HASEGAWA vs KITAMURA 538 SCRA 26 (2007) G.R. No.

149177 November
23, 2007
FACTS:
Nippon Engineering Consultants (Nippon, a !apanese "onsultan"# $rm provi%ing
te"&ni"al an% management support in t&e in'rastru"ture pro(e"ts national
permanentl# resi%ing in t&e )&ilippines. *&e agreement provi%es t&at +itamaru ,as
to e-ten% pro'essional servi"es to Nippon 'or a #ear. Nippon assigne% +itamaru to
,or. as t&e pro(e"t manager o' t&e /out&ern *agalog 0""ess Roa% (/*0R pro(e"t.
1&en t&e /*0R pro(e"t ,as near "ompletion, 2)13 engage% t&e "onsultan"#
servi"es o' Nippon, t&is time 'or t&e %etaile% engineering 4 "onstru"tion
supervision o' t&e 5ongabon65aler Roa% 7mprovement (55R7 )ro(e"t. +itamaru ,as
name% as t&e pro(e"t manger in t&e "ontra"t.
3asega,a, Nippon8s general manager 'or its 7nternational 2ivision, in'orme%
+itamaru t&at t&e "ompan# &a% no more intention o' automati"all# rene,ing &is
7C0. 3is servi"es ,oul% be engage% b# t&e "ompan# onl# up to t&e substantial
"ompletion o' t&e /*0R )ro(e"t.
+itamaru %eman%e% t&at &e be assigne% to t&e 55R7 pro(e"t. Nippon insiste% t&at
+itamaru8s "ontra"t ,as 'or a $-e% term t&at &a% e-pire%. +itamaru t&en $le% 'or
spe"i$" per'orman"e 4 %amages ,9 t&e R*C o' :ipa Cit#. Nippon $le% a ;*2.
Nippon8s "ontention< *&e 7C0 &a% been per'e"te% in !apan 4 e-e"ute% b# 4
bet,een !apanese nationals. *&us, t&e R*C o' :ipa Cit# &as no (uris%i"tion. *&e
"laim 'or improper pre6termination o' +itamaru8s 7C0 "oul% onl# be &ear% 4
ventilate% in t&e proper "ourts o' !apan 'ollo,ing t&e prin"iples o' le- lo"i
"elebrationis 4 le- "ontra"tus.
*&e R*C %enie% t&e motion to %ismiss. *&e C0 rule% &at t&e prin"iple o' le- lo"i
"elebrationis ,as not appli"able to t&e "ase, be"ause no,&ere in t&e plea%ings
,as t&e vali%it# o' t&e ,ritten agreement put in issue. 7t &el% t&at t&e R*C ,as
"orre"t in appl#ing t&e prin"iple o' le- lo"i solutionis.
ISSUE:
1&et&er or not t&e sub(e"t matter (uris%i"tion o' )&ilippine "ourts in "ivil "ases 'or
spe"i$" per'orman"e 4 %amages involving "ontra"ts e-e"ute% outsi%e t&e "ountr#
b# 'oreign nationals ma# be assaile% on t&e prin"iples o' le- lo"i "elebrationis, le-
"ontra"tus, =t&e state o' t&e most signi$"ant relations&ip rule,> or 'orum non
"onveniens.
HELD:
N?. 7n t&e (u%i"ial resolution o' "on@i"ts problems, 3 "onse"utive p&ases are
involve%< (uris%i"tion, "&oi"e o' la,, an% re"ognition an% en'or"ement o'
(u%gments. !uris%i"tion 4 "&oi"e o' la, are 2 %istin"t "on"epts. !uris%i"tion
1
"onsi%ers ,&et&er it is 'air to "ause a %e'en%ant to travel to t&is stateA "&oi"e o'
la, as.s t&e 'urt&er Buestion ,&et&er t&e appli"ation o' a substantive la, ,9" ,ill
%etermine t&e merits o' t&e "ase is 'air to bot& parties. *&e po,er to e-er"ise
(uris%i"tion %oes not automati"all# give a state "onstitutional aut&orit# to appl#
'orum la,. 1&ile (uris%i"tion an% t&e "&oi"e o' t&e lex fori ,ill o'ten "oin"i%e, t&e
=minimum "onta"ts> 'or one %o not al,a#s provi%e t&e ne"essar# =signi$"ant
"onta"ts> 'or t&e ot&er. *&e Buestion o' ,&et&er t&e la, o' a state "an be applie%
to a transa"tion is %iCerent 'rom t&e Buestion o' ,&et&er t&e "ourts o' t&at state
&ave (uris%i"tion to enter a (u%gment.
7n t&is "ase, onl# t&e 1
st
p&ase is at issueD(uris%i"tion. !uris%i"tion, &o,ever, &as
various aspe"ts. Eor a "ourt to vali%l# e-er"ise its po,er to a%(u%i"ate a
"ontrovers#, it must &ave (uris%i"tion over t&e plaintiC9petitioner, over t&e
%e'en%ant9respon%ent, over t&e sub(e"t matter, over t&e issues o' t&e "ase an%, in
"ases involving propert#, over t&e res or t&e t&ing ,9" is t&e sub(e"t o' t&e
litigation. 7n assailing t&e trial "ourtFs (uris%i"tion &erein, Nippon is a"tuall#
re'erring to sub(e"t matter (uris%i"tion.
!uris%i"tion over the subject matter in a (u%i"ial pro"ee%ing is "on'erre% b# t&e
sovereign aut&orit# ,9" establis&es an% organiGes t&e "ourt. 7t is given onl# b# la,
an% in t&e manner pres"ribe% b# la,. 7t is 'urt&er %etermine% b# t&e allegations o'
t&e "omplaint irrespe"tive o' ,&et&er t&e plaintiC is entitle% to all or some o' t&e
"laims asserte% t&erein. *o su""ee% in its motion 'or t&e %ismissal o' an a"tion 'or
la". o' (uris%i"tion over t&e sub(e"t matter o' t&e "laim, t&e movant must s&o,
t&at t&e "ourt or tribunal "annot a"t on t&e matter submitte% to it be"ause no la,
grants it t&e po,er to a%(u%i"ate t&e "laims.
7n t&e instant "ase, Nippon, in its ;*2, %oes not "laim t&at t&e R*C is not properl#
veste% b# la, ,9 (uris%i"tion to &ear t&e sub(e"t "ontrovers# 'or a "ivil "ase 'or
spe"i$" per'orman"e 4 %amages is one not "apable o' pe"uniar# estimation 4 is
properl# "ogniGable b# t&e R*C o' :ipa Cit#. 1&at t&e# rat&er raise as groun%s to
Buestion sub(e"t matter (uris%i"tion are t&e prin"iples o' lex loci celebrationis an%
lex contractus, an% t&e =state o' t&e most signi$"ant relations&ip rule.> *&e Court
$n%s t&e invo"ation o' t&ese groun%s unsoun%.
Lex loci celebrationis relates to t&e =la, o' t&e pla"e o' t&e "eremon#> or t&e la,
o' t&e pla"e ,&ere a "ontra"t is ma%e. *&e %o"trine o' lex contractus or lex loci
contractus means t&e =la, o' t&e pla"e ,&ere a "ontra"t is e-e"ute% or to be
per'orme%.> 7t "ontrols t&e nature, "onstru"tion, an% vali%it# o' t&e "ontra"t an% it
ma# pertain to t&e la, voluntaril# agree% upon b# t&e parties or t&e la, inten%e%
b# t&em eit&er e-pressl# or impli"itl#. Hn%er t&e =state o' t&e most signi$"ant
relations&ip rule,> to as"ertain ,&at state la, to appl# to a %ispute, t&e "ourt
s&oul% %etermine ,&i"& state &as t&e most substantial "onne"tion to t&e
o""urren"e an% t&e parties. 7n a "ase involving a "ontra"t, t&e "ourt s&oul%
"onsi%er ,&ere t&e "ontra"t ,as ma%e, ,as negotiate%, ,as to be per'orme%, an%
t&e %omi"ile, pla"e o' business, or pla"e o' in"orporation o' t&e parties. *&is rule
2
ta.es into a""ount several "onta"ts an% evaluates t&em a""or%ing to t&eir relative
importan"e ,it& respe"t to t&e parti"ular issue to be resolve%.
/in"e t&ese 3 prin"iples in "on@i"t o' la,s ma.e re'eren"e to t&e la, appli"able to
a %ispute, t&e# are rules proper 'or t&e 2
n%
p&ase, t&e "&oi"e o' la,. *&e#
%etermine ,&i"& stateFs la, is to be applie% in resolving t&e substantive issues o' a
"on@i"ts problem. Ne"essaril#, as t&e onl# issue in t&is "ase is t&at o' (uris%i"tion,
"&oi"e6o'6la, rules are not onl# inappli"able but also not #et "alle% 'or.
Eurt&er, Nippon8s premature invo"ation o' "&oi"e6o'6la, rules is e-pose% b# t&e
'a"t t&at t&e# &ave not #et pointe% out an# "on@i"t bet,een t&e la,s o' !apan an%
ours. 5e'ore %etermining ,&i"& la, s&oul% appl#, 1
st
t&ere s&oul% e-ist a "on@i"t o'
la,s situation reBuiring t&e appli"ation o' t&e "on@i"t o' la,s rules. 0lso, ,&en t&e
la, o' a 'oreign "ountr# is invo.e% to provi%e t&e proper rules 'or t&e solution o' a
"ase, t&e e-isten"e o' su"& la, must be plea%e% an% prove%.
7t s&oul% be note% t&at ,&en a "on@i"ts "ase, one involving a 'oreign element, is
broug&t be'ore a "ourt or a%ministrative agen"#, t&ere are 3 alternatives open to
t&e latter in %isposing o' it< (1 %ismiss t&e "ase, eit&er be"ause o' la". o'
(uris%i"tion or re'usal to assume (uris%i"tion over t&e "aseA (2 assume (uris%i"tion
over t&e "ase an% appl# t&e internal la, o' t&e 'orumA or (3 assume (uris%i"tion
over t&e "ase an% ta.e into a""ount or appl# t&e la, o' some ot&er /tate or /tates.
*&e "ourt8s po,er to &ear "ases an% "ontroversies is %erive% 'rom t&e Constitution
an% t&e la,s. 1&ile it ma# "&oose to re"ogniGe la,s o' 'oreign nations, t&e "ourt is
not limite% b# 'oreign sovereign la, s&ort o' treaties or ot&er 'ormal agreements,
even in matters regar%ing rig&ts provi%e% b# 'oreign sovereigns.
Neit&er "an t&e ot&er groun% raise%, forum non conveniens, be use% to %eprive t&e
R*C o' its (uris%i"tion. 1st, it is not a proper basis 'or a motion to %ismiss be"ause
/e". 1, Rule 1I o' t&e Rules o' Court %oes not in"lu%e it as a groun%. 2n%, ,&et&er
a suit s&oul% be entertaine% or %ismisse% on t&e basis o' t&e sai% %o"trine %epen%s
largel# upon t&e 'a"ts o' t&e parti"ular "ase an% is a%%resse% to t&e soun%
%is"retion o' t&e R*C. 7n t&is "ase, t&e R*C %e"i%e% to assume (uris%i"tion. 3r%, t&e
propriet# o' %ismissing a "ase base% on t&is prin"iple reBuires a 'a"tual
%eterminationA &en"e, t&is "on@i"ts prin"iple is more properl# "onsi%ere% a matter
o' %e'ense.
ASIAVEST VS. CA AND PNCC
ASIAVEST MERCHANT ANKERS (M) ERHAD vs! CA "#$ %NCC
G!R! N&! ''0263( )*+, 20( 200'
F"-.s< )etitioner 0siavest ;er"&ant 5an.ers (; 5er&a% is a "orporation organiGe%
un%er t&e la,s o' ;ala#sia ,&ile private respon%ent )&ilippine National
Constru"tion Corporation is a "orporation %ul# in"orporate% an% e-isting un%er
)&ilippine la,s.
3
)etitioner initiate% a suit 'or "olle"tion against private respon%ent, t&en .no,n as
Constru"tion an% 2evelopment Corporation o' t&e )&ilippines, be'ore t&e 3ig&
Court o' ;ala#a in +uala :umpur entitle% =0siavest ;er"&ant 5an.ers (; 5er&a% v.
0siavest C2C) /%n. 5&%. an% Constru"tion an% 2evelopment Corporation o' t&e
)&ilippines.>
)etitioner soug&t to re"over t&e in%emnit# o' t&e per'orman"e bon% it &a% put up
in 'avor o' private respon%ent to guarantee t&e "ompletion o' t&e Eel%a )ro(e"t an%
t&e nonpa#ment o' t&e loan it e-ten%e% to 0siavest6C2C) /%n. 5&%. 'or t&e
"ompletion o' )alo& 3anai an% +uantan 5# )assA )ro(e"t.
*&e 3ig& Court o' ;ala#a (Commer"ial 2ivision ren%ere% (u%gment in 'avor o' t&e
petitioner an% against t&e private respon%ent. Eollo,ing unsu""ess'ul attempts to
se"ure pa#ment 'rom private respon%ent un%er t&e (u%gment, petitioner initiate%
t&e "omplaint be'ore R*C o' )asig, ;etro ;anila, to en'or"e t&e (u%gment o' t&e
3ig& Court o' ;ala#a.
)rivate respon%ent soug&t t&e %ismissal o' t&e "ase via a ;otion to 2ismiss,
"onten%ing t&at t&e allege% (u%gment o' t&e 3ig& Court o' ;ala#a s&oul% be
%enie% re"ognition or en'or"ement sin"e on in 'a"e, it is tainte% ,it& ,ant o'
(uris%i"tion, ,ant o' noti"e to private respon%ent, "ollusion an%9or 'rau%, an% t&ere
is a "lear mista.e o' la, or 'a"t. 2ismissal ,as, &o,ever, %enie% b# t&e trial "ourt
"onsi%ering t&at t&e groun%s relie% upon are not t&e proper groun%s in a motion to
%ismiss un%er Rule 1I o' t&e Revise% Rules o' Court.
/ubseBuentl#, private respon%ent $le% its 0ns,er ,it& Compulsor# Counter "laim8s
an% t&erein raise% t&e groun%s it broug&t up in its motion to %ismiss. 7n its Repl#
$le%, t&e petitioner "onten%e% t&at t&e 3ig& Court o' ;ala#a a"Buire% (uris%i"tion
over t&e person o' private respon%ent b# its voluntar# submission t&e "ourt8s
(uris%i"tion t&roug& its appointe% "ounsel. Eurt&ermore, private respon%ent8s
"ounsel ,aive% an# an% all ob(e"tions to t&e 3ig& Court8s (uris%i"tion in a plea%ing
$le% be'ore t&e "ourt.
7n %ue time, t&e trial "ourt ren%ere% its %e"ision %ismissing petitioner8s "omplaint.
)etitioner interpose% an appeal ,it& t&e Court o' 0ppeals, but t&e appellate "ourt
%ismisse% t&e same an% aJrme% t&e %e"ision o' t&e trial "ourt.
Iss*/< 1&et&er or not t&e C0 erre% in %en#ing re"ognition an% en'or"ement to t&e
;ala#sian Court (u%gment.
R*+0#1< Kes.
Generall#, in t&e absen"e o' a spe"ial "ompa"t, no sovereign is boun% to give
eCe"t ,it&in its %ominion to a (u%gment ren%ere% b# a tribunal o' anot&er "ountr#A
&o,ever, t&e rules o' "omit#, utilit# an% "onvenien"e o' nations &ave establis&e% a
usage among "iviliGe% states b# ,&i"& $nal (u%gments o' 'oreign "ourts o'
"ompetent (uris%i"tion are re"ipro"all# respe"te% an% ren%ere% eJ"a"ious un%er
"ertain "on%itions t&at ma# var# in %iCerent "ountries.
7n t&is (uris%i"tion, a vali% (u%gment ren%ere% b# a 'oreign tribunal ma# be
re"ogniGe% inso'ar as t&e imme%iate parties an% t&e un%erl#ing "ause o' a"tion are
4
"on"erne% so long as it is "onvin"ingl# s&o,n t&at t&ere &as been an opportunit#
'or a 'ull an% 'air &earing be'ore a "ourt o' "ompetent (uris%i"tionA t&at t&e trial
upon regular pro"ee%ings &as been "on%u"te%, 'ollo,ing %ue "itation or voluntar#
appearan"e o' t&e %e'en%ant an% un%er a s#stem o' (urispru%en"e li.el# to se"ure
an impartial a%ministration o' (usti"eA an% t&at t&ere is not&ing to in%i"ate eit&er a
pre(u%i"e in "ourt an% in t&e s#stem o' la,s un%er ,&i"& it is sitting or 'rau% in
pro"uring t&e (u%gment.
0 'oreign (u%gment is presume% to be vali% an% bin%ing in t&e "ountr# 'rom ,&i"&
it "omes, until a "ontrar# s&o,ing, on t&e basis o' a presumption o' regularit# o'
pro"ee%ings an% t&e giving o' %ue noti"e in t&e 'oreign 'orum Hn%er /e"tion L0(b,
Rule 39 o' t&e Revise% Rules o' Court, ,&i"& ,as t&e governing la, at t&e time t&e
instant "ase ,as %e"i%e% b# t&e trial "ourt an% respon%ent appellate "ourt, a
(u%gment, against a person, o' a tribunal o' a 'oreign "ountr# &aving (uris%i"tion to
pronoun"e t&e same is presumptive evi%en"e o' a rig&t as bet,een t&e parties an%
t&eir su""essors in interest b# a subseBuent title. *&e (u%gment ma#, &o,ever, be
assaile% b# evi%en"e o' ,ant o' (uris%i"tion, ,ant o' noti"e to t&e part#, "ollusion,
'rau%, or "lear mista.e o' la, or 'a"t. 7n a%%ition, un%er /e"tion 3(n, Rule 131 o'
t&e Revise% Rules o' Court, a "ourt, ,&et&er in t&e )&ilippines or else,&ere, en(o#s
t&e presumption t&at it ,as a"ting in t&e la,'ul e-er"ise o' its (uris%i"tion. 3en"e,
on"e t&e aut&enti"it# o' t&e 'oreign (u%gment is prove%, t&e part# atta".ing a
'oreign (u%gment, is tas.e% ,it& t&e bur%en o' over"oming its presumptive vali%it#.
7n t&e instant "ase, petitioner suJ"ientl# establis&e% t&e e-isten"e o' t&e mone#
(u%gment o' t&e 3ig& Court o' ;ala#a b# t&e evi%en"e it oCere%. )etitioner8s sole
,itness, testi$e% to t&e eCe"t t&at &e is in a"tive pra"ti"e o' t&e la, pro'ession in
;ala#siaA t&at &e ,as "onne"te% ,it& /.rine an% Compan# as :egal 0ssistant up to
19M1A t&at private respon%ent, t&en .no,n as Constru"tion an% 2evelopment
Corporation o' t&e )&ilippines, ,as sue% b# &is "lient, 0siavest ;er"&ant 5an.ers
(; 5er&a%, in +uala :umpurA t&at t&e ,rit o' summons ,ere serve% on ;ar"& 17,
19M3 at t&e registere% oJ"e o' private respon%ent an% on ;ar"& 21, 19M3 on Cora
/. 2eala, a $nan"ial planning oJ"er o' private respon%ent 'or /out&east 0sia
operationsA t&at upon t&e $ling o' t&e "ase, ;essrs. 0llen an% Gle%&ill, 0%vo"ates
an% /oli"itors, ,it& a%%ress at 24t& Eloor, H;5C 5uil%ing, !alan /ulaiman, +uala
:umpur, entere% t&eir "on%itional appearan"e 'or private respon%ent Buestioning
t&e regularit# o' t&e servi"e o' t&e ,rit o' summons but subseBuentl# ,it&%re, t&e
same ,&en it realiGe% t&at t&e ,rit ,as properl# serve%A t&at be"ause private
respon%ent 'aile% to $le a statement o' %e'ense ,it&in t,o (2 ,ee.s, petitioner
$le% an appli"ation 'or summar# (u%gment an% submitte% aJ%avits an%
%o"umentar# evi%en"e in support o' its "laimA t&at t&e matter ,as t&en &ear%
be'ore t&e 3ig& Court o' +uala :umpur in a series o' %ates ,&ere private
respon%ent ,as represente% b# "ounselA an% t&at t&e en% result o' all t&ese
pro"ee%ings is t&e (u%gment soug&t to be en'or"e%.
7n a%%ition to t&e sai% testimonial evi%en"e, petitioner also oCere% t&e
%o"umentar# evi%en"e to support t&eir "laim.
3aving t&us proven, t&roug& t&e 'oregoing evi%en"e, t&e e-isten"e an%
aut&enti"it# o' t&e 'oreign (u%gment, sai% 'oreign (u%gment en(o#s presumptive
vali%it# an% t&e bur%en t&en 'ell upon t&e part# ,&o %isputes its vali%it#, &erein
private respon%ent, to prove ot&er,ise. 3o,ever, private respon%ent 'aile% to
L
suJ"ientl# %is"&arge t&e bur%en t&at 'ell upon it N to prove b# "lear an%
"onvin"ing evi%en"e t&e groun%s ,&i"& it relie% upon to prevent en'or"ement o'
t&e ;ala#sian 3ig& Court (u%gment.
MI)ARES V! RANADA (2005)
F"-.s:
7nvo.ing t&e 0lien *ort 0"t, petitioners ;i(ares, et al.O, all o' ,&om suCere% &uman
rig&ts violations %uring t&e ;ar"os era, obtaine% a Einal !u%gment in t&eir 'avor
against t&e Estate o' t&e late Eer%inan% ;ar"os amounting to roug&l# P1.95 in
"ompensator# an% e-emplar# %amages 'or tortuous violations o' international la,
in t&e H/ 2istri"t Court o' 3a,aii. *&is Einal !u%gment ,as aJrme% b# t&e H/ Court
o' 0ppeals.
0s a "onseBuen"e, )etitioners $le% a Complaint ,it& t&e R*C ;a.ati 'or t&e
en'or"ement o' t&e Einal !u%gment, pa#ing )410 as %o".et an% $ling 'ees base% on
Rule 141, Q7(b ,&ere t&e value o' t&e sub(e"t matter is in"apable o' pe"uniar#
estimation. *&e Estate o' ;ar"os &o,ever, $le% a ;*2 alleging t&e non6pa#ment o'
t&e "orre"t $ling 'ees. R*C ;a.ati %ismisse% t&e Complaint stating t&at t&e sub(e"t
matter ,as "apable o' pe"uniar# estimation as it involve% a (u%gment ren%ere% b#
a 'oreign "ourt or%ering t&e pa#ment o' a %e$nite sum o' mone# allo,ing 'or t&e
eas# %etermination o' t&e value o' t&e 'oreign (u%gment. 0s su"&, t&e proper $ling
'ee ,as )472;, ,&i"& )etitioners &a% not pai%.
Iss*/: 1&et&er or not t&e amount pai% b# t&e )etitioners is t&e proper $ling 'ee.

R*+0#1:
Kes, but on a %iCerent basisDamount merel# "orrespon%s to t&e same amount
reBuire% 'or =ot&er a"tions not involving propert#>. R*C ;a.ati erre% in "on"lu%ing
t&at t&e $ling 'ee s&oul% be "ompute% on t&e basis o' t&e total sum "laime% or t&e
state% value o' t&e propert# in litigation. *&e )etitioner8s Complaint ,as lo%ge%
I
against t&e Estate o' ;ar"os but it is "learl# base% on a (u%gment, t&e Einal
!u%gment o' t&e H/ 2istri"t Court. 3o,ever, t&e )etitioners err in stating t&at t&e
Einal !u%gment is in"apable o' pe"uniar# estimation be"ause it is so "apable.
?n t&is point, )etitioners state t&at t&is mig&t lea% to an instan"e ,&erein a $rst
level "ourt (;*C, ;e*C, et". ,oul% &ave (uris%i"tion to en'or"e a 'oreign (u%gment.
Hn%er t&e 5.).129, su"& "ourts are not veste% ,it& su"& (uris%i"tion. Q33 o' 5.).129
re'ers to instan"es ,&erein t&e "ause o' a"tion or sub(e"t matter pertains to an
assertion o' rig&ts over propert# or a sum o' mone#. 5ut &ere, t&e sub(e"t matter is
t&e 'oreign (u%gment itsel'. Q1I o' 5.).129 reveals t&at t&e "omplaint 'or
en'or"ement o' (u%gment even i' "apable o' pe"uniar# estimation ,oul% 'all un%er
t&e (uris%i"tion o' t&e R*Cs.
*&us, t&e Complaint to en'or"e t&e H/ 2istri"t Court (u%gment is one "apable o'
pe"uniar# estimations but at t&e same time, it is also an a"tion base% on (u%gment
against an estate, t&us pla"ing it be#on% t&e ambit o' Q7(a o' Rule 141. 1&at
governs t&e proper "omputation o' t&e $ling 'ees over Complaints 'or t&e
en'or"ement o' 'oreign (u%gments is Q7(b(3, involving =ot&er a"tions not involving
propert#.>
N&2.34/s. 520/#. A02+0#/s( I#-! v! CA ('665)
G.R. No. 112L73 Eebruar# 9, 199L
:essons 0ppli"able< *erritorialit# )rin"iple ("on@i"ts o' la,
FACTS:
Nort&,est 0irlines (Nort&,est an% C.E. /&arp 4 Compan# (C.E., t&roug& its
!apan bran"&, entere% into an 7nternational )assenger /ales 0gen"#
0greement, ,&ereb# t&e Nort&,est aut&oriGe% t&e C.E. to sell its air
transportation ti".ets
;ar"& 2L, 19M0< Hnable to remit t&e pro"ee%s o' t&e ti".et
sales, Nort&,est sue% C.E. in *o.#o, !apan, 'or "olle"tion o' t&e unremitte%
pro"ee%s o' t&e ti".et sales, ,it& "laim 'or %amages
0pril 11, 19M0< ,rit o' summons ,as issue% b# t&e 3It& Civil 2epartment,
*o.#o 2istri"t Court o' !apan
o *&e attempt to serve t&e summons ,as unsu""ess'ul be"ause ;r.
2inoGo ,as in ;anila an% ,oul% be ba". on 0pril 24, 19M0
7
0pril 24, 19M0< ;r. 2inoGo returne% to C.E. ?J"e to serve t&e summons but
&e re'use% to re"eive "laiming t&at &e no longer an emplo#ee
0'ter t&e 2 attempts o' servi"e ,ere unsu""ess'ul, /upreme Court o' !apan
sent t&e summons toget&er ,it& t&e ot&er legal %o"uments to t&e ;inistr# o'
Eoreign 0Cairs o' !apanR !apanese Embass# in ;anilaR;inistr# (no,
2epartment o' Eoreign 0Cairs o' t&e )&ilippinesRE-e"utive !u%ge o' t&e
Court o' Eirst 7nstan"e (no, Regional *rial Court o' ;anila ,&o or%ere%
2eput# /&eriC Rolan%o 5alingitRC.E. ;ain ?J"e
0ugust 2M, 19M0< C.E. re"eive% 'rom 2eput# /&eriC Rolan%o 5alingit t&e ,rit
o' summons but 'aile% to appear at t&e s"&e%ule% &earing.
!anuar# 29, 19M1< *o.#o Court ren%ere% (u%gment or%ering t&e C.E. to
pa# M3,1LM,19L Ken an% %amages 'or %ela# at t&e rate o' IS per annum
'rom 0ugust 2M, 19M0 up to an% until pa#ment is "omplete%
;ar"& 24, 19M1< C.E. re"eive% 'rom 2eput# /&eriC 5alingit "op# o' t&e
(u%gment. C.E. %i% not appeal so it be"ame $nal an% e-e"utor#
;a# 20, 19M3< Nort&,est $le% a suit 'or en'or"ement o' t&e (u%gment a R*C
!ul# 1I, 19M3< C.E. averre% t&at t&e !apanese Court soug&t to be en'or"e% is
null an% voi% an% unen'or"eable in t&is (uris%i"tion &aving been ren%ere%
,it&out %ue an% proper noti"e an%9or ,it& "ollusion or 'rau% an%9or upon a
"lear mista.e o' la, an% 'a"t. *&e 'oreign (u%gment in t&e !apanese Court
soug&t in t&is a"tion is null an% voi% 'or ,ant o' (uris%i"tion over t&e person
o' t&e %e'en%ant "onsi%ering t&at t&is is an a"tion in personam. *&e pro"ess
o' t&e Court in !apan sent to t&e )&ilippines ,&i"& is outsi%e !apanese
(uris%i"tion "annot "on'er (uris%i"tion over t&e %e'en%ant in t&e "ase be'ore
t&e !apanese Court o' t&e "ase at bar
C0 sustaine% R*C< Court agrees t&at i' t&e C.E. in a 'oreign "ourt is a resi%ent
in t&e "ourt o' t&at 'oreign "ourt su"& "ourt "oul% a"Buire (uris%i"tion over
t&e person o' C.E. but it must be serve% in t&e territorial (uris%i"tion o' t&e
'oreign "ourt
ISSUE: 19N t&e !apanese Court &as (uris%i"tion over C.E.
HELD: KE/. instant petition is partl# GR0N*E2, an% t&e "&allenge% %e"ision is
0EE7R;E2 inso'ar as it %enie% N?R*31E/*Fs "laims 'or attorne#s 'ees, litigation
e-penses, an% e-emplar# %amages
ConseBuentl#, t&e part# atta".ing (C.E. a 'oreign (u%gment &as t&e bur%en
o' over"oming t&e presumption o' its vali%it#
0""or%ingl#, t&e presumption o' vali%it# an% regularit# o' t&e servi"e o'
summons an% t&e %e"ision t&erea'ter ren%ere% b# t&e !apanese "ourt must
stan%.
0ppl#ing it, t&e !apanese la, on t&e matter is presume% to be similar ,it&
t&e )&ilippine la, on servi"e o' summons on a private 'oreign "orporation
%oing business in t&e )&ilippines. /e"tion 14, Rule 14 o' t&e Rules o' Court
provi%es t&at i' t&e %e'en%ant is a 'oreign "orporation %oing business in t&e
)&ilippines, servi"e ma# be ma%e<
M
o (1 on its resi%ent agent %esignate% in a""or%an"e ,it& la, 'or t&at
purpose, or,
o (2 i' t&ere is no su"& resi%ent agent, on t&e government oJ"ial
%esignate% b# la, to t&at eCe"tA or
o (3 on an# o' its oJ"ers or agents ,it&in t&e )&ilippines.
o 7' t&e 'oreign "orporation &as %esignate% an agent to re"eive
summons, t&e %esignation is e-"lusive, an% servi"e o' summons is
,it&out 'or"e an% gives t&e "ourt no (uris%i"tion unless ma%e upon
&im.
o 1&ere t&e "orporation &as no su"& agent, servi"e s&all be ma%e on t&e
government oJ"ial %esignate% b# la,, to ,it<
(a t&e 7nsuran"e Commissioner in t&e "ase o' a 'oreign
insuran"e "ompan#
(b t&e /uperinten%ent o' 5an.s, in t&e "ase o' a 'oreign ban.ing
"orporation
(" t&e /e"urities an% E-"&ange Commission, in t&e "ase o' ot&er
'oreign "orporations %ul# li"ense% to %o business in t&e
)&ilippines. 1&enever servi"e o' pro"ess is so ma%e, t&e
government oJ"e or oJ"ial serve% s&all transmit b# mail a "op#
o' t&e summons or ot&er legal pro""ess to t&e "orporation at its
&ome or prin"ipal oJ"e. *&e sen%ing o' su"& "op# is a ne"essar#
part o' t&e servi"e.
*&e servi"e on t&e proper government oJ"ial un%er /e"tion 14, Rule 14 o'
t&e Rules o' Court, in relation to /e"tion 12M o' t&e Corporation Co%e
?ur la,s an% (urispru%en"e in%i"ate a purpose to assimilate 'oreign
"orporations, %ul# li"ense% to %o business &ere, to t&e status o' %omesti"
"orporations
1e t&in. it ,oul% be entirel# out o' line ,it& t&is poli"# s&oul% ,e ma.e a
%is"rimination against a 'oreign "orporation, li.e t&e petitioner, an% sub(e"t
its propert# to t&e &ars& ,rit o' seiGure b# atta"&ment ,&en it &as "omplie%
not onl# ,it& ever# reBuirement o' la, ma%e spe"iall# o' 'oreign
"orporations, but in a%%ition ,it& ever# reBuirement o' la, ma%e o' %omesti"
"orporations
7n as mu"& as /30R) ,as a%mitte%l# %oing business in !apan t&roug& its 'our
%ul# registere% bran"&es at t&e time t&e "olle"tion suit against it ,as $le%,
t&en in t&e lig&t o' t&e pro"essual presumption, /30R) ma# be %eeme% a
resi%ent o' !apan, an%, as su"&, ,as amenable to t&e (uris%i"tion o' t&e
"ourts t&erein an% ma# be %eeme% to &ave assente% to t&e sai% "ourtsF
la,'ul met&o%s o' serving pro"ess.
0""or%ingl#, t&e e-traterritorial servi"e o' summons on it b# t&e !apanese
Court ,as vali% not onl# un%er t&e pro"essual presumption but also be"ause
o' t&e presumption o' regularit# o' per'orman"e o' oJ"ial %ut#.
9
PHILSEC VS. CA
%HILSEC INVESTMENT /. "+ vs!CA /. "+
G!R! N&! '03763
)*#/ '6( '667
FACTS< )rivate respon%ent 2u"at obtaine% separate loans 'rom petitioners 0#ala
7nternational Einan"e :imite% (0K0:0 an% )&ilse" 7nvestment Corp ()37:/EC,
se"ure% b# s&ares o' sto". o,ne% b# 2u"at.
7n or%er to 'a"ilitate t&e pa#ment o' t&e loans, private respon%ent 14MM, 7n".,
t&roug& its presi%ent, private respon%ent 2ai", assume% 2u"at8s obligation un%er
an 0greement, ,&ereb# 14MM, 7n". e-e"ute% a 1arrant# 2ee% ,it& Ten%or8s :ien
b# ,&i"& it sol% to petitioner 0t&ona 3ol%ings, N.T. (0*3?N0 a par"el o' lan% in
*e-as, H./.0., ,&ile )37:/EC an% 0K0:0 e-ten%e% a loan to 0*3?N0 as initial
pa#ment o' t&e pur"&ase pri"e. *&e balan"e ,as to be pai% b# means o' a
promissor# note e-e"ute% b# 0*3?N0 in 'avor o' 14MM, 7n". /ubseBuentl#, upon
t&eir re"eipt o' t&e mone# 'rom 14MM, 7n"., )37:/EC an% 0K0:0 release% 2u"at 'rom
&is in%ebte%ness an% %elivere% to 14MM, 7n". all t&e s&ares o' sto". in t&eir
possession belonging to 2u"at.
0s 0*3?N0 'aile% to pa# t&e interest on t&e balan"e, t&e entire amount "overe% b#
t&e note be"ame %ue an% %eman%able. 0""or%ingl#, private respon%ent 14MM, 7n".
sue% petitioners )37:/EC, 0K0:0, an% 0*3?N0 in t&e Hnite% /tates 'or pa#ment o'
t&e balan"e an% 'or %amages 'or brea"& o' "ontra"t an% 'or 'rau% allege%l#
perpetrate% b# petitioners in misrepresenting t&e mar.etabilit# o' t&e s&ares o'
sto". %elivere% to 14MM, 7n". un%er t&e 0greement.
10
1&ile t&e Civil Case ,as pen%ing in t&e Hnite% /tates, petitioners $le% a "omplaint
=Eor /um o' ;one# ,it& 2amages an% 1rit o' )reliminar# 0tta"&ment> against
private respon%ents in t&e R*C ;a.ati. *&e "omplaint reiterate% t&e allegation o'
petitioners in t&eir respe"tive "ounter"laims in t&e Civil 0"tion in t&e Hnite% /tates
2istri"t Court o' /out&ern *e-as t&at private respon%ents "ommitte% 'rau% b#
selling t&e propert# at a pri"e 400 per"ent more t&an its true value.
2u"at move% to %ismiss t&e Civil Case in t&e R*C6;a.ati on t&e groun%s o' (1 litis
pen%entia, vis6a6vis t&e Civil 0"tion in t&e H./., (2 'orum non "onveniens, an% (3
'ailure o' petitioners )37:/EC an% 5)767E: to state a "ause o' a"tion.
*&e trial "ourt grante% 2u"at8s ;*2, stating t&at =t&e evi%entiar# reBuirements o'
t&e "ontrovers# ma# be more suitabl# trie% be'ore t&e 'orum o' t&e litis pen%entia
in t&e H./., un%er t&e prin"iple in private international la, o' 'orum non
"onveniens,> even as it note% t&at 2u"at ,as not a part# in t&e H./. "ase.
)etitioners appeale% to t&e C0, arguing t&at t&e trial "ourt erre% in appl#ing t&e
prin"iple o' litis pen%entia an% 'orum non "onveniens.
*&e C0 aJrme% t&e %ismissal o' Civil Case against 2u"at, 14MM, 7n"., an% 2ai" on
t&e groun% o' litis pen%entia.
ISSUE< is t&e Civil Case in t&e R*C6;a.ati barre% b# t&e (u%gment o' t&e H./.
"ourtU
HELD< C0 reverse%. Case reman%e% to R*C6;a.ati
N5
1&ile t&is Court &as given t&e eCe"t o' res (u%i"ata to 'oreign (u%gments in several
"ases, it ,as a'ter t&e parties oppose% to t&e (u%gment &a% been given ample
opportunit# to repel t&em on groun%s allo,e% un%er t&e la,. *&is is be"ause in t&is
(uris%i"tion, ,it& respe"t to a"tions in personam, as %istinguis&e% 'rom a"tions in
rem, a 'oreign (u%gment merel# "onstitutes prima 'a"ie evi%en"e o' t&e (ustness o'
t&e "laim o' a part# an%, as su"&, is sub(e"t to proo' to t&e "ontrar#. Rule 39, QL0
provi%es<
/e". L0. ECe"t o' 'oreign (u%gments. D *&e eCe"t o' a (u%gment o' a tribunal o' a
'oreign "ountr#, &aving (uris%i"tion to pronoun"e t&e (u%gment is as 'ollo,s<
(a 7n "ase o' a (u%gment upon a spe"i$" t&ing, t&e (u%gment is "on"lusive upon
t&e title to t&e t&ingA
(b 7n "ase o' a (u%gment against a person, t&e (u%gment is presumptive evi%en"e
o' a rig&t as bet,een t&e parties an% t&eir su""essors in interest b# a subseBuent
titleA but t&e (u%gment ma# be repelle% b# evi%en"e o' a ,ant o' (uris%i"tion, ,ant
o' noti"e to t&e part#, "ollusion, 'rau%, or "lear mista.e o' la, or 'a"t.
7n t&e "ase at bar, it "annot be sai% t&at petitioners ,ere given t&e opportunit# to
"&allenge t&e (u%gment o' t&e H./. "ourt as basis 'or %e"laring it res (u%i"ata or
"on"lusive o' t&e rig&ts o' private respon%ents. *&e pro"ee%ings in t&e trial "ourt
,ere summar#. Neit&er t&e trial "ourt nor t&e appellate "ourt ,as even 'urnis&e%
11
"opies o' t&e plea%ings in t&e H./. "ourt or apprise% o' t&e evi%en"e presente%
t&ereat, to assure a proper %etermination o' ,&et&er t&e issues t&en being
litigate% in t&e H./. "ourt ,ere e-a"tl# t&e issues raise% in t&is "ase su"& t&at t&e
(u%gment t&at mig&t be ren%ere% ,oul% "onstitute res (u%i"ata.
/e"on%. Nor is t&e trial "ourt8s re'usal to ta.e "ogniGan"e o' t&e "ase (usti$able
un%er t&e prin"iple o' 'orum non "onveniens<
Eirst, a ;*2 is limite% to t&e groun%s un%er Rule 1I, se".1, ,&i"& %oes not in"lu%e
'orum non "onveniens. *&e propriet# o' %ismissing a "ase base% on t&is prin"iple
reBuires a 'a"tual %etermination, &en"e, it is more properl# "onsi%ere% a matter o'
%e'ense.
/e"on%, ,&ile it is ,it&in t&e %is"retion o' t&e trial "ourt to abstain 'rom assuming
(uris%i"tion on t&is groun%, it s&oul% %o so onl# a'ter =vital 'a"ts are establis&e%, to
%etermine ,&et&er spe"ial "ir"umstan"es> reBuire t&e "ourt8s %esistan"e.
MHC AND MHICL vs! NLRC /. "+ (G!R! N&! '20077) 5-.&8/2 '3( 2000
FACTS< private respon%ent /antos ,as an overseas ,or.er emplo#e% as a printer
at t&e ;aGoon )rinting )ress, /ultanate o' ?man. /ubseBuentl# &e ,as %ire"tl#
&ire% b# t&e )ala"e 3otel, 5ei(ing, )eople8s Republi" o' C&ina an% later terminate%
%ue to retren"&ment.
12
)etitioners are t&e ;anila 3otel Corporation (=;3C> an% t&e ;anila 3otel
7nternational Compan#, :imite% (=;37C:>.
1&en t&e "ase ,as $le% in 1990, ;3C ,as still a government6o,ne% an%
"ontrolle% "orporation %ul# organiGe% an% e-isting un%er t&e la,s o' t&e
)&ilippines. ;37C: is a "orporation %ul# organiGe% an% e-isting un%er t&e la,s o'
3ong +ong. ;3C is an =in"orporator> o' ;37C:, o,ning L0S o' its "apital sto"..
5# virtue o' a =management agreement> ,it& t&e )ala"e 3otel, ;37C: traine% t&e
personnel an% staC o' t&e )ala"e 3otel at 5ei(ing, C&ina.
No, t&e 'a"ts.
2uring &is emplo#ment ,it& t&e ;aGoon )rinting )ress, respon%ent /antos
re"eive% a letter 'rom ;r. /&mi%t, General ;anager, )ala"e 3otel, 5ei(ing, C&ina.
;r. /"&mi%t in'orme% respon%ent /antos t&at &e ,as re"ommen%e% b# one
5uenio, a 'rien% o' &is. ;r. /&mi%t oCere% respon%ent /antos t&e same position as
printer, but ,it& a &ig&er mont&l# salar# an% in"rease% bene$ts. Respon%ent
/antos ,rote to ;r. /&mi%t an% signi$e% &is a""eptan"e o' t&e oCer.
*&e )ala"e 3otel ;anager, ;r. 3en. maile% a rea%# to sign emplo#ment "ontra"t
to respon%ent /antos. /antos resigne% 'rom t&e ;aGoon )rinting )ress. /antos
,rote t&e )ala"e 3otel an% a".no,le%ge% ;r. 3en.8s letter. *&e emplo#ment
"ontra"t state% t&at &is emplo#ment ,oul% be 'or a perio% o' t,o #ears. 3e t&en
starte% to ,or. at t&e )ala"e 3otel.
/ubseBuentl#, respon%ent /antos signe% an amen%e% =emplo#ment agreement>
,it& t&e )ala"e 3otel. 7n t&e "ontra"t, ;r. /&mi%t represente% t&e )ala"e 3otel. *&e
Ti"e )resi%ent (?perations an% 2evelopment o' petitioner ;37C: Cergue%a signe%
t&e emplo#ment agreement un%er t&e ,or% =note%>.
0'ter ,or.ing in t&e )ala"e &otel 'or less t&an 1 #ear, t&e )ala"e 3otel in'orme%
respon%ent /antos b# letter signe% b# ;r. /&mi%t t&at &is emplo#ment at t&e
)ala"e 3otel print s&op ,oul% be terminate% %ue to business reverses broug&t
about b# t&e politi"al up&eaval in C&ina. *&e )ala"e 3otel terminate% t&e
emplo#ment o' /antos an% pai% all bene$ts %ue &im, in"lu%ing &is plane 'are ba".
to t&e )&ilippines. /antos ,as repatriate% to t&e )&ilippines.
/antos $le% a "omplaint 'or illegal %ismissal ,it& t&e 0rbitration 5ran"&, NCR,
N:RC. 3e pra#e% 'or an a,ar% o' 02, E2 an% 0E 'or. *&e "omplaint name% ;3C,
;37C:, t&e )ala"e 3otel an% ;r. /&mi%t as respon%ents. *&e )ala"e 3otel an% ;r.
/&mi%t ,ere not serve% ,it& summons an% neit&er parti"ipate% in t&e pro"ee%ings
be'ore t&e :0.
*&e :0 %e"i%e% t&e "ase against petitioners. )etitioners appeale% to t&e N:RC,
arguing t&at t&e )?E0, not t&e N:RC &a% (uris%i"tion over t&e "ase. *&e N:RC
promulgate% a resolution, stating t&at t&e appeale% 2e"ision be %e"lare% null an%
voi% 'or ,ant o' (uris%i"tion
/antos move% 'or re"onsi%eration o' t&e a'ore6Buote% resolution. 3e argue% t&at
t&e "ase ,as not "ogniGable b# t&e )?E0 as &e ,as not an =overseas "ontra"t
13
,or.er. *&e N:RC grante% t&e motion an% reverse% itsel'. *&e N:RC %ire"te%
anot&er :0 to &ear t&e "ase on t&e Buestion o' ,&et&er private respon%ent ,as
retren"&e% or %ismisse%. *&e :a 'oun% t&at /antos ,as illegall# %ismisse% 'rom
emplo#ment an% re"ommen%e% t&at &e be pai% a"tual %amages eBuivalent to &is
salaries 'or t&e une-pire% portion o' &is "ontra"t. *&e N:RC rule% in 'avor o' private
respon%ent. )etitioners $le% an ;R arguing t&at t&e :08s re"ommen%ation &a% no
basis in la, an% in 'a"t, &o,ever it ,as %enie%. 3en"e, t&is petition.
ISSUE< 7s t&e N:RC a proper 'orum to %e"i%e t&is "aseU
3E:2< petition grante%A t&e or%ers an% resolutions o' t&e N:RC are annulle%.
N5
Eorum Non6Conveniens
*&e N:RC ,as a seriousl# in"onvenient 'orum.
1e note t&at t&e main aspe"ts o' t&e "ase transpire% in t,o 'oreign (uris%i"tions
an% t&e "ase involves purel# 'oreign elements. *&e onl# lin. t&at t&e )&ilippines
&as ,it& t&e "ase is t&at /antos is a Eilipino "itiGen. *&e )ala"e 3otel an% ;37C:
are 'oreign "orporations. Not all "ases involving our "itiGens "an be trie% &ere.
*&e emplo#ment "ontra"t. D Respon%ent /antos ,as &ire% %ire"tl# b# t&e )ala"e
3otel, a 'oreign emplo#er, t&roug& "orrespon%en"e sent to t&e /ultanate o' ?man,
,&ere respon%ent /antos ,as t&en emplo#e%. 3e ,as &ire% ,it&out t&e
intervention o' t&e )?E0 or an# aut&oriGe% re"ruitment agen"# o' t&e government.
Hn%er t&e rule o' 'orum non "onveniens, a )&ilippine "ourt or agen"# ma# assume
(uris%i"tion over t&e "ase i' it "&ooses to %o so provi%e%< (1 t&at t&e )&ilippine
"ourt is one to ,&i"& t&e parties ma# "onvenientl# resort toA (2 t&at t&e )&ilippine
"ourt is in a position to ma.e an intelligent %e"ision as to t&e la, an% t&e 'a"tsA
an% (3 t&at t&e )&ilippine "ourt &as or is li.el# to &ave po,er to en'or"e its
%e"ision. *&e "on%itions are unavailing in t&e "ase at bar.
Not Convenient. D 1e 'ail to see &o, t&e N:RC is a "onvenient 'orum given t&at all
t&e in"i%ents o' t&e "ase D 'rom t&e time o' re"ruitment, to emplo#ment to
%ismissal o""urre% outsi%e t&e )&ilippines. *&e in"onvenien"e is "ompoun%e% b#
t&e 'a"t t&at t&e proper %e'en%ants, t&e )ala"e 3otel an% ;37C: are not nationals
o' t&e )&ilippines. Neit&er .are t&e# =%oing business in t&e )&ilippines.> :i.e,ise,
t&e main ,itnesses, ;r. /&mi%t an% ;r. 3en. are non6resi%ents o' t&e )&ilippines.
No po,er to %etermine appli"able la,. D Neit&er "an an intelligent %e"ision be
ma%e as to t&e la, governing t&e emplo#ment "ontra"t as su"& ,as per'e"te% in
'oreign soil. *&is "alls to 'ore t&e appli"ation o' t&e prin"iple o' le- lo"i "ontra"tus
(t&e la, o' t&e pla"e ,&ere t&e "ontra"t ,as ma%e.
*&e emplo#ment "ontra"t ,as not per'e"te% in t&e )&ilippines. /antos signi$e% &is
a""eptan"e b# ,riting a letter ,&ile &e ,as in t&e Republi" o' ?man. *&is letter
,as sent to t&e )ala"e 3otel in t&e )eople8s Republi" o' C&ina.
14
No po,er to %etermine t&e 'a"ts. D Neit&er "an t&e N:RC %etermine t&e 'a"ts
surroun%ing t&e allege% illegal %ismissal as all a"ts "omplaine% o' too. pla"e in
5ei(ing, )eople8s Republi" o' C&ina. *&e N:RC ,as not in a position to %etermine
,&et&er t&e *iannamen /Buare in"i%ent trul# a%versel# aCe"te% operations o' t&e
)ala"e 3otel as to (usti'# /antos8 retren"&ment.
)rin"iple o' eCe"tiveness, no po,er to e-e"ute %e"ision. D Even assuming t&at a
proper %e"ision "oul% be rea"&e% b# t&e N:RC, su"& ,oul% not &ave an# bin%ing
eCe"t against t&e emplo#er, t&e )ala"e 3otel. *&e )ala"e 3otel is a "orporation
in"orporate% un%er t&e la,s o' C&ina an% ,as not even serve% ,it& summons.
!uris%i"tion over its person ,as not a"Buire%.
*&is is not to sa# t&at )&ilippine "ourts an% agen"ies &ave no po,er to solve
"ontroversies involving 'oreign emplo#ers. Neit&er are ,e sa#ing t&at ,e %o not
&ave po,er over an emplo#ment "ontra"t e-e"ute% in a 'oreign "ountr#. 7' /antos
,ere an =overseas "ontra"t ,or.er>, a )&ilippine 'orum, spe"i$"all# t&e )?E0, not
t&e N:RC, ,oul% prote"t &im. 3e is not an =overseas "ontra"t ,or.er> a 'a"t ,&i"&
&e a%mits ,it& "onvi"tion.
Even assuming t&at t&e N:RC ,as t&e proper 'orum, even on t&e merits, t&e
N:RC8s %e"ision "annot be sustaine%.
77. ;3C Not :iable
Even i' ,e assume t,o t&ings< (1 t&at t&e N:RC &a% (uris%i"tion over t&e "ase, an%
(2 t&at ;37C: ,as liable 'or /antos8 retren"&ment, still ;3C, as a separate an%
%istin"t (uri%i"al entit# "annot be &el% liable.
*rue, ;3C is an in"orporator o' ;37C: an% o,ns L0S o' its "apital sto".. 3o,ever,
t&is is not enoug& to pier"e t&e veil o' "orporate $"tion bet,een ;37C: an% ;3C.
7n *ra%ers Ro#al 5an. v. C0, ,e &el% t&at =t&e mere o,ners&ip b# a single
sto".&ol%er or b# anot&er "orporation o' all or nearl# all o' t&e "apital sto". o' a
"orporation is not o' itsel' a suJ"ient reason 'or %isregar%ing t&e $"tion o'
separate "orporate personalities.>
7t is basi" t&at a "orporation &as a personalit# separate an% %istin"t 'rom t&ose
"omposing it as ,ell as 'rom t&at o' an# ot&er legal entit# to ,&i"& it ma# be
relate%. Clear an% "onvin"ing evi%en"e is nee%e% to pier"e t&e veil o' "orporate
$"tion. 7n t&is "ase, ,e $n% no evi%en"e to s&o, t&at ;37C: an% ;3C are one an%
t&e same entit#.
777. ;37C: not :iable
/antos pre%i"ates ;37C:8s liabilit# on t&e 'a"t t&at ;37C: =signe%> &is emplo#ment
"ontra"t ,it& t&e )ala"e 3otel. *&is 'a"t 'ails to persua%e us.
Eirst, ,e note t&at t&e Ti"e )resi%ent (?perations an% 2evelopment o' ;37C:,
Cergue%a signe% t&e emplo#ment "ontra"t as a mere ,itness. 3e merel# signe%
un%er t&e ,or% =note%>.
1&en one =notes> a "ontra"t, one is not e-pressing &is agreement or approval, as
a part# ,oul%. 7n /i"&ang"o v. 5oar% o' Commissioners o' 7mmigration, t&e Court
1L
re"ogniGe% t&at t&e term =note%> means t&at t&e person so noting &as merel#
ta.en "ogniGan"e o' t&e e-isten"e o' an a"t or %e"laration, ,it&out e-er"ising a
(u%i"ious %eliberation or ren%ering a %e"ision on t&e matter.
/e"on%, an% more importantl#, t&ere ,as no e-isting emplo#er6emplo#ee
relations&ip bet,een /antos an% ;37C:. 7n %etermining t&e e-isten"e o' an
emplo#er6emplo#ee relations&ip, t&e 'ollo,ing elements are "onsi%ere%<
=(1 t&e sele"tion an% engagement o' t&e emplo#eeA
=(2 t&e pa#ment o' ,agesA
=(3 t&e po,er to %ismissA an%
=(4 t&e po,er to "ontrol emplo#ee8s "on%u"t.>
;37C: %i% not &ave an% %i% not e-er"ise an# o' t&e a'orementione% po,ers. 7t %i%
not sele"t respon%ent /antos as an emplo#ee 'or t&e )ala"e 3otel. 3e ,as re'erre%
to t&e )ala"e 3otel b# &is 'rien%, 5uenio. ;37C: %i% not engage respon%ent /antos
to ,or.. *&e terms o' emplo#ment ,ere negotiate% an% $naliGe% t&roug&
"orrespon%en"e bet,een /antos, ;r. /"&mi%t an% ;r. 3en., ,&o ,ere oJ"ers an%
representatives o' t&e )ala"e 3otel an% not ;37C:. Neit&er %i% /antos a%%u"e an#
proo' t&at ;37C: &a% t&e po,er to "ontrol &is "on%u"t. Einall#, it ,as t&e )ala"e
3otel, t&roug& ;r. /"&mi%t an% not ;37C: t&at terminate% respon%ent /antos8
servi"es.
:i.e,ise, t&ere is no evi%en"e to s&o, t&at t&e )ala"e 3otel an% ;37C: are one
an% t&e same entit#. *&e 'a"t t&at t&e )ala"e 3otel is a member o' t&e =;anila
3otel Group> is not enoug& to pier"e t&e "orporate veil bet,een ;37C: an% t&e
)ala"e 3otel.
Consi%ering t&at t&e N:RC ,as 'orum non6"onveniens an% "onsi%ering 'urt&er t&at
no emplo#er6emplo#ee relations&ip e-iste% bet,een ;37C:, ;3C an% /antos, t&e
:0 "learl# &a% no (uris%i"tion over respon%ent8s "laim in t&e N:RC "ase. 7n all t&e
"ases un%er t&e e-"lusive an% original (uris%i"tion o' t&e :0, an emplo#er6
emplo#ee relations&ip is an in%ispensable (uris%i"tional reBuirement.
HSC VS! SHERMAN
H5NGK5NG AND SHANGHAI ANKING C5R%5RATI5N (HSC) vs! SHERMAN
/. "+
G!R! N&! 72767
A*1*s. ''( '686
FACTS< 7t appears t&at sometime in 19M1, Eastern 5oo. /uppl# /ervi"e )*E, :t%.
(C?;)0NK, a "ompan# in"orporate% in /ingapore applie% ,it& an% ,as grante% b#
3/5C /ingapore bran"& an over%ra't 'a"ilit# in t&e ma-imum amount o' /ingapore
%ollars 200,000 ,it& interest at 3S over 3/5C prime rate, pa#able mont&l#, on
amounts %ue un%er sai% over%ra't 'a"ilit#.
0s a se"urit# 'or t&e repa#ment b# t&e C?;)0NK o' sums a%van"e% b# 3/5C to it
t&roug& t&e a'oresai% over%ra't 'a"ilit#, in 19M2, bot& private respon%ents an% a
"ertain :o,e, all o' ,&om ,ere %ire"tors o' t&e C?;)0NK at su"& time, e-e"ute% a
1I
!oint an% /everal Guarantee in 'avor o' 3/5C ,&ereb# private respon%ents an%
:o,e agree% to pa#, (ointl# an% severall#, on %eman% all sums o,e% b# t&e
C?;)0NK to petitioner 50N+ un%er t&e a'orestate% over%ra't 'a"ilit#.
*&e !oint an% /everal Guarantee provi%es, inter alia, t&at<
*&is guarantee an% all rig&ts, obligations an% liabilities arising &ereun%er s&all be
"onstrue% an% %etermine% un%er an% ma# be en'or"e% in a""or%an"e ,it& t&e la,s
o' t&e Republi" o' /ingapore. 1e &ereb# agree t&at t&e Courts o' /ingapore s&all
&ave (uris%i"tion over all %isputes arising un%er t&is guarantee. V
*&e C?;)0NK 'aile% to pa# its obligation. *&us, 3/5C %eman%e% pa#ment an%
inasmu"& as t&e private respon%ents still 'aile% to pa#, 3/5C $le% 0 "omplaint 'or
"olle"tion o' a sum o' mone# against private respon%ents /&erman an% Relo(
be'ore R*C o' WueGon Cit#.
)rivate respon%ents $le% an ;*2 on t&e groun% o' la". o' (uris%i"tion over t&e
sub(e"t matter. *&e trial "ourt %enie% t&e motion. *&e# t&en $le% be'ore t&e
respon%ent 70C a petition 'or pro&ibition ,it& preliminar# in(un"tion an%9or pra#er
'or a restraining or%er. *&e 70C ren%ere% a %e"ision en(oining t&e R*C WueGon Cit#
'rom ta.ing 'urt&er "ogniGan"e o' t&e "ase an% to %ismiss t&e same 'or $ling ,it&
t&e proper "ourt o' /ingapore ,&i"& is t&e proper 'orum. ;R %enie%, &en"e t&is
petition.
ISSUE< 2o )&ilippine "ourts &ave (uris%i"tion over t&e suit, vis6a6vis t&e Guarantee
stipulation regar%ing (uris%i"tionU
HELD< KE/
?ne basi" prin"iple un%erlies all rules o' (uris%i"tion in 7nternational :a,< a /tate
%oes not &ave (uris%i"tion in t&e absen"e o' some reasonable basis 'or e-er"ising
it, ,&et&er t&e pro"ee%ings are in rem Buasi in rem or in personam. *o be
reasonable, t&e (uris%i"tion must be base% on some minimum "onta"ts t&at ,ill not
oCen% tra%itional notions o' 'air pla# an% substantial (usti"e
*&e %e'ense o' private respon%ents t&at t&e "omplaint s&oul% &ave been $le% in
/ingapore is base% merel# on te"&ni"alit#. *&e# %i% not even "laim, mu"& less
prove, t&at t&e $ling o' t&e a"tion &ere ,ill "ause t&em an# unne"essar# trouble,
%amage, or e-pense. ?n t&e ot&er &an%, t&ere is no s&o,ing t&at petitioner 50N+
$le% t&e a"tion &ere (ust to &arass private respon%ents.
OO
7n t&e "ase o' Neville K. :amis Ents., et al. v. :agamon, et"., ,&ere t&e stipulation
,as =XiYn "ase o' litigation, (uris%i"tion s&all be veste% in t&e Court o' 2avao Cit#.>
1e &el%<
0nent t&e "laim t&at 2avao Cit# &a% been stipulate% as t&e venue, suJ"e it to sa#
t&at a stipulation as to venue %oes not pre"lu%e t&e $ling o' suits in t&e resi%en"e
o' plaintiC or %e'en%ant un%er /e"tion 2 (b, Rule 4, R?C, in t&e absen"e o'
Buali'#ing or restri"tive ,or%s in t&e agreement ,&i"& ,oul% in%i"ate t&at t&e
pla"e name% is t&e onl# venue agree% upon b# t&e parties.
0ppl#ing t&e 'oregoing to t&e "ase at bar, t&e parties %i% not t&ereb# stipulate t&at
onl# t&e "ourts o' /ingapore, to t&e e-"lusion o' all t&e rest, &as (uris%i"tion.
17
Neit&er %i% t&e "lause in Buestion operate to %ivest )&ilippine "ourts o' (uris%i"tion.
7n 7nternational :a,, (uris%i"tion is o'ten %e$ne% as t&e lig&t o' a /tate to e-er"ise
aut&orit# over persons an% t&ings ,it&in its boun%aries sub(e"t to "ertain
e-"eptions. *&us, a /tate %oes not assume (uris%i"tion over travelling sovereigns,
ambassa%ors an% %iplomati" representatives o' ot&er /tates, an% 'oreign militar#
units statione% in or mar"&ing t&roug& /tate territor# ,it& t&e permission o' t&e
latter8s aut&orities. *&is aut&orit#, ,&i"& $n%s its sour"e in t&e "on"ept o'
sovereignt#, is e-"lusive ,it&in an% t&roug&out t&e %omain o' t&e /tate. 0 /tate is
"ompetent to ta.e &ol% o' an# (u%i"ial matter it sees $t b# ma.ing its "ourts an%
agen"ies assume (uris%i"tion over all .in%s o' "ases broug&t be'ore t&em
N5TES<
*&e respon%ent 70C li.e,ise rule% t&at<
V 7n a "on@i"t problem, a "ourt ,ill simpl# re'use to entertain t&e "ase i' it is not
aut&oriGe% b# la, to e-er"ise (uris%i"tion. 0n% even i' it is so aut&oriGe%, it ma# still
re'use to entertain t&e "ase b# appl#ing t&e prin"iple o' 'orum non "onveniens. V
3o,ever, ,&et&er a suit s&oul% be entertaine% or %ismisse% on t&e basis o' t&e
prin"iple o' 'orum non "onveniens %epen%s largel# upon t&e 'a"ts o' t&e parti"ular
"ase an% is a%%resse% to t&e soun% %is"retion o' t&e trial "ourt. *&us, t&e 70C
s&oul% not &ave relie% on su"& prin"iple.
1M
CADALIN ET AL VS. POEA ET AL
57ENTEN72? ;. C020:7N, R?:0N2? ;. 0;H:, 2?N0*? 5. ET0NGE:7/*0, an% t&e
rest o' 1,7I7 N0;E26C?;):07N0N*/, t&ru an% b# t&eir 0ttorne#6in6'a"t, 0tt#.
GER0R2? 0. 2E: ;HN2?vs. )37:7))7NE ?TER/E0/ E;):?K;EN*
02;7N7/*R0*7?N8/ 02;7N7/*R0*?R, N:RC, 5R?1N 4 R??* 7N*ERN0*7?N0:, 7NC.
0N29?R 0/70 7N*ERN0*7?N0: 5H7:2ER/ C?R)?R0*7?N
GRN '07776( D/-/98/2 5('667!
FACTS<
*&is is a "onsoli%ation o' 3 "ases o' /)EC70: C7T7: 0C*7?N/ in t&e /upreme Court
'or Certiorari.
?n !une I, 19M4, Ca%alin, 0mul an% Evangelista, in t&eir o,n be&al' an% on be&al'
o' 72M ot&er ?C1s institute% a "lass suit b# $ling an =0men%e% Complaint> ,it&
t&e )?E0 'or mone# "laims arising 'rom t&eir re"ruitment b# 0/70 7N*ERN0*7?N0:
5H7:2ER/ C?R)?R0*7?N (075C an% emplo#ment b# 5R?1N 4 R??*
7N*ERN0*7?N0:, 7NC (5R7 ,&i"& is a 'oreign "orporation ,it& &ea%Buarters in
3ouston, *e-as, an% is engage% in "onstru"tionA ,&ile 075C is a %omesti"
"orporation li"ense% as a servi"e "ontra"tor to re"ruit, mobiliGe an% %eplo# Eilipino
,or.ers 'or overseas emplo#ment on be&al' o' its 'oreign prin"ipals.
*&e amen%e% "omplaint soug&t t&e pa#ment o' t&e une-pire% portion o' t&e
emplo#ment "ontra"ts, ,&i"& ,as terminate% prematurel#, an% se"on%aril#, t&e
pa#ment o' t&e interest o' t&e earnings o' t&e *ravel an% Reserve% Eun%A interest
on all t&e unpai% bene$tsA area ,age an% salar# %iCerential pa#A 'ringe bene$tsA
reimbursement o' /// an% premium not remitte% to t&e ///A re'un% o' ,it&&ol%ing
ta- not remitte% to t&e 57RA penalties 'or "ommitting pro&ibite% pra"ti"esA as ,ell
as t&e suspension o' t&e li"ense o' 075C an% t&e a""re%itation o' 5R77
?n ?"tober 2, 19M4, t&e )?E0 0%ministrator %enie% t&e =;otion to /tri.e ?ut o'
t&e Re"or%s> $le% b# 075C but reBuire% t&e "laimants to "orre"t t&e %e$"ien"ies in
t&e "omplaint pointe% out.
075 an% 5R77 .ept on $ling ;otion 'or E-tension o' *ime to $le t&eir ans,er. *&e
)?E0 .ept on granting su"& motions.
?n November 14, 19M4, "laimants $le% an opposition to t&e motions 'or e-tension
o' time an% as.e% t&at 075C an% 5R77 %e"lare% in %e'ault 'or 'ailure to $le t&eir
ans,ers.
?n 2e"ember 27, 19M4, t&e )?E0 0%ministrator issue% an or%er %ire"ting 075C an%
5R77 to $le t&eir ans,ers ,it&in ten %a#s 'rom re"eipt o' t&e or%er.
(at ma%ami pang motions ang na6$le, ne, "omplainants (oine% t&e "ase, ang
%aming inavail na reme%ies ng bot& parties
19
?n !une 19, 19M7, 075C $nall# submitte% its ans,er to t&e "omplaint. 0t t&e same
&earing, t&e parties ,ere given a perio% o' 1L %a#s 'rom sai% %ate ,it&in ,&i"& to
submit t&eir respe"tive position papers. ?n Eebruar# 24, 19MM, 075C an% 5R77
submitte% position paper. ?n ?"tober 27, 19MM, 075C an% 5R77 $le% a =Consoli%ate%
Repl#,> )?E0 0%minitartor ren%ere% &is %e"ision ,&i"& a,ar%e% t&e amount o'
PM24, IL2.44 in 'avor o' onl# 324 "omplainants. Claimants submitte% t&eir =0ppeal
;emoran%um Eor )artial 0ppeal> 'rom t&e %e"ision o' t&e )?E0. 075C also $le% its
;R an%9or appeal in a%%ition to t&e =Noti"e o' 0ppeal> $le% earlier.
N:RC promulgate% its Resolution, mo%i'#ing t&e %e"ision o' t&e )?E0. *&e
resolution remove% some o' t&e bene$ts a,ar%e% in 'avor o' t&e "laimants. N:RC
%enie% all t&e ;Rs. 3en"e, t&ese petitions $le% b# t&e "laimants an% b# 0l5C an%
5R77.
*&e "ase roote% 'rom t&e :abor :a, ena"te% b# 5a&rain ,&ere most o' t&e
"omplainants ,ere %eplo#e%. 3is ;a(est# 7se 5in /elman 0l +ai'a, 0mir o' 5a&rain,
issue% &is 0miri 2e"ree No. 23 on !une 1I, 117I, ot&er,ise .no,n re t&e :abour
:a, 'or t&e )rivate /e"tor. /ome o' t&e provision o' 0miri 2e"ree No. 23 t&at are
relevant to t&e "laims o' t&e "omplainants6appellants are as 'ollo,s<
=0rt. 79< - - - 0 ,or.er s&all re"eive pa#ment 'or ea"& e-tra &our eBuivalent to &is
,age entitlement in"rease% b# a minimum o' t,ent#6rive per "enturn t&ereo' 'or
&ours ,or.e% %uring t&e %a#A an% b# a minimum oC $'t# per "enturn t&ereo' 'or
&ours ,or.e% %uring t&e nig&t ,&i"& s&all be %eeme% to being 'rom seven o8"lo".
in t&e evening until seven o8"lo". in t&e morning .>
0rt. M0< Eri%a# s&all be %eeme% to be a ,ee.l# %a# o' rest on 'ull pa#.
7' emplo#ee ,or.e%, 1L0S o' &is normal ,age s&all be pai% to &im - - -.>
0rt. M1A - - - 1&en "on%itions o' ,or. reBuire t&e ,or.er to ,or. on an# oJ"ial
&oli%a#, &e s&all be pai% an a%%itional sum eBuivalent to 1L0S o' &is normal
,age.>
0rt. M4< Ever# ,or.er ,&o &as "omplete% one #ear8s "ontinuous servi"e ,it& &is
emplo#er s&all be entitle% to :aos on 'ull pa# 'or a perio% o' not less t&an 21 %a#s
'or ea"& #ear in"rease% to a perio% not less t&an 2M %a#s a'ter $ve "ontinuous
#ears o' servi"e.>
0 ,or.er s&all be entitle% to su"& leave upon a Buantum meruit in respe"t o' t&e
proportion o' &is servi"e in t&at #ear.>
0rt. 107< 0 "ontra"t o' emplo#ment ma%e 'or a perio% o' in%e$nite %uration ma# be
terminate% b# eit&er part# t&ereto a'ter giving t&e ot&er part# prior noti"e be'ore
su"& termination, in ,riting, in respe"t o' mont&l# pai% ,or.ers an% $'teen %a#s8
noti"e in respe"t o' ot&er ,or.ers. *&e part# terminating a "ontra"t ,it&out t&e
reBuire% noti"e s&all pa# to t&e ot&er part# "ompensation eBuivalent to t&e
amount o' ,ages pa#able to t&e ,or.er 'or t&e perio% o' su"& noti"e or t&e
une-pire% portion t&ereo'.>
0rt. 7ll< - - - t&e emplo#er "on"erne% s&all pa# to su"& ,or.er, upon termination o'
emplo#ment, a leaving in%emnit# 'or t&e perio% o' &is emplo#ment "al"ulate% on
20
t&e basis o' $'teen %a#s8 ,ages 'or ea"& #ear o' t&e $rst t&ree #ears o' servi"e an%
o' one mont&8s ,ages 'or ea"& #ear o' servi"e t&erea'ter. /u"& ,or.er s&all be
entitle% to pa#ment o' leaving in%emnit# upon a Buantum meruit in proportion to
t&e perio% o' &is servi"e "omplete% ,it&in a #ear.>
ISSUE<
1. 1?N t&e 'oreign la, s&oul% govern or t&e "ontra"t o' t&e parties.(1?N t&e
"omplainants ,&o &ave ,or.e% in 5a&rain are entitle% to t&e above6mentione%
bene$ts provi%e% b# 0miri 2e"ree No. 23 o' 5a&rain.
2. 1?N t&e 5a&rain :a, s&oul% appl# in t&e "ase. (0ssuming it is appli"able 1?N
"omplainants8 "laim 'or t&e bene$ts provi%e% t&erein &ave pres"ribe%.
3. 1&et&er or not t&e instant "ases Buali'# asA a "lass suit (siningit .o nalang
(t&e rest o' t&e issues in t&e 'ull te-t o' t&e "ase re'er to :abor :a,
RULING<
1. N:RC set asi%e /e"tion 1, Rule 129 o' t&e 19M9 Revise% Rules on Evi%en"e
governing t&e plea%ing an% proo' o' a 'oreign la, an% a%mitte% in evi%en"e a
simple "op# o' t&e 5a&rain8s 0miri 2e"ree No. 23 o' 197I (:abour :a, 'or t&e
)rivate /e"tor.
N:RC applie% t&e 0miri 2eere, No. 23 o' 197I, ,&i"& provi%es 'or greater bene$ts
t&an t&ose stipulate% in t&e overseas6emplo#ment "ontra"ts o' t&e "laimants. 7t
,as o' t&e belie' t&at ,&ere t&e la,s o' t&e &ost "ountr# are more 'avorable an%
bene$"ial to t&e ,or.ers, t&en t&e la,s o' t&e &ost "ountr# s&all 'orm part o' t&e
overseas emplo#ment "ontra"t. 7t approve% t&e observation o' t&e )?E0
0%ministrator t&at in labor pro"ee%ings, all %oubts in t&e implementation o' t&e
provisions o' t&e :abor Co%e an% its implementing regulations s&all be resolve% in
'avor o' labor.
*&e overseas6emplo#ment "ontra"ts, ,&i"& ,ere prepare% b# 075C an% 5R77
t&emselves, provi%e% t&at t&e la,s o' t&e &ost "ountr# be"ame appli"able to sai%
"ontra"ts i' t&e# oCer terms an% "on%itions more 'avorable t&an t&ose stipulate%
t&erein. 3o,ever t&ere ,as a part o' t&e emplo#ment "ontra"t ,&i"& provi%es t&at
t&e "ompensation o' t&e emplo#ee ma# be =a%(uste% %o,n,ar% so t&at t&e total
"omputation plus t&e non6,aivable bene$ts s&all be eBuivalent to t&e
"ompensation> t&erein agree,8 anot&er part o' t&e same provision "ategori"all#
states =t&at total remuneration an% bene$ts %o not 'all belo, t&at o' t&e &ost
"ountr# regulation an% "ustom.>
0n# ambiguit# in t&e overseas6emplo#ment "ontra"ts s&oul% be interprete%
against 075C an% 5R77, t&e parties t&at %ra'te% it. 0rti"le 1377 o' t&e Civil Co%e o'
t&e )&ilippines provi%es<
Z*&e interpretation o' obs"ure ,or%s or stipulations in a "ontra"t s&all not 'avor t&e
part# ,&o "ause% t&e obs"urit#.>
/ai% rule o' interpretation is appli"able to "ontra"ts o' a%&esion ,&ere t&ere is
alrea%# a prepare% 'orm "ontaining t&e stipulations o' t&e emplo#ment "ontra"t
21
an% t&e emplo#ees merel# =ta.e it or leave it.> *&e presumption is t&at t&ere ,as
an imposition b# one part# against t&e ot&er an% t&at t&e emplo#ees signe% t&e
"ontra"ts out o' ne"essit# t&at re%u"e% t&eir bargaining po,er.
1e rea% t&e overseas emplo#ment "ontra"ts in Buestion as a%opting t&e provisions
o' t&e 0miri 2e"ree No. 23 o' 197I as part an% par"el t&ereo'. *&e parties to a
"ontra"t ma# sele"t t&e la, b# ,&i"& it is to be governe%. 7n su"& a "ase, t&e
'oreign la, is a%opte% as a =s#stem> to regulate t&e relations o' t&e parties,
in"lu%ing Buestions o' t&eir "apa"it# to enter into t&e "ontra"t, t&e 'ormalities to be
observe% b# t&em, matters o' per'orman"e, an% so 'ort&. 7nstea% o' a%opting t&e
entire mass o' t&e 'oreign la,, t&e parties ma# (ust agree t&at spe"i$" provisions o'
a 'oreign statute s&all be %eeme% in"orporate% into t&eir "ontra"t =as a set o'
terms.> 5# su"& re'eren"e to t&e provisions o' t&e 'oreign la,, t&e "ontra"t %oes
not be"ome a 'oreign "ontra"t to be governe% b# t&e 'oreign la,. *&e sai% la, %oes
not operate as a statute but as a set o' "ontra"tual terms %eeme% ,ritten in t&e
"ontra"t.
0 basi" poli"# o' "ontra"t is to prote"t t&e e-pe"tation o' t&e parties. /u"& part#
e-pe"tation is prote"te% b# giving eCe"t to t&e parties8 o,n "&oi"e o' t&e
appli"able la,. *&e "&oi"e o' la, must, &o,ever, bear some relations&ip t&e
parties or t&eir transa"tion. *&ere is no Buestion t&at t&e "ontra"ts soug&t to be
en'or"e% b# "laimants &ave a %ire"t "onne"tion ,it& t&e 5a&rain la, be"ause t&e
servi"es ,ere ren%ere% in t&at "ountr#.
2. N:RC rule% t&at t&e pres"riptive perio% 'or t&e $ling o' t&e "laims o' t&e
"omplainants ,as 3 #ears, as provi%e% in 0rti"le 291 o' t&e :abor Co%e o' t&e
)&ilippines, an% not ten #ears as provi%e% in 0rti"le 1144 o' t&e Civil Co%e o' t&e
)&ilippines nor one #ear as provi%e% in t&e 0miri 2e"ree No. 23 o' 197I.
0rti"le 1LI o' t&e 0miri 2e"ree No. 23 o' 197I provi%es<
=0 "laim arising out o' a "ontra"t o' emplo#ment s&all not a"tionable a'ter t&e
lapse o' one #ear 'rom t&e %ate o' t&e e-pir# o' t&e Contra"t>.
0s a general rule, a 'oreign pro"e%ural la, ,ill not be applie% in t&e 'orum (lo"al
"ourt, )ro"e%ural matters, su"& as servi"e o' pro"ess, (oin%er o' a"tions, perio%
an% reBuisites 'or appeal, an% so 'ort&, are governe% b# t&e la,s o' t&e 'orum. *&is
is true even i' t&e a"tion is base% upon a 'oreign substantive la,.
0 la, on pres"ription o' a"tions is sui generis in Con@i"t o' :a,s in t&e sense t&at it
ma# be vie,e% eit&er as pro"e%ural or substantive, %epen%ing on t&e
"&ara"teriGation given su"& a la,. 7n 5ournias v. 0tlanti" ;aritime Compan# (220 E.
2%. 1L2, 2% Cir. X19LLY, ,&ere t&e issue ,as t&e appli"abilit# o' t&e )anama :abor
Co%e in a "ase $le% in t&e /tate o' Ne, Kor. 'or "laims arising 'rom sai% Co%e, t&e
"laims ,oul% &ave pres"ribe% un%er t&e )anamanian :a, but not un%er t&e
/tatute o' :imitations o' Ne, Kor.. *&e H./. Cir"uit Court o' 0ppeals &el% t&at t&e
)anamanian :a, ,as pro"e%ural as it ,as not =spe"i$"all# inten%e% to be
substantive,> &en"e, t&e pres"riptive perio% provi%e% in t&e la, o' t&e 'orum
s&oul% appl#. *&e Court observe%< =. . . ,e are %ealing ,it& a statute o' limitations
o' a 'oreign "ountr#, an% it is not "lear on t&e 'a"e o' t&e statute t&at its purpose
,as to limit t&e en'or"eabilit#, outsi%e as ,ell as ,it&in t&e 'oreign "ountr#
"on"erne%, o' t&e substantive rig&ts to ,&i"& t&e statute pertains. 1e t&in. t&at as
22
a #ar%sti". 'or %etermining ,&et&er t&at ,as t&e purpose, t&is test is t&e most
satis'a"tor# one.
*&e Court 'urt&er note%< =0ppl#ing t&at test &ere it appears to us t&at t&e libellant
is entitle% to su""ee%, 'or t&e respon%ents &ave 'aile% to satis'# us t&at t&e
)anamanian perio% o' limitation in Buestion ,as spe"i$"all# aime% against t&e
parti"ular rig&ts ,&i"& t&e libellant see.s to en'or"e. *&e )anama :abor Co%e is a
statute &aving broa% ob(e"tives.> *&e 0meri"an "ourt applie% t&e statute o'
limitations o' Ne, Kor., instea% o' t&e )anamanian la,, a'ter $n%ing t&at t&ere ,as
no s&o,ing t&at t&e )anamanian la, on pres"ription ,as inten%e% to be
substantive. 5eing "onsi%ere% merel# a pro"e%ural la, even in )anama, it &as to
give ,a# to t&e la, o' t&e 'orum (lo"al Court on pres"ription o' a"tions.
3o,ever t&e "&ara"teriGation o' a statute into a pro"e%ural or substantive la,
be"omes irrelevant ,&en t&e "ountr# o' t&e 'orum (lo"al Court &as a =borro,ing
statute.> /ai% statute &as t&e pra"ti"al eCe"t o' treating t&e 'oreign statute o'
limitation as one o' substan"e. 0 =borro,ing statute> %ire"ts t&e state o' t&e 'orum
(lo"al Court to appl# t&e 'oreign statute o' limitations to t&e pen%ing "laims base%
on a 'oreign la,. 1&ile t&ere are several .in%s o' =borro,ing statutes,> one 'orm
provi%es t&at an a"tion barre% b# t&e la,s o' t&e pla"e ,&ere it a""rue% ,ill not be
en'or"e% in t&e 'orum even t&oug& t&e lo"al statute ,as not run against it.
/e"tion 4M o' Co%e o' Civil )ro"e%ure is o' t&is .in%. 7t provi%es< =7' b# t&e la,s o'
t&e state or "ountr# ,&ere t&e "ause o' a"tion arose, t&e a"tion is barre%, it is also
barre% in t&e )&ilippine 7slan%s.>
/e"tion 4M &as not been repeale% or amen%e% b# t&e Civil Co%e o' t&e )&ilippines.
7n t&e lig&t o' t&e 19M7 Constitution, &o,ever, /e"tion 4M "annot be en'or"e% e-
proprio vigore inso'ar as it or%ains t&e appli"ation in t&is (uris%i"tion o' /e"tion 1LI
o' t&e 0miri 2e"ree No. 23 o' 197I.
*&e "ourts o' t&e 'orum (lo"al Court ,ill not en'or"e an# 'oreign "laim obno-ious
to t&e 'orum8s publi" poli"#. *o en'or"e t&e one6#ear pres"riptive perio% o' t&e 0miri
2e"ree No. 23 o' 197I as regar%s t&e "laims in Buestion ,oul% "ontravene t&e
publi" poli"# on t&e prote"tion to labor.
7n t&e 2e"laration o' )rin"iples an% /tate )oli"ies, t&e 19M7 Constitution
emp&asiGe% t&at<=*&e state s&all promote so"ial (usti"e in all p&ases o' national
%evelopment> (/e". 10.
Z*&e state aJrms labor as a primar# so"ial e"onomi" 'or"e. 7t s&all prote"t t&e
rig&ts o' ,or.ers an% promote t&eir ,el'are> (/e". 1M.
7n 0rti"le [777 on /o"ial !usti"e an% 3uman Rig&ts, t&e 19M7 Constitution provi%es<
=/e". 3. *&e /tate s&all aCor% 'ull prote"tion to labor, lo"al an% overseas, organiGe%
an% unorganiGe%, an% promote 'ull emplo#ment an% eBualit# o' emplo#ment
opportunities 'or all.>
*&us, t&e appli"able la, on pres"ription is t&e )&ilippine la,.
23
*&e ne-t Buestion is ,&et&er t&e pres"riptive perio% governing t&e $ling o' t&e
"laims is 3 #ears, as provi%e% b# t&e :abor Co%e or 10 #ears, as provi%e% b# t&e
Civil Co%e o' t&e )&ilippines.
0rti"le 1144 o' t&e Civil Co%e o' t&e )&ilippines provi%es<
=*&e 'ollo,ing a"tions must be broug&t ,it&in ten #ears 'rom t&e time t&e rig&t o'
a"tion a""ross<
(1 Hpon a ,ritten "ontra"tA (2 Hpon an obligation "reate% b# la,A (3 Hpon a
(u%gment>
7n t&is "ase, t&e "laim 'or pa# %iCerentials is primaril# an"&ore% on t&e ,ritten
"ontra"ts bet,een t&e litigants, t&e ten6#ear pres"riptive perio% provi%e% b# 0rt.
1144(l o' t&e Ne, Civil Co%e s&oul% govern.
3. N?. 0 "lass suit is proper ,&ere t&e sub(e"t matter o' t&e "ontrovers# is one o'
"ommon or general interest to man# an% t&e parties are so numerous t&at it is
impra"ti"able to bring t&em all be'ore t&e "ourt. 1&en all t&e "laims are 'or
bene$ts grante% un%er t&e 5a&rain la, man# o' t&e "laimants ,or.e% outsi%e
5a&rain. /ome o' t&e "laimants ,ere %eplo#e% in 7n%onesia un%er %iCerent terms
an% "on%ition o' emplo#ment.
7nasmu"& as t&e Eirst reBuirement o' a "lass suit is not present ("ommon or
general interest base% on t&e 0miri 2e"ree o' t&e /tate o' 5a&rain, it is onl#
logi"al t&at onl# t&ose ,&o ,or.e% in 5a&rain s&all be entitle% to rile t&eir "laims in
a "lass suit.
1&ile t&ere are "ommon %e'en%ants (075C an% 5R77 an% t&e nature o' t&e "laims is
t&e same ('or emplo#ee8s bene$ts, t&ere is no "ommon Buestion o' la, or 'a"t.
1&ile some "laims are base% on t&e 0miri :a, o' 5a&rain, man# o' t&e "laimants
never ,or.e% in t&at "ountr#, but ,ere %eplo#e% else,&ere. *&us, ea"& "laimant is
intereste% onl# in &is o,n %eman% an% not in t&e "laims o' t&e ot&er emplo#ees o'
%e'en%ants. 0 "laimant &as no "on"ern in prote"ting t&e interests o' t&e ot&er
"laimants as s&o,n b# t&e 'a"t, t&at &un%re%s o' t&em &ave aban%one% t&eir "o6
"laimants an% &ave entere% into separate "ompromise settlements o' t&eir
respe"tive "laims. *&e "laimants ,&o ,or.e% in 5a&rain "an not be allo,e% to sue
in a "lass suit in a (u%i"ial pro"ee%ing.
13EREE?RE, all t&e t&ree petitioners are 27/;7//E2.
24
G5DARD vs! GRA:
RULING
\... *&e plaintiCs, ,&o are Eren"&men, sue% t&e %e'en%ants, ,&o are
Englis&men, on a "&arterpart# ma%e at /un%erlan%, ,&i"& "&arterpart# "ontaine%
t&e 'ollo,ing "lause< \)enalt# 'orr non6per'orman"e o' t&is agreement, estimate%
amount o' 'reig&t.\ *&e Eren"& Court belo,, treating t&is "lause as $-ing t&e
amount o' liBui%ate% %amages, gave (u%gment against t&e %e'en%ants 'or t&e
amount o' 'reig&t on t,o vo#ages. ?n appeal, t&e superior Court re%u"e% t&e
amount to t&e estimate% 'reig&t o' one vo#age, giving as t&eir reason t&at t&e
"&arterpart# itsel' "t'txait'indemnitd a laquelle chacune des parties aurait droit
pour inex4cution de la convention par la faute de 1'autre; que moyennant
paiement de cette indemnity chacune des parties avait le droit de rompre la
convention," an% t&e tribunal pro"ee%s to observe t&at t&e amount t&us %e"ree%
,as a'ter all more t&an suJ"ient to "over all t&e plaintiCsF loss.
0ll parties in Eran"e seem to &ave ta.en it 'or grante% t&at t&e ,or%s in t&e
"&arterpart# ,ere to be un%erstoo% in t&eir natural s/#s/; but t&e Englis& la, is
a""uratel# e-presse% in Abbott on hippin!, )t. 3, ". 1, a. I, Lt& e%., p. 170, an%
&a% t&at passage been broug&t to t&e noti"e o' t&e Eren"& tribunal, it ,oul% &ave
.no,n t&at in an Englis& "&arterpart#, as is t&ere state%, \/u"& a "lause is not t&e
absolute limit o' %amages on eit&er si%eA t&e part# ma#, i' &e t&in.s $t, groun% &is
a"tion upon t&e ot&er "lauses or "ovenants, an% ma#, in su"& a"tion, re"over
%amages be#on% t&e amount o' t&e penalt#, i' in (usti"e t&e# s&all be 'oun% to
e-"ee% it. ?n t&e ot&er &an%, i' t&e part# sue on su"& a penal "lause, &e "annot, in
eCe"t, re"over more t&an t&e %amage a"tuall# sustaine%.\ 5ut it ,as not broug&t
2L
to t&e noti"e o' t&e Eren"& tribunal t&at a""or%ing to t&e interpretation put b# t&e
Englis& la, on su"& a "ontra"t, a penal "lause o' t&is sort ,as in 'a"t i%le an%
inoperative. 7' it &a% been, t&e# ,oul%, probabl#, &ave interprete% t&e Englis&
"ontra"t ma%e in Englan% a""or%ing to t&e Englis& "onstru"tion.
*&e Buestion raise% b# t&e plea is, ,&et&er t&is is a bar to t&e a"tion broug&t in
Englan% to en'or"e t&at (u%gment.
- - -
\7t is not an a%mitte% prin"iple o' t&e la, o' nations t&at a /tate is boun% to
en'or"e ,it&in its territories t&e (u%gment o' a 'oreign tribunal. /everal o' t&e
"ontinental nations (in"lu%ing Eran"e %o not en'or"e t&e (u%gments o' ot&er
"ountries, unless ,&ere t&ere are re"ipro"al treaties to t&at eCe"t. 5ut in Englan%
an% in t&ose /tates ,&i"& are governe% b# t&e "ommon 7a,, su"& (u%gments are
en'or"e%, #&. 8, virtue o' an# treat#, nor b# virtue o' an# statute, but *<&# "
prin"iple ver# ,ell state% b# )ar.e, 5., in "illiams v# $ones (13 ;. 4 1. I2MA 14 :.!.
E-"&. 14L< \1&ere a Court o' "ompetent (uris%i"tion &as a%(u%i"ate% a "ertain sum
to be %ue 'rom one person to anot&er, a legal obligation aribes to pa# t&e sum, on
,&i"& an a"tion o' %ebt to en'or"e t&e (u%gment ma# be maintaine%. 7t is in t&is
,a# t&at t&e (u%gments o' 'oreign an% "olonial Courts are supporte% an%
en'or"e%.\ 0n% ta.ing t&is as t&e prin"iple, it s//9s to 'ollo, t&at an#t&ing ,&i"&
negatives t&e e-isten"e o' t&at legal obligation, or e-"uses t&e %e'en%ant 'rom t&e
per'orman"e o' it, must 'orm a goo% %e'ense to t&e a"tion. 7t must be open,
t&ere'ore, to t&e %e'en%ant to s&o, t&at t&e Court ,&i"& pronoun"e% t&e (u%gment
&a% no (uris%i"tion to pronoun"e it, eit&er be"ause t&e# e-"ee%e% t&e (uris%i"tion
given to t&em b# t&e 'oreign la,, or be"ause &e, t&e %e'en%ant, ,as not sub(e"t to
t&at (uris%i"tionA an% so 'ar t&e 'oreign (u%gment must be e-aminable. )robabl# t&e
%e'en%ant ma# s&o, t&at t&e (u%gment ,as obtaine% b# t&e 'rau% o' t&e plaintiC,
'or t&at ,oul% s&o, t&at t&e %e'en%ant ,as e-"use% 'rom t&e per'orman"e o' an
obligation t&us obtaine%A an% it ma# be t&at ,&ere t&e 'oreign C" urt &as
.no,ingl# an% perversel# %isregar%e% t&e rig&ts given to an Englis& sub(e"t b#
Englis& la,, t&at 'orms a vali% e-"use 'or %isregar%ing t&e obligation t&us impose%
on &imA but ,e pre'er to imitate t&e "aution o' t&e present :or% C&an"ellor, in
%astrique v# &mrie X:.'t. 4 3.:., at p. 44L (aboveY an% to leave t&ose Buestions to
be %e"i%e% ,&en t&e# arise, onl# observing t&at in t&e present "ase, as in t&at,
\t&e ,&ole o' t&e 'a"ts appear to &ave been inBuire% into b# t&e Eren"& Courts,
(u%i"iall#, &onestl#, an% ,it& t&e intention to arrive at t&e rig&t "on"lusion, an%
&aving &ear% t&e 'a"ts as state% be'ore t&em t&e# "ame to a "on"lusion ,&i"&
(usti$e% t&em in Eran"e in %e"i%ing as t&e# %i% %e"i%e.\
7', in%ee%, 'oreign (u%gments ,ere en'or"e% b# our Courts out o' politeness an%
"ourtes# to t&e tribunals o' ot&er "ountries, one "oul% un%erstan% its being sai%
t&at t&oug& our Courts ,oul% not be so ru%e as to inBuire ,&et&er t&e 'oreign
Court &a% ma%e a mista.e, or to allo, t&e %e'en%ant to assert t&at it &a%, #et t&at
i' t&e 'oreign Court itsel' a%mitte% its blun%er t&e# ,oul% not t&en a"t< but it is
Buite "ontrar# to ever# analog# to suppose t&at an Englis& Court o' la, e-er"ises
an# %is"retion o' t&is sort. 1e en'or"e a legal obligation, an% ,e a%mit an# %e'ense
,&i"& s&o,s t&at t&ere is no legal obligation or a legal e-"use 'or not 'ul$lling itA
but in no "ase t&at ,e .no, o' is it ever sai% t&at a %e'en"e s&all be a%mitte% i' it
is easil# prove%, an% re(e"te% 7' it ,oul% give t&e Court mu"& trouble to investigate
2I
it. Ket on ,&at ot&er prin"iple "an ,e a%mit as a %e'en"e t&at t&ere is a mista.e o'
Englis& la, apparent an t&e 'a"e o' t&e pro"ee%ings, an% re(e"t a %e'en"e t&at
t&ere is a mista.e o' /panis& or even /"ot"& la, apparent in t&e pro"ee%ings, or
t&at t&ere ,as a mista.e o' Englis& la, not apparent on t&e pro"ee%ings, but ,&i"&
t&e %e'en%ant avers t&at &e "an s&o, %i% e-ist.\
HILT5N vs! GU:5T
=T5 F5LL5W
27
%AWI vs FASGI ()37:7))7NE 0:H;7NH; 13EE:/ 7NC. vs. E0/G7 EN*ER)R7/E/ G.R.
No. 13I737M, ?"tober 12, 2000
FACTS
?n 01 !une 197M, E0/G7 Enterprises 7n"orporate% (\E0/G7\, a "orporation
organiGe% an% e-isting un%er an% b# virtue o' t&e la,s o' t&e /tate o' Cali'ornia,
Hnite% /tates o' 0meri"a, entere% into a %istributors&ip arrangement ,it&
)&ilippine 0luminum 1&eels, 7n"orporate% (\)017\, a )&ilippine "orporation, an%
Eratelli )e%rini /areGGo /.).0. (\E)/\, an 7talian "orporation. *&e agreement
provi%e% 'or t&e pur"&ase, importation an% %istributors&ip in t&e Hnite% /tates o'
aluminum ,&eels manu'a"ture% b# )017. E0/G7 t&en pai% )017 t&e E?5 value o'
t&e ,&eels. Hn'ortunatel#, E0/G7 later 'oun% t&e s&ipment to be %e'e"tive an% in
non6"omplian"e ,it& t&e "ontra"t.
?n 21 /eptember 1979, E0/G7 institute% an a"tion against )017 an% E)/ 'or brea"&
o' "ontra"t an% re"over# o' %amages in t&e amount o' H/P2,31I,L91.00 be'ore t&e
Hnite% /tates 2istri"t Court 'or t&e Central 2istri"t o' Cali'ornia. 7n t&e interim, t,o
agreements ,ere entere% b# t&e parties but )017 .ept on 'ailing to %is"&arge its
obligations t&erein. 7r.e% b# )017Fs persistent %e'ault, E0/G7 $le% ,it& t&e H/
2istri"t Court o' t&e Central 2istri"t o' Cali'ornia t&e agreements 'or (u%gment
against )017. ?n 24 0ugust 19M2, E0/G7 $le% a noti"e o' entr# o' (u%gment. Hnable
to obtain satis'a"tion o' t&e $nal (u%gment ,it&in t&e Hnite% /tates, E0/G7 $le% a
"omplaint 'or \en'or"ement o' 'oreign (u%gment\, be'ore R*C ;a.ati. *&e ;a.ati
"ourt, &o,ever, %ismisse% t&e "ase, on t&e groun% t&at t&e %e"ree ,as tainte%
,it& "ollusion, 'rau%, an% "lear mista.e o' la, an% 'a"t. *&e lo,er "ourt rule% t&at
t&e 'oreign (u%gment ignore% t&e re"ipro"al obligations o' t&e parties. 1&ile t&e
assaile% 'oreign (u%gment or%ere% t&e return b# )017 o' t&e pur"&ase amount, no
similar or%er ,as ma%e reBuiring E0/G7 to return to )017 t&e t&ir% an% 'ourt&
"ontainers o' ,&eels. *&is situation, amounte% to an un(ust enri"&ment on t&e part
o' E0/G7. Eurt&ermore, t&e R*C sai%, agreements ,&i"& t&e Cali'ornia "ourt &a%
base% its (u%gment ,ere a nullit# 'or &aving been entere% into b# ;r. *&omas
Rea%#, "ounsel 'or )017, ,it&out t&e latterFs aut&oriGation. 3o,ever, t&e Court o'
0ppeals reverse% t&is %e"ision.
ISSUE
/&oul% t&e )&ilippine Court en'or"e t&e 'oreign (u%gmentU KE/
RULING
7n t&is (uris%i"tion, a vali% (u%gment ren%ere% b# a 'oreign tribunal ma# be
re"ogniGe% inso'ar as t&e imme%iate parties an% t&e un%erl#ing "ause o' a"tion are
"on"erne% so long as it is "onvin"ingl# s&o,n t&at t&ere &as been an opportunit#
'or a 'ull an% 'air &earing be'ore a "ourt o' "ompetent (uris%i"tionA t&at trial upon
regular pro"ee%ings &as been "on%u"te%, 'ollo,ing %ue "itation or voluntar#
appearan"e o' t&e %e'en%ant an% un%er a s#stem o' (urispru%en"e li.el# to se"ure
an impartial a%ministration o' (usti"eA an% t&at t&ere is not&ing to in%i"ate eit&er a
pre(u%i"e in "ourt an% in t&e s#stem o' la,s un%er ,&i"& it is sitting or 'rau% in
pro"uring t&e (u%gment. )017 "laims t&at its "ounsel, ;r. Rea%#, &as a"te% ,it&out
its aut&orit#. Teril#, in t&is (uris%i"tion, it is "lear t&at an attorne# "annot, ,it&out a
"lientFs aut&oriGation, settle t&e a"tion or sub(e"t matter o' t&e litigation even
,&en &e &onestl# believes t&at su"& a settlement ,ill best serve &is "lientFs
2M
interest. 3o,ever, )017 'aile% to substantiate t&is "omplain ,it& suJ"ient
evi%en"e. 3en"e, t&e 'oreign (u%gment must be en'or"e%.
Even i' )017 assaile% t&at 'rau% tainte% t&e agreements ,&i"& t&e H/ Court base%
its (u%gment, t&is "annot prevent t&e en'or"ement o' sai% (u%gment. )017 "laime%
t&at t&ere ,as "ollusion an% 'rau% in t&e signing o' t&e agreements. 0lt&oug& t&e
H/ Court alrea%# a%(u%i"ate% on t&is matter, )017 insiste% on raising it again in
t&is Court. Erau%, to &in%er t&e en'or"ement ,it&in t&is (uris%i"tion o' a 'oreign
(u%gment, must be e-trinsi", i.e., 'rau% base% on 'a"ts not "ontroverte% or resolve%
in t&e "ase ,&ere (u%gment is ren%ere%, or t&at ,&i"& ,oul% go to t&e (uris%i"tion
o' t&e "ourt or ,oul% %eprive t&e part# against ,&om (u%gment is ren%ere% a
"&an"e to %e'en% t&e a"tion to ,&i"& &e &as a meritorious "ase or %e'ense. 7n $ne,
intrinsi" 'rau%, t&at is, 'rau% ,&i"& goes to t&e ver# e-isten"e o' t&e "ause o'
a"tion 6 su"& as 'rau% in obtaining t&e "onsent to a "ontra"t 6 is %eeme% alrea%#
a%(u%ge%, an% it, t&ere'ore, "annot militate against t&e re"ognition or en'or"ement
o' t&e 'oreign (u%gment.
>UERUIN vs! >UERUIN
G.R. No. :63I93 !ul# 29, 19L3
FACTS
(7n 1934, /ilvestre Wuerubin, a Eilipino, marrie% petitioner ;argaret Wuerubin, in
0lbuBuerBue, Ne, ;e-i"o. F*&e# &a% a %aug&ter, Wuerubina.
;argaret $le% 'or %ivor"e in 194M alleging \mental "ruelt#.\ /ilvestre $le% a
"ountersuit 'or %ivor"e alleging ;argaretFs in$%elit#. 7n 1949, t&e /uperior Court o'
:os 0ngeles grante% t&e %ivor"e an% a,ar%e% \(oint "usto%#\ o' t&e "&il%.
Wuerubina ,as to be .ept in a neutral &ome sub(e"t to reasonable visits b# bot&
parties. 5ot& parents ,ere restraine% 'rom ta.ing Wuerubina out o' Cali'ornia
,it&out t&e permission o' t&e Court.
?n ;ar"& t&at #ear, "usto%# ,as grante% to /ilvestre un%er an interlo"utor#
%e"ree (alt&oug& t&e "&il% ,as still .ept in t&e neutral &ome be"ause at t&e time
o' t&e trial, ;argaret ,as living , t& anot&er man.
Hpon ;argaretFs petition, t&e interlo"utor# %e"ree ,as mo%i$e%. /in"e s&e &a%
t&en marrie% t&e man s&e ,as living ,it& an% &a% a stable &ome, t&e Court
grante% "usto%# to ;argaret ,it& reasonable limitations on t&e part o' t&e 'at&er.
/ilvestre, toget&er ,it& Wuerubina, le't /an Eran"is"o on November o' t&e same
#ear, ,ent to t&e )&ilippines an% sta#e% in Caga#an, 7lo"os /ur, ,it& t&e intent o'
prote"ting t&e "&il% 'rom t&e eCe"ts o' &er mot&erFs s"an%alous "on%u"t. 3e
,ante% t&e "&il% t" 8/ 2"0s/$ 0# a better environment.
7n 19L0, ;argaret, t&roug& "ounsel, presente% to t&e CE7 a petition 'or habeas
corpus 'or t&e "usto%# o' Wuerubina url%er t&e interlo"utor# %e"ree o' t&e
Cali'ornia Court. /&e "laims t&at un%er 0rt. 4M o' Rule 39, t&e %e"ree o' t&e :os
0ngeles Court, granting &er t&e "&il%Fs "usto%#, must be "omplie% ,it&in t&e
)&ilippines.Y
29
RULING
\*&e %e"ree is b# no means $nal. 7t is sub(e"t to "&ange ,it& t&e "ir"umstan"es.
*&e $rst %e"ree a,ar%e% t&e "usto%# o' t&e "&il% to t&e 'at&er, pro&ibiting t&e
mot&er 'rom ta.ing t&e "&il% to &er (;argaretFs &ome be"ause o' &er a%ulterous
relations&ip ,it& anot&er man. *&e %e"ree ,as amen%e% ,&en ;argaret ,as not
in :os 0ngeles.
5e"ause t&e %e"ree is interlo"utor#, it "annot be implemente% in t&e )&ilippines.
1&ere t&e (u%gment is merel# interlo"utor#, t&e %etermination o' t&e Buestion b#
t&e Court ,&i"& ren%ere% it %i% not settle an% a%(u%ge $nall# t&e rig&ts o' t&e
parties.
7n general, a %e"ree o' %ivor"e a,ar%ing "usto%# o' t&e "&il% to one o' t&e spouses
is respe"te% b# t&e Courts o' ot&er states \at t&e time an% un%er t&e
"ir"umstan"es o' its ren%ition\ but su"& a %e"ree &as no "ontrolling eCe"ts in
anot&er state as to 'a"ts an% "on%itions o""urring subseBuentl# to t&e %ate o' t&e
%e"reeA an% t&e Court o' anot&er state ma#, in proper pro"ee%ings, a,ar% "usto%#
ot&er,ise upon proo' o' matters subseBuent to t&e %e"ree ,&i"& (usti'# t&e %e"ree
to t&e interest o' t&e "&il%.
7n t&e "ase at bar, t&e "ir"umstan"es &ave "&ange%. Wuerubina is not in :os
0ngeles, s&e is in Caga#an, 7lo"os /ur, un%er &er 'at&erFs "are. 7t is a long ,a#
'rom one pla"e to t&e ot&er. Neit&er "an ;argaret prove t&at s&e "an pa# t&e "ost
o' passage 'or t&e minor. /&e is not a pa".et o' "igarettes one "an sen% b# mail.
Neit&er "an s&e ans,er 'or WuerubinaFs support, "are an% e%u"ation. 7n
"omparison, t&e 'at&er &as s&o,n bot& interest in t&e "&il% an% "apa"it# to provi%e
'or t&e nee%s o' t&e "&il%.\
%HILI%%INE INTERNATI5NAL SHI%%ING vs! CA (172 /CR0 M10
FACTS
7n 1979 to 19M1, )&ilippine 7nternational /&ipping Corporation ()7/C lease% 'rom
7nterpool :t%. an% its ,&oll# o,ne% subsi%iar#, t&e Container *ra%ing Corporation,
several "ontainers pursuant to t&e ;embers&ip 0greement an% 3iring Con%itions
an% t&e ;aster EBuipment :easing 0greement bot& %ate% !une M, 1979. *&e ot&er
petitioners )&ilippine Constru"tion Consortium Corporation, )a"i$" ;ills 7n". an%
Hniversal /teel /melting Compan#, guarantee% to pa# t&e obligation %ue an% an#
liabilit# o' t&e )7/C arising out o' t&e leasing or pur"&asing o' eBuipment.
7n 1979 to 19M1, )7/C in"urre% outstan%ing an% unpai% obligations ,it& 7nterpool,
in t&e amount o' P94,4LI.2M, representing unpai% per %iems, %rop6oC "&arges,
interest an% ot&er agree% "&arges, resulting in a "ase be'ore t&e H/ 2istri"t Court,
/out&ern 2istri"t o' Ne, Kor. ,&erein a %e'ault (u%gment against petitioners ,as
ren%ere% or%ering t&e "orp. to pa# in t&e amount o' PM0,779.33, as liBui%ate%
%amages, toget&er ,it& interest in t&e amount o' P13,I7I.9L an% "osts in t&e
amount o' PM0.00. or 'or a total (u%gment o' P94,4LI.2M. *o en'or"e t&e %e'ault
(u%gment o' t&e H/ 2istri"t Court, a "omplaint ,as institute% against )7/C an%
ot&er guarantors be'ore t&e WC R*C. )7/C 'aile% to ans,er t&e "omplaint an% t&e#
30
,ere %e"lare% in %e'ault. *&e R*C rule% in 'avor o' 7nterpool an% ,&i"& ,as
aJrme% b# t&e C0.
7n t&e $rst instan"e, petitioners "onten% t&at t&e H./. 2istri"t Court never a"Buire%
(uris%i"tion over t&eir persons as t&e# &a% not been serve% ,it& summons an% a
"op# o' t&e Complaint in M3 Civil 290 (E1. 7n t&e se"on% instan"e, petitioners
"onten% t&at su"& (uris%i"tional in$rmit# eCe"tivel# prevente% t&e Regional *rial
Court o' WueGon Cit# 'rom ta.ing "ogniGan"e o' t&e Complaint in Civil Case No. W6
39927 an% 'rom en'or"ing t&e H./. 2istri"t CourtFs 2e'ault !u%gment against t&em.
)etitioners "onten%, $nall#, t&at assuming t&e vali%it# o' t&e %ispute% 2e'ault
!u%gment, t&e same ma# be en'or"e% onl# against petitioner )7/C t&e 9 petitioners
not &aving been implea%e% originall# in t&e "ase $le% in Ne, Kor., H./.0.
ISSUE
19N t&e H/ 2istri"t Court %e'ault (u%gment "an be en'or"e% an% against t&e 9
ot&er petitionersU :/s!
RULING
*o begin ,it&, t&e evi%en"e o' re"or% "learl# s&o,s t&at t&e H./. 2istri"t Court &a%
vali%l# a"Buire% (uris%i"tion over )7/C un%er t&e pro"e%ural la, appli"able in t&at
'orum i.e., t&e H./. Ee%eral Rules on Civil )ro"e%ure. Copies o' t&e /ummons an%
Complaint ,&i"& ,ere in 'a"t atta"&e% to t&e )etition 'or Revie, $le% ,it& t&e /C,
,ere stampe% "'eceived, 1( $an 1)(*, +&% ,anila#" in%i"ating t&at servi"e t&ereo'
&a% been ma%e upon an% a".no,le%ge% b# t&e )7/C oJ"e in ;anila on, 1M !anuar#
19M3 *&at 'oreign (u%gment6,&i"& &a% be"ome -nal and executory, no appeal
&aving been ta.en t&ere'rom an% per'e"te% b# petitioner )7/C6is t&us \presumptive
evi%en"e o' a rig&t as bet,een t&e parties an% t&eir su""essors in interest b# a
subseBuent title.\ *&e /C note, 'urt&er t&at t&ere &as been in t&is "ase no s&o,ing
b# petitioners t&at t&e 2e'ault !u%gment ren%ere% b# t&e H./. 2istri"t Court ,as
vitiate% b# \,ant o' noti"e to t&e part#, "ollusion, 'rau%, or "lear mista.e o' la, or
'a"t. \ 7n ot&er ,or%s, t&e 2e'ault !u%gment imposing upon petitioner )7/C a
liabilit# o' H./.P94,4LI.2M in 'avor o' respon%ent 7nterpool, is vali% an% ma# be
en'or"e% in t&is (uris%i"tion.
*&e e-isten"e o' liabilit# on t&e part o' petitioner )7/C &aving been %ul#
establis&e% in t&e H./. "ase, it ,as not improper 'or respon%ent 7nterpool, in
see.ing en'or"ement in t&is (uris%i"tion o' t&e 'oreign (u%gment imposing su"&
liabilit#, to &ave in"lu%e% t&e ot&er 9 petitioners &erein (i.e., George :im, ;ar"os
5autista, Carlos :au%e,*an /ing :im, 0ntonio :iu :ao, ?ng *e& )&ilippine
Consortium Constru"tion Corporation, )a"i$" ;ills, 7n". an% Hniversal /teel
/melting Co., 7n". as %e'en%ants in Civil Case No. W6 39927, $le% ,it& 5ran"& 93 o'
t&e Regional *rial Court o' WueGon Cit#. *&e re"or% s&o,s t&at sai% 9 petitioners
&a% e-e"ute% "ontinuing guarantees\ to se"ure per'orman"e b# petitioner )7/C o'
its "ontra"tual obligations. 0s guarantors, t&e# &a% &el% t&emselves out as liable.
\,&et&er (ointl#, severall#, or in t&e alternative,\ to respon%ent 7nterpool un%er
t&eir separate \"ontinuing guarantees\ e-e"ute% in t&e )&ilippines. *&e Ne, Kor.
a,ar% o' H./.P94,4LI.2M is pre"isel# premise% upon a brea"& b# )7/C o' its o,n
obligations un%er t&ose 0greements. *&e /C "onsi%er t&e 9 ot&er petitioners as
persons against ,&om XaY rig&t to relie' in respe"t to or arising out o' t&e same
transa"tion or series o' transa"tions X&as beenY allege% to e-ist\ an%,
"onseBuentl#, properl# implea%e% as %e'en%ants in Civil Case No. W639927. *&ere
31
,as, in ot&er ,or%s, no nee% at all, in or%er t&at Civil Case No. W639927 ,oul%
prosper, 'or respon%ent 7nterpool to &ave $rst implea%e% t&e 9 ot&er petitioners in
t&e Ne, Kor. "ase an% t&ere obtain (u%gment against all 10 petitioners.
ASIAVEST MERCHANT ANKERS vs! CA
32
=DIGEST F5UND AT THE %REVI5US C5M%ILATI5N (G.R. No. 1102I3
!ul#20,2001
N5RTHWEST 5RIENT AIRLINES INC! vs! CA (241 /CR0 192
FACTS
X7n 1974, an 7nternational )assenger /ales 0gen"# 0greement ,as entere% into b#
plaintiC Nort&,est ?rient 0irlines (Nort&,est an% %e'en%ant C.E. /&arp 4 Co.
(/&arp, t&roug& its !apan bran"&, ,&ereb# Nort&,est aut&oriGe% /&arp to sell t&e
'ormerFs airlines ti".ets. /&arp 'aile% to remit t&e pro"ee%s o' t&e ti".et sales it
ma%e on be&al' o' Nort&,est un%er t&e agreement ,&i"& le% t&e latter to sue in
*o.#o 'or "olle"tion o' t&e unremitte% amount, ,it& "laim 'or %amages.
*&e *o.#o 2istri"t Court o' !apan issue% a ,rit o' summons against /&arp at its
oJ"e in Ko.o&ama, !apan but t&e bailiC 'aile% t,i"e to serve t&e ,rits. Einall#, t&e
*o.#o 2istri"t Court %e"i%e% to &ave t&e ,rits o' summons serve% at /&arpFs &ea%
oJ"e in ;anila. /&arp a""epte% t&e ,rits but %espite su"& re"eipt, it 'aile% to
appear at t&e &earings. *&e 2istri"t Court pro"ee%e% to &ear t&e "omplaint an%
ren%ere% (u%gment or%ering /&arp to pa# Nort&,est t&e sum o' M3,1LM,19L Ken
plus %amages. /&arp 'aile% to appeal an% t&e (u%gment be"ame $nal an%
e-e"utor#.
Nort&,est 'aile% to e-e"ute t&e %e"ision in !apan, &en"e, it $le% a suit 'or
en'or"ement o' t&e (u%gment be'ore t&e Regional *rial Court o' ;anila. /&arp $le%
its ans,er averring t&at t&e (u%gment o' t&e !apanese "ourt is null an% voi% an%
unen'or"eable in t&is (uris%i"tion &aving been ren%ere% ,it&out %ue an% proper
noti"e to /&arp.
*&e "ase 'or en'or"ement o' (u%gment ,as trie% on t&e merits. /&arp $le% a ;otion
'or !u%gment on a 2emurrer to Evi%en"e. *&e trial "ourt grante% t&e %emurrer
motion, &ol%ing t&at t&e 'oreign (u%gment in t&e !apanese "ourt soug&t to be
en'or"e% is null an% voi% 'or ,ant o' (uris%i"tion over t&e person o' t&e %e'en%ant.
Nort&,est appeale% but t&e Court o' 0ppeals sustaine% t&e trial "ourt, &ol%ing t&at
t&e pro"ess o' t&e "ourt &as no e-traterritorial eCe"t an% no (uris%i"tion 4"s
a"Buire% over t&e person o' t&e %e'en%ant b# s/2v0#1 309 be#on% t&e boun%aries
o' t&e state. 3en"e, t&is appeal b# Nort&,est.Y
RULING
\0 'oreign (u%gment is presume% to be vali% an% bin%ing in t&e "ountr# 'rom ,&i"&
it -&9/s( until t&e "ontrar# is s&o,n. 7t is also proper to presume t&e regularit# o'
t&e pro"ee%ings an% t&e giving o' %ue noti"e t&erein.
Hn%er /e"tion L0, Rule 39 o' t&e Rules o' Court, a (u%gment in an a"tion in
personam o' a tribunal o' a 'oreign "ountr# &aving (uris%i"tion to pronoun"e t&e
same is presumptive evi%en"e o' a rig&t as bet,een t&e parties an% t&eir
su""essors6in6interest b# a subseBuent title. *&e (u%gment ma#, &o,ever, be
assaile% b# evi%en"e o' ,ant o' (uris%i"tion, ,ant o' noti"e to t&e part#, "ollusion,
'rau%, or "lear mista.e o' la, or 'a"t. 0lso, un%er /e"tion 3 o' Rule 131, a "ourt,
,&et&er o' t&e )&ilippines or else,&ere, en(o#s t&e presumption t&at it ,as a"ting
in t&e la,'ul e-er"ise o' (uris%i"tion an% &as regularl# per'orme% its oJ"ial %ut#.
ConseBuentl#, t&e part# atta".ing a 'oreign (u%gment &as t&e bur%en o'
over"oming t&e presumption o' its vali%it#. 5eing t&e part# "&allenging t&e
33
(u%gment ren%ere% b# t&e !apanese "ourt, /30R) &a% t&e %ut# to %emonstrate t&e
invali%it# o' su"& (u%gment. 7n an attempt to %is"&arge t&at bur%en, it "onten%s
t&at t&e e-traterritorial servi"e o' summons eCe"te% as its &ome oJ"e in t&e
)&ilippines ,as not onl# ineCe"tual but also voi%, an% t&e !apanese Court %i% not,
t&ere'ore, a"Buire (uris%i"tion over it.
7t is settle% t&at matters o' reme%# an% pro"e%ure su"& as t&ose relating to t&e
servi"e o' pro"ess upon a %e'en%ant are governe% b# t&e lex fori or t&e internal la,
o' t&e 'orum. 7n t&is "ase, it is t&e pro"e%ural la, o' !apan ,&ere t&e (u%gment ,as
ren%ere% t&at %etermines t&e vali%it# o' t&e e-traterritorial servi"eFo' pro"ess on
/30R). 0s to ,&at t&is la, is is a Buestion o' 'a"t, not o' la,. 7t ma# not be ta.en
(u%i"ial noti"e o' an% must be plea%e% an% prove% li.e an# ot&er 'a"t. /e"tions 24
an% 2L, Rule 132 o' t&e Rules o' Court provi%e t&at it ma# be evi%en"e% b# an
oJ"ial publi"ation or b# a %ul# atteste% or aut&enti"ate% "op# t&ereo'. 7t ,as t&en
in"umbent upon /30R) to present evi%en"e as to ,&at t&at !apanese pro"e%ural
la, is an% to s&o, taat un%er it, t&e assaile% e-traterritorial servi"e is invali%. 7t %i%
not. 0""or%ingl#, t&e presumption o' vali%it# an% regularit# o' t&e servi"e o'
summons an% t&e %e"ision t&erea'ter ren%ere% b# t&e !apanese "ourt must stan%.
0lternativel#, in t&e lig&t o' t&e absen"e o' proo' regar%ing !apanese la,, t&e
presumption o' i%entit# or similarit# or t&e so6"alle% pro"essual presump"ion ma#
be invo.e%. 0ppl#ing it, t&e !apanese la, on t&e matter is presume% to be similar
,it& t&e )&ilippine la, on servi"e o' summons on a private 'oreign "orporation
%oing business ir, t&e )&ilippines. /e"tion 14 o' t&e Rules o' Court provi%es t&at i'
t&e %e'en%ant is a 'oreign "orporation %oing business in t&e )&ilippines, servi"e
ma# be ma%e< 1 on its resi%ent agent %esignate% in a""or%an"e ,it& la, 'or t&at
purpose, or 2 i' t&ere is no su"& resi%ent agent, on t&e government oJ"ial
%esignate% b# la, to t&at eCe"t, or 3 on an# o' its oJ"ers or agents ,it&in t&e
)&ilippines.
7' t&e 'oreign "orporation &as %esignate% an agent to re"eive summons, t&e
%esignation is e-"lusive, an% servi"e o' summons is ,it&out 'or"e an% gives t&e
"ourt no (uris%i"tion unless ma%e upon &im.
1&ere t&e "orporation &as no su"& great agent, servi"e s&all be ma%e on t&e
government oJ"ial %esignate% b# la,, to ,it< (a t&e 7nsuran"e Commissioner, in
t&e "ase o' a 'oreign insuran"e "ompan#A (b t&e /uperinten%ent o' 5an.s, in t&e
"ase o' a 'oreign ban.ing "orporationA an% (" t&e /e"urities an% E-"&ange
Commission, in t&e "ase o' ot&er 'oreign "orporations %ul# li"ense% to %o business
in t&e )&ilippines. 1&enever servi"e o' pro"ess is so ma%e, t&e government oJ"e
or oJ"ial serve% s&all transmit b# mail a "op# o' t&e summons or ot&er legal
pro"ess to t&e "orporation at its &ome or prin"ipal oJ"e. *&e sen%ing o' su"& "op#
is a ne"essar# part o' t&e servi"e.
? ? ?
No,&ere in its plea%ings %i% /30R) pro'ess to &aving &a% a resi%ent agent
aut&oriGe% to re"eive "ourt pro"esses in !apan. *&is silen"e "oul% onl# mean, or at
least "reate an impression, t&at it &a% none. 3en"e, servi"e on t&e %esignate%
government oJ"ial or an# o' its oJ"ers or agents in !apan "oul% be availe% o'.
? ? ?
34
0s 'oun% b# t&e Court o' 0ppeals, it ,as t&e *o.#o 2istri"t Court ,&i"& or%ere% t&at
summons 'or /30R) be serve% at its &ea% oJ"e in t&e )&ilippines a'ter t&e t,o
attempts o' servi"e &a% 'aile%. *&e *o.#o 2istri"t Court reBueste% t&e /upreme
Court o' !apan to "ause t&e %eliver# o' t&e summons an% ot&er legal %o"uments to
t&e )&ilippines. 0"ting on t&at reBuest, t&e /upreme Court o' !apan sent t&e
summons toget&er ,it& t&e ot&er legal %o"uments to t&e ;inistr# o' Eoreign 0Cairs
o' !apan, ,&i"& in turn, 'or,ar%e% t&e same to t&e !apanese Embass# in ;anila.
*&erea'ter, t&e "ourt pro"esses ,ere %elivere% to t&e ;inistr# (no, 2epartment o'
Eoreign 0Cairs o' t&e )&ilippines t&en to t&e E-e"utive !u%ge o' t&e Court o' Eirst
7nstan"e (no, Regional *rial Court o' ;anila, ,&o 'ort&,it& or%ere% 2eput# /&eriC
Rolan%o 5alingit to serve t&e same on /30R) at its prin"ipal oJ"e in ;anila. *&is
servi"e is eBuivalent to servi"e on t&e proper government oJ"ial un%er /e"tion 14,
Rule 14 o' t&e Rules o' Court, in relation to /e"tion 12M o' t&e Corporation Co%e.
3en"e, /30R)Fs "ontention t&at su"& manner o' servi"e is not vali% un%er
)&ilippine la, &ol%s no ,ater.
? ? ?
7nasmu"& as /30R) ,as a%mitte%l# %oing business in !apan t&roug& its 'our
registere% bran"&es at t&e time t&e "olle"tion suit against it ,as $le%, t&en in t&e
lig&t o' t&e pro"essual presumption, /30R) ma# be %eeme% a resi%ent o' !0)0N,
an%, as su"&, ,as amenable to t&e (uris%i"tion o' t&e "ourts t&erein an% ma# be
%eeme% to &ave assente% to t&e sai% "ourtsF la,'ul met&o%s o' serving pro"ess.
0""or%ingl#, t&e e-traterritorial servi"e o' summons on it b# t&e !apanese Court
,as vali% not onl# un%er t&e pro"essual presumption but also be"ause o' t&e
presumption o' regularit# o' per'orman"e o' oJ"ial %ut#.
? ? ?
1&ere'ore, t&e instant petition is partl# GR0N*E2, an% t&e "&allenge% %e"ision is
0EE7R;E2 inso'ar as it %enie% N?R*31E/*Fs "laims 'or attorne#Fs 'ees, litigation
e-penses, an% e-emplar# %amages but RETER/E2 inso'ar as it sustaine% t&e trial
"ourtFs %ismissal o' N?R*31E/*Fs "omplaint in Civil Case No. M3617I37 o' 5ran"&
L4 o' t&e Regional *rial Court o' ;anila, an% anot&er in its stea% is &ereb# ren%ere%
?R2ER7NG private respon%ent C.E. /30R) 4 C?;)0NK, 7NC. to pa# N?R*31E/*
t&e amounts a%(u%ge% in t&e 'oreign (u%gment sub(e"t o' sai% "ase, ,it& interest
t&ereon at t&e legal rate 'rom t&e $ling o' t&e "omplaint t&erein until t&e sai%
'oreign (u%gment is 'ull# satis$e%.\
3L