.ing (oint wills, eit#er #ere or abroad 3Arts.818-819,004 be o ,ill is purel' personal and unilateral o 2tRs ontrar' to re%o able #ara ter o" will o 2t -a' e+pose testator to undue in"luen e and -a' e%en te-pt one to .ill anot#er. Boint wills o" alien s#ouldnRt be probated i" it a""e ts 1ilipino #eirs
7xtrinsic Galidity of 6olographic 9ills Aab o . *e-pleton % &ider Aob o .319284 1A0*/8 2//>;8 );L<8
A. 2ntrinsi Ialidit' o" ,ills Ialidit' o" dispositions, institution o" #eirs Co%erned b' national law 0a'etano % Leonidas 319844 1A0*/8
Adora ion 0a-pos died a iti!en o" $enns'l%ania. 2n #er will #er estate was gi%en to #er siblings. )er "at#er opposed t#e probate sin e it di%ested #i- o" #is legiti-e. 2//>;8 ,:= "at#er was preterited );L<8 *#e go%erning law is $enns'l%ania law. *#e go%erning law wit# respe t to t#e intrinsi %alidit' o" wills is t#e national law o" t#e de edent .$enns'l%ania law does not #a%e a s'ste- o" legiti-es, t#us "at#er was not preterited. 0. 2nterpretation o" ,ills Co%erned b' t#e tules o" interpretation o" =ational laws o" t#e de edent <. &e%o ation :utside t#e $#ilippines o =on-do-i iliar' o" $#ilippines Law o" t#e pla e w#ere will was -ade 3le+ lo i elebrationis4 Law o" t#e pla e w#ere testator is do-i iled 3le+ do-i ilii4 o <o-iliar' o" $#ilippines Law o" do-i ile 3le+ do-i ilii4 Law o" pla e o" re%o ation 3le+ lo i a tus4 ,it#in t#e $#ilippines o 2n a ordan e wit# 00 A' i-pli ation o" law A' so-e will, odi il, or ot#er writing e+e uted as pro%ided in t#e ase o" wills A' burnin, tearing, an elling or obliterating t#e will wit# t#e intention o" re%o.ing it b' t#e testator or b' so-e ot#er person in #is presen e and e+press dire tion 0:=1L20* :1 LA,/ $roble-8 *estator re%o.es #is will in state A w#ere #e is do-i iled and t#en #anges #is do-i ile to state A w#ere #e dies. Aut t#e re%o ation is %alid in /tate A but in%alid in /tate A. ,#i # law is ontrollingH 0o--on law 8 /tate A S law o" t#e do-i ile at t#e ti-e o" deat# 0i%il law 3$#il4 S /tate A S law o" t#e pla e o" re%o ation ;. $robate ;ssentiall' pro edural, t#us "oruourt appli able 0ourt will loo. into law o" "oreign state w#ere suit was -ade as to w#et#er e+trinsi re9uire-ents #a%e been o-plied wit#. A will -ade in "oreign ountr' -a' be probated in t#e $#ilippines a"ter proo" t#at t#e will was dul' e+e uted in t#e -anner re9uired b' law and testator #ad testa-entar' apa it' 2" a will was pro%ed and allowed in "oreign ourt it -a' be allowed b' &*0 wit#out need to pro%e due e+e ution and testa-entar' apa it' /unta' % /unta' 1A0*/8 /il%ino /unta' "iled a petition "or probate o" #is "at#erRs will w#i # was allegedl' e+e uted in #ina and probated in A-o' <istri t ourt, but did not addu e e%iden e t#at t#e distri t ourt is a probate ourt and proo" o" 0#inese law on pro edure "or probate. 2//>;8
44
,:= t#e will s#ould be probated );L<8 2n t#e absen e o" proo", it -a' be presu-ed t#at 0#inese law is t#e sa-e as ours. $robate being a pro eeding in rem and rules on noti e -ust be "ollowed. /in e /il%ino did not ause t#e noti"i ation o" t#e ot#er #eirs, t#e petition was not granted. Ida. <e $ere! % *olete 1A0*/8 2//>;8 );L<8
1. Ad-inistration o" ;state *itle o" <o-i iliar' ad-inistrator is o" no e+traterritorial "or e An illar' ad-inistrator is appointed to ad-inister assets in t#e state w#ere appoi(nted *a'ag % Aenguet 0onsolidated 2n 319684 1A0*/8 $er.ins died, lea%ing a-ong ot#ers s#ares o" sto .s in Aenguet 0orp., w#i # were in t#e possession o" t#e do-i iliar' ad-inistrator. An an illar' ad-inistrator was appointed in t#e $#ilippines. 2//>;8 ,#o is entitled to possession o" t#e s#ares o" sto .sH );L<8 *#e an illar' ad-inistrator be ause t#e situs o" t#e sto .s is t#e $#ilippines w#ere t#e 0orporation is in orporated. C. *rusts
DI2. 0):20; :1 LA, 2= *:&*/ A=< 0&27;/ 5ort 1ren # word tor1uere or twist An a t or o-ission produ ing in(ur' to anot#er wit#out an' pre%ious e+isting law"ul relation o" w#i # t#e a t or o-ission -a' be said to be a natural outgrowt# or in ident. 2n Anglo-A-eri an law - 2n ludes -ali e and will"ul intention ontrast wit# /panis# on ept o" obligation arising "ro- non- ontra tual negligen e. 00Art 20E2176 S tort"easor is one w#o ontrar' to law b' #is a t or o-ission will"ull' or negligentl' auses da-age to anot#er and s#all inde-ni"' t#e latter "or t#e sa-e C67'L)C5" 56R5 LA<
A. P6L)C)E" CE>)7 1. 2.
to deter so iall' undesirable or wrong"ul ondu t to re ti"' t#e onse9uen es o" t#e tortious a t b' distributing t#e losses t#at result "ro- a ident and produ ts liabilit' *#e $oli ' be#ind tort law will -ost li.el' be a strongl' #eld poli ' o" t#e state su # t#at t#e state will not easil' displa e its own law wit# t#e law o" anot#er state. 2n deter-ining appli able on"li ts torts ases t#e spe i"i poli ies be#ind substanti%e tort law s#ould be e%aluated in lig#t o"8
o o o o o 0on"li ts torts ases o o t#e pla e o" tortious ondu t and pla e o" resulting in(ur' are di""erent and one state i-poses a #ig#er standard t#an t#e ot#er state di""eren e in produ ts liabilit' laws and %ar'ing (udi ial interpretations o" t#e e+tent o" liabilit' *#e needs o" t#e interstate and international s'ste-s up#olding t#e (usti"ied e+pe tations o" parties -ini-i!ing t#e ad%erse onse9uen es t#at -ig#t "ollow "ro- sub(e ting a part' to t#e law o" -ore t#an one state dis ouraging "oru- s#opping de isional #ar-on'
45
);L<8 A "oreign statute isnRt law in t#is state, but it gi%es rise to obligation w#i #, i" transitor',U "ollows t#e person and -a' be en"or ed w#ere%er t#e person -a' be "oundUUit is a prin iple o" i%ili!ed nations t#at %ested rig#ts are prote tedU &ig#t o" a tion is propert'. C. =6 ER7 5>E6R)E" 67 '6RE)?7 56R5 L)AC)L)5; 1. 7ost /igni"i ant &elations#ip Consi+ers the stateIs contacts with the occurrence an+ the parties o Contacts such as place of tortious con+uct/+omicile/resi+ence 5wo fol+ purpose )+entif- intereste+ state E*aluate rele*ance of these contacts to the issue in Kuestion
0on erned states o o o o &esiden e o" %i ti-s and tort"easor $la e o" business o" enterprise ;""e ts o" t#e grantGdenial da-ages is greatl' "elt /tate w#ere liabilit' reating ondu t o urred /tate w#ere in(ur' arose
o"
C. LEA L6C) EL)C5) C6==)"") Law of the place where the alle.e+ tort was committe+ +etermines the tort lia&ilit- in matters affectin. con+uct an+ safet +ifficult- arises when the lia&ilit- pro+ucin. con+uct happene+ in one place &ut the in2uries are sustaine+ in another Common law o place where the last e*ent necessar- to maJe an actor lia&le for an alle.e+ tort o a+heres to the *este+ ri.hts theor- so that if the harm +oes not taJe place then the tort is not complete+ Ci*il law o situs of the tort is the place where the tortious con+uct was committe+ o the le.alit- of oneIs act shoul+ &e +etermine+ &- the law of the state where he is at the time he +oes such act Actor lia&le &- lex loci +elicti is lia&le e*er-where (*este+ ri.hts theor-) ALAAA7A C&;A* /:>*);&= &A2L&:A< % 0A&&:LL 318924 1A0*/8 *#e negligent a t o" "ailure to inspe t t#e lin.s atta #ing t#e ars o urred in Alaba-a w#ere re o%er' is allowed but t#e de"e ti%e lin. bro.e and in(ured 0arroll in 7ississippi );L<8 1or in(ur' in"li ted elsew#ere t#an in Alaba-a our statute gi%es no rig#t o" re o%er' and t#e aggrie%ed part' -ust loo. to t#e lo al law to as ertain w#at #is rig#ts are. L:>0M/ I /*A=<A&</ :2L 319134 1A0*/8 ,i"e and #ildren are suing ,in =ew For., /tandard :il "or t#e deat# o" Lou .s w#o was run down and .illed b' t#e latterRs ser%ant in 7assa #usetts w#ere re o%er' "or su # deat# is allowed. 2//>;8 ,:= Lou .s -a' sue in =ew For. on a tort o--itted in 7assa #usetts ,in%o.ing
oes not call for a mechanical countin. of contacts/ the court locali1es the state with the most si.nificant relation ans assesses the transaction in li.ht of the rele*ant polic- consi+erations of the intereste+ states an+ their un+erl-in. policies
/A><2 A&AA2A A2&L2=;/ I 0A 319984 1A0*/8 7orada was e-plo'ed as an 1A b' /audi Airlines. 0o-;;s atte-pted to rape #er in Ba.arta. /#e was tri .ed b' /A><2A o""i ers w#i # led to #er on%i tion. ,it# t#e assistan e o" $#il ;-bass' 2n Bedda# /audi Arabian :""i ers ad-itted t#at s#e was wrong"ull' on%i ted. /A><2A ter-inated #er e-oplo'-ent. /#e "iled suit based on A19 in &*0 7a.ati. /audia #allenged t#e ourtRs (urisdi tion 2//>;8 ,:= &*0 7a.ati #as B< ,#at is t#e appli able law );L<8 1. a. &. 2. Fes. Aased on t#e allegations in t#e o-plaint and in lig#t o" t#e &:0 &*0 7a.ati #as (urisdi tion o" t#e ase. Pra.matic consi+erations such as con*enience of the parties/ enforcea&ilit- of 2u+.ment wei.h in fa*or of R5C exercisin. B . $#ilippine law is appli able, a. *raditional approa # - onsidering t#at t#e ase is a tort lai- t#e onne ting "a tor is t#e pla e o" t#e torious ondu t 3le+ lo i a tus4 b. /tate o" t#e -ost signi"i ant relations#ip t#e "ollowing onta ts all poin to t#e $#ilipinesS pla e w#ere t#e in(ur' o urred,do-i ile nationalit' and residen e o" parties, pla e o" relations#ip 0#oi e o" law proble-s see. to answer two i-portant 9uestions 314 w#at legal s'ste- s#ould ontrol a gi%en situation w#ere signi"i ant "a ts o urred in two or -ore states 324to w#at e+tent s#ould t#e legal s'ste- regulate t#e situation
2. 2nterest Anal'sis 0onsiders rele%ant on erns t#at state -a' #a%e in t#e ase and its interest in #a%ing its law applied <eter-ine "irst t#e e+isten e o" a true or "alse on"li t o 1alse on"li t Sonl' one state is interested in #a%ing its law applied and t#e "ailure to appl' t#e ot#er stateRs law does not i-pair t#e poli ' re"le ted in t#at law o Apparent on"li t S -ore t#an one state #as an apparent interest in appl'ing its law o *rue on"li t S bot# states #as a real interest in appl'ing t#eir law 3. 0a%erRs $rin iple o" $re"eren e <eals wit# rules t#at san tion so-e .inds o" ondu t engaged in b' de"endant in one state and e+tends t#e bene"it o" t#is #ig#er standard o" ondu t and "inan ial prote tion to t#e plainti"" e%en i" t#e state o" in(ur' does not reate analogous liabilities <ris o /0)72<* I <&2/0:LL ):*;L 319574 1A0*/8 <ris oll #otel37innesota4illegall' sold li9uor to /orensen 3dri%er o" / #-idt4. As a result o" /orenseRs into+i ation, t#e ar turned o%er in ,is onsin. *#e' sued <ris oll )otel in 7innesota "or t#e illegal sale w#i # in turn aused t#e a ident. 2//>;8 ,:= 7innesota ourt #as (urisdi tion e%en i" t#e in(ur' o urred in ,is onsin );L<8 Fes. *#e restate-ent s#ould not be applied i" t#e plainti"" will not #a%e a re-ed' against t#e li9uor dealer. >nder t#e $rin iple o" e9uit' and (usti e 7innesota law s#ould be applied w#i # pro%ides #i- wit# a re-ed'. All t#e parties were residents o" 7innesota, <ris oll was li ensed under 7innesota, t#e %iolation o" 7innesota law o urred t#ere and t#e wrong"ul ondu t was o--itted in 7innesota. *#e wrong"ul ondu t #ere was t#e illegal sale o" li9uor.
46
0lai-s "or da-ages arising "ro- torts o--itted abroad -a' be gi%en due ourse in t#e "oruourt i"8 o 1oreign tort is based on a i%il a tion and not a ri-e o 1oreign tort is not ontrar' to t#e publi poli ' o" t#e "oruo Budi ial -a #iner' o" "oru- ade9uate to satis"' t#e lai<e"endant in a transanational tort is o"ten used in a "oreign ourt against #is will o *#ere -a' be a proble- o" legiti-a ' o" t#e (urisdi tion and %alidit' o" t#e de ision.
2. $rodu ts Liabilit' o" t#e 1oreign 7anu"a turer /uits -a' be based on8 o =egligen e o /tri t liabilit' in tort o Area # o" warrant' against #idden de"e ts *'pi al s enario in a produ t liabilit' suit8 o $lainti"" pur #ases "oreign--ade produ t o $lainti"" ingests produ t or uses it in its unaltered ondition and su""ers in(ur' o $rodu t liabilit' a tion broug#t against t#e -anu"a turer in #is #o-e state
A/A)2 7;*AL I /0 :1 0AL21:&=2A 319874 "ummarAsa#i -anu"a tures tire %al%es in orporated into tires -anu"a tured b' a *aiwan o-pan'. *#e tires are t#en sold all o%er t#e world. 2n t#e >/, a dri%er in a -otor ' le ras# sued t#e *aiwanese o-pan' "or produ t liabilit'. A ross o-plaint was "iled b' t#e *aiwanese o-pan' against Asa#i but e%entuall' a settle-ent was rea #ed between t#e dri%er and t#e *aiwanese o-pan'. Asa#i posited t#e argu-ent t#at w#ile it .new t#at t#e tire %al%e asse-blies would end up t#roug#out t#e >/, it ne%er en%isioned t#at its li-ited sales to t#e *aiwanese o-pan' would be sub(e t to lawsuits in 0ali"ornia. )ssue ,:= Asa#i purpose"ull' establis#ed -ini-u- onta ts in t#e >/ >el+ =: 7ini-u- onta ts is based on a ts b' w#i # t#e de"endant a%ails itsel" purpose"ull' o" t#e pri%ilege o" ondu ting business in t#e state. *#e substantial onne tion between t#e de"endant and t#e "oru- state -ust o-e about b' a tion o" t#e de"endant purpose"ull' dire ted towards t#e "oru- state. $utting oneRs produ ts in t#e strea- o" o--er e is not an a t dire ted towards t#e "oru- state. =ociete ;ationale #ndustrille Aerospatiale vs. @ee Iui o )eli opter -anu"a tured b' Aerospatiale, a 1ren # o-pan', owned b' an ;nglis# o-pan' and operated and ser%i ed b' a 7ala'sia o-pan' ras#ed in Arunei and .illed a Arunei resident. *#e widow and ad-inistrators broug#t an a tion in Arunei against t#e 7ala'sian o-pan' and Aerospatiale and AerospatialeRs asso iated o-pan' in *e+as. o 2t was #eld t#at t#e %i ti- #ad no onne tion wit# *e+as and (urisdi tion on t#e *e+as o-pan' was asserted on t#e -ere "a t t#at Aerospatiale was doing business in t#at state. 2t would be oppressi%e to allow t#e plainti""s to ontinue wit# t#e *e+as
American (ontributions to (onflicts !ort @aw ?etermination of whether the law where the tort was committed or the law of the domicile of the parties is the controlling law o @aw of tort proper law in 1uestions involving regulation of conduct o @aw of the domicile- governs in matters that relate to loss-distribution or financial protection . '6RE)?7 56R5 CLA)=" *ortious liabilit' is transitor' o Liabilit' resulting "ro- t#e ondu t is dee-ed personal to t#e perpetrator o" t#e wrong and it "ollows #i- w#ere%er #e -a' go o 0o-pensations -a' be e+a ted "ro- #i- in an' proper tribunal w#i # -a' be obtain (urisdi tion o" t#e de"endantRs person o &ig#t to sue is not on"ined to t#e pla e w#ere t#e ause o" a tion arises An a tion "or tort -a' be broug#t w#ere%er t#e tort"easor is sub(e t to suit.
1. 0onditions "or t#e ;n"or e-ent o" *ort 0lai-s
pro eedings as Aerospatiale would not be able to pursue legal pro eedings against t#e 7ala'sian o-pan'. 2ier vs. Mines de Potasse$ <ut # gardener operated nurseries near &otterda- using water "ro- t#e &#ine ri%er to irrigate #is "ield. )e "iled an a tion against a 1ren # -ining o-pan' in =et#erlands on t#e ground t#at it was dis #arging pollutants into t#e ri%er. *#e ourt #eld t#at #e ould sue eit#er in 1ran e or in =et#erlands.
47
=overeignty as 2asis of >urisdiction Burisdi tion is an aspe t o" so%ereignt' o &e"ers to (udi ial, legislati%e, ad-inistrati%e o-peten e /o%ereignt' -odel #as been a epted bot# to8 o Busti"' an' e+er ise o" (urisdi tion o%er a de"endant present wit#in t#e territor', #owe%er s#ort 3Ttag (urisdi tionU4 o <en' en"or e-ent o" a "oreign ourt (udg-ent o%er a de"endant w#o was not present wit#in t#at ourtRs (urisdi tion
0an be tra ed to t#e per eption o" t#e >/ t#at its o-plian e wit# t#e law o" nations was a "unda-ental on o-itant o" =ation#ood and t#e nationRs obligation to o-pl' wit# a parti ular legal dut' was supple-ented b' a -oral dut'. 0o-plian e wit# a international dut' was "or its own interests, na-el' t#e stabilit' o" o--er ial relations and national se urit' w#i #, in turn, assured all "oreigners t#at t#e' were under t#e prote tion o" (ust laws. 2t "ul"illed t#e purpose o" re ogni!ing t#e obligation o" e%er' state to t#e law o" nations as a -eans to a%ert war and #aos.
)2LA: I ;/*A*; :1 7A&0:/ 319964 "ummar0lass suit "or da-ages broug#t b' -ore t#an 10,000 plainti""s w#o su""ered torture, et . during t#e 7ar os era. *#e lai- "or da-ages was granted. *#e ;state o" 7ar os appealed, arguing t#at t#e A*0A does not appl' to ondu t t#at o urs abroad and sin e t#e a ts o-plained o" all o urred in t#e $#ilippines t#us t#e ourt #as no (urisdi tion. )ssue ,:= t#e ourt #as (urisdi tion >el+ F;/ *#e sub(e t -atter (urisdi tion was not inappropriatel' e+er ised e%en t#oug# t#e a tions o urred outside t#e >/. An' a tion against 7ar os "or torture, disappearan e or su--ar' e+e ution was tolled during t#e -artial law period. *#e prin iple o" o--and responsibilit' is well-a epted in >/ and international law. 2t is t#e dut' o" t#e o--ander to ontrol t#e operations o" t#e -e-bers o" #is o--and b' per-itting t#e- to o--it atro ities. 12LA&*2CA I $;=A-2&ALA 319804 "ummar1ilartiga was a $aragua'an see.ing as'lu- in t#e >/. )e "iled an a tion against "ellow $aragua'an $ena-2rala "or t#e deat# o" 1ilartigaRs son in $aragua'. *#e a tion #ad been o--en ed in t#at ountr' but was unsu ess"ul. *#e distri t ourt dis-issed t#e o-plaint on t#e ground o" (urisdi tion. )ssue ,:= t#e >/ ourt #as (urisdi tion >el+ F;/ *#is a tion is an a tion b' an alien "or a tort onlu o--itted in %iolation o" t#e law o" nations. A wrong is re ogni!ed as a %iolation o" t#e law o" natons w#ere t#e nations o" t#e world #abe de-onstrated t#at t#te wrong is o" -utual and not -erel' se%eral on erns. :""i ial torture is pro#ibited b' t#e law o" nations. A state or nation #as a legiti-ate interest in t#e orderl' resolution o" disputes a-ong t#ose wit#in its orders and w#ere t#e le+ lo i deli ti o--issi is applied, it is an e+pression o" o-it' to gi%e e""e to t#e laws o" t#e state w#ere t#e wrong o urred. !ra"ano vs. Marcos8 2n t#e a-i us brie" o" t#e >/ Busti e <epart-ent, it was ad%o ated t#at t#ere s#ould be a narrower interpretation o" t#e Alien *ort /tatute and s#ould e+ lude ases between aliens "or #u-an rig#ts %iolations o--itted wit#in t#e aliensR do-esti (urisdi tion.
,, I:LM/,AC;= 0:&$ I ,::</:= 319804 "ummar&obinsons were =ew For. residents w#o pur #ased a ar "roIol.swagen retailer in =ew For.. *#e' sued t#e ,o.lswagen retailer and w#olesaler in :.la#o-a be ause o" a ar a ident w#i # o urred in :.la#o-a. Iol.swagen asserts t#at t#e e+er ise o" (urisdi tion o%er t#e- would be %iolati%e o" li-its on state (urisdi tion. *#e :.la#o-a ourt #eld t#at personal (urisdi tion was aut#ori!ed b' :.la#o-aRs long-ar- statute. 2n persona- (urisdi tion was allowed o%er t#e a ident in :.la#o-a b' an a tGo-ission o--itted outside :.la#o-a i" t#e business is done regularl' in :.la#o-a. )ssue ,:= :.la#o-a ourt #as (urisdi tion Proce+ure =: A state -a' e+er ise (urisdi tion o%er a nonresident de"endant onl' i" t#ere are -ini-u- onta ts establis#ed in t#e state. *#is is to prote t t#e de"endant "ro- t#e burden o" litigating in a distant "oru- and also ensures t#at states do not rea # out be'ond t#e li-its i-posed upon t#e-. EAP, )n Asahi/ e*en if there were minimum contacts/ it faile+ the reasona&leness test. Criticism for Asahi, LA++itional actsM reKuirement is a rein*ention of the stream of commerce law. 5he fear is that the court mi.ht .o &acJ to pre4)nternational "hoe stan+ar+s in 2uris+iction. )n :olJswa.en/ the onl- reKuirements for the exercise of 2uris+iction were minimum contacts an+ the reasona&leness testN Asahi +i+ not follow this an+ inclu+e+ an a++itional reKuirement.
3. Alien *ort A t Crants >/ distri t ourts original (urisdi tion o%er an' i%il a tion b' an alien "or tort o--itted in %iolation o" t#e law o" nations or a treat' o" t#e >/.
C>2=*: I 7A&0:/ 319864
48
"ummarCuinto and /uare! are 1ilipinos w#o reisde in 0ali"ornia. *#e' "iled a o-plaint alleging t#at t#eir rig#t to "ree spee # was %iolated b' 7ar os w#en t#e' sei!ed and restrained t#e distribution o" t#e "il- T100 <a's in /epte-ber.U )ssue ,:= 7ar os ould be #eld liable under t#e A*0A >el+ =: *#e test to deter-ine w#en a %iolation o" t#e law o" nations #as o urred is w#en t#ere #as been a %iolation b' one or -ore indi%iduals o" t#ose standards, rules or usto-s w#i # a4 a""e t t#e relations#ip between states or between an indi%idual and a "oreign state and b4 used b' t#ose states "or t#eir o--on good andGor dealing inter se. A %iolation "o t#e rig#t to "ree spee # does not rise to t#e le%el o" su # uni%ersall' re ogni!ed rig#ts as to onstitute a %iolation o" t#e law o" nations. *#e A*0A (usti"ies e+er ise o" ourt (urisdi tion o%er o-pletel' "oreign tort ases be ause o" t#e uni%ersal e%il e+e-pli"ied b' #u-an rig#ts %iolations. *#is is a departure "ro- t#e pre%alent t#eories applied in deter-ining tort liabilit' sin e t#ere are no signi"i ant onta ts between t#e ourts and t#eir parties and e%ents nor substantial state interest in t#e ase ot#er t#an a general desire "or o-plian e wit# usto-ar' international law. *#ere is a need to establis# t#at t#e tortuous ondu t %iolated an internationall' prote ted #u-an rig#t. 2n Cuinto, t#e ourt ruled t#at t#e prote tion against t#e urtail-ent o" "ree spee # #as not r'stalli!ed into an obligation o" state under usto-ar' international law. 2n 1ilartiga, it is sa"e to sa' t#at it an be in%o.ed "or uni%ersal e%ils su # as geno ide and sla%er'.
w#ere t#e libelous arti le was printed and "irst publis#ed. *#e o-plaint was "iled in t#e &i!al 012. )ssue ,:= t#e ase s#ould be dis-issed "or i-proper %enue >el+ F;/ *#e libel ase annot prosper be ause t#e %enue was wrong and t#e t#ere was an inabilit' to "ile a ri-inal ase against a nonresident de"endant. Ienue #as been pres ribed in t#e statute and t#e plainti""s ould not "ile a ase in t#e pla e o" publi ation sin e t#e -aga!ine was not printed in t#e $#ilippines. 2" t#e ourt #ad not #ara teri!ed t#e issue as (urisdi tional and de ided t#e ase "ro- a on"li ts tort perspe ti%e, it ould #a%e ta.en ogni!an e o" t#e ase "ollowing t#e -ost signi"i ant relations approa # be ause o" t#e signi"i ant lin.s between t#e "oru- and t#e parties. 2n ordinar' "oreign tort, t#e ourt a 9uiring (urisdi tion -ust be eit#er t#e pla e o" tortuous ondu t or pla e o" in(ur'. 2n A*/, >/ ourts -a' a 9uire (urisdi tion e%en i" it is neit#er t#e pla e o" tortuous ondu t nor pla e o" in(ur'. Tlaw o" nationsU on ept in 1ilartiga8 nations onsider t#e a to be detri-ental to all nations Cuinto8 %iolation o" law o" nations test S o *#e %iolation a""e ts relations#ip between states or an indi%idual and a "oreign state o >sed b' t#e states "or t#eir o--on good andGor dealings inter se CR)=E" Crime Lo al $erpetrator an be sued onl' in t#e state w#erein #e o--its t#e ri-e
EAP,
4. $#ilippine &ule on 1oreign *orts =o spe i"i statutor' law w#i # go%erns t#e en"or e-ent o" lai-s "or da-ages arising "ro- "oreign torts. 0ourt -a' gi%e due ourse to said ase assu-ing t#at t#e de"endant an be ser%ed wit# su--ons in t#e $#ilippines. 2t is suggested t#at t#e ;nglis# rule be "ollowed su # t#at t#e tort o--itted abroad is a tionable in t#e ountr' w#ere it was o--itted and also under $#ilippine law. Phillips vs. 7yre o $#illips broug#t a tion "or da-ages in ;ngland "or "alse i-prison-ent aused b' ;'re in Ba-ai a, w#o was go%ernor at t#at ti-e. o ;'re argued t#at #e a ted bona "ide "or t#e purpose o" -artial law w#i # was i-posed at t#at ti-e. o *#e 0ourt ruled t#at ;'re was not liable. 1or t#e a tion to be wrong in ;ngland8 /#ould #a%e been a tionable i" o--itted in ;ngland A t -ust not be (usti"iable b' t#e law o" t#e pla e w#ere it was done. *27; 2=0 I &;F;/ ;* AL 319714 "ummarLibel ase b' Iillegas and ;nrile %ersus *i-e. *i-e "iled a -otion to dis-iss on t#e ground o" i-proper %enue. &A 4363 li-its t#e %enue o" t#e i%il a tion in%ol%ing a publi o""i er wit# an o""i e in 7anila to eit#er8 a4 012 7anila or b4 t#e it' or pro%in e
E.
)"5)7?9)">)7? CE5<EE7 56R5" A7 Character <here can he &e sue+O
5ort *ransitor' Liabilit' dee-ed personal to t#e tort"easor and -a.es #ia-enable to t#e suit in w#ate%er (urisdi tion #e is "ound 2n(ur' to indi%idual Liabilit' atta #es to perpetrator to inde-ni"' t#e %i ti"or in(uries sustained
<ho is in2ure+O Purpose
2n(ur' to state w#ere it is o--itted $ro-ulgated to punis# and re"ort#e perpetrators and deter t#e- and ot#ers "ro%iolating t#e law
'. LEA L6C) EL)C5) =ullu- ri-en sine lege prin iple re9uires t#at an a t s#ould #a%e been -ade punis#able b' law in order "or a person to be punis#ed "or o--itting su # an a t. Law in t#is onte+t #as traditionall' -eant -uni ipal law. >nder t#e territorial prin iple, ri-es o--itted wit#in t#e $#ilippines b' all persons, w#et#er 1ilipinos or aliens, are prose uted and penali!ed under $#ilippine law. As a rule, ri-inal laws o" a state are e""e ti%e
onl' upon persons w#o a tuall' o--it t#e ri-e wit#in t#e stateRs territor'. Le+ lo i deli ti or t#e law o" pla e w#ere t#e ri-e was o--itted is t#e ontrolling law sin e it deter-ines t#e spe i"i law b' w#i # t#e ri-inal is to be penali!ed and, at t#e sa-e ti-e, designates t#e state t#at #as t#e (urisdi tion to punis# #i-.
49
o--itted be"ore entr' into t#e territorial sea i" t#e s#ip onl' passes t#roug# t#e territorial sea and does not enter internal waters. >/ I 1:,L;& 319014 "ummar1owler a used o" stealing #a-pagne w#ile on board t#e Lawton. 1owler alleged t#at t#e 012 #ad no (urisdi tion to tr' t#e ri-e sin e it was o--itted in t#e #ig# seas. )ssue ,:= 012 #ad (urisdi tion >el+ =: $#ilippine ourts were granted (urisdi tion o%er ri-es o--itted in t#e #ig# seas o%ering -ariti-e %essels registered in t#e $#ilippines. *#e Lawton was not registered in t#e $#ilippines. $;:$L; I ,:=C 0);=C 319224 "ummar,ong 0#eng was #arged "or s-o.ing opiu- illegall' aboard a s#ip an #ored in 7anila Aa'. )ssue ,:= t#e ourt #as (urisdi tion >el+ F;/ *#ere are two "unda-ental rules w#i # ould be appli able. *#e 1ren # rule pro%ides t#at ri-es o--itted aboard "oreign s#ips annot be prose uted unless t#e ri-e a""e ts pea e and order. *#e ;nglis# rule pro%ides t#at su # ri-es are generall' triable in ourts wit#in w#ose territor' su # ri-e was o--itted. *#e s#ip was wit#in t#e 3 -ile !one in 7anila Aa' and was t#us alread' wit#in $#ilippine territorial (urisdi tion. >/ I L::M 0)A, 319104 "ummar2nternal re%enue agent entered t#e s#ip and "ound opiu- in its argo #old. A -otion to dis-iss was "iled on t#e ground o" la . o" (urisdi tion. )ssue ,:= t#e ourt #as (urisdi tion >el+ F;/ *#e -ere possession o" a t#ing o" pro#ibited use in t#e $#ilippines aboard a "oreign %essel in transit in an' o" t#e ports is not, as a general rule, triable b' t#e ourts sin e t#e %essel is an e+tension o" t#e nationalit' o" t#e ountr' w#i # owns t#e s#ip. )owe%er t#is rule no longer applies w#en t#e pro#ibited ite- is landed in t#e $#ilippines. 'owler Flag @ocation (rime esult >/ )ig# seas *#e"t =o (urisdi tion Chen. >M ,it#in &$ territorial waters /-o.ing opiuBurisdi tion a 9uired LooJ Chaw >M Landed 0ebu port in
!hree exceptions to the territorial rule$ &' (rimes committed by state officials, diplomatic representatives and officials of recognized international organizations *#e stateRs onl' re-ed' is to as. "or #is re all. *#is is based on t#e do trine o" so%ereign state i--unit' "ro- suit sin e all states are so%ereign e9uals and t#us annot assert (urisdi tion o%er one anot#er. *#is, #owe%er, is wai%ed w#en pri%ate, o--er ial and proprietar' a ts are in%ol%ed. 9ylie vs. arang$ A-eri an na%al o""i er w#o o--its a ri-e or tort w#ile dis #arging #is o""i ial "un tions is not o%ered b' t#e i--unit' "ro- suit. 7oral da-ages -a' be re o%ered sin e libel is ultra %ires and annot be dee-ed part o" o""i ial dut'.
L2A=C I $;:$L; 320004 "ummarLiang is an A<A e ono-ist and was sued b' o-wor.er 0abal w#o was allegedl' de"a-ed b' t#e "or-er. *#e 7e*0 re ei%ed an o""i e o" proto ol "ro- t#e <1A t#at Liang is i--une "ro- legal pro esses and t#us dis-issed t#e ase. *#e &*0 o%erturned t#e 7e*0 dis-issal and Liang argues #e is i--une "ro- suit. )ssue ,:= Liang is i--une "ro- suit >el+ =: 2--unit' onl' applies to a ts done in o""i ial apa it'. /lander annot be done in t#e na-e o" o""i ial dut'. *' (rimes committed on board a foreign vessel even if it is within the territorial waters of the coastal state $ro%iso8 no (urisdi tion b' $#ilippine ourts as long as t#e ri-e does not disturb pea e and order >=0L:/, Art. 27 applies o 0ri-inal (urisdi tion o" t#e oastal state not to be e+er ised on board a "oreign s#ip passing t#roug# territorial waters to arrest an' person or ondu t in%estigation e+ ept8 0onse9uen es o" t#e ri-e e+tend to oastal state 0ri-e disturbs pea e o" t#e ountr' or good order o" territorial sea Assistan e o" lo al aut#orities re9uested b' s#ip -aster or diplo-ati agent or onsular o""i er o" "lag state 7easures ne essar' "or suppression o" illi it tra""i in nar oti drugs or ps' #otropi substan es o =o steps -a' be ta.en on board a "oreign s#ip passing t#roug# territorial sea to arrest or in%estigate in onne tion wit# a ri-e
$ossession o" opiuBurisdi tion a 9uired
50
DI22. 0):20; :1 LA, A11;0*2=C 0:&$:&A*2:=/ A=< :*);& B>&2<20AL ;=*2*2;/ A. C6RP6RA5)67" 1. $ersonal Law o" a 0orporation ?E7ERAL R9LE, Law o" t#e pla e o" in orporation $ersonal law o" t#e orporation go%erns t#e "ollowing issues8 1. e+isten e and t#e legal #ara ter o" t#e orporation 2. apa it' and powers o" t#e orporation 3. internal organi!ation o" t#e orporate enterprise alteration o" t#e #arter and t#e dissolution o" t#e orporation
7; C&AF I 2=/>LA& L>7A;& 0: 319394 'AC5", 2nsular Lu-ber is a orp. organi!ed and e+isting under t#e laws o" =ew For., and is license+ to do business in t#e $#ilippines. 7; Cra' owns 57 s#ares o" apital sto ., but said 57 s#ares do not o-prise 3 per ent o" t#e total sto . o" t#e orp. =or does #e represent sto .#olders w#o olle ti%el' own 3 per ent. Cra' was as.ing t#e o""i ers o" 2nsular to allow #i- to e+a-ine t#eir boo.s and re ords. *#e o""i ers did not allow #i- to do so. >EL , >nder =F law, t#e rig#t o" a sto .#older to e+a-ine t#e boo.s and re ords is li-ited, and t#e law re9uires owners#ip o" at least 3 per ent o" t#e sto .s. Aeing a =F orp., t#e li-itation applies to 2nsular Lu-ber. >nder o--on law #owe%er, #e is entitled to e+a-ine t#e boo.s, sub(e t to t#e dis retion o" t#e ourt, under ertain onditions8 o 2nspe tion "or an #onest purpose, or to prote t #is interests as sto .#older. o &ig#t to e+a-ine is e+er ised in good "ait#, and not to satis"' uriosit' or an' spe ulati%eG %e+atious purposes. Cra' "ailed to allege an' o" t#e onditions. AA=M :1 A>C>/*A I ;A&L; 318394 'AC5" Aan. o" Augusta in orporated in Ceorgia and on"erred t#e usual powers w#i # in luded t#e pur #ase o" bills o" e+ #ange. Aill sued upon was -ade and endorsed b' its agent *#o-as 7Cran. *#ese "unds were deri%ed "ro- bills and notes dis ounted in Ceorgia and pa'able in Alaba-a. 7Cran pur #ased bills "ro- ;arle in Alaba-a. *0 ruled in ;arleRs "a%or, #olding t#at a ban. in orporated b' laws o" Ceorgia ould not law"ull' e+er ise its powers in Alaba-a, and t#us t#e ontra t "or t#e bill was %oid and did not bind t#e parties to pa'-ent t#ereo". )""9E, ,:= t#e ontra t "or t#e bill obtained in Alaba-a was %alid in relation to a orporation under t#e laws o" Ceorgia. >EL , 0ase -ade re"eren e to prin iple o" comit-. A ording to ;nglis# laws, t#e rig#t o" a "oreign orporation to sue in its ourts #as been re ogni!ed. A' t#e law o" o-it' a-ong nations, a orporation reated b' one so%ereignt' is per-itted to -a.e ontra ts in anot#er, and to sue in its ourts. As per Alaba-a law, t#e
orporation o" anot#er /tate -a' sue in its ourts6 and t#e de ision is put dire tl' on t#e ground o" national o-it'. *#ere is no law o" t#e /tate w#i # atte-pts to de"ine t#e rig#ts o" "oreign orporations. *#eories drawn "ro- t#is ase8 o A orp., being a reature o" law, #as no legal status be'ond t#e bounds o" t#e so%ereignt' wit#in w#i # it was reated6 o 0orp. annot e+er ise powers =:* granted b' its #arter or b' t#e laws o" t#e state o" in orporation6 o =o state is under an' obligation to ad#ere to o-it'6 e%er' state #as t#e power to re"use to re ogni!e or pre%ent t#e "oreign orp. "ro- a ting wit#in its (urisdi tion6 o A state is not obliged to grant to a "oreign orporation t#e pri%ileges and i--unities o--on to t#e iti!en o" t#e state. /tate -a' i-pose an' ter- it -a' desire as a prere9uisite to ad-ission. )owe%er, t#e rule is not absolute and is sub(e t to t#e e+ eption o"8 o commerce clause 3w#i # pro#ibits a state "roi-posing onditions on orporations engaged in interstate o--er ial a ti%ities and pro%ides t#e basis o" "ederal power to regulate interstate o--er e4. o 9nconstitutional con+itions 4 "orbids a state "ro- re9uiring t#e "oreign orporation to gi%e up its onstitutional rig#ts eit#er as a prere9uisite to allowing it to do business or to a%oid being re-o%ed "ro- t#at state.
2. ;+ eptions to t#e &ule o" 2n orporation *est a. 0onstitutional and /tatutor' &estri tions 0onstitutional and statutor' restri tions (Art. 3,,, 1>87 Constit(tion)
A state -a' b' legislation e+ lude a "oreign orporation altoget#er, sub(e t to onstitutional li-itations, or pres ribe an' onditions it -a' see "it as a prere9uisite to t#e orporationRs rig#t to do business wit#in its territor'. $AL*2=C I /A= B:/; $;*&:L;>7 319664 'AC5"
/an Bose $etroleu- "iled wit# t#e /;0 a sworn registration state-ent "or t#e registration and li ensing "or sale in t#e $#ilippines Ioting *rust 0erti"i ates. $alting and ot#ers, w#o were prospe ti%e in%estors in t#e s#ares o" /B $etrol, opposed in t#e /;0 t#e li ensing o" said se urities, on t#e ground t#at t#e tie-up between /B $etrol and /B :il %iolates t#e 0onstitution. 0onsti pro%ides t#at utili!ation, e+ploitation and de%elop-ent o" natural resour es o" t#e $#ilippines is granted to 1ilipino iti!ens or orp, or orporations or asso iations 60X o" t#e apital o" w#i # is owned b' iti!ens. *#is is in on(un tion wit# t#e $arit' A-end-ent, w#i # e+tends t#e said pri%ilege to A-eri an iti!ens or orporations.
)""9E, ,:= /B $etrol is an A-eri an enterprise entitled to parit' rig#ts. >EL , 76 )5 )" 765R
2t is not owned b' iti!ens o" t#e >/, be ause /B $etrol is owned b' :2L 2=I;/*7;=*/, a $ana-anian orporation. :2L 2=I;/*7;=*/ is not owned b' A-eri ans, as it is owned b' two "oreign Iene!uelan orporations 3$A=*;$;0 and $A=0:A/*AL4. ;%en i" t#e sto .#olders o" $A=0:A/*AL resided in t#e >/, 2t wasnRt establis#ed t#at t#e' were iti!ens o" t#e >/. *#ere is no s#owing o" o-it' between Iene!uela and $#ilippines. Lastl-/ there must &e a limit to the extent of interpretin. the wor+ Lin+irectl-M. 5he ownership of the corporation cannot &e trace+ a+ infinitum for the purpose of +eterminin. American ownership. 0ontrol *est during ,ar - 0ourts -a' pier e t#e %eil o" orporate identit' and loo. into t#e nationalit' o" t#e sto .#olders to deter-ine t#e iti!ens#ip o" t#e orporation.
51
Aan. o" A-eri a, 0itiban. =A and )/A0 "iled wit# t#e &i!al 012 a petition "or in%oluntar' sol%en ' o" 0onsolidated 7ine, 2n . $etition was opposed b' /tate 2n%est-ent )ouse 3/2)4 and /tate 1inan ing 0enter 3/104 lai-ing t#at t#e ourt #ad no (urisdi tion to ta.e ogni!an e o" t#e petition "or insol%en ' be ause petitioner ban.s are not resident reditors in onte-plation o" t#e 2nsol%en ' law. *0 rendered su--ar' (udg-ent dis-issing t#e petition. 0A re%ersed *0.
)""9E, ,:= t#ese $#ilippine bran #es or units -a' be onsidered Tresidents o" t#e $#ilippine islands.U >EL , 0ase re"erred to %arious statutes to de"ine Tresident "oreign orporationU 3=2&0, Ceneral Aan.ing A t, :""s#ore Aan.ing Law. 0ourt itsel" #eld t#at a "oreign orporation li itl' doing business in t#e $#ilippines, w#i # is a de"endant in a i%il suit, 7AF =:* A; onsidered a non-resident wit#in t#e s ope o" t#e legal pro%ision aut#ori!ing atta #-ent against a de"endant not residing in t#e $#ilippines. *#e assi-ilation o" "oreign orporations aut#ori!ed to do business in t#e $#ilippines Tto t#e status o" do-esti orporationsU subsu-es t#eir being "ound and operating as orporations, #en e, residing, in t#e ountr'. 2* 2/ =:* *); C&A=* :1 A L20;=/; *: A 1:&;2C= 0:&$:&A*2:= *: <: A>/2=;// 2= *)2/ 0:>=*&F *)A* 7AM;/ 2* A &;/2<;=*6 t#e li ense -erel' gi%es legiti-a ' to its doing business #ere. ,#at e""e ti%el' -a.es a "oreign orp. a resident orporation in t#e $#ilippines is its A0*>ALLF A;2=C 2= *); $)2L2$$2=;/ and li itl' doing business #ere. =e essar' ele-ent8 L:0AL2*F :1 ;D2/*;=0;.
12L2$2=A/ 0:7$A=2A I 0)&2/*;&= 319514/ 'AC5"
0#ristern obtained "ro- 1ilipinas "ire insuran e o%ering -er #andise in a building in Ainondo 3: tober 1, 19414. *#e building t#e -er #andise were ra!ed during t#e Bapanese o upation. 0#ristern sub-itted its lai- under t#e poli ', but 1ilipinas re"used to pa' on t#e ground t#at t#e poli ' in "a%or o" 0#ristern #ad eased to be in "or e w#en t#e >/ de lared war against Cer-an' 3<e e-ber 10, 19416 0istern was ontrolled b' Cer-an sub(e ts4. /in e -a(orit' o" t#e sto .#olders o" 0istern were Cer-ans, t#e respondent be a-e an ene-' orporation upon t#e outbrea. o" t#e war between >/ and Cer-an'. An Tene-'U o%ers orporations not onl' in orporated under t#e laws o" an ene-' ountr', but be ause it was ontrolled b' ene-ies. *#e 2nsuran e Law pro%ides t#at Tan'one e+ ept a publi ene-' -a' be insured.U *#us, an insuran e poli ' eases to be allowable as soon as an insured be o-es a publi ene-'. ,#ile 0#ristern is not entitled to an' inde-nit', e9uit' re9uires t#at t#e pre-iu- paid b' t#e respondent "or t#e period o%ered s#ould be rei-bursed.
>EL 4.
Burisdi tion o%er 1oreign 0orporations
;A$8 A o-pan' itsel" i" in apable o" lo'alt' or en-it'. *#e 9ualities o" en-it' or a-it' are attributable onl' to #u-an beings. 2t was on luded t#at t#e o-pan' #ad t#e predo-inant #ara ter o" its s#are#olders 3?aimler (o. v. (ontinental !ire4. 3. <o-i ile or &esiden e o" 1oreign 0orporations "i+ed b' t#e law reating t#e-6 or i" not so "i+ed, t#e pla e w#ere t#eir legal representation is or w#ere t#e' e+er ise t#eir prin ipal "un tions. 3Art. 51, 004 A "oreign orp. t#at #as been granted li ense to operate in t#e $#ilippines a 9uires do-i ile.
All "oreign orporations law"ull' doing business #ere in t#e $#ilippines s#all be bound b' all laws and rules and regulations appli able to do-esti orporations except pro%isions "or t#e reation, "or-ation, organi!ation or dissolution o" orporations or liabilities, responsibilities or duties o" sto .#olders, -e-bers or o""i ers o" t#e orporation to ea # ot#er. /er%i e o" su--ons upon "oreign orporations doing business in t#e $#ilippines -a' be -ade8 a. on its resident agent b. in t#e absen e t#ereo", on t#e go%ern-ent o""i ial designated b' law or an' o" its o""i ers or agents wit#in t#e $#ilippines . on an' o""i er or agent o" said orporation in t#e $#ilippines d. b' ser%ing su--ons t#roug# diplo-ati #annels. 5. &ig#t o" 1oreign 0orporations to Aring /uit
A "oreign orporation granted li ense to operate in t#e $#ilippines a 9uires do-i ile #ere. /*A*; 2=I;/*7;=* ):>/; I 02*2AA=M 319914 'AC5"
?eneral Rule, li ense to do business in t#e $#ilippines re9uired so 0ourt an a 9uire (urisdi tion o%er "oreign orporations. Exceptions, 1. isolated transa tions 2. a tion to prote t trade-ar., trade na-e, goodwill, patent or "or un"air o-petition 3. agree-ents "ull' transa ted outside t#e $#ilippines 4. petition "iled is -erel' orollar' de"ense in a suit against t#e orporation
52
;11;0* :1 1A2L>&; *: /;0>&; A L20;=/; *: *&A=/A0* A>2/=;// *#e "oreign orporation #as no rig#t to sue in t#e $#ilippines but it an still be sued. Alt#oug# t#e ontra ts entered into -a' be %alid as between t#e parties, it -a' not be en"or ed in t#e $#ilippine ourts.
):7; 2=/>&A=0; 0: I ;A/*;&= /)2$$2=C 319834 'AC5" 0ase in%ol%es lai-s against ;astern /#ipping Lines "or pa'-ents -ade b' )o-e 2nsuran e to onsignees in t#e $#ilippines. )o-e 2nsuran e "iled suits "or re o%er' o" a su- o" -one', but lower ourts dis-issed t#e o-plaint on t#e ground t#at plainti"" #ad "ailed to pro%e its apa it' to sue. At t#e ti-e t#e ontra ts were -ade, )o-e #ad not 'et se ured t#e ne essar' li ense to do business in t#e $#ilippines. )""9E, ,:= )o-e 2nsuran e was able to lai- a li ense. >EL ,#en t#e o-plaints in t#ese two ases were "iled, t#e petitioner #ad alread' se ured t#e ne essar' li ense to ondu t its insuran e business. *#us, it ould alread' "ile suits. *#e ontra ts are en"or eable <2/*2=0*2:= A;*,;;=8 o <enial o" rig#t to ta.e re-edial a tion 3w#en t#ere is no li ense to do business in t#e ountr'4 o $enal san tion "or non-registration. La . o" apa it' at t#e ti-e o" t#e e+e ution o" t#e ontra ts was ured b' t#e subse9uent registration.
;A/*A:A&< =AI2CA*2:= I F/7A;L E 0: 319574 'AC5" ;astboard =a%igation o" *oronto, 0anada agreed to #arter its %essel to de"endant Buan Fs-ael E 0o. to load argo in t#e $#ilippines "or Auenos Aires. :ne o" t#e lauses pro%ide t#at Tit is -utuall' agreed t#at s#ould an' dispute arise between t#e owners and #arterers, t#e -atter in dispute s#all be re"erred to t#ree persons at =ew For. "or arbitration, and t#eir de ision, or t#at an' o" t#e-, s#all be "inal.U <ispute o%er pa'-ent was sub-itted "or arbitration, and a de ision ordered Fs-ael to pa' ;astboard. <e ision was on"ir-ed b' >/ <istri t 0ourt. ;astboard broug#t present a tion to en"or e t#e said :rder. Fs-ael in #is answer, alleged t#at =F ourt #ad no (urisdi tion o%er t#e de"endant. )""9E, ,:= $#ilippine ourt #as (urisdi tion o%er t#e de"endant to be able to en"or e t#e arbitration order. >EL , ,#ile plainti"" is a "oreign orp. wit#out li ense to transa t business in t#e $#ilippines, it does not "ollow t#at it #as no apa it' to bring t#e present a tion. 5he license is not necessar- &ecause it is 765 en.a.e+ in &usiness in the Philippines. 2n t#is ase, t#e transa tion in%ol%ed is t#e "irst business underta.en b' plainti"" in t#e $#ilippines. :n a pre%ious o asion, ;astboardRs %essel was #artered b' =ational &i e to i-port ri e to t#e $#ilippines6 #owe%er, t#is isolate transa tion <: =:* onstitute engaging business in t#e $#ilippines.
b. A tion to $rote t *rade-ar.. *rade =a-e, Coodwill, $atent or "or >n"air 0o-petition A "oreign orporation -a' "ile a o-plaint "or un"air o-petition, it essentiall' being a suit en(oining un"air traders "ro- pursuing unlaw"ul o-petition and in order to allow t#e aggrie%ed part' to re o%er da-ages. AA/2/8 e9uit'.
A*LA=*20 7>*>AL 2=/>&A=0; I 0;A> /*;I;<:&2=C 319664 'AC5" Atlanti 7utual and 0ontinental 2nsuran e are bot# "oreign orp. e+isting under t#e laws o" t#e >/. *#e' sued 0ebu /te%edoring "or re o%er' o" su- o" -one'. $lainti""s, as subrogees to t#e s#ipper and onsignee, de-anded settle-ent "ro- de"endant b' reason o" its "ailure to o-pl' wit# its obligation. 0ebu /te%edoring -o%ed to dis-iss on t#e ground t#at plainti""s #ad no legal personalit' to appear be"ore $#ilippine ourts and #ad no apa it' to sue. >EL 2" a "oreign orp. is not doing business #ere it is not barred "ro- see.ing redress in our ourts in proper ases, as w#en it sues on an isolated on an isolated transa tion, e%en i" it #as not obtained a li ense. 2" t#e transa tion sued upon is singular and isolated, no su # li ense is re9uired.
L;I2*:= 2=<>/*&2;/ I /ALIA<:& 319824 'AC5" &espondent Le%iton 7anu"a turing 2n . 3L724 is a "oreign orp. organi!ed and e+isting under t#e laws o" =ew For.. 2t is t#e largest -anu"a turer o" ele tri al wiring de%i es in t#e >/ under t#e trade-ar. Le%iton, and #as i-ported to t#e $#ilippines %arious ele tri al wiring de%i es. L72 "iled a o-plaint be"ore &i!al 012 "or un"air o-petition against Le%iton 2ndustries 3L24, a partners#ip organi!ed and e+isting under laws o" t#e $#ilippines. L2 -anu"a tured ele tri al de%i es under t#e trade-ar. Le%iton, ausing on"usion in t#e -inds o" onsu-ers. L2 -o%ed to dis-iss t#e o-plaint alleging L72 "ailed to allege its apa it' to sue. )""9E, ,:= L72 an sue in t#e $#ilippines. >EL , 76R L72 "ailed to allege t#e essential "a ts bearing upon its apa it' to sue be"ore $#ilippine ourts. A>*, L72Rs a tion is based on /e . 21-A o" &A 166, t#at a "oreign orporation 3w#ose -ar. or na-e is registered under t#is a t4 -a' bring an a tion "or in"ringe-ent, un"air o-petition, w#et#er or not it #as been li ensed to do business in t#e $#ilippines. *#e ountr' o" w#i # t#e "oreign orporation is a iti!en or is do-i iled, b' treat', on%ention
6. ;+ eptions to t#e Li ense &e9uire-ent a. 2solated *ransa tions - one w#i # is o asional, in idental, and asual, not o" a #ara ter to indi ate a purpose to engage in business. - *#ere -ust be ontinuit' o" ondu t and intention on t#e part o" t#e "oreign to establis# a ontinuous business wit#in t#e state.
or law grants a si-ilar pri%ilege to (uristi persons o" t#e $#ilippines. >nder t#e old law are two re9uire-ents8 o &egistration o" t#e -ar. in t#e $#ilippines6 o 0o-it' All t#at was alleged in L72Rs o-plaint was t#at it was a "oreign orp. &ules o" 0ourt re9uire t#at "a ts s#owing t#e apa it' o" a part' to sue -ust be a%erred. apa it' o" said 9uestioning.
53
orporation, w#i # t#e' are pre isel'
;A$8 presentl', registration in t#e $#ilippines o" na-es and -ar.s soug#t to be prote ted is no longer re9uired "or an a tion o" un"air o-petition to prosper. . Agree-ents 1ull' *ransa ted :utside t#e $#ilippines )A=C L>=C AA=M I /A>L:C 319914 'AC5" $etitioner )ang Lung Aan. w#i # was not doing business in t#e $#ilippines, entered into 2 ontinuing guarantee agree-ents wit# 0ordo%a 0#in /an in )ong Mong. *#e Latter undertoo. to pa' on de-and all su-s o" -one' w#i # -a' due t#e ban. "ro- ,orlder ;nterprises. ,orlder ;nterprises de"aulted in its pa'-ent. )ang Lung "iled wit# t#e /upre-e 0ourt o" )M a olle tion suit against ,orlder and 0#in /an. Aot# de"endants were ser%ed wit# su--ons, but t#e' "ailed to respond t#ereto. /0 issued a (udg-ent ordering t#e two to pa' t#e plainti"". )ang Lung sent a de-and letter to 0#in /an at #is $#ilippines address, but no response was -ade. )ang Lung "iled wit# t#e 7a.ati &*0 an a tion "or en"or e-ent o" its lai- against 0#in /an. 0#in /an raised as an a""ir-ati%e de"ense la . o" ause o" a tion, in apa it' to sue. >EL , *#e Ceneral Aan.ing A t on w#i # 0#in /an relies is -isleading in t#at it see-s to re9uire a "oreign orporation, in luding a "oreign ban. or ban.ing orporation, not li ensed to do business and not doing business in t#e $#ilippines, to se ure a li ense "ro- t#e /;0 be"ore it an bring or -aintain an a tion in $#ilippine 0ourts. 2n t#is ase, sin e )ang Lung was not doing business in t#e $#ilippines, it -a' not be denied t#e pri%ilege o" pursuing its lai-s against pri%ate respondent "or a ontra t w#i # was entered into and onsu--ated outside t#e $#ilippines. $:L20F8 a%oid #a-pering t#e growt# and de%elop-ent o" business relations between 1ilipino iti!ens and "oreign nationals. d. $etition 1iled is 7erel' a 0orollar' <e"ense in a /uit against it. - "iling a ounter lai- b' a $#ilippine orporation does not onstitute an i-plied re ognition o" t#e "oreign orporationRs legal apa it'. 2n a ounter lai-, t#e plainti"" in t#e -ain 3t#e "oreign orporation4 ase be o-es t#e de"endant. $)2L 0:L>7A2A ;=*;&$&2/;/ I LA=*2= 319714 'AC5" Mato# is a orporation organi!ed and e+isting under t#e laws o" Bapan. 2t "iled a o-plaint against $#ilippine 0olu-bia ;nterprises alleging ten auses o" a tion "or t#e olle tion o" pa'-ent arising "ro- a s#ipping transa tion. 0olu-bia -o%ed to dis-iss on t#e ground t#at Mato# #ad no legal apa it' to sue. *0 de"erred deter-ination o" t#e -otion until t#e trial o" t#e ase on t#e -erits. 0olu-bia ob(e ts to t#e de"er-ent on t#e ground t#at i" t#e' "ile a ounter lai- against respondent "oreign orporation, t#e' would be re ogni!ing t#e legal
>EL , A tions b' "oreign orporations are go%erned b' rules di""erent "ro- t#ose in a tion against t#e-. 0ounter lai- parta.es o" t#e nature o" a o-plaint andGor ause o" a tion against t#e plainti"", so t#at i" t#e petitionersde"endants s#ould "ile a ounter lai-, Mato# would be a de"endant t#ereto, in w#i # ase t#e said "oreign orporation would not be -aintaining a suit, and t#e 0orporation Law would not appl'. 7. <e"inition and / ope o" T*ransa ting AusinessU - a orporation an do business in a state or ountr' ot#er t#an t#at in w#i # it was reated, wit# t#e e+press or i-plied onsent o" t#at ountr' or state. ;D0;$*8 1. ,#ere it is pro#ibited b' e+press statutor' aut#orit' or onstitutional ena t-ent6 2. ,#ere it is see.ing to per"or- a ts w#i # are ontrar' to t#e publi poli ' o" t#e state6 3. ,#ere it is see.ing to e+er ise e+traordinar' and spe ial "ran #ises6 4. ,#ere it is see.ing to per"or- a ts w#i # are not aut#ori!ed b' t#e law o" t#e state o" its in orporation. <:2=C A>/2=;//8 a4 /oli iting orders b4 /er%i e ontra ts 4 :pening o""i es, w#et#er liaisons or bran #es d4 Appointing representati%es or distributors operating under "ull ontrol o" t#e "oreign orporation do-i iled in t#e $#ilippines or w#o in an' alendar 'ear sta' in t#e ountr' "or a period or periods totaling 180 da's or -ore. e4 $arti ipating in t#e -anage-ent, super%ision and ontrol o" an' do-esti business, "ir-, entit' or orporation in t#e $#ilippines "4 An' ot#er a t or a ts t#at i-pl' a ontinuit' o" o--er ial dealings or arrange-ents, and onte-plates to t#at e+tent t#at per"or-an e o" a ts and wor.s, or t#e e+er ise o" so-e o" t#e "un tions nor-all' in ident to and in progressi%e prose ution o" o--er ial gain or o" t#e purpose o" ob(e t o" t#e business organi!ation. =:* <:2=C A>/2=;//8 a4 7ere in%est-ent as a s#are#older b' a "oreign entit' in do-esti orporations dul' registered to do business, andGor e+er ise o" rig#ts as su # in%estor. b4 )a%ing a no-inee dire tor or o""i er to represent its interest in su # orporation 4 Appointing a representati%e or distributor do-i iled in t#e $#ilippines w#i # transa ts business in its own na-e and "or its own a ount. 0:>&*8 no general rule or go%erning prin iple laid down as to w#at onstitutes TdoingU or Tengaging inU or Ttransa tingU business in t#e $#ilippines. ;a # -ust be (udged in t#e lig#t o" its pe uliar ir u-stan es. ,A=C LAA:&A*:&2;/ I 7;=<:VA 319874 'AC5" ,ang Labs 2n 3,L24 is a orporation organi!ed under >/ laws, doing business in 7assa #usetts, and engaged in -anu"a turing and selling o-puters worldwide. 2t sells its produ ts to its e+ lusi%e distributor, ;++b'te 3;*04, a do-esti orporation.
A00&A Law entered into a ontra t wit# ;*0 "or a 9uisition o" o-puter s'ste-s. 2t was not "ull' i-ple-ented, and t#e "ir- sued "or brea # o" ontra t wit# da-ages against ,L2. ,L2 "iled a -otion to dis-iss on ground o" i-proper ser%i e o" su--ons, t#us la . o" (urisdi tion o%er ,L2.
54
>EL , ,L2 annot unilaterall' de lare t#at it is not doing business in t#e $#ilippines. 2t #as installed di""erent produ ts in se%eral orporations in t#e $#ilippines sin e 1976, and registered its na-e wit# t#e $#ilippine $atent :""i e. ,#ere a single a t or transa tion o" a "oreign orporation is not -erel' 2=02<;=*AL or 0A/>AL but is o" su # #ara ter as distin tl' to indi ate a purpose to do ot#er business in t#e /tate, su # a t onstitutes doing business. 2n an' e%ent, it #as been ategori all' stated t#at alt#oug# a "oreign orporation is =:* <:2=C business in t#e $#ilippines, it -a' be sued "or a ts done against persons in t#e $#ilippines. Also, t#e "a t t#at ,L2 alleged non-(urisdi tional grounds in its pleadings indi ate t#at it #as wai%ed la . o" (urisdi tion o" t#e ourt. 02& I BA$A= A2&L2=;/ 319914 'AC5" Bapan Air Lines 2n 3BAL4 is a "oreign orporation. 2t did not #a%e planes in t#e $#ilippines, as it #ad not been granted b' t#e 0AA a erti"i ate o" publi on%enien e. BAL #ad an o""i e in 7anila -aintained -erel' to pro-ote t#e o-pan'Rs publi relations 3it did =:* sell ti .ets4. BAL onstituted $AL as its general sales agent in t#e $#ilippines. $AL sold "or and in be#al" o" BAL plane ti .ets and argo reser%ations. A tion was broug#t b' 02& "or de"i ien ' ta+es "or in o-e deri%ed "ro- $#ilippine sour es. )""9E, ,:= BAL was doing business in t#e $#ilippines "or purposes o" ta+ation. >EL , 1or t#e sour e o" in o-e to be onsidered as o-ing "rot#e $#ilippines, it is su""i ient t#at t#e in o-e is deri%ed "roa ti%ities wit#in t#is ountr' regardless o" t#e absen e o" "lig#t operations wit#in $#ilippine territor'. 1977 *AD 0:<;8 resident "oreign orporation applies to a "oreign orporation engaged in trade or business wit#in t#e $#ilippines or #a%ing an o""i e or pla e o" business t#erein. *#ere is no spe i"i riterion as to w#at onstitutes adoingR or aengaging inR or transa ting business. ;a # ase -ust be (udged in t#e lig#t o" its pe uliar en%iron-ental ir u-stan es. *#ere being no dispute t#at BAL onstituted $AL as lo al agent to sell its airline ti .ets, t#ere an be no on lusion ot#er t#an t#at BAL is a resident "oreign orporation, doing business in t#e $#ilippines. *#e sale o" ti .ets is t#e %er' li"eblood o" t#e airline business. 2n t#is ase, t#e a ti%it' was related to t#e nature o" t#e business in deter-ining w#et#er or not t#e o-pan' was doing business. 7;&&2LL LF=0) 1>*>&;/ I 0A 319924 'AC5" 7errill L'n # 1utures 2n 37L124 is a =:=-&;/2<;=* orporation =:* <:2=C business in t#e $#ilippines and dul' organi!ed and e+isting under t#e laws o" <elaware. 2t entered into a 1utures 0usto-er Agree-ent wit# Lara spouses.
:rders were trans-itted to 7L12 b' Lara spouses t#roug# 7errill L'n # $#ilippines 2n ., a $#ilippine orp. ser%i ing 7L12Rs usto-ers. Lara spouses be a-e indebted to 7L12, w#i # t#e latter lai-ed "ro- t#e Laras. *#e Laras re"used on t#e ground t#at t#e transa tions were null and %oid, be ause 7errill L'n # $#ilippines #ad no li ense to operate as a o--odit' or "inan ial "utures bro.er. 7L12 "iled a o-plaint wit# t#e O0 &*0 "or re o%er' o" said debt. Laras -o%ed to dis-iss on t#e ground t#at 7L12 #ad been doing business in t#e $#ilippines, #en e 7L12 is pro#ibited b' law to -aintain or inter%ene in an' a tion. Laras alleged t#e' were not aware 7errill L'n # $#ilippines #ad no li ense to do business in t#is ountr'.
>EL , 0ourt was satis"ied t#at 7L12, operating in t#e >/, #ad indeed done business wit# t#e Lara spouses in t#e $#ilippines. 7L12 did deal wit# "utures ontra ts in e+ #anges in t#e >/ in be#al" and "or t#e a ount o" t#e Laras, and t#at on se%eral o asions t#e latter re ei%ed a ount do u-ents and -one' in onne tion wit# t#ose transa tions. $art' is stopped to #allenge t#e personalit' o" a orporation a"ter #a%ing a .nowledged t#e sa-e b' entering into a ontra t wit# it. *#e prin iple will be applied to pre%ent a person ontra ting wit# a "oreign orporation "ro- later ta.ing ad%antage o" its non o-plian e wit# t#e statutes. ;A$8 2n t#is ase t#e spouses were stopped "ro- 9uestioning 7L12Rs apa it'. 0urrent trend is toward estoppel. A>*, s#e t#in.s in pari delicto is -ore e9uitable, w#i # would pre%ent bot# parties "ro- lai-ing "ro- ea # ot#er, being bot# at "ault. C&A=C;& I 720&:,AI; /F/*;7/ 319904 'AC5" Cranger Asso iates, organi!ed in t#e >/, #as no li ense to do business in t#e ountr'. 2t sued 7i rowa%e /'ste-s 2n . 37/24 "or re o%er' o" a su- allegedl' due to t#e petitioner. 0lai- arose "ro- agree-ents between t#e parties, one under w#i # Cranger li ensed 7/2 to -anu"a ture and sell its produ ts in t#e $#ilippines and e+tended to t#e latter ertain loans, e9uip-ent and parts. 7/2 alleged t#at plainti"" #ad no apa it' to sue, being an unli ensed "oreign orporation, and -o%ed to dis-iss. *0 granted 7*<. 0A a""ir-ed. Cranger now argues t#at 7/2 "ailed to pro%e Cranger was transa ting business in t#e $#ilippines. )""9E, ,:= t#e transa tion is isolated, e+e-pting it "ro- t#e li ense re9uire-ent. >EL , 2t is lear t#at t#e ontra ts between t#e parties establis#ed wit#in our ountr' a ontinuous business, and not -erel' one o" a te-porar' #ara ter. *#e agree-ents did =:* onstitute onl' one isolated transa tion, as t#e petitioner ontends, but a su ession o" a ts signi"'ing t#e intent o" Cranger to e+tend its operations in t#e $#ilippines. *#e doing o" a single a t does not onstitute business wit#in t#e -eaning o" statutes pres ribing t#e onditions to be o-plied wit# b' "oreign orporations. o C95, a single a t -a' bring t#e orporation wit#in t#e pur%iew o" t#e statute w#ere it is an a t o" t#e ordinar' business o" t#e orporation. o 5he sin.le act or transaction is not merelinci+ental or casual/ but is o" su # #ara ter as
distin tl' to indi ate a purpose on t#e part o" t#e "oreign orporation to do ot#er business in t#e state. *#e purpose o" t#e rule re9uiring "oreign orporations to se ure a li ense to do business in t#e $#ilippines is to enable us to e+er ise (urisdi tion o%er t#e- "or t#e regulation o" t#eir a ti%ities in t#is ountr'. 2" a "oreign orporation operates in t#e $#ilippines wGo sub-itting to our laws, it is onl' (ust t#at it not be allowed to in%o.e t#e- in our ourts w#en it s#ould need t#e- later "or its own prote tion. 4. 5.
55
irect estoppel8 relitigation o" all -atters de ided are pre luded )n+irect estoppel8 all essential issues o" "a t a tuall' litigated annot be relitigated
. REH9)")5E" '6R REC6?7)5)67 6R E7'6RCE=E75 1. 1oreign (udg-ent was rendered b' a (udi ial or 9uasi-(udi ial tribunal w#i # #ad (urisdi tion o%er t#e parties and t#e ase in t#e proper (udi ial pro eedings 2. Budg-ent -ust be %alid under t#e laws o" t#e rendered it. ourt t#at
PAR5 '):E 8 '6RE)?7 B9 ?=E75" DI222. &;0:C=2*2:= A=< ;=1:&0;7;=* :1 1:&;2C= B><C7;=*/ A. )"5)7C5)67 CE5<EE7 REC6?7)5)67 E7'6RCE=E75 REC6?7)5)67 6' '6RE)?7 B9 ?=E75 A7
3. Budg-ent -ust be "inal and e+e utor' to onstitute res (udi ata in anot#er a tion. 4. /tate w#ere t#e "oreign (udg-ent was obtained allows re ognition or en"or e-ent o" $#ilippine (udg-ents. 5. Budg-ent -ust be "or a "i+ed su- o" -one'. 6. 1oreign (udg-ent -ust not be ontrar' to t#e publi poli ' or good -orals o" t#e ountr' w#ere it is to be en"or ed. 7. Budg-ent -ust not #a%e been obtained b' "raud, ollusion, -ista.e o" "a t or -ista.e o" law. &ule 39.48, &:0 2n an a tion in rem8 t#e "oreign (udg-ent is dee-ed conclusi*e upon t#e title to t#e t#ing, 2n an a tion in personam, t#e "oreign (udg-ent is presumpti*e, and not on lusi%e, o" a rig#t as between t#e parties and t#eir su essors in interest b' a subse9uent title. )owe%er, in bot# ases, t#e "oreign (udg-ent is sus eptible to i-pea #-ent in our lo al ourts on t#e grounds o"8 want o" (urisdi tion want o" noti e to t#e part' ollusion "raud lear -ista.e o" law or "a t 2t #as been re ogni!ed t#at Tpubli poli 'U as a de"ense to t#e re ognition o" (udg-ents ser%es as an u-brella "or a %ariet' o" on erns in international pra ti e w#i # -a' lead to a denial o" re ognition. %Mi"ares v. anada, *JJ/'
$assi%e a t o" gi%ing t#e sa-e e""e t t#at it #as in t#e /tate w#ere it was rendered wit# respe t to t#e parties, t#e sub(e t -atter o" t#e a tion and t#e issues in%ol%ed wit#out t#e ne essit' o" "iling an a tion in t#e "oru- gi%ing e""e t to t#e (udg-ent. ;+a-ples o" "oreign (udg-ents w#i # an onl' be re ogni!ed8 de larator' (udg-ents, (udg-ents w#i # gi%e no a""ir-ati%e relie", (udg-ents w#i # deter-ine t#e partiesR interests in a t#ing or status.
E7'6RCE=E75 6' A '6RE)?7 B9 ?=E75 A "oreign (udg-ent is en"or ed w#en, in addition to being re ogni!ed, a part' is gi%en a""ir-ati%e relie" to w#i # t#e (udg-ent entitles #i- and it ne essaril' re9uires t#e "iling o" an a tion. *#is ne essaril' i-plies re ognition. C. CA"E" 6' REC6?7)5)67 A7 '6RE)?7 B9 ?=E75" 1. 2. E7'6RCE=E75 6'
C1M,-A- re9uires re ipro it' between t#e on erned (urisdi tions 81C-*,2+ 1F 1;/,9A-,12 -"oreign (udg-ent o" a ourt o" o-petent (urisdi tion i-poses a dut' on t#e losing litigant based on t#e %ested rig#ts t#eor' 97 ERL;)7? REC6?7)5)67 A7
C. P6L)C)E" E7'6RCE=E75
E. ?R697 " '6R 7674REC6?7)5)67 1. A ording to >ni"or- 7one' Budg-ent &e ognition A t o" t#e >/, a "oreign (udg-ent need not be re ogni!ed i"8 7A=<A*:&F 314 <e"endant in t#e pro eedings did not re ei%e noti e o" t#e pro eedings in su""i ient ti-e to be able to de"end #i-sel"6 324 Budg-ent obtained b' 1&A><6 334 La . o" (urisdi tion o%er />AB;0* 7A**;& b' "oreign ourt6 <2/0&;*2:=A&F 314 1oreign (udg-ent on"li ts wit# anot#er "inal and on lusi%e (udg-ent 324 $ro eeding in t#e "oreign ountr' was ontrar' to an agree-ent o" t#e parties under w#i # t#e dispute in 9uestion settled ot#erwise t#an t#e pro eeding in t#at ourt6 334 <o trine o" "orunon on%eniens, in t#e ase o" (urisdi tion based onl' on personal ser%i e 3to "urt#er restrain t#e use o" Tpresen eU as ornerstone "or e+er ise o" (urisdi tion4 2. 2n -an' )ague 0on%entions, ot#er grounds in lude8 314 Iiolation o" t#e ordre publi o" t#e re ogni!ing state
*#e poli ' o" pre lusion see.s to prote t part' e+pe tations resulting "ro- pre%ious litigation, to sa"eguard against t#e #arass-ent o" de"endants, to insure t#at t#e tas. o" ourts not be in reased b' ne%er-ending litigation o" t#e sa-e disputes, and S in a larger sense S to pro-ote w#at Lord 0o.e in t#e Ferrer8s (ase o" 1599 stated to be t#e goal o" all law8 Trest and 9uietness.U
&;LA*;< 0:=0;$*/ 1. Res 2u+icata8 on e t#ere is a "inal (udg-ent, resolution on t#e issues litigated is binding on t#e parties and t#eir pri%ies 2. =er.er8 $lainti""Rs ause o" a tion is -erged in t#e (udg-ent so t#at #e -a' not relitigate t#at e+a t lai3. Car8 su ess"ul de"endant an interpose as a de"ense t#e (udg-ent in #is "a%or to a%ert a 2nd a tion b' t#e plainti"" on t#e sa-e lai-
324 1ailure to o-pl' wit# due pro ess re9uire-ents '. =6 ER7 E:EL6P=E75" '6RE)?7 B9 ?=E75" )7 E7'6RCE=E75 6'
56
1. )ague 0on"eren e on $ri%ate 2nternational Law (onvention on the ecognition and 7nforcement of Foreign >udgments in (ivil and (ommercial Matters K appli able regardless o" nationalit' o" t#e parties K non-re"usal pro%ision on t#e ground solel' t#at t#e /tate o" origin applied a law ot#er t#an t#e rules t#at would #a%e appli able a ording to $&2L rules o" t#e state addressed 2. ;;0 0on%ention o" 1968 K "or i%il and o--er ial -atters 3. >ni"or- 1oreign 7one'-Budg-ents &e ognition A t K appli able to an' "oreign ountr' (udg-ent t#at is "inal and on lusi%e and en"or eable w#en rendered e%en t#oug# an appeal is pending or it is sub(e t to appeal. ?. PR6CE 9RE '6R E7'6RCE=E75 &. =<MMA D P :(77?#;B 1ollowed in -ost i%il law ountries Ialidation pro eeding8 aut#enti ated op' o" "oreign (udg-ent %alidated b' ler. o" ourt *. -. ><?BM7;! 7B#=! A!#:; Aut#enti ated op' "iled in t#e registrarRs o""i e wit# t#e proo"s re9uired P7!#!#:; 1ollowed in o--on law ountries and in t#e $#ilippines *#e rules are silent as to w#at initiator' pro edure -ust be underta.en in order to en"or e a "oreign (udg-ent in t#e $#ilippines. Aut t#ere is no 9uestion t#at t#e "iling o" a i%il o-plaint is an appropriate -easure "or su # purpose.

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Conflicts Finals Reviewer 2009-10A

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Antonio Arcilla | Rachelle Mayu a | Chari!!e Men"o#a $a%lyn Pine"a | &ahlia Sala'at | Ai"a Villanue(a (Second Semester, A.Y.

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*ransa tions /tate to state

$ri%ate transa tions

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<is-iss t#e 0ase

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$la e o" destination S w#i # is t#e ulti-ate destination6 t#us /1

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*#e spouse o" t#e adopteeRs parent.

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7odern -eans o" o--uni ations

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1. 0onditions "or t#e ;n"or e-ent o" *ort 0lai-s

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