CONFLICT OF LAWS NOTES

PRINCIPLES AND DOCTRINES

Extraterritoriality
-

General rule: Philippine laws have no extraterritorial effects in another country.

Reason: One sovereign country is independent of another.
Exceptions:
When our law provides respect to other countries with respect to its citizens and
nationals
When our country enters into a treaty with another country.
Congressional legislations adopting foreign law to municipal law of the land.
Extraterritorial application of a foreign law allowed when the country gives consent
(implied or expressed).
Exception: When the foreign law is against public policy and order.

Foreign Elements
consist of the following as subject matter:
nationality or citizenship
personal status
property
points of contacts include:
place of contracting
place of negotiation of contract
place of performance
location of subject matter of the contract
domicile, residence, place of incorporation, nationality and place of business of
parties.
f.
If the place of negotiating the contract and the place of performance are in the same
state, the local law of this state shall apply.
a.
b.
c.
a.
b.
c.
d.
e.

Renvoi
-

the court in resorting foreign law adopts rules of foreign country as to conflict of law
which rule may refer back to the law of the forum. (Aznar vs Garcia, 7 SCRA 95)
Borrowing Doctrine
- Philippines may adopt foreign procedural law under the Borrowing
Statute such as Sec. 48 of the Civil Procedure Rule stating if by the laws of the State

or country where the cause of action arose the action is barred, it is also barred in
the Philippines. (CADALIN vs POEA ADMINISTRATOR, 238 SCRA 721)

Doctrine Processual Presumption

- foreign law must be properly pleaded and proved as a fact. If not pleaded, the
court will presume that the foreign law is the same as our local or domestic or internal
law. (BANK OF AMERICA vs AMERICAN REALTY CO., 321 SCRA 659)
- In a conflict between a Philippine law and a foreign law, Philippine law
prevails
-

General Rule: foreign documents, before they can be admitted as evidence in

Philippine courts, must be duly authenticated.

Written laws may be evidenced by an official publication or a copy attested by an

officer with the legal custody of the record or his deputy. (Secretary of an embassy,
consul general, consul, vice consul, consular agent or officer of a foreign service of
the Philippines stationed in a foreign country in which the record is kept and
authenticated by the seal of his office). As provided for by Sections 24 & 25 of Rule
132 of the Rules of Court.

Exception to the Rule: a foreign law may be proved in open court by the testimony
of an active law practitioner familiar with the foreign law and quoting the specific foreign
law involved. (Manufacturers Hanover Trust Co. vs Guerrero).

Rules of authentication as provided in Sections 24 & 25 of Rule 132 DO NOT

APPLY IN ADMINISTRATIVE PROCEEDINGS IN ADMINISTRATIVE TRIBUNALS.

Rules on ELECTRONIC EVIDENCE may be availed of in the presentation of

evidence in conflicts of law.

Law of Significant Relationship aka Center of Gravity Doctrine aka Grouping of

Contacts
- choice of law problems in conflicts of law are resolved by application of law of
the jurisdiction which has the most significant relationship or contact with the events and
parties to the litigation and issues.
Kilberg Doctrine
-

When the rule involves PROCEDURAL, the law of the forum is not bound by the
country where the place of injury or wrongful act arose.

If the action is filed in Philippine court, the court will adopt its own Rules on
Procedure.

Doctrine of Characterization or Doctrine of Qualification

-

court determines the character of the action filed in court in order to determine which
law would be applicable (choice of law to apply) when trying the case.

Analysis of the factual situation, event or operative fact to determine the POINT OF
CONTACT or CONNECTING FACTOR (such as situs of the res, place of
celebration, place of performance, and place of delict or wrong doing.
PRINCIPLES ON PERSONAL LAW IN CONFLICTS OF LAWS:
1.

Domiciliary Rule
law of the domicile of the person is the determining factor

2.

Nationality Rule

the law of the nationality and citizenship of the person determines his personal law.

What the Philippine follows

Two Remedies in Conflicts of Law:

1.

Enforcement of rights that accrued in a foreign country, completely or partly, in

the form of actions filed in the Philippines by the aggrieved party;

2.

Recognition and enforcement of a foreign judgment in the form of petition or

complaint to enforce such foreign judgment in the Phil. courts.

Source of Conflict of Laws:
1. Primary Sources
- Constitution
- Rules and regulations by administrative tribunals
- Statutes
- Judicial ruling by the Supreme Court
2. Secondary Sources (merely persuasive in effect)
- Decisions of foreign courts
- Treatises
- Commentaries and studies of well-known authors
When case involves no foreign element but involves local laws with conflicting
applicability, court will resolve by:
1.

Reconcile the local laws involved

2.

If cannot be reconciled, consider the most recent statute to have repealed the

older one.
3.

Except one law from the operation of the other and from the basis thereof decide

the case.
* When interpreting the application of law in such case, there is always the presumption
that the laws are enacted to bring justice and equity therefore the court must decide to
this effect.

3 Ways to Deal with Conflict of Laws cases:

1.

Court may deny due to the following grounds: lack of jurisdiction or

invoke FORUM NON CONVENIENCE (it is more convenient to try a case in a different
forum).
2.

Hear the case and apply the local law. (exercise of states sovereign

prerogatives)
3.

Hear the case and apply special rules to promote international system to do

justice to the parties. (hear the case and apply foreign law).
REAL PROPERTY
-

real property and personal property is subject to the law of the country it is situated.
INTESTATE AND TESTAMENTARY SUCCESSION

regulated by the nationality of a person whose succession is in consideration.

CONTRACTS

the law of the place of execution of contract, wills and other public documents that
governs its forms and solemnities is applied.
CORPORATIONS
- governs by the law of the country where the corporation is created or
incorporated.

Contractual Agreement of parties as to venue

-

Agreement of parties as to venue of litigation in the contract is merely

permissive UNLESS it is clearly stipulated in the agreement that the chosen venue
is EXCLUSIVE using qualifying or restricting words to the exclusion of other venue
other than the one agreed. (HSBC v Sheman, 176 SCRA 331).

Rationale: parties cannot stipulate the jurisdiction of the court over the subject matter
because it is fixed by law or the Constitution.

Applicable foreign law to resolve conflicts of laws in the absence of a local law
directing the court to apply a foreign law or in the absence of a valid agreement
between parties on what rule to govern in case of dispute:
1. Substance vs Procedural Principle
-

General rule: All procedural rules shall follow the law of the forum where the case
is filed.Substantive laws shall be governed by the law of the country where the cause
of action arose.
2. Center of Gravity Doctrine

apply the Most Significant Relationship Theory (law of the state which has the
most significant relationship with the occurrence and with the parties determines their
rights and liabilities in tort or in contract); or

Grouping of Contacts Principles (for torts and contracts) as applied in Saudi

Arabian Airlines (SAUDIA) v CA 297 SCRA 469.

What are taken into account:

a.

place where the injury occurred

b.

place where the conduct causing the injury occurred

c.

domicile, residence, nationality, place of incorporation, place of business

of parties
d.

place where the relationship if any between parties is centered

3. Renvoi
-

the court in resorting foreign law adopts rules of foreign country as to conflict of law
which rule may refer back to the law of the forum. (Aznar vs Garcia, 7 SCRA 95)
4. Lex Fori
- the law of the forum or the court

- Lex loci law of jurisdiction in which relief is sought to control to all matters
that are remedial or procedural.
- German Rule of elective occurrence the place of tort is whenever an
essential part of the tort has been committed and the injured person may choose to sue
in either of the places which to him is the most advantageous to his claim.
- Cavers Principle court applies general principles to arrive at a just solution
by accommodating conflicting policies and affording fair treatment of the parties caught
in the conflict between state policies.
Court faced with conflicts of laws has to decide the same by applying:
First the written laws
Second the customs of the place
Third judicial decisions
Fourth general principles of law
Fifth principles of justice, reason and equity
5. Grouping of Contacts
6. Place of the most significant relations
PERSONAL LAW

CITIZENSHIP AND NATIONALITY

CIVIL CODE PROVISIONS:
Article 15. Law relating to family rights and duties, status, condition and legal capacity
of persons are binding upon citizens of the Philippines.
Article 16. Intestate and testamentary succession with respect to successional rights
and order of succession and intrinsic validity of testamentary provision shall be
regarded by the national law of the person whose succession is under consideration.