G.R. No.

120135
March 31, 2003
Lessons Applicable: forum non conveniens (conflicts of laws)
FACTS:

Eduardo K. Litonjua, Sr. and Aurelio J. Litonjua (Litonjuas) were engaged in the

shipping business owning 2 vessels: Don Aurelio and El Champion

Because their business where doing well, Bank of America (BA) offered them to

take a loan for them to increase their ships.

BA acquired through them as borrowers four more ships: (a) El Carrier; (b) El

General; (c) El Challenger; and (d) El Conqueror. The registration, operation,

income, funds, possession of the vessel belonged to the corporation.
May 10, 1993: Litonjuas filed a complaint to the RTC Pasig claming that during

its operations and the foreclosure sale, BA as trutees failed to fully render an
account of the income. They lost all their 6 vessels and 10% of their personal funds
and they still have an unpaid balance of their loans.
BA NT&SA, and BA international filed a Motion to Dismiss on grounds of forum

non conveniens and lack of cause of action against them

RTC and CA: Dismissed

ISSUE:
1. W/N there is grounds of forum non conveniens
2. W/N there is litis pendentia

HELD: Denied
1. NO.

The doctrine of forum non-conveniens, literally meaning 'the forum is

inconvenient', emerged in private international law to deter the practice of global
forum shopping

Under this doctrine, a court, in conflicts of law cases, may refuse impositions on

its jurisdiction where it is not the most "convenient" or available forum and the
parties are not precluded from seeking remedies elsewhere.
Whether a suit should be entertained or dismissed on the basis of said doctrine

depends largely upon the facts of the particular case and is addressed to the sound
discretion of the trial court.
Philippine Court may assume jurisdiction over the case if it chooses to do so;

provided, that the following requisites are met:

(1) that the Philippine Court is one to which the parties may conveniently

resort to; - present

(2) that the Philippine Court is in a position to make an intelligent decision

as to the law and the facts; and, - present

(3) that the Philippine Court has or is likely to have power to enforce its

decision - present
This Court further ruled that while it is within the discretion of the trial court to

abstain from assuming jurisdiction on this ground, it should do so only after vital
facts are established, to determine whether special circumstances require the
court's desistance; and that the propriety of dismissing a case based on this
principle of forum non conveniens requires a factual determination, hence it is more
properly considered a matter of defense
2. NO.

litis pendentia to be a ground for the dismissal of an action there must be:
(a) identity of the parties or at least such as to represent the same interest
in both actions -present

(b) identity of rights asserted and relief prayed for, the relief being founded
on the same acts - not shown

(c) the identity in the two cases should be such that the judgment which
may be rendered in one would, regardless of which party is successful, amount to
res judicata in the other - not shown

It merely mentioned that civil cases were filed in Hongkong and England