COURSE OUTLINE IN CONFLICTS OF LAW

By: Atty. Enrique V. dela Cruz, Jr.

CONFLICTS OF LAW
B. Definition
By: Atty. Enrique V. dela Cruz, Jr. 1

Second Edition of Jurisprudence: private international law is that

part of the law of each state or nation which determines whether,
PART ONE: INTRODUCTION in dealing with a legal situation, the law of some other state or
nation will be recognized, given effect or applied.

I. Scope and Conflict of Laws: Nature, Definition and Importance

Distinguished from Public International Law and other disciplines:

A. Diversity of Laws, Customs and Practices

Public International Law Private International Law
PRIL: that part of municipal law which covers cases with a foreign
element. Principally governs Principally governs
states in their individuals in their
Hilton vs. Guyot relationships amongst private transactions
(1895) themselves which involves a foreign
FACTS: Defendants were sued in France, and the French court element
rendered judgment against them. Plaintiffs sued defendants on As to sources of law:
the French judgment in the US. The US court held the French Codified in Art. 38 of the Generally derived from
judgment conclusive. Statute of International the internal law of each
Court of Justice state and not from any
international law
HELD: No law has any effect, of its own force, beyond the limits
extraneous to municipal
of the sovereignty form which its authority is derived. The
law
extent to which the law of one nation, as put in force within its
As to persons involved:
territory xxx shall be allowed to operate within the dominion of
Governs only states and Governs individuals or
another nation, depends upon xxx the comity of nations.
internationally- corporations
recognized
Comity of nations is the recognition which one nation allows organizations
within its territory to the legislative, executive or judicial acts of As to transactions:
another nation, having due regard both to international duty Involves state-to-state or Relates to private
and convenience, and to the rights of its own citizens or of government-to- transactions between
other persons who are under the protection of its laws. government matters individuals
As to remedies:
The reasonable, if not necessary conclusion appears to us to be In case of violation, a All the remedies are
that judgments rendered in France, or in any other foreign state may resort to provided by municipal
country, by the laws of which our own judgments are 1) diplomatic protest laws of the state, such as
reviewable upon the merits, are not entitled to full credit and 2) peaceful means of resort to courts or
conclusive effect when sued upon in this country, but are prima settlement (diplomatic administrative tribunals
facie evidence only of the justice of the plaintiff s claim. negotiations, arbitration
or conciliation)
1
Atty. Dela Cruz is an MCLE lecturer and a Bar Reviewer at the Jurist 3) adjudication by filing
Bar Review Center and the Cosmopolitan Review Center. He teaches a case before
law at UST, FEU and the Bulacan State University. He obtained his international tribunals
Master of Laws (with Distinction) from the London Metropolitan
University, and a Postgraduate Diploma in International Trade Law 4) use force short of war,
from the University College London (UCL), U.K., both as a Chevening or eventually go to war
scholar of the British government. He completed a Postgraduate
Fellowship on Leadership and International Relations from the John
F. Kennedy School of Government, Harvard University, USA. He also
holds a Masters in Public Management degree from the Ateneo C. Object, Function and Scope
School of Government. He obtained his Bachelor of Laws degree
(with honors) and an AB Legal Management degree (cum laude) from Object and Function of Conflict of Laws: to provide rational and
the University of Santo Tomas as a Rector s Scholar. He is on his 3rd
term as an elected Councilor of Baliuag, Bulacan and the current Vice- valid rules or guidelines in deciding cases where the parties, events
President (Luzon) of the Philippine Councilors League. He is also a or transactions are linked to more than one JD.
Partner at the Ponce Enrile Reyes & Manalastas (PECABAR) Law
Office in Makati City.

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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Conflict of law rules aim to promote stability and uniformity of
solutions provided by the laws and courts of each state called
upon to decide conflicts cases.
Scope: covers the entire range of laws as it cuts across the subjects
of JD of local courts or tribunals, the law on evidence or proof of
foreign law, the personal law of individuals and juridical entities,
naturalization law, laws on domicile and residence, family relations,
contracts, torts, crimes, corporation law and property law.
3 Issues in Conflict of Laws:
1) Issue of adjudicatory JD: determines the circumstances that allow
for a legal order to impose upon its judiciary the task of deciding
multi-state and multinational disputes
2) Issue of choice-of-law: refers to the probable sources from
which the applicable law of the controversy may be derived
3) Recognition and enforcement of foreign judgments: study of
situations which justify recognition by the forum court of a
judgment rendered by a foreign court or the enforcement of such
within the forum
II. A Brief History and Development of Conflict of Laws
A. Roman Law
Ius gentium
In PIL, it means the law of nations
It is used in the early Roman empire to mean the body of
rules developed by the praetor peregrinus to resolve disputes
between foreigners or between foreigners and Roman citizens
It includes Greek legal doctrines and concept of bona
fides as ius civile only applies t Roman citizens
Italian City States
The rise of this city states prompted intensive study of
conflict of laws
- Bartolus: Father of Conflict of Laws; formulated Theory of
Statutes
Because Northern Italy was divided into several city states
each having their own laws on private matters, the Statute
was applied to problems of choice of law.
Statute is classified into:
a. real applied to immovable property within the
state
b. personal followed the person even outside the
domicile and governed questions on personal
status, capacity and movables
c. mixed contracts, if entered into by the different
nationals
16th century, France
2
Charles Dumoulin advocated a method to determine what
law would govern contracts between different nationals
Bertrand D Argentre formulated the principle of universal
succession followed in the Spanish Civil Code and adopted in
the Phil. Civil Code
Netherlands
Ulrich Huber first used the term, conflict of laws
Dutch jurists asserted that State has no obligation to apply a
foreign law unless imposed by treaty, by comitas gentium or
on consideration of courtesy and expediency.
Dutch jurists led by Huber developed territorial principle
where the laws of every state may operate only within its
territorial limit but such sovereign state may recognize that a
law, which operated in the country of its origin, shall retain
force everywhere provided that it will not prejudice its
subjects.
Comitas Gentium was readily accepted because of increasing
international transactions.
Ius Commune, applied by Italian and French jurists, was a
supranational law based on Roman law and which became
the continental European common law.
Nations codified their national laws which included conflict of
laws provisions.
Ex. French Civil Code of 1804
- became the pattern for Civil Codes of Spain,
Belgium and Romania
- nationality law principle (contained in Art. 15 of our
CC) was provided in Art. 3 of the French Code
19th Century
Justice Joseph Story relied on the European continental
theorists concept of territorial sovereignty and founded
conflict of laws on the principle of comity of nations.
Frederich Carl Von Savigny
- founder of modern private IL
-application of foreign law was not
due to comity but the resultant
benefits for everyone concerned
- advocated situs theory (seat of
legal relationship): every element
of transaction be governed by the
law of the place with which said
element has the most substantive
connection
Pascuale Mancini
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

- advanced nationality theory in matters concerning status,

capacity and private interests of the individual 1. Roman code codified principles of ius gentium.
2. Code of Napoleon contained specific rule on personal law
B. Modern Developments of individual, this was followed by several codes
(Netherlands, Romania, Italy, Portugal, Spain)
Neo-Statutists 3. The German civil Code contained many provisions on
- followed Italian theory: when 2 or more independent Conflict of Laws.
laws are applicable to a Conflict problem, the method so 4. Switzerland also enacted Laws on cases involving foreign
devised determines what law shall prevail elements.
Internationalists 5. Greece enacted a Civil Code with CL rules which became a
- there should be a single body of rules that can solve model in other countries
problems involving a foreign element 6. The Code of Bustamante (in South America) was patterned
Territorialists after the Code of Napoleon
- law of the State applies to persons and things within the
State, therefore, no foreign law is applied.
- Branch: only rights vested or acquired under foreign law Conflict Laws of the Philippines
are recognized in the forum but not foreign law itself
1969 Spanish Civil Code was enforced in the Philippines on December 7,
- 2nd Restatement of Conflict of Laws, adopted by 1889 until the Philippine Civil Code s effectivity on August 30, 1950
American Law Institute under Prof. William Reese, which contained the provisions on conflict of laws of the earlier
proposed that in the absence of statutory law, law to be code.
applied in Conflict case, is the law of the most significant
relationship. Spain s Code of Commerce, having some provisions on foreign
transactions, were also enforced in the Philippines on Dec 1, 1888.
Conflict of Laws in the Philippines
One basic source of law is the 1987 Constitution which contains
Spanish Civil Code enforced in the Philippines until 1950 contained principles on nationality and comity.
the principles adopted from the French Civil Code (Code of
Napoleon) particularly the nationality law principle. Art 16, par. 1, Special statutes were also enacted to govern cases with foreign
which applies lex situs rule was adopted from Art. 10 of Spanish CC elements, to wit:
while par. 2 represents the system of universal succession. Art. 17,
par. 1 follows lex loci contractus. But there was no significant 1. Corporation Code
jurisprudence on the subject. 2. General Banking Act
3. Foreign Currency System Act
Conflict of Laws was included in law curriculum by UP College of 4. Phil Foreign Law Guarantee Corp
Law in 1911 (no less!). Until 1950s, law teachers predominantly used 5. Retail Business Regulation Act
foreign law books and decisions by American courts. 6. Anti-Dummy Law
7. Nationalization of Rice and Corn Industry Act
In the Bar, it used to be a separate subject along with PIL but when 8. Insurance Code
it was revised, PIL was included in Pol Law while PRIL was merged 9. IP Code
with Civil Law. But, this does not mean that PRIL is a part of civil 10. Patent Law
law as this mindview tends to limit the perspective and scope of 11. Trademark Law
analysis required for conflicts problems. 12. COGSA
13. Salvage Law
Now, more problems in Conflict have arisen esp. with Filipinos 14. Public Service Act
engaging in foreign business transactions, and in international air 15. Civil Aeronautics Act
transport and foreign tort claims and labor contracts for OFWs. 16. Phil Overseas Shipping Act
17. Investment Incentives Act
18. Export Incentives Act
III. Sources of Conflict of Laws 19. RA 7722

A. Codes and Statutes

B. Treaties and International Conventions
Conflict of Laws (CL) originated in continental Europe was most
laws were codified. The Philippines has entered into a number of treaties and
international conventions which deal with private international law
Primary sources of law are found in the civil codes of different since it became a Republic.
countries:

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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

Some of these treaties/conventions are:

PART TWO: JURISDICTION AND CHOICE OF LAW
1. Convention on Intl Civil Aviation,
2. Warsaw Convention,
3. Convention on Offenses Committed on Board Aircraft IV. Jurisdiction
4. Convention on the Suppression of Unlawful
5. Acts against Civil Aviation Jurisdiction may mean either a) judicial or b) legislative jurisdiction.
6. UN Convention COGSA (This part talks of judicial jurisdiction)
7. Convention on Consent to Marriage, etc
8. Convention on Traffic of Persons Judicial JD the power or authority of a court to try a case, render
9. Convention on Elimination of Discrimination against Women judgment and execute it in accordance with law.
10. Convention on Political Rights of Women
11. IC on the Suppression of Traffic of Women and Children Legislative JD the ability of the state to promulgate laws and
12. Convention on World Intellectual Property Organization enforce them on all persons and property within its territory.
13. Berne Convention on Protection of Literary and Artistic Works
14. Paris Convention on Protection of Industrial Property.
4 Major Questions in Analyzing a Conflict of Laws Problem:
Although many Hague Conventions on Private International Law
were concluded since 1951, which dealt with issues on: 1) Has the court JD over the person of the defendant or
Personal status over his property?
Patrimonial family status
Patrimonial status such as agency and trusts 2) Has the court JD over the subject matter
The Philippines is a signatory to the Convention on Recognition of ( competency )?
Foreign Judgment on Civil and Commercial Matters and has
ratified the 1993 Convention in Respect of Inter-Country Adoption 3) Has the suit been brought in the proper venue in cases
only. where a foreign element is involved?

4) Is there a statute or doctrine under which a court

C. Treatises, Commentaries and Studies of Learned otherwise qualified to try the case may or may not refuse
Societies to entertain it?

In interpreting statutes and codes involving CL, courts resort to

works of distinguished jurists and studies of learned societies.
A. Basis of Exercise of Judicial Jurisdiction

Distinguished writers in continental Europe include Huber Manreas,

Bases of Judicial Jurisdiction (3 groups):
Savigny (whose work was translated into English by Guthrie), and
Weiss.
1) JD over the person (based on forum-defendant contacts)
Distinguished American and English writers, on the other hand,
2) JD over the res (based on forum-property contacts)
include Beale, Cavers, Cheatham, Currie, Ehrenzweig, Goodrich,
Gussbaum, Story, Wharton, Cheshire, Graveson.
3) JD over the subject matter
The American Law Institute published 2 studies on CL: Restatement
of the Conflict of Laws and a Second Restatement with William
1. Jurisdiction over the Person
Reese as Reporter.
This is acquired by the voluntary appearance of a party and his
submission to authority.
D. Judicial decisions

Over the person of the plaintiff: acquired the moment he invokes

Decisions of courts are the most important source of CL rules and
the aid of the court by filing a suit.
form the main bulk of source of conflict rules.

Over the person of the defendant: acquired when he enters his

According to Graveson: This branch of law is more completely
appearance or is served with the legal process within the state.
judge-made than almost any other. In its application, judges have
to deal with All Manner of People more than any other branch.
When he or his lawyer appears in court, he gives consent to the
The claim of justice for right as a basis for conflict of laws is
forum s exercise of JD over him, except where the appearance is
supported not only by the terms of the judicial oath but by judicial
for the purpose of protesting the JD over him.
dicta in judgments .

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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

A non-resident plaintiff who files a suit is deemed to consent to the b) the institution of legal proceedings wherein the
court s exercise of JD over subsequent proceedings arising out of court s power over the property is recognized and
his original cause of action (counterclaims). made effective

JD over the defendant may be had by personal or substituted This kind of JD is referred to as in rem JD; the situs could bind the
service of summons. world and not just the interest of specific persons.

Basis of exercise of JD: the presence of the property within the

Gemperle vs. Schenker territorial JD of the forum.
(1967)
FACTS: Paul Schenker (Swiss citizen and resident) filed a Quasi in rem JD: affects only the interests of particular persons in
complaint against Gemperle through his wife Helen Schenker, that thing (ex. Quieting of title). (actions against a person in respect
for enforcement of subscription to shares of stock. Gemperle of the res)
filed a suit against Paul for damages, saying that Paul caused
In these 2 proceedings, all that due process requires is that the
allegations to be published attacking his reputation and
defendant be given adequate notice and opportunity to be heard
bringing him into public hatred and discredit as a businessman.
(which are both met by service of summons by publication).
Schenker s defense: court has no JD over the person of Paul.

HELD: Jurisdiction was acquired by the lower court over the

Pennoyer vs. Neff
person of Paul through service of summons addressed to him
(1878)
upon Helen, it appearing from the answer that she is the
FACTS: Neff, a California resident, owned land in Oregon which
representative and attorney-in-fact of her husband in the civil
was sold under a Sheriff s deed to satisfy a money judgment
case.
against him. The service of summons was made by publication.
He is suing for recovery of said land, alleging that the sale was
invalid for lack of JD of the Oregon court over him.
Jurisdiction:
1) over the person
HELD: Substituted services by publication, or in any other
a) voluntary appearance
authorized form, may be sufficient to inform parties of the
b) submission to authority
object of the proceedings taken where property is once
rule: in substituted service, the premise is that the defendant is brought under the control of the court by seizure or some
within the territorial JD of the court equivalent act to any proceedings authorized by law upon such
seizure for its condemnation and sale.
exception: Gemperle case because Helen is legally authorized to
file a case in behalf of Paul, she is also authorized to receive But where the entire object of the action is to determine the
summons personal rights and obligations of defendants, that is, where
the suit is merely in personam, constructive service in this form
2) over the property upon a non-resident is ineffectual for any purpose.
a) in rem the situs could bind the world
b) quasi in rem
The important thing to prove is what kind of action is involved (to
basis of JD: presence of the property within the territory determine sufficiency of form of service to be used)

3) over the subject-matter - WON the court has

competence to hear the case and render judgment; the International Shoe Co. vs. Washington
court s JD must be properly invoked (provided for by (1945)
statute) FACTS: The state of Washington sued International Shoe Co. (a
_______________ Delaware corporation with principal place of business in
Missouri) to collect the tax laid upon the exercise of the
2. Jurisdiction over the Property privilege of employing salesmen within the state. International
Shoe s defense is that its activities within the state, consisting
JD over the property results from:
merely of exhibiting samples and soliciting orders and nothing
more, were not sufficient to manifest its presence there;
a) seizure of the property under a legal process
hence the state courts had no JD over it.

HELD: The SC of Washington has JD over International Shoe.

Due process requires only that in order to subject a defendant
5
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
to a judgment in personam, if he be not present within the
territory of the forum, he should have certain minimum
contacts with it, such that the maintenance of the suit does not
offend traditional notions of fair play and substantial justice.
(Minimum contacts so that the suit will not offend traditional
notions of fair play and substantial justice.)
The demands of due process regarding the corporation s
presence may be met by such contacts of the corporation
with the state of the forum as to make it reasonable xxx to
require the corporation with defend the particular suit which is
brought there.
Its presence can be manifested only by such activities
carried on in its behalf by those who are authorized to act for
it.
Mullane vs. Central Hanover Bank & Trust Co.
(1950)
FACTS: In an action for judicial settlement of accounts of
Central Hanover Bank as trustee of a common trust fund, some
of the beneficiaries who are non-residents of NY were notified
only by publication in a local newspaper.
HELD: When notice is a person s due, process which is a mere
gesture is NOT due process. The means employed must be
such as one desirous of actually informing the absentee might
reasonably adopt to accomplish it. Within the limits of
practicability, notice must be such as is reasonably calculated to
reach interested parties.
In Mullane, the manner notice was given should reasonably result
in informing the affected partner; when conditions do not allow
such notice, the form chosen should not substantially be less
likely to bring home notice than other of the feasible and
customary substitutes.
Shaffer vs. Heitner
(1977)
FACTS: Heitner, a non-resident of Delaware with 1 share of
stock in the Delaware corporation Greyhound, sued Greyhound
and its officers for allegedly violating its duties. Pursuant to the
case, Heitner filed a motion for sequestration of the
defendants stocks in Greyhound. The stocks, while not
physically present in Delaware, are considered to be there in
view of it being the place of incorporation.
HELD: The Delaware court cannot exercise JD just because the
stocks are statutorily present in Delaware. The property (stocks)
is not the subject matter of the litigation nor is the underlying
cause of action related to the property. Also, the facts in CAB
6
does not demonstrate that defendants have purposefully
availed themselves of the privilege of conducting activities
within the forum state in a way that would justify bringing them
before a Delaware court.
In Shaffer, the minimum contacts and fundamental fairness test
should be satisfied regardless of whether the proceedings are in
rem, quasi in rem or in personam.
Traditional basis for the exercise of judicial JD is the state s
physical power over persons and property within its territory; this is
why in in rem proceedings, it can exercise JD over property
situated in the state regardless of whether it could otherwise
exercise JD over the persons whose interest would be affected by
the decision.
In the US, there is a shifting trend from theory of territorial power
to considerations of minimum contacts and fundamental fairness.
This approach demands that there be forum-transaction contacts
that will make it fundamentally fair to require the defendant to
defend a suit in the forum regardless of his non-resident status.
Distinction, Shaffer and International Shoe: while International Shoe
requires minimum contacts between the defendant and the forum,
Shaffer demands that minimum contacts exist among the forum,
defendant and the cause of action.
The change in the conceptual foundation of JD from territorial
power to fairness does not significantly affect proceedings in rem,
which are suits where the property itself is the object of the
controversy. The physical presence of the property within the state
establishes the state s paramount interest in adjudicating a claim
over it and provides the necessary minimum contacts.
Long-Arm Statutes
Long-arm statutes specify the kinds of contacts upon which JD will
be asserted. Some long-arm statutes broadly authorize courts to
assert JD in any case not inconsistent with the Constitution, leaving
it to the court to define its limitations on a case-by-case basis.
3. Jurisdiction over the Subject-matter
Subject-matter JD is allocated among the courts by constitutional
and statutory laws, according to the nature of the controversy,
thereby determining the competence of the court to try and
decide a case.
It is not enough that a court has a power in abstract to try and
decide the case; it is necessary that said power be properly
invoked xxx by filing a petition.
Subject-matter JD cannot be conferred by consent of the parties.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

Idonah Perkins vs. Roxas

(1941)
FACTS: Eugene Perkins filed a complaint against Benguet
Consolidated for the recovery of declared dividends, but
Benguet withheld payment upon the opposing claim of Idonah
Perkins, wife of Eugene. Idonah sets up a NY judgment
declaring her to be the sole owner of the Benguet shares and
allege that such
judgment is res judicata.
1. Dismiss the case
Doctrine of Forum non Conveniens
This doctrine requires the court to dismiss the case on the ground
that the controversy may be more suitably tried elsewhere. This
phrase literally means the forum is inconvenient.
Reasons for applying forum non conveniens:

HELD: The CFI has jurisdiction over the case, despite the
1)
presence of the NY judgment. Whether or not the trial judge in
the course of the proceedings will give validity and efficacy to
the NY judgment set up by Idonah in her cross-complaint is a
question that goes to the merits of the controversy and relates
to the rights of the parties as between each other, and not to 2)
the jurisdiction of the court. The fear that the trial judge may
render judgment annulling the final judgment of the NY court
is not a ground to deny the lower court of JD. The test of JD is
whether or not the tribunal has power to enter upon the 3)
inquiry, not whether its conclusion in the course of it is right or
wrong.
to prevent abuse of the court s processes (prevent
harassment of defendant, dissuade a non-resident
plaintiff from choosing the forum because of larger jury
verdicts, etc.)
burdensome on the court or taxpayers (severe backlog of
cases)
local machinery is inadequate to effectuate a right (no
way for court to secure evidence and attendance of
witnesses)

4) avoid global forum shopping

Presence /Jurisdiction: English and Scottish courts have applied FNC when there was
1) Traditional Views another available and more appropriate forum, in which the ends
a) Pennoyer actual physical presence of justice would be better served in view of the interests of all
2) Modern Views parties, by eliminating the vexatious or oppressive character of the
pending proceedings and by removing any unfairness to either
a) Int l. Shoe contact between the forum and party which would result from trial in the forum seized of the
the corporation (even in the absence of an case.
actual office, etc.)

b) Mullane disregards strict distinction between Heine vs. New York Insurance Co.
in rem and in personam (1940)
FACTS: An action for recovery on life insurance policies made
c) Shaffer minimum contacts between the and issued in Germany was filed by German citizens in Oregon
properties and forum; fundamental fairness test against a NY corporation.

Long-arm statutes: already identify what are the bases of JD. HELD: The Oregon court may refuse to exercise JD. The courts
of Germany and New York are open and functioning and
Jurisdiction and choice of law do not mean the same competent to take JD of the controversies, and service can be
thing. made upon the defendants in either of such JDs. To require the
_______________ defendants to defend the actions in Oregon would impose
upon them great and unnecessary inconvenience and expense.
The courts of this country are established and maintained
B. Ways of Dealing with a Conflicts Problem
primarily to determine controversies between its citizens and
those having business there, and manifestly the court may
The court may deal with a conflicts problem, by:
protect itself against a flood of litigation over contracts made
1) dismissing the case for lack of jurisdiction or on the and to be performed in a foreign country, where the parties
ground of forum non conveniens and witnesses are nonresidents of the forum, and no reason
exists why the liability, if any, cannot be enforced in the courts
2) assuming jurisdiction and applying either forum or of the country where the cause of action arose, or in the state
foreign law where the defendant was organized and has its principal
offices.

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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
In re: Union Carbide
(1986)
FACTS: An industrial disaster in a chemical plant of Union
Carbide in Bhopal, India caused deaths and injuries to a
number of residents. India enacted the Bhopal Gas Leak
Disaster Act, which authorized the government (Union of India)
to represent the victims. The UOI filed a complaint in NY in
behalf of the victims. Union carbide moved to dismiss on the
ground of forum non conveniens.
HELD: Indian courts have JD, not US courts. Even if UCC has
domicile in the US, this loses significance because it gave its
consent to Indian JD. Moreover, the findings of the court show
that the proof bearing on the issues to be tried is almost
entirely located in India (principal witnesses and documents,
detailed designs, implementation of plans, safety precautions,
etc.).
Wing On Company vs. Syyap
(1967)
FACTS: Syyap failed pay Wing On, a NY-based partnership, its
obligation for a contract of purchase of clothing material. Wing
On filed an action in the Philippines against Syyap, but Syyap
contends that the trial court should have declined JD on the
ground of forum non conveniens.
HELD: Forum non conveniens is inapplicable. Unless the
balance is strongly in favor of the defendant, the plaintiff s
choice of forum should be rarely disturbed, and furthermore,
the consideration of inadequacy to enforce the judgment,
which is one of the important factors to be considered in the
application of said principle, would precisely constitute a
problem to the plaintiff if the local courts decline to assume JD
on the basis of said principle, considering that defendant is a
resident of the Philippines.
There is no existing catalogue of circumstances that will justify
sustaining a plea of forum non conveniens but, in general, both
public and private interests should be weighed.
When the forum is the only state where JD can be obtained
over the defendant and, in addition, some relation with the
parties exists or when the forum provides procedural remedies
not available in another state, the forum court may not resist
imposition upon its JD.
Bank of America vs. CA
(2003)
FACTS: The spouses Litonjua are engaged in the shipping
business; they executed a contract where Bank of America was
made the trustee of their businesses. But the businesses
8
suffered losses in the hands of the bank, so the spouses filed a
case for damages for breach of trust and accounting of
revenues in the Philippines. Bank of America filed a Motion to
Dismiss on the ground of forum non conveniens.
HELD: While it is within the discretion of the trial court to
abstain from assuming JD on the ground of forum non
conveniens, it should do so only after vital facts are established,
to determine whether special circumstances require the
court s desistance; and the propriety of dismissing a case
based on this principle of forum non conveniens requires a
factual determination, hence it is more properly considered a
matter of defense.
The SC also held in Philsec. Investment vs. CA that the doctrine
of FNC should not be used as a ground for a motion to dismiss
because Sec. 1 Rule 16 of ROC does not include said doctrine
as a ground.
Forum non conveniens:
1) prevent abuse of court processes
2) burdensome on the court/taxpayers
3) prevent global forum shopping
FNC is not something that automatically applies; its
application rests in the sound discretion of the court
in Wing On vs. Syyap. Prof. Pangalangan does not agree
with the holding that unless the balance is strongly in
favor of the defendant, the plaintiff s choice of forum
should rarely be disturbed , because in the first place,
it was the plaintiff who chose that forum.
_______________
2. Assume Jurisdiction
When the court assumes JD, it may apply forum law or foreign law,
although forum law should be applied whenever there is good
reason to do so because the forum law is the basic law.
Factors which justify the application of internal law:
1) A specific law of the forum decrees that internal law
should apply
Examples of this are Art. 16 of Civil Code (lex nationale governs
testate and intestate succession of the person whose succession is
under consideration); Art. 829 of the Civil Code (revocation of wills
outside RP); and Art. 819 (prohibition on joint wills by Filipinos).
Example: prohibitory or mandatory laws of the
forum
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

2) The proper foreign law was not properly pleaded and court approving the project of partition in accordance with
proved Nevada law must be affirmed.

Our courts may not take judicial cognizance of any foreign law; 3) The case falls under any of the exceptions to the
hence, failure to plead and prove foreign law leads to the application of foreign law
presumption that it is the same as forum law.
a) The foreign law is contrary to an important public
Under the Rules of Court, the foreign law may be policy of the forum
proved by: b) The foreign law is penal in nature
a) official publication c) The foreign law is procedural in nature
b) certification form the officer with official custody, d) The foreign law purely fiscal or administrative in
under seal, and the Phil. Embassy must certify that nature
such officer has official custody, etc.: that it is the law e) The application of the foreign law will work
in force at the time etc., etc. undeniable injustice to the citizens of the forum
f) The case involves real or personal property situated
in the forum
Fleumer vs. Hix g) The application of the foreign law might endanger
(1930) the vital interest of the state
FACTS: Fleumer, the special administrator of the estate of Hix, h) The foreign law is contrary to good morals
appealed the denial of the probate of Hix s will, alleging that
since the will was executed in West Virginia by a resident
therein, West Virginia law should govern. V. Choice of Law

HELD: The courts of the Philippines are not authorized to take A. The Correlation between Jurisdiction and Choice of Law
judicial notice of the laws of the various States of the American
1) The factors that justify exercise of judicial jurisdiction
Union. Such laws must be proved as facts. Here the
maybe the same factors used to determine choice
requirements of law were not met. There was no showing that
of law
the book from which an extract was taken was printed or
published under the authority of the state of West Va. as 2) if the forum applies its internal law because it has a
provided in the Code of Civil Procedure; nor was the extract real interest, the outcome of the case will be
from the law attested by the certificate of the officer having foreordained by the forum
charge of the original. - plaintiff will choose forum who has real interest in
applying its internal law

Philippine Trust Co. vs. Bohanan
(1960)
FACTS: The will of Bohanan was admitted to probate; in the
probate he was declared to be a citizen of Nevada. In the
hearing for the proposed project of partition, Nevada law was
not introduced. Bohanan s widow questioned the validity of internal law will be applied.
the will under Philippine law; however, if Nevada law was to be
applied, the will would be valid.
HELD: The law of Nevada, being a foreign law, can only be
proved in our courts in the form and manner provided for by
our Rules. However, it has been found that during the hearing
for the motion of the widow Bohanan for withdrawal of her
share, the foreign law was introduced in evidence by her
counsel. In addition, the other heirs do not dispute the
provisions of the Nevada law. Under these circumstances, the
pertinent laws of Nevada can be taken judicial notice of by the
court, without proof of such law having been offered at the
hearing of the project of partition.
As the validity of the testamentary dispositions are to be
governed by the national law of the testator, the order of the
3) generally, forum will apply its internal law so plaintiff
will bring suit where internal law is favorable to him
BUT these are 2 diff. concepts. A court may exercise jurisdiction
but apply foreign law or not exercise jurisdiction but the state s
B. Approaches to Choice of Law
Ideally, the object of all choice of law theories must be justice and
predictability.
1. Traditional Approaches
- theories that emphasize simplicity, convenience and
uniformity
a. vested rights theory
- advanced by Prof. Beale (1st Restatement)
- an act done in a foreign jurisdiction gives rise to a right if
the laws of that state provides so. The right vests and he
can bring suit in any forum he chooses.

9
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
- The forum refers law of the place of the last act
necessary to complete the cause of action. (place of
injury)
- If place of the last act creates no legal right, although
forum court creates such right if act is done within its
territory, it will not enforce the right.
Gray vs. Gray
(1934)
FACTS: Wife (W) sued husband (H) for damages in New
Hampshire where they are residents. Accident happened in
Maine. Maine bars suit between spouses.
HELD: The effect of the prohibition in Maine is to divest the W
of any cause of action against H. If there is a conflict between
lex fori and lex loci, lex loci governs in torts in respect to the
legal effect and incidents of the act.
The status as spouses is determined by New Hampshire law but
the incidents of that status is governed by the law of the place
of the transaction (Maine).
Alabama Great Southern Railroad vs. Carroll
(1892)
FACTS: Carroll is an employee of Alabama RR. Both are
residents of Alabama. C was injured in the course of work bec.
of negligence of co-EE in Mississippi. Mississippi bars recovery.
Alabama makes employer liable. Suit is filed in Alabama.
HELD: There can be no recovery in one sate for injuries to the
person sustained in another unless the infliction of the injuries
is actionable under the law of the state in which the injuries
were received.
Although it is claimed that the negligent conduct was done in
Alabama, the injury sustained creates the cause of action and
not the negligence. (law of the place of injury)
Criticisms to the Approach: failure to resolve conflicts cases with
considerations of policy and fairness.
b. Cook s Local Law Theory
- treat conflicts cases as a purely domestic case that does
not involve a foreign element
- power of a state to regulate within its territory has no
limitation except as imposed by its own positive law
- criticism: appeals to narrow-mined who favors an
exaggerated local policy bec a sovereign can do as they
please, depreciating the practical and equitable
considerations that should control the case.
c. Caver s Principles of Preference
10
- choice-of-law decisions should be made with reference
to principles of preference which are conceived to
provide a fair accommodation of conflicting state policies
and afford fair treatment to the parties.
- Caver s principles have a territorialist bias; it looks to the
place where the significant events occurred or where the
legal relationship is centered.
- Court should:
1) scrutinize the event/ transaction giving rise to the
issue
2) compare carefully the proffered rule of law & the
result of its application with the rule of the forum &
its effect
3) appraise these results from the standpoint of justice
between the litigants or of considerations of social
policy
2. Modern Approaches
a. Place of the Most Significant Relationship
-identifies a plurality of factors:
i. needs of the interstate and intl system
ii. relevant policies of the concerned states
iii. relevant policies of other interested states
iv. protection of justified expectations of the
parties
v. basic policies underlying the particular field of
law
vi. certainty, predictability and uniformity of result
vii. ease in the determination and application of
law to be applied
Examples of application:
i. torts place of injury, place of tortious
conduct, domicile, residence or nationality of
parties, place where relationship is entered
ii. contracts choice of law of the parties, place
of contracting, place of performance, domicile,
residence, nationailty, place of incorporation
and place of business
Auten vs. Auten
(1954)
FACTS: Spouses were married and lived in England. H left and
went to NY. Spouses executed support agreement in NY. H
failed to pay support. W sued H for legal separation. W sued in
NY to enforce agreement. H claimed that legal separation suit,
extinguished liability under NY law.
HELD: English law should govern the parties. England has all
the truly significant contacts while the nexus to NY is entirely
fortuitous.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
England is the seat of marital domicile and the place where W
& children were to be, it has the greatest concern in defining
and regulating the rights and duties existing under the
agreement and the circumstances that affect it. Whereas NY is
only the place of the agreement and where the trustee, where
moneys will be paid for the account the W & children, had his
office.
In applying the grouping of contacts theory, courts, instead
of regarding as conclusive the intention of the parties or the
place of making or performance, lay emphasis rather on the
law of the place which has the most significant contacts with
the matter in dispute.
Haag vs. Barnes
(1961)
FACTS: Barnes & Haag had an affair in NY. H became
pregnant. After giving birth, H went to Chicago. Parties entered
into a support agreement in Chicago. The agreement
contained a choice of law clause (Illinois). H & child went back
to live in NY. H filed support action in NY against B. Under NY
law, agreement is not binding. B s defense: Illinois agreement
bars suit.
HELD: Suit is barred by the prior support agreement. Court
found that Illinois has the most significant contacts. It is what
the parties intended to apply, the place of performance, the
place of business of B & the agents and the place where
support are being made compared to NY whose contacts are
of less weight & significance. (place of liaison & residence of H
& child)
Criticisms to approach: no standard to evaluate the relative
significance/importance of each contact such that court may use
approach to support any preconceived result without explaining its
real motives.
b. Interest Analysis
- resolve conflicts cases by looking at the policy behind the
laws of the involved states and the interest each state has
in applying its own law.
- Tasks of the court:
1st: determine whether the case involves a true, false or
apparent conflict (false conflict: only one state has an
actual interest in having the law applied and the failure to
apply the other state law will not impair its policy)
2nd: if there is apparent or true conflict, court should take a
second look on the policies and interests of the states. If
only one has a real interest, the other is insubstantial,
then there is false conflict. If both have real interests in
applying their law, then the apparent conflict is a true
conflict.
11
Babcock vs. Jackson
(1963)
FACTS: Babcock & Jackson, NY residents, met a car accident in
Ontario thru J s fault. B sued J in NY for damages. Ontario
bars recovery under a guest statute. NY does not have a similar
rule.
HELD: B should be allowed to recover. NY had a greater &
more direct interest than Ontario. NY s policy is to afford
compensation to a guest against tortfeasor host while
Ontario s policy is to prevent fraudulent collusion to the
prejudice of Ontario defendants-insurance companies. Thus,
Ontario had no interest in denying a remedy to a NY guest
against a NY host.
The rule on tort claim is:
Where the issue involves standard of conduct, law of the place
of the tort is controlling, but as to other issues, court must
apply the law of the state which has the strongest interest in
the resolution of the issue presented.
Criticisms to Approach: not all state legislatures publish reports that
explain the background and purpose of the laws, thus court is left
to speculate on the purpose of the law and not all reflected policy
or had a purpose other than to decide cases.
Pangalangan on Interest analysis: why consider what the
state wants when interests of individuals are in issue?
c. Comparative Impairment
- subordination of the state objective which would be least
impaired
- How? Court should weigh conflicting interests and apply
the law of the state whose interest would be more
impaired if its laws were not followed
d. Trautman s Functional Analysis
- this approach looks into:
1) the general policies of the state beyond those
reflected in substantive law
2) policies and values reflecting effective and
harmonious relationship between states
ex. Reciprocity, advancement of multistate activity,
protecting justifiable expectations, evenhandedness
and effectiveness.
- after determining these policies, court should then weigh
the relative strength of a state policy
- HOW? Court should consider whether the law of a state
reflects an emerging or regressing policy.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
e. Leflar s Choice-Influencing Considerations
5 major choice-influencing considerations
1) predictability of results
2) maintenance of interstate and intl order
3) simplification of the judicial task
4) application of the better rule of law
5) advancement of the forum s governmental interest
- court should prefer a law that make good socioeconomic
sense and are sound in view of present day conditions
- Criticism: no principled or objective standard to
determine better rule .
Traditional approaches do not consider policy; all modern
approaches look at policy.
______________
VI. The Problem of Characterization
A. Characterization and the Single-Aspect Method
Single-aspect method: choice of law theories traditionally
concentrated on one element of a situation to connect case to
particular legal community.
Goal: simplicity, convenience, uniformity
Multi-aspect method: modern approach by which all important
factors (non/territorial) are analyzed.
The applicable law is arrived at by elaborating policies & purposes
underlying rules, and the needs of international intercourse.
Goal: just resolution of case
The Philippines follows single-aspect method. Our conflicts rules
are mostly found in the Civil Code.
Art 15: Laws relating to family rights & duties, or to the status,
condition and legal capacity of persons are binding upon citizens
of the Philippines, even though living abroad.
Art 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.
(AOI)
12
Art 17: The forms and solemnities of contracts, wills, and other
public instruments shall be governed by the laws of the country in
which 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.
The rules specify geographical location in accordance with
traditional approach. The problem with this: inherent rigidity,
unjust decisions.
Solution: Characterization, Renvoi, Escape devices
Characterization: the process by which a court assigns a disputed
question to an area in substantive law. It is a part of legal analysis
and a pervasive problem since at least 2 jurisdictions with
divergent laws are involved.
Two Types of Characterization:
1. Subject-matter Characterization
This calls for classification of a factual situation into a legal
category. It is significant in a single-aspect method because the
legal category to which an issue is assigned determines governing
law
Gibbs vs. Gov t. of PI
(1933)
FACTS: Spouses Allison & Eva were residents & citizens of
California owning parcels of land in Manila. Eva died. Allison, as
administrator files petition to declare lands in his favor pursuant
to California law. California Civil Code provides that upon
wife s death previous to husband, community property
belongs absolutely to husband.
HELD: California Civil Code will not apply. The law of the place
where land is situated governs its descent, alienation &transfer
& for the effect & construction of wills & other conveyances.
As mandated by Philippine law, the lands were acquired as
community property in the conjugal partnership. The wife was
vested with a title equal to that of her husband. Upon her
death, if there are no obligations of the decedent, her share in
the conjugal property is transmitted to the heirs by succession.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Though the court was silent on the matter of characterization, it
had the task of categorizing the issue as one involving:
b) property to be governed by lex situs, or
c) succession to be governed by decedent s national
law (California)
Characterization problems are considered a threat to traditional
choice-of-law theories whose aims are uniformity & predictability
of results.
Problems:
A) C, is adopted in the Philippines by a former Filipino citizen and
moves to the US with her adoptive mother, M. By M s laws, C will
not be an heir. Will C be entitled to an intestate share in M s
estate?
The court would have to decide whether it is a Q relating to
1. Legality & effects of adoption: law of state where legal
relationship of adoption was established or where the adoption
decree was granted shall govern; or
2. Succession: adopter s personal law shall prevail
B) Principal authorizes a person to act as his agent in another
country. Agent commits a negligent act. What law will determine
the principal s liability?
It depends on the court s characterization of the case as:
1. Contractual: law of the place where the contract of
agency was entered into; or
2. Tortious: law of the place where tortuous conduct or
injury occurred
2. Substance-Procedure Dichotomy
Directs the court to the extent it will apply foreign law.
If issue substantive: court may apply foreign law
If issue procedural: follow forum law
Why apply forum law to matters of procedure?
One of the main goals of a rational system of CL rules: Rights &
Duties of parties arising from a legal situation shall not be
substantially varied because the forum in w/c action is brought.
Courts of all civilized states now seek to protect parties, by
referring to foreign law, against a substantial change of position
because of fortuitous circumstance that suit was brought in that
forum.
The means provided for compulsion, or the limitation upon
compulsion are in most cases of equal practical importance to the
declaration of the validity of the plaintiff s claim.
13
Such all inclusive reference to foreign law is never made. It would
be too burdensome on the part of the forum and administration of
justice will be delayed. Thus, it is necessary to limit the scope of
reference to foreign law.
This limitation excludes phases of the case which make the
administration of foreign law inconvenient or violative of local
policy. In such instances, local rules of the forum are applied & are
classified as matters of procedure.
Grant vs. Mcauliffe
(1953)
FACTS: Plaintiffs, Grant, et al., (California residents) were injured
in Arizona when their vehicle collided with that of Pullen s
(California resident), who died of accident. The suit against
estate of Pullen filed by Grant to recover damages was
dismissed because under Arizona law- a tort action not
commenced before the death of the tortfeasor must be
abated . But under California law, an action for tort survives
the death of tortfeasor.
HELD: Survival statutes are procedural. Thus, California (forum)
law applies. Forum law governs if issue is procedural. Under
California Civil Code the action out of a wrong resulting to a
physical injury shall not abate because of the death of the
wrongdoer. Plaintiff s cause of action survives Pullen s death.
The reaction to Grant was generally negative. It was criticized as
being based on an erroneous characterization greatly influenced
by sympathy .
Other view: Correct result but arrived at using dubious method.
Currie: The court availed of one of several escape devices -
characterization. It characterized the problem differently, such
producing the result previously recognized as the sound result.
This device is not ideal. It is better if courts could expressly state
the considerations that helped them determine the results and
indicate clearly how these considerations will be used in other
cases.
No objective standard has been suggested. An attempt to explain
the court decision in terms of demands of justice or social
policy would create uncertainty & arouse criticism.
Procedural issues are governed by forum law so that the court will
not be unduly burdened by task of studying peculiarities of
another legal system. It must be noted, though, that some matters
cannot be clearly defined as procedural or substantive.
Two Issues whose classification (as procedural or substantive) is
debatable:
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

1) Statute of Frauds HELD: Even though a law on prescription may be considered as

It is considered substantive if words of law relate to forbidding the substantial or procedural, its characterization as either becomes
creation of obligation. One that forbids the enforcement of the irrelevant when the country of the forum has a borrowing
obligation is characterized as procedural statute. Said statute has the practical effect of treating the
foreign statute of limitation as one of substance. Under the
Marie vs. Garrison: Defendant maintains that the NY Statute of ROC of the Philippines, it is provided that if by the laws of the
Frauds affects the remedy upon a contract w/in its termsa rule
state or country where the cause of action arose, the action is
prescribing evidence & deemed a rule of procedure. Garrison
barred, it is also barred in the Philippines. The Bahrain law on
claims that rules of the forum must be followed. Marie claims that
prescription should apply. However, it cannot be enforced as it
NY law was constructed as a rule of substance going into existence
would contravene the public policy on the protection to labor.
of contract; determined by lex loci contractus.
Philippine law will then be applied.
Issue: Whether a contract declared void by a stature still subsists
as a contract w/ the only effect of depriving party of a remedy or
B. Depecage
mere evidence.
Held: It was a word of substance because the statute provided that
From depecer, which means to dissect.
the contract of sale of any interest in land shall be void unless it
was in writing ex contrario to a law stating that no action shall be
Different aspects of a case involving a foreign element may be
brought of the requirement was not complied with.
governed by different systems of laws.

Von Mehren & Trautman: A man dies intestate domiciled in state A

2) Statutes of Limitations (SL) & Borrowing Statutes
& w/ movable properties in State B.
Statutes of limitations are traditionally classified as procedural
How will the man s estate be divided?
because they only barred the legal remedy w/out impairing the
State A conflict rules refer to laws of domicile. Intestate law of State
substantive right involved.
B gives the widow a definite share in the estate of deceased. But
the determination of WON the woman claiming the share is a
Thus, a suit can still be maintained in another JD w/c has a longer
wife is referred to family law, not laws on succession.
SL. However, certain SL s have been classified as substantive for
conflicts purposes if providing a shorter period for certain claim
Issues of law governing movable properties & successional rights
types falling w/in wider class covered by the general SL.
of spouse are of primary importance, embodying substance of
claim. Validity of marriage affects solution because it answers a
Specificity test: to determine whether an SL is substantive or
preliminary or incidental Q.
procedural.

The presence of an incidental Q is one instance which calls for the

An SL of a foreign country is treated as substantive when
employment of depecage.
limitation was directed to newly created liability so specifically as to
warrant saying that it qualified the right
Merits of Depecage:
This technique allows other relevant interests of parties to be
addressed. Thus, it permits courts to arrive at a functionally sound
Borrowing statutes
result w/out rejecting the methodology of the traditional approach.
Purpose: Many states, the Philippines among others, have passed
This nuanced single-aspect method employs depecage by choice.
borrowing statutes to eliminate forum-shopping.

However, in the case of Cadalin, the court said that to enforce the
borrowed statute would contravene public policy on protection of
labor.
Cadalin vs. POEA Administrator
(1994)
FACTS: Cadalin et al. instituted a class suit with the POEA for
money claims arising from their recruitment by AIBC and BRII
for pretermination of employment contracts. Under Bahrain law
where some of the complainants were deployed, the
prescriptive period for claims arising out of a contract of
employment is one year.
14
Haumschild vs. Continental Casualty
(1959)
FACTS: Haumschild and Gleason were married in Wisconsin,
their domicile. Haumschild was injured in California while riding
a motor truck driven by Gleason. Their marriage was later
annulled. An action for recovery of damages was filed by
Haumschild in Wisconsin. Continental alleges that under
California law, a spouse is immune from suit by the other
spouse.
HELD: The law of the domicile ought to be applied in any issue
of incapacity to sue based upon family relationship. The policy
reason for denying the capacity to sue (preventing family
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

discord) more properly lies within the sphere of family law,
where domicile usually controls the law to be applied, than it
does tort law, where the place of the injury generally
determines the substantive law which will govern.
Renvoi has been employed in cases where the domiciliary and
nationality laws are applied to the same individual in issues
involving succession, domestic relations and real properties.
Renvoi:

The court decided that the law of the place of accident (California)
governed the issue of negligence while Wisconsin law governed State A State B
(RP)
the issue of interspousal immunity. The characterization process
was taken one step further by not limiting the classification to the
case itself but likewise, to the issue arising from the case. Art. 16 Internal law
CC

The 1969 Restatement 2d adopted depecage & set out a number Conflict-of-
of factors to be considered in choosing the applicable law: laws rule

a. needs of interstate & international system

b. relevant policies of the forum

c. relevant policies of other interested states & the relative

interests of those states in the determination of a
particular issue

d. protection of the justified expectations of the parties

e. the basic policies underlying the particular field of law

f. certainty, predictability, uniformity of results, and

B. Various ways of dealing with the Problem of Renvoi
g. ease in determination & application of law to be applied

4 Ways of Dealing with the Problem of Renvoi (Prof. Griswold):

The consideration of any elements & acceptance by courts of
depecage help ease restrictions of single aspect method.
1) if the conflicts rules of the forum court refer the case to
the law of another state, it is deemed to mean only the
Courts not compelled to apply entire law to all aspects of
internal law of that state (internal law: that which
case that might produce egregious results. Cutting up the case
would be applied to a domestic case that has no conflict-
issue by issue is fair & reasonable.
of-laws complications) rejects the renvoi
But even if a useful tool in modern choice-of-law analysis, the
2) the court may accept the renvoi and refer not just to
express reference to depecage in case law, both in US & the Phil
another state s internal law but to the whole law
still uncommon.
(includes choice-of-law rules applicable in multi-state
cases)

VII. The Problem of Renvoi

A. Definition
Renvoi a procedure whereby a jural matter presented is referred
by the conflict of laws rules of the forum to a foreign state, the
conflict of laws rule of which, in turn, refers the matter to the law of
the forum or a third state.
Remission: reference is made back to the law of the forum
Transmission: reference to a third state
15
Aznar vs. Garcia
(1963)
FACTS: The will of Edward Christensen, a domiciliary of the
Philippines, was admitted to probate, and a project of partition
was proposed. Edward s illegitimate child opposed the project
of partition on the ground that the distribution of the estate
should be governed by Philippine law. The lower court found
that Edward was a US citizen; hence the successional rights and
intrinsic validity of the will should be governed by California.
HELD: Philippine law should apply. Art. 16 of the Phil. Civil Code
provide that the national law of the decedent governs the
validity of his testamentary dispositions. Such national law
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
means the law on conflict of laws of the California code, which
authorizes the reference or return of the question to the law of
the testator s domicile. The conflict of laws rule in California
precisely refers back the case, when a decedent is not
domiciled in California, to the law of his domicile (the
Philippines in the CAB). The Phil. court must apply its own law
as directed in the conflict of laws rule of the state of the
decedent.
3) by desistance or mutual disclaimer of JD the same
result as the acceptance of the renvoi doctrine but the
process used by the forum court is to desist applying the
foreign law.
4) foreign court theory the forum court would assume
the same position the foreign court would take were it
litigated in the foreign state
Disadvantage to renvoi: if both courts follow the same theory,
there would be no end to the case since the courts would be
referring it back to each other. It gives rise to situations that have
been invariably described as resembling revolving doors, a
game of lawn tennis, a logical cabinet of mirrors or a
circulus inextricabilis.
Annesley, Davidson vs. Annesley
(1926)
FACTS: The testatrix, a British subject, was a domiciliary of
France according to British law, but not according to French
law. She made a will in English form. In the will she disposed of
all her property in favor of her daughter, and stipulated that
she had no intention of abandoning her domicile in England. If
she was a domiciliary of France, she could only dispose of 1/3
of her personal property.
HELD: The domicile of the testatrix at the time of her death was
French. Applying English law, the fact of her residence in
France coupled with animus manendi showed her intention to
abandon her English domicile even if she had not complied
with the formalities required under French law to become a
French domicile.
According to French municipal law, the law applicable in the
case of a foreigner not legally domiciled in France is the law of
that person s nationality, which is British. But British law refers
the question back to French law, the law of the domicile. And
according to French law, the French courts, in administering the
movable property of a deceased foreigner who, according to
the law of his country is domiciled in France, and whose
property must, according to that law, be applied in accordance
with the law of the country in which he was domiciled, will
apply French municipal law, even if he had not complied with
the French requirements for acquisition of domicile.
16
Options which the forum court may do:
a) accept the renvoi (apply forum law)
b) reject the renvoi (apply the internal law of the foreign
state)
c) desistance/mutual disclaimer
d) foreign court theory
- the difficulty with the foreign court theory is that the
forum court will have to anticipate or guess how the
foreign court will act.
Renvoi is optional, based on the discretion of the court
and the facts of the case.
_______________
C. Usefulness of Renvoi
Renvoi has been used to avoid unjust results.
University of Chicago vs. Dater
(1936)
FACTS: Mr. and Mrs. Price executed a trust deed and
promissory notes in favor of University of Chicago, for a loan
secured by Mr. Price and Mr. Dater. They were residents of
Michigan; the mortgage and the notes were also signed there
and sent by mail to Chicago. In a suit filed by the University in
Michigan against the spouses Dater and Mrs. Price (Mr. Price
having died earlier), the court ruled that there was no cause of
action against Mrs. Price, because under Michigan law a
married woman has no capacity to enter into an obligation
such as this, hence the note and trust deed were void. The
question is which law should be applied, Michigan or Illinois
law.
HELD: Under the law of Illinois, the capacity of Mrs. Price is
governed by Michigan law (as held in the similar case of Burr
vs. Beckler, where the court said that since the contract was
completed in Florida, that state governed her capacity to
contract). In this case, the contract was complete in Michigan,
and it governs her capacity to contract. Since she was not
competent to contract under Michigan law, her note and trust
deed were void.
In the Dater decision, Michigan protected the interest of a
Michigan wife especially since Illinois disclaimed any desire in
applying its law. Also, uniformity of results was promoted in spite
of discrepancies in the choice-of-law rules of the involved states.
With renvoi, the Dater decision was made dependent on
substantive law and not on the incidental law of the forum.
Objections to Renvoi
Critics:
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
1) renvoi would place the court in a perpetually-enclosed
circle form which it would never emerge and that it
would never find a suitable body of substantive rules to
apply to a particular case. The theoretical problem
presented is that renvoi is workable only if one of the
states rejects it and that it achieves harmony of decisions
only if the states concerned do not agree on applying it
the same way.
Griswold: the objection is based on a false premise; as long as
remission is to the state s internal law alone there will be a stop to
the endless chain of reference.
2) Courts may be unnecessarily burdened with the task of
identifying the choice-of-law rules of another state.
Pangalangan: from a practical perspective, the forum court will not
use renvoi if, in the first place, it cannot ascertain what the conflict-
of-law rules of the foreign state are.
Inapplicability of Renvoi in a False Conflict
US Restatement (Second) of Conflict of Laws: renvoi to be used
when there is a disinterested forum, to ensure that only the laws
advancing the policies of the interested states will be applied. If the
choice-of-law rules of the state to which reference is made refers
the case back to the forum state, the court may use this situation
to determine if both states have an interest in having their laws
applied or if there is merely a false conflict.
Pfau vs. Trent Aluminum Co.
(1970)
FACTS: Trent (a New Jersey domiciliary) agreed to drive Pfau (a
Connecticut domiciliary) to Missouri. While in Iowa, they had a
vehicular accident causing injuries to Pfau. Pfau filed suit in
New Jersey against Trent Aluminum Co. (registered owner of
the car) for the damages he sustained while a passenger in
Trent s car. The defense of Trent Aluminum was that Iowa law
is applicable, which provides that the host-driver is not liable to
his passenger-guest for ordinary negligence.
HELD: Connecticut and New Jersey law both allow passenger-
guest recovery. It appears that Connecticut s substantive law
allowing a guest to recover form his host s ordinary
negligence would give it a significant interest in having that law
applied to this case. Since Iowa has no interest in this litigation,
and since the substantive laws of Connecticut and New Jersey
are the same, this case presents a false conflict and the
Connecticut plaintiff should have the right to maintain an
action for ordinary negligence in New Jersey.
Bellis vs. Bellis
(1968)
17
FACTS: The probate of the will of Texas citizen and domiciliary
Amos Bellis was opposed by his 3 illegitimate children in the
Philippines for depriving them of their compulsory legitime.
However, the trial court ruled that under Art. 16 of the Phil. Civil
Code, the national law of the decedent is to be applied in
testamentary succession. The law of Texas did not provide for
legitimes.
HELD: Texas law should apply. The decedent was both a
national and a domiciliary of Texas, so that even assuming
Texas has a conflict of law rule providing that the law of the
domicile should govern, the rule would not result in a reference
back (renvoi) to Philippine law, but would still refer to Texas law.
VIII. Notice and Proof of Foreign Law
A. Extent of Judicial Notice
It is the party whose cause of action or defense depended upon
the foreign law who has the burden of proving the foreign law.
Foreign law is treated as a question of fact that should be properly
pleaded and proved
In the Phils., judicial notice may be taken of a foreign law with
which the court is evidently familiar. (Delgado vs. Republic) Such
familiarity may be because the law is generally known such as
American or Spanish Law from which Phil law was derived or the
judge had previously ruled upon it in other cases.
In US, courts are allowed to take judicial knowledge of the law of
sister states.
B. Proof of Foreign Law
Foreign law may be proved by presenting either of the ff:
1. an official publication of the law
2. a copy of the law attested by the officer having legal
custody of the record or by his deputy. If the record is
not kept in the Philippines, it must be accompanied with
a certificate that such officer has the custody (by the
consular officer of the Phil embassy in said state and
authenticated by his seal of office)
Proof of documents executed abroad: any public document
executed abroad to be used in the Phils must be duly
authenticated by the Phil. consul attaching his consular seal
Depositions of non-residents in a foreign country: they may be
taken
1) on notice before a secretary of embassy or legation,
consul general, consul, vice-consul, or consular agent of
the Phils.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
2) before such person or officer as may be appointed by
commission or under letters rogatory.
3) before such person which the parties have stipulated in
writing
PCIB vs. Escolin
(1974)
FACTS: Case bet. the administrators of the estates of Hodges
spouses. W s administrator sought the application of Texas
law. H s administrator also used the Texas law but arrived at a
different conclusion.
HELD: Case remanded for parties to present proof of the
applicable Texas law. The question of what are the applicable
laws of Texas is one of fact and not of law. Foreign laws may
not be taken judicial notice of & have to be proven like any
other fact in dispute between the parties in any proceeding
with the rare exception in instances when the laws are within
the actual knowledge of the courts, such as when:
a. they are well and generally known
b. they have been actually ruled upon in other cases
before it and none of the parties claim otherwise
In Re Estate of Johnson
(1918)
FACTS: In the hearing for the probate of the will of J, alleged to
be made in accordance with the laws of Illinois, TC judge took
judicial notice of the said foreign law.
HELD: Trial court judge erred in taking judicial notice.
The judge cannot take judicial notice of the acts of the
Legislative Department of US particularly the various laws
of the American states.
Likewise, Phil. courts cannot take judicial notice of the
same under matters of public knowledge .
The proper rule is to require proof of the Statute
whenever it is determinative of the issue/s in Phil. courts.
Effects of Failure to Plead and Prove Foreign Law
Forum court may:
1. dismiss the case for inability to establish cause of action
2. apply law of the forum (courts conclude that by failing to
adduce proof, parties acquiesce to the application of the
forum law since it is the basic law)
3. assume foreign law is the same as law of the forum
(processual presumption)
First approach: Dismiss the case
18
Walton vs. Arabian Oil Co.
(1956)
FACTS: Walton, US citizen, was injured in Saudi Arabia. His
complaint did not allege the Saudi Arabia law nor did he
proved the same during the trial. TC ruled in favor of
defendant as he did not take judicial notice of S. Arabian law.
HELD: Because of failure to prove the foreign law, plaintiff
loses.
Plaintiff has the burden of proving the law of Saudi Arabia from
which he shall base his claim because under NewYork law,
where action was instituted, lex loci delicti is the substantive la
applied in tort cases.
A court abuses its discretion under the New York Civil Practice
Act if it takes judicial notice of the foreign law when it is not
pleaded esp. when the party who had the burden to prove the
same has not assisted the court in judicially learning it.
The applicable tort principles necessary to establish
plaintiff s claim are not rudimentary. In countries where
common law does not prevail, these principles may not
exist or maybe vastly different.
Second approach: apply forum law, conclude that parties acquiesce
to its application.
Leary vs. Gledhill
(1951)
FACTS: Leary instituted this action in New Jersey to recover the
loan contracted in France against G. G moved to dismiss on the
ground that L s proof were insufficient as there is no pleading
or proof of the law of France where the transaction occurred.
HELD: L can recover despite failure to prove French law. Altho
the court recognizes the fact that France adopts civil law rather
than common law principles, the cause of action of L may still
be pursued, as there are 3 presumptions that the court may
apply in the CAB. These are:
1, French law is the same as law of the
forum
2. French law, like all civilized countries, recognizes
certain fundamental principles (taking of a loan
creates obligation to repay)
3. By failing to prove French law, parties acquiesce to
apply forum law
The third presumption does not present any difficulties for it to
be universally applied regardless of the nature of the
controversy. This is more favored by the authorities and has
been followed in Sturm v. Sturm.
In CAB, Rights of the parties are to be determined by New
Jersey laws which permit recovery on the facts proven.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Zalamea vs. CA
(1993)
FACTS: Zalamea filed action for damages against TWA. RTC
awarded actual and moral damages. CA denied award of
moral damages because there was no fining of bad faith and
because overbooking was an allowed practice in US airlines.
HELD: CA was wrong. The US law or regulation authorizing
overbooking was not proved in accordance with our laws.
TWA relied solely on the statement of its agent that the
Code of Fed. Regulations of Civil Aeronautics Board allows
overbooking.
No official publication of the said code was presented as
evidence.
Written law maybe evidenced by an official publication thereof or
by a copy attested by the officer having legal custody of the record
or by his deputy, accompanied by a certificate (made by a Phil.
consular officer and authenticated by his seal of office) that such
officer has legal custody.
Third approach: processual presumption
Miciano vs. Brimo
(1924)
FACTS: Action for partition of estate of Brimo, a Turkish citizen.
Oppositor claims that proposed partition is contrary to Turkish
law but he failed to prove & present evidence on the said
Turkish law.
HELD: In the absence of evidence on foreign law, they are to
be presumed the same as those of the Phils. Oppositor,
himself, acknowledges that the foreign law was not proven
when he asked for opportunity to present evidence. He was
granted ample opportunity to present competent evidence and
there was no GAOD when the court refused to grant him
another opportunity.
Suntay vs. Suntay
(1952)
FACTS: A will executed in Amoy by the deceased is sought to
be allowed in the Phils. The will was allegedly recorded and
probated by a district court in Amoy.
HELD: Will cannot be allowed. Silvino was unable to adduce the
necessary proof under Secs. 1-3 of Rule 78 in order to probate
the will in the Philippines, specifically:
a. the fact that the municipal court of Amoy is a probate
court
b. the procedural law of China regarding probate of wills
c. the legal requirements for the execution of a valid will
19
Although there were unverified answers of the Consul General
of China, his answers are inadmissible because:
a. he does not qualify as an expert on Chinese law on
probate procedure (usu. attend to trade matters), and
b. if admitted, the adverse party will be deprived of their right
to cross-examine him
Thus, in the absence of proof, it may be presumed that the
probate laws of China are the same as ours and the will in
question does not comply with our probate laws.
CIR vs. Fisher
(1961)
FACTS: Spouses Stevenson are British subjects. H dies leaving
W as sole heir. CIR assessed estate tax on the whole properties
of the spouses because English law does not recognize
conjugal partnership.
HELD: English law cannot be applied. The pertinent English law
that allegedly vests in husband full ownership of properties
acquired during the marriage was not proved by CIR
(petitioner). In the absence of proof, the Court is justified in
indulging in processual presumption in presuming that the
law of England on the matter is the same as our law.
Board of Commissioners vs. CID
(1991)
FACTS: Board sought the deportation of G who is alleged to be
an alien. Marriages of G s grandfather and of G s father all
performed in China were not properly proven.
Only self-serving testimonies were allegedly presented. Also,
marriages are claimed to be void according to Chinese law.
HELD: In the absence of evidence to the contrary, foreign laws
are presumed to be the same as those of the Phils. In CAB,
there being no proof of Chinese law on marriage, the
presumption arises. The Phils. adhere to the presumption of
validity of marriage (A.220 FC) He who asserts the marriage is
not valid under our laws bears the burden of proof to present
the foreign law.
In deciding whether to apply forum law or to dismiss the case/rule
against the party who failed to prove the foreign law, court must
consider the ff: factors
a. degree of public interest involved
b. accessibility of foreign law materials to the parties
c. possibility that plaintiff is merely forum shopping
d. similarities between forum law and foreign law on the issue
involved
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
C. Exceptions to the Application of Foreign Law
1) The foreign law is contrary to an important public policy
of the forum
2) The foreign law is procedural in nature
3) Issues are related to property (lex situs)
4) The issue involved in the enforcement of foreign claim is
fiscal or administrative
5) Foreign law or judgment is contrary to Good Morals
6) The application of Foreign law will work Undeniable
Injustice to the Citizens of the Forum
7) The Foreign law is Penal in Character
8) The application of the Foreign law might endanger the
Vital Interests of the State
These exceptions fall under 3 main categories:
1: when local law expressly so provides
2: when there is failure to plead and prove the foreign law or
judgment
3: when the case falls under the exceptions to the rule of
comity
1. The foreign law is contrary to an important
public policy of the forum
public policy : no subject or citizen can lawfully commit any act
which has a tendency to be injurious to the public or against the
public good.
public policy technique : court declines to give due course to a
claim existing under a foreign law because it considers the nature
of the claim unconscionable or its enforcement will violate a
fundamental principle of justice, good morals or some deep-
rooted tradition.
dismissal on the ground of public policy is not dismissal on the
merits and plaintiff can go elsewhere to file his claim.
Pakistan Intl Airlines v. Ople
(1990)
FACTS: 2 Filipino stewardess-employees of PIA filed a case for
illegal dismissal against their employer in DOLE. PIA s defense
is that under the contract of employment, the parties agreed
that the EE-ER relationship shall be governed by the contract
(which provided that Pakistan law shall apply) and not the
Labor Code.
HELD: Public Interest standard was applied. Pakistan law cannot
be invoked to prevent the application of Phil labor laws and
regulations to the subject matter of the case. The ER-EE
relationship is much affected with public interest, such that
otherwise applicable Phil laws and regulations cannot be
20
rendered illusory by the parties agreeing upon some other law
to govern their relationship.
Also, PIA did not undertake to plead and prove the contents of
the Pakistan law on the matter; it must therefore be presumed
to be the same as applicable provisions of Phil law.
Criticisms: courts using public policy exception can disregard the
applicable law reached and replace it with forum law to arrive at its
desired result without having to provide the rigorous legal analysis
required to explain the shift. Courts engage in intolerable
affectation of superior virtue .
2. The foreign law is procedural in nature
Procedural or remedial laws are purely internal matters peculiar
only to the State. It would be impractical for the court to adopt the
procedural machinery of another state such as rules on venue,
forms and pleadings. Any individual who submits himself to the
jurisdiction of the law of the forum must follow the forum s rules
of procedure.
Problem: courts are tasked to characterize the problem as to
whether it is substantive or procedural law which can be difficult at
times, ex. If issue involves statute of limitations or statute of frauds
3. Issues are related to property (lex situs)
The universally-accepted rule is that as to immovable property, it is
governed by the law of the place where it is located.
Phil Civil Code also applies lex situs to personal property. It also
applies to cases of sale, exchange, barter, mortgage or any other
form of alienation of property.
WHY? 3 reasons:
a. land & its improvements are within the exclusive control
of the State & its officials are the ones who can physically
deal with them
b. following a policy-centered approach, immovables are of
greatest concern to the state in which they are situated
c. demands of certainty & convenience
4. The issue involved in the enforcement of foreign
claim is fiscal or administrative
State is not obliged to enforce the revenue law of another.
Revenue laws affect a state in matters as vital to its interests as
penal laws. No court ought to hear a case which it cannot
prosecute without determining whether these laws are consonant
with its own notions of what is proper.
Opposition to exception: person should not be permitted to
escape his obligations in maintaining the government by crossing
state lines.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
5. Foreign law or judgment is contrary to Good
Morals
contra bonos mores - acts having mischievous or pernicious
consequences or against true principles of morality.
ex. Hiring for killing, bribery of public officials, marriage
between ascendants and descendants
6. The application of Foreign law will work
Undeniable Injustice to the Citizens of the Forum
7. The Foreign law is Penal in Character
Statute is not penal not by what the statute is called by the
legislature but whether it appears, in its essential character and
effect, a punishment of an offense against the public.
Penal statutes are all statutes which command or prohibit certain
acts, and establish penalties for their violation and even those
which, without expressly prohibiting certain acts, impose a penalty
upon their commission. Revenue laws are not classed as penal laws
although there are authorities to the contrary.
This exception is partly remedied under the international law of
extradition on the basis of jurisdictional cooperation and
assistance.
8. The application of the Foreign law might
endanger the Vital Interests of the State
PART THREE: PERSONAL LAW
IX. Nationality
A. Importance of a Personal Law
The individual s nationality or domicile serves as permanent
connection b/w individual & state. Thus, what is assigned him is a
personal law allowing courts to exercise jd or determine the
governing choice-of-law rule on a specific situation or transaction
involving him.
Personal law follows the individual. It governs transactions affecting
him most (marriage, divorce, legitimacy, capacity to contract).
The need for personal law arose w/ Italian Medieval city states.
Domicile was the only relevant basis for personal law.
Law of nationality first used in Napoleon Code, then in Austrian
Code, which said that laws concerning states & capacity govern all
cities irrespective of residence.
21
Merits & Demerits of Nationality as Personal Law
Merits:
1) used to establish link b/w individual & state, because
laws of each state presumed to be made for an
ascertained population .
-since laws considered physical, moral qualities of
citizens, laws should apply to citizens wherever they are
2) an individual s nationality is easily verifiable from
documents.
Demerits:
1) Problems arise with regard to:
a. stateless persons
b. persons with multiple nationalities
c. states w/ diverse legal systems having no single
national law
2) a person s ties to his nation may be so attenuated if he
has lived in another country.
- unreasonable for his national law to govern him if he
has no shared sense of identity.
Importance of Nationality in the Philippines
Most civil law countries follow the national law theory.
Phil SC: Nationality law theory is a conflict of laws theory by virtue
of which JD over the particular subject matter affecting a person,
such as status of a natural born person, is determined by the
latter s nationality.
P
Art 15 CC expresses the nationality principle.
Art 15: Laws relating to family rights & duties, or to status,
condition & capacity of persons are binding upon citizens of the
Philippines even though living abroad.
This notion that a person s private rights should be determined by
his political allegiance & not by his physical location, owes its origin
to the awareness of national identity born in the French revolution,
B. Determination of Nationality
Each state has prerogative to determine who are its nationals or
citizens by its own municipal law.
The Hague Convention on Conflict of National laws: It is for each
state to determine who are its nationals. This shall be recognized
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
insofar as consistent w/ intl. convention, intl. customs, & the
principles of law generally recognized w/ regard to nationality .
Art 2. Hague Convention: Question on possession of nationality of
a particular state shall be determined in accordance w/ the law of
that state.
Who are Filipino citizens? (Philippine Constitution, Art IV)
1) Those who are citizens of Philippines at time of the
adoption of this Constitution
2) Those whose fathers or mothers are citizens of the
Philippines
3) Those born before January 17, 1973, of Filipino
mothers, who elect Philippine citizenship upon reaching
the age of majority; and
4) Those who are naturalized in accordance w/ law
1. Natural-born Citizens
Two principles w/c may be followed:
jus soli: looks to the law of the place of one s birth to determine
one s nationality (followed in many common law countries).
jus sanguinis: rule of descent or blood. Followed in the Philippines,
articulated in the Constitution.
Natural born citizens: citizens of the Philippines from birth w/out
having to perform any act to acquire or perfect citizenship.
Concept broadened by the Constitution to include those born
before January 17, 1973, of Filipino mothers, who elect Philippine
citizenship upon reaching the age of majority .
Talaroc vs. Uy
(1952)
FACTS: Uy was elected mayor of Manticao, but one of the
defeated candidates filed a petition for quo warranto, alleging
that Uy was a Chinese citizen and therefore ineligible for the
office.
HELD: Uy is a Filipino citizen, following the citizenship of his
mother, who reacquired her Filipino citizenship upon the death
of her Spanish husband. A wife reverts to her former status
upon dissolution of the marriage by the death of her husband,
and where the widowed mother herself thus reacquired her
former nationality, her children (she being their natural
guardian) should follow her nationality with the proviso that
they may elect for themselves upon reaching majority.
22
Co vs. Electoral Tribunal of the House of Representatives
(1991)
FACTS: Ong Jr. ran as representative of the 2nd district of Samar
and was proclaimed the winner. The losing candidates filed
election protests, claiming that Ong Jr. was not a natural-born
citizen.
HELD: Ong Jr. is a natural-born Filipino. He could not have
been expected to have formally or in writing elected citizenship
upon reaching majority, because he was already a citizen. His
mother was a natural-born citizen, and his father was
naturalized when Ong Jr. was only 9 years old. The filing of a
sworn statement or formal declaration is a requirement for
those who still have to elect citizenship. For those already
Filipinos when the time to elect came up, there are acts of
deliberate choice which cannot be less binding. Election is both
a formal and an informal process, and it has been held that
participation in election exercises constitute a positive act of
election of Philippine citizenship.
2. Citizens by Naturalization
Naturalization confers to an alien a nationality after birth by any
means provided by the law.
In the Philippines, naturalization is by judicial method, under CA
473, as amended RA 530.
The naturalization process was relaxed under Marcos regime.
Liberal method, summary inquiry. This, however, is no longer in
force.
Qualifications for Applicants for Naturalization
1) Petitioner must not be less than 21 years of age on date of
hearing of petition
2) He must have, as a rule, resided in the Philippines for a
continuous period of not less than 10 years
o Why the 10 yr residence requirement?
So government can observe applicant s
conduct & ensure he imbibes principles & spirit
of our Constitution.
o When may period be reduced to 5 years?
a) applicant honorably held office under the Phil govt.
or under any of its political subdivisions
b) applicant has established a new industry or
introduced a useful invention in the Phil
c) Married to a Filipino woman
d) Engaged as teacher in a public or recognized
private school not for exclusive instruction of
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
children of persons w/ particular nationality in any of
the branches of education for a period of 2 years
e) Born in the Philippines
3) Must be of good moral character,
& believe in the principles underlying the Phil Constitution &
must have conducted himself in a proper & irreproachable
manner during entire period of residence here in his relations
w/ the constituted government as well as w/ the community in
w/c he is living
o Proper & irreproachable imposes a higher
standard of morality than good moral
character
o How to prove irreproachable conduct ? By
competent evidence such as testimony of 2
character witnesses well known in community
w/ high reputation for probity.
The law requires moral character of highest degree. Being merely
a law-abiding citizen is inadequate.
4) Must own real estate in the Phil worth not less than
P5,000, Phil currency, or must have lucrative trade.,
profession, or lawful occupation
Yu Kian Chie vs. Republic
(1965)
FACTS: Yu Kian Chie, a Chinese national, applied for
naturalization, but the Solicitor General opposed the petition
on the ground that Yu failed to prove that he had a lucrative
income.
HELD: The petition should be denied. His true income (outside
of allowances and bonuses which are merely contingent) is only
P150 a month, which amount does not come up to the
category of lucrative, especially considering that he is a married
man.
o What does lucrative trade, profession, or lawful
occupation mean?
Substantial gainful employment or the obtaining of
tangible receipts
lucrative employment: appreciable margin of income
over expenses in order to provide for adequate support
for himself & his family in case of sickness,
unemployment, disability to work.
o Requirement of ownership of real property: At odds
w/ Art XII, Sec. 7 Phil Constitution: Save in cases of
hereditary succession, no private lands shall be
transferred or conveyed except to individuals
qualified to acquire or hold lands of the public
domain.
23
o Exceptions to prohibition on ownership of land:
a) Save in cases of hereditary succession, no
private lands shall be transferred or conveyed except to
individuals qualified to acquire or hold lands of the public
domain - Testamentary succession is not covered by the
exception provided in the Constitution.
b) Sec. 2, BP 185 allowing a natural-born citizen
who lost his Filipino citizenship to be a transferee of a
private land for residential purposes (not in excess of
1,000 sq. m. urban or 1 ha rural land)
c) SC broadened exception to prohibition by
applying In Pari Delicto doctrine, excluding from the ban
the alien vendee who later becomes a naturalized Filipino
o Additional exceptions thru judicial decisions have been
criticized for inviting violation of the Constitution &
disregarding a fundamental policy of allowing no one to
reap benefits from an unlawful act.
5) Must be able to speak & write English or Spanish & any
one of the principal Philippine languages
6) Must have enrolled his minor children of school age in
any of the public schools or recognized private schools
where Phil history, government & civics are taught or
prescribed as part of curriculum during entire period of
residence required of him, prior to hearing of his petition
for naturalization as citizen.
o Children must learn & imbibe customs, traditions & ideals
of Filipinos so they ll become law-abiding citizenship.
o Compliance & affirmative showing otherwise, denied.
o Non-compliance because of insufficient finances: denied.
Disqualification for Naturalization
General Rule: Burden of proving disqualification is upon the state.
But SC held that petitioner must prove he has none of
disqualifications.
The law must be strictly construed against applicant because
naturalization is a privilege, not a right.
Possible causes for Disqualification:
1) crime involving moral turpitude (act of bareness, vileness,
depravity in private and social life in general; contrary to
conduct of honesty, modesty or good morals)
2) if applicant does not deal with and receive Filipinos in his
home and visit Filipino homes in a spirit of friendship and
equality without discrimination
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
3) applicant s conduct of keeping wife and children in a
neighboring country and only visiting them (lack of
sincere desire to embrace Filipino customs and traditions)
4) if it is not fully established that applicant s nation grants
reciprocal rights to Filipino citizens
C. Procedure for Naturalization
The following are the steps for naturalization:
a) a declaration of intention to become a citizen must first
be filed, unless the applicant is exempted from this
requirement (Secs. 5 and 6, Com. Act No. 473).
b) The petition for naturalization must then be filed (Sec. 8,
Com Act No. 473)
c) After publication in the Official Gazette or newspaper of
general publication the petition will be heard (Sec. 9,
Com. Act No. 473 as amended)
d) If the petition is approved, there will be a rehearing two
years after the promulgation of the judgment awarding
naturalization (Sec. 1, Rep., Act No. 530)
e) The last step will be the taking of the oath of allegiance to
support and defend the Constitution and the laws of the
Philippines (Sec. 11, Com. Act No. 473, amended)
Declaration of Intention
When: One year before petition is filed
With whom: File with office of the Solicitor
General
How: Declaration under oath of bona fide intention to become
Philippine citizen
Exemptions to Filing of Declaration of Intention:
1) persons born in the Philippines and who have received
their primary and secondary education in public or
private schools recognized by the Government, and not
limited to any race or nationality
2) those who have resided continuously in the Philippines
for a period of thirty years or more before filing their
application
3) the widow and minor children of an alien who declared
his intention to become a citizen of the Philippines and
dies before he is actually naturalized.
Requirement is mandatory, absolute prerequisite to naturalization.
Failure is fatal. Void for noncompliance with law.
24
Watt vs. Republic: In cases where petition is exempt, statement to
his exemption and reasons should appear on the petition so the
public maybe prepared to object to any evidence on this regard.
Which court has jurisdiction?
RTC of province has exclusive jurisdiction on which petitioner has
resided for at least one year immediately preceding filing of
person.
Effect of Naturalization on Wife and Children
Section 15, C.A. 473 states that::
Any woman who is now or may hereafter be married to a citizen
of the Philippines, and who might herself be lawfully naturalized
shall be deemed a citizen of the Philippines.
Minor children of persons naturalized under this law who have
been born In the Philippines shall be considered citizens thereof.
A foreign-born minor child, if in the Philippines at the time of
naturalization of the parent, shall automatically become a
Philippine citizen, and a foreign-born minor child, who is not in the
Philippines at the time the parent is naturalized, shall be deemed a
Philippines citizen only during his minority, unless he begins to
reside permanently in the Philippines when still a minor, in which
case, he will continue to be a Philippine citizen even after
becoming of age.
A child born outside of the Philippines after the naturalization of
his parent shall be considered a Philippine citizen, unless within
one year after reaching the age of majority, he fails to register
himself as a Philippine citizen at the American Consulate of the
country where he resides, and to take the necessary oath of
allegiance.
Vivo vs. Cloribel
(1968)
FACTS: Chinese wife, Chua and her minor children arrived in
the Phils from Hkong. Her husband applied for naturalization in
the Phils. Wife and children applied for indefinite extension of
stay. Sec of Foreign Affairs allowed the change of their status
from temporary visitors to special non-immigrants for 2 years.
Commissioner of Immigration refused their extension. The
Foreign Affairs Sec. denied their appeal and they were advised
to leave the Phils. Chua filed action for mandamus to
implement the first ruling of the Secretary but this was denied.
Chua efilled alleging that her husband will be granted
Filipino citizenship so they were also due for eventual
conversion.
HELD: The wife, under Sec. 15 of the Revised Naturalization
Law, will not automatically become a Filipino citizen upon her
husband s naturalization as she must still show that she
possesses all the qualifications and none of the disqualifications
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
for naturalization. But her having misrepresented that she will
stay for a brief period but her intention was really to stay for a
long time, demonstrated her incapacity to satisfy the
qualifications under Sec. 2 which provides that she must be of
good moral character and must have conducted herself in a
proper and irreproachable manner during the entire period of
her stay. She also failed to satisfy the requirement of
continuous residence for 10 years in the Philippines (actual stay:
Oct. 16 60 June 62)
As to the children: The law requires that they must be dwelling
in the Philippines at the time of the naturalization of the parent.
Since prior to their father s naturalization, they were already
required to leave the country, they cannot be said to be
lawfully residing here.
Also, they cannot be allowed to extend their stay. The period of
stay of temporary visitors cannot be extended without first
departing form the Islands. They cannot also claim that they
should be allowed extension until the father s oath taking
because their allowed stay was for a definite period up to a
fixed day.
Moy Ya Lim vs. Commissioner of Immigration
(1971)
FACTS: In 1961, Lau, a Chinese, was permitted to stay in the
Philippines for 1 month to visit her grandfather. After repeated
extensions, she was allowed to stay until Feb. 1962. However,
on Jan. 1962 she married a Filipino. Commissioner ordered her
to leave and sought her deportation. Spouses filed appeal in
SC.
HELD: Under Sec. 15 of CA 473, an alien woman marrying a
Filipino, native born or naturalized, becomes ipso facto a
Filipina provided she is not disqualified to be a citizen of the
Phils under Sec. of the same law. Likewise, an alien woman
married to an alien who is subsequently naturalized here
follows the Philippine citizenship of her husband the moment
he takes his oath as Filipino, provided, that she does not suffer
from any of the disqualifications under Sec. 4.
This ruling reversed a prior decision of the SC (Burca vs. Republic)
which held that the alien woman married to a Filipino must first file
a petition for citizenship alleging that she possesses all the
qualifications and none of the disqualifications mandated by law.
No Judicial Declaration of Philippine Citizenship
A declaration of Phil citizenship may not be granted in an action
for declaratory relief nor under the Civil Code provision (Art. 412)
on correction of entry in the Civil Registry.
But the rule was relaxed in later decisions. A petition for correction
of errors in the entry of the Civil Registry even for a change of
citizenship or status may be granted provided that an appropriate
25
action is made wherein all parties who may be affected by the
entries are notified and represented and there is a full blown
adversary proceeding.
Tan Yu vs. Republic: There can be no action or proceeding for the
judicial declaration of the citizenship of an individual.
D. Loss of Philippine Citizenship
CA 63, as amended by RA 106, provides that a Filipino citizen may
lose his citizenship in any of the following ways:
1) Naturalization in foreign countries
Frivaldo vs. COMELEC
(1989)
FACTS: Frivaldo was elected governor of Sorsogon and
assumed office. The League of Municipalities of Sorsogon filed
for annulment of his election on the ground that he is a US
citizen and therefor incapable of holding public office. Frivaldo
admitted that he was a naturalized US citizen in 1983 but he
underwent naturalization only to protect himself from then
Pres. Marcos. Sol Gen supported respondent s contention that
he is a US citizen because he did not repatriate himself after his
naturalization in the US
HELD: Frivaldo lost his Filipino citizenship. If Frivaldo really
wanted to disavow his US citizen citizenship & reacquire Phil.
citizenship, he must do so under our laws. Under CA 63, Phil.
citizenship may be reacquired through:
1. direct act of Congress
2. naturalization
3. repatriation
The alleged forfeiture of US citizenship because of his active
participation in the elections is between him and the US; it
could not have resulted to automatically restoring his Filipino
citizenship which he earlier renounced. At most, he could be
said to be a stateless individual. Also, although the Special
Committee to hear repatriation cases under LOI 270 has not
yet been convened, F should have waited for such or seek
naturalization by legislative or judicial process.
Frivaldo vs. COMELEC
(1996)
FACTS: Frivaldo took his oath of allegiance under PD 725 on
June 30 95, much later than he filed his certificate of
candidacy. He now claims Filipino citizenship through a valid
repatriation
HELD: Frivaldo reacquired his Filipino citizenship and is now
eligible to assume the office as governor. Law does not specify
any particular date or time when candidate must possess
citizenship unlike that of residence and age. It can also be said
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
that Frivaldo s repatriation retroacted to the date of his filing
his application in Aug. 1994.
Labo vs. COMELEC
(1989)
FACTS: Labo was elected mayor of Baguio. Lardizabal filed a
petition for quo warranto alleging that Labo is not a
citizen.COMELEC declared that he was a citizen but the CID
ruled that he is not since the Australian Govt said that he is still
a naturalized Australian citizen.
HELD: Labo is not a citizen of the Phils because he lost the
same by performing the ff acts under CA 63:
1. naturalization in a foreign country
2. express renunciation of citizenship
3. subscribing to an oath of allegiance to support the Consti
and laws of a foreign country.
Even if it is to be assumed that his naturalization was annulled
because his marriage to an Australian was found to be
bigamous, this does not automatically restore his citizenship.
He must reacquire it by direct act of Congress, by repatriation
or by naturalization. None of these methods were done. Under
PD 725, repatriation may be done by applying with the Special
Committee on Naturalization and if the application is
approved, applicant must make an oath of allegiance to the
Republic of the Phils before a certificate of registration is issued
by the CID.
2) Express renunciation of citizenship
Aznar vs. COMELEC
(1990)
FACTS: Osmea filed a COC for provincial governor of Cebu
but was declared ineligible (upon petition of Aznar) for being a
US citizen, as shown by an Alien Certificate of Registration.
Osmea alleges that he is a Filipino citizen being the child of a
Filipino, holder of a Phil. passport, a resident of the Phils. since
birth, and a registered voter.
HELD: Osmea is a Filipino citizen. Aznar failed to present
proof that O lost his citizenship by any of the modes under CA
63; he merely relied in the Alien Certificate of Registration in
concluding that O has been a naturalized US citizen. Phil.
courts are only allowed to determine who are Filipino citizens,
but have no power to determine who are persons considered
as American citizens under US laws. Also, the mere fact that he
has an ACR does not mean that he is no longer a Filipino; the
renunciation needed to lose Phil. citizenship must be
express.
3) By subscribing to an oath of allegiance to support the
constitution or laws of a foreign country upon attaining
twenty one years of age or more, subject to certain
exceptions
26
4) by rendering service to, or accepting commission in, the
armed forces of a foreign country, subject to certain
exceptions
5) by having been declared by competent authority, a
deserter of the Philippine armed forces in time of war,
unless subsequently, a plenary pardon or amnesty has
been granted
6) in the case of a woman, upon her marriage to a
foreigner, if by virtue of the laws in force in her husband s
country, she acquires his nationality
7) cancellation of the certificate of naturalization
The Judge may cancel the naturalization certificate issued and the
registration in the Civil Registry, upon motion made in proper
proceedings by Sol Gen, on any of the following grounds:
a) if it shown that said naturalization certificate was
obtained fraudulently or illegally;
b) if the person naturalized shall, w/in the 5 yrs next
following the issuance of said certificate, return to his
native country or to some foreign country & establish his
permanent residence there;
Provided that the fact that person naturalized remain for 1
year in his native country of former nationality, or 2 years in
any country, shall be considered as prima facie evidence of his
intention of taking up his permanent residence therein
c) If the petition was made on an invalid declaration of
intention
d) If it is shown that the minor children of the person failed
to graduate from recognized public or private high
school where the required subjects are taught, through
the fault of the parents either by neglecting to support or
by transferring them to another school.
Certified copy of decree canceling certificate forwarded to the
Office of the President & the Solicitor General.
e) If it is shown that the naturalized citizen allowed himself
to be used as dummy in violation of the Constitution or
law requiring Philippine citizenship as a requisite for
exercise, use or enjoyment of a right, franchise or
privilege.
Only a Grant of Political Privilege:
Judgment directing issuance of certificate of naturalization is a
mere grant of political privilege. Neither estoppel nor res judicata
may be invoked to bar the state from initiating an action for
cancellation or nullification of certificate of naturalization issued.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
If shown to have been obtained by fraud or illegal means, the
certificate may be cancelled. Decision in naturalization case does
not constitute res judicata.
Republic vs. Li Yao
(1992)
FACTS: Li Yao was a naturalized Filipino citizen, but the Sol Gen
filed a petition to cancel his certificate of naturalization on the
ground that he obtained such certificate through fraudulent
means. One of the grounds was tax evasion.
HELD: A certification of naturalization may be cancelled if it was
subsequently discovered to have been obtained by misleading
the court upon any material fact. And a naturalization
proceeding is not a judicial adversary proceeding, such that a
decision therein is not res judicata as to any matter that would
support a judgment canceling a certificate of naturalization on
the ground of illegal or fraudulent procurement thereof.
E. Problems in Applying the Nationality Principle
1. Dual or Multiple Citizenship
Each state determines who its nationals are in accordance w/ the
rule in the Hague Convention on Conflict of National Laws.
Questions on WON a person possesses the nationality of a certain
state are to be determined in accordance w/ the state s internal
law.
It is possible that a person can be claimed as national of 2 or more
states.
Situations w/c may result to dual nationality:
Application of jus soli & jus sanguinis
1) Child born of
o parents who are nationals of country applying
jus sanguinis
o in a country applying jus soli
has dual nationality
2) Filipino citizen who marries an alien may acquire
citizenship of his or her spouse if the spouse s national
law so allows.
But a Filipino citizen who marries an alien shall retain Philippine
citizenship, unless by his or her act or omission, he is deemed
under the law, to have renounced it by taking an oath of allegiance
to the spouse s country or by express renunciation.
3) Another instance of dual or multiple nationality is the
case of an individual who is naturalized citizen of another
state but has not effectively renounced his former
nationality.
27
In determining rights of an individual who may claim multiple
nationality in a third state, the ICJ applied principle of effective
nationality.
Nottebohm Case
(1955)
FACTS: Liechtenstein brought a case against Guatemala in the
ICJ for breach of its obligations under international law and
asking for reparations in behalf of Nottebohm. It is the position
of Liechtenstein that Nottebohm acquired Liechtenstein
citizenship which would entitle him to its diplomatic protection.
HELD: Liechtenstein is not entitled to extend protection to
Nottebohm, because when N applied for naturalization, there
is nothing to indicate that such application was motivated by
any desire to dissociate himself from the Government of his
country, Germany. He had been settled in Guatemala for 34
years, and it was the main seat of his interests and business
activities.
In contrast, his actual connections with Liechtenstein were
extremely tenuous. No settled abode and no prolonged
residence at the time of application; the application shows that
he was a mere visitor and his visit is of a transient character.
There is an absence of any bond of attachment between N and
L and, on the other hand, the existence of a long-standing and
close connection between him and G, a link which his
naturalization in no way weakened.
Oh Hek How vs. Republic
(1969)
FACTS: Oh Hek How, a Chinese citizen, applied for
naturalization in the Philippines which was granted. A certificate
of naturalization was issue in his favor but the Government
appealed, claiming that it was issued before the Minister of the
Interior of Nationalist China issued the permission for a valid
renunciation of Chinese citizenship. Oh Hek How argues that
such permission is not among the requirements under our law
for the naturalization of an alien.
HELD: The permission of the Minister of the Interior of China is
required before a certificate of naturalization can be issued in
favor of Oh Hek How. The question of how a Chinese citizen
may strip himself of that status is necessarily governed by the
laws of China, not that of the Philippines. As a consequence, a
Chinese national cannot be naturalized as a citizen of the
Philippines, unless he has complied with the laws of China
requiring previous permission of its Minister of the Interior for
renunciation of nationality.
2. Statelessness
Understood in two senses:
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
a) De jure stateless person: refers to an individual who has
been stripped of his nationality by his own former
government w/out having opportunity to acquire
another.
Problem of statelessness began during WW II &
worsened under Nazi regime in Germany & in USSR.
b) De facto stateless person: individual possessed of a
nationality but whose country does not give them
protection outside their own territory.
- commonly called refugees .
Vietnam War: Masses of people escaped from Vietnam, Cambodia,
and Laos without any travel documents, identity papers or any
form of identification normally granted by government.
Conventions to Alleviate Problems of Stateless Persons:
1) 1951 Geneva Convention on Status Refugees
-provided some basic rights of stateless persons
2) 1954 UN Conference on the Elimination or Reduction of
Future Statelessness
3) Convention on the Reduction of Statelessness
- enumerates conditions under w/c an individual would not
lose his or her nationality upon the risk of becoming stateless
should a new nationality not be proved: i.e. divorce, adoption,
naturalization, expatriation.
Convention also prohibits states from depriving nationals of
identity:
1) as punishment or
2) as discriminatory instrument for political, religious or
ethnic reasons
Major objective: Remedy situation of children born w/out acquiring
any nationality, i.e. when a child is born in a country following jus
sanguinis principle of parents who are citizens of a jus soli country.
Convention mandates that:
*jus sanguinis country grant its nationality to a person born w/in its
territory if he would otherwise be stateless.
*jus soli country to extend its nationality to a person who would
otherwise be considered stateless when one of his parents is a
citizen of the contracting state.
Kookooritchkin vs. Solicitor General
(1948)
FACTS; Kookooritchkin, a native-born Russian who claims to be
a stateless refugee, filed a petition for naturalization. The
28
petition was granted, for which the SolGen appealed, saying
that Kookooritchkin is not a stateless person.
HELD: K is a stateless person. His testimony, aside from being
uncontradicted, is supported by the well-known fact that the
ruthlessness of modern dictatorships has scattered throughout
the world a large number of stateless refugees or displaced
persons, without country and without flag. Knowing the history,
nature and character of the Soviet dictatorship, it would be
technically fastidious to require further evidence of K s claim
that he is stateless than his testimony that he owes no
allegiance to the Russian Communist government and, because
he has been at war with it, he fled from Russia to permanently
reside in the Philippines.
X. Domicile
A. Definition
Municipal law concept of domicile (Art. 50, CC):
natural persons: the place of habitual residence
juridical persons: determined by the law creating or recognizing it;
and in its absence shall be understood as the place where their
legal representation or place of business is.
Conflict-of-laws definition of domicile (Restatement): the place with
which a person has a settled connection for certain legal purposes,
either because his home is there or because that place is assigned
to him by law.
Justice Story: the place of true, fixed permanent home and
principal establishment, and to which, whenever he is absent, he
has the intention of returning.
A person may live in a place where he is not domiciled. To acquire
a domicile, there must be concurrence of
1) intention to make it one s domicile and
2) physical presence.
Residence simply requires bodily presence. It is a relatively more
permanent abode of a person, while residence applies to a
temporary stay of a person in a given place (Koh vs. CA).
Domicile is permanent in nature; it is not as transient and
temporary as residence.
2 Requisites for domicile:
1) physical presence
2) intent actual intent, not merely floating intent
In order to establish new domicile, it is not necessary to
prove intent to stay indefinitely, as long as the intent to
abandon the old domicile is apparent.
In domicile of choice, intent is important
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
In constructive domicile, there is no intent because the
domicile is chosen by the law for the person
The motive for leaving and the length of stay in the new
domicile is not relevant in the determination of domicile
of choice
Habitual residence: bridge between residence and
domicile
_______________
Caasi vs. CA
(1990)
FACTS: Miguel ran for mayor of Bolinao and won. His
opponent filed a petition for disqualification, alleging that
Miguel is a green card holder and hence, a permanent resident
of the US and not of Bolinao.
HELD: Miguel s possession of a green card disqualified him
from running for mayor. His application for immigrant status
and his possession of a green card are conclusive proof that he
is a permanent resident of the US despite his occasional visits
to the Philippines.
A candidate who is a green card holder must have waived his
status as a permanent resident or immigrant of a foreign
country in order to be qualified to run for elective office in the
Philippines. In this case, there is no proof that he had waived
his status as a permanent resident or immigrant of the US
before he ran for election as mayor of Bolinao; hence he was
disqualified to run for that office.
Uytengsu vs. Republic
(1954)
FACTS: Uytengsu was born in the Philippines of Chinese
parents. He went to the US to study; but in one of his vacations
in the Philippines he applied for naturalization, during the
pendency of which he returned to the US to finish his studies.
Upon his return, his application was granted; the Government
appealed the grant because under the law an applicant for
naturalization is required to reside continuously in the Phils.
from the date of filing of the petition up to the time of his
admission to Philippine citizenship. Uytengsu s defense is that
since he has been domiciled in the Philippines during the
period of his application, he was also a resident for that period.
HELD: Residence and domicile each has, in strict legal
parlance, a meaning distinct and different from each other. The
essential distinction between resident and domicile is this: the
first involves the intent to leave when the purpose for which he
has taken up abode ceases, while the other has no such intent,
the abiding is animo manendi. They are not to be held
synonymous; residence is an act, while domicile is an act
coupled with intent. The question of domicile is not involved in
29
determining whether a person is a resident of a state or
country.
B. Merits and Demerits of Domicile
Merits:
1) preferred primary connection between a person and a
state because it satisfies the very purpose for having a
personal law (in common law countries) it provides an
adequate basis for him to exercise rights therein and the
state to impose duties on him
2) also suitable for countries with a federal system of
government the law of the domicile is the law of the
place where the individual lives
Demerits:
1) one s domicile is not ascertainable without first resorting
to the courts to establish whether or not there is animo
manendi
2) the notion of domicile differs widely in different states
(some distinguish between domicile and residence;
others attribute different meanings of domicile for
different purposes)
3) if the law of domicile of origin is given overriding
significance, it may create the problem of attenuated
connection (similar to the use of nationality as personal
law)
The Philippines follow the nationality law theory, but there are
instances when our courts refer to the domicile of an individual in
order to determine his rights or obligations. Example is
1) when the litigant is an alien whose country of origin follows
the domiciliary principle; or
2) where the situation concerns stateless persons, or those
with dual or multiple nationalities; or
3) when an alien domiciled in the Philippines executes a will
abroad.
C. General Rules on Domicile
1) No person shall be without a domicile; his domicile of
origin prevails until the acquisition of a new one.
2) A person cannot have two simultaneous domiciles (a
person can have only one domicile for a given purpose
or a given time under the law of a particular state, but it
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
should not be assumed that that determination will be
binding on other states or on the same state for other
purposes).
3) Domicile establishes a connection between a person and
a particular territorial unit.
4) The burden of proving a change of domicile is upon
whoever alleges that a change has been secured.
Romualdez-Marcos vs. COMELEC
(1995)
FACTS: Imelda Marcos filed her Certificate of Candidacy for
representative of 1st District of Leyte. A petition to disqualify her
was filed on the ground that she lacked the 1-yr resident
requirement as provided for in the Constitution. In her COC,
she placed 7 months as length of residence.
HELD: For purposes of election law, residence is synonymous
with domicile. Mere absence of an individual from his
permanent residence without the intention to abandon it does
not result in a loss or change of domicile.
While Marcos held various residences for different purposes
during the past four decades, none of these purposes
unequivocally point to an intention to abandon her domicile of
origin in Tacloban, Leyte. She did not lose her domicile of
origin upon her marriage to Pres. Marcos; what she gained was
actual residence.
Ujano vs. Republic
(1966)
FACTS: Ujano was a naturalized US citizen who returned to the
Philippines as a visitor and petitioned to reacquire Philippine
citizenship. The petition was denied because he did not have
the required residence.
HELD: Residence, for naturalization purposes, has been
interpreted to mean the actual or constructive permanent
home or domicile. He cannot be said to have established his
domicile here although he is actually present because his
allowed stay as a visitor is only temporary and he must leave
when the purpose of his coming is done.
In re Dorrance s Estate
(1932)
FACTS: Dorrance was born in Pennsylvania. He worked and
resided in New Jersey, transferred to Philadelphia and then
returned to New Jersey. Later he was able to buy an estate in
Pennsylvania, where he stayed with his family until his death.
During his lifetime he expressed that he intends to remain a
domiciliary of New Jersey. Pennsylvania assessed inheritance
tax on his estate.
30
HELD: He was domiciled in Pennsylvania at the time of his
death. A man cannot retain a domicile in one place when he
has moved to another, and intends to reside there for the rest
of his life, by any wish, declaration or intent inconsistent with
the facts of where he actually lives and what he means to do.
D. Kinds of Domicile
3 Kinds of Domicile:
1) Domicile of origin: a person s domicile at birth. A
legitimate child s domicile is that of his father, while an
illegitimate child s is that of his mother.
2) Domicile of choice: also called voluntary domicile, is the
place freely chosen by a person sui juris. There must be
concurrence of physical presence in the new place and
unqualified intention to make that place one s home.
A problem deciding the issue of domicile of choice is the degree of
permanence of abode.
Difference between domicile of origin and domicile of choice: lies
in a) conditions necessary for abandonment and b) capacity for
revival.
Reverter or revival doctrine: presumption that domicile of origin
revived once the domicile of choice is given up, before a new one
is required.
Velilla vs. Posadas
(1935)
FACTS: Velilla, the administrator of the estate of Moody,
appealed the inheritance tax assessed against the estate on the
ground that the decedent was not domiciled in the Philippines.
Moody went to Calcutta and Paris before his death, and he
died in India.
HELD: He was a domiciliary of Manila. Domicile in the Civil
Code is defined as the place of habitual residence, which was
Manila in the CAB. There was no statement from Moody, oral
or written that he adopted a new domicile while he was absent
from Manila. To establish abandonment, he must show his
deliberate and provable choice of new domicile coupled with
actual residence and declared or proved intent that it should
be his permanent abode. This was not proven.
White vs. Tennant
(1888)
FACTS: White and his wife lived in West Virginia, but agreed to
sell their house there with the declaration, intent and purpose
of making Pennsylvania their home. Upon reaching Penn., they
had to go back to West Va. on account of the wife s illness but
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
White went to Penn. everyday to look after his stock. Upon his
death, the administrator paid the whole of the estate to the
widow according to West Va. law. However, if Penn. law was
applied, of the estate would go to White s siblings. The law
of his domicile governs the distribution of his estate.
HELD: Pennsylvania was his domicile at the time of his death.
Two things must concur to establish domicilethe fact of
residence, and the intention of remaining. These two must exist
in combination. When one domicile is definitely abandoned,
and a new one selected and entered upon, length of time is
not important; one day will be sufficient, provided the animus
exists.
3) Constructive domicile: domicile assigned to persons
incapable of choosing their own domicile by operation of
law. Includes minors, mentally disabled, married women.
Minors or infants are indubitably incapable of choosing their own
domicile. Their domicile automatically changes when their father s
domicile changes. Minors take the domicile of their mother upon
the death of their father.
A person who has a mental disability is also assigned a
constructive domicile. It is presumed that a person with a mental
disability cannot acquire a domicile of choice because of his
inherent inability to decide where to make his home.
Special Problems in Domicile of Choice vis--vis Constructive
Domicile
1) domicile of people kept under physical or legal
compulsion
2) domicile of married women seeking to acquire separate
domicile from their husbands
People under Compulsion: traditional view is that he is in that place
not as a result of his volition. Examples are military personnel,
prisoners and people with disabilities who are confined in
institutions.
Caraballo vs. Republic
(1962)
FACTS: Caraballo, an American staff sergeant in the US Air
Force stationed in Clark Air Base, filed a petition for adoption of
a Filipino child. The petition was denied on the ground that he
was not qualified to adopt, him being a non-resident alien.
HELD: Actual or physical presence or stay of a person in a
place, not of his free and voluntary choice and without intent to
remain there indefinitely, does not make him a resident of the
place. Caraballo is disqualified to adopt because he is a non-
31
resident alien. His stay in the Philippines is only temporary, and
is merely the result of his assignment as staff sergeant.
In recent decisions, courts have held that a person under
compulsion should not be barred from proving that he has
developed the required unqualified intention to establish his
permanent abode in such place. The fact of compulsion is reduced
to just one of the factors in determining whether intent, in fact,
exists.
Married Women: based on the concept of unity of identity of
spouses, the wife was presumed to take the domicile of the
husband.
Go Chen and Go Lek vs. Collector of Customs
(1932)
FACTS: Tan Bon, a Chinese citizen, entered the Philippines as
the wife of a Chinese merchant. She asked her minor children
from a previous marriage to join her here, but they were not
allowed entry.
HELD: The minor children cannot enter the Philippines. A
Chinaman s Chinese wife and her minor children do not enter
the Philippine Islands through their own right, but by virtue of
the right of the husband and father. Since Tan Bon did not
enter the Philippines by her own right but by virtue of her
husband, she is not entitled to bring in her minor children by
another Chinaman who never had legal residence in the
Archipelago. The mere fact of their being children of Tan Bon
confers on them no right of entry, inasmuch as she herself did
not enter of her own right, and they cannot base their right on
hers.
De La Vina vs. Villareal and Geopano
(1920)
FACTS: Geopano filed a complaint in CFI Iloilo against de la
Vina, her husband, for divorce on the ground of infidelity. De la
Vina opposed, saying that CFI Iloilo has no JD over the case
considering that he resides in Negros, such that Geopano must
also be considered a Negros resident, because the domicile of
the wife follows that of the husband.
HELD: CFI Iloilo has JD. Where the husband has given cause for
divorce, the wife may acquire another and separate domicile
from that of her husband.
*There are exceptions to the rule that the domicile of the wife is
determined by that of her husband, one of which is that the
wife may acquire another and separate domicile from that of
her husband where the theoretical unity of husband and wife is
dissolved, as it is by the institution of divorce proceedings; or
where the husband has given cause for divorce; or where there
is a separation of the parties by agreement, or a permanent
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
separation due to desertion of the wife by the husband or
attributable to cruel treatment on the part of the husband; or
where there is a forfeiture by the wife of the benefit of the
husband s domicile.
Modern view (married women): dispenses with the presumption
that the wife s domicile is the same as her husband s. Each party
establishes his or her own domicile completely independent of
each other. As a result, the wife need not show that her husband
has given cause for divorce or legal separation to have a separate
domicile.
XI. Principles on Personal Status and Capacity
A. Definition
Personal capacity
Includes both condition and capacity
Embraces matters as the beginning and end of
personality, capacity to have rights, capacity to engage in
legal transactions, protection of personal interests, family
relations, also transactions of family law such as marriage,
divorce, separation, adoption, legitimation and
emancipation, and succession.
Juridical capacity: fitness of a man to be the subject of legal
relations
Capacity to Act: power to do acts with legal effects
ART. 37, Civil Code:
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.
In case of Filipinos, Art. 15 of the CC states that personal status and
capacity follows the nationality principle.
In case of aliens, courts may refer to their national law or
domiciliary law.
Recto vs. Harden
(1959)
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.
32
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.
B. Legislative Jurisdiction Distinguished from Judicial
Jurisdiction
Status once established by the personal law of the party, is given
universal recognition.
Status, capacity, and rights and duties, brought into existence by
State A and conferred in a natural or juridical person under its
jurisdiction, should be recognized by State B, without any
exception or qualification imposed by the latter, except by some
definite or protected rule of municipal law.
- Aliens can sue and be sued in our courts even on issues
relating to status and capacity. However, the applicable law is
their personal law.
Barnuevo vs. Fuster
(1913)
FACTS: Fuster and Yanez separated. After 10 years, Y filed for
divorce on the ground of F s adultery. Court granted decree
of divorce. Fuster contests jurisdiction of the court to issue the
said decree.
HELD: Phil court has jurisdiction. The authority and jurisdiction
of courts are not a matter of private law of persons but of the
public or political law of the nation. The jurisdiction of courts
and other matters of procedure are of public nature and are
submitted to the territorial principle.
Note: The doctrine is no longer controlling. Divorce is considered a
violation of public policy so that courts cannot issue the same.
C. Beginning and End of Personality
The determination of the exact moment personality begins is
referred to the individual s personal law.
Art. 40, CC
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 article.
Art. 41, CC
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 7 months, it is not
deemed born if it dies within 24 hours after its complete delivery
from the maternal womb
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Geluz vs. CA: SC did not allow for recovery of damages for the
injury and death of a conceived child which is still in the mother s
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.
Civil personality is commenced at birth and is extinguished by
death. A declaration of death issued by a competent court is
considered valid for all purposes.
Limjoco vs. Intestate Estate of Fragante: HELD: SC ruled that the
estate of a deceased applicant can be granted a CPC to avoid
injustice or prejudice resulting from the impossibility of
exercising such legal rights & fulfilling such legal obligations of
the decedent as survived after his death unless the legal fiction,
that the estate is considered a person, is indulged.
D. Absence
The domestic laws of states do not treat absentees alike.
Three ways of dealing with the problem:
1. there is a rebuttable presumption that a person is dead after
he has been absent for a number of years
2. a person s unexplained absence is judicially investigated and
established which results in legal effects similar to those of
death
3. a judicial decree shall have to be issued declaring a person
dead before legal effects of death can take place
*Phil law follows the rebuttable presumption (1).
Art. 390, CC
After the absence of 7 years, it being unknown whether or not the
absentee still lives, he shall be presumed dead for all purposes,
except for those of succession.
The absentee shall not be presumed dead for the purpose of
opening his succession till after the absence of 10 years. If he
disappeared after the age of 75 years, an absence of 5 years shall
be sufficient in order that his succession may be opened.
Art. 391, CC
The ff. shall be presumed dead for all purposes, including the
division of estate among the heirs:
(1) a person on board a vessel lost during sea voyage, or an
airplane which is missing, who has not been heard of for 4
years since the loss of the vessel or airplane.
(2) A person in the armed forces who has taken part in war and
has been missing for 4 years
33
(3) A person who has been in the danger of death under other
circumstances and his existence has not been known for 4
years
However, for specific purposes, our laws require that a declaration
of death be issued before certain legal effects of death arise ex.
Contracting a subsequent marriage but the periods are reduced to
2 years.
The legal effects of absence and restrictions on his capacity are
determined by his personal law.
E. Name
A person s name is determined by law and cannot be changed
without judicial intervention.(Art. 376, CC) Case law shows that
courts have allowed petitions on grounds that the name
1. is ridiculous or tainted with dishonor or extremely difficult to
pronounce
2. when the change is necessary to avoid confusion
3. when the right to a new name is a consequence of change in
status
4. a sincere desire to adopt a Filipino name to erase signs of a
former alien nationality which unduly hamper social and
business life
Confusion as to one s paternity has been held to justify the
court s denial of a petition for change of name.
Whether an alien s change of name is valid depends solely on his
personal law.
F. Age of Majority
The legal disability and rights attached to minority are aspects of
personal status. It is the individual s personal law which
determines whether he has reached the age of majority.
RA 6809 lowered the age of majority from 21 18 years but
parental consent for contracting marriage is still required until the
age of 21.
G. Capacity
A person s ability to act is governed by his personal law. Rules on
capacity of an individual to bind himself by contract with other
persons or by unilateral acts are the very core of the rules that
identify his legal position. The incapacities attached to his legal
status go with him wherever he is.
The general rule on capacity is subject to several exceptions. These
include liability in tort, which is subject to the law of the place of
the tort and the restrictions on the contracting capacity of a
married woman.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

5) cannot be abrogated, amended or terminated by one or

both parties at will
Insular Government vs. Frank 6) nature & consequences as well as incidents are governed
(1909) by law & not subject to stipulation by parties unlike
FACTS: Insular Govt entered into an employment contract with ordinary contracts
Frank in Illinois when he was still a minor under Phil law but not 7) violation of marital obligations may give rise to penal or
under Illinois law. Frank breached the contract so IG sued him. civil sanctions while breach of conditions of ordinary
contract can be ground for an action for damages
HELD: Illinois law should apply. Matters bearing upon the
1. Philippine Policy on Marriage and the Family
execution, interpretation and validity of a contract are
determined by the law of the place where the contract is made.
Art XV. Sec. 2: Marriage as an inviolable social institution, is the
foundation of the family & shall be protected by the state.

This case should have been resolved as a capacity case instead of

Presumption of validity: The Philippines establishes a presumption
as a contract case (characterization).
of validity to give stability to marriage especially in Conflicts of Law
problems.

PART FOUR: CHOICE OF LAW PROBLEMS

Art 220. CC. In case of doubt, all presumptions favor the solidarity
of the family. Thus every intendment of law or facts lean toward
the validity of marriage, the indissolubility of marriage bonds,
XII. Choice of Law in Family Relations
legitimacy of children, the community of property during
marriage
Man & woman may decide to marry in a country other than that of
their nationality & come home. Issue of validity of marriage & legal
Goal: Guide courts, strengthen family, & emphasize state interest
consequences may be raised (Legal consequences such as
in its preservation
personal & property relations, status & rights of children, use of
surname & right to inherit).
2. Extrinsic Validity of Marriage
Family law is an area of substantive law which reflects strong
policies of state often based on values highly held by society.
This is governed by lex loci celebrationis.
Family relations give rise to grave individual & societal concerns.
Extrinsic validity covers questions on formalities or external conduct
required of parties for legally valid marriage.
A. Marriage
Art 2. Hague Convention on Celebration & Recognition of Validity
Family Code Definition:
of Marriages: Formal requirements governed by law of state of
Art 1. Marriage is a special contract of permanent union b/w man
celebration.
& woman entered into in accordance w/ law for the establishment
General rule: All states recognize as valid marriages celebrated in
of conjugal & family life.
foreign countries if the formalities prescribed there were complied
with.
It is the foundation of the family & an inviolable social institution
whose nature, consequences & incidents are governed by law &
PHILIPPINES, Formal Requirements of Marriage
not subject to stipulation except that marriage settlements may fix
property relations during the marriage w/in limits provided by this
Art 3. FC sets the ff requirements:
Code.
1) Authority of solemnizing officer
Juxtaposed w/ Art15 CC, w/c states that questions on family rights,
2) Valid marriage license except in cases provided in Ch 2
duties, status, conditions & capacity are governed by lex nationalii,
of this title
the importance of such definition is realized.
3) Mariage ceremony w/c takes place w/ the appearance of
contracting parties before the solemnizing officer & their
Marriage is a special contract as distinguished from an ordinary
personal declaration that they take each other as
contract:
husband & wife in the presence of not less than 2
witnesses of legal age
1) entered into by a man & a woman
2) both at least 18 years of age
Lex Loci Celebrationis (expressed in Art 26 FC):
3) solemnized by a person specifically authorized by law
4) a permanent union unless one party dies, or marriage is
annulled or declared void in special circumstances
34
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
All marriages solemnized outside the Philippines in accordance
w/ the laws in force in the country where they were solemnized,
and valid there as such, shall also be valid in this country
Adong vs. Cheong Seng Gee
(1922)
FACTS: The late Cheong Boo s estate is being claimed by
Cheong Seng Gee, who says that he is the legitimate child of
the decedent with Tan Dit, whom the decedent allegedly
married in China.
HELD: The validity of the Chinese marriage cannot be
recognized. There is no competent testimony what the laws of
China in the Province of Amoy concerning marriage were in
1895. There is lacking proof so clear, strong and unequivocal to
produce a moral conviction of the existence of the alleged
Chinese marriage.
People vs. Mora Dumpo
(1935)
FACTS: Dumpo married Hassan, and then married Sabdapal
without having her previous marriage annulled. As a defense to
an allegation of bigamy, Dumpo claimed that her 2nd marriage
was void because her father did not consent thereto.
HELD: Dumpo is not guilty of bigamy. The 2nd marriage was
null and void because the consent of her father was not
obtained. It is an essential element of bigamy that the alleged
2nd marriage, having all the essential requisites, would be valid
were it not for the existence of the first.
Wong Woo Yu vs. Vivo
(1935)
FACTS: Wong Woo Yu alleged before the Board of Special
Inquiry that she was allegedly married to a Filipino, Blas, in a
ceremony in China. The new Board ordered Wong to be
excluded from the country, on the ground that her marriage to
Blas was bereft of substantial proof.
HELD: Wong should be excluded. Art.15 of our Civil Code
provides that the laws relating to family rights or to the status
of persons are binding upon Philippine citizens, though living
abroad. Even if the marriage of Wong to Blas before a village
leader is valid in China, the same is not one of those authorized
in our country. Under Sec. 4 of Gen. Orders 68 (now Art. 71
CC), a marriage contracted outside the Philippines which is
valid under the law of the country in which it was celebrated is
also valid here; but there was no proof presented on the
applicable law of China. Therefore it may be presumed to be
the same as our law.
35
Apt vs. Apt
(1947)
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.
Exceptions to Lex Loci celebrationis: The Civil Code (Art 71)
enumerates bigamous, polygamous or incestuous marriages as
exceptions to the lex loci celebrationis rule.
The Family Code (Art 26) widens these exceptions.
A foreign marriage although valid in the foreign country where it
was entered into will be void in the Philippines if:
1) either or both parties are below 18
2) it is bigamous or polygamous
3) a subsequent marriage is performed w/out recording in
the Civil Registry & registry of Properties the judgment of
annulment or declaration of nullity of first marriage, the
partition o& distribution of the properties of the spouses
& the delivery of presumptive legitimes
4) there was a mistake as to identity of the contracting party
5) one of the contracting parties was psychologically
incapacitated to comply with the essential marital
obligations
6) the marriage is incestuous
7) marriage is void by reason of public policy
Note that the exceptions put in issue the parties capacity to enter
into marrriage, thus, relating to a substantive requirement.
Since the personal law of the parties governs questions of intrinsic
validity of marriages b/w Filipinos abroad, the above enumerations
are exceptions to the lex loci celebrationis precisely because they
are controlled by lex nationalii.
3. Intrinsic Validity of Marriage
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

Intrinsic requirements refer to capacity or general ability of a

person to marry, for instances defined by requirements of age &
parental consent, but it does not refer clearly to an individual s
being permitted to marry a specific person or person of a
determinate class.
What law controls intrinsic requirements?
Hague Convention on validity of Marriages allows a contracting
state to refuse recognition of the marriage if:
1) one of spouses was already married (unless marriage has
subsequently become valid by virtue of dissolution or
annulment of previous marriage)

The parties personal lawseither domicile or nationality. 2) spouses were related to one another by blood or by
adoption, in the direct line or as brother or sister
Municipal laws of each state provides substantive requirements of
marriage. 3) one of spouses had not attained the minimum age
required for marriage nor acquired the necessary
Philippine Law sets the following substantive or essential dispensation
requisites:
4) one of the spouses did not have the mental capacity to
1) Legal capacity: must be 18 years of age & not barred by consent
any impediment to marry each other
5) one of the spouses did not freely consent to the
2) Consent freely given: in the presence of an authorized marriage
solemnizing officer

Matrimonial consent: Parties are, at least, not ignorant that the Sottomayor vs. de Barros
marriage is a permanent union. (1877)
FACTS: Sottomayor and de Barros are both Portuguese and first
Mixed marriages: the law that governs substantive validity is cousins. Under Portuguese law they are incapable of contracting
national law of parties. marriage. They were married in London. Sottomayor filed a
petition to have the marriage declared invalid.
Art 38. FC.: Though valid in a foreign country certain marriages
may be void in the Philippines on grounds of public policy, such as HELD: The marriage is invalid. The law of a country where
the ff: marriage is solemnized must decide all questions relating to the
validity of the ceremony by which the marriage is alleged to have
1) b/w collateral blood relatives, whether legitimate or been constituted; but as regards questions on personal capacity, it
illegitimate up to the 4th civil degree must depend on the law of the domicile, and if the laws of any
2) b/w step-parents & stepchildren country prohibit its subjects within certain degrees of
3) b/w parents-in-law & children-in-law consanguinity from contracting marriage and treats such as
4) b/w adopting parent & adopted child incestuous, this imposes on the subjects a personal incapacity
5) b/w surviving spouse of adopting parent & adopted child which continues to affect them so long as they are domiciled in
6) b/w surviving spouse of adopted child & adopter said country and renders such marriage invalid wherever it may
7) b/w adopted child & legitimate child of adopter have been solemnized.
8) b/w adopted children of same adopter
9) b/w parties where one, w/ intention to marry the other,
killed the person s spouse or his or her own spouse In re May s Estate
(1920)
FACTS: Fannie is Sam s niece by half blood; they are both
Marriages Between First Cousins: Jewish and NY residents. NY prohibits marriage between uncle
and niece, so they went to Rhode Island, where such marriage
Marriage of 1st cousins is no longer incestuous but still void ab initio is also prohibited except where the parties are Jewish (the
on the ground of public policy.
Jewish faith allow such marriages). After the ceremony they
went back to NY to live there.
It is submitted that our prohibition against marriage of 1st cousins
be limited only to Filipino nationals because many countries allow
HELD: The marriage is valid. The legality of a marriage between
such marriages.
persons sui juris is to be determined by the law of the place
Marriages b/w foreigners whose national laws allow marriage of 1st where it is celebrated. The general principle is that the rights
cousins should be considered as valid in the Phil under the dependent upon nuptial contracts are to be determined by the
principle that the lex nationalii controls capacity & presumption in lex loci, subject to 2 exceptions: 1) cases within the prohibition
favor of validity of marriage, as expressed in Art 220. of positive law, and 2) cases involving polygamy or incest in a
degree regarded generally as within the prohibition of natural
36
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
law. As to the first exception, there is no positive law in New
York which serves to interdict the marriage in Rhode Island of
Sam and Fannie, and as to the second exception, their
marriage was not offensive to the public sense of morality, it
being allowed by the Jewish faith.
Instances Where Recognition of Validity of Marriage May be
Withheld:
Christianity prohibits polygamous & incestuous marriages but care
must be taken to confine doctrine to cases deemed incestuous by
general consent of all Christendom.
The state may resort to ultimate escape device- contravention of a
public policy to w/hold recognition of validity of a foreign
marriage.
Rule: Marriages manifestly incompatible with the ordre public of
the state of nationality of parties may be refused recognition.
However, commentators argue that when the non/existence of
marriage is merely a preliminary Q arising incidentally in a case
involving an issue not profaning mores of forum (such as tax,
property or succession law) the rule above should not be applied.
In ReDalip Singh: two women claimed that they were lawfully
wedded wives of Singh, a native of India who died intestate in
California. They claim to have been lawfully married to him in India
over 50 yrs ago while domiciled there in accordance w/ law of the
Jat community.
Under California laws, only 1st wife recognized as legal widow.
Wives argue that the polygamous marriages should be held valid
on strength of Art 63 CC: All marriages contracted w//out the
state, w/c would be valid by the laws of the country in w/c the
same were contracted are valid in this state .
Court, citing English & American cases: Polygamous marriages can
be recognized in English law so as to confer on the wives the
status of a wife for the purposes of Sec. 10 of British Nationality &
Status of Aliens Act or for purposes of succession, & upon the
children the status of legitimacy.
Marriages Celebrated by a Consular Official
Art. 9 of the relevant Hague convention: Marriage celebrated by a
diplomatic agent or consular official in accordance with his state
law shall be considered valid as long as it is not prohibited by the
state of celebration
Philippine law: Marriage of Filipino nationals shall be officiated by
Philippine consul general, consul or vice consul (in w/c case the
formal & extrinsic requirements of a valid marriage license & due
publication & registration under Philippine law have to be
complied with).
This is said to apply to marriage b/w Filipino national & an alien
provided the alien complies with marriage requisites under his/her
national law.
37
Additional requirements for:
1) aliens - submission of a certificate of legal capacity to
contract marriage issued by diplomatic/consular office
2) stateless persons or refugees- submission of affidavit
stating circumstances showing legal capacity to contract
marriage
4. Effects of Marriage
Personal Relations between the Spouses
These include mutual support, fidelity, respect, cohabitation & right
of wife to use husband s family name)
What is the governing law? National law of parties
If spouses are of different nationalities, generally, the husband s
national law may prevail as long as it is not contrary to law,
customs, & good morals of the forum.
Art 69 Family Code: Husband & wife have the right to fix family
domicile.
Court, for compelling reasons, may exempt spouse from
living with the other.
Djumantan vs. Domingo: Filipino marries Indonesian. They go to
Philippines w/ intention of staying here permanently. Subject of
petition: Effect of marriage on wife s right to stay in the
Philippines.
There is no law guaranteeing aliens married to Filipino citizens the
right to be admitted, much less to be given permanent residency,
in the Philippines.
The fact of marriage by an alien to a citizen does not withdraw
her from operation of immigration laws governing admission &
exclusion of aliens. Marriage of an alien woman to Filipino citizen
does not ipso facto make her a Filipino citizen & does not excuse
her from her failure to depart from the country upon expiration of
her extended stay here as alien .
Restatement 2nd: The wife who lives w/ her husband has the same
domicile as his unless special circumstances of wife make such
result unreasonable.
But, in Ch VIII on Domicile, some legal authorities consider the
assignment of constructive domicile to the wife as invidious
discrimination on basis of gender.
Property Relations of Spouses
Hague Conventions on law Applicable to Matrimonial Property: The
internal law designated by spouses before marriage or in absence
thereof the internal law of state in w/c both spouses fix their
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
habitual residence is the governing law on matrimonial property
regimes.
Art 80. Family Code: In the absence of a contrary stipulation in a
marriage settlement, property relations of spouses shall be
governed by Philippine laws, regardless of the place of the
celebration of the marriage & their residence.
This rule shall not apply:
1) If both spouses are aliens
2) With respect to the extrinsic validity of contracts affecting
property not situated in the Philippines & executed in the
country where the property is located
3) With respect to the extrinsic validity of contracts entered
into in the Phil but affecting property situated in a foreign
country whose laws require different formalities for its
extrinsic validity
Art 80 generally follows lex rei sitae.
What law will govern the property relations of spouses where one is
a Filipino citizen 7 the other a foreigner? It would still be governed
by Philippine law.
Change of nationality after Marriage
If one or both spouses change nationality subsequent to marriage,
property regime remains unchanged because of principle of
immutability.
Hague Convention on Matrimonial Property Regimes. Art 7: The
applicable law continues notwithstanding any change of their
nationality or habitual residence.
extrinsic validity: refers to formal requisites, apply lex loci
celebrationis
intrinsic validity: refers to essential requisites, apply personal law of
the parties
In Adong and Wong Woo Yu, the Court did not apply the
Philippine policy of presumption of validity of marriage.
Question: is a proxy marriage between Filipinos in a state
allowing such marriages valid? Pangalangan: Yes,
because it is merely a formal requisite (lex loci
celebrationis apply)
________________
B. Divorce and Separation
Divorce: Absolute or Limited
Absolute: termination of legal relationship b/w spouses by an act
of law.
38
Limited: (Legal separation) separation form bed & board w/c does
not effect the dissolution of marital ties. But it modifies the
incidents of marriage by relieving spouses of duty of living w//
each other.
This does not necessarily affect economic rights & duties since the
court may order one to provide for support. For such purpose, it is
essential that court has JD over respondent spouse & the property
sought to be affected by decree.
Local law governs legal consequences of divorce of spouses,
nationals of same country, who marry, are domiciled & divorce.
If any of above factors connected to another state conflicts
problem arises.
Divorce jurisdiction:
Basis of JD of some countries: Domicile of one of the parties or
matrimonial domicile
Ratio: Divorce, being a matter of state concern, should be
controlled by law of place w/ w/c person is most intimately
concerned, place where he dwells.
Due process requires that forum court have a substantive contact
w/ the relationship w/c it will decide won to dissolve.
Hague Convention Relating to Divorce & Separation: The granting
of divorce or separation must comply w/ the national law of
spouses & the law of the place where the application for divorce is
made.
Some laws in PRiL have made
1) the right to separation or divorce depend on the
national law of the spouses &
2) grounds for divorce subject to law of forum
provided the parties were domiciled there.
Grounds for divorce are dictated by lex fori. Thus, many states
refuse to recognize foreign grounds for divorce unless it
corresponds w/ a ground justified by forum law. This is followed
whether the traditional or policy centered choice of law approach
is used.
1. Divorce decrees obtained by Filipinos
Divorce decrees obtained abroad have no validity, not recognized
in Philippine jurisdiction.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
BUT a marriage b/w a Filipino & a foreigner is susceptible to
divorce if the divorce was validly obtained by the alien spouse (Art
26 par 2).
Effects:
1. alien is capacitated to remarry
2. Filipino spouse shall likewise have the capacity to remarry
under Philippine law
Effect of Provision (Art 26): partial recognition in the Phil of
absolute divorce.
o note: Divorce should be obtained only by alien spouse.
Otherwise, Art 26 is inapplicable.
o Provision is to remedy the uneven status of Filipino
nationals whose alien spouses obtained divorce abroad
& remarried while the Filipino spouse remained married
to them in eyes of Philippine law.
Tenchavez vs. Escao
(1965)
FACTS: Vicenta and Pastor were married without the
knowledge of her parents. Vicenta went to the US to obtain a
divorce, which was granted by the Nevada Court; she married
an American and subsequently acquired American citizenship.
Pastor sued Vicenta for legal separation and damages.
Vicenta s defense is that there was a valid divorce issued by
the Nevada court.
HELD: The divorce decree obtained in the US is not valid,
because at the time it was issued, Vicenta, like Pastor, was still a
Filipino citizen. She was then subject to Philippine law.
Philippine law cannot recognize a foreign decree of absolute
divorce between Filipino citizens, for this would violate declared
public policy.
Van Dorn vs. Romillo
(1985)
FACTS: Van Dorn, a Filipina, married American Upton. Ten
years later they were divorced in the US; subsequently, van
Dorn remarried. Upton filed an action against Van Dorn in the
Philippines, asking for an accounting of certain alleged conjugal
properties.
HELD: The divorce decree is valid and binding upon Upton.
Even if divorce is not valid in the Philippines for being contrary
to public policy, only Philippine nationals are covered by the
policy against absolute divorces. Aliens may obtain divorces
abroad, which may be recognized in the Philippines provided
valid according to their national law.
39
Pilapil vs. Ibay Somera
(1989)
FACTS: Pilapil and Geiling were married in Germany, but were
later divorced. A few months later, Geiling filed a complaint for
adultery which was dismissed; it was refiled by the fiscal.
HELD: Geiling has no legal standing to commence the adultery
case because the person who initiates the adultery case must
be an offended spouse, meaning he must still be married to
the accused spouse at the time of the filing of the complaint.
Because of the divorce decree, Geiling is no longer the
husband of Pilapil; hence he had no more legal standing to
commence the adultery case (no longer an offended
spouse ).
Quita vs. Court of Appeals
(1998)
FACTS: Quita and Padlan were married in the Philippines, but
Quita filed for divorce in California which was granted. She
remarried twice after the divorce. Upon Padlan s death, Quita
made claims upon his estate as the surviving spouse and heir
of Padlan, alleging that since Padlan was a Filipino citizen, he
remained married to her in spite of the divorce decree.
HELD: Quita s right to inherit from Padlan depends on her
citizenship at the time the divorce was decreed. If she was no
longer a Filipino citizen at the time of their divorce, the divorce
would be valid as to her and will be recognized in the
Philippines, and she would lose her right to inherit.
Tenchavez: 2 Filipinos, divorced abroad not recognized
in the Philippines (Art. 15 CC, nationality principle)
Van Dorn: 1 Filipino, 1 foreigner, divorced abroad
recognized (Art. 15 CC, estoppel)
Pilapil: 1 Filipino, 1 foreigner recognized (nationality
principle)
________________
2. Validity of Foreign Divorce between Foreigners
Hague Convention on Recognition of Divorce & Legal Separation:
A foreign divorce will be recognized in all contracting states if at
the date of institution of proceedings:
a) Respondent or petitioner had his habitual residence
there, or
b) Both spouses were nationals of this state, or
c) If only the petitioner was a national, he should have his
habitual residence there
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

a) state where marriage was celebrated

US Full Faith & Credit Clause of Constitution: A sister state has the b) place of marital domicile
duty to recognize a divorce pronounced in a sister state, when
both spouses are domiciled there. Wheaton vs. Wheaton: Even a court which acquires personal JD
over parties can grant an annulment case (US case).
If only the plaintiff is domiciled there: Other conditions (i.e. service
of process to defendant) must be fulfilled
Sample conflicts Annulment Case
Effect of Divorce Rendered by a Foreign Country: not covered by o M&F, domiciliaries of STATE A, both 18 years old
Full faith & credit clause
o marry in STATE B w/out knowledge of their
o but would be recognized under the same circumstance parents
that a sister state s divorce decree is given recognition. o suit for annulment was brought in STATE C
(place of M s residence)
paramount consideration: jurisdiction of foreign court based on
parties domicile. State C can exercise JD over the case but what is the
governing law?

Philippine Law on Recognition of Foreign Divorce Decree: No Traditional choice-of-Law rules: will find sufficient
provision on recognition of divorce decree b/w non-Filipinos; ground for the challenge
o but such will be recognized under international comity, If the lex loci celebrationis
provided it does not violate a strongly held policy of the (STATE B) requires parental consent for a valid
Philippines marriage

Most Significant Relationship Approach: will not yield

a ground for annulment.
C. Annulment and Declaration of Nullity
State C can conclude that since law of STATE A
(state of marital domicile) gives people their age
Effect: Affects status & domestic relations of parties. full capacity to marry, no ground for annulment

Distinction from Divorce The Choice of Law rule of STATE C will be irrelevant

Divorce Annulment and Nullity

The ground occurs after Based on defects D. Parental Relations

marriage celebration present at time of
celebration What law determines legitimacy of a child? Personal law of parents
- either domicile or nationality.

Grounds for Annulment & Nullity: Most countries: father s personal law
German law: law of head of family
o States w/ traditional choice-of-law approach: follow the
lex loci celebrationis Law on parental relations include:
o Paternity
o States w/ policy-centered approach: follow the law of o Filiation
state of marital domicile (considered to have the most
significant interest in status of persons) What law governs legitimacy of child in the Philippines? National
law of the parents.
In both approaches, lex fori (which is crucial in divorce) does not
play substantial role because the action turns on the validity of the If parents are of different nationality: national law of father is
marriage. controlling.

Note that in either traditional or policy-centered approaches, lex In the PHILIPPINES:

fori is not used; recall that lex fori can be used in divorce.
o Personal law of the child is the national law of the father
Both lex loci celebrationis and law of marital domicile can provide if the child is legitimate or legitimated.
jurisdictional basis, but only one can be a choice-of-law in the
determination of the annulment decree. o Personal law of the child is the national law of the mother
if the child is illegitimate.
Which states can claim adequate jurisdictional basis to hear a
conflicts annulment or nullity case?

40
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

o Legitimacy of the child determined by the national law of
the father if both parents are not Filipino.
In the UNITED STATES:
as per Second Restatement On Legitimacy of the American Law
Institute
o Child is legitimate if this is his status under the local law
where the parent is domiciled when the child s
legitimacy is claimed OR when the parent acknowledged
the child as his own.
Parental Authority over the Child
-from concept of patria potestas of Roman law
What law controls? Father s personal law controls rights & duties
of parents & children.
o Art. 211 FC: Reference to father s personal law may result
in joint exercise of parental authority
o Art. 176 FC: Personal law could grant parental authority
to mother of illegitimate children
Scope of Parental Authority:
1) care & rearing
2) action a parent may file against another for child custody
3) requirements for parental consent of child s marriage
o If the main object of adoption is the welfare of the child,
the personal law of the child is the best choice-of-law to
govern his rights
o But the personal law of the child cannot be successfully
used to invoke jurisdiction if his domicile is merely
constructive or if he is a citizen of a state but he doesn t
reside there.
Child s personal law as basis for exercise of jurisdiction weakened
in situations where child s domicile is:
o merely constructive, or
o if he is a citizen of a state but he doesn t reside there
(there is little basis for court to protect child interest
competently)
The continuous movement of people in & out of countries should
also be factored in.
Can an alien adopt a child in the Philippines?
General Rule: not allowed
Reason: Different family orientation, cultures, customs & traditions
could pose problems of adaptation for child.
Exceptions:
o Art 184. Aliens who have some relationship with the child
by consanguinity or affinity
o RA 8552 (Domestic Adoption Act Of 1998)
These two introduced significant changes in adoption law.

E. Adoption Change Pertinent to Conflict Law

Definition: The act by which relations of paternity & affiliation as
legally existing b/w persons not so related by nature.
It is a judicial act w/c creates b/w 2 persons a relationship similar to
that w/c results from legitimate paternity & affiliation.
1) Aliens who have resided in the Philippines for 3 years
prior to the date of filing the application for adoption,
and maintains residency until decree of adoption is
granted QUALIFIED TO ADOPT

Early societies considered it as a means of perpetuating a house or 2) Other requirements:

cult threatened by extinction. a) certification of legal capacity
b) certification that the State law would allow entry
Original purpose: solace for childless or people who lost children of the adoptee as an adopted child of the
adopter.
Recent time: broader, more humane aim
These other requirements may be waived if the adoptee is related
Social & moral purpose: extend protection of society (in the person by consanguinity or affinity to the
of adopter) to the orphan. o adopter, or
Thus, persons eligible to adopt expanded o his/ her spouse as specified by law.

What law governs? lex domicilii RA 8043:

The adoption process affects status of parties, necessarily Before this, adoption of Filipino children by foreigners was done
governed by lex domicilii. pursuant to Rules & Regulations on Foreign Adoption & bilateral
agreements.
What if prospective adoptive parent is domiciled in one state & the
child is domiciled in another? Twin problems of jurisdiction and RA 8043 regulate the adoption of Filipino children by
choice-of-law. o aliens, or

41
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
o Filipino citizens permanently residing abroad.
RA 8043 was passed in compliance with our treaty obligation as a
signatory to the Hague Convention on Protection of Children &
Cooperation In Respect of Intercountry Adoption.
Convention pursues modern concept of adoption: After possibilities
of adoption for placement of child within state of origin have been
exhausted, intercountry adoptions may be placed in the best
interest of the child.
Republic of the Philippines vs. CA
(1993)
FACTS: Hughes is married to Lenita, a Filipina who was later
naturalized as an American citizen. They filed a petition to
adopt the 3 nephews and niece of Lenita, which was granted.
HELD: Hughes is not qualified to adopt since he does not fall
under the exceptions in Art. 184 of the Family Code. While
Lenita, as a former Filipino, is qualified to adopt under that
provision, the adoption decree still cannot be granted because
of the requirement in Art. 185 that spouses must jointly adopt.
They cannot do this in CAB because Hughes is not qualified
under the law.
Effects Of Adoption
What law governs rights of adopted child & other effects of legal
adption? (law that governed the creation of adoption)
2 different legal orders depending on which law governed the
creation of adoption:
1) If Personal law of adopter appliedsame law governs
effects of adoption.
2) If personal law of child appliedsuch law will cease to
regulate the resulting parent-child relations; it will yield to
the personal law of adopting parents.
Philippine courts:
o Adoption relates to a civil rights of adopted child
o Does not effect changes in political rights, including
eligibility to acquire adopter s citizenship
In the Philippines, principles of enforcement & recognition of a
foreign judgment governs, because the decree granting an
adoption is in the form of a foreign judgment.
Uggi Lindamand Therkelsen vs. Republic
(1964)
FACTS: Therkelsen (a German) and his wife Erlinda (a Filipino),
filed a petition to adopt Erlinda s natural child. The application
was denied on the ground that an alien cannot adopt a Filipino
42
unless the adoption would make the Filipino minor a citizen of
the alien s country.
HELD: The application should be granted. Being a permanent
resident here, Therkelsen is not disqualified to adopt under our
laws; to deny the application on the above stated ground
would be to impose a further requisite on adoptions by aliens
beyond those required by law. The citizenship of the adopter is
a matter political, not civil in nature, and the ways in which it
should be conferred lay outside the ambit of the Civil Code.
Ng Hian vs. Collector of Customs
(1916)
FACTS: Marcosa married Ng Chion Te. She adopted his 2
children by a previous marriage and brought one of them to
the Philippines to study. The child, Ng Hian, was refused entry
into the Philippines.
HELD: Ng Hian may enter the Philippines by virtue of being
adopted by one who has a right to do so. In the case of Ex
Parte Fong Yim, it was held that a Chinese merchant domiciled
in the US has the right to bring into this country with his wife
minor children legally adopted by him in China, where it is
shown that the adoption was bona fide, and that the children
have lived as members of his family and have been supported
by him for several years.
XIII. Choice of Law in Property
A. The Controlling Law
The first issue to resolve in conflicts cases involving property is
whether it is a movable or an immovable, because upon this
determination will depend the controlling legal system.
Immovables: regulated by lex situs; underlying this is the
characterization of immovable property as an isolated object of
rights so that the interests of various persons are determined by
the law of the place where the land is situated.
The connecting factor is the immovable itself and not the parties
concerned.
Movables: not necessarily governed by the lex situs; its transfer
may be controlled by the a) lex domicilii, b) lex situs, or c) lex loci
actus (the proper law of transfer).
Lex domicilii: the rights over the movables are governed by the law
of the owner s domicile.
Lex situs: the state where the property is situated has the sole
power to decide the validity and effects of the transfer of property.
Also, the parties legitimate expectations are protected. The
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

rationale for this is that being physically part of the country, it to its execution which are used as a scheme to circumvent the
should be subject to the laws thereof. The situs is the place most constitutional prohibition.
closely and significantly related to the issue in question.

Alternatives to lex domicilii and lex situs: Cheesman vs. IAC

a) Lex loci actus: law of the place where the transaction was
completed
b) the proper law of the forum: law of the state which has
the most real connection with the transfer
In the Philippines, real and personal property are subject to the
law of the country where it is situated (Art. 16 CC). a problem
regarding classification will arise only when the property is located
in a foreign country which has a law that distinguishes between
real and personal property.
For real property, there is very little room for choice of law,
because of the emphasis on lex situs.
Why?
1) Property physically a part of the particular state, and that
state can exercise JD over it (traditional approach)
2) There is need for reliable records (to protect the sanctity
of records)
________________
(1991)
FACTS: Thomas Cheesman (an American) was married to a
Filipina, Criselda. The spouses later separated; but Thomas
brought this action to annul the sale of real property made by
Criselda in favor of Padilla. He alleged that the sale is void for
lack of his consent. The property sold was bought by Criselda
using her personal funds, and was registered in her name only.
HELD: The sale was valid. He has no capacity to question the
sale of the property by his wife on the theory that in doing so
he is merely exercising the prerogative of a husband in respect
of conjugal property. This would permit indirect controversion
of the constitutional prohibition. If the property were to be
declared conjugal, this would accord to the alien husband an
interest and right over the land, which is not granted to him
under the Constitution.
C. Extrinsic and Intrinsic Validity of Conveyances
The lex situs law applies to the following:
1) formalities of a contract to convey property

B. Capacity to Transfer or Acquire Property 2) the essential validity of the transfer (unless the lex
intentionis is clearly established)
This is governed by the law of the place where the property is
located. 3) the effects of the conveyance or properties

D. Exceptions to the Lex Situs Rule

Llantino vs. Co Liong Chong
(1990) 3 Exceptions to the Lex Situs rule:
FACTS: The Llantinos leased real property to Chong, a Chinese
national (but subsequently naturalized as a Filipino), for 60 1) where the transaction does not affect transfer of title to or
years. The Llantinos filed an action to quiet title, claiming that ownership of the land (proper law: lex intentionis or lex
the lease contract was invalid for circumventing the voluntatis)
constitutional prohibition on the acquisition of land by aliens.

Liljedahl vs. Glassgow

HELD: The lease contract was valid, and Chong had the right to
(1921)
hold by lease the property involved although at the time of
FACTS: Bailey secured a debt payable in Iowa to Liljedahl; as
execution of the contract, he was still a Chinese national. In
security, he mortgaged his land in Colorado. Bailey sold this
CAB there was no option to buy the leased property in favor of
land to Glassgow, with the provision in the deed of sale that
Chong. There is nothing in the record to indicate any scheme
the grantee agrees to pay the mortgagee. Glassgow sold the
to circumvent the constitutional prohibition.
land to a third party. Under Iowa law, Glassgow became bound
to pay the mortgage, but not under Colorado law.
Aliens are not completely excluded by the Constitution from
use of lands for residential purposes. Since their residence in
HELD: Iowa law should apply, and Glassgow should pay
the Philippines is temporary, they may be granted temporary
Liljedahl. Instruments of conveyance, as they relate primarily to
rights, such as a lease contract which is not forbidden in the
title, are to be construed according to the law of the situs. But
Constitution. The only instance where a lease contract may be
personal covenants or agreements in instruments of
considered invalid is where there are circumstances attendant

43
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
conveyance will be given effect according to the law of the
place where the same is executed and to be performed.
2) in contracts where real property is offered by way of a
security for the performance of an obligation such as
loan, where the security is merely an accessory contract
(the principal contract is governed by the rules on
ordinary contract, while the accessory contract on the
land is governed by the rule of lex situs)
3) testate or intestate succession and capacity to succeed,
which are governed by the national law of the decedent
Under a policy-centered approach, the forum court is not bound
to look to the law of the situs when the situs of the movable
property at the time of the transfer was insignificant or accidental.
Also, when the issue involves considerations other than the validity
and effect of the transfer itself, the courts may look to the law of
another state which has a real interest in applying its law.
Rudow vs. Fogel: since the issue did not relate to land title but to
whether the conveyance would result in a constructive trust among
family members, the law applicable is the law of the domicile of
the trustor and trustee instead of the lex situs of the property.
E. Situs of Certain Properties
1. Situs of Personal Property for Tax Purposes
The maxim mobilia sequuntur personam cannot be applied to limit
the right of the state to tax property within its JD. It yields to
established facts of legal ownership, actual presence, and control
elsewhere, and cannot be applied if it would result in inescapable
and patent injustice.
2. Situs of Money
Leon vs. Manufacturers Life Insurance: having been endorsed in an
annuity in Canada under a contract executed in that country,
Canada was the situs of the money, hence the probate court of
Manila has no JD over the funds.
3. Situs of Debts
2 Kinds of Movable Property:
1) choses in possession embraces all types of tangible
physical objects
2) choses in action refers to intangible objects
44
a) mere rights of actions
b) rights represented by a document (capable of
delivery and susceptible to negotiation as a
separate legal entity)
Harris vs. Balk
(1905)
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 creditor s claim to the accident
of the debtor s presence in one state or another.
4. Situs of Corporate Shares of Stocks
Under the Corporation Code (Sec. 63), shares of stock are personal
property and may be transferred by delivery of the certificate or
certificates indorsed by the owner or his attorney in fact. But such
transfer shall not be valid until recorded in the books of the
corporation in the manner provided.
CIR vs. Anglo California National Bank
(1960)
FACTS: The Collector of Internal Revenue assessed deficiency
income taxes against Calamba Sugar Estates for the capital
gains on the sale of Pampanga Sugar Mills shares of stock. The
sales were conducted in SF, California, and payments were
made there.
HELD: CSE not liable for income tax on the capital gains. The
government cannot impose income taxes on capital gains
where the sale took place outside its territorial JD. Foreign
corporations may be levied income taxes only on income
derived from sources within the Philippines. With respect to
capital gains, the place of the sale (which in CAB is California) is
also the place or source of the capital gain.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
F. Patents, Trademarks, Trade Name, and Copyright
The Philippines is a party to the Union Convention for the
Protection of Industrial Property; said convention states in Art. 8
that a trade name shall be protected in all the countries of the
Union without the obligation of filing of registration, whether or
not it forms part of the trade name.
Western Equipment and Supply Co. vs. Reyes; although Western
equipment has not done business in the Philippines, it has the right
to protect its reputation. The right to the use of the company s
corporate and trade name is a property right which may be
asserted against the whole world.
RA 8293 (Intellectual Property Code): applicant cannot register
marks well known internationally and in the Philippines, whether
or not it is registered here, xxx and is used for identical or similar
goods or services.
Under Sec. 3 of the IPC, any foreign corporation which is a national
or domiciliary of a country which is a party to a convention, treaty
or agreement relating to intellectual property rights to which the
Philippines is also a party or extends reciprocal rights to our
nationals by law shall be entitled to benefits to the extent
necessary to give effect to any provision of such convention
Philips Export vs. CA
(1992)
HELD: A corporation s right to use its corporate and trade
name is a property right, a right in rem, which it may assert and
protect against the world in the same manner as it may protect
its tangible property, real or personal, against trespass or
conversion. It is regarded, to a certain extent, as a property
right and one which cannot be impaired or defeated by
subsequent appropriation by another corporation in the same
field.
Emerald Garment Mfg. vs. CA
(1995)
FACTS: H. D. Lee Co., a foreign corporation, filed a petition for
cancellation of registration of the trademark Stylistic Mr. Lee
used on items of clothing by Emerald Garments, alleging that it
so closely resembled H. D. Lee s trademark as to cause
confusion, mistake and deception on the public as to the origin
of the goods.
HELD: A foreign corporation may have the capacity to sue for
infringement irrespective of lack of business activity in the
Philippines on account of Section 21-A of the Trademark Law
but the question of whether they have an exclusive right over
their symbol as to justify issuance of the xxx writ will depend on
actual use of their trademarks in the Philippines.
45
XIV. Choice of Law in Contracts
Contract: meeting of the minds between 2 persons whereby one
binds himself, with respect to the other, to give something or
render some service. Parties are bound not only to those expressly
stipulated but also to all the consequences which according to
their nature, may be in keeping with good faith, usage and law.
As a gen. rule, unless provided by law or in the
agreement, a contract is obligatory in whatever form it may have
been entered into provided that all the essential requisites for
validity are present.
Principal purposes of contract:
1. protect the reasonable expectations of the parties to the
contract
2. secure stability in commercial transactions
A. Contracts Involving a Foreign Element
States, in their municipal laws, have different rules on the
formalities of a contract, the capacity of parties, and the essential
requisites for the intrinsic validity of contracts, interpretation and
the law governing execution. Forum court should be aware if there
is a law that parties have in mind when they entered into a
contract.
Interpretations of contracts are applied only when the lex loci
intentionis cannot be ascertained.
Unlike family law, contract law does not reflect strong state policies
or values.
B. Extrinsic Validity of Contracts
Lex loci celebrationis governs the formal or extrinsic validity of
contracts. A contract is valid as to form if in accordance with any
form recognized as valid by the law of the country where made,
and that no contract is valid which is not made in accordance with
the local form.
Art 17, CC
The forms and solemnities of contracts, wills, and other public
instruments shall be governed by the laws of the country in which
they are executed.
As to Contracts entered into by cablegram, telex or fax: Art. 1319,
CC states that acceptance made by letter or telegram does not
bind the offeror except from the time it came to his knowledge.
The contract is presumed to have been entered into the place
where the offer was made.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

C. Intrinsic Validity of Contracts In case of conflict in determining validity, nature and obligation
and effect of contract, lex loci solutionis prevails over lex loci
Intrinsic validity refers to nature, contents and effects of the contractus.
agreement.
The laws of Canada, which is the place of performance, should
apply. The failure of the Import Control Comm. to act on the
Art. 1318, CC: requisites of a contract
application of import license cannot constitute a legal excuse
a. consent of the contracting parties
for his failure to perform his obligations under the contract.
b. object certain
c. cause of the obligation

3. Lex Loci Intentionis

There are 3 possible laws that will govern intrinsic validity of
contracts:
This refers to the law intended by the parties. When the parties
1. law of the place of the making
stipulate that the contract be governed by a specific law, such will
2. law of the place of performance
be recognized unless there are cogent reasons for not doing so
3. law intended by the parties
e.g. the choice-of-law provision is contrary to a fundamental policy
of the forum.
1. Lex Loci Contractus
Also construction and interpretation of contracts may be agreed
upon by parties.
This refers to the law of the place where the contract is made. This
is the place where the last act is done which is necessary to bring
Art 1306, CC
the binding agreement into being so far as the acts of the parties
The contracting parties may establish such stipulations, clauses,
are concerned.
terms and conditions as they may deem convenient, provided that
they are not contrary to law, morals, good customs, public order
Advantages:
or public policy.
a) relative ease in establishing place of contracting

Art, 1370, CC
b) in applying it consistently, certainty and stability
If the terms of the contract are clear and leave no doubt upon the
are achieved.
intention of the contracting parties, the literal meaning of the
stipulations shall control.
Disadvantage: it will lead to unjust results when the place of
making is entirely incidental or casual and has no significant
The law looks at the acts of the parties and the surrounding
relationship with the contract or its performance.
circumstances which may possibly have exerted some influence
upon their actions and then assumes that their intentions are in
harmony with such acts and circumstances.
2. Lex Loci Solutionis

Parties are presumed to contemplate to enter into a valid contract.

This refers to the law of the place of the performance. All matters
The court should apply the law that will sustain the contract.
relating to time, place, manner of performance, sufficiency of
performance and valid excuses for non-performance are
determined by lex loci solutionis because it is undoubtedly related
D. Capacity to Enter into Contracts
to the contract in a significant way.

The capacity to enter into contracts is governed by the rule on

status and capacity (personal law). In countries that follow the
Macmillan & Bloedel vs. Valderama & Sons
nationality principle, the national law prevails (art. 15, CC). In
(1964)
countries that follow the domiciliary principle, law of their domicile
FACTS: Valderama & Sons, thru an n agent, entered into a
governs.
contract for purchase of railroad equipment with Macmillan in
Canada. Valderama failed to get an import license because the
Import Control Comm failed to act on his application. E. Choice of law Issues in Conflicts Contracts Cases
Macmillan suffered damages because it had to cancel the
freight engagement.
1. Choice of Forum Clause
HELD: Lex loci solutionis applies. The general rule governing the
validity & construction of a contract & the rights and liabilities The parties may stipulate on the venue of the suit in case of
thereunder is that the law of the place of performance applies. litigation concerning the contract.
46
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
It is a general rule that plaintiff has the option to choose the venue
where the suit is to be filed in action in personam. However, a case
arising from the contract will be litigated only in the forum chosen
by the parties if the choice of forum clause specifically identifies it
as the only venue.
Sec. 80, Sec. 3, Restatement Second. If the parties have agreed in
writing that an action shall on a controversy be brought only in
another state and it is brought in a court of this state, the court will
dismiss or stay the action, unless:
1. the court is required by statute to entertain the
action
2. plaintiff cannot secure effective relief in other state
for reasons other than delay
3. the other state would substantially be a less
convenient place of trial
4. the agreement as to place of action was obtained by
misrepresentation, duress, abuse of economic
power or other unconscionable means
5. it would be unfair or unreasonable to enforce the
agreement
Compagnie de Commerce vs. Hamburg Amerika
(1917)
FACTS: Compagnie (french) and Hamburg (Germany) entered
into a charter party to transport C s goods from Saigon-
Europe. Because of the impending war between France &
Germany, the ship went to Manila because Saigon is a French
port. C filed for breach of contract. H contested the jurisdiction
of Phil courts to try the case because the contract had a clause
directing the settlement of disputes first to a Board of
Arbitration in England.
HELD: Phil. courts have jurisdiction. The parties are free to
waive the stipulation if they so desired.
Phil courts cannot be ousted of their jurisdiction by the
contractual stipulation in the absence of averment and proof
that under the law of England (place of contracting),
compliance with, or an offer to comply with such a stipulation
constitutes a condition precedent to the institution of judicial
proceeding for the enforcement of the contract.
Besides, Hamburg appeared and answered without objecting
to the court s jurisdiction; it also sought affirmative relief.
King Mau vs. Sycip
(1954)
FACTS: King Mau entered into an agency agreement with the
Sycip in New York. King mau was able to sell 1,000 tons of
coconut oil. KM brought an action to collect commission from
the sale. Sycip claimed that the Phil court has no jurisdiction as
the contract was entered in New York.
HELD: Phil court has jurisdiction. A non-resident may sue a
resident in the courts of this country where the defendant may
47
be summoned and his property leviable upon execution in case
of a favorable, if final and executory judgment.
It is a personal action for the collection of a sum of money
which the CFIs have jurisdiction to try and decide .
HSBC vs. Sherman
(1980)
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.
Pangalangan: HSBC case is disappointingwhy did the courts not
recognize the choice of forum clause? Courts are turf-
conscious ; for PRIL to progress, there is a need for each country
to give up some of its exercise of sovereignty.
_______________
2. Contracts with Arbitration Clause
Puromines vs CA
((1993)
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 vs. Zapata
(1972)
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
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
d. if the chosen forum is seriously inconvenient for the trial of
the action. But if the parties contemplated the claimed
inconvenience, it should not be heard to render the forum
clause unenforceable.
The CAB involves a freely negotiated international commercial
contract between the parties. As noted, selection of a London
forum was clearly a reasonable effort to bring vital certainty to
this int l transaction and to provide a neutral forum
experienced and capable in the resolution of admiralty
litigation.
3. Adhesion Contracts
Adhesion contract is one that is not negotiated by the parties
having been drafted by the dominant party and usually embodied
in a standardized form. It is called a contract of adhesion because
the participation of 1 party is limited to affixing her signature.
Pan Am World Airways vs. Rapadas
(1992)
FACTS: Rapadas samsonite was lost and Pan Am offered to
settle the claim for $160. Rapadas refused and filed an action in
court. The defense of Pan Am is that the claim is subject to the
Notice of baggage Liability Limitations contained in the
passenger ticket.
HELD: The liability is limited by the Notice of Baggage liability.
Although the ticket is a contract of adhesion, it does not offend
against the policy of the law forbidding one from contracting
against his own negligence. The one who adheres to the
contract is in reality free to reject it entirely. Court finds the
provisions in the plane ticket sufficient to govern the limitations
48
of liabilities of the airline for loss of luggage. The passenger,
upon receiving his plane ticket, was expected to be vigilant
insofar as his luggage is concerned.
PAL vs. CA
(1996)
FACTS: Mejia shipped through PAL 1 microwave oven from San
Francisco to Manila. Upon arrival, she discovered that the front
glass door was broken and the oven could not be used. Mejia
filed action against PAL. PAL denied liability and alleged that it
acted in conformity with the Warsaw Convention.
HELD: Although the airway bill is binding between the parties,
the liability of Pal is not limited on the provisions of the airway
bill. While the Warsaw Convention is law in the Philippines, the
Philippines being a signatory thereto, it does not operate as an
exclusive enumeration of the instances when a carrier shall be
liable for breach of contract or as an absolute limit of the
extent of liability nor does it preclude the operation of the Civil
Code or other pertinent laws.
Also, the willful misconduct and insensitivity of the officers of
PAL in not attempting to explain the damage despite due
demand and the unexplained delay in acting on her claim,
amounted to bad faith and renders unquestionable its liability
for damages.
Specific Instances where court disregarded the adhesion contract:
1) when the party is not literate in the language of the
contract with knowledge of what was intended
2) when there is undue advantage made by a dominant
party usually a huge corporation or a business monopoly
3) when there is ambiguity in the adhesion contract, it must
be resolved contra preferentum and in favor of the party
impugning it
4) when it is subversive of public policy when the weaker
party is imposed upon in dealing with the dominant
bargaining party and is reduced to the alternative of
taking it or leaving it, completely deprived of the
opportunity to bargain on equal footing
Sweet Lines vs. Teves: Petitioners assail the validity of the tickets
issued by Sweet Lines.
HELD: The adhesion contract is void. It is not just and proper to
expect that the passengers examined their tickets from the
crowded counters esp. if there are a number of conditions in fine
print. Also, shipping companies, esp. inter-island vessels, possess a
virtual monopoly over the business of transporting the passengers
between ports covered by their franchise. Lastly, the court took
judicial notice of the fact that these passengers come from low-
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
income groups and are less literate and who have little or no
choice but to avail of petitioner s vessels.
Parties may include any stipulation as long as such stipulations do
not violate public policy or morals of the forum.
Lessons:
PanAm: not all contracts of adhesion are against public
policy; balancing of interests (airline vs. passenger)
PAL vs. CA: when there is ambiguity in adhesion contract,
construe against the drafter.
________________
4. Special Contracts
In sales or barter of goods, the law of the place where the property
is located will govern (lex situs).
A simple loan granted by financial institutions is governed by the
law of the permanent place of business. But if granted by a private
individual, it is governed by the law of the place where the loan
was obtained.
In contracts of pledge, chattel mortgage and antichresis, the
extrinsic and intrinsic validity of the contracts are governed by lex
situs.
Carriage of Goods by Sea
American President Lines vs. Klepper
(1960)
FACTS: K shipped on board APL s vessel personal effects.
Because of damage to the effects, K sued APL. CA affirmed
CFI s finding of liability but awarded damages on the basis of
the COGSA.
HELD: COGSA does not apply but the Civil Code. Article 1753
of the Civil Code provides that the law of the country to which
the goods are to be transported shall govern the liability of the
common carrier in case of loss, destruction or deterioration.
Under Article 1766, "In all matters not regulated by this Code,
the rights and obligations of common carriers shall be
governed by the Code of Commerce and by special laws," and
in the Civil Code there are provisions that govern said rights
and obligations. Although Section 4 (5) of the Carriage of
Goods by Sea Act states that the carrier shall not be liable in an
amount exceeding $500.00 per package unless the value of the
goods had been declared by the shipper and inserted in the
49
bill of lading, this is merely suppletory to the provisions of the
Civil Code.
Contracts for International Air Transportation
The Warsaw Convention and amendments to the same regulate
and establish uniform rules and regulations on the liability of
international airline carriers in cases of death, injuries of passengers
or loss or damage of cargo. The Phils. became a member thereof
in 1951.
Liabilities of the Carrier:
a. in case of death or wounding- carrier s liability is not more
than $75,000.
b. The limits do not apply when the damage is caused by the act
or omission of the carrier, his servants or agents, done with
the intent to cause damage or recklessly and with knowledge
that damage would probably result, provided that the agent
was acting within the scope of his employment.
c. In case of loss or damage to baggage - $20/kilo for checked
baggage and $400/passenger for unchecked luggage unless
a higher valuation is agreed upon by the parties
d. Prescription. Action must be brought within 2 years from date
of arrival at the destination, or from date which the aircraft
ought to have arrived or from the date on which the
transportation stopped.
e. Venue. Any action for damages may be brought either in the
court of the
1. domicile of the carrier
2. principal place of business
3. place of business where the contract was made
4. place of destination
5. Successive Carriers. Each of the successive carriers is
bound by the rules on the Convention and shall be
deemed to be one of the contracting parties insofar as
the part of the transportation which is performed under
his supervision. But for goods or baggage, the passenger
or consignor has a right of action against the first carrier
and the consignee who is entitled to receive the same,
against the last carrier. They must take action against the
carrier who performed the transportation during which
the loss, damage or delay took place.
Lopez vs. Pan Am
(1965)
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
damages in their favor. Pan Am admitted the breach of
contract but not the finding of bad faith
HELD: Pan Am acted in bad faith. Pan Am misled the Lopezes
into believing the reservations were valid and was prompted by
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
self-interests in dong the same (precluding the Lopezes to
secure other tickets). Also, there was negligence by its
employees that were so gross and reckless as to amount to
malice and bad faith, e.g. erroneous cancellation of reservation,
not confirming reinstatement of reservation, confirming
reservation even if EE had knowledge that they were merely
waitlisted and not notifying Lopezes of the cancellation.
KLM Royal Dutch vs. CA
(1975)
FACTS: Mendozas went on a world tour. KLM issued the tickets
for the whole trip. Their coupon for Aer Lingus was marked RQ.
Thru KLM s 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 KLM s 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.
American Airlines vs. CA
(2003)
FACTS: Mendoza bought conjunction tickets from Singapore
Airlines. Although it was not a participating airline, AA
exchanged the unused portion of the ticket for a one-way
ticket to New York. However, Mendoza was prevented by AA s
security officers from boarding until all the other passengers
have boarded. He sued action for damages against AA in RTC.
AA claimed that the issuance of a new ticket created a separate
contract of carriage from the one with SA and therefore, under
Art. 28, RTC had no jurisdiction over the case against AA.
HELD: RTC had jurisdiction; the new ticket is not considered as
separate from the one issued by SA but the contract of
carriage constitutes a single operation. SA & AA are members
of the IATA and under the general pool partnership agreement
they act as agents of each other in the issuance of tickets to
contracted passengers. When AA exchanged the ticket, it
entered it in the IATA clearing house and undertook to
transport M. It thereby assumed the obligation to take the
place of the principal carrier originally designated and
constituted itself as an agent of SA. The number of tickets
50
issued does not detract from the oneness of the contract of
carriage as long as the parties regard the contract as a single
operation.
Chiok vs. China Airlines
FACTS: Chiok purchased ticket from CAL exclusively endorsable
to PAL. While in Hkong, his flight was confirmed by both CAL
and PAL attaching their respective stickers. On the day of his
flight to Manila, he was informed by a PAL employee that he
was not in the computer list so he was not allowed to board.
Using another CAL ticket, he was able to return to Manila. C
sued CAL. CAL denied liability as the carriage was performed
by PAL.
HELD: Cal is liable. The ruling in KLM is applicable. The contract
was between CAL and C, with the former endorsing to PAL the
HK-Mla segment. This can be treated as a single operation
under Art. 15, IATA Rules and Art. 1 of the Warsaw Convention
Art. 1, Sec. 3 WC: transportation to be performed by several
successive carriers shall be deemed to be one undivided
transportation, if it has been regarded by the parties as a single
operation, whether it has been agreed upon under the form of
a single contract or of a series of contracts.
Art. 15 IATA: carriage to be performed by several successive
carriers under one ticket, or under a ticket and any conjunction
ticket issued therewith, is regarded as a single operation.
Pal acted as carrying agent of CAL, thus, CAL cannot evade
liability.
Santos III vs. Northwest Airlines
(1992)
FACTS: Santos bought a roundtrip (SF-Manila-SF) ticket from
NW airlines office in SF. Despite previous confirmations, he was
informed that he had no reservation on his trip. He sued NW
for damages in RTC Makati. NW filed MTD for lack of
jurisdiction.
HELD: Phil court has no jurisdiction to hear the case under Art.
28 of the Warsaw Convention. This article enumerates the
places where action must be filed, to wit:
1. Domicile Minnesota, USA (domicile must be understood
in the English sense place of incorporation)
2. principal place of business Minnesota
3. place of business where contract is made San Francisco
4. place of destination San Francisco (not Manila because it
was merely an agreed stopping place, SF is still the
ultimate place of destination
Distinction between KLM and China Air: in KLM, KLM was the only
company the passenger dealt with; in Chiok, it was alleged that
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Chiok himself (passenger) requested for the PAL booking. It can
then be argued that CAL should not be held liable.
________________
F. The Applicable law in the absence of an Effective Choice
According to the 2nd Restatement, in the absence of an effective
choice of law, these factors will be considered in determining the
state with which contract has its most significant relationship
1. place of contracting
2. place of negotiating of the contract
3. place of performance
4. situs of the subject matter of the contract
5. domicile, residence, nationality, place of incorporation and
place of business
6. place under whose local law the contract will be most effective
Courts should localize the contract by examining the contacts it
has with a state relative to the cogency to the issue. Example: For
contracts involving liability for destruction of goods in transit, the
state of the most significant relationship is the state of destination.
In the absence of an effective choice of law, courts applying a
policy-centered approach will apply its own law when there are
significant contacts with the transaction. Once these exist, the
forum has a real interest in applying its own law and such would
not be fundamentally unfair to the parties. The court should also
consider the legitimate expectations of the parties.
G. Limitations to Choice of Law
1) if the law selected has no connection at all with the
transaction or the parties
2) if it ousts the jurisdiction which the court has already
acquired over the parties and the subject matter
3) if it affects a public policy or the matter is heavily
impressed with public interest
4) in case of confession-of-judgment clauses (waives the
debtors right to receive notice or authorizes entry of
judgment)
XV. Choice of Law in Wills, Succession and Administration of
Estates
Will or testament: act whereby a person is permitted, w/ formalities
prescribed by law, to determine to a certain extent the distribution
of his estate to take effect after his death.
51
It is a disposition made by a competent testator in the form
prescribed by law of property over which he has legal power of
disposition
Conflicts of Law Perspective:
Will: an involuntary transfer of property, because it comes into
effect only upon death of owner. Death is involuntary, thus making
a will is an involuntary transfer of property.
Wills are governed by the proper law
o common law- law of domicile of testator
o civil law- national law of testator
A. Extrinsic Validity of Wills
Filipino national making a will abroad may comply with:
o lex nationalii (no express provision) or
o lex loci celebrationis (Art 17, 815)
Pertinent Conflict-of-law rules:
(referring to law of place where will was executed as law governing
forms & solemnities of will)
Art 17: The forms and solemnities of contracts, wills, and other
public instruments shall be governed by the laws of the country in
which 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.
Art 815: When a Filipino is in a foreign country, he is authorized to
make a will in any of the forms established by the law of the
country in which he may be. Such will may be probated in the
Philippines. (n)
What is the proper law for wills written abroad by Filipinos?
(There is no express provision that it is lex nationalii)
Tolentino:
Art 815 follows general rule of lex loci celebrationis.
The Civil Code did not mean to invalidate the will of a Filipino
made in conformity w/ Phil law.
Aliens making wills outside the Philippines are, under Art 816 &
817, permitted to follow:
o lex nationalii
o lex domicilii
o lex loci celebrationis
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Article 816. The will of an alien who is abroad produces effect in
the Philippines if made with the formalities prescribed by the law of
the place in which he resides, or according to the formalities
observed in his country, or in conformity with those which this
Code prescribes. (n)
Article 817. A will made in the Philippines by a citizen or subject of
another country, which is executed in accordance with the law of
the country of which he is a citizen or subject, and which might be
proved and allowed by the law of his own country, shall have the
same effect as if executed according to the laws of the Philippines.
(n)
It cannot be assumed that the Code places a Filipino citizen in a
worse position than an alien in relation to our law.
The Code should have expressly stated this considering general
provision in Art 17.
In re Estate of Johnson
(1918)
FACTS: Ebba Ingeborg sought to annul the probate of the will
of his father Emil Johnson, because the resulting intestacy
would be favorable to her as a sole heir. She stresses that
Section 636 of the Code Of Civil Procedure should not govern
the will executed by her father in the US, because the word
state in the body of the section is not capitalized (thus not
referring to a State in the US).
HELD: 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.
Extrinsic Validity of Joint Wills
Art 818. Two or more persons cannot make a will jointly or in the
same instrument, either for their reciprocal benefit or for the
benefit of a third person.
Joint wills are prohibited on grounds of public policy, because:
1) a will is a purely personal & unilateral act & this is
defeated if 2 or more persons make their will in the same
instrument
2) the revocable character of a will is defeated, because if
one of testators revoke the will, the other testators will
have no instrument left
52
3) it exposes a testator to undue influence & may even
tempt one of testators to kill the other
4) when a will is made jointly or in same instrument, the
more aggressive spouse is liable to dictate the terms of
the will for his/her own benefit
- where will is also reciprocal, either of the spouses who
may be wicked may be tempted to kill the other.
Joint wills executed by Filipinos in a foreign country allowing joint
wills are expressly invalidated by law.
Joint wills executed in the Philippines by aliens (whose laws do not
prohibit it): the law is silent
It is suggested that such will should not be probated if it affects
heirs in the Philippines (in accordance with the expressed policy in
Art 819).
Extrinsic Validity of Holographic Wills
Art 810: a holographic will is one entirely written, dated and signed
by the hand of the testator himself. It is not subject to any other
form, need not be witnessed and may be made in or out of the
Philippines.
Art 816 & 817 are also applicable to holographic wills
Merits:
o simple
o convenient
o does not require notarization
o guarantees absolute secrecy
Demerits:
o peculiarly dangerous
o an invitation to forgery
o short statements can confuse handwriting
experts
Babcock Templeton vs. Rider Babcock
(1928)
FACTS: The will of Jennie Rider Babcock was executed in
California. Babcock Templeton, being the mother of the three
beneficiaries of the will, stressed that the laws of California
should govern the probate since Jennie Rider Babcock
acquired domicile in California. William Rider Babcock opposes
this by stressing that her sister never acquired domicile in
California as her latest domicile was New York.
HELD: Her domicile was California, because even though she
later left California for New York, she never intended to be a
New York domiciliary. The trial court was also correct in
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
admitting the will for probate under Section 636 of the Code
Of Civil Procedure, because the length of time of her residence
in and eventual death in the Philippines did not result into a
loss of her US citizenship. She never intended to become a
Philippine domiciliary, thus making Section 618 inapplicable to
the will she executed abroad.
B. Intrinsic Validity of Wills
- governed by lex nationalii
Art 16: Real property as well as personal property is subject to the
law of the country where it is stipulated.
However, intestate and testamentary successions, 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. (10a)
Miciano vs. Brimo: Miciano, as the administrator of the estate of
Joseph Brimo, filed a petition for the partition of the estate. Andre
Brimo opposed the partition because the will itself was not
executed in accordance with the laws of Turkey, in violation of
Article 10 of the Civil Code.
The Court decided that although Andre Brimo opposed his
brother s intention to have Philippine laws apply he was not
deemed to have contested the legacy, because the choice of law
clause in the will was contrary to law. Our laws apply the lex
nationalii of decedent to determine intrinsic validity of a will and
this law was purposefully disregarded by decedent. The Court
considered this clause as not imposed and shall I no manner
prejudice the heir even if the testator should otherwise provide.
Criticisms on the Miciano vs. Brimo decision:
Considering the primacy of giving primacy to the last will and
testament of the decedent, the court should have respected the
wishes of the decedent (i.e. the clause in the will should not have
been annulled) by applying a policy-centered approach.
Using the most significant relationship approach, Philippine law
would govern because Joseph Brimo is a Philippine resident, the
properties are in here, and he made the will here the only
contact with Turkey is the fact of his nationality.
Under the escape device of disingenuous characterization , the
same result could have resulted without flouting testator s will.
The court could have characterized the main issue as one of
property and not of succession, thus making Philippine law the
governing law as the lex rei sitae.
53
Cayetano vs. Leonidas
(1984)
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 Adoracion s 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.
HELD: Since the governing law with respect to the amount of
successional rights is the national law of the decedent, the
governing law of Adoracion s will is Pennsylvania law. And
since Pennsylvania law does not have a system of legitimes,
Hermogenes is therefore not preterited. Although the
Philippines adopt a system of legitimes as a matter of public
policy, such policy does not extend to the successional rights of
foreigners.
General Rule: the probate court can only rule on:
1) extrinsic validity
2) due execution
3) testamentary capacity
4) compliance with requisites/solemnities prescribed by law
__________________
C. Interpretation of Wills
Interpretation of wills is to be governed by lex nationalii.
If terms are clear & unambiguous: lex intentionis
When there are ambiguous provisions: intention of party may be
inferred by referring to context of the will & the testator s acts.
Article 1371. In order to judge the intention of the contracting
parties, their contemporaneous and subsequent acts shall be
principally considered. (1282)
Article 1375. Words which may have different significations shall be
understood in that which is most in keeping with the nature and
object of the contract. (1286)
Presence of ambiguous provisions
Presumptions to help interpretation:
1) The interpretations of such should be determined in accordance
w/ laws & customs of that state most probably in mind of testator
2) In case a will admits of different dispositions, the interpretation
by which the disposition is to be operative shall be preferred
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Article 788. If a testamentary disposition admits of different
interpretations, in case of doubt, that interpretation by which the
disposition is to be operative shall be preferred. (n)
D. Revocation
Article 829. 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 takes place in this
country, when it is in accordance with the provisions of this Code.
(n)
Revocation:
1. lex loci celebrationis
2. lex domicilii
3. according to our Code
Article 830. No will shall be revoked except in the following cases:
1) By implication of law; or
2) By some will, codicil, or other writing executed as
provided in case of wills; or
3) By burning, tearing, canceling, or obliterating the will with
the intention of revoking it, by the testator himself, or by
some other person in his presence, and by his express
direction. If burned, torn, cancelled, or obliterated by
some other person, without the express direction of the
testator, the will may still be established, and the estate
distributed in accordance therewith, if its contents, and
due execution, and the fact of its unauthorized
destruction, cancellation, or obliteration are established
according to the Rules of Court. (n)
Problem: Testator revokes his will in then domicile State A and dies
in his new domicile State B. If his revocation under the laws of
State A is invalid under State B laws, what law will apply?
Common law practice: law of the domicile at the time of death.
Philippine law: law of the place of revocation.
Notice that there is a difference in the applicable law governing
revocation of wills by a person domiciled in the Philippines and a
non-domiciliary:
For domiciliary: the governing law is the law of the place
where the revocation was made (lex actus)
For non-domiciliary: the governing law is the law where
the will was executed (lex loci celebrationis)
__________________
E. Probate
54
Probate: an adjudication that the last will and testament of a
person was executed with all the formalities required by law
As part of procedural law, probate is governed by the law of the
forum.
But the forum will still have to look at the foreign law concerning
compliance with extrinsic validity.
Rule 76 Section 9 Grounds for disallowing will.: The will shall be
disallowed in any of the following cases;
(a) If not executed and attested as required by law;
(b) If the testator was insane, or otherwise mentally incapable to
make a will, at the time of its execution;
(c) If it was executed under duress, or the influence of fear, or
threats;
(d) If it was procured by undue and improper pressure and
influence, on the part of the beneficiary, or of some other person
for his benefit;
(e) If the signature of the testator was procured by fraud or trick,
and he did not intend that the instrument should be his will at the
time of fixing his signature thereto.
Rule 77
Section 1. Will proved outside Philippines may be allowed here.
Wills proved and allowed in a foreign country, according to the
laws of such country, may be allowed, filed, and recorded by the
proper Court of First Instance in the Philippines.
Testamentary capacity is the capacity to comprehend the nature of
the transaction in which the testator is engaged at the time, to
recollect the property to be disposed of and the persons who
would naturally be supposed to have claims upon the testator, and
to comprehend the manner in which the instrument will distribute
his property among the objects of his bounty. (Bugnao vs. Ubag,
014 SCRA 163)
Rule 77 Section 1 + testamentary capacity - will made in a foreign
country allowed here in the Philippines !!! (see Article 816)
A will allowed in a foreign country in accordance with the law of
that country may be allowed in the Philippines no need to prove
testamentary capacity and due execution (see Article 817).
Common Law conflicts rules
1) If the will is valid under the laws of the last domicile, the
will is valid everywhere with respect to movable property
2) but the probate in the last domicile does not affect real
property, as these will be governed by lex rei sitae
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Suntay vs. Suntay
(1954)
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
followed. Since Silvino did not cause the notification of the
other heirs, this petition must fall.
Vda. De Perez vs. Tolete
(1994)
FACTS: Each of the Cunanan spouses (Jose and Evelyn)
executed a will in New York containing similar provisions on the
presumption of survivorship. When the entire family perished in
a fire that gutted their home in New York, Rafael as the named
trustee in the will of Jose filed separate proceedings in New
York for the probate of the wills of his brother and sister-in-law.
Later, Salud Perez (mother of Evelyn) filed a petition for
reprobate in Bulacan. Rafael opposed by arguing that Salud
was not an heir as per New York law which must be the law
that should govern the wills as they were executed in New
York. In deciding the matter, the necessary evidence that
should be submitted are:
(1) the due execution of the will in accordance with the
foreign laws
(2) the testator has his domicile in the foreign country
and not in the Philippines
(3) the will has been admitted to probate in such country
(4) the fact that the foreign tribunal is a probate court
(5) the laws of a foreign country on procedure and
allowance of wills.
Except for the first and last requirements, the petitioner
submitted all the needed evidence. Salud failed to submit the
1st and 5th requirement. While the probate of a will is a special
proceeding wherein courts should relax the rules on evidence,
the goal is to receive the best evidence of which the matter is
55
susceptible before a purported will is probated or denied
probate. Not only that, Salud also failed to notify the heirs of
Jose of the proceedings.
HELD: The rule that the court having jurisdiction over the
reprobate of a will shall "cause notice thereof to be given as in
case of an original will presented for allowance" means that
with regard to notices, the will probated abroad should be
treated as if it were an "original will" or a will that is presented
for probate for the first time. Accordingly, compliance with
Sections 3 and 4 of Rule 76, which require publication and
notice by mail or personally to the "known heirs, legatees, and
devisees of the testator resident in the Philippines" and to the
executor are required.
F. Administration of Estates
Duties of the administrator:
1) to manage and settle the debts of the decedent (primary
purpose)
2) to distribute the residuum of the estate to the heirs
(secondary purpose)
When the will has been proved or allowed, it is the duty of the
probate court to issue letters testamentary thereon to the person
so named in the will upon the latter s application.
When there is no will, the court may appoint an administrator.
Two kinds of administrators:
a) domiciliary -power over assets located in state
b) ancillary- appointed by a foreign court to look after the
properties located in such foreign state
Tayag vs. Benguet Consolidated Inc.
(1968)
FACTS: BCI stocks owned by the decedent Idonah Slade
Perkins were in the possession of the domiciliary administrator
County Trust Company Of New York. Later, the CFI Of Manila
named Renato Tayag as the ancillary administrator. When
Tayag obtained a court order for the County Trust Company to
deposit the stocks to him, BCI appealed.
HELD: The appeal must fail. BCI is a Philippine corporation
owing full allegiance and subject to the unrestricted jurisdiction
of local courts. Its shares of stock cannot therefore be
considered in any wise as immune from lawful court orders.
The situs of shares of stock is the place of domicile of the
corporation. And since the power of the ancillary administrator
over shares located here is beyond question, it follows that the
stocks should be in the possession of Tayag.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Succession and administration of estates are governed by different
laws:
succession national law
administration situs of property (territorial/JDal)
______________
G. Trusts
Trust: a right of property, real or personal, held by one party for
the benefit of the other.
The trust contains an express choice-of-law provision.
The courts usually apply that law in keeping with the policy of
carrying out the intent of the creator of the trust.
When the trust does not contain an express choice-of-law
provision, the Court will deem controlling the law that will sustain
the validity of the trust.
Choices-of-law for testamentary trusts:
a) rules governing the intrinsic and extrinsic validity of wills
b) lex rei sitae with respect to the property
XVI. Choice of Law in Torts and Crimes
Tort: derived from the French word torquere or to twist . It is an
act or omission producing an injury to another without any
previous existing lawful relation of which the act or omission may
be said to be a natural outgrowth or incident.
A. Policies behind Conflicts Tort Law
2 Important Policies underlying substantive tort law:
1) to deter socially undesirable or wrongful conduct
2) to rectify the consequences of the tortuous act by
distributing the losses that result from accident and
products liability
In view of these, the policy behind tort law will most likely be a
strongly held policy of the state and as result, that state will not
easily displace its own law with the law of another state.
In determining the applicable law, consider the policies of: a)
upholding the justified expectation of parties, and b) minimizing
the adverse consequences that might follow from subjecting a
party to the law of more than one state.
56
Conflicts torts cases arise:
1) when the tortious conduct and place of resulting injury
are different and one state imposes higher standards
than the other state
2) when there are different product liability laws and varying
judicial interpretations of the extent of liability
Policies:
1) deter undesirable or wrongful conduct
2) rectify consequences by distributing the losses
similarity between family conflicts cases and torts conflicts
cases: strongly held policies of the state
3 concerns in torts:
1) achieving just and reasonable results (consider the
interest of both parties
2) societal interest
3) shielding defendant from unnecessary surprise
Distinguish: upholding the legitimate expectations of parties vs.
shielding defendant from unnecessary surprise the first is
used in contracts cases, the second is used in torts cases.
Why is the place of the tort (locus delicti) difficult to determine?
Different concepts of locus delicti:
1) civil law: place of tortious conduct
2) common law: place of injury/vested rights theory
to determine lex loci delicti: determine whether you are
dealing with a civil law or common law country
________________
B. Lex loci delicti commissi
Lex loci delicti commissi: the law of the place where the alleged tort
was committed. It determines the tort liability in matters affecting
conduct and safety.
Difficulty has been encountered in determining the locus delicti
where the liability producing conduct happens in one state but the
injuries are sustained in another.
Common law concept of place of wrong: place where the last
event necessary to make an actor liable for an alleged tort occurs.
It adheres to the vested rights theory, so that if harm does not take
place then the tort is not completed. Negligence or omission is not
in itself actionable unless it results in injury to another.
Civil law concept of place of wrong: place where the tortious
conduct was committed. This is premised on the principle that the
legality or illegality of a person s act should be determined by the
law of the state where he is at the time he does such act.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
The traditional view (whether the situs of the tort is the place of
conduct or injury) is that an actor liable by the lex loci delicti is
liable everywhere. Damages arising from torts committed in one
state are actionable in another state.
Alabama Railroad vs. Carrol: the negligent infliction of an injury in
one state creates a right of action there, which may be enforced in
any other state or country the comity of which admits of it.
Loucks vs. Standard Oil Co.
(1913)
FACTS: Loucks, a NY resident, was run down and killed by
Standard Oil employees in an accident while engaged in its
business. Under Massachusetts law, the corporation is liable for
the death of a person where the death was caused by the
negligence of the corporation s employees while engaged in
its business. However, under NY law, the corporation is liable
for such death where the death occurred in NY. The action to
recover damages was filed in NY.
HELD: Massachusetts law may be applied. A tort committed in
one state creates a right of action that may be sued upon in
another unless public policy forbids. A foreign statute is not law
in the state, but it gives rise to an obligation, which, if transitory,
follows the person and may be enforced wherever the person
may be found.
C. Modern Theories on Foreign Tort Liability
1. The Most Significant Relationship
This theory considers the state s contacts with the occurrence and
the parties.
Two-fold purpose:
1) identify the interested state
2) evaluate the relevance of these contacts to the issue in
question
The significant-relationship approach does not call for a
mechanical counting of factual contacts where strength is drawn in
numbers; instead the court localizes the state of the most
significant relation and assesses the event or transaction in the
light of the relevant policy considerations of the interested states
and these underlying policies.
Saudi Arabian Airlines vs. CA
(1998)
FACTS: Morada was a flight stewardess of Saudi Airlines. She
was involved in an attempted rape case, which led to her
conviction of violation of Islamic laws in Saudi. The Prince of
Makkah ruled that she was wrongfully convicted. However, she
was terminated from her employment by Saudia.
57
HELD: The RTC of Manila has JD to try the case, applying the
state of most significant relationship rule. The following
contacts should be considered in using this rule: place where
the injury occurred, place where the conduct causing injury
occurred, domicile/residence/nationality/place of business of
the corporation, and place where the relationship between the
parties is centered.
In CAB, the Philippines had the most significant contacts. The
overall injury occurred in the Philippines, Morada is a resident
and a Filipina national, Saudia is a foreign corporation engaged
in business here, and the relationship of the parties is centered
here.
2. Interest Analysis
This approach considers the relevant concerns the state may have
in the case and its interest in having its law applied on that issue.
The court should first determine whether there is a true or false
conflict.
False conflict: only one state has an interest in having its law
applied, and failure to apply the other state s law would not
impair the policy reflected in that law.
Apparent conflict: more than one state has an apparent interest in
applying its law to the case.
Prof. Currie: if only one state has a real interest in the case and the
other state s interest is insubstantial then there is a false conflict.
However, if both states have a real interest in applying their law
then the apparent conflict becomes a true conflict.
Problem with Interest Analysis approach: are the policies of the law
always discernible? Sometimes we merely guess the policies of the
state (because unarticulated in the law).
________________
3. Cavers Principle of Preference
This principle deals with rules that sanction some kinds of conduct
engaged in by a defendant in one state and extends the benefit of
this higher standard of conduct and financial protection to the
plaintiff even if the state of injury does not create analogous
liabilities.
Pangalangan: Since both states consider that a tort has been
committed, the law of the state which places a higher standard of
conduct should apply. This is true even if this is the place of
tortious conduct and not the place of injury.
Schmidt vs. Driscoll Hotel
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
(1957)
FACTS: Schmidt sued Driscoll Hotel for illegally selling liquor to
Sorensen, who was the driver of a vehicle which turned over in
Wisconsin. Schmidt was a passenger of that vehicle and
sustained injuries as a result of the accident. The suit was filed
in Minnesota, where the illegal sale was conducted.
HELD: Minnesota court has jurisdiction, even if the injury which
followed the illegal sale occurred outside Minnesota. The
Restatement should not be applied where the plaintiff would
have no remedy against the offending liquor dealer. Under the
principles of equity and justice, the Minnesota law granting him
a remedy should be applied, considering that all the parties are
residents of Minnesota, Driscoll Hotel was licensed under
Minnesota law, the violation of Minnesota law occurred there,
and the wrongful conduct was completed by Sorensen in
Minnesota.
Schmidt illustrates the imposition of liability under a substantive
rule of tort law that has a strong underlying admonitory policy.
American Contributions to Conflicts Tort Law
The determination of whether the law where the tort was
committed or the law of the domicile of the parties is the
controlling law is considered one of the major contributions of
American jurisprudence to international conflicts thought.
Law of the tort: deemed as the proper law in questions involving
regulation of conduct.
Law of the domicile of the parties: governs in matters that relate to
loss-distribution or financial protection.
In modern approaches, there is a distinction between true or false
conflict.
True conflict: both states have an interest in having their
law applied
maybe true conflict
false conflict: no choice necessary the court should
apply the law of the only interested state
_______________
D. Foreign Tort Claims
Tortious liability is transitory the liability resulting from the tort is
deemed personal to the perpetrator of the wrong, which follows
him wherever he goes. Compensations may be exacted from him
in any proper tribunal; the right to sue is not confined to the place
where the cause of action arises.
i. Conditions for the enforcement of tort claims
58
a) the foreign tort is based on a civil action and not on a
crime
b) the foreign tort is not contrary to the public policy of the
forum
c) the judicial machinery of the forum is adequate to satisfy
the claim
The defendant in a transnational tort is often sued in a foreign
court against his will; his consent to be sued is not necessary for
the acquisition of jurisdiction by the court. Hence, questions as to
the legitimacy of the JD and validity of the decision may arise.
ii. Products liability of the foreign manufacturer
Conflicts torts cases arise due to significant differences in the laws
of states on the basis and extent of liability for defectively
manufactured products.
Asahi Metal Industry vs. Superior Court of California
(1987)
FACTS: Asahi Metal manufactures tire valve assemblies in Japan
and exports them, including to a Taiwanese company which, in
turn, incorporates them into finished tires sold in the US. The
driver of a motorcycle, who had an accident resulting in injuries
to him and death to his passenger, sued the Taiwanese
company. The Taiwanese company filed a cross-complaint
against Asahi.
HELD: The California court has no JD over Asahi Metal. The
constitutional touchstone/test of due process is whether the
defendant purposefully established minimum contacts in the
forum state. And minimum contacts must have a basis in
some act by which the defendant purposefully avails itself of
the privilege of conducting activities within the forum state,
thus invoking the benefits and protections of its laws.
In the CAB, no purposeful availment of the California market on
the part of Asahi. It does not do business in California; has no
office, agents, employees, or property in Cal.; does not
advertise or otherwise solicit business there; and did not create,
control, or employ the distribution system that brought its
valves to California.
Societe Nationale Industrille Aerospatiale vs. Lee Kui Jak: An
Aerospatiale helicopter crashed in Brunei, killing a passenger who
was a Brunei resident. The administrator of the estate brought the
action in Texas, where Aerospatiale does business. Held: Brunei
(where the deceased lived and the helicopter crashed) was the
natural forum for the trial for an action for damages against the
manufacturer of the helicopter, and it would be oppressive for the
plaintiffs to continue with the Texas proceedings as Aerospatiale
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

would not be able to pursue legal proceedings against the not follow this, and include an additional requirement (purposeful
Malaysian company which operates and services the helicopter. availment).
________________
Bier vs. Mines de Potasse: A Dutch market gardener filed an action
for damages in a Dutch court against a French mining company.
The Dutch court held that it had no JD, but the French court held iii. The Alien Tort Act
that the plaintiff could elect where to sue (place of damage or
place of injurious conduct). The Alien Tort Statute granted US district courts original JD over
any civil action by an alien for a tort committed in violation of the
Sovereignty as Basis of Jurisdiction law of nations or a treaty of the US.

The sovereignty model has been accepted both to:

a) justify any exercise of jurisdiction over a defendant
present within the territory, however short ( tag
jurisdiction )
b) deny enforcement of a foreign court judgment over a
defendant who was not present within that court s
jurisdiction
Worldwide Volkswagen Corp. vs. Woodson
(1980)
FACTS: The spouses Robinson purchased a car from Seaway
Volkswagen in New York. They met an accident in Oklahoma
and pinned the blame on the defective design of the car. They
brought a suit against the retailer and distributor in Oklahoma.
Hilao vs. Estate of Ferdinand Marcos
(1996)
FACTS: A class suit was brought against Marcos by parties
seeking damages for human-rights abuses committed against
them or their decedents. The Hawaii district court found for
Hilao and ordered a verdict of almost $2 billion in damages.
The Estate in its appeal, argues that the Alien Tort Claims Act
does not apply to conduct that occurs abroad, and since the
acts complained of all occurred in the Phils., the court has no
JD
HELD: The court has JD. In a prior appeal it has been held that
subject-matter JD was not inappropriately exercised even
though the actions xxx occurred outside the US.

HELD: Oklahoma court has no JD. A state court may exercise

Filartiga vs. Pena-Irala
personal JD over a nonresident defendant only so long as there
(1980)
exist minimum contacts between the defendant and the
FACTS: Plaintiffs brought an action in the US against Pena-Irala
forum state. The 2 functions of the concept of minimum
for wrongfully causing the death of Dr. Filartiga s son in
contacts is to protect the defendant against the burdens of
Paraguay.
litigating in a distant or inconvenient forum, and to ensure that
the states, through their courts, do not reach out beyond the
HELD: The US federal court has JD, on the basis of the Alien
limits imposed on them by their status as coequal sovereigns in
Tort Statute. This action is undeniably an action by an alien, for
a federal system.
a tort only, committed in violation of the law of nations. A
wrong is recognized as a violation of the law of nations where
In CAB, there us a total absence of those affiliating
the nations of the world have demonstrated that the wrong is
circumstances that are a necessary predicate to any exercise of
of mutual, and not merely several, concern.
state-court JD (no activity whatsoever on Oklahoma; no sales
closed nor services performed there; no availment of the
privileges and benefits of Oklahoma law; no solicitation of
*The concept of accountability, if considered the core of the
business there).
Alien Torts Act (as espoused by the US Justice Department in
Trajano vs Marcos), would be a significant setback to the
advancement of international law.

In Asahi, even if there were minimum contacts, it failed the

reasonableness test.
Guinto vs. Marcos
(1986)
Criticism of Asahi: additional acts requirement is a reinvention
of the stream of commerce law. The fear is that the court might go FACTS: Guinto and Suarez filed an action for damages against
back to pre-International Shoe standards n JD (requirement of Marcos in California under the Alien Tort Claims Act. According
actual presence). to Guinto, Marcos act of seizing their film 100 Days in
September violated their freedom of speech.
In Worldwide Volkswagen, the only requirements for the exercise of
JD were minimum contacts and the reasonableness test; Asahi did
59
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

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.
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.

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 tortious conduct violated an internationally protected
human right.
iv. Philippine Rule on Foreign Torts
There is no specific statutory law governing the enforcement of
claims for damages arising form foreign torts. But on the theory of
vested rights the victim of a foreign tort may decide to file the case
in the Philippines.
It has been suggested that the English Rule may be followed, such
that the tort committed abroad is actionable in the country where
it was committed and also under Philippine law.
In ordinary foreign tort, the court acquiring JD must be either the
place of tortious conduct or place of injury. In Alien tort Statute, US
courts may acquire JD even if it is neither the place of tortious
conduct nor place of injury.
law of nations (Filartiga): mutual concern nations consider
the act to be detrimental to all nations; it is a violation of a law of
all countries.
Guinto: violation of law of nations test
1) the violation affects relationship between states, or an
individual and a foreign state
2) used by the states for their common good and/or
dealings inter se
_______________
E. Distinguishing between Torts and Crimes
Tort Crime

Two conditions for a case based on a foreign tort to be filed in the Transitory in character; Local in character; the
Philippines (English Rule): hence liability is deemed perpetrator of the
personal to the wrong can be sued only
1) the wrong must be of such a character that it would have tortfeasor and make him in the state wherein he
been actionable if committed in the Philippines amenable to suit in commits the crime
whatever JD he is found
2) the act must not have been justifiable by the law of the
place where it was done An injury to an individual An injury to the state
who may be situated in where it is committed
any place
Time, Inc. vs. Reyes
(1971) Liability is attached to Promulgated to punish
FACTS: Villegas and Enrile filed a complaint for damages the perpetrator to and reform the
against Time, Inc. upon an alleged libel arising from a indemnify the victim for perpetrators and deter
publication of Time Magazine. Plaintiffs filed their action in CFI injuries he sustained them and others from
violating the law
Rizal. But according to the applicable law, they may file the
action only in the place of first publication or in the City of
F. Lex loci delicti
Manila (since they are public officers).
Under the territorial principle, crimes committed within the
HELD: The case should be dismissed for improper venue. The Philippines by all persons, whether Filipino citizens or aliens, are
only alternative allowed to the public official is to prosecute in prosecuted and penalized under Philippine law. As a rule, criminal
the place where the offending article was printed and first laws of a state are effective only upon persons who actually
published; but in the CAB the alternative was not open to commit the crime within the state s territory.

60
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
The lex loci delicti or the law of the place where the crime was
committed is the controlling law since it determines the specific law
by which the criminal is to be penalized, and designates the state
that has the JD to punish him.
3 Exceptions to the Territorial rule:
1) First Exception: crimes committed by state officials,
diplomatic representatives and officials of recognized
international organizations (based on doctrine of state
immunity)
Wylie vs. Rarang
(1992)
FACTS: Wylie and Williams are officers of the US Navy
stationed in the Subic Naval base, and are in charge of the
publication Plan of the Day. Rarang filed an action for
damages against them for libelous statements published in the
POD.
HELD: Wylie and Williams are not immune from the suit. They
are sought to be held answerable for personal torts in which
the US is not involved; if found liable, they alone must satisfy
the judgment. The Bases Treaty provision on immunity could
not possibly apply in this case, as it is presumed that the laws of
the US do not allow the commission of crimes in the name of
official duty. The general rule is that public officials can be held
personally accountable for acts claimed to have been
performed in connection with official duties where they have
acted ultra vires or where there is showing of bad faith.
This immunity for sovereign acts is impliedly waived when the
foreign state and its officials perform private, commercial or
proprietary acts.
In Rarang, although the publication was part of the duty of Wylie
and Williams, the goal of the publication of the complaint would
have been achieved without identifying Rarang by name.
Liang (Huefeng) vs. People
(2000)
FACTS: Liang, a Chinese working at the ADB, was charged by a
fellow worker with grave oral defamation. The lower court
dismissed the complaint on the ground that Liang is covered
by the immunity provision under the Agreement between ADB
and the Phil. Government.
HELD: Liang is not immune from suit. The immunity under the
Agreement is not absolute, and it only extends to acts done in
official capacity. Slandering a person could not possibly be
covered by the immunity agreement because our laws do not
61
allow the commission of a crime, such as defamation, in the
name of official duty.
2) Second Exception: crimes committed on board a foreign
vessel even if it is within the territorial waters of the
coastal state
In the Philippines, our courts will not acquire JD over offenders nor
can Phil. laws apply as long as the effect of such crime does not
disturb our peace and order.
US vs. Fowler
FACTS: Fowler et al were accused of theft on board the US
vessel Lawton while it was traveling on the high seas.
HELD: Philippine courts have no jurisdiction over Fowler. Act
400 granting JD to RP courts for crimes and offenses
committed on the high seas, apply to ship or water craft
registered or licensed in the Philippines only. In the CAB, the
Lawton was not registered in the Philippines; it was a US vessel.
People vs. Wong Cheng
(1922)
FACTS: Wong was charged for having illegally smoked opium
on board an English vessel Changsa while anchored in Manila
Bay.
HELD: Under the English rule which is applicable here (it is the
prevailing theory in the US), to smoke opium within our
territorial limits, even though aboard a foreign merchant ship, is
certainly a breach of the public order here established. It
causes such drug to produce its pernicious effects within our
territory. It seriously contravenes the purpose that our
Legislature had in mind in enacting the repressive statute, and
is therefore triable in our courts.
US vs. Look Chaw
(1910)
FACTS: Two sacks of opium were found to be in the control of
Look Chaw aboard the Erroll, an English steamship. A
complaint for possession and sale of opium was filed against
him.
HELD: Philippine courts have jurisdiction. Although the mere
possession of an article of prohibited use in the Philippines,
aboard a foreign vessel in transit, in any local port, does not as
a general rule constitute a crime triable by the courts of the
Islands, such vessel being considered as an extension of its own
nationality, the same rule does not apply when the article, the
use of which is prohibited in the Islands, is landed from the
vessel upon Philippine soil.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

3) Third Exception: crimes which, although committed by HELD: Gray is not entitled to the right to examine the books of
Philippine nationals abroad, are punishable under Insular. Gray is bound by the NY law which only gives him the
Philippine law (ex. Art. 2 RPC) 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
Fowler Cheng Look Chaw his interest as stockholder
b. he exercises right in good faith and for a specific and
FLAG US English English
honest purpose not merely to satisfy curiosity or for
speculative or vexatious purposes.
LOCATION High seas Within RP Within RP
territorial territorial
Anglo American Theory on Corporations
waters waters

CRIME theft Smoking Possession

Bank of Augusta vs. Earle
opium and selling
(1839)
of opium
FACTS: Bank of A (incorporated in Georgia), thru M Gran
bought bills from Earle in Alabama. Bills were unpaid so Bank
RESULT No JD Acquired Acquired
JD JD
sued Earle. TC ruled that the Georgian Bank could not exercise
power in Alabama thereby making the contracts void.
In RP, we follow the French Rule.
HELD: Bank can exercise its powers in Alabama and the
XVII. Choice of Law Affecting Corporations and Other Juridical contracts are therefore valid. It is well-settled that by the law of
Entities the comity of nations, a corp. created by 1 sovereignty is
permitted to make contracts in another and sue in its courts
and that the same law of comity prevails in several States of US
A. Corporations including Alabama. Alabama courts have held that a foreign
corp may sue in its courts based on the comity of nations.
A corporation is an artificial being created by operation of law,
having the right of succession and the powers, attributes and
Four Basic (Important) Theories from the case:
properties expressly authorized by law or incident to its existence.
1) a corporation, being a creature of law, has no legal status
Foreign corporation formed under the laws of a state other than
beyond the bounds of the sovereignty within which it was
the Phils; such laws allowing Filipino citizens and corporations to
created
do business there. It shall have a right to do business here only
after obtaining a license and a certificate of authority from the
2) a corporation cannot exercise powers not granted by its
appropriate government agency.
corporate charter or by the laws of the state of
incorporation
1. Personal Law of a Corporation
3) no state is under any obligation to adhere to the doctrine
The personal law of the corporation is the law of the state where it
of comity (every state has the power to refuse
is incorporated. If the law creating it does not authorize it to enter
recognition)
into certain contracts, such contracts which can be made in other
states shall be void despite the express permission given by the
4) a state is not obliged to grant to a foreign corporation
other state.
the privileges and immunities common to its citizens

The power of a foreign corporation depends upon the laws of the

ME Gray vs. Insular Lumber Co.
(1939)
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.
state recognizing it. It may impose conditions or limitations subject
to a few exceptions as decided by US courts, to wit:
a) commerce clause prohibits a state from imposing
conditions on corporations engaged in interstate
commercial activities and provides the basis of federal
power to regulate interstate commerce.

62
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
b) Since it is considered a person , once allowed to enter
a state and acquire property, it cannot be discriminated
against by domestic corps
c) Unconstitutional conditions forbids a state from
requiring the foreign corporation to give up its
constitutional rights either as a prerequisite to allowing it
to do business or to avoid being removed from that state
A foreign corporation, although a person, is not a citizen entitled
to the privileges given by the state to its individual citizens.
If according to the personal laws of the corporation, stockholders
are given certain rights, such rights cannot be diminished nor
added upon by the law of the place where the corporation does
business. This is because such rights are already fixed by the
corporation.
________________
2. Exceptions to the Rule of Incorporation Test
a. Constitutional and Statutory Restrictions
A state may, by legislation, exclude a foreign corp altogether,
subject to the constitutional limitations, or prescribe any conditions
it may see fit as a prerequisite to the corporation s right to do
business within its territory.
1987 Phil Constitution:
a. regulates exploration, development and utilization of
natural resources such that only 60% Filipino-owned
corps may be allowed to engage in these activities
b. the nation s marine wealth and the exclusive economic
zone is reserved exclusively to Filipinos
c. Congress is empowered to reserve certain areas of
investments to 60 % Filipino owned corps or provide for
a higher percentage (e.g. mass media 100%)
Pedro Palting vs. San Jose Petroleum
(1966)
FACTS: Palting opposes the tie-up between San Jose
Petroleum (a Panamanian corp.) and San Jose Oil (domestic
corp.) as being violative of the Constitution and the Petroleum
Act. SJP claimed that it is entitled to the Parity Amendment
which grants to US citizens the right to use & exploit natural
resources in the Phils because its stockholders are US citizens.
HELD: SJP is not covered by the Parity Agreement. It is not
owned or controlled directly by US citizens. It is owned by
another Panamanian corp., Oil Investments. Oil Investments on
the other hand is owned by 2 Venezuelan corps. Even
assuming that the stocks of the 2 Venezuelan corps are owned
by US citizens, to hold that the set-up in CAB falls within the
63
Parity Amendment is to unduly stretch and strain the language
and intent of the law. There would be practical impossibility to
determine at any given time the citizenship of the controlling
stock.
b. Control Test During the War
During wars, courts may pierce the corporate identity and look into
the nationality of stockholders to determine the citizenship of the
corp.
Filipinas Compania de Seguros vs. Christern, Huenfeld, Co., Inc.
(1951)
FACTS: Christern (German Co.) filed a claim against Filipinas
(US Co.) for recovery on fire insurance policies issued by the
latter. F refused to pay claiming that the policies ceased to be
in effect on the date the US declared was against Germany. Dir.
Of Bureau of Financing directed F to pay C.
HELD: The policy ceased to be valid and binding because of
the fact that majority of the stockholders of C are Germans
and it became an enemy corporation when war was declared.
Under Phil Insurance Code, anyone except a public enemy may
be insured. C is a public enemy at the time the insurable risk
occurred. But C is entitled to a return of the premiums paid.
Filipinas Compania case was decided that way because of the
government interest involved.
_______________
Daimler Co. Continental Tire and Rubber Co.: HELD: An English
corporation with an English secretary but whose shares of stock
are controlled by German nationals was considered an enemy
corporation and prohibited from trading in England. It ruled that
the company itself was incapable of loyalty or enmity. These
qualities are attributable only to human beings. The company
therefore had the predominant character of its shareholders being
Germans.
3. Domicile or Residence of Foreign Corporations
Art. 51, CC
When the law creating or recognizing them, or any other
provision, does not fix the domicile of juridical persons, it is
understood to be
a. the place where legal representation is established
b. where they exercise their principal functions
A foreign corp. granted license to do business here acquires a
domicile in the Phils.
State Investment House vs. Citibank
(1991)
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
FACTS: CMI obtained loans from Citibank. CMI defaulted.
Citibank filed petition for involuntary insolvency against CMI
with CFI, Rizal. State Investment, a creditor of CMI, opposed
claiming that Citibank had no jurisdiction because the banks
are not resident creditors of CMI.
HELD: The Phil branches of the bank are residents of the Phils
being resident foreign corporations as defined in the Tax Code
and other Banking Laws. What effectively makes a foreign corp
a resident corp in the Phils is its actually being in the Phils and
licitly doing business here (locality of existence) The grant of
license merely gives legitimacy to its doing business here but it
does not make the corp a resident. Also, the failure of the bank
to aver categorically that they are residents are not fatal to the
cause of action where it alleged that it is a foreign bank
licensed to do business here.
4. Jurisdiction Over Foreign Corporations
The dictum that a corporation has force only in the incorporating
state and no existence outside that state has been abandoned. The
prevailing rule is, with the consent of a state, a foreign corp. shall
be recognized and will be allowed to transact business in any state,
which gives its consent.
Requirements for License: Secs. 125-128, Corpo Code)
a. sworn application
b. copy of articles of incorporation
c. designation of an agent
d. sworn certification of an official of the incorporating state that
a similar right is given to Filipinos in that state and that the
foreign corp. is in good standing
e. statement under oath by the official of the corp. attesting that
the corp is solvent and in sound financial condition
Foreign Corporations doing Business are Bound by Philippine Law
Art. 129, Corp Code
All foreign corporations lawfully doing business in the Philippines
shall be bound by all laws, rules and regulations applicable to
domestic corporations.
Exceptions:
1. laws on creation, formation, organization or dissolution of
corporations
2. laws which fix the relations, liabilities, responsibilities or duties
of stockholders, members or officers of the corp to each other
Rule 14, Sec. 14 ROC
Service upon foreign corporations doing business in the Phils. may
be made on the:
64
1. resident agent
2. in the absence thereof, to the government official designated
by law or any of its officers or agents within the Phils
3. on any officer or agent of the corp in the Phils
*a fourth method is established by case law: service thru
diplomatic channels
5. Right of Foreign Corporation to bring Suit
Acquisition of a license by a foreign corporation is an essential
prerequisite for filing of suit before our courts.
Art. 133, Corp Code states that these corporations may be sued or
proceeded against before Phil courts or administrative tribunals on
any valid cause of action recognized under Phil law.
Home Insurance Co. vs. Eastern Shipping Lines
(1983)
FACTS: Home Insurance was subrogated to the rights of
shippers against eastern Shipping for damages on cargo.
Eastern refused to pay. HI filed action to recover sum of
money. TC dismissed because HI failed to prove capacity to
sue.
HELD: HI has capacity to sue because at the time the
complaints were filed, it already had a license to conduct
insurance business in the Phils. Insurance contracts are not null
and void for lack of license at the time it was entered into. The
Corp. Code is silent on the status of the said contracts. Also,
the object of the law in requiring registration is to subject the
foreign corp. to the JD of our courts.
Atlantic Mutual Insurance vs. Cebu Stevedoring
(1966)
FACTS: Cebu Stevedoring carried copra for Procter & Gamble.
Copra were insured with AMI. Bec. of damages, AMI sued Cebu
Stevedoring. CS filed a MTD bec. AMI had no capacity to sue.
TC ruled that it must allege that it has a license to be able to
sue.
HELD: Such allegation is unnecessary. However, AMI s mere
allegation that it is a foreign corp is not sufficient. It must state
WON it is doing business in the Phils bec different rules attach
to the same. If it is engaged in business, it must be licensed to
be able to sue. If not so engaged, the license is not required
and it may sue esp. if it is a single/isolated transaction.
6. Exceptions to License Requirement
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
a. Isolated Transactions
This has been defined as one which is occasional, incidental and
casual, not of a character to indicate a purpose to engage in
business. It does not constitute doing business under the law.
Eastboard Navigation vs. Ysmael & Co.
(1957)
FACTS: Eastboard was able to secure a favorable decision from
NY arbiters against J.Y. & Co. It brought an action for
enforcement of a money claim against JY & Co. in the Phils. JY
opposed alleging that E had no capacity to sue.
HELD: E has capacity to sue. The license is not necessary
because it is not engaged in business in the Phils. The 2
isolated transactions do not constitute engaging in business
within the purview of the Corpo Law.
b. Action to Protect Trademark, Trade Name,
Goodwill, Patent or for Unfair Competition
Even without a license, a foreign corporation may file complaint for
unfair competition since it is a suit enjoining the unfair trader from
pursuing the unlawful competition & for the aggrieved party to
recover damages. This is based on equity considerations.
Converse Rubber vs. Jacinto Rubber:
FACTS: Converse owns the trademark of Converse Chuck
Taylor All Star . Jacinto manufactures shoes of identical
appearance. Hence, this suit.
HELD: Sec 69 of the Corp Law does not disqualify Converse
from filing the suit although it is unlicensed to do business and
is not doing business in the Phils. This is in compliance with the
Convention of Paris for the Protection of Industrial Property
from which the Phils adheres to and which US is a signatory.
Leviton Industries vs. Salvador
(1982)
FACTS: Leviton Manufacturing (US) sued Leviton Industries
(Phil) for unfair competition bec. the latter uses the trademark
Leviton. Defendant filed MTD for failure to allege capacity to
sue.
HELD: Plaintiff failed to allege capacity to sue.
1. All that Leviton Manufacturing alleged is that it is a foreign
corporation. It should have, in addition, alleged the ff
pursuant to Sec. 21-a:
a. it registered its trademark with the Phil. Patent Office or
that it is an assignee of the trademark, and
65
b. that the country of which it is a citizen or domiciliary grants
to Filipino corps the same reciprocal treatment, either in a
treaty, convention or law.
2. It also violates Sec. 4, Rule 8 of the Rules of Court, which
states that:
Facts showing the capacity of a party to sue or be sued or
the authority of a party to sue or be sued in a
representative capacity or the legal existence of an
organized association of persons that is made a party,
must be averred.
c. Agreements Fully Transacted Outside the
Philippines
A foreign corporation is allowed to maintain an action on a
transaction wholly celebrated and consummated abroad so as not
to impair the policy of stabilizing commercial transactions.
Universal Shipping Lines vs IAC
HELD: The private respondent may sue in the Phils upon the
marine insurance policies to cover international-bound cargoes
shipped by the carrier. It is not the lack of the license but doing
business without such license which bars a foreign corporation
from access to our courts.
Hang Lung Bank vs. Saulog
(1991)
FACTS: Hang Lung Bank, not doing business in the Phils,
entered into continuing guarantee agreements with Cordova
Chin San in HongKong for the debts of Wolder Enterprises.
Wolder defaulted so Hang Lung sued Wolder and Chin San.
No payment was made so it sued Chin San in RTC, Makati for
enforcement of its money claim. Chin San moved to dismiss for
incapacity to sue.
HELD: A foreign bank not doing business in the Phils, such as
Hang Lung, may sue a resident for contracts entered and
consummated outside the Phils.
Reasons for rule: if not adopted,
a. it will hamper the growth of business between Filipinos
and foreigners
b. it will be used as protection by unscrupulous Filipinos
who have businesses abroad
d. Petition Filed is Merely a Corollary Defense
in a Suit against it
Time Inc. vs. Reyes
HELD: The court allowed a foreign corp is not maintaining a
suit in our courts but is merely defending itself when it files a
complaint for the sole purpose of preventing the lower court
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
from exercising jurisdiction over the case. As such, it is not
required to allege its capacity to sue.
Phil. Columbia Enterprises vs. Lantin
(1971)
FACTS: Katoh & Co. filed a complaint against Phil Columbian.
Phil Columbian challenged its capacity to sue. TC deferred the
determination of this issue until trial on the merits. PC opposed
claiming that if it files a counterclaim, it will be waiving its right
to assail the capacity to sue of Katoh.
HELD: A counterclaim is a complaint against the plaintiff. It
would not be the foreign corp who will be maintaining a suit.
Therefore, Sec. 69 of the Corp Law will not apply.
7. Definition and Scope of Transacting
Business
A foreign corporation may do business, state consent being
presumed, except:
1. where it is prohibited by express statutory authority or
constitutional enactment
2. where it is seeking to perform acts which are contrary to
public policy
3. where it is seeking to exercise extraordinary and special
franchises
4. where it is seeking to perform acts which are not authorized
by the law of the state of its incorporation
Doing Business (Foreign Investments Act)
- soliciting orders,
- service contracts,
- opening offices whether called liaison offices,
- appointing representatives if the latter stays for at least 180
days,
- participating in the management, supervision or control of
any domestic business
- and any other act that imply a continuity of commercial
dealings
- and contemplate in the performance of acts or works
- the progressive prosecution of commercial gain or of the
purpose/object of the business organization
What is not doing business:
1. mere investment as a shareholder
2. exercising of rights as investor
3. having a nominee director or officer to represent interests
4. appointing a representative or distributor in the Phils which
transacts business in its own name and for its own accounts
Doing business serves as the basis for jurisdiction over corps on
the theory that they are present in the state or have consented to
suit by making that state a major place of business.
66
Avon Insurance vs. CA
(1997)
HELD: A reinsurance company is not doing business in a
certain state merely because the property or lives which are
insured by the original insurer company are located in that
state since the reinsurance contract is usually a separate and
distinct arrangement from the original contract of insurance,
whose contracted risk is insured in the reinsurance agreement.
The term doing business in the Phils implies a continuity of
commercial dealings and arrangements and contemplates, to
that extent, the performance of acts or works or the exercise of
functions normally incident to and in the progressive
prosecution of the purpose and object of its organization.
Wang Laboratories vs. Mendoza
(1987)
FACTS: Wang Lab (US corp) sells its products in the Phils thru
its exclusive distributor, Exxbite. ACCRS sued WL for breach of
contract for failure to develop the software program
contracted. WL filed MTD on the basis of lack of jurisdiction
over its person bec. the service was invalid it being a foreign
corp not engaged in business in the Phils.
HELD: WL is doing business in the Phils. It has installed 26
products in the Phils and has registered its tradename with
PPO. It allowed E to use such trademark and to advertise the
same.
Thus, it cannot be said that the case involved an isolated or
single transaction. The transaction is not merely incidental or
casual but is of such nature as to indicate a purpose to do
other business in the State.
CIR vs. JAL
(1991)
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
business, there must be a continuity of conduct and intention
to establish a continuous business (i.e. appointment of a local
agent) and not a temporary one. JAL constituted PAL as a local
agent to sell tickets which is the lifeblood of airline tickets, the
generation of sales being its paramount objective.
Merrill Lynch Futures vs CA
(1992)
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
FACTS: Lara spouses entered into a Futures Customer
Agreement with Merrill Lynch Futures Inc. They become
indebted to it after a loss in the business. Laras refused to pay
and claimed that the transactions were void because MLFI had
no license to operate as a commodity or financial futures
broker.
HELD: MLFI had the capacity to sue and Laras are estopped
from denying the same after having done business with it over
many years. The purpose of applying the doctrine of estoppel
is to prevent persons from taking undue advantage of a corp s
non-compliance with the statutes where such person received
benefits under their contract.
Granger vs. Microwave Systems
(1990)
FACTS: Granger (US) sued MSI (Phil) for recovery of a sum of
money. MSI did not pay and claimed that G had no capacity to
sue bec. it was unlicensed.
HELD: G had no capacity to sue because of its being an
unlicensed foreign corp doing business in the Phils. Neither
does it fall under the established exceptions. Granger had the
burden of showing that the finding fell under an exception. The
purpose of requiring license is to enable Phil courts to exercise
jurisdiction over them. If the foreign corp operates here without
submitting to our laws by securing a license, they may not be
allowed to invoke our laws for their protection.
B. Special Corporations
1. Religious Societies and the Corporation Sole
A religious society, if controlled by aliens, is not permitted to
acquire lands.
A corporation sole is an incorporated office composed of only one
person as in the cases of the chief archbishop, bishop, priest,
minister or an elder of a religious sect which may form a
corporation sole for the purpose of managing its affairs, property
and temporalities.
Roman Catholic Administrator vs. LRC
HELD: The 60% Filipino capital requirement to own lands was
not intended to apply to corporations sole because it is
composed of one person usually a head or bishop of a diocese
but he is only the administrator and not the owner of the
temporalities. Such are administered for and in behalf of the
faithful who are Filipino citizens.
2. Transnational Corporations
67
Transnational corporations are clusters of several corporations,
each with a separate entity, existing and spread out in several
countries, but controlled by the headquarters in a developed state
where it was originally organized.
But the transnational corporations are established under and
governed by each host country s national laws.
However, all locally incorporated branches are joined together by
the common control and management of higher officials in the
home state.
As to liability, the single unit comprising the cluster is held liable
according to the laws of the host country but the transnational
corporation, in its entirety, is not answerable to any legal order.
Derivative Jurisdiction over Foreign Corporations (parent-subsidiary)
2 Important Issues
1. whether ownership by the parent over the subsidiary s stock
is enough to give jurisdiction over the subsidiary
2. whether the activities of the subsidiary in a state will give that
state jurisdiction over he parent corporation
Restatement 2nd:
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 adequately
preserved, the courts will consider whether the subsidiary has its
own records, assets, advertising, employees, payroll and
accounting and whether its directors and headquarters are
different form those of the parent.
In the converse situation, jurisdiction over the parent may give
jurisdiction over the subsidiary if the separate corporate existence
of each has not been adequately maintained or if the parent has
acted within the state as the subsidiary s agent.
C. Partnerships
Partnership is formed by 2 or more persons who bind themselves
to contribute money, property or industry to a common fund with
the intention of dividing the profits among themselves.
Phil internal law provides that if the domicile of the partnership is
not identified by the law creating it, it is deemed domiciled in the
place where it has its legal representation or where it exercises its
principal functions.
What matters are governed by the personal law of the partnership?
1. nature, attributes and capacity to contract of the partnership
2. whether or not a partnership has been constituted (esp. the
conditions and formalities required)
3. determination of WON it requires a separate juridical
personality (Common law does not consider a partnership a
legal person but civil law endows partnerships with a separate
legal personality)
4. grounds for dissolution and termination of partnerships
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

5. liability of partners esp. if limited partnership is allowed 1) Comity

What are governed or subject to the law of the place of business? According to Cheshire, the theory on comity mean that in order to
maintain reciprocal treatment from the courts of other countries,
1. entitlements and limitations, in general we are compelled to take foreign judgments as they stand & to
2. creation of establishments in the state give them Full faith & Credit.
3. mercantile operations
4. jurisdiction of nations Comity calls for reciprocity between the concerned jurisdictions.
Thus, forum A will withhold recognition & enforcement of prior
judgment if it comes from Forum B, w/c does not give same
concession to forum A judgment.
Domestic Corp.:
a) Can sue 2) Obligation of foreign judgments
b) Can be sued
This doctrine of obligation is derived from the rigid & unyielding
Foreign Corps. vested rights theory.
1) Doing Business Judgment of a foreign court of competent jurisdiction is
a. With license can sue and be sued considered as imposing a duty or obligation on the losing litigant.
b. Without license cannot sue, can be sued i.e.:
Forum 1- adjudicates debt owing to plaintiff
2) Not Doing Business (isolated transaction) can sue and Forum 2- treats F1 judgment as evidence of debt w/c
be sued may be enforced in F2 by an action of debt
________________

Goddard vs. Godard

PART FIVE: FOREIGN JUDGMENTS
XVIII: Recognition and Enforcement of Foreign Judgments
A. Distinction between Recognition and Enforcement
Foreign judgments - all decisions rendered outside the forum
and encompasses judgments, decrees & orders of courts of
foreign countries as well as of sister states in a federal system of
gov t.
Conceptual & Procedural Differences between Recognition &
Enforcement:
Rules on recognition & enforcement are analogous but there are
differences in conceptual & procedural aspects.
ENFORCEMENT: This happens when a successful plaintiff fails to
enforce judgment in the forum court so he seeks to carry out the
execution of the judgment in another state.
This requires the filing of an action and a new judgment before the
properties of the defendant can be attached.
RECOGNITION: This may arise when a successful defendant wins
and asserts that decision to preclude the plaintiff from filing a suit
on the same claim in another forum. It is basically a passive act
because it does not require the filing of an action in another
forum. EX. Decree of divorce.
(1870)
FACTS: Godard (French) obtained a favorable ruling by a
French court arising on a charter party obligation against Gray
(English). The French court interpreted the clause penalty for
non-performance of this agreement, estimated amount of
freight as a clause that sets the limits to liability to one voyage
between the parties to the charter party contrary to the English
interpretation. When this French judgment was sought to be
enforced in England, Gray interposed in defense that the
erroneous French judgement is a bar to the action for
enforcement in England.
HELD: it is not a bar. In England, foreign judgement are
enforced based on the principle that where a court of
competent jurisdiction has adjudicated a sum of money to be
due from one person to another, a legal obligation arises to
pay the sum, on which an action of debt to enforce the
judgement may be maintained and not merely out of
politeness and courtesy to other tribunals of other countries.
Anything that negates the existence of a legal obligation or
excuses the defendant from performance is a good defense to
the action (ex. Evidence that court exceeded its jurisdiction or
the judgement was obtained thru fraud)
C. Policies Underlying Recognition and Enforcement
1. Res judicata

B. Bases of Recognition and Enforcement of Foreign Many courts recognize & enforce foreign judgments on ground of
Judgments res judicata, under which principle:

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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
a. those who contested an issue shall be bound by the
result &
b. matters once tried & decided w/ finality in one
jurisdiction shall be considered as settled b/w the
parties
Thus, parties are prevented from litigating issues already
determined by a local judgment.
In Anglo-American jurisprudence, foreign judgments are not open
to reexamination on merits when placed in issue before local
courts subject to a few exceptions.
The principle seeks to accomplish the policy of giving finality to
litigation. Public policy dictates diminishing the judicial energy
invested in deciding suits, encouraging confidence in court decrees
and securing the legitimate expectations of successful plaintiff or
defendant that he will no longer be harassed into protecting his
interests.
Rule 39 Sec 40:
A foreign judgment of a tribunal of a foreign country, having
jurisdiction to pronounce judgment renders it conclusive upon the
title to the thing while a judgment against a person is presumptive
evidence of a right as between the parties & their successors in
interest
2. Merger
It considers the plaintiff s cause of action as merged in the
judgment. Thus, he may not relitigate that exact same claim.
3. Bar
This is where a successful defendant interposes the judgment in his
favor to avert a second action by plaintiff on the same claim. By
direct estoppel, the relitigation of all matters decided are
precluded
In addition, DOCTRINE OF COLLATERAL ESTOPPEL renders
conclusive all essential issues of fact actually litigated in the suit
decided on by the foreign court .
Distinction between Res Judicata & Collateral Estoppel
RES JUDICATA- seeks to end litigation by disallowing suit on the
same claim
COLLATERAL ESTOPPEL- concerned with preclusion by barring
relitigation of an issue already litigated on in a prior proceeding
D. Requisites for Recognition or Enforcement
1) The foreign judgment was rendered by a judicial or a
quasi-judicial tribunal which had jurisdiction over the
parties & the case in the proper judicial proceeding.
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2) The judgment must be valid under the laws of the court
that rendered it
3) The judgment must be final & executory to constitute res
judicata in another action
4) The state where the foreign judgment was obtained
allows recognition or enforcement of Philippine
judgment
5) The judgment must be for a fixed sum of money
6) The foreign judgment must not be contrary to the public
policy or the good morals of the country where it is to be
enforced
7) The judgment must not have been obtained by fraud,
collusion, mistake of fact or mistake
1. The foreign judgment was rendered by a judicial or a quasi-
judicial tribunal having jurisdiction over the parties & the case in the
proper case
A court validly asserts jurisdiction over actions in personam based
on consent of parties or relation of the parties or events to the
forum, thus satisfying minimum standards of fair play & substantial
justice.
In in rem proceeding, jurisdiction is based on the power of the
state over the property found within the territory
Northwest Orient Airlines vs. CA and C.F. Sharp
(1995)
FACTS: Under contract of agency, NOA authorized Sharp to
sell airline tickets. Sharp failed to remit the proceeds of the
ticket sales to NOA. The court in Tokyo failed to serve the writ
of summons against the Sharp branches in Tokyo. NOA had
these writs served in the Manila main office of Sharp. Despite
the notice, Sharp did not appear at the hearing. NOA obtained
a judgment in its favor. NOA sought enforce the judgment in
the Philippines. Sharp opposed claiming that the service of
process was void so the Tokyo Court did not acquire
jurisdiction over it.
HELD: Service of summons by Tokyo court was valid. A foreign
judgment is presumed to be valid and binding in the country
where it comes, until the contrary is shown. The regularity of
the proceedings and the giving of due notice is also presumed.
The party attacking has the burden of overcoming this
presumption. In CAB, SHARP alleged that the extraterritorial
service of summons is void. However, Sharp failed to prove the
applicable Japanese procedural law to base its claim since in
matters of procedure, lex fori applies. Also, Sec. 14 of ROC
applies, it allows service to be made to:
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
a. resident agent designated (if it has one, the
designation is exclusive)
b. if none, on the government official
designated by law ( Insurance Commissioner
foreign insurance co.; Superintendent of
Banks foreign banking corps. & SEC
other foreign corps licensed to do business
in Phils) The government official shall
transmit the summons by mail to the
principal office.
c. any of its officers/agents within the Phils.
Sharp did not designate an agent so service on govt official or
any of its officers in Japan is allowed. The Court finds that the
service made by Tokyo court sufficient to fall under service to
the proper govt official.
(Tokyo DC- SC Japan Ministry of Foreign Affairs of Japan
Japanese Embassy DFA, Phils RTC sheriff delivered
summons to principal office)
Boudard vs. Tait
(1939)
FACTS: Boudard s husband, employee of Tait, was killed by
co-employees. Boudard obtained a favorable judgment against
Tait who was declared to be in default in CFI of Hanoi. She filed
action for execution of Hanoi judgment in CFI Manila. Court
dismissed for lack of jurisdiction of Hanoi court over Tait who
was not a resident of French Indo-China.
HELD: Hanoi court has no jurisdiction over Tait. Jurisdiction in
personam, over non-residents, in money suits, must be based
upon personal service within the state that renders the
judgment. At the time of the complaint, Tait was not in Hanoi
nor were his agents or representatives. Also, the French law on
service of summons was not applied. Instead of serving a copy
to the Atty Gen of the Republic who shall visae the original, the
summons were served in Manila to J.M. Shotwell, a
representative of Churchill & Tait Inc, which is an entity entirely
different from Tait.
Ramirez vs. Gmur
(1918)
FACTS: The will of Bischoff contained a statement to the effect
that he had no living forced heirs. Leona Castro, Bischoff s
recognized natural daughter, had 2 sets of children from 2
marriages, who claim to be heirs of Bischoff.
first married to Von Kaufmann and had 3 children but Von
Kaufmann obtained divorce on France
Castro was remarried to Dr. Mory and they had 2 children
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HELD: as to the Mory children NO, the second marriage is
void. The right to inherit pertains only to legitimate, legitimated
and acknowledged natural children. The French decree of
divorce is not valid in the Philippines. French court had no
jurisdiction to entertain actions for dissolution of marriages of
performed in the Phils over persons domiciled here. The RULE
is that when a court, where neither of the spouses are
domiciled, and to which one or both, may resort merely to
obtain decree of divorce, issues such decree, the divorce is not
entitled to recognition elsewhere.
As long as the foreign court acquired jurisdiction, its decisions will
not be disturbed whether it was reached through an adversary
proceeding or by default.
Somportex vs. Philadelphia Chewing Gum Corp.. Court rejected
Philadelphia s contention that a default judgment by the English
courts should not be extended hospitality by American courts.
In the absence of fraud or collusion, a default judgment is as
conclusive as adjudication between the parties as when rendered
after answer & complete contest in open court.
The polestar is whether a reasonable method for notification is
employed & reasonable opportunity to be heard is given to the
person concerned.
Borthwick vs. Castro
(1987)
FACTS: Borthwick (US) owned real properties in Hawaii. He
issued promissory notes to Scallon but failed to pay the same.
Scallon sued him in Hawaii. B was issued summons while in
California which process was valid under Hawaiian law. For
failure to enforce the judgement, S filed action in Phils. B s
defense is that the Hawaii court has no jurisdiction over the
cause of action and over his person.
HELD: Foreign judgements are presumptive evidence of the
rights between parties and rejection may be justified, among
others, by want of jurisdiction of the issuing authority, among
others. But in CAB, such rejection was not justified. What
Borthwick seeks in this appeal is a 3rd chance to contest the
jurisdiction of the foreign court. In order to do that, he must
show that the declaration of default was incorrect. But
Borthwick did not do this. Borthwick was given an opportunity
to file his answer in the Hawaii court, he was also given a
chance in the CFI, Makati, but he failed to do the same.
2. The judgment must be valid under the laws of the court that
rendered it
In Pemberto vs. Hughes although there was error in procedure,
since the Florida court was competent & no substantial injustice
was committed, the English court did not consider the error as to
significantly alter an otherwise valid decree.
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
3. The judgment must be final & executory to constitute res judicata
in another action
If judgment is interlocutory or provisional in character w/c
contemplates that a fuller investigation leading to final decision
may later be held, it creates no obligation on the forum court to
recognize it.
Nouvion vs. Freeman
(1889)
FACTS: Nouvion filed an action for administration of the estate
of Henderson. In order to show that he was Henderson s
creditor, Nouvion alleged that he obtained a foreign judgment
establishing Henderson s indebtedness to him.
HELD: The Spanish judgment cannot be sustained because it
was not yet final and conclusive. Where a court of competent
jurisdiction has adjudicated a certain sum as due from one to
another, a legal obligation arises, on which an action of debt to
enforce judgment may be maintained. But to come within the
terms of law properly laid down, judgment must result from an
adjudication of a court of competent jurisdiction, such
judgement being final and conclusive. It is not sufficient that
the judgement puts an end to and finally settles controversy. It
must e shown that in the court by which it was pronounced it
conclusively and finally settles forever the existence of debt of
which it is sought to be made conclusive.
Querubin vs. Querubin
(1950)
FACTS: Following their divorce because of Margaret s
infidelity, rendered in New Mexico, their daughter Querubina
was kept in a neutral home. Silvestre then obtained an
interlocutory decree granting him custody. Margaret had the
decree modified since the she was remarried and had a stable
home for Querubina. When Silvestre fled to the Philippines with
Querubina, Margaret filed for habeas corpus. She asserts that
the interlocutory order should be complied with pursuant to
Article 48 Rule 39.
HELD: Her contention is erroneous. A foreign interlocutory
order in favor of Margaret did not establish a vested right with
respect to rightful custody over Queribina. The decree is not
yet final but subject to change with the circumstances.
Generally, divorce decree awarding custody of child to one
spouse is respected by other states but such decree has no
effect in another state as to facts and conditions occurring
subsequently to date of decree. Court of another state may
award custody otherwise upon proof of subsequent matters
justifying such decree to the child s interest.
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4. The state where the foreign judgment was obtained allows
recognition or enforcement of Philippine judgment
In Hilton vs. Guyot, a French judgment was not recognized by a US
court because it found out that French laws allowed review of
American judgments on the merits. This ruling is widely criticized
because:
Instead of being a mutual exchange of privileges, comity was
used as a means of retaliation.
The court in Hilton discriminated against the litigants on
account of the policies of their governments which they were
in no position to shape and alter.
It can be argued that the task of formulating policies through
reciprocity is a power misplaced in the judiciary and should be
appropriately wielded by the other branches of government.
Trautman and Von Mehren point out the difficulties with the
reciprocity requirement.
a. its normal tendency is to lower rather than raise
the standards of practice
b. the private litigants burdened may not be
closely attached to the legal order sought to be
changed
c. the administration of reciprocity clauses can be
complicated esp. where case law systems are
affected since finding the exact foreign law that
grants reciprocity is still nebulous. It is unclear
whether reciprocity is proved by general
recognition of such or requires a specific
recognition for a case identical or analogous to
the one before the court.
Cowans, et al. vs. Teconderoga Pulp and Paper Co.
(1927)
FACTS: Cowans obtained a Quebec judgment in their favor for
a sum of money. TPP asserts in defense that this judgment is
not conclusive upon, but merely a prima facie evidence before
the US courts, pursuant to Quebec law. TPP alleges that since
Quebec law does not reciprocate as to judgements of NY
courts, NY should also not recognize the Quebec judgment as
adjudications of the issues.
HELD: This claim of TPP pursuant to the Hilton vs. Guyot
doctrine should not be followed. Persuasiveness of a foreign
judgment is not dependent upon comity nor reciprocity. Even
without these principles, a judgment has its own strength.
Following the Hilton vs. Guyot ruling would deprive a party of
the private rights he has acquired by reason of a foreign
judgement because the country in whose courts the judgement
was rendered has a different rule of evidence than what the
recognizing court has and does not give the same effect as the
latter gives to a foreign judgment.
5. The judgment must be for a fixed sum of money
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Unless the foreign judgment specifies performance or delivery,
there is nothing for the forum court to enforce. In Sadler vs.
Roberis, the English court held that until taxation, the plaintiff could
not enforce his claim because the Jamaican court decided that
from the sum due him should first be subtracted the costs incurred
by the defendant which was to be taxed. Hence, the amount
decreed was not fixed.
6. The foreign judgment must not be contrary to the public policy or
the good morals of the country where it is to be enforced
Querubin vs. Querubin
(1950)
HELD: It goes against the law, public policy, and good customs
that a mother who violated her marital vows should have
custody (referring to the fact that Margaret was having an illicit
affair with another man).
7. The judgment must not have been obtained by fraud, collusion,
mistake of fact or mistake of law
Whether or not there is fraud is decided by the court where
enforcement of judgment is sought on the basis of its own internal
law. A problem may arise when the internal law is not in
agreement with the notions of equity of the foreign state.
Rule 39, Sec. 50
Effect of Foreign Judgment. The effect of a judgment of a court of a
foreign country, having jurisdiction to pronounce the judgment is
as follows:
a. in case of a judgment upon a specific thing, the
judgment is conclusive upon the title to the thing
b. in case of judgment upon a person, the
judgment is a presumptive evidence of a right as
between the parties and their successors in interest by a
subsequent title; but the judgment may be repelled by
evidence of want of jurisdiction, want of notice to the
party, collusion, fraud, or clear mistake of law or fact.
This rule does not refer to intrinsic fraud which goes to the merits
of the case. To impeach a foreign judgment, fraud must be
extrinsic, collateral act which vitiates the most solemn
proceedings of the courts of justice such as collusion by the
parties, suppression of an important document or the presentation
in evidence of a forged will or falsified affidavit. Extrinsic fraud
signifies that a party is deprived of his day in court.
Philippine Aluminum vs. FASGI
(1950)
FACTS: FASGI (US) entered into a distributorship agreement
with PAWI (Phil). PAWI shipped defective goods to FASGI.
FASGI sued PAWI for breach of contract in US court. They
entered into a settlement but PAWI still failed to pay. US court
issued a certificate of final judgment upon application by FASGI
of entry of judgment. FASGI was not able to satisfy the claim in
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US so it filed a complaint for enforcement in RTC. RTC
dismissed but CA reversed.
HELD: California court judgment may be enforced. A judgment
for a sum of money ordered in a foreign court is presumptive
evidence of a right between the parties and their successors-in-
interest, but when suit for enforcement is filed in Phil court, the
judgment may be repelled by evidence of want of jurisdiction,
want of notice, fraud, collusion or a clear mistake of law or fact.
In CAB, PAWI failed to prove that there was collusion between
its counsel, Mr. Ready, and FASGI in entering into the
settlement and in agreeing to an entry of judgment against
PAWI. PAWI should have raised the issue before the forum
court in line with the principle of comity of nations that a court
should refrain from assuming the power to pass upon the
correctness of the application of laws and evaluation of facts of
judgments issued by foreign courts.
Puyat vs. Zabarte
(2001)
FACTS: Z filed an action to enforce money judgment rendered
by the Superior Court of California against P. RTC by summary
judgment ordered Puyat to pay Z pursuant to Judgment of
Stipulation for Entry of Judgment contained in the Compromise
Agreement between them in the Calif. court. CA held that P is
estopped from assailing the judgment that had become final.
HELD: The summary judgment is allowed. Since the present
action lodged in the RTC was for the enforcement of a foreign
judgment, there was no need to ascertain the rights and
obligations of the parties based on foreign laws or contracts;
the parties needed only to perform their obligations under the
Compromise Agreement they had entered into. None of the
reasons for invoking forum non conveniens barred the RTC
from exercising its jurisdiction (forum shopping, overcrowded
dockets, harassment of defendants, etc.) In CAB, there was no
more need for material witnesses, no forum shopping or
harassment of Puyat, no inadequacy in the local machinery to
enforce the foreign judgment and no question raised as to the
application of any foreign law.
E. Grounds for Non-Recognition
Uniform Money-Judgment Recognition Act of the US, Section 4:
(a) A foreign judgment is not conclusive if-
1. The judgment was rendered under a system which does not
provide impartial tribunals or procedures compatible with the
requirements of due process of law
2. The foreign court did not have personal jurisdiction over
the defendant
3. The foreign court did not have jurisdiction over the subject
matter
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
(b) A foreign judgment need not be recognized if-
1) The defendant in the proceedings in 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 public policy of the
state.
4) The foreign judgment conflicts with another final &
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
the trial of the action
Grounds 1-3 under letter b are mandatory & the last 3 are
discretionary.
The ground on non-recognition for lack of jurisdiction in
personam is most debatable. Most courts consider jurisdiction of
foreign court as appropriate when there are significant contacts
between forum states & individuals.
The service of summons as the traditional basis for exercise of
jurisdiction has been eroded.
The ground that foreign court was seriously inconvenient
employs doctrine of forum non conveniens to restrain use of
presence as cornerstone of jurisdiction.
Art 23 Hague Convention on Jurisdiction, Applicable Law,
Recognition, Enforcement & Cooperation in re of Parental
Responsibility & Measures for Protection of Children:
Considering the best interests of child, recognition of measures
directed for protection of the child or his property may be refused
if such were taken without giving the child opportunity to be heard
or if contrary to public policy.
Violation of ordre public & nonobservance of due process are
included as grounds for non-recognition in many Hague
Conventions.
F. Modern Developments in Enforcement of Foreign
Judgment
1. The Hague Conference on Private IL Convention on Recognition
& Enforcement of Foreign Judgments in Civil & Commercial Matters
established conditions & requisites for contracting states to
recognize & enforce each other s judgment.
Contributions:
a) provisions on applicability of Convention irrespective of
nationality
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b) non-refusal for sole reason that court of state of origin
has applied a law other than that which would have been
applicable according to the rules of Private IL of the state
addressed
c) it addresses the question of whether a default judgment
is subject to enforcement
d) establishes recognition & enforcement procedures
The seventh session looked into possibility of a general convention
on recognition & enforcement of judgments whose chief benefit
will be the relatively uniform procedure among contracting states.
2. The EEC Convention of 1968
Six countries comprising the European Economic Community are
signatories to Convention on Jurisdiction of Courts & Enforcement
of Decisions
The Convention extends to Common Market area the reach of
jurisdictionally improper for a now available against non-residents
under procedural systems of 4 member states.
3. The Uniform Money-Judgments Recognition Act
This seeks to inspire more confidence in stability of American law &
bring together into one statute all common law rules of
recognition from jurisprudence.
What does the act cover?
It is applicable to any foreign country judgment that is final &
conclusive & enforceable when rendered even though an appeal is
pending or it is subject to appeal.
G. Procedure for Enforcement
The Philippines has adopted the common law practice of not
instantaneously executing foreign judgment.
MODES OF ENFORCEMENT
A. First Mode: Need for New Judicial Action
Procedure in Philippines
(Compared to simple procedure of exequaure, Philippine mode is
protracted & expensive).
Our laws require that a petition should be filed in proper court
attaching authenticated copy of foreign judgment to be enforced.
Philippine consul must certify that it had been rendered by a court
of competent jurisdiction. The petition must comply w/ all the
requisites of an enforceable judgment.
Requirement to file an action anew
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

Attempt to reconcile the principle of territorial jurisdiction of courts
w/c demands that the enforcement of a judgment outside the
territory of rendering court must be placed upon some other basis
than the authority of the rendering court w/c ceased at its
jurisdictional limits- & the principle of res judicata.
Ingenohl vs. Olsen and Co.
FACTS: Ingenohl obtained a HK judgment declaring it to be the
owner of the trademark against Olsen. Ingenohl then
recovered the sums awarded by the HK judgment in an action
for collection in Manila. Olsen appealed. The appeal was
granted because the trial court erred in not taking into account
the fact that Olsen had bought the Ingenohl trademark in a
sale of the same conducted by the Alien Property Custodian.
Hence this petition by Ingenohl.
1) US Constitution clause of full faith and credit. This
substitutes a federal policy in place of individual state
policies, thus demanding that sister-state judgments be
given more than minimal preclusive effects.
2) Judgments of sister-state may be brought to US
Supreme Court for review
3) Judgments rendered by sister states are based on legal
procedures & standards similar to those whose
recognition is sought.
On the other hand, a foreign country judgment may have been
decided under rules that disregard private rights & duties or
fundamental policies that the recognizing court deem important.
In practice, courts are inclined to give recognition because of
1) overriding public interest
2) dictates of public policy that there be an end to litigation.

HELD: There is no error on the part of the HK court. In

authoritatively passing upon the issue of not giving effect to
the sale by the Alien Property Custodian, it cannot be said that
the HK tribunal committed a wrong decision. The judgment is
unquestionably valid and is binding between the parties. When
the judge who is the final exponent of that law, authoritatively
declares that the assignment by the Custodian of the assets of
the Manila firm cannot and will not be allowed to affect the
rights of the party concerned in Hong Kong, the court ruled
that it is not possible for a foreign court to pronounce his
decision wrong.

Procedure in other civil law countries

B. Second Mode: Exequatur - -Summary proceeding also known as

exequatur procedure.
Authenticated copy of foreign judgment need only be
accompanied by a certification from Clerk of Court. Once validated
the foreign judgment has same effect as local judgment. Example:
French formule executoire, used in France, Italy, Austria

C. Third Mode: Judgment Registration

It may or may not involve judicial supervision. Authenticated copy

of foreign judgment filed w/ registrar s office w/ other proofs
required by domestic laws & foreign judgment is converted into a
local one that is immediately executory.

It is used in Australia, England.

Distinctions between a foreign country & a sister-state judgment in

United States

These differences are premised on possible absence of principles

underlying res judicata practices within foreign country.

Von Mehren & Trautman: There are significant differences

between the 2 to justify refusal of a foreign country judgment even
though it could be recognized if rendered by a sister state:

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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

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