Notes On Conflict of Laws PDF

CONFLICT
OF LAWS
FROM THE BOOK OF COQUIA

This material is intended only to be used as a reviewer.

Summarized by:
Domingo, John Rowie, B
PUP College of Law

Conflict of Laws: Coquia
Summarized by: Domingo, John Rowie, B.
Page 1 of 62

CIVIL CODE OF THE PHILIPPINES

ARTICLE 15: Laws relating to family rights and duties, or to the status, condition and legal
capacity of persons are binding upon citizens of the Philippine s, even though living
abroad.

ARTICLE 16: Real property as well as personal property is subject to the law of the country
where it is situated.

However, intestate and testamentary succession, both with respect to the order of
succession and to the amount of successional rights and to the intrinsic validity of
testamentary provisions, shall be regulated by the national law of the person whose
succession is under consideration, whatever may be the nature of the property and
regardless of the country wherein said property may be found.

ARTICLE 17: The forms and solemnities of contracts, wills and other public instruments shall
be governed by the law of the country where they are executed.

When the acts referred to are executed before the diplomatic or consular officials of
the Republic of the Philippines in a foreign country, the solemnities established by
Philippine laws shall be observed in their execution.

Prohibitive laws concerning persons, their acts or property, and those which have, for
their object, public order, public policy and good customs shall not be rendered
ineffective by laws or judgments promulgated, or by determinations or conventions
agreed upon in a foreign country.


Page 2 of 62

CONFLICT OF LAWS protests, arbitrations, negotiations,
conciliations, filing of case before the

international tribunals, or even war.
Is the law concerning the rights of persons within

the dominion and territory of one nation, by
CHOICE OF LAW
reason of acts, private or public, done within the
1. The court will do characterization, which is
dominion of another nation. (Hilton vs Guyot)
also known as the doctrine of qualification.

2. Where the court decides to determine
OBJECTIVE OF CONFLICT OF LAWS: to provide
whether the facts relate to the kind of
rational and valid guidelines in deciding cases
questions specified in conflicts rule. The
where either the parties, events or transactions
court will determine whether the facts are
are linked to more than one jurisdiction.
from torts; contracts; property or some

other field to a matter of substance or
SOURCES:
procedure.
1. Statutes and Codes

2. Treaties and International Conventions
FACTORS THAT MAY BE CONSIDERED:
3. Treaties, Commentaries and Studies of
1. Nationality of a person, residence,
Learned Societies
domicile, sojourn or place of origin;
4. Judicial Decisions
2. Seat of a legal or juridical person,

whether a person is a corporation.
COMPARES WITH PUBLIC INTERNATIONAL 3. Situs of the thing;
LAW 4. The place where the action has been
PRIVATE: committed/ done;
1. AS TO TRANSACTIONS: Between private 5. The place where the act is intended
persons and or private corporations; to take effect (important in
2. AS TO SOURCES: The local or internal laws contracts/ tort);
of a state; 6. The intention of the parties of which
3. AS TO PARTIES: Private persons, and or law should govern;
private corporations; 7. The place where the judicial or
4. AS TO REMEDIES: All remedies are administrative proceedings are
provided by the municipal laws of the instituted/ done;
state, such as resort to courts and 8. The flag of the ship which is also
administrative tribunals decisive in contracts.

PUBLIC: QUESTIONS CONSIDERED IN CHOICE OF
1. AS TO TRANSACTIONS: Between states, LAW:
and or internationally recognized 1. What legal system should control a
organizations, or government to situation where some of the
government transactions; significant facts occurred in two or
2. AS TO SOURCES: Article 38 of Statue of more states;
International Court of Justice; Convention, 2. Up to what extent the chosen legal
Treaty, General Principles of Law system regulates the situation.
recognized by civilized nations, and
juridical decisions and teachings of the PRINCIPLES:
most qualified publicists. 2. A court, subject to its constitutional
3. AS TO PARTIES: States and or restrictions, will follow a statutory
internationally recognized organizations; directive of its own state on choice of law.
4. AS TO REMEDIES: All remedies a state
may resort to, such as, diplomatic
Page 3 of 62

3. If there are no directives, the following 2. PUBLIC:
circumstances (Place of the most a. Administrative difficulties encountered
significant relationship): when courts are congested;
a. The need for interstate/ international b. Jury duty as burden imposed upon the
system; community;
b. The relevant policies of the forum; c. Familiarity of the court with foreign
c. The relevant policies of the other laws.
interested states and the relative
interests of those states in the FACTORS IN APPLYING THE FORUM LAW
determination of the particular issue; 1. A specific law of the forum decrees that
d. The protection of justified expectations; internal law be applied;
e. The basic policies underlying the 2. The proper foreign law was not properly
particular field of law; proven or pleaded;
f. Certainty, predictability, and 3. The case falls under any of the EXCEPTIONS TO
uniformity of result; THE APPLICATION OF THE FOREIGN LAW:
g. Ease in the determination and a. When the foreign law is contrary to public
application of the law to be applied. policy;
b. When the foreign law is penal in nature;
SOME DIRECTIVES APPLICABLE IN THE c. When the foreign law is procedural in
PHILIPPINES nature;
ART. 15, NCC d. When the foreign law is purely fiscal or
Laws relating to family right and duties, or administrative in nature;
the status, condition and legal capacity of e. When the application of foreign law will
persons are binding upon citizens of the result to injustice;
Philippines, even though living abroad. f. When the case involves properties situated
1. Domiciliary Rule which makes the in the forum;
domicile of a person as the g. When the application of foreign law might
determining factor. endanger the vital interest of the state;
2. Nationality Rule which makes the h. When the foreign law is contrary to good
citizenship/ nationality of a person as morals.
the determining factor for choice of
law. This is followed by the CORRELATION OF CHOICE OF LAW AND
Philippines. JURISDICTION
1. The factors that justify the courts exercise
CIRCUMSTANCES IN GRANTING FORUM of jurisdiction may be the same factors that
NON CONVENIENS will determine whether or not it is proper
1. PRIVATE: for the forum to apply its internal laws;
a. Relative ease of access to proof; 2. If the forum chose to apply its internal law
b. The availability of the compulsory because it has interest in the case, the result
process for attendance of unwilling of the case will be foreordained by the court
witnesses; where the action is brought;
c. Cost of obtaining and attendance of 3. Since in practice, the forum will apply its
willing witnesses; internal law rather the foreign law, the
d. Possibility of viewing premises if such is plaintiff will predictably file his claim in the
appropriate; courts of the state the internal rules of
e. All other practical problems that make which are favorable to him.
trial of case easy, expeditious and
inexpensive.
Page 4 of 62

APPROACHES TO THE CHOICE OF LAW g. Ease in the determination and
1. What legal system should be applied where application of the law to be
some of the significant facts occurred in two or applied.
more states?
2. Up to what extent the chosen legal system TORTS:
should control the situation? a. The place the injury
occurred;
A. TRADITIONAL APPROACH b. The place where the
1. VESTED-RIGHTS THEORY: An act done negligence occurred;
in a foreign jurisdiction gives rise to the c. The domicile, residence,
existence of right if the laws of that nationality of the parties;
state provides so. LOCAL CONDUCTS d. The place where the
SHOULD BE GOVERNED BY LOCAL LAW. relationship between the
2. LOCAL LAW THEORY: States that the parties is entered.
forum or local laws will apply.
3. CAVERS PRINCIPLE OF PREFERENCE: CONTRACTS:
when the court was faced with a a. The law of the place
question whether to reject the case, as chosen by the parties;
inapplicable, it must: b. The place of the
a. Scrutinize the facts giving rise to contracting;
the issue before it; c. The place of the
b. Compare carefully the proffered negotiation of the
rule of law and the result of its contract;
application to the case at bar with d. The place of performance;
the rule of the forum and its effects; e. The domicile, residence,
c. Appraise the results from the place of incorporation
standpoint of justice between the and place of business of
litigants. the parties.

A. MODERN APPROACH The validity, interpretation and
1. PLACE OF THE MOST SIGNIFICANT negotiation of the contracts is
RELATIONSHIP: determined by the law where the
a. The need for interstate or contract is executed, while the
international system; actions for the performance of
b. The relevant policies of the forum; the contracts is determined by
c. The relevant policies of the other the law of the place where the
interested states and the relative contract is to be performed. The
interests of those states in the breach of the contract and what
determination of the particular circumstances excuse a breach is
issue; performance, therefore is
d. The protection of justified determined by the law of the
expectations; place where the contract is to be
e. The basic policies underlying the performed.
particular field of law;
f. Certainty, predictability, and 2. INTEREST ANALYSIS
uniformity of result; This determines whether the state has
real interest over the case. If both of the
states have interest, then there is a real

Page 5 of 62

conflict of laws, if only one of the states B. ARTICLE 16 OF THE NCC:
is interested, then there is a false "Real property as well as personal property
conflict of laws. is subject to the laws of the country where
they are situated.
3. COMPARATIVE IMPAIRMENT:
The states are all interested with the However, intestate and testamentary
resolution of the case, however the succession, both with respect to the order
courts here were asked to weigh of succession, amount of successional
conflicting interests and apply the law of rights and to the intrinsic validity of the
the state whose interest would be more testamentary provision shall be governed
impaired if its laws were not followed. by the national law of the person whose
succession is under consideration,
4. FUNCTIONAL ANALYSIS: whatever may be the nature of the
After the courts determined the property, and regardless of the country
concerned state, the courts are asked to wherein said property may be found.
look into the general policies of the
state beyond those reflected in its C. ARTICLE 17 OF THE NCC:
substantive law and to policies and The forms and solemnities of contracts,
values relating to effective and wills and other public documents shall be
harmonious intercourse between states. governed by the law of the country where
they are executed.
5. CHOICE-INFLUENCING
CONSIDERATIONS: When the acts referred to are executed
a. Predictability of the results; before the diplomatic or consular officials
b. Maintenance of interstate and of the Republic of the Philippines in the
international order; foreign country, the solemnities
c. Simplification of the judicial task; established by the Philippines shall be
d. Application of the better rule of law observed in their execution.
e. Advancement of the forums
governmental interests. Prohibitive laws concerning persons, their
acts or property, and those which have for
THE PROBLEM IN CHARACTERIZATION: their object public order, public policy and
3. SUBJECT MATTER CHARACTERIZATION (ALSO good morals shall not be rendered
KNOWN AS DOCTRINE OF QUALIFICATION) is inefficient by laws or judgments
the process by which the court assigns a promulgated, or by determinations, or
disputed question to an area of a particular conventions agreed upon in a foreign
field of law; such as but no limited to torts, country.
family, property, and contracts.
4. SUBSTANCE PROCEDURE DICHOTOMY Directs
A. ARTICLE 15 OF THE NCC: the court up to which extent it will apply the
The laws concerning family relations and foreign law. If substantive, the court shall use
duties, to the status, condition and legal foreign law. If procedural, the court shall use
capacity shall be binding upon the citizens the forum law.
of the Philippines, even though living
abroad. Procedural issues are governed by the forum
law.


Page 6 of 62

2. STATUTE OF FRAUDS has no conflict of laws complication. Here,
a. The statute of fraud is considered the court rejects the renvoi;
as substantive if the words of the 2. The court may accept the renvoi, and refer
law relate to forbidding the not only just to another states internal law,
creation of obligation; but to the whole law including choice of
b. It is procedural if it forbids the law rules application in multi-state cases;
enforcement of the obligation. 3. Desistance or mutual disclaimer of
jurisdiction; That is the court upon its
3. STATUTES OF LIMITATIONS AND reference to another states law sees that
BORROWING STATUTES such law is limited in application upon its
By tradition, statues of limitations were nationals and has no provision for
classified as "procedural" because they application to non-national;
barred only the legal remedy without 4. Foreign court theory: That the forum
impairing the substantive right would assume the same position as the
involved. foreign court in resolving the case
presented to it.
Exception; certain statute of
limitations has been classified as ---O-o-O---
substantive if they provide a
shorter period for certain types of
claims that fall within a wider
classification covered by a general
statute of limitations.

DPAAGE:
Is a term or phenomenon where different aspects
of a case involving a foreign element may be
governed by different system of laws.

It is also defined as the processed employed by the
forum wherein the issues presented before it is
dissected issue by issue and then categorically
assigned to a specific branch of law.

RENVOI
Is a procedure where a jural matter presented is
referred back by the conflict of laws rules of the
forum to a foreign state, the conflict of laws rules
of which, in turn, refers the matter back to the law
of the forum or a third state.

DEALING WITHE RENVOI:
1. If the conflicts rules of the forum refer the
judicial matter to another state, it is
deemed to mean only the internal law of
that state. The internal law is that which
would be applied to a domestic case that

Page 7 of 62

NOTICE activities in Oregon that resulted in
substantial civil and criminal antitrust

activities.
MULLANE vs CENTRAL HANOVER BANK & TRUST

CO., TRUSTEE ET AL
Heitner field a motion for an order of
Hanover Bank, a trust company in New York
sequestration of 82 thousand shares of
which had exclusive management and control
Greyhound stocks belonging to the
of common trust fund established by the
defendants. The seizure was accomplished by
banking laws of New York, petitioned under it,
placing stop transfer orders on the books of
for the judicial settlement of accounts which
Greyhound. None of the books were present
would be binding and conclusive as to any
in Delaware but the lower court considered
matter set forth therein upon everyone
the same to be in Delaware because it was the
having any interest in the common fund or in
state of incorporation.
any participating trust.

Defendants were notified by certified mail to
Some of the beneficiaries were nonresidents
their last known addresses and by publication
of the State. The only notice of the said
in a newspaper. Defendants contested the
petition given the beneficiaries was by
procedure since it deprived them of the due
publication in local newspapers.
process of law and that they did not have

sufficient contacts with Delaware to justify its
ISSUE: WON the publication is sufficient to be
exercise of jurisdiction.
binding upon the said nonresidents

beneficiaries.
ISSUE: WON the notice is proper.

HELD: The notice shall be sent personally to
HELD: No. Delaware courts based their
an individual to bind him, unless after
jurisdiction only on the presence of the
reasonable diligence of finding the person,
property of Greyhound in Delaware yet the
the latter cannot be found, then substituted
same is the not the subject of the litigation.
service may be had. In the case at bar, the

trustee has on its books the names and
The subject of the litigation in this case was
addresses of the income beneficiaries
the defendants, thus making the action in
represented by the appellant and there is no
personam, wherein personal notice must be
ground for dispensing with a serious effort to
effected.
inform them personally of the accounting, at

least by ordinary mail.
The minimum contacts and fundamental

fairness test should be satisfied regardless of
Where the names and post office addresses
whether the proceedings are in rem, quasi in
of those affected by the proceeding are
rem, or in personam.
known or at hand, the reasons disappear for

resort to means less likely than the mails to
KINDS OF CONTACTS UPON WHICH
appraise them of its pendency.
JURISDICTION WILL BE ASSERTED:

1. Commission of tortuous acts within the
SHAFFER vs HEITNER
state;
Heitner, a nonresident of Delaware and
2. Celebration of the contract in a state;
owner of one share of stock in Greyhound
3. Presence of property owned by the
Corporation, filed a suit against Greyhound
defendant.
and 28 officers. Heitner alleged that the

defendants had violated their duties to

Greyhound by causing it to engage in
Page 8 of 62

JURISDICTION OVER THE SUBJECT within the general jurisdiction of
MATTER the CFI.
1. Conferred by law for the court to be
able to take cognizance of the cases of Note: The cause of action of the
a general class to which the case petitioner falls within the general
belongs; jurisdiction of the CFI, which is to
2. Cannot be conferred by consent or render judgment as to the shares of
stipulation of the parties; stock. On the other hand, Idonahs
3. Decision may be set aside either action also falls within the general
directly or collaterally. jurisdiction of the CFI, thus asking
the court to execute upon the New
SUBJECT MATTER Yorks judgment.
IDONAH PERKINS vs ROXAS
Eugene Perkins filed a case in CFI WAYS OF DEALING WITH A CONFLICTS
Manila against Benguet PROBLEM
Consolidated Mining Co. for the 1. The court may DISMISS the action for lack of
recovery of his shares of stocks jurisdiction on ground of forum non
registered in his name, payment of conveniens
which was withheld by the said 2. ASSUME JURISDICTION and apply either the
company. BCMC alleged that it local/ forum or foreign law.
withheld the said payment because
of the adverse claims made by FORUM NON CONVENIENS the court will
Idonah Perkins and George dismiss the case on ground that the
Englehard. Eugene amended his controversy may be more suitably tried
complaint and included Idonah and elsewhere. Another reason is to prevent global
asked that they be adjudged forum shopping which is filing of repetitious
without interest in said shares of suits in courts of different jurisdiction.
stocks.
HEINE vs NEW YORK INSURANCE COMPANY
Idonah on the other hand filed her This is one of the several claims brought
answer with cross complaint in against New York Life Insurance Company
which she set up a judgment she to recover some or two hundred forty life
obtained from the Supreme Court insurance policies made and issued by the
of New York which adjudged her as same in Germany, in favor of German
the sole owner. She alleged that citizens and payable in German marks.
the said judgment from New York is Defendants were incorporated in New
res judicata on all questions York with statutory agents in Oregon, upon
constituting the subject matter of whom service of summons can be made.
the civil case.
As a condition to the insurance companies
ISSUE: WON the judgment of the right to do business in Germany, they were
Supreme Court of New York is compelled to accede to the supervision
binding and is res judicata. and control of German insurance officials
to invest the proceeds arising from
HELD: Yes. The New York judgment German policies in German securities, and
is a form of judgment which is to establish an office there with an agent
recognized by Section 47 Rule 38 of upon whom service can be made.
Rules of Court and which falls

Page 9 of 62

The actions were brought in the name of case before the Southern District Court of
the insured parties in the US and Germany New York which is similar to those already
for amounts due or owing under the filed.
policies.
Union Carbide Corporation moved to
ISSUE: WON the dismissal of the case by dismiss the complaints on grounds of
the New York Court is proper. forum non conveniens and the plaintiffs
lack of standing to represent the victims.
HELD: Yes. The courts of Germany and New The court granted the motion to dismiss
York are open and functioning and upon some conditions.
competent to take jurisdiction of the
controversies and service can be made WING ON COMPANY vs SYYAP
upon the defendants in either of such Defendant is a domestic corporation
jurisdiction. To require the defendants to ordered through its New York agent
defend he actions in New Yorks district various quantities of clothing materials
would impose upon them great and from herein Plaintiff, a foreign partnership
unnecessary inconvenience and expenses, based in New York which did not have
and probably compel them to produce license to transact business in the
here (3,000 miles from their home office) Philippines. There was a verbal agreement
numerous records, books and papers, all of that Syyap would pay for the cost of the
which are in daily use by it in taking care of merchandise and that after its sale, the
current business. profits will be divided between Syyap and
Wing On.
It would no doubt consume months of the
time of this court to try and dispose of Syyap paid Wing On a partial payment
these cases, thus necessarily disarranging leaving a balance thereof. Syyap failed to
the calendar resulting in delay, settle the debt or account for the profit.
inconvenience and expense to other Wing On filed a civil case for the recovery
litigants who are entitled to invoke its of money. The court rendered judgment in
jurisdiction. favor of Wing On and ordered the
defendant to pay the balance and
IN RE: UNION CARBIDE attorneys fees and make an accounting of
A devastating accident one night the profits realized.
happened on 1984 resulting to the death
of over 2000 people and injuries over Syyap contended that 1) the court a quo
200,000 caused by lethal gas which was had no jurisdiction to try the case because
released from the chemical plant operated Wing On is not licensed to do business in
by Union Carbide India Ltd. After four days the Philippines and therefore had no legal
of the incident, about 145 cases were filed capacity to sue. And 2) the trial court could
in the US on behalf of the victims. Thus, have dismissed the case on grounds of
the cases were consolidated in Southern forum non conveniens.
District New York Court.
ISSUE: WON the case should have been
In the meantime, in 1985, India enacted dismissed on the said ground.
Bhopal Gas Leak Disaster Act granting to
the Indian Government the Union of India HELD: No. The forum non conveniens does
the exclusive right to represent the victims not apply in the case. Well settled is that a
of the said disaster. It then filed another case filed by the plaintiff should not be

Page 10 of 62

disturbed unless the balance is strongly in code submitted is in effect, nor the
favor of the defendant. If the case would book from the same was extracted
be dismissed, there would be injustice were published or printed out in West
taking into consideration that the Virginia.
defendant is a resident of the Philippines.
PHILIPPINE TRUST CO. vs BOHANAN
It is true that the contract was signed in the The CFI of Manila admitted to probate
US, but the goods were however delivered the will made by Bohanan, and in doing
and received in the Philippines. Taking into so, it declared that the latter is a citizen
consideration the transaction, Wing On of Nevada. The Philippine Trust Co. as
may sue in the Philippines. executor of the will was ordered to
enter upon the execution and
When the forum is the only state where performance of its trust.
jurisdiction can be obtained over the
defendant and, in addition, some relation In the succeeding hearing of the
with the parties exists or when the forum probate, Nevada law was not
provides procedural remedies available in introduced. The widow of CO Bohanan
another state, the forum court may not questioned the validity for the will
resist imposition upon its jurisdiction. which gave the grandson 90K of the
211K and one half of all shares of stock
ASSUME JURISDICTION of several mining companies. He also
The presence of ANY of the following will gave many shares to his brothers and
justify the application of internal law: sisters, leaving only 6K for the widow
1. A specific law of the forum or decrees that and his children.
internal law should apply;
2. The proper foreign law was not properly HELD: Since CO Bohanan died in 1944,
pleaded and proved; the old civil code is in effect. It provides
3. The case falls under any of the exceptions that successional rights to property are
to the application of foreign law (See page to be governed by the national law of
4 or page 11). the person whose succession is in
question.
FLEUMER vs HIX
Fleumer is the administrator of the Stated on the records of the case,
estate of Hix, appealed from the during the hearing on 1954 initiated by
decision of the lower court denying the widow for the withdrawal of 20K,
probate of a document alleged to the Nevada law was presented as an
will of Hix. Fleumer alleged that the will evidence. The Supreme Court held that
was executed in Virginia by Hix who this serves as a judicial notice to our
was residing therein and therefore, the courts which does not require evidence
laws of Virginia should govern. He to be proven. Hence the lower court
submitted a copy of the code which is committed no reversible error.
certified by the Director of our National
Library. FOREIGN LAWS CANNOT BE APPLIED ON THE
FOLLOWING
HELD: The laws of foreign jurisdiction 1. When the foreign law is contrary to an
do not prove themselves in the court. important public policy of the forum;
In this case, there were no supporting 2. When the foreign law is penal in nature;
evidence presented to show that the

Page 11 of 62

3. When the foreign law is procedural in ALABAMA GREAT SOUTHERN RR CO vs
nature; CARROLL
4. When the foreign law is purely fiscal or Carroll is a resident of Alabama and
administrative in nature; was a brakeman employed by the
5. When the application of foreign law will defendant, which is an Alabama
result to injustice; corporation and operated a railroad
6. When the case involves real or personal from Tennessee through Alabama to
property situated in the forum; Mississippi. The contract of
7. When the application of the foreign law employment was entered in Alabama.
might endanger the vital interest of the
state; Carroll was injured in Mississippi as a
8. When the foreign law is contrary to goods result of failure to spot a defective link
or morals. between two freight cars which the
defendants employees were under
THEORIES/ APPROACHES duty to inspect.

1. TRADITIONAL APPROACH
Under the Mississippi law, Carroll could
A. VESTED RIGHT THEORY an act done in a
not recover against his employer
foreign jurisdiction gives rise to the
because the negligence was caused by
existence of the right if the laws of that
the act of a fellow servant. Under
state provide so. This right provides in the
Alabama law, absolute liability was
plaintiff and carries it with him to be
imposed on the company for injuries
enforces in any forum he chooses to bring
suffered by employees in the course of
suit.
their employment.

GRAY vs GRAY
Carroll brought the suit in Alabama.
Gray filed an action in New Hampshire

for damages arising out of personal
HELD: It is well settled that a law
injuries alleged to have been caused by
subject in some jurisdiction to
her husband while driving from their
qualification that the infliction of the
home in New Hampshire to Maine
injuries would also support an action in
where the accident happened. In
the State where the suit is brought, had
Maine, spouses are barred from
they been received within that State.
maintaining an action against each

other while no such prohibition exists
The cause of action arose within the
in New Hampshire.
state of Mississippi and therefore the

right to sue for the claims of damages
HELD: If there is a conflict between the
will be confided within that State.
lex loci and lex fori, the former will

govern in torts the same as in contracts,
Hence the contract of employment
in respect to the legal effect and
which was executed in the state of
incidents.
Alabama creates only the relationship

of a master-servant relationship.
It was held that local conduct should be

governed by local law.
B. LOCAL LAW THEORY the power of the

state to regulate within its territory has no

limitation, except such as may be imposed


Page 12 of 62

by its own positive laws. This was criticized THE CONTACTS TO BE TAKEN INTO
as being a narrow-minded. ACCOUNT FOR TORTS:
1. The place where the injury
C. CAVERS PRINCIPLE OF PREFERENCE occurred;
where the choice of law should be 2. The place where the negligent
determined by considerations of justice conduct occurred;
and social expediency. 3. Domicile/ Residence/ Nationality
of the parties;
WHERE THE COURT HAS TO DETERMINE 4. The place where the relationship
THE INAPPLICABILITY OF THE LAW IN THE between the parties is entered.
JURISDICTION, IT SHOULD:
1. Scrutinize the event or transaction THE CONTACTS TO BE TAKEN INTO
giving rise to the issue before it; ACCOUNT FOR CONTRACT CASES:
2. Compare the proffered rule of law and 1. The law chosen by the parties, and
the result which its application might in case of its absence, the law of the
work in the case at bar with the rule of contracting;
the forum and its effect therein; 2. The law of the place where the
3. Appraise these results from the contract was executed;
standpoint of justice between the 3. The law of the place of the
litigants or to those which are broader performance of the contract;
considerations of social policy which 4. The Domicile/ Residence/
conflicting laws may evoke. Nationality of the parties

2. MODERN APPROACHES AUTEN vs AUTEN
A. PLACE OF THE MOST SIGNIFICANT The Autens were married in
RELATIONSHIP wherein plurality of factors England in 1917 and live there
must be considered in the light of choice of until 1931, when the husband
law principles. deserted his wife and children
1. The needs of the international and and moved to New York. Wife
interstate system; went to New York where a
2. Relevant policies of the concerned separation agreement was
state; executed in 1933. Under the
3. Relevant policies of other interested agreement, he had to pay 50
states and the relative interest of those pounds a month through New
in the determination of the particular York trustee for the support of
issues; his wife and children; parties
4. Protection of the justified expectations lived separately and promised
of the parties; not to bring any action relating
5. Basic policies underlying the particular to their separation. Mr. Auten
field of law; failed to give financial support,
6. Certainty, predictability and uniformity so his wife brought a suit for
of result; legal separation in England, on
7. Ease in the determination and ground of adultery. Mr. Auten
application of the law to be applied. was serve with the process, the
case never went to trial and
TO DETERMINE THE MOST SIGNIFICANT Mrs. Auten received nothing.
PLACE, THE FACTUAL CONTACTS OF EACH Hence, the present action was
CASE WERE CONSIDERED brought in New York to enforce

Page 13 of 62

the separation agreement. English law which must be
Husband argued that the wifes applied to determine the
institution of the English impact and effect to be given
separation was a violation of the wifes institution of the
thereof and thus, his obligation separation suit.
was extinguished. The lower
court applied the New York law, The agreement was made
and found for the defendant. between British subjects, who
had been married in England,
HELD: Most of the cases rely had children there and lived
upon the generally accepted there as a family for 14 years.
rules that All matters bearing
upon the execution, the Since the law of England must
interpretation and the validity be applied, and since at the
of the contracts are very least, an issue exists as to
determined by the law of the whether the courts of that
place where the contract is country treat the
made while all matters commencement of a
connected with its separation action as a
performance are regulated by repudiation of an earlier-made
the law of the place where the separation agreement,
contract, by its terms, is to be summary judgment should
performed. have not been granted.

What constitutes a breach of HAAG vs BARNES
the contract and what An illegitimate child was born
circumstances excuse a breach to Norman Barnes, an Illinois
are considered matters of lawyer and Dorothy Haag, a
performance, governable, New York legal secretary. After
within this rule, by the law of she became pregnant, Haag
the place of performance. went to California to live with
his sister. She traveled to
The merits of its approach are Chicago prior to the childs birth,
that it gives to the place having where Barnes promised to
the most interest in the shoulder her hospital expenses.
problem paramount control The parties then entered into a
over the legal issues arising out support agreement in Chicago
of a particular factual context, providing that Barnes would
thus allowing the forum to pay $275 a month until the
apply the policy of the child reached the age of 16 in
jurisdiction most intimately exchange for his release from
concerned with the outcome of any other obligation. The
the particular litigation. agreement contained a choice-
of-law clause in favor of Illinois
In the case at bar, examination which upheld the validity of
of the respective contract with such agreements if the sum was
New York and England compels at least $800. However, New
the conclusion that it is the York law gave no binding effect

Page 14 of 62

to agreements by parents of an D. FUNCTIONAL ANALYSIS
illegitimate child unless it was This approach looked into the general
judicially approved. policies of the state beyond those reflected
in its substantive law and to policies and
Haag and the child returned to values relating to effective and
New York and filed this support harmonious intercourse between states.
action. Barnes interposed the
Illinois agreement as a bar to E. CHOICE-INFLUENCING CONSIDERATIONS
the instant proceedings. 1. Predictability of results;
2. Maintenance of interstate and
HELD: Illinois as the country international order;
which has the most significant 3. Simplification of the judicial task;
relationship to the contract. 4. Application of the better rule of law;
Among these other Illinois 5. Advancement of the forums
contract are the following: 1) governmental interests.
both parties are designated in
the agreement as being ---O-o-O---
Chicago, Illinois, 2) the child
was born in Illinois, 3) the
persons designated to act as
agents for the principals are
Illinois residents, as are the
attorneys for both parties who
drew the agreement, and 4) all
contributions for support
always have been, and still are
being made from Chicago.

B. INTEREST ANALYSIS
1. After the court analyze the policies
reflected by a state law, it had to
determine whether both states had a
real interest in having their law applied
hence, there was a real conflict.
2. If, however, only one of the states had
an interest in having its law applied
while the other did not, there was a
false conflict and the forum had to
apply the substantive law of the only
interested state.

C. COMPARATIVE IMPAIRMENT
Courts were asked to weigh conflicting
interests and apply the law of the state
whose interest would be more impaired if
its law were not followed.


Page 15 of 62

JUDICIAL NOTICE AND PROOF remainder of their estate to
each other, during his natural
OF FOREIGN LAW lifetime subject to the
condition that upon the death
A. EXTENT OF JUDICIAL NOTICE: of whoever them survived the
1. Foreign law is treated as a fact, which has other, the remainder of what
to be properly pleaded and properly he or she would inherit from
proved. the other is given, devised,
2. DELGADO vs REPUBLIC: judicial notice may bequeathed to the brothers
only be taken when the court is evidently and sisters of the latter.
familiar with the foreign law.
Mrs. Hodges died first, and MR.
a. PROOF OF FOREIGN LAW Hodges was appointed special
1. Official publication of the law administrator and eventually
2. A copy of the law attested by the executor of the will. Allegedly,
officer having a legal custody of the he made a statement that he
record, OR by his deputy. IF such renounced his shares, in the US.
record is not kept in the Philippines, it
must be accompanied with a Mr. Hodges died, and one
certificate that such officer has the Magno was appointed as the
custody. administrator of the estate of
In a judicial proceeding, if a Mrs. Hodges. Magno was
copy of a foreign law is replaced by PCIB. Thereafter
presented, it shall be two probate proceedings were
accompanied with its official instituted jointly.
translation when the same is PCIB contended that since the
written in a foreign language. spouses were both residence of
3. In public documents executed abroad, the Philippines, the estate left
it must be duly authenticated by the by Mrs. Hodges could not be
Philippine Consul attaching his more that of her share in the
consular seal. conjugal partnership,
4. Depositions may also be taken abroad: notwithstanding that she was a
On notice before the secretary of citizen of Texas, USA, in
the embassy or legation consul accordance with the Civil Code.
general, vice consul, consul, or
consular agent of the Republic of On the other hand, Magnos
the Philippines. stand was that the applicable
Before such any persons appointed law was that of Texas under
by the commission OR under which Mrs. Hodges estate
letters rogatory. could not be less than her share
Before such person that the parties or of the conjugal partnership.
have stipulated.
HELD: It should be borne in
PHILIPPINE COMMERCIAL AND mind that the question of what
INDUSTRIAL BANK vs ESCOLIN are the laws of Texas governing
Spouses Hodges made a will the matters here in issue in the
stating that they give, devise, first instance, one of fact, not
bequeath all of the rest and of law.

Page 16 of 62

EFFECTS OF FAILURE TO PLEAD AND PROVE
IN RE ESTATE OF JOHNSON FOREIGN LAW
Emil Johnson is a native of 1. Court will DISMISS the case;
Sweden, Citizen of US, died in 2. Court will ASSUME that the foreign law is
Manila leaving a will. The the same as the local law;
document was a holographic 3. Court will APPLY the law of the forum.
instrument, where there were
only two witnesses instead of WALTON vs ARABIAN OIL COMPANY
three required by section 618 Plaintiff is a citizen of Arkansas, who while
of the Civil Code. temporarily in Saudi Arabia was seriously
A petition was filed for the injured due to vehicular accident involving
probate of the will, on the with the truck owned by the defendant
ground that Johnson was at the company. Respondent is a corporation
time of his death a citizen of the incorporated in Delaware, has license to
State of Illinois, USA, and that operate in New York, and engaged in
the will was executed in extensive business in Saudi Arabia.
accordance to their law. The
document was declared legal The complaint did not allege pertinent
and admitted to probate. Saudi Arabian Laws nor he did prove and
offered to prove it. The answer, too, did
However, after the will had not alleged the same.
been probated, the daughter of
Johnson, Ebba Ingeborg The court did not take judicial notice of the
opposed to probate, move for Saudi Arabian Law, and decided in favor of
the annulment and initiated for the defendant.
intestate administration on
grounds that Emil Johnson was HELD: The Court relied on the New York
not citizen of the state of Illinois, law where the plaintiff has the burden of
USA. proof. The foreign in this case was not
pleaded, nor proved.
HELD: The judge of the probate
court was mistaken for having A party who fail to introduce proof as to
taken judicial notice of the law the content of the foreign law acquiesce to
of state of Illinois in allowing the application of the forum law. This
the probate of the said will, proceeds from the theory that the basic
however it cannot be set aside law is the law of the forum and when the
since 1) the petition of does not claimed applicable forum law is not proved,
state any fact from which it then the court has no reason to displace
would appear that the law of the basic law.
Illinois is different from what
the court found, and 2) because LEARY vs GLEDHILL
the assignment of error and The plaintiff and the defendant herein
argument for the appellant in were acquainted in the military service.
this court raises no question Once of their correspondence resulted in
based on support error. Leary purchasing 1000$ worth of stock
from Gleadhill. Gleadhill invited Leary to
France, and Gleadhill told Leary that he
needed about 4000$ and that he could

Page 17 of 62

raise 2000$ by asking his wife to sell the constrained to buy another ticket for their
automobile in the US. Upon Learys return trio back to Manila.
in Germany, he mailed Gleadhill a check
worth 1500$ but was never mention of Petitioners filed actions for damages based
what it was for. on breach of contract of air carriage before
the RTC Makati which ruled in their favor.
An action was filed by Leary in order to
recover the 1500$ allegedly being a loan. On CA, the decision was reversed holding
The defendant moved for the dismissal of that the overbooking of flights is an
the action on ground that the Plaintiffs accepted practice of US Airlines. Hence this
proofs were insufficient, there being no petition for review.
promise to repay, no demand for
repayment and no pleading or proof of law HELD: The US law or regulation allegedly
of France where the transaction transpired. authorizing overbooking has never been
proved. Foreign laws do not prove
HELD: France is not a common-law country, themselves nor the courts can take judicial
but a civilized one. Though there was no notice of them.
proof of the law of France does not mean
that the action of the Plaintiff must fail. In Even assuming that overbooking is allowed,
this kind of circumstances, one of the respondent TWA is still guilty of bad faith
presumptions may be indulged, (that the in not informing its passengers beforehand
law of France is the same as the law of the that it could breach the contract of
forum; that the law of France, like all carriage if they have confirmed tickets if
civilized countries, recognized certain there were overbooking, making them
fundamental principles the taking of the liable for damages.
loan creates an obligation upon the
borrower to make repayment. MICIANO vs BRIMO
The case concerns the partition of the
The court based its decision upon the estate of Joseph Brimo. Miciano was
presumption that the law of France in appointed as the judicial administrator of
common with that of the other civilized the said estate. A brother of Brimo, Andre
countries recognizes a liability to make Brimo opposed the said partition on the
repayment under the facts presented. ground that the partition violates the
deceaseds Turkish nationality and hence
ZALAMEA vs COURT APPEALS violating the Philippine Civil Code which
Spouses Zalamea and their daughter provides that legal and testamentary
bought from Manila agent of Transworld succession, in respect to the order of
Airlines Inc. airline tickets. They purchased succession as well as to the amount of
it for 75% off while their daughter at full successional rights and the intrinsic validity
fare. All tickets were confirmed in Manila of their provisions, shall be regulated by
and reconfirmed in New York. the national law of the person whose
succession is under consideration.
On the date of flight, they were wait listed However, the oppositors failed to prove
because all seats were taken. Mrs. Zalamea that the said testamentary dispositions are
who was holding her daughters full fare not in accordance with the Turkish Laws,
ticket was allowed to board the plane. Mrs. and failed to present any evidence showing
Zalamea and her daughter were what the Turkish laws are on the matter.


Page 18 of 62

HELD: As a result of failure by the according to the laws of such country may
oppositors brother to prove Turkish law, be allowed, filed, and recorded by the
the court presumed that the Turkish Law proper CFI in the Philippines.
was the same as with the Philippines Law.
The fact that the municipal district court of
There is no evidence in the record that the Amoy China is a probate court must be
national law of the testator, Joseph Brimo proved. The law of China on procedure in
was violated in the testamentary the probate or allowance of the wills must
dispositions in question which not being also be proved. The legal requirements for
contrary to our laws in force, must be the executions of a valid will in China in
complied with and executed. 1931 should also be established by
competent evidence.
SUNTAY vs SUNTAY
Jose Suntay, Filipino citizen and a resident The evidence presented which was
of the Philippines, died in the city of Amoy, purported to be the decision of the
Fukien in China, leaving real and personal Municipal Trial Court of China does not
properties in the Philippines and China. purport to probate or allow the will which
Survived by the children in the first was the subject of this case. In view thereof,
marriage and wife and children in the the will and the alleged probate thereof
second marriage. Intestate proceeding was cannot be said to have been done in
instituted in Bulacan. Suntays widow filed accordance with the accepted basic and
a petition in the same court for the probate fundamental concepts and principles
of a last will and testament. However, the followed in the probate and allowance of
petition was denied since the will was lost the wills. Hence the will cannot be
before the hearing. Upon appeal, further probated in the Philippines.
proceedings were ordered and a
deposition of a witness to the will was to COLLECTOR OF INTERNAL REVENUE vs FISHER
be taken but the petition was dismissed. In Walter Stevenson was born in the
the meantime, Pacific war supervened. Philippines of British parents and was
After liberation, Silvino Suntay, a son by married to a British subject. He died in
second marriage claimed that he found a 1957 and instituted his wife as his sole
will in Chinese characters executed and heiress to certain real and personal
signed by the deceased. Silvino filed a properties. The administrator of the estate
petition for the probate of the will which filed a preliminary estate and inheritance
was lost or the one which he found written tax return and later on the amount of taxes
in the Chinese Characters. and later on submitted an amended return
claiming for deductions on the amount of
HELD: Granting that there was a will duly taxes. However the Collector of Internal
executed in 1929, and not revoked before Revenue contends that the Civil Code
his death, still the testimony falls short of provides that the property relations of the
the legal requirement that the provisions foreign spouses are not to be determined
of the lost will must be clearly and by the Philippine Laws but by the national
distinctly proved by at least two credible law of the decedent, which is the English
witnesses. Law, and that English laws do not recognize
legal partnership between spouses and in
As the will executed in China, the that jurisdiction, all properties acquired
Philippines adheres to the rule that Wills during the marriage pertain and belong
proved and allowed in foreign country, exclusively to the husband and therefore

Page 19 of 62

the taxable net estate is the while of the the citizenship of his father, who acquired
decedents estate. the citizenship of his grandfather. William
is therefore, a Filipino Citizen.
HELD: The contention of the CIR that the
pertinent English law that allegedly vests in The courts have been urged to take into
the decedent husband full ownership of account the following FACTORS in deciding
the properties acquired during the whether to apply the domestic law or
marriage were not proven by the decide the case against the party who has
petitioner, and were just mere allegations. the burden of proving the contents of
Hence in the absence of the proof, the foreign law.
Court is justified in indulging in what 1. The degree of public interest involved
Wharton calls PROCESSUAL in the dispute.
PRESUMPTION, in presuming that the law 2. The accessibility of the foreign law
of England is the same as with the materials to the parties.
Philippine Laws. 3. The possibility that the plaintiff is
merely forum-shopping.
BOARD OF COMMISSIONER vs DELA ROSA 4. The similarities between the forum law
Petitioner commenced a deportation and the domestic law on the issue in
proceedings against William Gatchalian, an point.
alleged Chinese citizen for violation of the
Immigration Act, pointing out that the b. EXCEPTIONS TO THE APPLICATION OF
marriage of his Filipino grandfather in FOREIGN LAW
China as well as the marriage of his father 1. When the local law expressly provides.
also in China were not supported by any 2. When there is failure to plead, and
evidence other than their own self-serving prove foreign law or judgment.
testimony nor was there any showing what 3. When the case falls in any of the
the laws of China were. exceptions.

Petitioner contends that for the said a. Foreign law is contrary to an important
marriage be valid in this country, it should public policy of the forum
have been shown that they were valid by PAKISTAN INTL AIRLINES CORP vs
the laws of China, there being none, they OPLE
concluded that the aforesaid marriages Petitioner herein is a foreign
cannot be considered valid. corporation licensed to do business
in the Philippines, executed in
HELD: There being no proof of Chinese law Manila are two separate contracts
relating to marriage, there arises the of employment. The contract states
presumption that it is the same as that of that it is for a period of 3 years but
the Philippine laws. can be extended by the mutual
consent of the parties.
Hence, the Philippine adheres to the lex
loci celebrationis or where the marriage is It also provided that the employer
celebrated validly in the foreign country, reserves the right to terminate the
the marriage celebrated is valid agreement at any time by giving
everywhere. the employee notice in writing in
advance one month before the
Having declared the marriage as valid, it intended termination. That the
follows that William Gatchalian acquired agreement shall be governed by

Page 20 of 62

the laws of Pakistan and that only e. The application of foreign law will work
the court of Karachi Pakistan shall undeniable injustice to the citizens of
have the jurisdiction to consider the forum.
the matter arising out of this f. The foreign law is penal in character.
agreement. g. The application of the foreign law
might endanger the vital interest of the
After 1 year and 4 months prior State.
to the expiration of the contract
of employment, private ---O-o-O---
respondents herein were
terminated as FAs. Private
respondents filed for illegal
dismissal and nonpayment of
company benefits and bonuses
with the Ministry of Labor and
Employment.

PIA invoked the provisions of
the contract stating that only
the Court in Karachi has
jurisdiction over the case, or
disputes arising out of the
agreement.

HELD: The provision of the
agreement cannot be invoked
to prevent the application of
the Philippines labor laws and
regulations to the subject
matter of this case.

The employer employee
relationship between the
petitioner and the respondent
is imbued with public interest.

a. Foreign law is procedural in nature:
Procedural or remedial laws are purely
internal matters peculiar only to the
State.
b. Issues pertaining to the properties (lex
situs)
c. The Issue involved in the enforcement
of Foreign claim is fiscal or
administrative.
d. Foreign law or judgment is contrary to
good morals (contra bonos mores).

Page 21 of 62

PERSONAL LAW
B. DETERMINATION OF NATIONALITY
NATIONALITY Each state, through its municipal laws, has the
prerogative and authority to determine who
A. IMPORTANCE OF PERSONAL LAW are its nationals or citizens. (Article 2 of The
1. Serves as a permanent connection Hague Convention)
between the individual and a state.
2. The reason for assigning him a personal ARTICLE IV OF THE PHILIPPINE CONSTITUTION:
law which allows the courts to exercise 1. Those who are citizens of the Philippines at
jurisdiction or determine the governing the time of the adoption of this Constitution,
choice of law rule on a specific situation or 2. Those whose fathers or mothers are citizens
transaction involving him. of the Philippines,
3. Those born before January 17, 1973, of
MERITS AND DEMERITS OF NATIONALITY AS Filipino mothers, who elect Philippine
PERSONAL LAW Citizenship upon reaching the age of
1. Nationality was used to established the link majority, and
between an individual and a state 4. Those who are naturalize in accordance
2. Laws should apply to the citizens wherever with law.
they are.
3. Does not apply to those who are stateless. C. NATURAL BORN CITIZENS
4. Does not offer any decisive solution in 1. JUS SOLI: Follows the law of the place
state with diverse legal system such as the where one is born.
United States. 2. JUS SANGUINIS: The rule of the descent or
blood.
IMPORTANCE OF NATIONALITY IN THE
PHILIPPINES NATURAL-BORN CITIZENS
1. It is the nationality of an individual that Are those who are citizens of the
regulates his civil status, capacity, Philippines without having to perform any
condition, his family rights and duties, act to acquire or perfect citizenship. Those
laws on succession, and capacity to who elect Philippine citizenship in
succeed. accordance with paragraph 3, section 1
2. NATIONAL LAW THEORY according to hereof are DEEMED NATURAL-BORN
the Supreme Court is a conflict of laws CITIZENS.
theory by virtue of which jurisdiction
over the particular subject matter TALAROC vs UY
affecting person, such as status of Uy was elected as Municipal Mayor of
natural person, is determined by the Misamis Oriental. Talaroc was one of
latters nationality. the defeated candidates who filed a
a. ARTICLE 15 OF THE NCC: Laws petition for quo warranto against Uy on
relating to family rights and duties, the ground that Uy was a Chinese
or to status, condition and capacity citizen and therefore ineligible. The
of persons are binding upon the lower court declared the position as
citizens of the Philippines even vacant.
though living abroad.
b. A notion that an individuals Respondent Uys contentions were his
personal rights shall be governed father was a subject of Spain and that
not by the laws of his locations but his mother ipso facto reacquired her
by his political allegiance. Filipino citizenship upon the death of
Page 22 of 62

her husband. He thus followed her absent for business or pleasure, one
mothers citizenship. intends to return (animo revertendi).
The domicile of the respondent, which
HELD: Uy is a Filipino Citizen. The was the domicile of his parents, is fixed
Supreme Court cited the Roa case at Samar.
wherein it has been held that a Filipino
woman married to a Chinese ipso facto a. CITIZEN BY NATURALIZATION
reacquired her Filipino citizenship Naturalization may either be
upon her husbands demise and that judicial (CA 473 as amended by
thereafter her minor childrens Republic Act 630) or Administrative.
nationality automatically followed that
of the mothers. JUDICIAL: The petition is filed
before a competent court.
CO vs ELECTORAL TRIBUNAL OF THE 1. The petitioner must not be less
HOUSE OF REPRESENTATIVES than 21 years of age at the date
Private respondents grandfather, Ong of the hearing of the petition.
Te arrived in the Philippines from China 2. He must have resided in the
and established his residence in Samar Philippines for a continuous
where he was able to obtain a period of not less than 10 years.
certificate of residence from Spanish
colonial administration. Ong Te MAY BE REDUCED TO 5 YEARS
continued to live in the Philippines and IF:
married a natural-born Filipina. They a. If the applicant honorably
bore 8 children one of whom is the held office under the
private respondent. Government of the
Philippines or under any of
Ong Chuan was declared as a Filipino the provinces, cities,
Citizen by the CFI of Samar, and took municipalities, or political
his oath of allegiance when the private subdivisions thereof.
respondent herein was just 9 years old. b. Introduced new industry or
useful invention in the
Ong, Jr was proclaimed the winner as Philippines.
the representative in the second c. If he is married to a Filipino
district of Samar. Co, one of the woman.
defeated candidates filed election d. If he had been engaged as a
protest on the ground that Ong, Jr was teacher in a private or
not a natural-born citizen of the public school not
Philippines and was not a residence of established for the
the Samar. exclusive instruction of
children of persons of
HELD: Ong, Jr was already a citizen. The particular nationality or
reason is obvious. Not only was his race in any of the branches
mother a natural-born citizen but his of education or industry for
father had been naturalized when the a period of two years.
respondent was only 9 years old. e. If he was born in the
Philippines.
The term domicile denotes a fixed 3. He must be of good moral
permanent residence to which when character and believe in the

Page 23 of 62

principles underlying the irreproachable manner during
Philippine Constitution, and his/her entire period of
must have conducted himself in residence in the Philippines in
a proper and irreproachable his relation with the duly
manner during the entire constituted government as well
period of his residence in the as with the community in which
Philippines in his relations with he/ she is living.
the constituted Government as 4. The applicant must have
well as with the community in received his/ her primary and
which he is residing. secondary education in any
4. He must own real estate in the public or private educational
Philippines worth not less than institution duly recognized by
P5000 Philippine currency or the Department of Education,
must have some lucrative trade, Culture and Sports., where
business, or lawful profession. Philippine history, government
5. He must be able to speak and and civic are taught and
write English or Spanish and prescribed as part of the school
any of the principal Philippine curriculum and where
language. enrollment is not limited to any
6. He must have enrolled his race or nationality. Provided,
minor children of school age in that he/ she should have minor
any of the public or private children of school age, he/ she
schools recognized by the must have enrolled them in
Bureau of Private Schools similar schools.
where Philippine history, 5. The applicant must have known
government and civics are trade, business, profession or
taught or prescribed as part of lawful occupation, from which
the school curriculum during he/ she derives sufficient
the entire period of the income for his/ her support and
residence required of him, prior if he/ she is married and or has
to the hearing of his petition for dependents, also that of his/
naturalization. her family. Provided however,
that this shall not apply to
ADMINISTRATIVE applicants who are college
The petition is filed before a special degree holders but are unable
committee. to practice their profession
1. The applicant must be born and because they are disqualified to
residing in the Philippines since do so by reason of their
birth. citizenship.
2. The applicant must not be less 6. The applicant must be able to
than 18 years of age at the time read, write and speak Filipino or
of the filing of the petition. any of the dialects of the
3. The applicant must be of good Philippines.
moral character and believes in 7. The applicant must have
the underlying principles of the mingled with the Filipinos and
Philippine Constitution, and evinced desire to learn and
must have conducted himself/ embrace the customs,
herself in a proper and

Page 24 of 62

traditions and ideals of the average income of
Filipino people. P3000. Affidavits of 2
witnesses were also
DISQUALIFICATIONS: attached.
1. Those who oppose to
organized government or OSG claimed that he
affiliated with any failed to prove that he
association or group of had a lucrative income
persons who uphold and and that the witnesses
teach doctrines opposing all were not credible.
organized governments. Lower court granted the
2. Those defending or petition.
teaching the necessity of
violence and personal Yu moved to reopen the
assault, or assassination for case to enable him to
the success or present additional
predominance of their ideas. documentary proof of
3. Polygamists, or believers in income, claiming that
the practice of polygamy. he has had an increase
4. Those convicted of crimes in the salary. CFI
involving moral turpitude. rendered a
5. Those suffering from supplemental decision
mental alienation or upholding the grant of
incurable contagious the petition. OSG again
diseases. opposed claiming that
6. Those whom during the Yu failed to prove that
period of their residence in he has lucrative income
the Philippines have not to support his petition
mingled socially with the for naturalization.
Filipinos, or who have not
evinced a sincere desire to HELD: Supreme Court
learn and embrace the found that as far as the
customs, traditions and salary is concerned the
ideals of the Filipinos. petitioner was only
7. Citizens or subject of receiving P150, the rest
foreign country whose laws being in a form of
do not grant Filipinos the allowances and
right to be naturalized bonuses which may or
citizens or subject thereof. may not be given to the
petitioner. In other
YU KIAN CHE vs REPUBLIC words, the employer is
Petitioner is a citizen of not duty bound to give
China and petitioned for such allowances and
naturalization, bonuses, bust must
complete with all the spring from purely
requirements. He voluntary actuations,
alleged that he was an conditioned to the
employee with an circumstances that the

Page 25 of 62

employer was making 3. After the publication in the OG or
profits. newspaper of general circulation the
petition will be heard.
The term lucrative 4. If the petition is approved, there will be
trade, profession, or rehearing two years after the
lawful occupation promulgation of the judgment
means substantial awarding naturalization.
gainful employment or 5. Taking of Oath of allegiance to support
the obtaining of and defend the Constitution and laws
tangible receipts. It of the Philippines.
must be appreciable
margin of income over EFFECT OF NATURALIZATION IN WIFE
expenses in order to AND CHILDREN
provide for an 1. Any women now or hereafter be
adequate support for married to a citizen of the
himself and his family Philippines, and who might herself
in the event of sickness, be lawfully naturalized shall be
unemployment or deemed a citizen of the Philippines.
disability to work. 2. Minor children of persons
naturalized under this law who
C. PROCEDURE FOR NATURALIZATION have been born in the Philippines
1. A declaration of intention to become a shall be considered citizens
citizen must first be filed, unless the thereof.
applicant is exempted (Sec 5, 6 of CA 473). 3. Foreign-born minor child, if in the
Philippines at the time of the
Shall be filed with the OSG under oath that naturalization of the parent, shall
applicant has his bona fide intention to automatically become a Philippine
become a citizen of the Philippines. citizen.
4. Foreign-born minor child, who is
EXEMPTIONS: not in the Philippine at the time
1. If born in the Philippines and received the parent is naturalized shall be
his primary and secondary education in deemed Philippine citizen only
public schools or private schools during his minority, unless he
recognized by the Government, and begins to reside permanently in
not limited to any particular race or the Philippines when still minor, in
nationality. which case he will continue to be a
2. If continuously resided in the Philippine citizen even after
Philippines for a period of 30 years or becoming of age.
more before the filing of the 5. Child born outside the Philippines
application. after the naturalization of his
3. The widow and minor children of an parent shall be considered a
alien who declared his intention to Philippine citizen unless within
become citizen of the Philippines and one year after reaching the age of
dies before he is actually naturalized. majority, he fails to register
2. The petition for naturalization must himself as a Philippine citizen at
then be filed, one year after the the American Consulate of the
submission of declaration of intention. country where he resides and to
take necessary oath of allegiance.

Page 26 of 62

become a Filipino citizen on
VIVO vs CLORIBEL account of her marriage to a
Private respondent is a Chinese naturalized Filipino citizen, since
mother who arrived from Hong she must first prove that she
Kong and were admitted to the possesses all the qualifications
Philippines as temporary visitors and none of the
with an initial authorized stay of disqualifications for
three months. The husband naturalization.
applied for naturalization that
the CFI of Manila granted. By having misrepresented
before the Philippine consular
Respondent and her minor and administrative authorities
children petitioned for an that she came to the country
indefinite extension of their stay. for only temporary visit when in
The secretary of Foreign affairs fact, her intention was to stay
authorized the change in their permanently; and for having
category to special to non- intentionally delayed the court
immigrants for two years but processes the better to prolong
the Commissioner of her stay, she just demonstrated
Immigration refused to accept her incapacity to satisfy the
payment of extension fee. qualifications exacted by the
third paragraph of Section 2 of
Respondent appealed to the Revised Naturalization Law.
Office of the President to extend
their stay for two years that will MOY YA LIM YAO vs
coincide with the forthcoming COMMISSIONER OF
oath taking of the husband. IMMIGRATION
Petitioner Lau Yuen Yeung, a
They were advised to leave the Chinese from Kowloon, Hong
country but instead, they filed Kong applied for a visa to enter
mandamus with injunction to the Philippines to visit her
implement the previously great grand uncle. She was
authorized extension. permitted to enter and for one
months, and after repeated
HELD: The period of stay of an extensions, she was allowed to
alien temporary visitors could stay in the Philippines up to
not be extended without first 1962. She contracted marriage
departing from the Islands and it with Mo Ya Lim Yao, alias
was held that no officer can Edilberto Lim, an alleged
relieve him of the departure Filipino citizen. After the
requirements of Section 9 of the expiration of Laus authorized
Immigration Act under the guise stay, she brought this action
of change or correction for for injunction to restrain the
the law makes no distinction and Commissioner of Immigration
no officer is above the law. from ordering her to leave the
Philippines and causing her
As to the wife, she does not, arrest and deportation and
under section 15 of RA 630 confiscation of her bond, upon

Page 27 of 62

her failure to do so. CFI take steps necessary for the
favored the Commission on cancellation of her alien
Immigration on the grounds certificate of regulation to
that an alien woman may be secure her status as a citizen.
deemed a citizen of the
Philippines by virtue of her There should be no judicial
marriage to a Filipino citizen declaration of Philippine
only if she possessed all the Citizenship.
qualifications and none of the
disqualifications specified in D. LOSS OF PHILIPPINE CITIZENSHIP
the law. 1. By naturalization of foreign countries.
2. By express renunciation of citizenship
HELD: An alien who is 3. By subscribing to an oath of allegiance
admitted as non-immigrant to support the constitution or laws of a
cannot remain in the foreign country upon attaining twenty-
Philippines permanently. To one years of age or more: Provided,
obtain permanent admission, however, that a Filipino may not divest
a non-immigrant alien must himself of Philippine citizenship in any
depart voluntarily to some manner while the Republic of the
foreign country and procure Philippines is at war with any country.
the appropriate Philippine 4. By rendering services to, or accepting
consul the proper visa and commission in, the armed forces of a
thereafter undergo foreign country: Provided, that
examination by the Officers of rendering of service to, or acceptance
the Bureau of Immigration at a of such commission in, the armed
Philippine port of entry for forces of a foreign country, and the
determination of his taking of an oath of allegiance incident
admissibility in accordance thereto, with the consent of the
with the requirements of the Republic of the Philippines shall not
law. divest a Filipino of his Philippine
citizenship if either of the following
An alien woman marrying a circumstances is present:
Filipino native-born or a. The RP has a defensive or offensive
naturalized becomes ipso pact of alliance with the said
facto a Filipino provided that foreign country.
she is not disqualified to be a b. The said foreign country maintains
citizen of the Philippines. The armed forces on Philippine
use of ipso facto clearly meant territory with the consent of the RP:
that it was no longer Provided, that the Filipino citizen
necessary for the spouse of a concerned, at the time of rendering
naturalized Filipino to prove said service or acceptance of said
that she possessed the commission and taking oath of
requisite qualifications in a allegiance incident thereto, states
naturalization proceedings, that he does so only in connection
unlike with the Burca case, with his service to said foreign
which has already been country. Provided finally, that any
overruled, wherein it was held Filipino citizen who is rendering
that an alien woman had to service to, or is commissioned in,

Page 28 of 62

the armed forces of a foreign HELD: Even if Frivalado lose his
country under any of the naturalized American citizenship, such
circumstances mentioned in par. (a) forfeiture did not and could not have
and (b) shall not be permitted to the effect of automatically restoring
participate nor vote in any election his citizenship in the Philippines that
of the RP during the period of his he had earlier renounced. He does
service to, or commission in, the become a stateless person.
armed forces of said foreign
country. Upon his discharge from FRIVALADO vs COMELEC PART 2
the service of the said foreign Frivalado obtained the highest number
country, he shall automatically be of votes in 3 consecutive elections but
entitled to full enjoyment of his civil was twice declared by Supreme Court
and political rights as Filipino to be disqualified to hold office due to
citizen. his alien citizenship. He now claims to
5. By cancellation of the certificates of have re-assumed his lost Philippine
naturalization. citizenship thru repatriation. It was
6. By having been declared by competent established that he took his oath of
authority, a deserter of the Philippine allegiance under the provisions of PD
armed forces in time of war, unless 195 on 1995. Under the Philippine law,
subsequently, a plenary pardon or citizenship may be acquired by 1)
amnesty has been granted. Direct act of the Congress, 2)
7. In case of a woman, upon her marriage Naturalization, 3) Repatriation.
to a foreigner, if by virtue of the laws in
force of her husbands foreign country, HELD: Frivalado who served the people
she acquires his nationality. repeatedly, deserves a liberal
interpretation of the Philippine laws
FRIVALADO vs COMELEC PART 1 and whatever defects there were in his
Petitioner was proclaimed governor- nationality should now be deemed
elect of Sorsogon and subsequently mooted by his repatriation.
assumed office. The League of
Municipalities of Sorsogon filed with LABO JR vs COMELEC
the COMELEC for the annulment of Petitioner was elected as Mayor of
Frivalados election and proclamation Baguio City in 1988. A petition for quo
on ground that he was not a Filipino warranto was filed by private
citizen, having been naturalized in the respondent, Lardizabal on ground that
US. petitioner was not a citizen of the
Philippines hence ineligible for the
On affirmative defense, Frivalado elective position.
contended that he only acquired
naturalization in the US to protect There were two decisions promulgated.
himself during the Martial Law. First, COMELEC found that petitioner
was a citizen of the Philippines. Second,
The Solicitor General contended that Commission on Immigration found that
Frivalado was not a citizen of the petitioner was not a citizen of the
Philippines because he has not Philippines because it found that
repatriated himself after his petitioner was still an Australian citizen
naturalization as an American citizen. as of the date of his naturalization in
1976.

Page 29 of 62

COMELEC maintained that petitioner In relation to the private respondent
did not divest of his citizenship. Hence holding a certificate of Alien
this appeal. Registration, does not follow that he is
not still a Filipino citizen. Indeed, there
HELD: Even if the petitioner assets that is no express renunciation here of
his naturalization in Australia was Philippine citizenship.
annulled after it was found that his
marriage to the Australian citizen was REPUBLIC vs LI YAO
bigamous, that circumstance along did Petitioner herein was naturalized
not automatically restore his Philippine citizen in 1952. 15 years later,
Philippine citizenship. the Solicitor General of the Philippines
filed a petition to cancel his certificate
AZNAR vs COMELEC of naturalization on grounds that he
On 1987, Emilio Lito Osmea filed his obtained his naturalization through
certificate of candidacy with the fraudulent means. It was alleged
COMELEC for the position of Provincial among others that he evaded his
Governor of Cebu in the 1988 local payment of his correct taxes for 1946-
elections. Aznar, the then Chairman of 1951.
PDP-Laban Provincial council, filed a
petition with COMELEC for the Li Yao alleged, on his defense, that his
disqualification of private respondent tax liability under PD 69 which granted
Osmea on ground that he is allegedly tax amnesty and rendered him free
not a Filipino citizen, being a citizen of from any civil, criminal, and
the US. administrative liability.

Aznar submitted a certificate issued by HELD: Jurisprudence and law allows
the Deportation Commissioner the cancellation of the certificate of
certifying that Osmea is an American naturalization upon grounds or
citizen and is a holder of an Alien conditions subsequent to the granting
Certificate of Registration. Private of the certificate.
respondent contended that he is a
Filipino citizen that he is a holder of a The tax amnesty does have the effect
valid and subsisting Philippine Passport of obliterating his lack of good moral
since birth and has not gone out of the character and irreproachable conduct
country for more than 6 months. which are grounds for
denaturalization.
HELD: The contention of the petitioner
herein is not supported by substantial E. PROBLEMS IN APPLYING THE
and convincing evidence. He was not NATIONALITY PRINCIPLE
able to present proof that the private 1. DUAL OR MULTIPLE CITIZENSHIP
respondent lost his citizenship by any a. A child born of parents who are
of the three modes namely; 1) by nationals of a country applying the jus
naturalization in a foreign country; 2) sanguinis, in a country applying the jus
by express renunciation in a foreign soli principle has dual nationality.
country; and 3) by subscribing to an b. A Filipino citizen who marries and alien
oath of allegiance to support the may acquire the citizenship of his or
Constitution or laws of foreign country. her spouse if the spouses national law
Page 30 of 62

so allows. A Filipino citizen, however, country. The court then issued a
who marries an alien may retain his resolution granting the petition.
Filipino citizenship unless, by his or her
act or omission, he is deemed under Solicitor General appealed the
the law, to have renounced it by taking decision of the lower court stating
an oath of allegiance to the spouses that Kookooritchkin failed to
country or by express renunciation. establish that he is not disqualified
c. An individual who is naturalized in a for Philippine citizenship under
foreign country but who has not Section 4(h) of the Revised
effectively renounced his former Naturalization Law.
nationality.
HELD: Appellants testimony beside
2. STATELESSNESS being contradicted, is supported by
a. DE JURE STATELESSNESS refers to an a well-known fact about the
individual who has been stripped of his ruthless of modern dictatorships
nationality by his own former has scattered throughout the world
government without having an a large number of stateless
opportunity to acquire another. refugees or displaced persons
b. DE FACTO STATELESSNESS refers to without country and without flag.
the individuals possessed of a
nationality but whose country does not Kookooritchkin is a stateless
give them protection outside their own refugee or person.
territory.
---O-o-O---
KOOKOORITCHKIN vs SOLICITOR
GENERAL
Kookooritchkin filed on 1941 a
petition for naturalization with the
CFI of Camarines Sur, accompanied
with supporting affidavits of two
citizens, a copy of declaration of
intention sworn in July, 1940.
Proper notice of the hearing was
issued. The case remained pending
during the Japanese occupation
until 1945. The case was declared
reconstituted in 1947 and evidence
was presented.

It was established that
Kookooritchkin was a native-born
Russian who arrived in this country
as a member of the White Russians
under Admiral Stark in 1923. He
was married to a Filipino, and begot
a son. It was also alleged that he
was a stateless refugee in this

Page 31 of 62

DOMICILE HELD: The essential distinction between
residence and domicile is this:

1. DEFINITION RESIDENCE: The intent to leave when the
ARTICLE 50 OF THE CIVIL CODE: For the exercise purpose for which he has taken up his
of civil rights and the fulfillment of civil abode ceases.
obligations the domicile of natural persons is the
place of their habitual residence. For juridical DOMICILE: There is no intent to leave.
persons, domicile is determined by the law
creating or recognizing it. The petitioner was not able to comply with
the wordings of the Naturalization law not
DOMICILE RESIDENCE to leave the Philippines preceding his filing
Intention to make the Only physical of the petition for naturalization.
place as his domicile presence
and physical 2. ADVANTAGES AND DISADVANTAGES
presence.
OF DOMICILE
There could only be There could be as
In common law countries, domicile is the
ONE domicile. many as residence a
preferred primary connection between a
person desires.
person and a state because it satisfies the very

purpose for having a personal law.
CAASI vs COURT OF APPEALS

Petitioner herein won an election for
This is a connection of permanent homo that
Mayor of Pangasinan. The opponent filed a
provides an adequate basis for him to exercise
case before the COMELEC on grounds that
rights therein.
Caasi is a holder of green card and

American Passport. Hence, Caasis
DISADVANTAGES:
residence is not the Philippines as required
1. Ones domicile is not ascertainable without
by the Election Law.
first resorting to the courts to establish

whether or not there is animo manendi.
HELD: Caasis filing of certificate fo
2. The notion of domicile differs widely with
candidacy for elective office in the
some states distinguishing between
Philippines did not itself constitute a
residence and domicile or attributing
waiver of his status as a permanent
different meaning of domicile.
resident of or immigrant of the United
3. If the law of domicile of origin is given
States. The waiver of his green card should
overriding significance, then it may create
be manifested by some acts independent
the same problem of attenuated
of and done prior to filing his candidacy for
connection we saw in the use of nationality
elective office in his country. Without such
as personal law.
prior waiver, he is DISQUALIFIED to run for

any elective office.
3. RULES ON DOMICILE
UYTENGSU vs REPUBLIC 1. No person shall be without a domicile.
Petitioner herein was born of the Chinese Hence, a persons domicile prevails until he
parents in Dumaguete Philippines. He acquires a new domicile.
studied in the US and went back to the 2. A person can have only one domicile for a
Philippines. When he applied for the given purpose or a given time under the
naturalization, he went back to the US to law of a particular state, but it should not
continue his studies, after some years. be assumed that the determination will be

Page 32 of 62

binding on other states or on the same 2. A bona fide intention of
state for other purposes. abandoning the former place of
3. Domicile establishes a connection residence and establishing a new
between a person and a particular territory. one.
4. The burden of proving the change of 3. Acts which corresponds with the
domicile is upon a person alleging that a purpose.
change has been secured.
In this connection, it cannot be
ROMUALDEZ-MARCOS vs COMELEC correctly argued that petitioner
Imelda Marcos filed for the candidacy lost her domicile of origin by
as a Representative of the First District operation of law as a result of her
of Leyte. On the COC she put seven marriage to Marcos in 1952. What
months on the length of the residency. the petitioner acquired was merely
She sought to amend her COC and put an actual residence and not
since birth instead of seven domicile.
months. COMELEC decided to cancel
her certificate of candidacy on the UJANO vs REPUBLIC
ground that she lacked the one year Petitioner was born of Filipino
period as a requirement for the said parents in Ilocos Sur and was
position. Hence this petition. married to a Filipina with whom he
begot a son. He left the Philippines
HELD: For the purpose of election law, for the US where he became
the term residency and domicile are resident thereof for 20 years and
synonymous. was granted naturalization. Upon
going back to the Philippines, he
It is the fact of the residence, not a applied for naturalization. The
statement in the COC which ought to court denied the petition on
be decisive in determining whether or ground that he has not met the
not an individual has satisfied the requirement residential period of
constitutional requirement. six months preceding the petition.

An individual does not lose his HELD: One of the qualifications for
domicile even if he has lived and reacquiring Philippine citizenship is
maintained residence in different that the applicant shall have
places. The COMELEC was obviously resided in the Philippines as least
referring to petitioners various places six months before he applies for
of residence and not her domicile. naturalization.

A minor follows the domicile of his 4. KINDS OF DOMICILE
parents it follows that in spite of the 1. Domicile of Origin Domicile at birth. The
fact of petitioner being born in Manila, domicile of a legitimate child is the
Tacloban, Leyte was her domicile of domicile of his father; the domicile of an
origin by the operation of law. illegitimate child is the domicile of his
mother.
TO LOSE SOMEONES DOMICILE 2. Domicile of Choice Also called the
1. There should be actual removal voluntary domicile is the place freely
from domicile. chosen by a person sui juris. There must
concurrence of 1) Physical presence and 2)

Page 33 of 62

Unqualified intention to make that place wife shall fix the family domicile. The
ones home. court may exempt one spouse from
3. Constructive Domicile By operation of living with the other if the latter should
law, a domicile is assigned to a person who live abroad or there are other valid and
is incapable of choosing his own domicile. compelling reasons for such
Among those included in the category are exemptions.
the minors, the mentally disabled and the
married women. Until now, there are no law nor
DOMICILE OF DOMICILE OF jurisprudence that establishes directly
ORIGIN CHOICE the right of the woman to establish her
Not lost by mere of Acquired upon the own domicile.
abandonment and presence of bona fide
remains until intention to make a DE LA VINA vs VILLAREAL AND
replaced by a place as a domicile GEOPANO
domicile of choice and of the physical HELD: Under the modern laws it is
presence thereto. clear that many exceptions to the
Once lost by intent, rule that the domicile of the wide is
domicile of origin is determined by that of her husband
revived. must obtain. Accordingly, the wife
may acquire another and separate
SPECIAL PROBLEMS IN DOMICILE OF domicile from that of her husband
CHOICE VIS--VIS CONSTRUCTIVE where the theoretical unity of the
DOMICILE husband and wife is dissolved, as it
1. People kept under physical or legal is by the institution of divorce
compulsion. proceedings; where the husband
An example is that an American man and wife has given cause for divorce.
under who now lives in the Philippines Or where there is a separation of
because of his assignment as a staff the parties by agreement, or a
sergeant in the United States Air Force permanent separation due to
his stay then being temporary is a desertion of the wide by the
non-resident alien who, pursuant to husband or attributable to cruel
the Civil Code cannot adopt. treatment on the part of the
husband; or where there has been
HOWEVER, a person under compulsion a forfeiture by the wide of the
shall not be barred from proving that benefit of the husbands domicile.
he has developed the required
unqualified intention to establish his ---O-o-O---
permanent abode in such place. If he
intends to remain after the compulsion
has been removed, such as separation
from the service, then such person will
be able to acquire the domicile of
choice.

2. Married women seeking to acquire a
separate domicile from their husband.
In the Philippine law, Art. 69 of the Civil
Code states that The husband and the

Page 34 of 62

PRINCIPLES OF PERSONAL uterine life of less than seven months, it is
not deemed born if it dies within 24 hours
STATUS AND CAPACITY after its complete delivery from the
maternal womb.
DEFINITION
Personal status is the general term that includes GELUZ vs GELUZ
both condition and capacity. HELD: Even if a cause of action did
accrue on behalf of the unborn child,
STATUS has no definite meaning since the modern the same was extinguished by its natal
law does not recognize absolute legal death, since no transmission to anyone
characteristics inherent in every person. can take place from one that lacked
juridical personality. As civil personality
CAPACITY more referred as juridical capacity is is commenced at birth and is
the fitness of a man to be the subject of legal extinguished by death.
relations while the capacity to act is the power to
do acts with juridical effects. LIMJOCO vs ESTATE OF FRAGANTE
HELD: Within the philosophy of the
CIVIL CAPACITY IS EQUALS TO present legal system, the underlying
JURIDICAL CAPACITY + CAPACITY TO ACT reason for the legal fiction by which, for
certain purposes, the estate of the
JURIDICAL CAPACITY CAPACITY TO ACT deceased person is considered a
person is the avoidance of injustice
The fitness to be the Is the power to do
resulting from the impossibility of
subject of legal acts with juridical
exercising such legal rights and fulfilling
relations effects
such legal obligations of the decedent
It is acquired upon Is acquired and may
as survived after his death unless the
birth and lost upon be lost
fiction is indulged.
death

Alien may be sued in our courts subject to the B. ABSENCE
Philippine procedural law even on matters The domestic laws of different countries do
relating to their status and capacity. However, not treat absentees alike and this has given
the law to be applied by our courts in rise to difficult problems in conflict of laws.
determining their status and capacity is their
personal law. HOW TO DEAL WITH ABSENCE:
Philippines laws follow rebuttable
presumption of the common law:
A. BEGINNING ANG END OF PERSONALITY

ART. 40 and 41 of the Civil Code.
Art. 390. After the absence of 7 YEARS, being
Art. 40: Birth determines personality; but
unknown whether or not the absentee still
the conceived child shall be considered
lives, he shall be presumed dead for all
born for all purposes that are favorable to
purposes, EXCEPT for those of succession.
it, provided it be born later with the

conditions specified in the following
The absentee shall not be presumed dead for
articles.
the purposes of opening succession till after an

absence of 10 years. If he disappeared after
Art. 41: For civil purposes, the fetus is
the age of 75 years, an absence of 5 years shall
considered born if it is alive at the it is
be sufficient in order that his succession may
completely delivered from the mothers
be opened.
womb. However, if the fetus had an intra-
Page 35 of 62

Art.391. The following shall be presumed INSULAR vs FRANK
dead for all purposes including division of HELD: The plaintiff being fully qualified
the estate among the heirs. to enter into the contract at the place
A. A person on board the vessel lost and time the contract was created
during a sea voyage, or an airplane cannot plead infancy as a defense at
which is missing, who has not been the place where the contract is being
heard of 4 years since the loss of enforced.
the vessel or airplane;
B. A person on board the armed ---O-o-O---
forces who has taken part in war,
and has been missing for 4 years;
C. A person who has been in danger of
death under other circumstances
and his existence has not been
known, for 4 years.

For purposes of remarriage under Art. 41
of the NCC, the periods in Art. 390 and
Art.391 were reduced to 4 and 2 years,
respectively.

C. NAME
A persons name is determined by law and
cannot be changed without judicial
intervention.

Case law shows that a person may change
his name on the following grounds:
1. When the name is, ridiculous or
tainted with dishonor or extremely
difficult to pronounce;
2. When the change is necessary to
avoid confusion;
3. When the name change is a
consequence of a status;
4. Sincere to adopt a Filipino name for
foreigners applying for
naturalization.

D. AGE OF MAJORITY
In the Philippines, the age of majority was
lowered down from 21 to 18 years old BUT for
purposes of marriage, parental consent is
required until the age of 21.

E. CAPACITY
A persons ability to act with legal effects is
governed by his personal law.
Page 36 of 62

CHOICE OF LAW PROBLEMS other as husband and wife in the presence
of not less than two witnesses of legal age.
FAMILY RELATIONS
ALL marriage solemnized outside the
MARRIAGE Is a special contract of permanent Philippines in accordance with the laws in
union between man and woman entered into in force in that foreign country where they
accordance with the law for the establishment of were solemnized as such, shall also be valid
conjugal and family life. It is the foundation of the in this country.
family and inviolable social institution whose
nature, consequences, and incidents are governed ADONG vs CHEONG SENG GEE
by law and not subject to stipulations, except that HELD: All marriages contracted
marriage settlements may fix the property without these Islands, which would be
relations during the marriage within the limits valid by the las of the country in which
provided by this code. the same were contracted are valid in
these islands.
Marriage is a special contract because:
1. It is entered between a man and a woman. It is first necessary to prove the courts
2. Both must be at least 18 years of age. of these islands the existence of the
3. Solemnized by a person specifically authorized foreign law as a question of fact, and it
by law. is then necessary to prove the alleged
4. Is a permanent union between a man and a foreign marriage by convincing
woman unless one of the parties dies, or the evidence.
marriage is annulled or declared void ab initio?
5. Cannot be abrogated, amended or terminated WONG WOO YU vs VIVO
by one or both of parties at will. Petitioner herein was married in China
6. The nature and consequences as well as which was solemnized by a village
incidents thereto are governed by law and not leader.
subject to stipulation by the parties unlike in
ordinary contracts. HELD: There was no proof which was
7. Violations of marital obligations may give rise presented that such married
to penal or civil sanctions while breach of the solemnized by a village leader in China
conditions of an ordinary contract can be was valid. Hence, this kind of marriage
ground for an action for damages. cannot be considered as valid in the
Philippines.
EXTRINSIC VALIDITY OF MARRIAGE
The determination of the extrinsic validity of In the absence of proof of foreign law
marriage is referred to as lex loci celebrationis country, it should be presumed that it is
or the law of the place of celebration. the same as our own.

FORMAL REQUIREMENTS: APT vs APT
1. Authority of the solemnizing officer. Marriage was held by proxy in
2. Valid marriage license except those Argentina. Such married was valid in
provided by the law. Argentina. Petitioner now comes to our
3. Marriage ceremony that takes place with court to declare the marriage as void
the appearance of the contracting parties ab initio for being contrary to the
before a solemnizing officer and their Philippines law.
personal declaration that they accept each
HELD: Petition is dismissed.

Page 37 of 62

THOUGH VALID IN A FOREIGN
IF the marriage is good by the COUNTRY CERTAIN MARRIAGES MAY
laws of the country where it BE VOID IN THE PHILIPPINES BY
was celebrated, then is good all REASON OF PUBLIC POLICY, AS
the world over. Hence, if the ENUMERATED IN ART. 38 OF THE NCC
marriage is not good at the AS FOLLOWS:
country where it was 1. Between collateral blood relatives,
celebrated, there is no legitimate or illegitimate;
marriage all the world over. 2. Between step-parents and step-
This is a proposition which is children;
too well fixed to need much 3. Between parents-in-law and
quotation. children-in-law;
4. Between the adopting parent and
EXCEPTIONS TO THE RULE OF LEX LOCI the adopted child;
CELEBRATIONIS AS PER THE CIVIL CODE: 5. Between the surviving spouse of
A MARRIAGE ALTHOUGH VALID IN THE the adopted child and the adopter;
FOREIGN COUNTRY IS VOID IN THE 6. Between the surviving spouse of
PHILIPPINES IF: the adopted child and the adopter.
1. Either or both parties are below 18 7. Between an adopted child and the
years of age. legitimate child of the adopter;
2. It is bigamous or polygamous. 8. Between the adopted children of
3. Subsequent marriage is performed the same adopter;
without recording in the Civil Registry 9. Between parties where one with
and Registry of Properties the the intention to marry the other,
judgment of annulment or declaration killed the other persons spouse or
of nullity of the first marriage, the his or her own spouse;
partition and distribution of the 10. Between first cousins only with
childrens presumptive legitimes Filipino nationals.
4. There was a mistake as to the identity
of the contracting party MARRIAGES CELEBRATED BY A CONSULAR
5. One of the parties is psychologically OFFICIAL:
incapacitated to comply with the 1. Marriages celebrated by a diplomatic
essential marital obligations. agent or consular official in accordance
6. The marriage is incestuous. with his state is valid as long as it is not
7. The marriage is void by reasons of prohibited by the state of celebration.
public policy. 2. In the Philippines, marriages
celebrated by the Philippine consul or
INTRINSIC VALIDITY OF MARRIAGE general consul or vice consul in which
Refers to the capacity of the general case the formal and intrinsic
ability of the person to marry, for requirements under the Philippine law
instances defined by requirements of age will have to be followed.
and parental consent. 3. REQUIREMENTS: valid marriage
1. The parties must be at least 18 years of license and due publication and
age. registration under the Philippine law
2. Consent freely given in the presence of will have to be complied with (between
an authorized solemnizing officer. a Filipino and Alien). Alien will have to
submit a certificate of legal capacity.


Page 38 of 62

EFFECTS OF MARRIAGE LEGAL SEPARATION: refers to the separation
PERSONAL RELATIONS BETWEEN THE from bed and board which does not affect the
SPOUSES dissolution of the marriage relationship by
If the spouses are of different relieving the spouse of the duty of living with
nationalities, the law of the each other.
husband prevails as long as it is not
contrary to law, customs and good The grounds for divorce are dictated by the
morals of the forum. LEX FORI. Hence, the state may refuse to
recognize the foreign ground for divorce unless
PROPERTY RELATIONS OF SPOUSES: it corresponds with a ground justified by the
HAGUE CONVENTION states that forum law.
the internal law designated by the
spouses before their marriage, in DIVORCE OBTAINED BY FILIPINOS
the ABSENCE thereof, the internal Absolute divorce obtained by the Filipinos
law of the state in which the abroad have no effect and is not
spouses have their first habitual recognized in the Philippines.
residence. A marriage between Filipino citizen and a
foreigner is susceptible to divorce if the
EXCEPT: divorce is validly obtained abroad by the
1. BOTH spouses are aliens. alien spouse capacitating him to remarry.
2. With respect to the extrinsic THE FILIPINO SPOUSE SHALL LIKEWISE
validity of contracts affecting HAVE THE CAPACITY TO REMARRY UNDER
property not situated in the THE PHILIPPINE LAW. The divorce shall be
Philippines. obtained by the alien spouse or the Art. 26
3. With respect to the extrinsic of the Civil Code to apply.
validity of the contracts
entered into the Philippines but TENCHAVEZ vs ESCAO
affecting property situated in HELD: It is clear from the records that
foreign country whose laws the marriage between Tenchavez and
require different formalities for Escao remained subsisting and
its intrinsic validity. undissolved under the Philippine Laws,
4. The property relations of the notwithstanding the absolute divorce
spouses where one is Filipino obtained by the respondent abroad.
and an Alien would still be The Philippines does not recognize
governed by the Philippine laws absolute divorce, while obtained by the
whether the Filipino is the Filipino spouses abroad.
husband or wife. If one of the
spouses changed his nationality VALIDITY OF DIVORCE BETWEEN FOREIGNERS
after their marriage, property Hague Convention recognizes the valid divorce
regime will still be governed by between two foreigners in all contracting
the Philippine laws in states. While there being no laws in the
accordance with the Principle Philippines to recognize the validity of the
of Immutability. divorce between foreigners, the Philippines
still recognizes it under the principle of
DIVORCE International Comity.
May be absolute or limited.
ABSOLUTE DIVORCE: is the termination of the
legal relationship between the spouses.
Page 39 of 62

ANNULMENT AND DECLARATION OF illegitimate children as on Art. 176 of the Family
NULLITY Code.
The grounds for annulment and declaration of
nullity of marriage is based on lex loci ADOPTION
celebrationis. Is defined as the act by which relations of paternity
and affiliation are recognized as legally existing
PARENTAL RELATIONS between persons not so related by nature.
In the Philippines, the legitimacy of the child is
governed by the national law of the parents. If the The process of adoption is a matter affecting the
parents of the child belong to different status of the parties and is necessarily governed by
nationalities, the legitimacy of the child is lex domicilii.
determined by the national law of the father.
In the Philippines, the question is whether or not
an alien may adopt Filipino children. As a general
ART.163 OF THE FAMILY CODE
rule, aliens are not allowed. The exceptions
The filiation of children may be by nature or by
enumerated in Art. 184 of the Family Code are
adoption. Natural filiation may be legitimate or
aliens who have some relationship with the
illegitimate.
adopted child by consanguinity or affinity.

Children conceived or born the marriage of the
Aliens who have resided in the Philippines for
parents are legitimate. Children conceived as a
at least three consecutive years prior to the
result of artificial insemination of the wide with
time of filing the application for adoption and
the sperm of the husband or that of the donor or
maintains the residency until the adoption
both are likewise legitimate children of the
decree is issued.
husband or wife, provided, that both of them
The law (RA8552) also requires the submission
authorized or ratified such insemination in a
of a certification from the aliens country
written instrument executed and signed by them
before the birth of the child. The instrument shall which attests to his legal capacity to adopt and
be recorded in the civil registry together with the that their state allows the entry of an adopted
birth certificate od the child. daughter or son.

These requirements may be waived when the
ART. 165 OF THE FAMILY CODE alien adopted are related to the adoptee by
Children conceived and born outside a valid
reasons of consanguinity or affinity.
marriage are illegitimate, unless otherwise

provided in this code.
Other aliens may adopt with RA8043 which

establishes the rules regulating the adoption
PARENTAL AUTHORITY OVER THE CHILD of Filipino children by aliens and Filipino
Personal law of the father controls the rights and citizens permanently residing abroad.
duties of parents and children, a principle
recognized by most countries. WHO CANNOT ADOPT:
ART.335 OF THE FAMILY Code only disqualifies
Reference to the personal law of the father may, from being adopters those aliens that are:
however, result in the joint exercise of parental 2. Non-residents of the Philippines
authority by the Father and the Mother as 3. Who are residents of the Philippines but
exemplified in Art. 211 of the Family Code. the Republic of the Philippines has broken
diplomatic relations with their government.
Likewise, the fathers personal law could grant the
parental authority to the mother of the
Page 40 of 62

EFFECTS OF ADOPTION
If the adopters personal law applied, then
it is the same which governs the effects of
the adoption; on the other hand, where
the personal law of the child determined
the creation of the legal relationship then
such law will cease to regulate the
resultant parent-child relations and yield
to the personal law of the adopting parents.

---O-o-O---


Page 41 of 62

CHOICE OF LAW IN PROPERTY CHEESMAN vs INTERMEDIATE APPELLATE
COURT

HELD: All property of the marriage belongs
A. THE CONTROLLING LAW exclusively to the conjugal partnership
Immovable property is regulated by the lex could not apply inasmuch as an alien is
situs or the law of the place where it is situated. concerned.

ART. 414 of the Civil Code defines property as The Constitution provides Saved in cases
follows: all things which are or may be the of hereditary succession, no private lands
object of appropriation are considered either: shall be transferred or conveyed except to
Immovable or real property individuals, corporations, or associations
Movable or personal property. qualified to acquire or hold lands of the
public domain.
ART. 16 of the same code states that real
property as well as personal property are C. EXTRINSIC AND INTRINSIC VALIDITY OF
subject of the law of the country where it is
situated
CONVEYANCES
The formalities of the contracts to convey

property are governed by lex situs.
MOVABLE PROPERTY

CHOSES IN ACTION refers to all the
Any transfer of the property which requires
intangible objects
the registration of the title cannot be accepted
Debts arising from loan
by the registry of property unless the formal
Debts represented by a document that
requirements of the lex situs are complied
is both capable of delivery and
with.
susceptible to negotiation as a

separate legal entity.
EXCEPTIONS TO LEX SITUS RULE
CHOSES IN POSSESSION refers to all the 1. Where the transaction does not affect the
tangible physical objects. transfer of title to or ownership of the land.
In this case, it is governed by lex
B. CAPACITY TO ACQUIRE OR TRANSFER intentionalis or lex voluntatis.
PROPERTY 2. In contracts where real property is offered
Is governed by the law of the place where the by way of a security for the performance of
property is situated. an obligation such as loan, the principal
contract is the loan while the mortgage of
LLANTINO vs CO LION CHONG the land is only an accessory. The mortgage
HELD: A lease to an alien of a real property of the land is governed by the lex situs,
is valid. So is an option giving the alien the while the loan is governed by the rules on
right to buy the real property on condition ordinary contracts.
that he is granted Philippine citizenship. 3. Testate or intestate succession and
capacity to succeed are governed by the
The Constitution prohibits the alien to national law of the decedent.
acquire real property except in cases of
hereditary succession and lease BUT it SITUS OF CERTAIN PROPERTIES
does not prohibit an alien who was granted 1. PERSONAL PROPERTY FOR TAX PURPOSES
Philippine citizenship to acquire real ASIATIC PETROLEUM vs CO QUICO
property under the same rights that a HELD: It is well emphasized in this
Filipino has. connection the general proposition
that all property within the State is
Page 42 of 62

subject to the jurisdiction of its courts, persons legally authorized to make the
and they have the right to adjudicate transfer x x x.
title thereto, to enforce liens
thereupon, and to subject it to the CIR vs ANGLO CALIFORNIA NATIONAL
payment of the debts of its owners BANK
whether residents or not. HELD: Gains, profit, and income
derived from the purchase of personal
2. MONEY property within and its sale without the
LEON vs MANUFACTURERS LIFE Philippines or from the purchase of
INSURANCE CORPORATION personal property without and its sale
HELD: The funds in question were within the Philippines shall be treated
outside the jurisdiction of the probate as derived entirely from sources
court of Manila. Having been endorsed within the country in which sold.
in an annuity in Canada under a
contract executed in that country, 5. TRADEMARK, PATENTS, TRADE NAMES,
Canada was the situs of the money. AND COPYRIGHT
Article 8 of the Union for Convention for
3. DEBT the Protection of Industrial Property,
HARRIS vs BALK states that trade name (corporation name)
HELD: Attachment is the creature of shall be protected in all the countries of the
law. If there be a law of the State Union without the obligation of filing of
providing for the attachment of the registration whether or not it forms part of
debt, then if the garnishee be found in the trade name.
that State, and process be personally
served upon him therein, we think the A trademark acknowledges no territorial
court thereby acquires jurisdiction over boundaries of municipalities or states or
him and can garnish the debt due from nations., but extends to every market
him to the debtor of the plaintiff and where the traders goods have become
condemn it, provided the garnishee known and identified by the use of the
could himself be sued by his creditor in mark.
that State.
PHILIPS EXPORT BV vs COURT OF APPEALS
NOTE: The situs of debts in the HELD: A corporations right to use its
Philippines is an issue that remains corporate and trade name is a property
unsettled in our jurisdiction. It is right, a right in rem, which it may
suggested that the law which governs assert and protect against the world in
the contract from which the debt the same manner as it may protect and
arises should also govern the transfer assert against the world in the same
of the debt. manner as it may protect its tangible
property, real or personal, against
4. CORPORATE SHARES OF STOCKS trespass or conversion.
The Corporation Code of the Philippine
provides that x x x Shares of stock so EMERALD GARMENT MANUFACTURING
issued are PERSONAL PROPERTY and may CORPORATION vs COURT OF APPEALS
be transferred by delivery of the HELD: The trademark should be
certificate or certificates indorsed by the considered as a whole and not a
owner or his attorney in fact or other piecemeal.


Page 43 of 62

A foreign corporation may have the
capacity to sue for infringement
irrespective of lack of business activity
in the Philippines in account of
Trademark Law.

---O-o-O---


Page 44 of 62

CHOICE OF LAW IN CONTRACTS contract was made, look into the place
where the last act is done which is

necessary to bring the binding agreement
CONTRACT is the meeting of the minds between
into being so far as the acts fo the parties
two people, whereby one binds himself, with
are concerned.
respect to the other, to give something or render

some service. It is perfected by mere consent of
2. LEX LOCI SOLUTIONIS
the parties.
The law of the place where the contract is

to be performed. Performance includes,
A. CONTRACT WITH FOREIGN ELEMENT the time, the place, and manner of
The law which the parties intended to apply performance, sufficiency fo performance,
also known as the lex loci intentionis. and valid excuses for nonperformance.

B. EXTRINSIC VALIDITY OF CONTRACTS This approach is not helpful when the
Is governed by the law where the contract was contract is to be performed in two or more
executed. A contract is valid as to form if in different states with conflicting laws on
accordance with any for recognized as valid by validity of contracts.
the law of the country where the contract was
made and that no contract is valid which is not MACMILLAN AND BLOEDEL vs TH
made in accordance with the local form. If the VALDERAMA AND SONS
contract does not conform with the HELD: A principal may authorize his
requirements of the lex loci celebrationis then agent in another state to enter into a
it does not come into existence. contract valid in that state, although
invalid under the law of the state in
Where the contract is made by parties from which the principal resides.
different places and by cablegram, faxes, the
contract is to be governed by the place where It is given as the general rule that when
the offer was made. a contract is to be performed at a place
other than where it was made, the
C. INTRINSIC VALIDITY OF CONTRACTS place of performance or execution will
Refers to the nature, content and effects of the govern with respect to the nature,
agreement. There must be concurrence of the validity and construction of the
elements of the contract. contract.
Consent of the parties
Object of the contract 3. LEX LOCI INTENTIONIS
Consideration That the intrinsic validity of the contract
should be governed by the law intended by
The commentators proposed three possible the parties or lex loci intentionis.
laws that would govern the intrinsic validity of The Civil Code provides that the
the contract. contracting parties may establish such
The law of the place of making; stipulations, clauses, terms and
The law of the place of performance; conditions as they may deem convenient
The law intended by the parties to provided they are not contrary to law,
apply. morals, good customs, public policy or
public order. In other words, parties may
1. LEX LOCI CONTRACTUS stipulate that the contract be governed by
The law of the place where the contract a specific law, such will be recognized
was made. To determine where the
Page 45 of 62

unless there are cogent reasons for not collection of sum of money, hence a
doing so. personal obligation.

D. CAPACITY TO ENTER INTO CONTRACTS HONG KONG AND SHANGHAI BANKING
Is governed by the rules and status and CORPORATION vs SHERMAN
capacity. The parties in this case stipulated that
We hereby agree that the courts of
In the countries which follow the nationality the Republic of Singapore shall have
law principle, the capacity to enter into a jurisdiction over all disputes arising
contract is governed by their national laws. In under this guarantee.
countries that follow the domiciliary law
theory, the law of their domicile shall govern. HELD: The choice of forum clause in the
contract did not expressly stipulate on
E. CHOICE OF LAW ISSUES IN CONFLICTS the court of only one state to the
exclusion of others.
CONTRACTS CASES

Under the freedom of contract principle,
NOTE: That the parties are pertaining
parties may stipulate on the law to govern
about the venue.
their contract agreement.

2. CONTRACTS WITH ARBITRATION CLAUSE
1. CHOICE OF FORUM CLAUSE
PUROMINES INC vs COURT OF APPEALS
COMPAGNE DE COMMERCE vs HAMBURG
HELD: The parties are nevertheless
AMERIKA
obligated to respect the arbitration
HELD: That a stipulation for a general
provisions on the sales contract and/
arbitration cannot be invoked to oust
bill of lading. Petitioner being a
our courts of their jurisdiction.
signatory and party to the sales

contract cannot escape from his
KING MAU vs SYCIP
obligation under the arbitration clause
HELD: The contention that as the
as stated therein.
contract was executed in New York, the

Court of First Instance has no
BREMEN, ET AL vs ZAPATA OFFSHORE
jurisdiction over the subject matter is
COMPANY
without merit, because a nonresident
The contract between the parties
may sue a resident in the courts of this
provided for the forum-selection
country where the defendant may be
clause stating that any dispute arising
summoned and his property leviable
must be treated before the London
upon execution in case of favorable,
Court of Justice.
final and executory judgment. It is a

personal action for the collection of
HELD: Arbitration contracts shall be
sum of money which the CFI has
valid, enforceable, and irrevocable.
jurisdiction.
Hence, in American courts, contracts

with arbitration clauses are no longer
It was not alleged and proved that the
considered offensive to the settled
compliance with the stipulation was a
public policy of the forum there being
condition precedent for the
nothing inherently wrong, immoral or
enforcement of the contract.
against natural justice in arbitration

agreements. This is the stance that the
NOTE: That this case does not present
Philippines take until the present.
a conflict of law since this is only for a
Page 46 of 62

Philippines, it does not operate to
3. ADHESION CONTRACTS exclude the enumeration of instances
Is one that is not negotiated by the parties, when a carrier may be held liable for
having been drafted by the dominant party breach of contract.
and usually embodied in a standardized
form. This is exemplified in the Bill of The unexplained cause of the damage
Lading, contracts of sale of land from real to respondents cargo constitutes
estate and airline tickets are some gross negligence on the part of the
examples. petitioner.

PAN AM WORLD AIRWAYS vs RAPADAS Hence the petitioner being able to
Rapadas checked in his luggage, a monopolize the business of air
Samsonite bag with personal shipping left the respondent without a
belongings but without having choice but to accept the contract of
declared the contents therein. adhesion ticket to ship the item.
Unfortunately, it never arrived in
Manila and the petitioner herein 4. SPECIAL CONTRACTS
offered to settle the matter for $160 Sales/ barter of goods = governed by
but the respondent refused and the law where the property sold is
claiming that it should be $42,403.90 located.
Simple loan granted by financial
HELD: There was no dispute that there institutions = governed by the law of
is a Notice appearing on the page 2 of permanent place of business.
the ticket stating that Warsaw Loan granted by private persons or the
Convention governs in case of death, subject matter of the loan is personal =
injury to a passenger or of loss, damage, the law of the place where the loan was
or destruction to a passengers luggage. obtained.
Plain ticket is a contract of adhesion Pledge, antichresis, chattel mortgage =
which was settled to be valid. extrinsic and intrinsic validity of the
contract by the law of the place where
Considering therefore that the the property is situated.
respondent failed to declare a higher
value for his luggage, he cannot be KLM ROYAL DUTCH AIRLINES vs CA
permitted to recovery in excess of Respondents went on world tour.
P100 They were issued by the KLM for
their entire trip. However, their
PHILIPPINE AIRLINES vs COURT OF coupon for Aer Lingus which would
APPEALS carry the from Barcelona, Spain to
Respondent herein shipped an oven Lourdes, France was marked RQ
via the petitioner. The oven arrived which meant on request.
broken and the cause of it was never
explained by the petitioner. Aer Lingus ousted the couple in an
Respondent demanded that she be inhumane manner. The couple
paid amounting to P30,000 to which used the train instead.
the petitioner opposed.
On arrival, they filed a complaint
HELD: While the Warsaw Convention against KLM which interposed
has the force and effect of law in the

Page 47 of 62

stating that it should be Aer Lingus c. The place of performance;
which has to be liable. d. The situs of the subject matter of the
contract;
HELD: The notice of KLM on the e. The domicile, residence, nationality, place
tickets is so small that a magnifying of incorporation and place of business of
glass has to be used to read the the parties;
same. There was a failure on the f. The place under whose local law the
part of the KLM to disclose to the contract will be most effective.
respondents the message of the
notice. G. LIMITATIONS TO THE CHOICE OF LAW
1. Parties may not contract away applicable
Hence, under the domestic law, the provisions of law especially peremptory
Philippines being the country of provisions heavily impressed with public
destination, the attendance of interest.
gross negligence (given the 2. The use of cognovit clause which is defined as
equivalence of fraud or bad faith) that the debtor may agree to be subject to the
holds the common carrier liable jurisdiction of a specific court or courts in case
for all damages which can be he breaches the contract or defaults in his
reasonably attributed, although payment. A cognovit clause usually waives the
unforeseen, to the non- debtors right to notice or authorized the entry
performance of the obligation, of judgment against him.
including moral and exemplary
damages. ---O-o-O---

ARTICLE 28 OF THE WARSAW
CONVENTION STATES THE VENUE
FOR FILING AN ACTION.
At the option the plaintiff, he may
file the action in any of the
following:

At the court of the place where the
business is domiciled.
a. At the court of the place of the
principal business.
b. The court of the place where
there is a place of business to
which the contract has been
made.
c. The court of the destination.

F. IN THE ABSENCE OF AN EFFECTIVE
CHOICE
In the absence of effective choice of law by the
parties, consideration will be given to the
following factors.
a. The place of contracting;
b. The place of negotiating of the contract;
Page 48 of 62

CHOICE OF LAW IN WILLS, execution of wills made in the
Philippines.
SUCCESSION AND
ADMINISTRATION OF ESTATES HELD: The Philippine laws allow the
probate by our courts of a will

made within the Philippines by a
A. EXTRINSIC VALIDITY OF WILL citizen of another country of which
If a Filipino makes a will abroad, he may the testator is a citizen of another
comply with the formalities prescribed under: country, when such will was
1. The Philippine law or executed in accordance with the
2. Those established by the law of the law of the country of which the
country where the will was executed. testator is a citizen and which
might be proved under the law of
A. EXTRINSIC VALIDITY OF JOINT WILLS such country.
Under the Civil Code, two or more
persons cannot make a will jointly or in
B. INTRINSIC VALIDITY OF WILLS
the same instrument, either for their
Governed by the national law of the decedent.
reciprocal benefit or for the benefit of a

third person.
ART. 16, PARAGRAPH 2 OF THE CIVIL CODE

However, intestate and testamentary
A joint will even valid abroad is void in
succession, both with respect to the order of
the Philippines BECAUSE
succession and to the amount of successional
A will is purely personal and
rights and to the intrinsic validity of
unilateral act;
testamentary provisions, shall be regulated by
Contrary to the revocable character
the national law fo the person whose
of the will; succession is under consideration, whatever
If mutual or reciprocal, may expose may be the nature of the property and
the testator to undue influence and regardless fo the country where said property
may even tempt one of the testators may be found.
to kill the other.
CAYETANO vs LEONIDAS
B. EXTRINSIC VALIDITY OF HOLOGRAPHIC The petitioner maintained that since the
WILLS respondent judge allowed the reprobate of
A holographic also called the Adoracions will, Hermogenes Campos was
autographic will is one which is entirely divested of his legitimes which was
hand written, dated and signed by the reserved by the law for him.
hand of the testator himself. Not
subject to any form, and need not be HELD: The law that governs the
witnessed or may be made in or out of Adoracions will is the law of Pennsylvania,
the Philippines. USA being an American citizen when she
died in the Philippines.
BABCOCK TEMPLETON vs RIDER
BABCOCK It is settled that as regards the intrinsic
A holographic will was submitted validity of the provisions of the will as
for probate but the instrument was provided for by Articles 16 (2) and 1039 of
of a testamentary character but the Civil Code the national law of the
was not executed under the decedent must apply.
provisions of law governing the

Page 49 of 62

C. INTERPRETATION OF WILLS the beneficiary, or some other person
Pursuant to the nationality principle in our Civil for his benefits;
Code, the interpretation of the will or e. If the signature of the testator was
testament shall be governed by the rules of procured by fraud or trick and he did
interpretation of the decedents national law. not intend that the instruments should
be his will at the time of fixing his
D. REVOCATION signature thereat.
A will is revocable any time before the testator
dies. F. ADMINISTRATION OF ESTATES
Consists of the duties to manage and settle the
A revocation done outside the Philippines by a decedents debts and distribute the residuum
foreign national is valid when done according of the estate to the deceaseds heirs.
to
a. The law of the place where the will was The title vested in the administrator does not
made (lex loci celebrationis) OR result from the voluntary act of the owner of
b. The law of the place where the testator the properties, the decedent, BUT form law
had his domicile at the time he made the and is for the PRIMARY PURPOSE of protecting
revocation (lex loci domicilii). the creditors and incidentally only for the
distribution of the estate amount next to the
c. A revocation done outside the Philippine kin.
by a Filipino the Philippine law or the law
of the place of revocation applies. The title of a domiciliary administrator is of no
d. A revocation done in the Philippines, the extraterritorial force and extends only or the
law of the Philippines. assets of a decedent found within the state or
country where it was granted.
E. PROBATE
Is an adjudication that a last will and testament TAYAG vs BENGUET CONSOLIDATION INC
made a person was executed with all the Idonah Perkins died leaving among others
formalities required by law. It does not pass 2 stock certificates shares of Benguet
upon the validity of the provisions of the will Consolidated Philippines Inc. The
except in cases where such invalidity is on the certificates were in the possession of
face of the instrument. County Trust Company of New York which
was the domiciliary administrator of the
It is the law of the forum that will apply since estate of the deceased.
the probate is a procedural matter.
Meanwhile, ancillary administration
RULE 70, SECTION 9 OF RULES OF COURT: proceedings in the CFI manila were
A will shall be disallowed in any of the instituted and the court appointed
following cases: Marquez as ancillary administrator which
a. Not executed and attested as required was substituted by herein petitioner. A
by law; dispute arose between the domiciliary and
b. If the testator was insane, otherwise ancillary administrators as to which of
incapable to make a will at the time of them was entitled to the possession of the
its execution; shares of stocks in question.
c. Was executed under duress, the
influence of fear, or threats; HELD: it is often necessary to have more
d. Was produced by undue and improper than one administration of an estate, when
pressure and influence on the part of a person dies intestate owning property in

Page 50 of 62

the country of his domicile as well as in a
foreign country, administration is had in
both countries. That which is granted in
the jurisdiction of decedents last domicile
is termed the principal administration
while any other administration is termed
as the ancillary administration. The reason
for the latter is because a grant of
administration does not ex proprio vigore
have any effect beyond the limits of the
country in which was granted.

Hence, ad administrator appointed in a
foreign state has no authority in the
Philippines. The ancillary administration is
proper, whenever a person dies, leaving in
a country other than that of his last
domicile, property to be administered in
the nature of assets of the deceased liable
for his individual debts or to be distributed
among his heirs.

The actual situs of the shares of stocks is
here in the Philippines, the corporation
being domiciled here.

G. TRUSTS
Is a right of property, real or personal, held by
one party for the benefit of another. It may be
created by deed during the lifetime if the
settler or by will.

When the trust contains provision for the
choice of law, the courts will apply that law. In
the absence thereof, the courts will apply the
law of the state where the trust is being
administered or the state the decedent was
domiciled.

The rules governing wills as to capacity and
extrinsic requirements apply. Since a trust
involves property, the rule of lex situs
determined the validity of a trust created by a
last will and testament.

---O-o-O---


Page 51 of 62

CHOICE OF LAW IN TORTS AND act should be determined by the law of the
state where is at the time he does such act.
CRIMES
LOUKS vs STANDARD OIL
The action is brought to recover damages
TORT is an act or omission producing an injury to
for injuries resulting in death. The plaintiffs
another without any previous existing lawful
are the administrators of the estate of
relation of which the act or omission may be said
Louks. Louks while travelling on highway in
to be a natural outgrowth or incident.
the state of Massachusetts, was run down

and killed through the negligence of the
A. POLICIES BEHIND CONFLICTS OF LAW defendants servants then engages in its
There are two important policies underlying business. He left his wife and two children
substantive residents of New York. That under the
To deter socially undesirable or wrongful Massachusetts law, a person who had an
conduct; accident by reasons of acts or omissions of
Rectify the consequences of the tortious another may claim for recovery. The
act by distributing the losses that result question is whether the statue may be
from accident and products liability. enforced in New York.

Conflict torts cases arise when the tortious HELD: Yes. A right of action is property. Of
conduct and place of resulting injury are a foreign statute gives the reason for
different and one state imposes higher refusing to help the plaintiff in getting
standards than the other state, also a source what belongs to him. We are not so
of problem is the difference in products provincial as to say that every solution of a
liability laws and varying judicial problem is wrong because we deal with it
interpretations of the extent liability. otherwise at home.

B. LEX LOCI DELICTI COMMISSI The court is not free to enforce a foreign
Is also called the law of the place where the right at the pleasure of the judges, to suit
alleged tort was committed which determines an individual notion of expediency or
the tort liability in matters affecting conduct fairness. They do not close their doors,
and safety. unless help would violate some
fundamental principle of justice, some
This sounds simple but the problem arises prevalent conception of good morals,
where the liability producing conduct happens some deep-rooted tradition of the
in one state but the injuries are sustained in common weal.
another.
There is nothing in the Massachusetts Law
The common law concept of place of wrong that offends nor violate the public policy of
looks to the place where the last event New York.
necessary to make an actor liable for an
alleged tort cases. C. MODERN THEORIES OF FOREIGN TORT
LIABILITY
The civil law countries view the situs of the tort 1. THE MOST SIGNIFICANT RELATIONSHIP
as the place where the tortious conduct was Considers the states contacts with the
committed. This is premised on the principle occurrence and the parties.
that the legality or the illegality of a persons

Page 52 of 62

In the Philippines conflict of tort law, the for damages alleged to have resulted
most significant development is the case of from the defendants illegal sale of
Saudi Arabia Airlines v Court of Appeals. liquor to Sorrensen, a minnow. As a
result, the latter has become
SAUDI ARABIA AIRLINES vs COURT OF intoxicated in defendants bar so that
APPEALS shortly thereafter, plaintiff sustained
The court used the most significant injuries when an automobile driven by
relationship. There is basis for the Sorrensen, in which the plaintiff was a
claim that overall injury occurred and passenger turned over near Prescott,
lodged in the Philippines. There is Wisconsin.
likewise no question that private
respondent is a resident Filipina HELD: All parties involved in this case
national, working with the petitioner are all residents of Minnesota.
which is a resident foreign corporation Defendant was licensed under its laws
engaged here in the business of and required to operate its
international air carriage. Thus the establishment in compliance therewith.
relationship between the parties was Its violation of the Minnesota statues
entered here, although it should be also occurred here; and its wrongful
stressed that this suit is not based on conduct was completed within
mere labor law violations. From the Minnesota when as a result thereof,
record, the claim that the Philippines Sorrensen became intoxicated before
has the most significant contact with leaving its establishment. The
the matter in the dispute, raised by consequential harm to the plaintiff, a
private respondent as plaintiff below Minnesota citizen, accordingly should
against defendant. be compensated for under MSA law
which furnishes him a remedy against
2. INTEREST ANALYSIS defendant for its wrongful acts.
There is a false conflict if only one state has
an interest in having its law applied and This case illustrates the imposition of
failure to apply the other states law would liability under a substantive rule of tort
not impair the policy reflected in that law. that has a strong underlying
If more than one state has an apparent admonitory policy.
interest in applying its law to the case there
is an apparent conflict. D. FOREIGN TORT CLAIMS
A tortious liability is transitory which means
3. CAVERS PRINCIPLE OF REFERENCE that the liability resulting from the conduct is
Cavers third principle of preference in deemed personal to the perpetrator of the
torts deals with rules that sanction some wrong following him wherever he may go.
kinds of conduct engaged in by a ERGO, an action for tort may be brought
defendant in one state and extends the wherever the tortfeasor is subject to suit.
benefit of this higher standard or conduct
and financial protection to the plaintiff 1. CONDITION FOR THE ENFORCEMENT
even if the state of injury does not create a. The foreign tort is based on civil action;
analogous liabilities. b. The foreign tort is not contrary to the
public policy of the forum;
SCHMIDT vs DRISCOLL HOTEL c. The judicial machinery of the forum is
Petitioner sued Driscoll Hotel doing adequate to satisfy the claim.
business in South St. Paul Minnesota,

Page 53 of 62

2. PRODUCT LIABILITY OF THE FOREIGN
MANUFACTURER There is a jurisprudence decided by the Supreme
If a person purchased a foreign-made product Court which involved a foreign element but was
that is fungible or non-fungible then he ingests resolved as a procedural matter rather than
or uses the product in an unaltered way and
conflict of law case.
in accordance with the manufacturers

instruction and suffers injury, he may bring a
products liability action against the TIME INC vs REYES, ET AL
manufacturer in his home state. Villegas and Enrile filed a complaint against
defendant Time, Inc., and Time-Life
International, publisher of Time Magazine, an
ASAHI METAL INDUSTRY CO vs American corporation with a principal address
SUPERIOR COURT OF CALIFORNIA in New York, seeking to recover from the latter
HELD: The interest of the plaintiff and damages upon an alleged libel arising from a
the forum in Californias assertion of publication of Time Magazine, in its issue on
jurisdiction over Asahi are slight. All August 18, 1967. It was alleged that the said
that remains is a claim for publication particularly referred to Mayor
indemnification asserted by Cheng Shin, Villegas as a case in point on graft and
a Taiwanese corporation, against Asahi. corruption and nepotism in Asia. It also
The transaction on which the referred to Enrile as the high government
indemnification claim is based and official who helped his compadre, Villegas
took place in Taiwan; Asahis borrow approximately P30,000 without
components were shipped from Japan interest.
to Taiwan. Cheng Shin has not
demonstrated that it is more Time filed a motion to dismissed on grounds of
convenient for it to litigate its venue contending that civil action in written
indemnification claim against Asahi in defamation is localized upon the basis whether
California rather than in Taiwan. the offended party or plaintiff is a public officer
whether his office is in Manila or not in Manila,
Because the fact of the case do not at the time of the commission of the offense.
establish the minimum contacts such If the offended party is a public officer within
that the exercise of personal office in Manila or in the city of province where
jurisdiction is consistent with fair play the libelous article is printed and first
and substantial justice, the judgment published.
of the Supreme Court of California is
reversed. HELD: The law intended that a libeled public
official must sue in the court of the locality
PHILIPPINE RULE ON FOREIGN TORTS where he holds office, in order that the
There is no specific statutory rule governing the prosecution of the action should interfere as
enforcement of claims for damages arising from little as possible with the discharge of his
foreign torts duties and labors. The only alternative allowed
by law is to prosecute those responsible for
It is suggested that the ENGLISH RULE may be the libel in the place where the offending
followed such that the tort committed abroad is article was printed and first published.
actionable in country where it was committed and
also under Philippine law. Under this rule, there The rule is that where a statute creates a right
will be no problem of choice of law because and provides a remedy for its enforcement,
Philippine law on torts will be applied wherever the remedy is exclusive and where it confers
the suit is brought. jurisdiction upon a particular court, that

Page 54 of 62

jurisdiction is likewise exclusive, unless the same time designates the state that has
otherwise provided. Hence the venue the jurisdiction to punish him.
provisions of RA4363 should be deemed
mandatory for the party bringing the action, EXCEPTIONS
unless the question of venue should be waived 1. Crimes committed by the state officials,
by the defendant, which was not the case here. diplomatic representatives and officials of
Only thus can be policy of the Ac be upheld and recognized international organizations.
maintained. Nor is there any reason why the The only remedy of the local state is to ask
inapplicability of one of alternative venue for his recall.
should result in rendering the other alternative 2. Crimes committed on board a foreign
also inapplicable. vessel even if it is within the territorial
waters of the coastal state. Philippine
Under the traditional rule of lex loci delicti courts do not acquire jurisdiction over
commissi, the tortious conduct took place in a offenders nor can Philippine laws apply as
foreign country, Philippine law is not the long as the effect of such crime do not
governing law. HOWEVER, under the most disturb our peace and order.
significant relations approach, the Supreme 3. Crimes, which although committed by
Court could have adopted Philippine law as Philippine Nationals abroad, are
controlling because of the significant links punishable under the ARTICLE 2 OF THE
between the forum and the parties. REVISED PENAL CODE:

E. DISTINGUISHING BETWEEN TORTS Except as provided in the treaties and
AND CRIMES low of preferential application, the
Torts is transitory in character and as such, provisions of this Code shall be
liability is deemed personal to the tortfeasor enforced not only within the Philippine
and makes him amenable to suit wherever Archipelago, including its atmosphere,
jurisdiction he may be found. its interior waters and maritime zone,
but also outside of its jurisdiction,
Crime is an affront against the sovereignty and against those who:
good order of the state within whose a. Should commit an offense while on
jurisdiction it occurs, each state must attend to Philippine ship or airship
the vindication of its own sovereignty. Lastly, b. Should forge or counterfeit any
penal laws are promulgated to punish and coin or currency note of the
reform the perpetrators and deter them and Philippine Islands or obligations
others from violating the law while torts law and securities issued by the
assign liability to the perpetrators in order to Government of the Philippine
indemnify the victim for injuries he sustained. Islands
c. Should be liable for acts connected
with the introduction into these
F. LEX LOCI DELICTI
Islands of the obligations and
The nullum crimen nulla poena sine lege
securities mentioned
principle requires that in order for a person to

be punished for an act, such act should have
---O-o-O---
been made punishable as a crime by law.

The law of the place where the crime was
committed determines the specific law by
which the criminals is to be penalized and at

Page 55 of 62

CHOICE OF LAW AFFECTING New York law, the right of a
stockholder to examine the books and
CORPORATIONS AND OTHER records of a corporation organized
JURIDICAL ENTITIES under the law of the state is limited by
Sec. 77 of the Stock Corporation Law
that only stockholders owning 3% of
A. CORPORATIONS the shares of any corporation other
Is an artificial being created by operation of than moneyed corporation may make a
law, having the right of succession and the written request for a statement of its
powers of succession, attributes and affairs.
properties expressly authorized by law or
incident to its existence. HELD: Grays contention must fall.
Since a corporation is an artificial being
A foreign corporation are those corporations created by law, it possesses only such
formed, organized and existing under the laws powers and rights as may be
of a state other than those of the Philippines; authorized by its charter or the law
such laws allowing Filipino citizens and creating it.
corporation to do business there.
In the case at bar it has been proven
It shall have the right to transact business in that the Stock Corporation Law of New
the Philippines after it shall have obtained York allows, upon written request, to
license in accordance with the Corporation view the records of transactions of the
Code and a certificate of authority from the corporation if he is an owner of 3%
appropriate government agency. capital stock of the corporation OR
such right is exercised in good faith for
1. PERSONAL LAW OF A CORPORATION a specific honest purpose and not to
The personal law of a corporation is the gratify curiosity, or for a speculative or
law of the State where it is incorporated. vexatious purposes which is not proved
by Gray.
Since it is an artificial being created by law,
it possesses only such powers and rights as BANK OF AUGUSTA vs EARLE
may be authorized by its charter or the law HELD: There are four basic theories
creating it. from this case here:
1. A corporation being a creature of
M.E. GRAY vs INSULAR LUMBER law, has no legal status beyond the
COMPANY bounds of the sovereignty creating
Defendant is a corporation organized it.
under the laws of New York and is 2. A corporation cannot exercise
licensed to engage in business in the powers not granted by its
Philippines. Gray is the owner and corporate charter or by the laws of
possessor of 57 shares of stock which is the state of incorporation.
less than 3% of the capital stock of a 3. No state is under any obligation to
corporation. adhere to the doctrine of comity.
4. A state is not obliged to grant to a
Gray asked the officers of Insular foreign corporation the privileges
Lumber to allow him to examine their and immunities common to the
books and records of the business but citizen of that state.
he was not allowed to do so. Under the

Page 56 of 62

2. EXCEPTIONS TO THE RULE OF be allowable as soon as an insured
INCORPORATION TEST becomes a public enemy.
A. CONSTITUTIONAL AND STATUTORY
RESTRICTIONS In Daimler Co vs Continental Tire
A state if it sees fit, may by legislation and Rubber Co., it was held that a
exclude a foreign corporation business corporation incorporated
altogether, subject to constitutional in England with a British Secretary,
limitations or prescribe any conditions but whose shares of stock were
It may see fit as prerequisite to the controlled by German nationals,
corporations right to do business was considered an enemy
within its territory. corporation and was therefore
prohibited from trading in England.
The president may enter into
agreement with foreign owned 3. DOMICILE RESIDENCE OF FOREIGN
corporations involving either technical CORPORATION
or financial assistance for large-scale Article 51 of the Civil Code of the
expiration, development, and Philippines reads:
utilization of minerals, petroleum, and
other mineral oils according to the When the law creating, or recognizing
general terms and conditions provided them, or any other provision does not fix
by law, based on real contributions to the domicile of juridical persons, the same
the economic growth and general shall be understood to be the place where
welfare of the country. their legal representation is established or
where they exercise their principal
B. CONTROL TEST DURING WAR functions.
In war time, the courts may pierce the
veil of corporate identify and look into The foreign corporation that has been
the nationality of the controlling granted license to operate in the
stockholders to determine the Philippines acquires domicile in the
citizenship of the corporation. Philippines.

FILIPINAS COMPAIA DE SEGUROS vs STATE INVESTMENT HOUSE, INC vs
CHRISTERN, HUENFELD & CO., INC. CITIBANK, NA
HELD: There is no question that The issue in this case is whether the
majority of the stockholders of the corporate creditors, The Bank of
respondent corporation were America, Citibank NA and Hong Kong
German subjects. This being the and Shanghai Banking who are
case, we have to rule that said corporations which have branches in
respondent became an enemy the Philippines, can be considered as
corporation upon the outbreak of resident and has the standing to
the war between the United States maintain an action against the
and Germany. petitioner corporation who is a
resident corporation of the Philippines.
The Philippine Insurance Law state
that anyone except a public enemy HELD: The assimilation of foreign
may insured. It stands to reason corporations authorized to do business
that an insurance policy ceases to in the Philippines to the status of
domestic corporation, subsumes their

Page 57 of 62

being found and operating as 5. RIGHT OF CORPORATIONS TO BRING SUIT
corporations, hence residing in the The acquisition by a foreign corporation of
country. a license to transact business in the
Philippines is an essential prerequisite for
4. JURISDICTION OVER FOREIGN filing a suit before our courts.
CORPORATIONS
The prevailing rule is that with the consent HOME INSURANCE COMPANY vs EASTERN
of the state, a foreign corporation shall be SHIPPING LINES
recognized and will be allowed to transact HELD: The lack of capacity at the time
business in any state which gives its of the execution of the contracts was
consent. cured by the subsequent registration of
the foreign corporation.
FOREIGN CORPORATIONS DOING
BUSINESS IN THE PHILIPPINES ARE 6. EXCEPTIONS TO THE LICENSE
BOUND BY OUR LAWS REQUIREMENT
Article 129 for the Corporation Code of the ISOLATED TRANSACTION is an isolated
Philippines mandates that all foreign business transaction as one which is
corporations lawfully doing business in the occasional, incidental, and casual, not of a
Philippines shall be bound by all laws, rules character to indicate a purpose to engage
and regulations applicable to domestic in the business.
corporations.
EASTBOARD NAVIGATION LTD vs JUAN
EXCEPTION: Those provisions for the YSMAEL AND COMPANY, INC
creation, formation, organization, or HELD: While the plaintiff is a foreign
dissolution of corporations or those which corporation without license to transact
fix the relations, liabilities, responsibilities, business in the Philippines, it does not
or duties of stockholders, members, follow that it has no capacity to bring
officers, of corporations to each other or to the present action. Such license is not
the corporation. necessary because it is not engaged in
business in the Philippines. The two
SERVICE UPON FOREIGN CORPORATION isolated transaction the plaintiff had do
DOING BUSINESS IN THE PHILIPPINES not constitute engaging business in the
(Rule 14, Section 14 of Rules of Courts). Philippines within the purview of
Service upon foreign corporations doing Sections 68 and 69 of the Corporation
business in the Philippines may be made Law.
on:
a. Its resident agent; ACTION TO PROTECT TRADEMARK,
b. In absence thereof, process will be GOODWILL, TRADENAME, OF FOR
served on the government official UNFAIR COMPETITION
designated by law or any of its officers A foreign corporation engaging in
or agent within the Philippines; OR business without license may file a
c. Any officer or agent of said corporation complaint for unfair competition
in the Philippines; since that is essentially a suit
d. Serving summons through diplomatic enjoying the unfair trader from
channels. pursuing the unlawful competition
and in order to allow the aggrieved
party to recover damages.


Page 58 of 62

In the case of Western Equipment license of a foreign corporation upon
and Supply Co vs Reyes, it was any of the following grounds:
made clear that the disability of the a. Failure to appoint and maintain a
foreign corporation from suing in resident agent in the Philippines as
the Philippines is limited to suits to required by the Title;
enforce any legal or contract rights b. Failure, after change of its resident
arising from, or growing out, of agent or of his address to submit to
any business which it has the SEC a statement of such change
transacted in the Philippines BUT as required by the Title.
NOT where the purpose of the suit c. Transacting business in the
is to protect its reputation, its Philippines outside of the purpose
corporate name, its goodwill it or purposes for which such
acquired through the natural corporation is authorized under its
development of trade. license;
d. Transacting business in the
Another, a case wherein a foreign Philippines as agent for or acting
corporation without a license to for and in behalf of any foreign
transact business in the Philippines corporation or entity not duly
is allowed to maintain an action is licensed to do business in the
for agreement it has fully Philippines;
transacted outside the Philippines. e. Any other grounds as would render
it unfit to transact business in the
7. DEFINITION AND SCOPE OF TRANSACTION Philippines.
BUSINESS
A corporation has to act and contract EFFECT OF FAILURE TO SECURE A
through its agent, in a state or country LICENSE TO TRANSACT BUSINESS
other than that in which it was created, The foreign corporation which does
with the express or implied consent of that business in the Philippines without
country or state. a license has no right to sue in the
Philippines, but can still be sued.
The Foreign Business Registration Act/RA Although the contracts entered
5455 of 1968 and the Foreign Investments into may be valid as between the
Act for 1991/ RA 7042 enumerate the acts parties, it may not be enforced in
that constitutes doing business. the Philippine courts.

Doing business serve as the basis for the GRANGER ASSOCIATES vs
courts exercise of adjudicatory jurisdiction MICROWAVE SYSTEMS, INC
over the corporations in the theory that HELD: It is now settled that
they are present in the state or have even one single transaction
consented to suit by making that state a may be construed as
major place for business. transacting business in the
Philippines under certain
REVOCATION OF LICENSE TO TRANSACT circumstances.
BUSINESS
According to the Section 134 of the That a single act may bring the
Corporation Code of the Philippines, corporation within the purview
the SEC mat suspend or revoke the of the statute where it is an act
of the ordinary business of the

Page 59 of 62

corporation. In such a case, the will consider whether the subsidiary
single act or transaction is not has its own records, assets,
merely incidental or casual, but advertising, employees, payroll, and
is of such character as distinctly accounting and whether its directors
to indicate a purpose on the and headquarters are different from
part of the foreign corporation those of the parent.
to do other business in the state,
and to make the state a base of In other words, the jurisdiction over
operations for the conduct of a the parent corporation can be acquired
part of the corporations when the separate existence of the
ordinary business. subsidiary has not been faithfully
maintained.
B. SPECIAL CORPORATIONS
1. RELIGIOUS SOCIETIES AND CORPORATION C. PARTNERSHIPS
SOLE Is formed by two or more persons who bind
According to the Supreme Court, the themselves to contribute money, property, or
requirement of at least 60% Filipino capital industry to a common fund with the intention
was never intended to apply to a of dividing the profits among themselves.
corporation sole because, unlike ordinary
corporation, the corporation sole is The Philippine internal law provides that if the
composed of one person usually the head domicile of the partnership is not identified by
or bishop of the diocese. The corporation the law creating it, it is deemed domiciled in
sole is only the administrator and not the the place where its legal reputation is
owner of the temporalities in the diocese. established.

2. TRANSNATIONAL CORPORATION Therefore, a partnership formed in one state
Are established under and governed by but conducts its main business in another state
each host countrys national laws. The may be considered domiciled in the latter.
personal law of the transnational is that of
the host country, the major decisions ---O-o-O---
regarding its operation and management
come from the parent corporation in the
industrialized state.

The main characteristic of a transnational
is that all the locally incorporated branches
are joined together by the common control
and management of higher officials in the
home state.

DERIVATE JURISDICTION OVER FOREIGN
CORPORATION
It was suggested that the jurisdiction
over the parent will exist if the parent
controls and dominates the subsidiary.
In determining whether the separate
corporate existence of the subsidiary
has been duly preserved, the courts

Page 60 of 62

FOREIGN JUDGMENTS binding on the parties and their privies after
the time for appeal has expired or if they lose

their appeal. Public policy dictates diminishing
A. DISTINCTION BETWEEN RECOGNITION the judicial energy invested in deciding
AND ENFORCEMENT individual suits, encouraging confidence in and
RECOGNITION is a passive act of giving effect deference to court decrees, and securing the
to a judgment of Forum-1 without necessarily legitimate expectation of the successful
filing an action in Forum-2. plaintiff or defendant that he will no longer be
EXAMPLE: A divorce was issued in Italy to harassed into protecting his interests.
an Italian gives him capacity to remarry.
D. REQUISITES FOR RECOGNITION OR
ENFORCEMENT is an active act that requires
ENFORCEMENT
the filing of an action in court.
1. The foreign judgment was rendered by a
EXAMPLE: An action of debt must be judicial or quasi-judicial tribunal which had
brought in Forum-2 in the Forum-1 jurisdiction over the parties and the case in the
judgment and a new judgment by Forum-2 proper judicial proceedings.
must be handed down before the plaintiff 2. The Judgment must be valid under the laws of
can have the properties of the defendant. the court that rendered it.
3. The judgment must be final and executory to
B. BASES OF RECOGNITION AND constitute res judicata in another action.
4. The state where the foreign judgment was
ENFORCEMENT OF FOREIGN obtained allows recognition or enforcement in
JUDGMENTS the Philippine judgments.
Recognition and enforcement of foreign 5. The judgment must be for fixed sum of money.
judgment are based also on obligation of 6. The foreign judgment was not be contrary to
foreign judgment judgments. This doctrine of the public policy or good morals of the country
obligation is derived from the rigid and where it is to be enforced.
unyielding vested rights theory. It considers a 7. The judgment must not have been obtained by
fraud, collusion, mistake of facts or mistake of
judgment of a foreign court of competent
law.
jurisdiction in imposing a duty or obligation on

the losing litigant. For example, if there is an
adjudication on the debt owing to the plaintiff, E. GROUNDS FOR NON-RECOGNITION
Forum-2 treats the Forum-1 judgment as
evidence of the debt which may be enforced in SECTION 4 OF THE UNIFORM MONEY
the Forum-2 by an action of debt. JUDGMENT RECOGNITION ACT OF THE US
READS:
A. A foreign judgment is not conclusive if:
C. POLICIES UNDERLYING RECOGNITION
1. The judgment was rendered under a
AND ENFORCEMENT system which does not provide
Many courts recognize and enforce judgment impartial tribunals or procedures
on ground of res judicata. Under this rule, all compatible with the requirements of
those who have contested an issue shall be due process of law;
bound by the result of the contest and that 2. The foreign court did not have personal
matters once tried and decided with finality in jurisdiction over the defendants;
one jurisdiction shall be considered settled as 3. The foreign court did not have
between the parties. jurisdiction over subject matter;

Once a court has rendered judgment in a case,
the issued which were therein litigated or
which could have been litigated become
Page 61 of 62

B. A foreign judgment need not be
recognized if:
1. The defendant in the proceedings in
the foreign court did not receive notice
of the proceedings in sufficient time to
enable him to defend;
2. The judgment was obtained by fraud;
3. The cause of action or claim for relief
on which judgment is based is
repugnant to the public policy of this
state;
4. The foreign judgment conflicts with
another final and conclusive judgment;
5. The proceeding in the foreign country
was contrary to an agreement between
the parties under which the dispute in
question settled otherwise than the
proceeding in that court;
6. In the case of jurisdiction based only on
personal service, the foreign court was
a seriously inconvenient forum for trial
of the action.

The first three grounds are mandatory
and the last three discretionary.

---- END ---


Page 62 of 62

Notes On Conflict of Laws PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Notes On Conflict of Laws PDF

Uploaded by

Copyright:

Available Formats

CONFLICT

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

Conflict of Laws: Coquia

You might also like