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Definition: Every sovereign state is bound to respect the independence of every other sovereign
state, and the courts of one country will not sit in judgment on the acts of the government of
another, done within its own territory.
Underhill vs Hernandez
There was a decision no. 346 issued by the currency stabilization fund which prevented
Americans and other foreign investors from receiving any other currency except Cuban peso.
The plaintiff, Hazel French, was the assignee, of Alexander Ritter who invested $350,000 in a
Cuban farm. Since there was a refusal to pay in American Dollars, he filed a case for breach of
contract before the US court. The Court held by applying the act of state doctrine because it
was issued by the CURRENCY STABILIZATION FUND, which is an official instrumentality of
the Cuban government.
Definition: It refers to the courts jurisdiction over the thing or property which is the subject
matter of the action.
Engracio Palanca mortgaged several parcels of land to El banco espanol. Thereafter, he returned
to China where he died. The bank moved to foreclose such properties after publication in a
newspaper in the City of Manila. Sale by public auction was held and the bank emerged as
highest bidder.7 years after confirmation, Vicente Palanca, administrator, moved to set aside the
order because the court did no acquire jurisdiction over the defendant. The Court held that ,since
it involves an action to foreclose a mortgage, such action is quasi in rem wherein jurisdiction
over the person is not necessary.
Dizon vs Perkins
Eugene Perkins filed an action against Benguet Mining company for dividends of his shares of
stock. Payment was withheld because of conflicting claims between Eugene, Idonah and
Engelhard. The complaint was permitted to be amended to implead the Idonah and Engelhard.
Thereafter, Summons by publication were served upon the two. It was ruled that the court
acquired jurisdiction over the non-resident defendants by virtue of such publication, since the
action involved herein is an action quasi in rem.
Travellers Health association vs Virginia
The state corporation commission ordered an association located in Nebraska, and engaged in
mail order health insurance business, to cease and desist from further sales of certificates of
insurance until the association complies by furnishing information as to its financial condition.
Notice was served thru registered mail. Thereafter, they moved to quash such service contending
that service thru registered mail did not meet the due process requirements. The court ruled in
favor of the appellant that notice via registered mail did not satisfy due process requirements
because the commission order attempts to destroy or impair their right to make contracts in
Nebraska.