Académique Documents
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CAPACITY
BASIC PRINCIPLES
ART 37 NCC
Juridical capacity, which is the fitness to be the subject of
legal relations, is inherent in every natural person and is lost
only through death. Capacity to act, which is the power to
do acts with legal effect, is acquired and may be lost.
RECTO v. HARDEN
FACTS: H engaged the services of R, as counsel in her suit
against her husband for support and for preservation of her
rights in the conjugal partnership in contemplation of a
divorce suit. However, the spouses entered into a
compromise agreement to defeat the claim of R in
attorneys fees. H moved to dismiss on the ground of
invalidity of the contract of service because divorce is
contrary to Phil law.
HELD: R should be paid his fees. H spouses are US citizens
and their status and the dissolution thereof are governed by
the laws of the United States, which sanction divorce.
Therefore, contract is not contrary to public policy.
CONCEPT OF PERSONALITY
ART 40 NCC
Birth determines personality; but the conceived child shall
be considered born for all purposes that are favorable to it,
provided it be born later with the conditions specified in the
following Art
ART 41 NCC
For civil purposes, the fetus is considered born if it is alive at
the time it is completely delivered from the mother's womb.
However, if the fetus had an intra-uterine life of less than
seven months, it is not deemed born if it dies within twentyfour hours after its complete delivery from the maternal
womb.
ART 42 NCC
Civil personality is extinguished by death.
The effect of death upon the rights and obligations of the
deceased is determined by law, by contract and by will.
GELUZ v. CA
SC did not allow for recovery of damages for the injury and
death of a conceived child which is still in the mothers
womb. Art 40 cannot be invoked since it expressly limits the
provisional personality by imposing the condition that the
child should be subsequently born alive.
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ABSENCE
PRESUMPTIVE DEATH UNDER THE CIVIL CODE
Art 390. After an absence of seven years, it being unknown
whether or not the absentee still lives, he shall be presumed
dead for all purposes, except for those of succession.
NAME
AGE OF MAJORITY
APT v. APT
FACTS: The marriage of the Apts (both Germans) was
celebrated in Argentina by proxy. The wife, a domiciliary of
England, filed a petition for the nullification of their marriage
on the ground that proxy marriages are not valid in England.
It is, however, valid in Argentina.
HELD: The marriage is valid. The English law on marriage is
locus regis actum. If a marriage is good by the laws of the
country where it is effected, it is good all the world over, no
matter whether the proceeding or ceremony which
constituted marriage according to the law of the place would
or would not constitute marriage in the country of domicile
of one or other of the spouses. Since the marriage was
performed in Buenos Aires and in accordance with its laws,
and since proxy marriage is only a form of the ceremony
and not an essential requisite, the marriage should be
upheld.
Art 26. of the Family Code: All marriages solemnized outside
the Philippines, in accordance with the laws in force in the
country where they were solemnized, and valid there as
such, shall also be valid in this country, except those
prohibited under:
(1) Art 35 (1) marriage between minors even with
consent of parents
(2) Art 35(4) bigamous or polygamous marriages
(except those under Art 41)
(3) Art 35 (5) contracted with mistake as to the identity
of the contracting party
(4) Art 35 (6) subsequent marriage without registering
decree of nullity of former marriage with the civil
registry
(5) Art 36 psychological incapacity
(6) Art 37 and Art 38 - incestuous marriages
Art 3. The formal requisites of marriage are:
(1) Authority of the solemnizing officer;
(2) A valid marriage license except in the cases provided
for by law; and
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Capacity to marry
Consent
Public policy of the State
Incestuous marriages
o Marriage between 1st cousins = against public
policy
o In other countries = acceptable
o Canon law allows 1st cousins to marry upon
securing dispensation to marry
Hague Convention on the Validity of Marriages allows
a contracting State to refuse recognition of a
marriage if:
o One spouse was already married
o Spouses are related to one another by blood or
adoption
o Had not obtained the minimum age or acquired
the necessary dispensation
o Lack of mental capacity
o Did not freely consent to the marriage
SOTTOMAYOR V. DE BARROS
FACTS: Sottomayor and de Barros are both Portuguese and
first cousins. Under Portuguese law they are incapable of
contracting marriage. They were married in London.
Sottomayor filed a petition to have the marriage declared
invalid.
HELD: The marriage is invalid. The law of a country where
marriage is solemnized must decide all questions relating to
the validity of the ceremony by which the marriage is
alleged to have been constituted; but as regards questions
on personal capacity, it must depend on the law of the
domicile, and if the laws of any country prohibit its subjects
within certain degrees of consanguinity from contracting
marriage and treats such as incestuous, this imposes on the
subjects a personal incapacity which continues to affect
them so long as they are domiciled in said country and
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IN RE MAYS ESTATE
FACTS: Fannie is Sams niece by half-blood; they are both
Jewish and NY residents. NY prohibits marriage between
uncle and niece, so they went to Rhode Island, where such
marriage is also prohibited except where the parties are
Jewish (the Jewish faith allow such marriages). After the
ceremony they went back to NY to live there.
Art 80 FC
In the absence of a contrary stipulation in a marriage
settlement, the property relations of the spouses shall be
governed by Philippine laws, regardless of the place of the
celebration of the marriage and their residence.
This rule shall not apply:
(1) Where both spouses are aliens;
(2) With respect to the extrinsic validity of contracts
affecting property not situated in the Philippines and
executed in the country where the property is
located; and
(3) With respect to the extrinsic validity of contracts
entered into in the Philippines but affecting property
situated in a foreign country whose laws require
different formalities for its extrinsic validity.
EFFECTS OF MARRIAGE
DJUMANTAN v. DOMINGO
Right of an alien spouse of a Filipino to permanently reside
in the Philippines lies not in the fact of marriage but in
compliance with immigration laws
VALIDITY OF
FOREIGNERS
FOREIGN
to
have
divorce
decree
PARENTAL RELATIONS
DIVORCE
BETWEEN
BEUMER v. AMORES
The Court had already denied a claim for reimbursement of
the value of purchased parcels of Philippine land instituted
Legitimacy
o Depends on the personal law of the father
Family Code Arts 163 to 165
Restatement Second:
Section 287
o Local law of the state where either (a) the parent
was domiciled when the childs status of
legitimacy is claimed to have been created or (b)
where the child was domiciled when the parent
acknowledge the child
Section 288 incidents of legitimacy created under
foreign law will be determined under same principles
as Section 287
Parental Authority
o Patria potestas personal law of the father
controls the rights and duties of parents and their
children
o Includes care and rearing of children, custody,
discipline and chastisement
ADOPTION
CAPACITY TO TRANSFER
LLANTINO V. CO LIONG CHONG
FACTS: The Llantinos leased real property to Chong, a
Chinese national (but subsequently naturalized as a Filipino),
for 60 years. The Llantinos filed an action to quiet title,
claiming that the lease contract was invalid for
circumventing the constitutional prohibition on the
acquisition of land by aliens.
HELD: The lease contract was valid, and Chong had the right
to hold by lease the property involved although at the time
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LILJEDAHL v. GLASSGOW
SITUS OF PROPERTIES
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HARRIS v. BALK
FACTS: Harris and Balk are both North Carolina domiciliaries.
Harris owed Balk a sum of money. When he was in Baltimore
he was served a writ of garnishment, it appearing that Balk
has a debtor there. He paid pursuant to the writ, but when
he returned to N. Carolina, Balk sued him for recovery of his
indebtedness. Harris pleaded the recovery of the Maryland
judgment.
HELD: The attachment of Harris debt is valid, and the North
Carolina court should give credit to the Maryland judgment.
The obligation of the debtor to pay his debt clings to and
accompanies him wherever he goes. He is as much bound to
pay his debt in a foreign state when therein sued upon his
obligation by his creditor, as he was in the state where the
debt was contracted.
Prof. Beale: this decision did injustice to the creditor, as he
has no power to fix the personal presence of his debtor at
one place or another. It is unjust to submit the creditors
claim to the accident of the debtors presence in one state
or another.
HSBC v. SHERMAN
FACTS: HSBC granted Eastern Book Supply an overdraft
secured by the directors of the latter. Eastern failed to pay.
HSBC filed suit in RTC. The defense of the directors is that
Phil courts have no jurisdiction because in the Guarantee
Agreement, it was provided that Singapore shall have
jurisdiction over all disputes arising therein.
HELD: Phil courts have jurisdiction. The parties did not
stipulate that only the courts of Singapore, to the exclusion
of all the rest, has jurisdiction. Neither did the clause in
question operate to divest Phil. courts of jurisdiction.
Jurisdiction is defined as the right of a State to exercise
authority over persons and things within its boundaries
subject to certain exceptions. This authority is exclusive
within and throughout the domain of the State.
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ARBITRATION CLAUSES
PUROMINES, INC. v. CA
FACTS: Puromines and Philip Bros. entered into a contract of
sale with an arbitration clause. Puromines filed for complaint
in RTC, Manila. Philip Bros. filed a MTD on the basis of an
arbitration clause.
HELD: Arbitration clause is valid. Puromines derives its right
from the bill of lading together with the sales contract & it is
bound by the provisions and terms of the bill of lading and
of the arbitration clause incorporated in the sales contract.
The courts will look with favor upon such amicable
settlements (arbitration) and will only interfere with great
reluctance to anticipate or nullify the action of the arbitrator.
THE BREMEN ET AL v. ZAPATA OFF SHORE COMPANY
FACTS: Zapata, a Houston company, entered into a contract
of towage with Unterweser, a German corp. Contract
contained a forum selection clause which provides that any
dispute arising must be treated before London courts.
Zapata filed a suit in admiralty against Unterweser for
breach of contract and damages in Florida District Court.
Unterweser filed motion to dismiss for lack of jurisdiction
citing the forum-selection clause.
HELD: Florida court has no jurisdiction. As a rule, a forum
clause should control absent a strong showing that it should
be set aside. Court should enforce the forum clause
specifically unless Zapata could clearly show that
a. enforcement would be unreasonable and unjust or
b. that the clause was invalid for such reasons as fraud
or overreaching or
c. if enforcement would contravene a strong public
policy of the forum in which suit is brought, whether
declared by a statute or by judicial decision or
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Warsaw Convention
In most cases decided by the Philippine SC involving
a carriers employees negligence, bad faith or
improper conduct, the Court refused to apply the
Warsaw Convention.
LOPEZ v. PAN AM
FACTS: Despite several confirmations, Sen. Lopez and his
family failed to get 1st class seats and were constrained to
board as tourist passengers of PanAm. CFI, Rizal awarded
KLM v. CA
FACTS: Mendozas went on a world tour. KLM issued the tickets
for the whole trip. Their coupon for Aer Lingus was marked RQ.
Thru KLMs help, reservations were made in the Aer Lingus
flight. Upon arrival, only the minors were allowed to board.
Mendoza sued for breach of contract and for damages bec. of
the humiliation they suffered. KLM denied liability on the basis
of Art. 30 of the Warsaw Convention (successive carriers
liability)
HELD: Art. 30 does not apply and KLM should be accountable
for the tortious act of Aer Lingus.Art. 30 presupposes either an
accident or delay and not the situation in CAB. Although the
tickets provide that KLMs liability for damages is limited to
occurrences in its own airlines, this provision was printed in
very small letters such that a magnifying glass is needed to
read it. It would be unfair to charge Mendozas of automatic
knowledge and it is the duty of KLM to inform them of the
conditions prescribed in the tickets or at least make sure that
they read them before they accepted the tickets. This it failed
to do.
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Place of destination
OTHER ISSUES
o
o
IN RE ESTATE OF JOHNSON
This interpretation is erroneous because the full phrase
another state or country, means that the section refers to
either a State in the US or another country. The admission of
the will to probate by the CFI of Manila under Section 636
was therefore correct. Although the CFI Of Manila most likely
erred in taking judicial notice of Illinois law when it
promulgated that the will was executed in conformity with
the laws of Illinois, Ebba is now precluded to raise this issue
because the petition to annul the probate did not allege the
difference between Philippine Law and Illinois law
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INTERPRETATION OF WILLS
CAYETANO v. LEONIDAS
FACTS: Upon the death of Adoracion Campos, her father
Hermogenes sought to be declared as owner of the entire
estate as the only compulsory heir. On the other hand,
Nenita Paguia (one of Adoracions sisters) sought the
reprobate of the will executed by Adoracion in the US. When
the trial court allowed probate of the will in the Philippines,
Hermogenes raised in issue that the allowance of the will to
probate divested him of his legitime, because the will
preterited him.
REVOCATION
Article 829 of the Civil Code
A revocation done outside the Philippines, by a person who
does not have his domicile in this country, is valid when it is
done according to the law of the place where the will was
made, or according to the law of the place in which the
testator had his domicile at the time; and if the revocation
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PROBATE
SUNTAY v. SUNTAY
FACTS: Natividad Billian sought to have the will (executed in
the Philippines) of his husband Jose Suntay probated. The
trial court denied probate because during the course of the
proceedings, the will was lost. Later, her son Silvino filed a
petition for the probate of a will allegedly executed by
Suntay in China. The trial court again denied probate, and
was correct in deciding that way, because there was no
proof that:
1. the municipal district court of Amoy, China, is a
probate court
2. there was a law of China on procedure in the probate
or allowance of wills
3. the legal requirements for the execution of a valid
will in China in 1931 were satisfied
4. the order of the municipal district court of Amoy
purports to probate the will
HELD: In the absence of proof that the municipal district
court of Amoy is a probate court and on the Chinese law of
procedure in probate matters, it may be presumed that the
proceedings in the matter of probating or allowing a will in
the Chinese courts are the same as those provided for in our
laws on the subject. Because of this, rules on notice must be
ADMINISTRATION OF ESTATES
TRUSTS
MODERN THEORIES
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PRODUCT LIABILITY
GUINTO v. MARCOS
FACTS: Guinto and Suarez filed an action for damages
against Marcos in California under the Alien Tort Claims Act.
According to Guinto, Marcos act of seizing their film 100
Days in September violated their freedom of speech.
HELD: Test to determine when a violation of the law of
nations has occurred there has been a violation by one or
more individuals of those standards, rules or customs a)
affecting the relationship between states or between an
individual and a foreign state, and b) used by those states
for their common good and/or dealings inter se. A violation
of the First Amendment right of free speech does not rise to
the level of such universally recognized rights as to
constitute a violation of the law of nations.
The Alien Tort Statute justifies exercise of court JD over
completely foreign tort cases because of the universal evil
exemplified by human rights violations. This is so even
though there are no significant contacts between the courts
and the parties and events nor substantial state interest in
the case other than a general desire for compliance with
customary international law. That is why in order for the
Alien Tort Act to apply, there is a need to establish that the
TIME v. REYES
FACTS: Villegas and Enrile filed a complaint for damages
against Time, Inc. upon an alleged libel arising from a
publication of Time Magazine. Plaintiffs filed their action in
CFI Rizal. But according to the applicable law, they may file
the action only in the place of first publication or in the City
of Manila (since they are public officers).
HELD: The case should be dismissed for improper venue.
The only alternative allowed to the public official is to
prosecute in the place where the offending article was
printed and first published; but in the CAB the alternative
was not open to plaintiffs since the offending publication
was not printed in the Philippines.
In Time, Inc., if the court had not characterized the issue as
jurisdictional, and decided the case from a conflicts tort
perspective, it could have taken cognizance of the case
following the most significant relations approach because of
the significant links between the forum and the parties.
DIFFERENCE BETWEEN LIABILITY FOR A TORT AND FOR A
CRIME
TORT
CRIME
Liability is
transitory
and
personal
and may
be
prosecute
d where
the
offender
Liability is
territorial
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may be
found
Injury is
to the
State
Purpose
of an
action is
to
indemnify
victim
Purpose
of the
action is
to punish
and
reform
Place of incorporation
ME GRAY v. INSULAR LUMBER COMPANY
FACTS: Gray, a stockholder of Insular (incorporated in NY)
filed an action in CFI to compel Insular to allow him to
examine its books. Sec. 77 of NY Stock Corp Law only gives
the right to stockholders owning 3% of the capital stock of
the company. Gray does not own the required shares.
HELD: Gray is not entitled to the right to examine the books
of Insular. Gray is bound by the NY law which only gives him
the right to receive from the treasurer of the corporation a
statement of affairs covering a particular account of all its
assets and liabilities. Neither can his rights be granted under
common law absent a showing that:
a. he seeks information for an honest purpose or to
protect his interest as stockholder
b. he exercises right in good faith and for a specific and
honest purpose not merely to satisfy curiosity or for
speculative or vexatious purposes.
Right of shareholder to inspect books of a foreign
corporation licensed to do business in the Philippines is
governed by foreign law
BANK OF AUGUSTA v. EARLE
FACTS: Bank of A (incorporated in Georgia), thru MGran
bought bills from Earle in Alabama. Bills were unpaid so
Bank sued Earle. TC ruled that the Georgian Bank could not
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DOMICILE
OR
CORPORATIONS
RESIDENCE
OF
FOREIGN
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ISOLATED TRANSACTIONS
ACTION TO PROTECT INTELECTUAL PROPERTY
AGREEMENTS FULLY TRANSACTED OUTSIDE THE
PHILIPPINES (e.g. marine insurance policies issued by
foreign insurer on cargo shipped by Philippine carrier)
ACTION IS ONLY A COROLLARY DEFENSE TO A SUIT
AGAINST IT
CIR v. JAL
FACTS: JAL was assessed deficiency income tax by CIR for
the sales of its ticketing agent (PAL) in the Phils. JAL opposed
and claimed that as a non-resident foreign corp. it can only
be taxed on income from Phil sources.
HELD: JAL is a resident foreign corporation under the Tax
Code. For a foreign corporation to be regarded as doing
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SPECIAL CORPORATIONS
PARTNERSHIPS
REMEDIAL LAW
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ARCILLA v. TEODORO
The certification of non-forum shopping executed in
a foreign country is not covered by Section 24, Rule 132
Rules of Court. The required certification of an officer in the
Foreign Service under Section 24 refers only to the
documents enumerated in Section 19(a). Had the Court
intended to include notarial documents, it should not have
specified only the documents referred to under paragraph
(a) of Section 19.
To be admissible for any purpose in Philippine courts, foreign
public documents must be certified by any officer of the
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