COURSE OUTLINE IN CONFLICTS OF LAW

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

CONFLICTS OF LAW

By: Atty. Enrique V. dela Cruz, Jr.1 Public International Private

Law International Law

Principally governs Principally governs

PART ONE: INTRODUCTION states in their individuals in their
relationships amongst private transactions
themselves which involves a
I. Scope and Conflict of Laws: Nature, Definition and foreign element
Importance As to sources of law:
Codified in Art. 38 of Generally derived from
the Statute of the internal law of
A. Diversity of Laws, Customs and Practices International Court of each state and not
Justice from any
PRIL: that part of municipal law which covers cases with a “international” law
foreign element. extraneous to
municipal law
Hilton vs. Guyot As to persons involved:
(1895) Governs only states Governs individuals or
FACTS: Defendants were sued in France, and the French and internationally- corporations
court rendered judgment against them. Plaintiffs sued recognized
defendants on the French judgment in the US. The US organizations
court held the French judgment conclusive. As to transactions:
Involves state-to-state Relates to private
HELD: No law has any effect, of its own force, beyond the or government-to- transactions between
limits of the sovereignty form which its authority is derived. government matters individuals
The extent to which the law of one nation, as put in force As to remedies:
within its territory xxx shall be allowed to operate within
In case of violation, a All the remedies are
the dominion of another nation, depends upon xxx “the
state may resort to provided by municipal
comity of nations.”
1) diplomatic protest laws of the state, such
2) peaceful means of as resort to courts or
Comity of nations is the recognition which one nation
settlement (diplomatic administrative tribunals
allows within its territory to the legislative, executive or
negotiations,
judicial acts of another nation, having due regard both to
arbitration or
international duty and convenience, and to the rights
conciliation)
of its own citizens or of other persons who are under the
3) adjudication by filing
protection of its laws.
a case before
international tribunals
The reasonable, if not necessary conclusion appears to us
4) use force short of
to be that judgments rendered in France, or in any other
war, or eventually go
foreign country, by the laws of which our own judgments
to war
are reviewable upon the merits, are not entitled to full
credit and conclusive effect when sued upon in this
country, but are prima facie evidence only of the justice of
C. Object, Function and Scope
the plaintiff’s claim.
Object and Function of Conflict of Laws: to provide rational
B. Definition
and valid rules or guidelines in deciding cases where the
parties, events or transactions are linked to more than one
JD.
Second Edition of Jurisprudence: private international law
is that part of the law of each state or nation which
Conflict of law rules aim to promote stability and uniformity
determines whether, in dealing with a legal situation, the
of solutions provided by the laws and courts of each state
law of some other state or nation will be recognized, given
called upon to decide conflicts cases.
effect or applied.
Scope: covers the entire range of laws as it cuts across the
subjects of JD of local courts or tribunals, the law on
Distinguished from Public International Law and other
evidence or proof of foreign law, the personal law of
disciplines:
individuals and juridical entities, naturalization law, laws on
domicile and residence, family relations, contracts, torts,
1
Atty. Dela Cruz is an MCLE lecturer and a Bar Reviewer at the crimes, corporation law and property law.
Jurist Bar Review Center and the Cosmopolitan Review Center.
He teaches law at UST, FEU and the Bulacan State University. He
obtained his Master of Laws (with Distinction) from the London
Metropolitan University, and a Postgraduate Diploma in 3 Issues in Conflict of Laws:
International Trade Law from the University College London
(UCL), U.K., both as a Chevening scholar of the British 1) Issue of adjudicatory JD: determines the circumstances
government. He completed a Postgraduate Fellowship on that allow for a legal order to impose upon its judiciary the
Leadership and International Relations from the John F. Kennedy task of deciding multi-state and multinational disputes
School of Government, Harvard University, USA. He also holds a
Masters in Public Management degree from the Ateneo School
of Government. He obtained his Bachelor of Laws degree (with 2) Issue of choice-of-law: refers to the probable sources
honors) and an AB Legal Management degree (cum laude) from from which the applicable law of the controversy may be
the University of Santo Tomas as a Rector’s Scholar. He is on his derived
rd
3 term as an elected Councilor of Baliuag, Bulacan and the
current Vice-President (Luzon) of the Philippine Councilors 3) Recognition and enforcement of foreign judgments:
League. He is also a Partner at the Ponce Enrile Reyes &
Manalastas (PECABAR) Law Office in Makati City. study of situations which justify recognition by the forum

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

court of a judgment rendered by a foreign court or the - became the pattern for Civil Codes of Spain,
enforcement of such within the forum Belgium and Romania
- nationality law principle (contained in Art. 15
of our CC) was provided in Art. 3 of the
II. A Brief History and Development of Conflict of French Code
Laws
 19th Century

A. Roman Law Justice Joseph Story – relied on the European

continental theorists’ concept of territorial sovereignty
 Ius gentium and founded conflict of laws on the principle of comity
In PIL, it means the law of nations of nations.
It is used in the early Roman empire to mean the
body of rules developed by the praetor peregrinus to Frederich Carl Von Savigny
resolve disputes between foreigners or between - founder of modern private IL
foreigners and Roman citizens -application of foreign law was not
It includes Greek legal doctrines and concept of due to comity but the resultant
bona fides as ius civile only applies t Roman citizens benefits for everyone concerned
- advocated situs theory (seat of
 Italian City States legal relationship): every element
The rise of this city states prompted intensive of transaction be governed by the
study of conflict of laws law of the place with which said
- Bartolus: Father of Conflict of Laws; formulated element has the most substantive
Theory of Statutes connection
Because Northern Italy was divided into several
city states each having their own laws on private Pascuale Mancini
matters, the “Statute” was applied to problems of - advanced nationality theory in matters concerning
choice of law. status, capacity and private interests of the
individual
Statute is classified into:
a. real – applied to immovable property within B. Modern Developments
the state
b. personal – followed the person even outside  Neo-Statutists
the domicile and governed questions on - followed Italian theory: when 2 or more
personal status, capacity and movables independent laws are applicable to a Conflict
c. mixed – contracts, if entered into by the problem, the method so devised determines what
different nationals law shall prevail
 Internationalists
 16th century, France - there should be a single body of rules that can
solve problems involving a foreign element
Charles Dumoulin – advocated a method to determine  Territorialists
what law would govern contracts between different - law of the State applies to persons and things
nationals within the State, therefore, no foreign law is
applied.
Bertrand D’Argentre – formulated the principle of - Branch: only rights vested or acquired under
universal succession followed in the Spanish Civil Code foreign law are recognized in the forum but not
and adopted in the Phil. Civil Code foreign law itself
 1969
 Netherlands - 2nd Restatement of Conflict of Laws, adopted by
American Law Institute under Prof. William Reese,
Ulrich Huber – first used the term, conflict of laws proposed that in the absence of statutory law, law
to be applied in Conflict case, is the law of the
Dutch jurists asserted that State has no obligation to most significant relationship.
apply a foreign law unless imposed by treaty, by
comitas gentium or on consideration of courtesy and Conflict of Laws in the Philippines
expediency.
Spanish Civil Code enforced in the Philippines until 1950
Dutch jurists led by Huber developed territorial contained the principles adopted from the French Civil
principle where the laws of every state may operate Code (Code of Napoleon) particularly the nationality law
only within its territorial limit but such sovereign state principle. Art 16, par. 1, which applies lex situs rule was
may recognize that a law, which operated in the adopted from Art. 10 of Spanish CC while par. 2 represents
country of its origin, shall retain force everywhere the system of universal succession. Art. 17, par. 1 follows
provided that it will not prejudice its subjects. lex loci contractus. But there was no significant
jurisprudence on the subject.
Comitas Gentium was readily accepted because of
increasing international transactions. Conflict of Laws was included in law curriculum by UP
College of Law in 1911 (no less!). Until 1950s, law teachers
Ius Commune, applied by Italian and French jurists, predominantly used foreign law books and decisions by
was a supranational law based on Roman law and American courts.
which became the continental European common law.
In the Bar, it used to be a separate subject along with PIL
Nations codified their national laws which included but when it was revised, PIL was included in Pol Law while
conflict of laws provisions. PRIL was merged with Civil Law. But, this does not mean
that PRIL is a part of civil law as this mindview tends to
Ex. French Civil Code of 1804 limit the perspective and scope of analysis required for
conflicts problems.

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

Now, more problems in Conflict have arisen esp. with 1. Convention on Intl Civil Aviation,
Filipinos engaging in foreign business transactions, and in 2. Warsaw Convention,
international air transport and foreign tort claims and labor 3. Convention on Offenses Committed on Board Aircraft
contracts for OFWs. 4. Convention on the Suppression of Unlawful
5. Acts against Civil Aviation
6. UN Convention COGSA
III. Sources of Conflict of Laws 7. Convention on Consent to Marriage, etc
8. Convention on Traffic of Persons
A. Codes and Statutes 9. Convention on Elimination of Discrimination against
Women
Conflict of Laws (CL) originated in continental Europe was 10. Convention on Political Rights of Women
most laws were codified. 11. IC on the Suppression of Traffic of Women and
Children
Primary sources of law are found in the civil codes of 12. Convention on World Intellectual Property Organization
different countries: 13. Berne Convention on Protection of Literary and Artistic
Works
1. Roman code codified principles of ius gentium. 14. Paris Convention on Protection of Industrial Property.
2. Code of Napoleon contained specific rule on personal
law of individual, this was followed by several codes Although many Hague Conventions on Private International
(Netherlands, Romania, Italy, Portugal, Spain) Law were concluded since 1951, which dealt with issues
3. The German civil Code contained many provisions on:
on Conflict of Laws.  Personal status
4. Switzerland also enacted Laws on cases involving  Patrimonial family status
foreign elements.  Patrimonial status such as agency and
5. Greece enacted a Civil Code with CL rules which trusts
became a model in other countries The Philippines is a signatory to the Convention on
6. The Code of Bustamante (in South America) was Recognition of Foreign Judgment on Civil and Commercial
patterned after the Code of Napoleon Matters and has ratified the 1993 Convention in Respect of
Inter-Country Adoption only.

Conflict Laws of the Philippines

C. Treatises, Commentaries and Studies of
Spanish Civil Code was enforced in the Philippines on Learned Societies
December 7, 1889 until the Philippine Civil Code’s
In interpreting statutes and codes involving CL, courts
effectivity on August 30, 1950 which contained the
provisions on conflict of laws of the earlier code. resort to works of distinguished jurists and studies of
learned societies.
Spain’s Code of Commerce, having some provisions on
Distinguished writers in continental Europe include Huber
foreign transactions, were also enforced in the Philippines
Manreas, Savigny (whose work was translated into English
on Dec 1, 1888.
by Guthrie), and Weiss.
One basic source of law is the 1987 Constitution which
Distinguished American and English writers, on the other
contains principles on nationality and comity.
hand, include Beale, Cavers, Cheatham, Currie,
Ehrenzweig, Goodrich, Gussbaum, Story, Wharton,
Special statutes were also enacted to govern cases with
Cheshire, Graveson.
foreign elements, to wit:
The American Law Institute published 2 studies on CL:
1. Corporation Code
Restatement of the Conflict of Laws and a Second
2. General Banking Act
Restatement with William Reese as Reporter.
3. Foreign Currency System Act
4. Phil Foreign Law Guarantee Corp
5. Retail Business Regulation Act
D. Judicial decisions
6. Anti-Dummy Law
7. Nationalization of Rice and Corn Industry Act
Decisions of courts are the most important source of CL
8. Insurance Code
rules and form the main bulk of source of conflict rules.
9. IP Code
10. Patent Law
According to Graveson: “This branch of law is more
11. Trademark Law
completely judge-made than almost any other. In its
12. COGSA
application, judges have to deal with “All Manner of People”
13. Salvage Law
more than any other branch. The claim of justice for right
14. Public Service Act
15. Civil Aeronautics Act as a basis for conflict of laws is supported not only by the
terms of the judicial oath but by judicial dicta in
16. Phil Overseas Shipping Act
judgments”.
17. Investment Incentives Act
18. Export Incentives Act
19. RA 7722
PART TWO: JURISDICTION AND CHOICE OF LAW

B. Treaties and International Conventions

IV. Jurisdiction
The Philippines has entered into a number of treaties and
Jurisdiction may mean either a) judicial or b) legislative
international conventions which deal with private
jurisdiction. (This part talks of judicial jurisdiction)
international law since it became a Republic.

Some of these treaties/conventions are:

Judicial JD – the power or authority of a court to try a case,
render judgment and execute it in accordance with law.

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

is the representative and attorney-in-fact of her husband in

Legislative JD – the ability of the state to promulgate laws the civil case.
and enforce them on all persons and property within its
territory.
Jurisdiction:
1) over the person
4 Major Questions in Analyzing a Conflict of Laws Problem: a) voluntary appearance
b) submission to authority
1) Has the court JD over the person of the defendant
or over his property? rule: in substituted service, the premise is that the
defendant is within the territorial JD of the court
2) Has the court JD over the subject matter
(“competency”)? exception: Gemperle case – because Helen is legally
authorized to file a case in behalf of Paul, she is also
3) Has the suit been brought in the proper venue in authorized to receive summons
cases where a foreign element is involved?
2) over the property
4) Is there a statute or doctrine under which a court a) in rem – the situs could “bind the world”
otherwise qualified to try the case may or may not b) quasi in rem
refuse to entertain it?
basis of JD: presence of the property within the territory

A. Basis of Exercise of Judicial Jurisdiction 3) over the subject-matter - WON the court has
competence to hear the case and render
Bases of Judicial Jurisdiction (3 groups): judgment; the court’s JD must be properly
invoked (provided for by statute)
1) JD over the person (based on forum-defendant _______________
contacts)
2. Jurisdiction over the Property
2) JD over the res (based on forum-property
contacts) JD over the property results from:

3) JD over the subject matter a) seizure of the property under a legal process

b) the institution of legal proceedings wherein

1. Jurisdiction over the Person the court’s power over the property is
recognized and made effective
This is acquired by the voluntary appearance of a party and
his submission to authority. This kind of JD is referred to as in rem JD; the situs could
“bind the world” and not just the interest of specific
Over the person of the plaintiff: acquired the moment he persons.
invokes the aid of the court by filing a suit.
Basis of exercise of JD: the presence of the property within
Over the person of the defendant: acquired when he enters the territorial JD of the forum.
his appearance or is served with the legal process within
the state. Quasi in rem JD: affects only the interests of particular
persons in that thing (ex. Quieting of title). (actions against
When he or his lawyer appears in court, he gives consent a person in respect of the res)
to the forum’s exercise of JD over him, except where the
appearance is for the purpose of protesting the JD over In these 2 proceedings, all that due process requires is that
him. the defendant be given adequate notice and opportunity to
be heard (which are both met by service of summons by
A non-resident plaintiff who files a suit is deemed to publication).
consent to the court’s exercise of JD over subsequent
proceedings arising out of his original cause of action
(counterclaims). Pennoyer vs. Neff
(1878)
JD over the defendant may be had by personal or FACTS: Neff, a California resident, owned land in Oregon
substituted service of summons. which was sold under a Sheriff’s deed to satisfy a money
judgment against him. The service of summons was made
by publication. He is suing for recovery of said land,
Gemperle vs. Schenker alleging that the sale was invalid for lack of JD of the
(1967) Oregon court over him.
FACTS: Paul Schenker (Swiss citizen and resident) filed a
complaint against Gemperle through his wife Helen HELD: Substituted services by publication, or in any other
Schenker, for enforcement of subscription to shares of authorized form, may be sufficient to inform parties of the
stock. Gemperle filed a suit against Paul for damages, object of the proceedings taken where property is once
saying that Paul caused allegations to be published brought under the control of the court by seizure or some
attacking his reputation and bringing him into public hatred equivalent act to any proceedings authorized by law upon
and discredit as a businessman. Schenker’s defense: court such seizure for its condemnation and sale.
has no JD over the person of Paul.
But where the entire object of the action is to determine
HELD: Jurisdiction was acquired by the lower court over the personal rights and obligations of defendants, that is,
the person of Paul through service of summons addressed where the suit is merely in personam, constructive service
to him upon Helen, it appearing from the answer that she in this form upon a non-resident is ineffectual for any
purpose.

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

HELD: The Delaware court cannot exercise JD just

because the stocks are statutorily present in Delaware. The
The important thing to prove is what kind of action is property (stocks) is not the subject matter of the litigation
involved (to determine sufficiency of form of service to be nor is the underlying cause of action related to the
used) property. Also, the facts in CAB does not demonstrate that
defendants have purposefully availed themselves of the
privilege of conducting activities within the forum state in a
International Shoe Co. vs. Washington way that would justify bringing them before a Delaware
(1945) court.
FACTS: The state of Washington sued International Shoe
Co. (a Delaware corporation with principal place of In Shaffer, the minimum contacts and fundamental fairness
business in Missouri) to collect the tax laid upon the test should be satisfied regardless of whether the
exercise of the privilege of employing salesmen within the proceedings are in rem, quasi in rem or in personam.
state. International Shoe’s defense is that its activities
within the state, consisting merely of exhibiting samples
and soliciting orders and nothing more, were not sufficient Traditional basis for the exercise of judicial JD is the state’s
to manifest its “presence” there; hence the state courts physical power over persons and property within its
had no JD over it. territory; this is why in in rem proceedings, it can exercise
JD over property situated in the state regardless of
HELD: The SC of Washington has JD over International whether it could otherwise exercise JD over the persons
Shoe. Due process requires only that in order to subject a whose interest would be affected by the decision.
defendant to a judgment in personam, if he be not present
within the territory of the forum, he should have certain In the US, there is a shifting trend from theory of territorial
minimum contacts with it, such that the maintenance of power to considerations of minimum contacts and
the suit does not offend “traditional notions of fair play and fundamental fairness. This approach demands that there
substantial justice”. (Minimum contacts so that the be forum-transaction contacts that will make it
suit will not offend traditional notions of fair play fundamentally fair to require the defendant to defend a suit
and substantial justice.) in the forum regardless of his non-resident status.

The demands of due process regarding the corporation’s Distinction, Shaffer and International Shoe: while
“presence” may be met by such contacts of the corporation International Shoe requires minimum contacts between the
with the state of the forum as to make it reasonable xxx to defendant and the forum, Shaffer demands that minimum
require the corporation with defend the particular suit contacts exist among the forum, defendant and the cause
which is brought there. of action.

Its “presence” can be manifested only by such activities The change in the conceptual foundation of JD from
carried on in its behalf by those who are authorized to act territorial power to fairness does not significantly affect
for it. 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
Mullane vs. Central Hanover Bank & Trust Co. state’s paramount interest in adjudicating a claim over it
(1950) and provides the necessary minimum contacts.
FACTS: In an action for judicial settlement of accounts of
Central Hanover Bank as trustee of a common trust fund, Long-Arm Statutes
some of the beneficiaries who are non-residents of NY
were notified only by publication in a local newspaper. Long-arm statutes specify the kinds of contacts upon which
JD will be asserted. Some long-arm statutes broadly
HELD: When notice is a person’s due, process which is a authorize courts to assert JD in any case not inconsistent
mere gesture is NOT due process. The means employed with the Constitution, leaving it to the court to define its
must be such as one desirous of actually informing the limitations on a case-by-case basis.
absentee might reasonably adopt to accomplish it. Within
the limits of practicability, notice must be such as is
reasonably calculated to reach interested parties. 3. Jurisdiction over the Subject-matter

In Mullane, the manner notice was given should reasonably Subject-matter JD is allocated among the courts by
result in informing the affected partner; when conditions constitutional and statutory laws, according to the nature
do not allow such notice, the form chosen should not of the controversy, thereby determining the competence of
substantially be “less likely to bring home notice than other the court to try and decide a case.
of the feasible and customary substitutes.”
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

Shaffer vs. Heitner parties.
(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. Idonah Perkins vs. Roxas
Pursuant to the case, Heitner filed a motion for (1941)
sequestration of the defendants’ stocks in Greyhound. The FACTS: Eugene Perkins filed a complaint against Benguet
stocks, while not physically present in Delaware, are Consolidated for the recovery of declared dividends, but
considered to be there in view of it being the place of Benguet withheld payment upon the opposing claim of
incorporation. Idonah Perkins, wife of Eugene. Idonah sets up a NY
judgment declaring her to be the sole owner of the

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

Benguet shares and allege that such 3) local machinery is inadequate to effectuate a right
judgment is res judicata. (no way for court to secure evidence and
attendance of witnesses)
HELD: The CFI has jurisdiction over the case, despite the
presence of the NY judgment. Whether or not the trial 4) avoid global forum shopping
judge in the course of the proceedings will give validity and
efficacy to the NY judgment set up by Idonah in her cross- English and Scottish courts have applied FNC when there
complaint is a question that goes to the merits of the was “another available and more appropriate forum, in
controversy and relates to the rights of the parties as which the ends of justice would be better served in view of
between each other, and not to the jurisdiction of the the interests of all parties, by eliminating the vexatious or
court. The fear that the trial judge may render judgment oppressive character of the pending proceedings and by
annulling the final judgment of the NY court is not a removing any unfairness to either party which would result
ground to deny the lower court of JD. The test of JD is from trial in the forum seized of the case.”
whether or not the tribunal has power to enter upon the
inquiry, not whether its conclusion in the course of it is
right or wrong. Heine vs. New York Insurance Co.
(1940)
FACTS: An action for recovery on life insurance policies
made and issued in Germany was filed by German citizens
“Presence”/Jurisdiction: in Oregon against a NY corporation.
1) Traditional Views
a) Pennoyer – actual physical presence HELD: The Oregon court may refuse to exercise JD. The
2) Modern Views courts of Germany and New York are open and functioning
and competent to take JD of the controversies, and service
a) Int’l. Shoe – contact between the forum can be made upon the defendants in either of such JDs. To
and the corporation (even in the absence require the defendants to defend the actions in Oregon
of an actual office, etc.) would impose upon them great and unnecessary
inconvenience and expense. The courts of this country are
b) Mullane – disregards strict distinction established and maintained primarily to determine
between in rem and in personam controversies between its citizens and those having
business there, and manifestly the court may protect itself
c) Shaffer – minimum contacts between the against a flood of litigation over contracts made and to be
properties and forum; fundamental performed in a foreign country, where the parties and
fairness test witnesses are nonresidents of the forum, and no reason
exists why the liability, if any, cannot be enforced in the
Long-arm statutes: already identify what are the bases of courts of the country where the cause of action arose, or in
JD. the state where the defendant was organized and has its
principal offices.
 Jurisdiction and choice of law do not mean
the same thing.
_______________
In re: Union Carbide
(1986)
B. Ways of Dealing with a Conflicts Problem FACTS: An industrial disaster in a chemical plant of Union
Carbide in Bhopal, India caused deaths and injuries to a
The court may deal with a conflicts problem, by: number of residents. India enacted the Bhopal Gas Leak
Disaster Act, which authorized the government (Union of
1) dismissing the case for lack of jurisdiction or on India) to represent the victims. The UOI filed a complaint
the ground of forum non conveniens in NY in behalf of the victims. Union carbide moved to
dismiss on the ground of forum non conveniens.
2) assuming jurisdiction and applying either forum or
foreign law 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
1. Dismiss the case court show that the proof bearing on the issues to be tried
is almost entirely located in India (principal witnesses and
Doctrine of Forum non Conveniens documents, detailed designs, implementation of plans,
This doctrine requires the court to dismiss the case on the safety precautions, etc.).
ground that the controversy may be more suitably tried
elsewhere. This phrase literally means “the forum is
inconvenient.” Wing On Company vs. Syyap
(1967)
FACTS: Syyap failed pay Wing On, a NY-based partnership,
Reasons for applying forum non conveniens: its obligation for a contract of purchase of clothing
material. Wing On filed an action in the Philippines against
1) to prevent abuse of the court’s processes (prevent Syyap, but Syyap contends that the trial court should have
harassment of defendant, dissuade a non-resident declined JD on the ground of forum non conveniens.
plaintiff from choosing the forum because of
larger jury verdicts, etc.) HELD: Forum non conveniens is inapplicable. Unless the
balance is strongly in favor of the defendant, the plaintiff’s
2) burdensome on the court or taxpayers (severe choice of forum should be rarely disturbed, and
backlog of cases) 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

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

courts decline to assume JD on the basis of said principle, Civil Code (revocation of wills outside RP); and Art. 819
considering that defendant is a resident of the Philippines. (prohibition on joint wills by Filipinos).

There is no existing catalogue of circumstances that will  Example: prohibitory or mandatory laws of
justify sustaining a plea of forum non conveniens but, in the forum
general, both public and private interests should be
weighed. 2) The proper foreign law was not properly
pleaded and proved
When the forum is the only state where JD can be obtained
over the defendant and, in addition, some relation with the Our courts may not take judicial cognizance of any foreign
parties exists or when the forum provides procedural law; hence, failure to plead and prove foreign law leads to
remedies not available in another state, the forum court the presumption that it is the same as forum law.
may not resist imposition upon its JD. written
unwritten  Under the Rules of Court, the foreign law may
be proved by:
Bank of America vs. CA a) official publication
(2003) b) certification form the officer with official
FACTS: The spouses Litonjua are engaged in the shipping custody, under seal, and the Phil. Embassy
business; they executed a contract where Bank of America must certify that such officer has official
was made the trustee of their businesses. But the custody, etc.: that it is the law in force at the
businesses suffered losses in the hands of the bank, so the time etc., etc.
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 Fleumer vs. Hix
conveniens. (1930)
FACTS: Fleumer, the special administrator of the estate of
HELD: While it is within the discretion of the trial court to Hix, appealed the denial of the probate of Hix’s will,
abstain from assuming JD on the ground of forum non alleging that since the will was executed in West Virginia by
conveniens, it should do so only after vital facts are a resident therein, West Virginia law should govern.
established, to determine whether special circumstances
require the court’s desistance; and the propriety of HELD: The courts of the Philippines are not authorized to
dismissing a case based on this principle of forum non take judicial notice of the laws of the various States of the
conveniens requires a factual determination, hence it is American Union. Such laws must be proved as facts. Here
more properly considered a matter of defense. the requirements of law were not met. There was no
showing that the book from which an extract was taken
The SC also held in Philsec. Investment vs. CA that the was printed or published under the authority of the state of
doctrine of FNC should not be used as a ground for a West Va. as provided in the Code of Civil Procedure; nor
motion to dismiss because Sec. 1 Rule 16 of ROC does not was the extract from the law attested by the certificate of
include said doctrine as a ground. the officer having charge of the original.

Forum non conveniens: Philippine Trust Co. vs. Bohanan

1) prevent abuse of court processes (1960)
2) burdensome on the court/taxpayers FACTS: The will of Bohanan was admitted to probate; in
3) prevent global forum shopping the probate he was declared to be a citizen of Nevada. In
the hearing for the proposed project of partition, Nevada
 FNC is not something that automatically applies; law was not introduced. Bohanan’s widow questioned the
its application rests in the sound discretion of validity of the will under Philippine law; however, if Nevada
the court law was to be applied, the will would be valid.

 in Wing On vs. Syyap. Prof. Pangalangan does HELD: The law of Nevada, being a foreign law, can only be
not agree with the holding that “unless the proved in our courts in the form and manner provided for
balance is strongly in favor of the defendant, by our Rules. However, it has been found that during the
the plaintiff’s choice of forum should rarely be hearing for the motion of the widow Bohanan for
disturbed”, because in the first place, it was the withdrawal of her share, the foreign law was introduced in
plaintiff who chose that forum. 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
2. Assume Jurisdiction having been offered at the hearing of the project of
partition.
When the court assumes JD, it may apply forum law or
foreign law, although forum law should be applied As the validity of the testamentary dispositions are to be
whenever there is good reason to do so because the forum governed by the national law of the testator, the order of
law is the basic law. the court approving the project of partition in accordance
with Nevada law must be affirmed.

Factors which justify the application of internal law: 3) The case falls under any of the exceptions to
the application of foreign law
1) A specific law of the forum decrees that
internal law should apply a) The foreign law is contrary to an important
public policy of the forum
Examples of this are Art. 16 of Civil Code (lex nationale b) The foreign law is penal in nature
governs testate and intestate succession of the person c) The foreign law is procedural in nature
whose succession is under consideration); Art. 829 of the d) The foreign law purely fiscal or administrative
in nature

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

e) The application of the foreign law will work (1892)

undeniable injustice to the citizens of the FACTS: Carroll is an employee of Alabama RR. Both are
forum residents of Alabama. C was injured in the course of work
f) The case involves real or personal property bec. of negligence of co-EE in Mississippi. Mississippi bars
situated in the forum recovery. Alabama makes employer liable. Suit is filed in
g) The application of the foreign law might Alabama.
endanger the vital interest of the state
h) The foreign law is contrary to good morals
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
V. Choice of Law
the injuries were received.
Although it is claimed that the negligent conduct was done
A. The Correlation between Jurisdiction and
in Alabama, the injury sustained creates the cause of
Choice of Law
action and not the negligence. (law of the place of injury)
1) The factors that justify exercise of judicial
jurisdiction maybe the same factors used to
Criticisms to the Approach: failure to resolve conflicts cases
with considerations of policy and fairness.
determine choice of law

2) if the forum applies its internal law because it

has a real interest, the outcome of the case
b. Cook’s Local Law Theory
will be foreordained by the forum
- treat conflicts cases as a purely domestic case
- plaintiff will choose forum who has real interest in
that does not involve a foreign element
applying its internal law
- power of a state to regulate within its territory has
no limitation except as imposed by its own
3) generally, forum will apply its internal law so
positive law
plaintiff will bring suit where internal law is
- criticism: appeals to narrow-mined who favors an
favorable to him
exaggerated local policy bec a sovereign can do as
they please, depreciating the practical and
BUT these are 2 diff. concepts. A court may exercise
equitable considerations that should control the
jurisdiction but apply foreign law or not exercise jurisdiction
case.
but the state’s internal law will be applied.

B. Approaches to Choice of Law

c. Caver’s Principles of Preference

- choice-of-law decisions should be made with

Ideally, the object of all choice of law theories must be
reference to principles of preference which are
justice and predictability.
conceived to provide a fair accommodation of
conflicting state policies and afford fair treatment
1. Traditional Approaches
to the parties.
- theories that emphasize simplicity, convenience
- Caver’s principles have a territorialist bias; it looks
and uniformity
to the place where the significant events occurred
or where the legal relationship is centered.
a. vested rights theory
- Court should:
st 1) scrutinize the event/ transaction giving rise to
- advanced by Prof. Beale (1 Restatement)
the issue
- an act done in a foreign jurisdiction gives rise to a
2) compare carefully the proffered rule of law &
right if the laws of that state provides so. The
the result of its application with the rule of
right vests and he can bring suit in any forum he
the forum & its effect
chooses.
3) appraise these results from the standpoint of
- The forum refers law of the place of the “last act”
justice between the litigants or of
necessary to complete the cause of action. (place
considerations of social policy
of injury)
- If place of the last act creates no legal right,
2. Modern Approaches
although forum court creates such right if act is
done within its territory, it will not enforce the
right.
a. Place of the Most Significant
Relationship

-identifies a plurality of factors:

Gray vs. Gray
i. needs of the interstate and intl system
(1934)
ii. relevant policies of the concerned states
FACTS: Wife (W) sued husband (H) for damages in New
iii. relevant policies of other interested
Hampshire where they are residents. Accident happened in
states
Maine. Maine bars suit between spouses.
iv. protection of justified expectations of the
parties
HELD: The effect of the prohibition in Maine is to divest the
v. basic policies underlying the particular
W of any cause of action against H. If there is a conflict
field of law
between lex fori and lex loci, lex loci governs in torts in
vi. certainty, predictability and uniformity of
respect to the legal effect and incidents of the act.
result
vii. ease in the determination and application
The status as spouses is determined by New Hampshire of law to be applied
law but the incidents of that status is governed by the law
of the place of the transaction (Maine).
Examples of application:
i. torts – place of injury, place of tortious
Alabama Great Southern Railroad vs. Carroll conduct, domicile, residence or

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

nationality of parties, place where applying their law, then the apparent conflict is a
relationship is entered true conflict.
ii. contracts – choice of law of the parties,
place of contracting, place of
performance, domicile, residence, Babcock vs. Jackson
nationailty, place of incorporation and (1963)
place of business 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
Auten vs. Auten does not have a similar rule.
(1954)
FACTS: Spouses were married and lived in England. H left HELD: B should be allowed to recover. NY had a greater &
and went to NY. Spouses executed support agreement in more direct interest than Ontario. NY’s policy is to afford
NY. H failed to pay support. W sued H for legal separation. compensation to a guest against tortfeasor host while
W sued in NY to enforce agreement. H claimed that legal Ontario’s policy is to prevent fraudulent collusion to the
separation suit, extinguished liability under NY law. prejudice of Ontario defendants-insurance companies.
Thus, Ontario had no interest in denying a remedy to a NY
HELD: English law should govern the parties. England has guest against a NY host.
all the truly significant contacts while the nexus to NY is
entirely fortuitous. The rule on tort claim is:
Where the issue involves standard of conduct, law of the
England is the seat of marital domicile and the place where place of the tort is controlling, but as to other issues, court
W & children were to be, it has the greatest concern in must apply the law of the state which has the strongest
defining and regulating the rights and duties existing under interest in the resolution of the issue presented.
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
Criticisms to Approach: not all state legislatures publish
reports that explain the background and purpose of the
W & children, had his office.
laws, thus court is left to speculate on the purpose of the
law and not all reflected policy or had a purpose other than
In applying the “grouping of contacts” theory, courts,
to decide cases.
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.
 Pangalangan on Interest analysis: why consider
what the state wants when interests of individuals
Haag vs. Barnes are in issue?
(1961)
FACTS: Barnes & Haag had an affair in NY. H became
pregnant. After giving birth, H went to Chicago. Parties
c. Comparative Impairment
entered into a support agreement in Chicago. The
agreement contained a choice of law clause (Illinois). H &
- subordination of the state objective which would
child went back to live in NY. H filed support action in NY
be least impaired
against B. Under NY law, agreement is not binding. B’s
- How? Court should weigh conflicting interests and
defense: Illinois agreement bars suit.
apply the law of the state whose interest would be
more impaired if its laws were not followed
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 d. Trautman’s Functional Analysis
the place where support are being made compared to NY
whose contacts are of less weight & significance. (place of - this approach looks into:
liaison & residence of H & child) 1) the general policies of the state beyond those
reflected in substantive law
Criticisms to approach: no standard to evaluate the relative 2) policies and values reflecting effective and
significance/importance of each contact such that court harmonious relationship between states
may use approach to support any preconceived result ex. Reciprocity, advancement of multistate
without explaining its real motives. activity, protecting justifiable expectations,
evenhandedness and effectiveness.
b. Interest Analysis - after determining these policies, court should then
weigh the relative strength of a state policy
- resolve conflicts cases by looking at the policy - HOW? Court should consider whether the law of a
behind the laws of the involved states and the state reflects an “emerging” or “regressing” policy.
interest each state has in applying its own law.
- Tasks of the court: e. Leflar’s Choice-Influencing Considerations
1st: determine whether the case involves a true,
false or apparent conflict (false conflict: only one 5 major choice-influencing considerations
state has an actual interest in having the law 1) predictability of results
applied and the failure to apply the other state 2) maintenance of interstate and int’l order
law will not impair its policy) 3) simplification of the judicial task
2nd: if there is apparent or true conflict, court 4) application of the better rule of law
should take a second look on the policies and 5) advancement of the forum’s governmental
interests of the states. If only one has a real interest
interest, the other is insubstantial, then there is - court should prefer a law that make good
false conflict. If both have real interests in socioeconomic sense and are sound in view of
present day conditions

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

- Criticism: no principled or objective standard to

determine “better rule”. 1. Subject-matter Characterization

This calls for classification of a factual situation into a legal

category. It is significant in a single-aspect method
Traditional approaches do not consider policy; all modern because the legal category to which an issue is assigned
approaches look at policy. determines governing law
______________
Gibbs vs. Gov’t. of PI
(1933)
VI. The Problem of Characterization 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
A. Characterization and the Single-Aspect favor pursuant to California law. California Civil Code
Method provides that upon wife’s death previous to husband,
community property belongs absolutely to husband.
Single-aspect method: choice of law theories traditionally
concentrated on one element of a situation to connect case HELD: California Civil Code will not apply. The law of the
to particular legal community. place where land is situated governs its descent, alienation
Goal: simplicity, convenience, uniformity &transfer & for the effect & construction of wills & other
conveyances.
Multi-aspect method: modern approach by which all
important factors (non/territorial) are analyzed. As mandated by Philippine law, the lands were acquired as
community property in the conjugal partnership. The wife
The applicable law is arrived at by elaborating policies & was vested with a title equal to that of her husband. Upon
purposes underlying rules, and the needs of international her death, if there are no obligations of the decedent, her
intercourse. share in the conjugal property is transmitted to the heirs by
succession.
Goal: just resolution of case

The Philippines follows single-aspect method. Our conflicts Though the court was silent on the matter of
rules are mostly found in the Civil Code. characterization, it had the task of categorizing the issue as
one involving:
Art 15: Laws relating to family rights & duties, or to the b) property to be governed by lex situs, or
status, condition and legal capacity of persons are binding c) succession to be governed by decedent’s
upon citizens of the Philippines, even though living abroad. national law (California)

Art 16: Real property as well as personal property is Characterization problems are considered a threat to
subject to the law of the country where it is situated. traditional choice-of-law theories whose aims are
uniformity & predictability of results.
However, intestate and testamentary succession, both with
respect to the order of succession and to the amount of Problems:
successional rights and to the intrinsic validity of
testamentary provisions shall be regulated by the National A) C, is adopted in the Philippines by a former Filipino
law of the person whose succession is under consideration, citizen and moves to the US with her adoptive mother, M.
whatever may be the nature of the property and regardless By M’s laws, C will not be an heir. Will C be entitled to an
of the country wherein said property may be found. (AOI) intestate share in M’s estate?

Art 17: The forms and solemnities of contracts, wills, and The court would have to decide whether it is a Q relating to
other public instruments shall be governed by the laws of 1. Legality & effects of adoption: law of state
the country in which they are executed. where legal relationship of adoption was established or
where the adoption decree was granted shall govern; or
When the acts referred to are executed before the
diplomatic or consular officials of the Republic of the 2. Succession: adopter’s personal law shall prevail
Philippines in a foreign country, the solemnities established
by Philippine laws shall be observed in their execution. B) Principal authorizes a person to act as his agent in
another country. Agent commits a negligent act. What law
Prohibitive laws concerning persons, their acts or property, will determine the principal’s liability?
and those which have for their object public order, public It depends on the court’s characterization of the case as:
policy and good customs shall not be rendered ineffective
by laws or judgments promulgated, or by determinations or 1. Contractual: law of the place where the
conventions agreed upon in a foreign country. contract of agency was entered into; or

The rules specify geographical location in accordance with 2. Tortious: law of the place where tortuous
traditional approach. The problem with this: inherent conduct or injury occurred
rigidity, unjust decisions.

Solution: Characterization, Renvoi, Escape devices 2. Substance-Procedure Dichotomy

Characterization: the process by which a court assigns a Directs the court to the extent it will apply foreign law.
disputed question to an area in substantive law. It is a part
of legal analysis and a pervasive problem since at least 2 If issue substantive: court may apply foreign law
jurisdictions with divergent laws are involved. If issue procedural: follow forum law

Why apply forum law to matters of procedure?

Two Types of Characterization:

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

One of the main goals of a rational system of CL rules: 1) Statute of Frauds

Rights & Duties of parties arising from a legal situation It is considered substantive if words of law relate to
shall not be substantially varied because the forum in w/c forbidding the creation of obligation. One that forbids the
action is brought. enforcement of the obligation is characterized as
procedural
Courts of all civilized states now seek to protect parties, by
referring to foreign law, against a substantial change of Marie vs. Garrison: Defendant maintains that the NY
position because of fortuitous circumstance that suit was Statute of Frauds affects the remedy upon a contract w/in
brought in that forum. its terms—a rule prescribing evidence & deemed a rule of
procedure. Garrison claims that rules of the forum must be
The means provided for compulsion, or the limitation upon followed. Marie claims that NY law was constructed as a
compulsion are in most cases of equal practical importance rule of substance going into existence of contract;
to the declaration of the validity of the plaintiff’s claim. determined by lex loci contractus.

Such all inclusive reference to foreign law is never made. It Issue: Whether a contract declared ‘void’ by a stature still
would be too burdensome on the part of the forum and subsists as a contract w/ the only effect of depriving party
administration of justice will be delayed. Thus, it is of a remedy or mere evidence.
necessary to limit the scope of reference to foreign law. Held: It was a word of substance because the statute
provided that the contract of sale of any interest in land
This limitation excludes phases of the case which make the shall be void unless it was in writing ex contrario to a law
administration of foreign law inconvenient or violative of stating that ‘no action shall be brought’ of the requirement
local policy. In such instances, local rules of the forum are was not complied with.
applied & are classified as matters of procedure.

2) Statutes of Limitations (SL) & Borrowing Statutes

Grant vs. Mcauliffe
(1953) Statutes of limitations are traditionally classified as
FACTS: Plaintiffs, Grant, et al., (California residents) were ‘procedural’ because they only barred the legal remedy
injured in Arizona when their vehicle collided with that of w/out impairing the substantive right involved.
Pullen’s (California resident), who died of accident. The
suit against estate of Pullen filed by Grant to recover Thus, a suit can still be maintained in another JD w/c has a
damages was dismissed because under Arizona law- “a tort longer SL. However, certain SL’s have been classified as
action not commenced before the death of the tortfeasor substantive for conflicts purposes if providing a shorter
must be abated”. But under California law, an action for period for certain claim types falling w/in wider class
tort survives the death of tortfeasor. covered by the general SL.

HELD: Survival statutes are procedural. Thus, California Specificity test: to determine whether an SL is substantive
(forum) law applies. Forum law governs if issue is or procedural.
procedural. Under California Civil Code the action out of a
wrong resulting to a physical injury shall not abate because An SL of a foreign country is treated as “substantive” when
of the death of the wrongdoer. Plaintiff’s cause of action limitation was directed to newly created liability so
survives Pullen’s death. specifically as to warrant saying that it qualified the right

The reaction to Grant was generally negative. It was Borrowing statutes

criticized as being based on an erroneous characterization Purpose: Many states, the Philippines among others, have
greatly influenced by “sympathy”. passed borrowing statutes to eliminate forum-shopping.

Other view: Correct result but arrived at using dubious However, in the case of Cadalin, the court said that to
method. enforce the borrowed statute would contravene public
policy on protection of labor.
Currie: The court availed of one of several escape devices -
characterization. It characterized the problem differently,
such producing the result previously recognized as the Cadalin vs. POEA Administrator
sound result. (1994)
FACTS: Cadalin et al. instituted a class suit with the POEA
This device is not ideal. It is better if courts could expressly for money claims arising from their recruitment by AIBC
state the considerations that helped them determine the and BRII for pretermination of employment contracts.
results and indicate clearly how these considerations will be Under Bahrain law where some of the complainants were
used in other cases. deployed, the prescriptive period for claims arising out of a
contract of employment is one year.
No objective standard has been suggested. An attempt to
explain the court decision in terms of “demands of justice” HELD: Even though a law on prescription may be
or “social policy” would create uncertainty & arouse considered as substantial or procedural, its characterization
criticism. as either becomes irrelevant when the country of the forum
has a “borrowing statute.” Said statute has the practical
Procedural issues are governed by forum law so that the effect of treating the foreign statute of limitation as one of
court will not be unduly burdened by task of studying substance. Under the ROC of the Philippines, it is provided
peculiarities of another legal system. It must be noted, that “if by the laws of the state or country where the cause
though, that some matters cannot be clearly defined as of action arose, the action is barred, it is also barred in the
procedural or substantive. Philippines.” The Bahrain law on prescription should apply.
However, it cannot be enforced as it would contravene the
public policy on the protection to labor. Philippine law will
Two Issues whose classification (as procedural or then be applied.
substantive) is debatable:

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

B. Depecage e. the basic policies underlying the particular field of

law
From depecer, which means “to dissect.”
f. certainty, predictability, uniformity of results, and
Different aspects of a case involving a foreign element may
be governed by different systems of laws. g. ease in determination & application of law to be
applied
Von Mehren & Trautman: A man dies intestate domiciled in
state A & w/ movable properties in State B. The consideration of any elements & acceptance by courts
of depecage help ease restrictions of single aspect method.
How will the man’s estate be divided?
State A conflict rules refer to laws of domicile. Intestate law Courts not compelled to apply entire law to all aspects of
of State B gives the widow a definite share in the estate of case…that might produce egregious results. Cutting up the
deceased. But the determination of WON the woman case issue by issue is fair & reasonable.
claiming the share is a “wife” is referred to family law, not
laws on succession. But even if a useful tool in modern choice-of-law analysis,
the express reference to depecage in case law, both in US
Issues of law governing movable properties & successional & the Phil still uncommon.
rights of spouse are of primary importance, embodying
substance of claim. Validity of marriage ‘affects solution
because it answers a preliminary or incidental Q.
VII. The Problem of Renvoi
The presence of an incidental Q is one instance which calls
for the employment of depecage.
A. Definition
Merits of Depecage:
This technique allows other relevant interests of parties to Renvoi – a procedure whereby a jural matter presented is
be addressed. Thus, it permits courts to arrive at a referred by the conflict of laws rules of the forum to a
functionally sound result w/out rejecting the methodology foreign state, the conflict of laws rule of which, in turn,
of the traditional approach. This nuanced single-aspect refers the matter to the law of the forum or a third state.
method employs depecage by choice.
Remission: reference is made back to the law of the forum

Haumschild vs. Continental Casualty Transmission: reference to a third state

(1959)
FACTS: Haumschild and Gleason were married in Renvoi has been employed in cases where the domiciliary
Wisconsin, their domicile. Haumschild was injured in and nationality laws are applied to the same individual in
California while riding a motor truck driven by Gleason. issues involving succession, domestic relations and real
Their marriage was later annulled. An action for recovery of properties.
damages was filed by Haumschild in Wisconsin. Continental
alleges that under California law, a spouse is immune from Renvoi:
suit by the other spouse.

HELD: The law of the domicile ought to be applied in any State A State B
issue of incapacity to sue based upon family relationship. (RP)
The policy reason for denying the capacity to sue
(preventing family discord) more properly lies within the
Art. 16 Internal law
sphere of family law, where domicile usually controls the CC
law to be applied, than it does tort law, where the place of
the injury generally determines the substantive law which Conflict-of-
will govern. laws rule

The court decided that the law of the place of accident

(California) governed the issue of negligence while
Wisconsin law governed the issue of interspousal immunity. B. Various ways of dealing with the Problem of
The characterization process was taken one step further by Renvoi
not limiting the classification to the case itself but likewise,
to the issue arising from the case.
4 Ways of Dealing with the Problem of Renvoi (Prof.
The 1969 Restatement 2d adopted depecage & set out a Griswold):
number of factors to be considered in choosing the
applicable law: 1) if the conflicts rules of the forum court refer the
case to the law of another state, it is deemed to
a. needs of interstate & international system mean only the “internal” law of that state (internal
law: that which would be applied to a domestic
b. relevant policies of the forum case that has no conflict-of-laws complications) –
rejects the renvoi
c. relevant policies of other interested states & the
relative interests of those states in the 2) the court may accept the renvoi and refer not just
determination of a particular issue to another state’s “internal” law but to the “whole”
law (includes choice-of-law rules applicable in
d. protection of the justified expectations of the multi-state cases)
parties

Aznar vs. Garcia

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

(1963) c) desistance/mutual disclaimer

FACTS: The will of Edward Christensen, a domiciliary of the d) “foreign court” theory
Philippines, was admitted to probate, and a project of - the difficulty with the foreign court theory is that
partition was proposed. Edward’s illegitimate child opposed the forum court will have to anticipate or guess
the project of partition on the ground that the distribution how the foreign court will act.
of the estate should be governed by Philippine law. The  Renvoi is optional, based on the discretion of the
lower court found that Edward was a US citizen; hence the court and the facts of the case.
successional rights and intrinsic validity of the will should _______________
be governed by California.

HELD: Philippine law should apply. Art. 16 of the Phil. Civil C. Usefulness of Renvoi
Code provide that the national law of the decedent governs
the validity of his testamentary dispositions. Such national Renvoi has been used to avoid unjust results.
law 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 University of Chicago vs. Dater
of laws rule in California precisely refers back the case, (1936)
when a decedent is not domiciled in California, to the law FACTS: Mr. and Mrs. Price executed a trust deed and
of his domicile (the Philippines in the CAB). The Phil. court promissory notes in favor of University of Chicago, for a
must apply its own law as directed in the conflict of laws loan secured by Mr. Price and Mr. Dater. They were
rule of the state of the decedent. 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
3) by desistance or mutual disclaimer of JD – the Dater and Mrs. Price (Mr. Price having died earlier), the
same result as the acceptance of the renvoi court ruled that there was no cause of action against Mrs.
doctrine but the process used by the forum court Price, because under Michigan law a married woman has
is to desist applying the foreign law. no capacity to enter into an obligation such as this, hence
the note and trust deed were void. The question is which
4) “foreign court” theory – the forum court would law should be applied, Michigan or Illinois law.
assume the same position the foreign court would
take were it litigated in the foreign state HELD: Under the law of Illinois, the capacity of Mrs. Price is
governed by Michigan law (as held in the similar case of
Disadvantage to renvoi: if both courts follow the same Burr vs. Beckler, where the court said that since the
theory, there would be no end to the case since the courts contract was completed in Florida, that state governed her
would be referring it back to each other. It gives rise to capacity to contract). In this case, the contract was
situations that have been invariably described as complete in Michigan, and it governs her capacity to
resembling “revolving doors,” a “game of lawn tennis,” a contract. Since she was not competent to contract under
“logical cabinet of mirrors” or a “circulus inextricabilis.” Michigan law, her note and trust deed were void.

Annesley, Davidson vs. Annesley In the Dater decision, Michigan protected the interest of a
(1926) Michigan wife especially since Illinois disclaimed any desire
FACTS: The testatrix, a British subject, was a domiciliary of in applying its law. Also, uniformity of results was
France according to British law, but not according to promoted in spite of discrepancies in the choice-of-law
French law. She made a will in English form. In the will she rules of the involved states. With renvoi, the Dater decision
disposed of all her property in favor of her daughter, and was made dependent on substantive law and not on the
stipulated that she had no intention of abandoning her incidental law of the forum.
domicile in England. If she was a domiciliary of France, she
could only dispose of 1/3 of her personal property.
Objections to Renvoi
HELD: The domicile of the testatrix at the time of her death
was French. Applying English law, the fact of her residence Critics:
in France coupled with animus manendi showed her 1) renvoi would place the court in a “perpetually-
intention to abandon her English domicile even if she had enclosed circle form which it would never emerge
not complied with the formalities required under French and that it would never find a suitable body of
law to become a French domicile. substantive rules to apply to a particular case.”
The theoretical problem presented is that renvoi is
According to French municipal law, the law applicable in workable only if one of the states rejects it and
the case of a foreigner not legally domiciled in France is the that it achieves harmony of decisions only if the
law of that person’s nationality, which is British. But British states concerned do not agree on applying it the
law refers the question back to French law, the law of the same way.
domicile. And according to French law, the French courts,
in administering the movable property of a deceased Griswold: the objection is based on a false premise; as long
foreigner who, according to the law of his country is as remission is to the state’s internal law alone there will be
domiciled in France, and whose property must, according a stop to the “endless chain of reference.”
to that law, be applied in accordance with the law of the
country in which he was domiciled, will apply French 2) Courts may be unnecessarily burdened with the
municipal law, even if he had not complied with the French task of identifying the choice-of-law rules of
requirements for acquisition of domicile. another state.

Pangalangan: from a practical perspective, the forum court

will not use renvoi if, in the first place, it cannot ascertain
Options which the forum court may do: what the conflict-of-law rules of the foreign state are.
a) accept the renvoi (apply forum law)
b) reject the renvoi (apply the internal law of the
foreign state) Inapplicability of Renvoi in a False Conflict

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

US Restatement (Second) of Conflict of Laws: renvoi to be B. Proof of Foreign Law

used when there is a disinterested forum, to ensure that
only the laws advancing the policies of the interested states Foreign law may be proved by presenting either of the ff:
will be applied. If the choice-of-law rules of the state to 1. an official publication of the law
which reference is made refers the case back to the forum 2. a copy of the law attested by the officer having
state, the court may use this situation to determine if both legal custody of the record or by his deputy. If the
states have an interest in having their laws applied or if record is not kept in the Philippines, it must be
there is merely a false conflict. 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
Pfau vs. Trent Aluminum Co. seal of office)
(1970)
FACTS: Trent (a New Jersey domiciliary) agreed to drive
Proof of documents executed abroad: any public document
Pfau (a Connecticut domiciliary) to Missouri. While in Iowa,
executed abroad to be used in the Phils must be duly
they had a vehicular accident causing injuries to Pfau. Pfau
authenticated by the Phil. consul attaching his consular seal
filed suit in New Jersey against Trent Aluminum Co.
(registered owner of the car) for the damages he sustained Depositions of non-residents in a foreign country: they may
while a passenger in Trent’s car. The defense of Trent be taken—
Aluminum was that Iowa law is applicable, which provides
that the host-driver is not liable to his passenger-guest for 1) on notice before a secretary of embassy or
ordinary negligence. legation, consul general, consul, vice-consul, or
consular agent of the Phils.
HELD: Connecticut and New Jersey law both allow
passenger-guest recovery. It appears that Connecticut’s 2) before such person or officer as may be appointed
substantive law allowing a guest to recover form his host’s by commission or under letters rogatory.
ordinary negligence would give it a significant interest in
having that law applied to this case. Since Iowa has no 3) before such person which the parties have
interest in this litigation, and since the substantive laws of stipulated in writing
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 PCIB vs. Escolin
in New Jersey. (1974)
FACTS: Case bet. the administrators of the estates of
Hodges spouses. W’s administrator sought the application
Bellis vs. Bellis of Texas law. H’s administrator also used the Texas law but
(1968) arrived at a different conclusion.
FACTS: The probate of the will of Texas citizen and
domiciliary Amos Bellis was opposed by his 3 illegitimate HELD: Case remanded for parties to present proof of the
children in the Philippines for depriving them of their applicable Texas law. The question of what are the
compulsory legitime. However, the trial court ruled that applicable laws of Texas is one of fact and not of law.
under Art. 16 of the Phil. Civil Code, the national law of the Foreign laws may not be taken judicial notice of & have to
decedent is to be applied in testamentary succession. The be proven like any other fact in dispute between the
law of Texas did not provide for legitimes. parties in any proceeding with the rare exception in
instances when the laws are within the actual knowledge of
HELD: Texas law should apply. The decedent was both a the courts, such as when:
national and a domiciliary of Texas, so that even assuming a. they are well and generally known
Texas has a conflict of law rule providing that the law of b. they have been actually ruled upon in other
the domicile should govern, the rule would not result in a cases before it and none of the parties claim
reference back (renvoi) to Philippine law, but would still otherwise
refer to Texas law.
In Re Estate of Johnson
(1918)
VIII. Notice and Proof of Foreign Law 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.
A. Extent of Judicial Notice
HELD: Trial court judge erred in taking judicial notice.
It is the party whose cause of action or defense depended  The judge cannot take judicial notice of the acts of the
upon the foreign law who has the burden of proving the Legislative Department of US particularly the various
foreign law. laws of the American states.
 Likewise, Phil. courts cannot take judicial notice of the
Foreign law is treated as a question of fact that should be same under “matters of public knowledge”.
properly pleaded and proved  The proper rule is to require proof of the Statute
whenever it is determinative of the issue/s in Phil.
In the Phils., judicial notice may be taken of a foreign law courts.
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 Effects of Failure to Plead and Prove Foreign Law
which Phil law was derived or the judge had previously
ruled upon it in other cases. Forum court may:
1. dismiss the case for inability to establish cause of
In US, courts are allowed to take judicial knowledge of the action
law of sister states.

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

2. apply law of the forum (courts conclude that by failing HELD: CA was wrong. The US law or regulation authorizing
to adduce proof, parties acquiesce to the application of overbooking was not proved in accordance with our laws.
the forum law since it is the basic law)  TWA relied solely on the statement of its agent that
the Code of Fed. Regulations of Civil Aeronautics Board
3. assume foreign law is the same as law of the forum allows overbooking.
(processual presumption)  No official publication of the said code was presented
as evidence.
First approach: Dismiss the case
Written law maybe evidenced by an official publication
thereof or by a copy attested by the officer having legal
Walton vs. Arabian Oil Co.
custody of the record or by his deputy, accompanied by a
(1956)
certificate (made by a Phil. consular officer and
FACTS: Walton, US citizen, was injured in Saudi Arabia. His
authenticated by his seal of office) that such officer has
complaint did not allege the Saudi Arabia law nor did he
legal custody.
proved the same during the trial. TC ruled in favor of
defendant as he did not take judicial notice of S. Arabian
Third approach: processual presumption
law.

HELD: Because of failure to prove the foreign law, plaintiff

Miciano vs. Brimo
loses.
(1924)
Plaintiff has the burden of proving the law of Saudi Arabia
FACTS: Action for partition of estate of Brimo, a Turkish
from which he shall base his claim because under NewYork
citizen. Oppositor claims that proposed partition is contrary
law, where action was instituted, lex loci delicti is the
to Turkish law but he failed to prove & present evidence on
substantive la applied in tort cases.
the said Turkish law.
A court abuses its discretion under the New York Civil
Practice Act if it takes judicial notice of the foreign law HELD: In the absence of evidence on foreign law, they are
when it is not pleaded esp. when the party who had the to be presumed the same as those of the Phils. Oppositor,
burden to prove the same has not assisted the court in
himself, acknowledges that the foreign law was not proven
judicially learning it.
when he asked for opportunity to present evidence. He was
 The applicable tort principles necessary to establish granted ample opportunity to present competent evidence
plaintiff’s claim are not rudimentary. In countries and there was no GAOD when the court refused to grant
where common law does not prevail, these principles him another opportunity.
may not exist or maybe vastly different.

Suntay vs. Suntay

Second approach: apply forum law, conclude that parties (1952)
acquiesce to its application. 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.
Leary vs. Gledhill
(1951) HELD: Will cannot be allowed. Silvino was unable to
FACTS: Leary instituted this action in New Jersey to recover adduce the necessary proof under Secs. 1-3 of Rule 78 in
the loan contracted in France against G. G moved to order to probate the will in the Philippines, specifically:
dismiss on the ground that L’s proof were insufficient as a. the fact that the municipal court of Amoy is a probate
there is no pleading or proof of the law of France where court
the transaction occurred. b. the procedural law of China regarding probate of wills
c. the legal requirements for the execution of a valid will
HELD: L can recover despite failure to prove French law.
Altho the court recognizes the fact that France adopts civil Although there were unverified answers of the Consul
law rather than common law principles, the cause of action General of China, his answers are inadmissible because:
of L may still be pursued, as there are 3 presumptions that a. he does not qualify as an expert on Chinese law on
the court may apply in the CAB. These are: probate procedure (usu. attend to trade matters), and
1, French law is the same as law of the b. if admitted, the adverse party will be deprived of their
forum right to cross-examine him
2. French law, like all civilized countries, recognizes Thus, in the absence of proof, it may be presumed that the
certain fundamental principles (taking of a loan probate laws of China are the same as ours and the will in
creates obligation to repay) question does not comply with our probate laws.
3. By failing to prove French law, parties acquiesce
to apply forum law
The third presumption does not present any difficulties for CIR vs. Fisher
it to be universally applied regardless of the nature of the (1961)
controversy. This is more favored by the authorities and FACTS: Spouses Stevenson are British subjects. H dies
has been followed in Sturm v. Sturm. leaving W as sole heir. CIR assessed estate tax on the
In CAB, Rights of the parties are to be determined by New whole properties of the spouses because English law does
Jersey laws which permit recovery on the facts proven. not recognize conjugal partnership.

HELD: English law cannot be applied. The pertinent English

Zalamea vs. CA
law that allegedly vests in husband full ownership of
(1993)
properties acquired during the marriage was not proved by
FACTS: Zalamea filed action for damages against TWA.
CIR (petitioner). In the absence of proof, the Court is
RTC awarded actual and moral damages. CA denied award
justified in indulging in “processual presumption” in
of moral damages because there was no fining of bad faith
presuming that the law of England on the matter is the
and because overbooking was an allowed practice in US
same as our law.
airlines.

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

Board of Commissioners vs. CID FACTS: 2 Filipino stewardess-employees of PIA filed a case
(1991) for illegal dismissal against their employer in DOLE. PIA’s
FACTS: Board sought the deportation of G who is alleged defense is that under the contract of employment, the
to be an alien. Marriages of G’s grandfather and of G’s parties agreed that the EE-ER relationship shall be
father all performed in China were not properly proven. governed by the contract (which provided that Pakistan law
shall apply) and not the Labor Code.
Only self-serving testimonies were allegedly presented.
Also, marriages are claimed to be void according to HELD: Public Interest standard was applied. Pakistan law
Chinese law. cannot be invoked to prevent the application of Phil labor
laws and regulations to the subject matter of the case. The
HELD: In the absence of evidence to the contrary, foreign ER-EE relationship is much affected with public interest,
laws are presumed to be the same as those of the Phils. In such that otherwise applicable Phil laws and regulations
CAB, there being no proof of Chinese law on marriage, the cannot be rendered illusory by the parties agreeing upon
presumption arises. The Phils. adhere to the presumption some other law to govern their relationship.
of validity of marriage (A.220 FC) He who asserts the Also, PIA did not undertake to plead and prove the
marriage is not valid under our laws bears the burden of contents of the Pakistan law on the matter; it must
proof to present the foreign law. therefore be presumed to be the same as applicable
provisions of Phil law.
In deciding whether to apply forum law or to dismiss the
case/rule against the party who failed to prove the foreign Criticisms: courts using public policy exception can
law, court must consider the ff: factors disregard the applicable law reached and replace it with
forum law to arrive at its desired result without having to
a. degree of public interest involved provide the rigorous legal analysis required to explain the
b. accessibility of foreign law materials to the parties shift. Courts engage in “intolerable affectation of superior
c. possibility that plaintiff is merely forum shopping virtue”.
d. similarities between forum law and foreign law on the
issue involved
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
C. Exceptions to the Application of Foreign court to adopt the procedural machinery of another state
Law such as rules on venue, forms and pleadings. Any
individual who submits himself to the jurisdiction of the law
1) The foreign law is contrary to an important public of the forum must follow the forum’s rules of procedure.
policy of the forum
2) The foreign law is procedural in nature Problem: courts are tasked to characterize the problem as
3) Issues are related to property (lex situs) to whether it is substantive or procedural law which can be
4) The issue involved in the enforcement of foreign difficult at times, ex. If issue involves statute of limitations
claim is fiscal or administrative or statute of frauds
5) Foreign law or judgment is contrary to Good
Morals
6) The application of Foreign law will work 3. Issues are related to property (lex situs)
Undeniable Injustice to the Citizens of the Forum
7) The Foreign law is Penal in Character The universally-accepted rule is that as to immovable
8) The application of the Foreign law might endanger property, it is governed by the law of the place where it is
the Vital Interests of the State located.

These exceptions fall under 3 main categories: Phil Civil Code also applies lex situs to personal property. It
also applies to cases of sale, exchange, barter, mortgage or
1: when local law expressly so provides any other form of alienation of property.
2: when there is failure to plead and prove the foreign
law or judgment WHY? 3 reasons:
3: when the case falls under the exceptions to the rule a. land & its improvements are within the exclusive
of comity control of the State & its officials are the ones
who can physically deal with them
b. following a policy-centered approach, immovables
1. The foreign law is contrary to an are of greatest concern to the state in which they
important public policy of the forum are situated
c. demands of certainty & convenience
“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. 4. The issue involved in the enforcement of
foreign claim is fiscal or administrative
“public policy technique”: court declines to give due course
to a claim existing under a foreign law because it considers State is not obliged to enforce the revenue law of another.
the nature of the claim unconscionable or its enforcement
will violate a fundamental principle of justice, good morals Revenue laws affect a state in matters as vital to its
or some deep-rooted tradition. interests as penal laws. No court ought to hear a case
which it cannot prosecute without determining whether
dismissal on the ground of public policy is not dismissal on these laws are consonant with its own notions of what is
the merits and plaintiff can go elsewhere to file his claim. proper.

Opposition to exception: person should not be permitted to

Pakistan Intl Airlines v. Ople escape his obligations in maintaining the government by
(1990) crossing state lines.

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

2) an individual’s nationality is easily verifiable

5. Foreign law or judgment is contrary to from documents.
Good Morals

“contra bonos mores” - acts having mischievous or Demerits:

pernicious consequences or against true principles of 1) Problems arise with regard to:
morality. a. stateless persons
ex. Hiring for killing, bribery of public officials, b. persons with multiple nationalities
marriage between ascendants and descendants c. states w/ diverse legal systems having no single
national law

6. The application of Foreign law will work 2) a person’s ties to his nation may be so attenuated
Undeniable Injustice to the Citizens of if he has lived in another country.
the Forum - unreasonable for his national law to govern him
if he has no shared sense of identity.

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 Importance of Nationality in the Philippines
character and effect, a punishment of an offense against
the public. Most civil law countries follow the national law theory.

Penal statutes are all statutes which command or prohibit Phil SC: Nationality law theory is a conflict of laws theory
certain acts, and establish penalties for their violation and by virtue of which JD over the particular subject matter
even those which, without expressly prohibiting certain affecting a person, such as status of a natural born person,
acts, impose a penalty upon their commission. Revenue is determined by the latter’s nationality.
laws are not classed as penal laws although there are
authorities to the contrary. Art 15 CC expresses the nationality principle.
Art 15: “Laws relating to family rights & duties, or to
This exception is partly remedied under the international status, condition & capacity of persons are binding upon
law of extradition on the basis of jurisdictional cooperation citizens of the Philippines even though living abroad.”
and assistance.
This notion that a person’s private rights should be
determined by his political allegiance & not by his physical
8. The application of the Foreign law might location, owes its origin to the awareness of national
endanger the Vital Interests of the State identity born in the French revolution,

B. Determination of Nationality
PART THREE: PERSONAL LAW
Each state has prerogative to determine who are its
nationals or citizens by its own municipal law.
IX. Nationality
The Hague Convention on Conflict of National laws: “It is
for each state to determine who are its nationals. This shall
A. Importance of a Personal Law be recognized insofar as consistent w/ int’l. convention,
int’l. customs, & the principles of law generally recognized
The individual’s nationality or domicile serves as permanent w/ regard to nationality”.
connection b/w individual & state. Thus, what is assigned
him is a personal law allowing courts to exercise jd or Art 2. Hague Convention: Question on possession of
determine the governing choice-of-law rule on a specific nationality of a particular state “shall be determined in
situation or transaction involving him. accordance w/ the law of that state.

Personal law follows the individual. It governs transactions Who are Filipino citizens? (Philippine Constitution, Art IV)
affecting him most (marriage, divorce, legitimacy, capacity
to contract). 1) Those who are citizens of Philippines at time of
The need for personal law arose w/ Italian Medieval city the adoption of this Constitution
states. Domicile was the only relevant basis for personal
law. 2) Those whose fathers or mothers are citizens of
Law of nationality first used in Napoleon Code, then in the Philippines
Austrian Code, which said that laws concerning states &
capacity govern all cities irrespective of residence. 3) Those born before January 17, 1973, of Filipino
mothers, who elect Philippine citizenship upon
reaching the age of majority; and
Merits & Demerits of Nationality as Personal Law
4) Those who are naturalized in accordance w/
Merits: law
1) used to establish link b/w individual & state,
because laws of each state presumed to be made
for an “ascertained population” . 1. Natural-born Citizens

-since laws considered physical, moral qualities of Two principles w/c may be followed:
citizens, laws should apply to citizens wherever
they are

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

jus soli: looks to the law of the place of one’s birth to 2) He must have, as a rule, resided in the Philippines
determine one’s nationality (followed in many common law for a continuous period of not less than 10 years
countries).
o Why the 10 yr residence requirement?
jus sanguinis: rule of descent or blood. Followed in the So government can observe applicant’s
Philippines, articulated in the Constitution. conduct & ensure he imbibes principles &
spirit of our Constitution.
Natural born citizens: citizens of the Philippines from birth
w/out having to perform any act to acquire or perfect o When may period be reduced to 5 years?
citizenship.
a) applicant honorably held office under the Phil
Concept broadened by the Constitution to include “those gov’t. or under any of its political subdivisions
born before January 17, 1973, of Filipino mothers, who b) applicant has established a new industry or
elect Philippine citizenship upon reaching the age of introduced a useful invention in the Phil
majority”. c) Married to a Filipino woman
d) Engaged as teacher in a public or recognized
private school not for exclusive instruction of
Talaroc vs. Uy children of persons w/ particular nationality in
(1952) any of the branches of education for a period
FACTS: Uy was elected mayor of Manticao, but one of the of 2 years
defeated candidates filed a petition for quo warranto, e) Born in the Philippines
alleging that Uy was a Chinese citizen and therefore
ineligible for the office. 3) Must be of good moral character,
& believe in the principles underlying the Phil
HELD: Uy is a Filipino citizen, following the citizenship of Constitution &
his mother, who reacquired her Filipino citizenship upon
the death of her Spanish husband. A wife reverts to her must have conducted himself in a proper &
former status upon dissolution of the marriage by the irreproachable manner during entire period of
death of her husband, and where the widowed mother residence here in his relations w/ the constituted
herself thus reacquired her former nationality, her children government as well as w/ the community in w/c he is
(she being their natural guardian) should follow her living
nationality with the proviso that they may elect for
themselves upon reaching majority. o “Proper & irreproachable” imposes a
higher standard of morality than “good
moral character”
Co vs. Electoral Tribunal of the House of o How to prove “irreproachable conduct”?
Representatives By competent evidence such as
(1991) testimony of 2 character witnesses well
FACTS: Ong Jr. ran as representative of the 2nd district of known in community w/ high reputation
Samar and was proclaimed the winner. The losing for probity.
candidates filed election protests, claiming that Ong Jr. was
not a natural-born citizen. The law requires moral character of highest degree. Being
merely a “law-abiding citizen is inadequate.
HELD: Ong Jr. is a natural-born Filipino. He could not have
been expected to have formally or in writing elected 4) Must own real estate in the Phil worth not less
citizenship upon reaching majority, because he was already than P5,000, Phil currency, or must have lucrative
a citizen. His mother was a natural-born citizen, and his trade., profession, or lawful occupation
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. Yu Kian Chie vs. Republic
For those already Filipinos when the time to elect came up, (1965)
there are acts of deliberate choice which cannot be less FACTS: Yu Kian Chie, a Chinese national, applied for
binding. Election is both a formal and an informal process, naturalization, but the Solicitor General opposed the
and it has been held that participation in election exercises petition on the ground that Yu failed to prove that he had a
constitute a positive act of election of Philippine citizenship. lucrative income.

HELD: The petition should be denied. His true income

(outside of allowances and bonuses which are merely
2. Citizens by Naturalization contingent) is only P150 a month, which amount does not
come up to the category of lucrative, especially considering
Naturalization confers to an alien a nationality after birth by that he is a married man.
any means provided by the law.
o What does “lucrative trade, profession, or
In the Philippines, naturalization is by judicial method, lawful occupation” mean?
under CA 473, as amended RA 530. Substantial gainful employment or the obtaining
of tangible receipts
The naturalization process was relaxed under Marcos’
regime. Liberal method, summary inquiry. This, however, is lucrative employment: appreciable margin of
no longer in force. income over expenses in order to provide for
adequate support for himself & his family in case
of sickness, unemployment, disability to work.
Qualifications for Applicants for Naturalization
o Requirement of ownership of real property:
1) Petitioner must not be less than 21 years of age At odds w/ Art XII, Sec. 7 Phil Constitution:
on date of hearing of petition “Save in cases of hereditary succession, no
private lands shall be transferred or conveyed

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

except to individuals qualified to acquire or 4) if it is not fully established that applicant’s nation
hold lands of the public domain.” grants reciprocal rights to Filipino citizens

o Exceptions to prohibition on ownership of

land: C. Procedure for Naturalization
a) Save in cases of hereditary succession,
no private lands shall be transferred or conveyed The following are the steps for naturalization:
except to individuals qualified to acquire or hold
lands of the public domain - Testamentary a) a declaration of intention to become a citizen
succession is not covered by the exception must first be filed, unless the applicant is
provided in the Constitution. exempted from this requirement (Secs. 5 and 6,
b) Sec. 2, BP 185 allowing a natural-born Com. Act No. 473).
citizen who lost his Filipino citizenship to be a
transferee of a private land for residential b) The petition for naturalization must then be filed
purposes (not in excess of 1,000 sq. m. urban or (Sec. 8, Com Act No. 473)
1 ha rural land)
c) SC broadened exception to prohibition c) After publication in the Official Gazette or
by applying In Pari Delicto doctrine, excluding newspaper of general publication the petition will
from the ban the alien vendee who later becomes be heard (Sec. 9, Com. Act No. 473 as amended)
a naturalized Filipino
d) If the petition is approved, there will be a
o Additional exceptions thru judicial decisions have rehearing two years after the promulgation of the
been criticized for inviting violation of the judgment awarding naturalization (Sec. 1, Rep.,
Constitution & disregarding a fundamental policy Act No. 530)
of allowing no one to reap benefits from an
unlawful act. e) The last step will be the taking of the oath of
allegiance to support and defend the Constitution
5) Must be able to speak & write English or Spanish and the laws of the Philippines (Sec. 11, Com. Act
& any one of the principal Philippine languages No. 473, amended)

6) Must have enrolled his minor children of school Declaration of Intention

age in any of the public schools or recognized
private schools where Phil history, government & When: One year before petition is filed
civics are taught or prescribed as part of With whom: File with office of the Solicitor
curriculum during entire period of residence General
required of him, prior to hearing of his petition for How: Declaration under oath of bona fide intention to
naturalization as citizen. become Philippine citizen

o Children must learn & imbibe customs, traditions

& ideals of Filipinos so they’ll become law-abiding Exemptions to Filing of Declaration of Intention:
citizenship.
1) persons born in the Philippines and who have
o Compliance & affirmative showing…otherwise, received their primary and secondary education in
denied. public or private schools recognized by the
Government, and not limited to any race or
o Non-compliance because of insufficient finances: nationality
denied.
2) those who have resided continuously in the
Philippines for a period of thirty years or more
Disqualification for Naturalization before filing their application

General Rule: Burden of proving disqualification is upon the 3) the widow and minor children of an alien who
state. declared his intention to become a citizen of the
Philippines and dies before he is actually
But SC held that petitioner must prove he has none of naturalized.
disqualifications.
Requirement is mandatory, absolute prerequisite to
The law must be strictly construed against applicant naturalization. Failure is fatal. Void for noncompliance with
because naturalization is a privilege, not a right. law.

Watt vs. Republic: In cases where petition is exempt,

Possible causes for Disqualification: statement to his exemption and reasons should appear on
1) crime involving moral turpitude (act of bareness, the petition so the public maybe prepared to object to any
vileness, depravity in private and social life in evidence on this regard.
general; contrary to conduct of honesty, modesty
or good morals) Which court has jurisdiction?
RTC of province has exclusive jurisdiction on which
2) if applicant does not deal with and receive Filipinos petitioner has resided for at least one year immediately
in his home and visit Filipino homes in a spirit of preceding filing of person.
friendship and equality without discrimination

3) applicant’s conduct of keeping wife and children in a

neighboring country and only visiting them (lack Effect of Naturalization on Wife and Children
of sincere desire to embrace Filipino customs and
traditions) Section 15, C.A. 473 states that::

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

“Any woman who is now or may hereafter be married to a Commissioner ordered her to leave and sought her
citizen of the Philippines, and who might herself be lawfully deportation. Spouses filed appeal in SC.
naturalized shall be deemed a citizen of the Philippines.
HELD: Under Sec. 15 of CA 473, an alien woman marrying
Minor children of persons naturalized under this law who a Filipino, native born or naturalized, becomes ipso facto a
have been born In the Philippines shall be considered Filipina provided she is not disqualified to be a citizen of
citizens thereof. the Phils under Sec. of the same law. Likewise, an alien
A foreign-born minor child, if in the Philippines at the time woman married to an alien who is subsequently naturalized
of naturalization of the parent, shall automatically become here follows the Philippine citizenship of her husband the
a Philippine citizen, and a foreign-born minor child, who is moment he takes his oath as Filipino, provided, that she
not in the Philippines at the time the parent is naturalized, does not suffer from any of the disqualifications under Sec.
shall be deemed a Philippines citizen only during his 4.
minority, unless he begins to reside permanently in the
Philippines when still a minor, in which case, he will This ruling reversed a prior decision of the SC ( Burca vs.
continue to be a Philippine citizen even after becoming of Republic) which held that the alien woman married to a
age. Filipino must first file a petition for citizenship alleging that
she possesses all the qualifications and none of the
A child born outside of the Philippines after the disqualifications mandated by law.
naturalization of his parent shall be considered a Philippine
citizen, unless within one year after reaching the age of No Judicial Declaration of Philippine Citizenship
majority, he fails to register himself as a Philippine citizen
at the American Consulate of the country where he resides, A declaration of Phil citizenship may not be granted in an
and to take the necessary oath of allegiance.” action for declaratory relief nor under the Civil Code
provision (Art. 412) on correction of entry in the Civil
Registry.
Vivo vs. Cloribel
(1968) But the rule was relaxed in later decisions. A petition for
FACTS: Chinese wife, Chua and her minor children arrived correction of errors in the entry of the Civil Registry even
in the Phils from Hkong. Her husband applied for for a change of citizenship or status may be granted
naturalization in the Phils. Wife and children applied for provided that an appropriate action is made wherein all
indefinite extension of stay. Sec of Foreign Affairs allowed parties who may be affected by the entries are notified and
the change of their status from temporary visitors to represented and there is a full blown adversary proceeding.
special non-immigrants for 2 years. Commissioner of
Immigration refused their extension. The Foreign Affairs Tan Yu vs. Republic: There can be no action or proceeding
Sec. denied their appeal and they were advised to leave for the judicial declaration of the citizenship of an
the Phils. Chua filed action for mandamus to implement the individual.
first ruling of the Secretary but this was denied. Chua
efilled alleging that her husband will be granted Filipino D. Loss of Philippine Citizenship
citizenship so they were also due for eventual conversion.
CA 63, as amended by RA 106, provides that a Filipino
citizen may lose his citizenship in any of the following
HELD: The wife, under Sec. 15 of the Revised ways:
Naturalization Law, will not automatically become a Filipino
citizen upon her husband’s naturalization as she must still 1) Naturalization in foreign countries
show that she possesses all the qualifications and none of
the disqualifications for naturalization. But her having Frivaldo vs. COMELEC
misrepresented that she will stay for a brief period but her (1989)
intention was really to stay for a long time, demonstrated FACTS: Frivaldo was elected governor of Sorsogon and
her incapacity to satisfy the qualifications under Sec. 2 assumed office. The League of Municipalities of Sorsogon
which provides that she must be of good moral character filed for annulment of his election on the ground that he is
and must have conducted herself in a proper and a US citizen and therefor incapable of holding public office.
irreproachable manner during the entire period of her stay. Frivaldo admitted that he was a naturalized US citizen in
She also failed to satisfy the requirement of continuous 1983 but he underwent naturalization only to protect
residence for 10 years in the Philippines (actual stay: Oct. himself from then Pres. Marcos. Sol Gen supported
16 ’60 – June ’62) respondent’s contention that he is a US citizen because he
did not repatriate himself after his naturalization in the US
As to the children: The law requires that they must be
dwelling in the Philippines at the time of the naturalization HELD: Frivaldo lost his Filipino citizenship. If Frivaldo really
of the parent. Since prior to their father’s naturalization, wanted to disavow his US citizen citizenship & reacquire
they were already required to leave the country, they Phil. citizenship, he must do so under our laws. Under CA
cannot be said to be lawfully residing here. 63, Phil. citizenship may be reacquired through:
1. direct act of Congress
Also, they cannot be allowed to extend their stay. The
2. naturalization
period of stay of temporary visitors cannot be extended
3. repatriation
without first departing form the Islands. They cannot also
claim that they should be allowed extension until the
The alleged forfeiture of US citizenship because of his
father’s oath taking because their allowed stay was for a
active participation in the elections is between him and the
definite period up to a fixed day.
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
Moy Ya Lim vs. Commissioner of Immigration
the Special Committee to hear repatriation cases under LOI
(1971)
270 has not yet been convened, F should have waited for
FACTS: In 1961, Lau, a Chinese, was permitted to stay in
such or seek naturalization by legislative or judicial process.
the Philippines for 1 month to visit her grandfather. After
repeated extensions, she was allowed to stay until Feb.
Frivaldo vs. COMELEC
1962. However, on Jan. 1962 she married a Filipino.
(1996)

20
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

FACTS: Frivaldo took his oath of allegiance under PD 725

on June 30 ’95, much later than he filed his certificate of 7) cancellation of the certificate of naturalization
candidacy. He now claims Filipino citizenship through a
valid repatriation The Judge may cancel the naturalization certificate issued
and the registration in the Civil Registry, upon motion
HELD: Frivaldo reacquired his Filipino citizenship and is made in proper proceedings by Sol Gen, on any of the
now eligible to assume the office as governor. Law does following grounds:
not specify any particular date or time when candidate
must possess citizenship unlike that of residence and age. a) if it shown that said naturalization certificate was
It can also be said that Frivaldo’s repatriation retroacted to obtained fraudulently or illegally;
the date of his filing his application in Aug. 1994.
b) if the person naturalized shall, w/in the 5 yrs next
following the issuance of said certificate, return to
Labo vs. COMELEC
his native country or to some foreign country &
(1989)
establish his permanent residence there;
FACTS: Labo was elected mayor of Baguio. Lardizabal filed
a petition for quo warranto alleging that Labo is not a
Provided that the fact that person naturalized remain
citizen.COMELEC declared that he was a citizen but the CID
for 1 year in his native country of former nationality, or
ruled that he is not since the Australian Govt said that he is
2 years in any country, shall be considered as prima
still a naturalized Australian citizen.
facie evidence of his intention of taking up his
permanent residence therein
HELD: Labo is not a citizen of the Phils because he lost the
same by performing the ff acts under CA 63:
c) If the petition was made on an invalid declaration
1. naturalization in a foreign country
of intention
2. express renunciation of citizenship
3. subscribing to an oath of allegiance to support the
d) If it is shown that the minor children of the person
Consti and laws of a foreign country.
failed to graduate from recognized public or
private high school where the required subjects
Even if it is to be assumed that his naturalization was
are taught, through the fault of the parents either
annulled because his marriage to an Australian was found
by neglecting to support or by transferring them
to be bigamous, this does not automatically restore his
to another school.
citizenship. He must reacquire it by direct act of Congress,
by repatriation or by naturalization. None of these methods
Certified copy of decree canceling certificate forwarded
were done. Under PD 725, repatriation may be done by
to the Office of the President & the Solicitor General.
applying with the Special Committee on Naturalization and
if the application is approved, applicant must make an oath
e) If it is shown that the naturalized citizen allowed
of allegiance to the Republic of the Phils before a certificate
himself to be used as dummy in violation of the
of registration is issued by the CID.
Constitution or law requiring Philippine citizenship
as a requisite for exercise, use or enjoyment of a
2) Express renunciation of citizenship right, franchise or privilege.
Aznar vs. COMELEC
(1990)
Only a Grant of Political Privilege:
FACTS: Osmeña filed a COC for provincial governor of Cebu
but was declared ineligible (upon petition of Aznar) for
Judgment directing issuance of certificate of naturalization
being a US citizen, as shown by an Alien Certificate of
is a mere grant of political privilege. Neither estoppel nor
Registration. Osmeña alleges that he is a Filipino citizen
res judicata may be invoked to bar the state from initiating
being the child of a Filipino, holder of a Phil. passport, a
an action for cancellation or nullification of certificate of
resident of the Phils. since birth, and a registered voter.
naturalization issued.
HELD: Osmeña is a Filipino citizen. Aznar failed to present
If shown to have been obtained by fraud or illegal means,
proof that O lost his citizenship by any of the modes under
the certificate may be cancelled. Decision in naturalization
CA 63; he merely relied in the Alien Certificate of
case does not constitute res judicata.
Registration in concluding that O has been a naturalized US
citizen. Phil. courts are only allowed to determine who are
Republic vs. Li Yao
Filipino citizens, but have no power to determine who are
(1992)
persons considered as American citizens under US laws.
FACTS: Li Yao was a naturalized Filipino citizen, but the Sol
Also, the mere fact that he has an ACR does not mean that
Gen filed a petition to cancel his certificate of naturalization
he is no longer a Filipino; the renunciation needed to lose
on the ground that he obtained such certificate through
Phil. citizenship must be “express.”
fraudulent means. One of the grounds was tax evasion.
3) By subscribing to an oath of allegiance to HELD: A certification of naturalization may be cancelled if it
support the constitution or laws of a foreign was subsequently discovered to have been obtained by
country upon attaining twenty one years of age or misleading the court upon any material fact. And a
more, subject to certain exceptions
naturalization proceeding is not a judicial adversary
proceeding, such that a decision therein is not res judicata
4) by rendering service to, or accepting as to any matter that would support a judgment canceling
commission in, the armed forces of a foreign a certificate of naturalization on the ground of illegal or
country, subject to certain exceptions
fraudulent procurement thereof.
5) by having been declared by competent
authority, a deserter of the Philippine armed E. Problems in Applying the Nationality Principle
forces in time of war, unless subsequently, a
plenary pardon or amnesty has been granted 1. Dual or Multiple Citizenship
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

21
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

Each state determines who its nationals are in accordance requirements under our law for the naturalization of an
w/ the rule in the Hague Convention on Conflict of National alien.
Laws.
HELD: The permission of the Minister of the Interior of
Questions on WON a person possesses the nationality of a China is required before a certificate of naturalization can
certain state are to be determined in accordance w/ the be issued in favor of Oh Hek How. The question of how a
state’s internal law. Chinese citizen may strip himself of that status is
necessarily governed by the laws of China, not that of the
It is possible that a person can be claimed as national of 2 Philippines. As a consequence, a Chinese national cannot
or more states. be naturalized as a citizen of the Philippines, unless he has
complied with the laws of China requiring previous
Situations w/c may result to dual nationality: permission of its Minister of the Interior for renunciation of
Application of jus soli & jus sanguinis nationality.

1) Child born of 2. Statelessness

o parents who are nationals of country
applying jus sanguinis Understood in two senses:
o in a country applying jus soli
a) De jure stateless person: refers to an individual
has dual nationality who has been stripped of his nationality by his
own former government w/out having opportunity
2) Filipino citizen who marries an alien may to acquire another.
acquire citizenship of his or her spouse if the
spouse’s national law so allows. Problem of statelessness began during WW II &
worsened under Nazi regime in Germany & in
But a Filipino citizen who marries an alien shall retain USSR.
Philippine citizenship, unless by his or her act or omission,
he is deemed under the law, to have renounced it by b) De facto stateless person: individual possessed of
taking an oath of allegiance to the spouse’s country or by a nationality but whose country does not give
express renunciation. them protection outside their own territory.

3) Another instance of dual or multiple nationality - commonly called “refugees”.

is the case of an individual who is naturalized
citizen of another state but has not effectively Vietnam War: Masses of people escaped from Vietnam,
renounced his former nationality. Cambodia, and Laos without any travel documents, identity
papers or any form of identification normally granted by
In determining rights of an individual who may claim government.
multiple nationality in a third state, the ICJ applied principle
of “effective nationality.”
Conventions to Alleviate Problems of Stateless Persons:
Nottebohm Case
(1955) 1) 1951 Geneva Convention on Status Refugees
FACTS: Liechtenstein brought a case against Guatemala in
the ICJ for breach of its obligations under international law -provided some basic rights of stateless persons
and asking for reparations in behalf of Nottebohm. It is the
position of Liechtenstein that Nottebohm acquired 2) 1954 UN Conference on the Elimination or
Liechtenstein citizenship which would entitle him to its Reduction of Future Statelessness
diplomatic protection.
3) Convention on the Reduction of Statelessness
HELD: Liechtenstein is not entitled to extend protection to - enumerates conditions under w/c an individual would
Nottebohm, because when N applied for naturalization, not lose his or her nationality upon the risk of becoming
there is nothing to indicate that such application was stateless should a new nationality not be proved: i.e.
motivated by any desire to dissociate himself from the divorce, adoption, naturalization, expatriation.
Government of his country, Germany. He had been settled
in Guatemala for 34 years, and it was the main seat of his Convention also prohibits states from depriving nationals of
interests and business activities. identity:

In contrast, his actual connections with Liechtenstein were 1) as punishment or

extremely tenuous. No settled abode and no prolonged 2) as discriminatory instrument for political, religious
residence at the time of application; the application shows or ethnic reasons
that he was a mere visitor and his visit is of a transient
character. There is an absence of any bond of attachment Major objective: Remedy situation of children born w/out
between N and L and, on the other hand, the existence of acquiring any nationality, i.e. when a child is born in a
a long-standing and close connection between him and G, country following jus sanguinis principle of parents who are
a link which his naturalization in no way weakened. citizens of a jus soli country.

Oh Hek How vs. Republic Convention mandates that:

(1969) *jus sanguinis country grant its nationality to a person born
FACTS: Oh Hek How, a Chinese citizen, applied for w/in its territory if he would otherwise be stateless.
naturalization in the Philippines which was granted. A
certificate of naturalization was issue in his favor but the *jus soli country to extend its nationality to a person who
Government appealed, claiming that it was issued before would otherwise be considered stateless when one of his
the Minister of the Interior of Nationalist China issued the parents is a citizen of the contracting state.
permission for a valid renunciation of Chinese citizenship.
Oh Hek How argues that such permission is not among the Kookooritchkin vs. Solicitor General
(1948)

22
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

FACTS; Kookooritchkin, a native-born Russian who claims

to be a stateless refugee, filed a petition for naturalization. Caasi vs. CA
The petition was granted, for which the SolGen appealed, (1990)
saying that Kookooritchkin is not a stateless person. FACTS: Miguel ran for mayor of Bolinao and won. His
opponent filed a petition for disqualification, alleging that
HELD: K is a stateless person. His testimony, aside from Miguel is a green card holder and hence, a permanent
being uncontradicted, is supported by the well-known fact resident of the US and not of Bolinao.
that the ruthlessness of modern dictatorships has scattered
throughout the world a large number of stateless refugees HELD: Miguel’s possession of a green card disqualified him
or displaced persons, without country and without flag. from running for mayor. His application for immigrant
Knowing the history, nature and character of the Soviet status and his possession of a green card are conclusive
dictatorship, it would be technically fastidious to require proof that he is a permanent resident of the US despite his
further evidence of K’s claim that he is stateless than his occasional visits to the Philippines.
testimony that he owes no allegiance to the Russian
Communist government and, because he has been at war A candidate who is a green card holder must have waived
with it, he fled from Russia to permanently reside in the his status as a permanent resident or immigrant of a
Philippines. 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
X. Domicile Bolinao; hence he was disqualified to run for that office.

A. Definition
Uytengsu vs. Republic
Municipal law concept of domicile (Art. 50, CC): (1954)
FACTS: Uytengsu was born in the Philippines of Chinese
natural persons: the place of habitual residence parents. He went to the US to study; but in one of his
juridical persons: determined by the law creating or vacations in the Philippines he applied for naturalization,
recognizing it; and in its absence shall be understood as during the pendency of which he returned to the US to
the place where their legal representation or place of finish his studies. Upon his return, his application was
business is. granted; the Government appealed the grant because
under the law an applicant for naturalization is required to
Conflict-of-laws definition of domicile (Restatement): the reside continuously in the Phils. from the date of filing of
place with which a person has a settled connection for the petition up to the time of his admission to Philippine
certain legal purposes, either because his home is there or citizenship. Uytengsu’s defense is that since he has been
because that place is assigned to him by law. domiciled in the Philippines during the period of his
application, he was also a resident for that period.
Justice Story: the place of true, fixed permanent home and
principal establishment, and to which, whenever he is HELD: “Residence” and “domicile” each has, in strict legal
absent, he has the intention of returning. parlance, a meaning distinct and different from each other.
The essential distinction between resident and domicile is
A person may live in a place where he is not domiciled. To this: the first involves the intent to leave when the
acquire a domicile, there must be concurrence of purpose for which he has taken up abode ceases, while the
1) intention to make it one’s domicile and other has no such intent, the abiding is animo manendi.
2) physical presence. They are not to be held synonymous; residence is an act,
while domicile is an act coupled with intent. The question
“Residence” simply requires bodily presence. It is a of domicile is not involved in determining whether a person
relatively more permanent abode of a person, while is a resident of a state or country.
residence applies to a temporary stay of a person in a
given place (Koh vs. CA).
B. Merits and Demerits of Domicile

Domicile is permanent in nature; it is not as transient and Merits:

temporary as residence.
1) preferred primary connection between a person
2 Requisites for domicile: and a state because it satisfies the very purpose
1) physical presence for having a personal law (in common law
2) intent – actual intent, not merely floating intent countries) – it provides an adequate basis for him
 In order to establish new domicile, it is not to exercise rights therein and the state to impose
necessary to prove intent to stay indefinitely, as duties on him
long as the intent to abandon the old domicile is
apparent. 2) also suitable for countries with a federal system of
government – the law of the domicile is the law of
 In domicile of choice, intent is important the place where the individual lives

 In constructive domicile, there is no intent Demerits:

because the domicile is chosen by the law for the
person 1) one’s domicile is not ascertainable without first
resorting to the courts to establish whether or not
 The motive for leaving and the length of stay in there is animo manendi
the new domicile is not relevant in the
determination of domicile of choice 2) the notion of domicile differs widely in different
states (some distinguish between domicile and
 Habitual residence: “bridge” between residence residence; others attribute different meanings of
and domicile domicile for different purposes)
_______________

23
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

3) if the law of domicile of origin is given overriding (1932)

significance, it may create the problem of FACTS: Dorrance was born in Pennsylvania. He worked and
attenuated connection (similar to the use of resided in New Jersey, transferred to Philadelphia and then
nationality as personal law) returned to New Jersey. Later he was able to buy an estate
in Pennsylvania, where he stayed with his family until his
The Philippines follow the nationality law theory, but there death. During his lifetime he expressed that he intends to
are instances when our courts refer to the domicile of an remain a domiciliary of New Jersey. Pennsylvania assessed
individual in order to determine his rights or obligations. inheritance tax on his estate.
Example is
1) when the litigant is an alien whose country of origin HELD: He was domiciled in Pennsylvania at the time of his
follows the domiciliary principle; or death. A man cannot retain a domicile in one place when
2) where the situation concerns stateless persons, or he has moved to another, and intends to reside there for
those with dual or multiple nationalities; or the rest of his life, by any wish, declaration or intent
3) when an alien domiciled in the Philippines executes inconsistent with the facts of where he actually lives and
a will abroad. what he means to do.

C. General Rules on Domicile D. Kinds of Domicile

1) No person shall be without a domicile; his domicile 3 Kinds of Domicile:

of origin prevails until the acquisition of a new
one. 1) Domicile of origin: a person’s domicile at birth. A
legitimate child’s domicile is that of his father,
2) A person cannot have two simultaneous domiciles while an illegitimate child’s is that of his mother.
(a person can have only one domicile for a given
purpose or a given time under the law of a 2) Domicile of choice: also called voluntary domicile,
particular state, but it should not be assumed that is the place freely chosen by a person sui juris.
that determination will be binding on other states There must be concurrence of physical presence
or on the same state for other purposes). in the new place and unqualified intention to
make that place one’s home.
3) Domicile establishes a connection between a 3) constructive domicile
person and a particular territorial unit. A problem deciding the issue of domicile of choice is the
degree of permanence of abode.
4) The burden of proving a change of domicile is
upon whoever alleges that a change has been Difference between domicile of origin and domicile of
secured. choice: lies in a) conditions necessary for abandonment
and b) capacity for revival.

Romualdez-Marcos vs. COMELEC Reverter or revival doctrine: presumption that domicile of

(1995) origin revived once the domicile of choice is given up,
FACTS: Imelda Marcos filed her Certificate of Candidacy for before a new one is required.
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 Velilla vs. Posadas
Constitution. In her COC, she placed “7 months” as length (1935)
of residence. FACTS: Velilla, the administrator of the estate of Moody,
appealed the inheritance tax assessed against the estate
HELD: For purposes of election law, residence is on the ground that the decedent was not domiciled in the
synonymous with domicile. Mere absence of an individual Philippines. Moody went to Calcutta and Paris before his
from his permanent residence without the intention to death, and he died in India.
abandon it does not result in a loss or change of domicile.
HELD: He was a domiciliary of Manila. Domicile in the Civil
While Marcos held various residences for different purposes Code is defined as the place of habitual residence, which
during the past four decades, none of these purposes was Manila in the CAB. There was no statement from
unequivocally point to an intention to abandon her domicile Moody, oral or written that he adopted a new domicile
of origin in Tacloban, Leyte. She did not lose her domicile while he was absent from Manila. To establish
of origin upon her marriage to Pres. Marcos; what she abandonment, he must show his deliberate and provable
gained was actual residence. choice of new domicile coupled with actual residence and
declared or proved intent that it should be his permanent
abode. This was not proven.
Ujano vs. Republic
(1966)
FACTS: Ujano was a naturalized US citizen who returned to White vs. Tennant
the Philippines as a visitor and petitioned to reacquire (1888)
Philippine citizenship. The petition was denied because he FACTS: White and his wife lived in West Virginia, but
did not have the required residence. agreed to sell their house there with the declaration, intent
and purpose of making Pennsylvania their home. Upon
HELD: Residence, for naturalization purposes, has been reaching Penn., they had to go back to West Va. on
interpreted to mean the actual or constructive permanent account of the wife’s illness but White went to Penn.
home or domicile. He cannot be said to have established everyday to look after his stock. Upon his death, the
his domicile here although he is actually present because administrator paid the whole of the estate to the widow
his allowed stay as a visitor is only temporary and he must according to West Va. law. However, if Penn. law was
leave when the purpose of his coming is done. applied, ½ of the estate would go to White’s siblings. The
law of his domicile governs the distribution of his estate.

In re Dorrance’s Estate

24
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.

HELD: Pennsylvania was his domicile at the time of his

death. Two things must concur to establish domicile—the HELD: The minor children cannot enter the Philippines. A
fact of residence, and the intention of remaining. These Chinaman’s Chinese wife and her minor children do not
two must exist in combination. When one domicile is enter the Philippine Islands through their own right, but by
definitely abandoned, and a new one selected and entered virtue of the right of the husband and father. Since Tan
upon, length of time is not important; one day will be Bon did not enter the Philippines by her own right but by
sufficient, provided the animus exists. 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
3) Constructive domicile: domicile assigned to children of Tan Bon confers on them no right of entry,
persons incapable of choosing their own domicile inasmuch as she herself did not enter of her own right, and
by operation of law. Includes minors, mentally they cannot base their right on hers.
disabled, married women.

Minors or infants are indubitably incapable of choosing De La Vina vs. Villareal and Geopano
their own domicile. Their domicile automatically changes (1920)
when their father’s domicile changes. Minors take the FACTS: Geopano filed a complaint in CFI Iloilo against de la
domicile of their mother upon the death of their father. Vina, her husband, for divorce on the ground of infidelity.
De la Vina opposed, saying that CFI Iloilo has no JD over
A person who has a mental disability is also assigned a the case considering that he resides in Negros, such that
constructive domicile. It is presumed that a person with a Geopano must also be considered a Negros resident,
mental disability cannot acquire a domicile of choice because the domicile of the wife follows that of the
because of his inherent inability to decide where to make husband.
his home.
HELD: CFI Iloilo has JD. Where the husband has given
cause for divorce, the wife may acquire another and
Special Problems in Domicile of Choice vis-à-vis separate domicile from that of her husband.
Constructive Domicile
*There are exceptions to the rule that the domicile of the
1) domicile of people kept under physical or legal wife is determined by that of her husband, one of which is
compulsion that the wife may acquire another and separate domicile
from that of her husband where the theoretical unity of
2) domicile of married women seeking to acquire husband and wife is dissolved, as it is by the institution of
separate domicile from their husbands divorce proceedings; or where the husband has given
cause for divorce; or where there is a separation of the
People under Compulsion: traditional view is that he is in parties by agreement, or a permanent separation due to
that place not as a result of his volition. Examples are desertion of the wife by the husband or attributable to
military personnel, prisoners and people with disabilities cruel treatment on the part of the husband; or where there
who are confined in institutions. is a forfeiture by the wife of the benefit of the husband’s
domicile.

Caraballo vs. Republic

(1962) Modern view (married women): dispenses with the
FACTS: Caraballo, an American staff sergeant in the US Air presumption that the wife’s domicile is the same as her
Force stationed in Clark Air Base, filed a petition for husband’s. Each party establishes his or her own domicile
adoption of a Filipino child. The petition was denied on the completely independent of each other. As a result, the wife
ground that he was not qualified to adopt, him being a need not show that her husband has given cause for
non-resident alien. divorce or legal separation to have a separate domicile.

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 XI. Principles on Personal Status and Capacity
resident of the place. Caraballo is disqualified to adopt
because he is a non-resident alien. His stay in the
Philippines is only temporary, and is merely the result of his A. Definition
assignment as staff sergeant.
Personal capacity

In recent decisions, courts have held that a person under  Includes both condition and capacity
compulsion should not be barred from proving that he has  Embraces matters as the beginning and end of
developed the required unqualified intention to establish personality, capacity to have rights, capacity to
his permanent abode in such place. The fact of compulsion engage in legal transactions, protection of
is reduced to just one of the factors in determining whether personal interests, family relations, also
intent, in fact, exists. transactions of family law such as marriage,
divorce, separation, adoption, legitimation and
Married Women: based on the concept of unity of identity emancipation, and succession.
of spouses, the wife was presumed to take the domicile of
the husband. Juridical capacity: fitness of a man to be the subject of
legal relations

Go Chen and Go Lek vs. Collector of Customs Capacity to Act: power to do acts with legal effects
(1932)
FACTS: Tan Bon, a Chinese citizen, entered the Philippines ART. 37, Civil Code:
as the wife of a Chinese merchant. She asked her minor Juridical capacity, which is the fitness to be the subject of
children from a previous marriage to join her here, but they legal relations, is inherent in every natural person and is
were not allowed entry.

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

lost only through death. Capacity to act, which is the power For civil purposes, the fetus is considered born if it is alive
to do acts with legal effect, is acquired and may be lost. at the time it is completely delivered from the mother’s
womb. However, if the fetus had an intra-uterine life of
In case of Filipinos, Art. 15 of the CC states that personal less than 7 months, it is not deemed born if it dies within
status and capacity follows the nationality principle. 24 hours after its complete delivery from the maternal
womb
In case of aliens, courts may refer to their national law or
domiciliary law. 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
Recto vs. Harden expressly limits the provisional personality by imposing the
(1959) condition that the child should be subsequently born alive.
FACTS: H engaged the services of R, as counsel in her suit Civil personality is commenced at birth and is extinguished
against her husband for support and for preservation of her by death. A declaration of death issued by a competent
rights in the conjugal partnership in contemplation of a court is considered valid for all purposes.
divorce suit. However, the spouses entered into a
compromise agreement to defeat the claim of R in
attorney’s fees. H moved to dismiss on the ground of Limjoco vs. Intestate Estate of Fragante: HELD: SC ruled
invalidity of the contract of service because divorce is that the estate of a deceased applicant can be granted a
contrary to Phil law. CPC to avoid injustice or prejudice resulting from the
impossibility of exercising such legal rights & fulfilling such
HELD: R should be paid his fees. H spouses are US citizens legal obligations of the decedent as survived after his death
and their status and the dissolution thereof are governed unless the legal fiction, that the estate is considered a
by the laws of the United States, which sanction divorce. person, is indulged.
Therefore, contract is not contrary to public policy.

B. Legislative Jurisdiction Distinguished from D. Absence

Judicial Jurisdiction

Status once established by the personal law of the party, is The domestic laws of states do not treat absentees alike.
given universal recognition.
Three ways of dealing with the problem:
Status, capacity, and rights and duties, brought into
existence by State A and conferred in a natural or juridical 1. there is a rebuttable presumption that a person is
person under its jurisdiction, should be recognized by State dead after he has been absent for a number of years
B, without any exception or qualification imposed by the
latter, except by some definite or protected rule of 2. a person’s unexplained absence is judicially
municipal law. investigated and established which results in legal
effects similar to those of death
- Aliens can sue and be sued in our courts even on 3. a judicial decree shall have to be issued declaring a
issues relating to status and capacity. However, the person dead before legal effects of death can take
applicable law is their personal law. place

*Phil law follows the rebuttable presumption (1).

Barnuevo vs. Fuster
(1913) Art. 390, CC
FACTS: Fuster and Yanez separated. After 10 years, Y filed After the absence of 7 years, it being unknown whether or
for divorce on the ground of F’s adultery. Court granted not the absentee still lives, he shall be presumed dead for
decree of divorce. Fuster contests jurisdiction of the court all purposes, except for those of succession.
to issue the said decree.
The absentee shall not be presumed dead for the purpose
HELD: Phil court has jurisdiction. The authority and of opening his succession till after the absence of 10 years.
jurisdiction of courts are not a matter of private law of If he disappeared after the age of 75 years, an absence of
persons but of the public or political law of the nation. The 5 years shall be sufficient in order that his succession may
jurisdiction of courts and other matters of procedure are of be opened.
public nature and are submitted to the territorial principle.
Art. 391, CC

Note: The doctrine is no longer controlling. Divorce is The ff. shall be presumed dead for all purposes, including
considered a violation of public policy so that courts cannot the division of estate among the heirs:
issue the same. (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.
C. Beginning and End of Personality (2) A person in the armed forces who has taken part in
war and has been missing for 4 years
The determination of the exact moment personality begins (3) A person who has been in the danger of death under
is referred to the individual’s personal law. other circumstances and his existence has not been
known for 4 years
Art. 40, CC
Birth determines personality; but the conceived child shall However, for specific purposes, our laws require that a
be considered born for all purposes that are favorable to it, declaration of death be issued before certain legal effects
provided it be born later with the conditions specified in the of death arise ex. Contracting a subsequent marriage but
following article. the periods are reduced to 2 years.

Art. 41, CC

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

The legal effects of absence and restrictions on his capacity

are determined by his personal law. Man & woman may decide to marry in a country other than
that of their nationality & come home. Issue of validity of
marriage & legal consequences may be raised (Legal
consequences such as personal & property relations, status
E. Name & rights of children, use of surname & right to inherit).

A person’s name is determined by law and cannot be Family law is an area of substantive law which reflects
changed without judicial intervention.(Art. 376, CC) Case strong policies of state often based on values highly held
law shows that courts have allowed petitions on grounds by society. Family relations give rise to grave individual &
that the name— societal concerns.

1. is ridiculous or tainted with dishonor or extremely

difficult to pronounce A. Marriage
2. when the change is necessary to avoid confusion
3. when the right to a new name is a consequence of Family Code Definition:
change in status Art 1. “Marriage is a special contract of permanent union
4. a sincere desire to adopt a Filipino name to erase signs b/w man & woman entered into in accordance w/ law for
of a former alien nationality which unduly hamper the establishment of conjugal & family life.
social and business life
It is the foundation of the family & an inviolable social
Confusion as to one’s paternity has been held to justify the institution whose nature, consequences & incidents are
court’s denial of a petition for change of name. governed by law & not subject to stipulation except that
marriage settlements may fix property relations during the
Whether an alien’s change of name is valid depends solely marriage w/in limits provided by this Code.”
on his personal law.
Juxtaposed w/ Art15 CC, w/c states that questions on
family rights, duties, status, conditions & capacity are
F. Age of Majority governed by lex nationalii, the importance of such
definition is realized.
The legal disability and rights attached to minority are
aspects of personal status. It is the individual’s personal Marriage is a special contract as distinguished from an
law which determines whether he has reached the age of ordinary contract:
majority.
1) entered into by a man & a woman
RA 6809 lowered the age of majority from 21 – 18 years 2) both at least 18 years of age
but parental consent for contracting marriage is still 3) solemnized by a person specifically authorized by
required until the age of 21. law
4) a permanent union unless one party dies, or
marriage is annulled or declared void in special
G. Capacity circumstances
5) cannot be abrogated, amended or terminated by
A person’s ability to act is governed by his personal law. one or both parties at will
Rules on capacity of an individual to bind himself by 6) nature & consequences as well as incidents are
contract with other persons or by unilateral acts are the governed by law & not subject to stipulation by
very core of the rules that identify his legal position. The parties unlike ordinary contracts
incapacities attached to his legal status go with him 7) violation of marital obligations may give rise to
wherever he is. penal or civil sanctions while breach of conditions
of ordinary contract can be ground for an action
The general rule on capacity is subject to several for damages
exceptions. These include liability in tort, which is subject
to the law of the place of the tort and the restrictions on 1. Philippine Policy on Marriage and
the contracting capacity of a married woman. the Family

Art XV. Sec. 2: Marriage as an inviolable social institution,

Insular Government vs. Frank is the foundation of the family & shall be protected by the
(1909) state.
FACTS: Insular Govt entered into an employment contract
with Frank in Illinois when he was still a minor under Phil Presumption of validity: The Philippines establishes a
law but not under Illinois law. Frank breached the contract presumption of validity to give stability to marriage
so IG sued him. especially in Conflicts of Law problems.

HELD: Illinois law should apply. Matters bearing upon the Art 220. CC. In case of doubt, all presumptions favor the
execution, interpretation and validity of a contract are solidarity of the family. Thus every intendment of law or
determined by the law of the place where the contract is facts lean toward the validity of marriage, the indissolubility
made. of marriage bonds, legitimacy of children, the community
of property during marriage…

This case should have been resolved as a capacity case Goal: Guide courts, strengthen family, & emphasize state
instead of as a contract case (characterization). interest in its preservation

PART FOUR: CHOICE OF LAW PROBLEMS 2. Extrinsic Validity of Marriage

This is governed by lex loci celebrationis.

XII. Choice of Law in Family Relations

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

Extrinsic validity covers questions on formalities or external before a village leader is valid in China, the same is not one
conduct required of parties for legally valid marriage. of those authorized in our country. Under Sec. 4 of Gen.
Orders 68 (now Art. 71 CC), a marriage contracted outside
Art 2. Hague Convention on Celebration & Recognition of the Philippines which is valid under the law of the country
Validity of Marriages: Formal requirements governed by law in which it was celebrated is also valid here; but there was
of state of celebration. no proof presented on the applicable law of China.
General rule: All states recognize as valid marriages Therefore it may be presumed to be the same as our law.
celebrated in foreign countries if the formalities prescribed
there were complied with.
Apt vs. Apt
PHILIPPINES, Formal Requirements of Marriage (1947)
FACTS: The marriage of the Apts (both Germans) was
Art 3. FC sets the ff requirements: celebrated in Argentina by proxy. The wife, a domiciliary of
England, filed a petition for the nullification of their
1) Authority of solemnizing officer marriage on the ground that proxy marriages are not valid
2) Valid marriage license except in cases provided in in England. It is, however, valid in Argentina.
Ch 2 of this title
3) Mariage ceremony w/c takes place w/ the HELD: The marriage is valid. The English law on marriage
appearance of contracting parties before the is locus regis actum. If a marriage is good by the laws of
solemnizing officer & their personal declaration the country where it is effected, it is good all the world
that they take each other as husband & wife in over, no matter whether the proceeding or ceremony
the presence of not less than 2 witnesses of legal which constituted marriage according to the law of the
age place would or would not constitute marriage in the
country of domicile of one or other of the spouses. Since
Lex Loci Celebrationis (expressed in Art 26 FC): the marriage was performed in Buenos Aires and in
“All marriages solemnized outside the Philippines in accordance with its laws, and since proxy marriage is only
accordance w/ the laws in force in the country where they a form of the ceremony and not an essential requisite, the
were solemnized, and valid there as such, shall also be marriage should be upheld.
valid in this country…”

Exceptions to Lex Loci celebrationis: The Civil Code (Art 71)

Adong vs. Cheong Seng Gee enumerates bigamous, polygamous or incestuous
(1922) marriages as exceptions to the lex loci celebrationis rule.
FACTS: The late Cheong Boo’s estate is being claimed by
Cheong Seng Gee, who says that he is the legitimate child The Family Code (Art 26) widens these exceptions.
of the decedent with Tan Dit, whom the decedent allegedly
married in China. A foreign marriage although valid in the foreign country
where it was entered into will be void in the Philippines if:
HELD: The validity of the Chinese marriage cannot be
recognized. There is no competent testimony what the laws 1) either or both parties are below 18
of China in the Province of Amoy concerning marriage were 2) it is bigamous or polygamous
in 1895. There is lacking proof so clear, strong and 3) a subsequent marriage is performed w/out
unequivocal to produce a moral conviction of the existence recording in the Civil Registry & registry of
of the alleged Chinese marriage. 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
People vs. Mora Dumpo 4) there was a mistake as to identity of the
(1935) contracting party
FACTS: Dumpo married Hassan, and then married 5) one of the contracting parties was psychologically
Sabdapal without having her previous marriage annulled. incapacitated to comply with the essential marital
As a defense to an allegation of bigamy, Dumpo claimed obligations
that her 2nd marriage was void because her father did not 6) the marriage is incestuous
consent thereto. 7) marriage is void by reason of public policy

HELD: Dumpo is not guilty of bigamy. The 2nd marriage Note that the exceptions put in issue the parties’ capacity
was null and void because the consent of her father was to enter into marrriage, thus, relating to a substantive
not obtained. It is an essential element of bigamy that the requirement.
alleged 2nd marriage, having all the essential requisites,
would be valid were it not for the existence of the first. 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.
Wong Woo Yu vs. Vivo
(1935)
FACTS: Wong Woo Yu alleged before the Board of Special 3. Intrinsic Validity of Marriage
Inquiry that she was allegedly married to a Filipino, Blas, in
a ceremony in China. The new Board ordered Wong to be Intrinsic requirements refer to capacity or general ability of
excluded from the country, on the ground that her a person to marry, for instances defined by requirements of
marriage to Blas was bereft of substantial proof. age & parental consent, but it does not refer clearly to an
individual’s being permitted to marry a specific person or
HELD: Wong should be excluded. Art.15 of our Civil Code person of a determinate class.
provides that the laws relating to family rights or to the
status of persons are binding upon Philippine citizens, What law controls intrinsic requirements?
though living abroad. Even if the marriage of Wong to Blas

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

The parties’ personal laws—either domicile or nationality. Sottomayor vs. de Barros

(1877)
Municipal laws of each state provides substantive FACTS: Sottomayor and de Barros are both Portuguese and
requirements of marriage. first cousins. Under Portuguese law they are incapable of
contracting marriage. They were married in London.
Philippine Law sets the following substantive or essential Sottomayor filed a petition to have the marriage declared
requisites: invalid.

1) Legal capacity: must be 18 years of age & not HELD: The marriage is invalid. The law of a country where
barred by any impediment to marry each other marriage is solemnized must decide all questions relating to
the validity of the ceremony by which the marriage is
2) Consent freely given: in the presence of an alleged to have been constituted; but as regards questions
authorized solemnizing officer on personal capacity, it must depend on the law of the
domicile, and if the laws of any country prohibit its subjects
Matrimonial consent: Parties are, at least, not ignorant that within certain degrees of consanguinity from contracting
the marriage is a permanent union. marriage and treats such as incestuous, this imposes on
the subjects a personal incapacity which continues to affect
Mixed marriages: the law that governs substantive validity them so long as they are domiciled in said country and
is national law of parties. renders such marriage invalid wherever it may have been
solemnized.
Art 38. FC.: Though valid in a foreign country certain
marriages may be void in the Philippines on grounds of
public policy, such as the ff: In re May’s Estate
(1920)
1) b/w collateral blood relatives, whether legitimate FACTS: Fannie is Sam’s niece by half blood; they are both
or illegitimate up to the 4th civil degree Jewish and NY residents. NY prohibits marriage between
2) b/w step-parents & stepchildren uncle and niece, so they went to Rhode Island, where such
3) b/w parents-in-law & children-in-law marriage is also prohibited except where the parties are
4) b/w adopting parent & adopted child Jewish (the Jewish faith allow such marriages). After the
5) b/w surviving spouse of adopting parent & ceremony they went back to NY to live there.
adopted child
6) b/w surviving spouse of adopted child & adopter HELD: The marriage is valid. The legality of a marriage
7) b/w adopted child & legitimate child of adopter between persons sui juris is to be determined by the law of
8) b/w adopted children of same adopter the place where it is celebrated. The general principle is
9) b/w parties where one, w/ intention to marry the that the rights dependent upon nuptial contracts are to be
other, killed the person’s spouse or his or her own determined by the lex loci, subject to 2 exceptions: 1)
spouse cases within the prohibition of positive law, and 2) cases
involving polygamy or incest in a degree regarded
generally as within the prohibition of natural law. As to the
Marriages Between First Cousins: first exception, there is no “positive law” in New York which
serves to interdict the marriage in Rhode Island of Sam
Marriage of 1st cousins is no longer incestuous but still void and Fannie, and as to the second exception, their marriage
ab initio on the ground of public policy. was not offensive to the public sense of morality, it being
allowed by the Jewish faith.
It is submitted that our prohibition against marriage of 1 st
cousins be limited only to Filipino nationals because many Instances Where Recognition of Validity of Marriage May be
countries allow such marriages. Withheld:

Marriages b/w foreigners whose national laws allow Christianity prohibits polygamous & incestuous marriages
marriage of 1st cousins should be considered as valid in the but care must be taken to confine doctrine to cases
Phil under the principle that the lex nationalii controls deemed incestuous by general consent of all Christendom.
capacity & presumption in favor of validity of marriage, as
expressed in Art 220. The state may resort to ultimate escape device-
contravention of a public policy to w/hold recognition of
Hague Convention on validity of Marriages allows a validity of a foreign marriage.
contracting state to refuse recognition of the marriage if:
Rule: Marriages manifestly incompatible with the ordre
1) one of spouses was already married (unless public of the state of nationality of parties may be refused
marriage has subsequently become valid by virtue recognition.
of dissolution or annulment of previous marriage)
However, commentators argue that when the
2) spouses were related to one another by blood or non/existence of marriage is merely a preliminary Q arising
by adoption, in the direct line or as brother or incidentally in a case involving an issue not profaning
sister mores of forum (such as tax, property or succession law)
the rule above should not be applied.
3) one of spouses had not attained the minimum age
required for marriage nor acquired the necessary In ReDalip Singh: two women claimed that they were
dispensation lawfully wedded wives of Singh, a native of India who died
intestate in California. They claim to have been lawfully
4) one of the spouses did not have the mental married to him in India over 50 yrs ago while domiciled
capacity to consent there in accordance w/ law of the Jat community.

5) one of the spouses did not freely consent to the Under California laws, only 1st wife recognized as legal
marriage 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

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

of the country in w/c the same were contracted are valid in But, in Ch VIII on Domicile, some legal authorities consider
this state”. the assignment of constructive domicile to the wife as
invidious discrimination on basis of gender.
Court, citing English & American cases: Polygamous
marriages can be recognized in English law “so as to confer Property Relations of Spouses
on the ‘wives’ the status of a wife for the purposes of Sec.
10 of British Nationality & Status of Aliens Act or for Hague Conventions on law Applicable to Matrimonial
purposes of succession, & upon the children the status of Property: The internal law designated by spouses before
legitimacy. marriage or in absence thereof the internal law of state in
w/c both spouses fix their habitual residence is the
Marriages Celebrated by a Consular Official governing law on matrimonial property regimes.
Art. 9 of the relevant Hague convention: Marriage
celebrated by a diplomatic agent or consular official in Art 80. Family Code: In the absence of a contrary
accordance with his state law shall be considered valid as stipulation in a marriage settlement, property relations of
long as it is not prohibited by the state of celebration spouses shall be governed by Philippine laws, regardless of
the place of the celebration of the marriage & their
Philippine law: Marriage of Filipino nationals shall be residence.
officiated by Philippine consul general, consul or vice consul
(in w/c case the formal & extrinsic requirements of a valid This rule shall not apply:
marriage license & due publication & registration under
Philippine law have to be complied with). 1) If both spouses are aliens

This is said to apply to marriage b/w Filipino national & an 2) With respect to the extrinsic validity of contracts
alien provided the alien complies with marriage requisites affecting property not situated in the Philippines &
under his/her national law. executed in the country where the property is
located
Additional requirements for:
3) With respect to the extrinsic validity of contracts
1) aliens - submission of a certificate of legal entered into in the Phil but affecting property
capacity to contract marriage issued by situated in a foreign country whose laws require
diplomatic/consular office different formalities for its extrinsic validity

2) stateless persons or refugees- submission of Art 80 generally follows lex rei sitae.
affidavit stating circumstances showing legal
capacity to contract marriage 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.
4. Effects of Marriage
Change of nationality after Marriage
Personal Relations between the Spouses If one or both spouses change nationality subsequent to
marriage, property regime remains unchanged because of
These include mutual support, fidelity, respect, principle of immutability.
cohabitation & right of wife to use husband’s family name)
Hague Convention on Matrimonial Property Regimes. Art 7 :
What is the governing law? National law of parties The applicable law continues notwithstanding any change
of their nationality or habitual residence.
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. extrinsic validity: refers to formal requisites, apply lex loci
celebrationis
Art 69 Family Code: Husband & wife have the right to fix
family domicile. intrinsic validity: refers to essential requisites, apply
 Court, for compelling reasons, may exempt spouse personal law of the parties
from living with the other.
In Adong and Wong Woo Yu, the Court did not

Djumantan vs. Domingo: Filipino marries Indonesian. They apply the Philippine policy of presumption of
go to Philippines w/ intention of staying here permanently. validity of marriage.
Subject of petition: Effect of marriage on wife’s right to  Question: is a proxy marriage between Filipinos in
stay in the Philippines. a state allowing such marriages valid?
Pangalangan: Yes, because it is merely a formal
There is no law guaranteeing aliens married to Filipino requisite (lex loci celebrationis apply)
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 B. Divorce and Separation
withdraw her from operation of immigration laws governing
admission & exclusion of aliens. Marriage of an alien Divorce: Absolute or Limited
woman to Filipino citizen does not ipso facto make her a
Filipino citizen & does not excuse her from her failure to Absolute: termination of legal relationship b/w spouses by
depart from the country upon expiration of her extended an act of law.
stay here as alien”.
Limited: (Legal separation) separation form bed & board
Restatement 2nd: The wife who lives w/ her husband has w/c does not effect the dissolution of marital ties. But it
the same domicile as his unless special circumstances of modifies the incidents of marriage by relieving spouses of
wife make such result unreasonable. duty of living w// each other.

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This does not necessarily affect economic rights & duties Tenchavez vs. Escaño
since the court may order one to provide for support. For (1965)
such purpose, it is essential that court has JD over FACTS: Vicenta and Pastor were married without the
respondent spouse & the property sought to be affected by knowledge of her parents. Vicenta went to the US to obtain
decree. 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
Local law governs legal consequences of divorce of damages. Vicenta’s defense is that there was a valid
spouses, nationals of same country, who marry, are divorce issued by the Nevada court.
domiciled & divorce.
HELD: The divorce decree obtained in the US is not valid,
If any of above factors connected to another state… because at the time it was issued, Vicenta, like Pastor, was
conflicts problem arises. still a Filipino citizen. She was then subject to Philippine
law. Philippine law cannot recognize a foreign decree of
Divorce jurisdiction: absolute divorce between Filipino citizens, for this would
violate declared public policy.
Basis of JD of some countries: Domicile of one of the
parties or matrimonial domicile
Van Dorn vs. Romillo
Ratio: Divorce, being a matter of state concern, should be (1985)
controlled by “law of place w/ w/c person is most FACTS: Van Dorn, a Filipina, married American Upton. Ten
intimately concerned, place where he dwells. years later they were divorced in the US; subsequently, van
Dorn remarried. Upton filed an action against Van Dorn in
Due process requires that forum court have a substantive the Philippines, asking for an accounting of certain alleged
contact w/ the relationship w/c it will decide won to conjugal properties.
dissolve.
HELD: The divorce decree is valid and binding upon Upton.
Hague Convention Relating to Divorce & Separation: The Even if divorce is not valid in the Philippines for being
granting of divorce or separation must comply w/ the contrary to public policy, only Philippine nationals are
national law of spouses & the law of the place where the covered by the policy against absolute divorces. Aliens may
application for divorce is made. obtain divorces abroad, which may be recognized in the
Philippines provided valid according to their national law.
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. Pilapil vs. Ibay Somera
(1989)
Grounds for divorce are dictated by lex fori. Thus, many FACTS: Pilapil and Geiling were married in Germany, but
states refuse to recognize foreign grounds for divorce were later divorced. A few months later, Geiling filed a
unless it corresponds w/ a ground justified by forum law. complaint for adultery which was dismissed; it was refiled
This is followed whether the traditional or policy centered by the fiscal.
choice of law approach is used.
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
1. Divorce decrees obtained by the complaint. Because of the divorce decree, Geiling is no
Filipinos longer the husband of Pilapil; hence he had no more legal
standing to commence the adultery case (no longer an
Divorce decrees obtained abroad have no validity, not offended “spouse”).
recognized in Philippine jurisdiction.

BUT a marriage b/w a Filipino & a foreigner is susceptible Quita vs. Court of Appeals
to divorce if the divorce was validly obtained by the alien (1998)
spouse (Art 26 par 2). FACTS: Quita and Padlan were married in the Philippines,
but Quita filed for divorce in California which was granted.
Effects: She remarried twice after the divorce. Upon Padlan’s death,
1. alien is capacitated to remarry Quita made claims upon his estate as the surviving spouse
2. Filipino spouse shall likewise have the capacity to and heir of Padlan, alleging that since Padlan was a Filipino
remarry under Philippine law citizen, he remained married to her in spite of the divorce
decree.
Effect of Provision (Art 26): partial recognition in the Phil of
absolute divorce. HELD: Quita’s right to inherit from Padlan depends on her
o note: Divorce should be obtained only by alien citizenship at the time the divorce was decreed. If she was
spouse. Otherwise, Art 26 is inapplicable. no longer a Filipino citizen at the time of their divorce, the
divorce would be valid as to her and will be recognized in
o Provision is to remedy the uneven status of the Philippines, and she would lose her right to inherit.
Filipino nationals whose alien spouses obtained
divorce abroad & remarried while the Filipino
spouse remained married to them in eyes of  Tenchavez: 2 Filipinos, divorced abroad – not
Philippine law. recognized in the Philippines (Art. 15 CC,
nationality principle)

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 Van Dorn: 1 Filipino, 1 foreigner, divorced abroad Note that in either traditional or policy-centered
– recognized (Art. 15 CC, estoppel) approaches, lex fori is not used; recall that lex fori can be
 Pilapil: 1 Filipino, 1 foreigner – recognized used in divorce.
(nationality principle)
Both lex loci celebrationis and law of marital domicile can
________________
provide jurisdictional basis, but only one can be a choice-
of-law in the determination of the annulment decree.
2. Validity of Foreign Divorce between
Which states can claim adequate jurisdictional basis to hear
Foreigners
a conflicts annulment or nullity case?
Hague Convention on Recognition of Divorce & Legal a) state where marriage was celebrated
Separation: b) place of marital domicile

A foreign divorce will be recognized in all contracting states Wheaton vs. Wheaton: Even a court which acquires
if at the date of institution of proceedings: personal JD over parties can grant an annulment case (US
case).
a) Respondent or petitioner had his habitual
residence there, or

b) Both spouses were nationals of this state, or Sample conflicts Annulment Case
o M&F, domiciliaries of STATE A, both 18
c) If only the petitioner was a national, he should years old
have his habitual residence there
o marry in STATE B w/out knowledge of
their parents
US Full Faith & Credit Clause of Constitution: A sister
o suit for annulment was brought in
state has the duty to recognize a divorce pronounced in a
STATE C (place of M’s residence)
sister state, when both spouses are domiciled there.
State C can exercise JD over the case but what
If only the plaintiff is domiciled there: Other conditions (i.e.
is the governing law?
service of process to defendant) must be fulfilled
 Traditional choice-of-Law rules: will find
Effect of Divorce Rendered by a Foreign Country: not
sufficient ground for the challenge
covered by Full faith & credit clause
If the lex loci celebrationis
o but would be recognized under the same (STATE B) requires parental consent for
circumstance that a sister state’s divorce decree is a valid marriage
given recognition.
 Most Significant Relationship Approach: will
paramount consideration: jurisdiction of foreign court not yield a ground for annulment.
based on parties’ domicile. State C can conclude that since law of
STATE A (state of marital domicile)
Philippine Law on Recognition of Foreign Divorce Decree: gives people their age full capacity to
No provision on recognition of divorce decree b/w non- marry, no ground for annulment
Filipinos;
o but such will be recognized under international The Choice of Law rule of STATE C will be
comity, provided it does not violate a strongly held irrelevant
policy of the Philippines

C. Annulment and Declaration of Nullity D. Parental Relations

Effect: Affects status & domestic relations of parties. What law determines legitimacy of a child? Personal law of
parents - either domicile or nationality.
Distinction from Divorce
Most countries: father’s personal law
Divorce Annulment and
German law: law of head of family
Nullity
Law on parental relations include:
The ground occurs Based on defects
o Paternity
after marriage present at time of
o Filiation
celebration celebration
What law governs legitimacy of child in the Philippines?
National law of the parents.
Grounds for Annulment & Nullity:
If parents are of different nationality: national law of father
o States w/ traditional choice-of-law approach: is controlling.
follow the lex loci celebrationis
In the PHILIPPINES:
o States w/ policy-centered approach: follow the law
of state of marital domicile (considered to have
o Personal law of the child is the national law of the
the most significant interest in status of persons)
father if the child is legitimate or legitimated.
In both approaches, lex fori (which is crucial in divorce)
o Personal law of the child is the national law of the
does not play substantial role because the action turns on
mother if the child is illegitimate.
the validity of the marriage.
o Legitimacy of the child determined by the national
law of the father if both parents are not Filipino.

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

In the UNITED STATES: The continuous movement of people in & out of countries
as per Second Restatement On Legitimacy of the American should also be factored in.
Law Institute
Can an alien adopt a child in the Philippines?
o Child is legitimate if this is his status under the General Rule: not allowed
local law where the parent is domiciled when the Reason: Different family orientation, cultures, customs &
child’s legitimacy is claimed OR when the parent traditions could pose problems of adaptation for child.
acknowledged the child as his own.
Exceptions:
Parental Authority over the Child o Art 184. Aliens who have some relationship with
-from concept of patria potestas of Roman law the child by consanguinity or affinity
What law controls? Father’s personal law controls rights & o RA 8552 (Domestic Adoption Act Of 1998)
duties of parents & children.
These two introduced significant changes in adoption law.
o Art. 211 FC: Reference to father’s personal law
may result in joint exercise of parental authority
Change Pertinent to Conflict Law
o Art. 176 FC: Personal law could grant parental
authority to mother of illegitimate children
1) Aliens who have resided in the Philippines for 3
years prior to the date of filing the application for
Scope of Parental Authority:
adoption, and maintains residency until decree of
adoption is granted QUALIFIED TO ADOPT
1) care & rearing

2) action a parent may file against another for child

2) Other requirements:
custody
a) certification of legal capacity
b) certification that the State law would
3) requirements for parental consent of child’s
allow entry of the adoptee as an adopted
marriage
child of the adopter.

These other requirements may be waived if the adoptee is

E. Adoption
related by consanguinity or affinity to the
o adopter, or
Definition: The act by which relations of paternity &
o his/ her spouse as specified by law.
affiliation as legally existing b/w persons not so related by
nature.
RA 8043:
Before this, adoption of Filipino children by foreigners was
It is a judicial act w/c creates b/w 2 persons a relationship
done pursuant to Rules & Regulations on Foreign Adoption
similar to that w/c results from legitimate paternity &
& bilateral agreements.
affiliation.
RA 8043 regulate the adoption of Filipino children by
Early societies considered it as a means of perpetuating a
o aliens, or
house or cult threatened by extinction.
o Filipino citizens permanently residing abroad.
Original purpose: solace for childless or people who lost
RA 8043 was passed in compliance with our treaty
children
obligation as a signatory to the Hague Convention on
Protection of Children & Cooperation In Respect of
Recent time: broader, more humane aim
Intercountry Adoption.
Social & moral purpose: extend protection of society (in the
Convention pursues modern concept of adoption: After
person of adopter) to the orphan.
possibilities of adoption for placement of child within state
Thus, persons eligible to adopt expanded
of origin have been exhausted, intercountry adoptions may
be placed in the best interest of the child.
What law governs? lex domicilii
The adoption process affects status of parties, necessarily
governed by lex domicilii.
Republic of the Philippines vs. CA
(1993)
What if prospective adoptive parent is domiciled in one FACTS: Hughes is married to Lenita, a Filipina who was
state & the child is domiciled in another? Twin problems
later naturalized as an American citizen. They filed a
of jurisdiction and choice-of-law.
petition to adopt the 3 nephews and niece of Lenita, which
was granted.
o If the main object of adoption is the welfare of the
child, the personal law of the child is the best
HELD: Hughes is not qualified to adopt since he does not
choice-of-law to govern his rights
fall under the exceptions in Art. 184 of the Family Code.
While Lenita, as a former Filipino, is qualified to adopt
o But the personal law of the child cannot be
under that provision, the adoption decree still cannot be
successfully used to invoke jurisdiction if his
granted because of the requirement in Art. 185 that
domicile is merely constructive or if he is a citizen
spouses must jointly adopt. They cannot do this in CAB
of a state but he doesn’t reside there.
because Hughes is not qualified under the law.
Child’s personal law as basis for exercise of jurisdiction
weakened in situations where child’s domicile is:
Effects Of Adoption
o merely constructive, or
o if he is a citizen of a state but he doesn’t reside
What law governs rights of adopted child & other effects of
there (there is little basis for court to protect child
legal adption? (law that governed the creation of adoption)
interest competently)

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

The connecting factor is the immovable itself and not the

2 different legal orders depending on which law governed parties concerned.
the creation of adoption:
Movables: not necessarily governed by the lex situs; its
1) If Personal law of adopter applied—same law transfer may be controlled by the a) lex domicilii, b) lex
governs effects of adoption. situs, or c) lex loci actus (the proper law of transfer).

2) If personal law of child applied—such law will Lex domicilii: the rights over the movables are governed by
cease to regulate the resulting parent-child the law of the owner’s domicile.
relations; it will yield to the personal law of
adopting parents. Lex situs: the state where the property is situated has the
sole power to decide the validity and effects of the transfer
Philippine courts: of property. Also, the parties’ legitimate expectations are
o Adoption relates to a civil rights of adopted protected. The rationale for this is that being physically
child part of the country, it should be subject to the laws
o Does not effect changes in political rights, thereof. The situs is the place most closely and significantly
including eligibility to acquire adopter’s related to the issue in question.
citizenship
Alternatives to lex domicilii and lex situs:
In the Philippines, principles of enforcement & recognition
of a foreign judgment governs, because the decree a) Lex loci actus: law of the place where the
granting an adoption is in the form of a foreign judgment. transaction was completed

b) the proper law of the forum: law of the state

Uggi Lindamand Therkelsen vs. Republic which has the most real connection with the
(1964) transfer
FACTS: Therkelsen (a German) and his wife Erlinda (a
Filipino), filed a petition to adopt Erlinda’s natural child. In the Philippines, real and personal property are “subject
The application was denied on the ground that an alien to the law of the country where it is situated” (Art. 16 CC).
cannot adopt a Filipino unless the adoption would make the a problem regarding classification will arise only when the
Filipino minor a citizen of the alien’s country. property is located in a foreign country which has a law
that distinguishes between real and personal property.
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 For real property, there is very little room for choice of law,
stated ground would be to impose a further requisite on because of the emphasis on lex situs.
adoptions by aliens beyond those required by law. The
citizenship of the adopter is a matter political, not civil in Why?
nature, and the ways in which it should be conferred lay 1) Property physically a part of the particular state,
outside the ambit of the Civil Code. and that state can exercise JD over it (traditional
approach)
2) There is need for reliable records (to protect the
Ng Hian vs. Collector of Customs sanctity of records)
(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 B. Capacity to Transfer or Acquire Property
entry into the Philippines.
This is governed by the law of the place where the
HELD: Ng Hian may enter the Philippines by virtue of being property is located.
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 Llantino vs. Co Liong Chong
with his wife minor children legally adopted by him in (1990)
China, where it is shown that the adoption was bona fide, FACTS: The Llantinos leased real property to Chong, a
and that the children have lived as members of his family Chinese national (but subsequently naturalized as a
and have been supported by him for several years. Filipino), for 60 years. The Llantinos filed an action to quiet
title, claiming that the lease contract was invalid for
circumventing the constitutional prohibition on the
acquisition of land by aliens.
XIII. Choice of Law in Property
HELD: The lease contract was valid, and Chong had the
right to hold by lease the property involved although at the
A. The Controlling Law time of execution of the contract, he was still a Chinese
national. In CAB there was no option to buy the leased
The first issue to resolve in conflicts cases involving property in favor of Chong. There is nothing in the record
property is whether it is a movable or an immovable, to indicate any scheme to circumvent the constitutional
because upon this determination will depend the controlling prohibition.
legal system.
Aliens are not completely excluded by the Constitution from
Immovables: regulated by lex situs; underlying this is the use of lands for residential purposes. Since their residence
characterization of immovable property as an isolated in the Philippines is temporary, they may be granted
object of rights so that the interests of various persons are temporary rights, such as a lease contract which is not
determined by the law of the place where the land is forbidden in the Constitution. The only instance where a
situated. lease contract may be considered invalid is where there are

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

circumstances attendant to its execution which are used as Under a policy-centered approach, the forum court is not
a scheme to circumvent the constitutional prohibition. 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.
Cheesman vs. IAC
(1991) Also, when the issue involves considerations other than the
FACTS: Thomas Cheesman (an American) was married to a validity and effect of the transfer itself, the courts may look
Filipina, Criselda. The spouses later separated; but Thomas to the law of another state which has a real interest in
brought this action to annul the sale of real property made applying its law.
by Criselda in favor of Padilla. He alleged that the sale is
void for lack of his consent. The property sold was bought Rudow vs. Fogel: since the issue did not relate to land title
by Criselda using her personal funds, and was registered in but to whether the conveyance would result in a
her name only. constructive trust among family members, the law
applicable is the law of the domicile of the trustor and
HELD: The sale was valid. He has no capacity to question trustee instead of the lex situs of the property.
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 E. Situs of Certain Properties
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 1. Situs of Personal Property for Tax
land, which is not granted to him under the Constitution. Purposes

The maxim mobilia sequuntur personam cannot be applied

C. Extrinsic and Intrinsic Validity of to limit the right of the state to tax property within its JD.
Conveyances It yields to established facts of legal ownership, actual
presence, and control elsewhere, and cannot be applied if
The lex situs law applies to the following: it would result in inescapable and patent injustice.

1) formalities of a contract to convey property

2) the essential validity of the transfer (unless the lex 2. Situs of Money
intentionis is clearly established)
Leon vs. Manufacturers Life Insurance: having been
3) the effects of the conveyance or properties endorsed in an annuity in Canada under a contract
executed in that country, Canada was the situs of the
D. Exceptions to the Lex Situs Rule money, hence the probate court of Manila has no JD over
the funds.
3 Exceptions to the Lex Situs rule:

1) where the transaction does not affect transfer of 3. Situs of Debts

title to or ownership of the land (proper law: lex
intentionis or lex voluntatis) 2 Kinds of Movable Property:

1) choses in possession – embraces all types of

Liljedahl vs. Glassgow tangible physical objects
(1921)
FACTS: Bailey secured a debt payable in Iowa to Liljedahl; 2) choses in action – refers to intangible objects
as security, he mortgaged his land in Colorado. Bailey sold
this land to Glassgow, with the provision in the deed of sale a) mere rights of actions
that the grantee agrees to pay the mortgagee. Glassgow b) rights represented by a document
sold the land to a third party. Under Iowa law, Glassgow (capable of delivery and susceptible to
became bound to pay the mortgage, but not under negotiation as a separate legal entity)
Colorado law.

HELD: Iowa law should apply, and Glassgow should pay Harris vs. Balk
Liljedahl. Instruments of conveyance, as they relate (1905)
primarily to title, are to be construed according to the law FACTS: Harris and Balk are both North Carolina
of the situs. But personal covenants or agreements in domiciliaries. Harris owed Balk a sum of money. When he
instruments of conveyance will be given effect according to was in Baltimore he was served a writ of garnishment, it
the law of the place where the same is executed and to be appearing that Balk has a debtor there. He paid pursuant
performed. 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.
2) in contracts where real property is offered by way
of a security for the performance of an obligation HELD: The attachment of Harris’ debt is valid, and the
such as loan, where the security is merely an North Carolina court should give credit to the Maryland
accessory contract (the principal contract is judgment. The obligation of the debtor to pay his debt
governed by the rules on ordinary contract, while clings to and accompanies him wherever he goes. He is as
the accessory contract on the land is governed by much bound to pay his debt in a foreign state when therein
the rule of lex situs) sued upon his obligation by his creditor, as he was in the
state where the debt was contracted.
3) testate or intestate succession and capacity to
succeed, which are governed by the national law
of the decedent Prof. Beale: this decision did injustice to the creditor, as he
has no power to fix the personal presence of his debtor at

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

one place or another. It is unjust to submit the creditor’s

claim to the accident of the debtor’s presence in one state Emerald Garment Mfg. vs. CA
or another. (1995)
FACTS: H. D. Lee Co., a foreign corporation, filed a petition
for cancellation of registration of the trademark “Stylistic
4. Situs of Corporate Shares of Stocks Mr. Lee” used on items of clothing by Emerald Garments,
alleging that it so closely resembled H. D. Lee’s trademark
Under the Corporation Code (Sec. 63), shares of stock are as to cause confusion, mistake and deception on the public
personal property and may be transferred by delivery of as to the origin of the goods.
the certificate or certificates indorsed by the owner or his
attorney in fact. But such transfer shall not be valid until HELD: A foreign corporation may have the capacity to sue
recorded in the books of the corporation in the manner for infringement irrespective of lack of business activity in
provided. 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
CIR vs. Anglo California National Bank the xxx writ will depend on actual use of their trademarks
(1960) in the Philippines.
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 XIV. Choice of Law in Contracts
shares of stock. The sales were conducted in SF, California,
and payments were made there. Contract: meeting of the minds between 2 persons
whereby one binds himself, with respect to the other, to
HELD: CSE not liable for income tax on the capital gains. give something or render some service. Parties are bound
The government cannot impose income taxes on capital not only to those expressly stipulated but also to all the
gains where the sale took place outside its territorial JD. consequences which according to their nature, may be in
Foreign corporations may be levied income taxes only on keeping with good faith, usage and law.
income derived from sources within the Philippines. With As a gen. rule, unless provided by law or in the
respect to capital gains, the place of the sale (which in CAB agreement, a contract is obligatory in whatever form it may
is California) is also the place or source of the capital gain. 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
F. Patents, Trademarks, Trade Name, and the contract
Copyright 2. secure stability in commercial transactions

The Philippines is a party to the Union Convention for the

Protection of Industrial Property; said convention states in A. Contracts Involving a Foreign Element
Art. 8 that a “trade name shall be protected in all the
countries of the Union without the obligation of filing of States, in their municipal laws, have different rules on the
registration, whether or not it forms part of the trade formalities of a contract, the capacity of parties, and the
name.” essential requisites for the intrinsic validity of contracts,
interpretation and the law governing execution. Forum
Western Equipment and Supply Co. vs. Reyes; although court should be aware if there is a law that parties have in
Western equipment has not done business in the mind when they entered into a contract.
Philippines, it has the right to protect its reputation. The
right to the use of the company’s corporate and trade Interpretations of contracts are applied only when the lex
name is a property right which may be asserted against the loci intentionis cannot be ascertained.
whole world.
Unlike family law, contract law does not reflect strong state
RA 8293 (Intellectual Property Code): applicant cannot policies or values.
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 B. Extrinsic Validity of Contracts
property rights to which the Philippines is also a party or
extends reciprocal rights to our nationals by law “shall be Lex loci celebrationis governs the formal or extrinsic validity
entitled to benefits to the extent necessary to give effect to of contracts. A contract is valid as to form if in accordance
any provision of such convention…” 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.
Philips Export vs. CA
(1992) Art 17, CC
HELD: A corporation’s right to use its corporate and trade The forms and solemnities of contracts, wills, and other
name is a property right, a right in rem, which it may public instruments shall be governed by the laws of the
assert and protect against the world in the same manner country in which they are executed.
as it may protect its tangible property, real or personal,
against trespass or conversion. It is regarded, to a certain As to Contracts entered into by cablegram, telex or fax:
extent, as a property right and one which cannot be Art. 1319, CC states that acceptance made by letter or
impaired or defeated by subsequent appropriation by telegram does not bind the offeror except from the time it
another corporation in the same field. came to his knowledge. The contract is presumed to have
been entered into the place where the offer was made.

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

This refers to the law intended by the parties. When the

parties stipulate that the contract be governed by a specific
C. Intrinsic Validity of Contracts law, such will be recognized unless there are cogent
reasons for not doing so e.g. the choice-of-law provision is
Intrinsic validity refers to nature, contents and effects of contrary to a fundamental policy of the forum.
the agreement.
Also construction and interpretation of contracts may be
agreed upon by parties.
Art. 1318, CC: requisites of a contract
a. consent of the contracting parties Art 1306, CC
b. object certain The contracting parties may establish such stipulations,
c. cause of the obligation clauses, terms and conditions as they may deem
convenient, provided that they are not contrary to law,
There are 3 possible laws that will govern intrinsic validity morals, good customs, public order or public policy.
of contracts:
1. law of the place of the making Art, 1370, CC
2. law of the place of performance If the terms of the contract are clear and leave no doubt
3. law intended by the parties upon the intention of the contracting parties, the literal
meaning of the stipulations shall control.

1. Lex Loci Contractus The law looks at the acts of the parties and the
surrounding circumstances which may possibly have
This refers to the law of the place where the contract is exerted some influence upon their actions and then
made. This is the place where the last act is done which is assumes that their intentions are in harmony with such
necessary to bring the binding agreement into being so far acts and circumstances.
as the acts of the parties are concerned.
Parties are presumed to contemplate to enter into a valid
Advantages: contract. The court should apply the law that will sustain
a) relative ease in establishing place of the contract.
contracting

b) in applying it consistently, certainty and D. Capacity to Enter into Contracts

stability are achieved.
The capacity to enter into contracts is governed by the rule
Disadvantage: it will lead to unjust results when the place on status and capacity (personal law). In countries that
of making is entirely incidental or casual and has no follow the nationality principle, the national law prevails
significant relationship with the contract or its performance. (art. 15, CC). In countries that follow the domiciliary
principle, law of their domicile governs.

2. Lex Loci Solutionis

E. Choice of law Issues in Conflicts Contracts
This refers to the law of the place of the performance. All Cases
matters relating to time, place, manner of performance,
sufficiency of performance and valid excuses for non-
performance are determined by lex loci solutionis because 1. Choice of Forum Clause
it is undoubtedly related to the contract in a significant
way. The parties may stipulate on the venue of the suit in case
of litigation concerning the contract.

Macmillan & Bloedel vs. Valderama & Sons It is a general rule that plaintiff has the option to choose
(1964) the venue where the suit is to be filed in action in
FACTS: Valderama & Sons, thru an n agent, entered into a personam. However, a case arising from the contract will
contract for purchase of railroad equipment with Macmillan be litigated only in the forum chosen by the parties if the
in Canada. Valderama failed to get an import license choice of forum clause specifically identifies it as the only
because the Import Control Comm failed to act on his venue.
application. Macmillan suffered damages because it had to
cancel the freight engagement. Sec. 80, Sec. 3, Restatement Second. If the parties have
agreed in writing that an action shall on a controversy be
HELD: Lex loci solutionis applies. The general rule brought only in another state and it is brought in a court of
governing the validity & construction of a contract & the this state, the court will dismiss or stay the action, unless:
rights and liabilities thereunder is that the law of the place
of performance applies. 1.
the court is required by statute to entertain
the action
In case of conflict in determining validity, nature and 2. plaintiff cannot secure effective relief in other
obligation and effect of contract, lex loci solutionis prevails state for reasons other than delay
over lex loci contractus. 3. the other state would substantially be a less
convenient place of trial
The laws of Canada, which is the place of performance, 4. the agreement as to place of action was
should apply. The failure of the Import Control Comm. to obtained by misrepresentation, duress, abuse
act on the application of import license cannot constitute a of economic power or other unconscionable
legal excuse for his failure to perform his obligations under means
the contract. 5. it would be unfair or unreasonable to enforce
the agreement
Compagnie de Commerce vs. Hamburg Amerika
3. Lex Loci Intentionis (1917)

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

FACTS: Compagnie (french) and Hamburg (Germany) FACTS: Puromines and Philip Bros. entered into a contract
entered into a charter party to transport C’s goods from of sale with an arbitration clause. Puromines filed for
Saigon- Europe. Because of the impending war between complaint in RTC, Manila. Philip Bros. filed a MTD on the
France & Germany, the ship went to Manila because Saigon basis of an arbitration clause.
is a French port. C filed for breach of contract. H contested
the jurisdiction of Phil courts to try the case because the HELD: Arbitration clause is valid. Puromines derives its
contract had a clause directing the settlement of disputes right from the bill of lading together with the sales contract
first to a Board of Arbitration in England. & it is bound by the provisions and terms of the bill of
lading and of the arbitration clause incorporated in the
HELD: Phil. courts have jurisdiction. The parties are free to sales contract.
waive the stipulation if they so desired.
The courts will look with favor upon such amicable
Phil courts cannot be ousted of their jurisdiction by the settlements (arbitration) and will only interfere with great
contractual stipulation in the absence of averment and reluctance to anticipate or nullify the action of the
proof that under the law of England (place of contracting), arbitrator.
compliance with, or an offer to comply with such a The Bremen vs. Zapata
stipulation constitutes a condition precedent to the (1972)
institution of judicial proceeding for the enforcement of the FACTS: Zapata, a Houston company, entered into a
contract. contract of towage with Unterweser, a German corp.
Besides, Hamburg appeared and answered without Contract contained a forum selection clause which provides
objecting to the court’s jurisdiction; it also sought that any dispute arising must be treated before London
affirmative relief. courts.

Zapata filed a suit in admiralty against Unterweser for

King Mau vs. Sycip breach of contract and damages in Florida District Court.
(1954) Unterweser filed motion to dismiss for lack of jurisdiction
FACTS: King Mau entered into an agency agreement with citing the forum-selection clause.
the Sycip in New York. King mau was able to sell 1,000
tons of coconut oil. KM brought an action to collect HELD: Florida court has no jurisdiction. As a rule, a forum
commission from the sale. Sycip claimed that the Phil court clause should control absent a strong showing that it
has no jurisdiction as the contract was entered in New should be set aside. Court should enforce the forum clause
York. specifically unless Zapata could clearly show that

HELD: Phil court has jurisdiction. A non-resident may sue a a. enforcement would be unreasonable and unjust or
resident in the courts of this country where the defendant b. that the clause was invalid for such reasons as fraud
may be summoned and his property leviable upon or overreaching or
execution in case of a favorable, if final and executory c. if enforcement would contravene a strong public policy
judgment. of the forum in which suit is brought, whether declared
by a statute or by judicial decision or
It is a personal action for the collection of a sum of money d. if the chosen forum is seriously inconvenient for the
which the CFIs have jurisdiction to try and decide. trial of the action. But if the parties contemplated the
claimed inconvenience, it should not be heard to
render the forum clause unenforceable.

HSBC vs. Sherman The CAB involves a freely negotiated international

(1980) commercial contract between the parties. As noted,
FACTS: HSBC granted Eastern Book Supply an overdraft selection of a London forum was clearly a reasonable effort
secured by the directors of the latter. Eastern failed to pay. to bring vital certainty to this int’l transaction and to
HSBC filed suit in RTC. The defense of the directors is that provide a neutral forum experienced and capable in the
Phil courts have no jurisdiction because in the Guarantee resolution of admiralty litigation.
Agreement, it was provided that Singapore shall have
jurisdiction over all disputes arising therein.
3. Adhesion Contracts
HELD: Phil courts have jurisdiction. The parties did not
stipulate that only the courts of Singapore, to the exclusion Adhesion contract is one that is not negotiated by the
of all the rest, has jurisdiction. Neither did the clause in parties having been drafted by the dominant party and
question operate to divest Phil. courts of jurisdiction. usually embodied in a standardized form. It is called a
contract of adhesion because the participation of 1 party is
Jurisdiction is defined as the right of a State to exercise limited to affixing her signature.
authority over persons and things within its boundaries
subject to certain exceptions. This authority is exclusive
within and throughout the domain of the State. Pan Am World Airways vs. Rapadas
(1992)
FACTS: Rapadas’ samsonite was lost and Pan Am offered
Pangalangan: HSBC case is disappointing—why did the to settle the claim for $160. Rapadas refused and filed an
courts not recognize the choice of forum clause? Courts are action in court. The defense of Pan Am is that the claim is
“turf-conscious”; for PRIL to progress, there is a need for subject to the Notice of baggage Liability Limitations
each country to give up some of its exercise of sovereignty. 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
2. Contracts with Arbitration Clause 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.
Puromines vs CA Court finds the provisions in the plane ticket sufficient to
((1993) govern the limitations of liabilities of the airline for loss of

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

luggage. The passenger, upon receiving his plane ticket,  PAL vs. CA: when there is ambiguity in adhesion
was expected to be vigilant insofar as his luggage is contract, construe against the drafter.
concerned. ________________

PAL vs. CA
(1996)
FACTS: Mejia shipped through PAL 1 microwave oven from
San Francisco to Manila. Upon arrival, she discovered that 4. Special Contracts
the front glass door was broken and the oven could not be
used. Mejia filed action against PAL. PAL denied liability In sales or barter of goods, the law of the place where the
and alleged that it acted in conformity with the Warsaw property is located will govern (lex situs).
Convention.
A simple loan granted by financial institutions is governed
HELD: Although the airway bill is binding between the by the law of the permanent place of business. But if
parties, the liability of Pal is not limited on the provisions of granted by a private individual, it is governed by the law of
the airway bill. While the Warsaw Convention is law in the the place where the loan was obtained.
Philippines, the Philippines being a signatory thereto, it
does not operate as an exclusive enumeration of the In contracts of pledge, chattel mortgage and antichresis,
instances when a carrier shall be liable for breach of the extrinsic and intrinsic validity of the contracts are
contract or as an absolute limit of the extent of liability nor governed by lex situs.
does it preclude the operation of the Civil Code or other
pertinent laws.
Carriage of Goods by Sea
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, American President Lines vs. Klepper
amounted to bad faith and renders unquestionable its (1960)
liability for damages. 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
Specific Instances where court disregarded the adhesion of the COGSA.
contract:
1) when the party is not literate in the language of HELD: COGSA does not apply but the Civil Code. Article
the contract with knowledge of what was intended 1753 of the Civil Code provides that the law of the country
to which the goods are to be transported shall govern the
2) when there is undue advantage made by a liability of the common carrier in case of loss, destruction
dominant party usually a huge corporation or a or deterioration. Under Article 1766, "In all matters not
business monopoly regulated by this Code, the rights and obligations of
common carriers shall be governed by the Code of
3) when there is ambiguity in the adhesion contract, Commerce and by special laws," and in the Civil Code there
it must be resolved contra preferentum and in are provisions that govern said rights and obligations.
favor of the party impugning it Although Section 4 (5) of the Carriage of Goods by Sea Act
states that the carrier shall not be liable in an amount
4) when it is subversive of public policy when the exceeding $500.00 per package unless the value of the
weaker party is imposed upon in dealing with the goods had been declared by the shipper and inserted in the
dominant bargaining party and is reduced to the bill of lading, this is merely suppletory to the provisions of
alternative of taking it or leaving it, completely the Civil Code.
deprived of the opportunity to bargain on equal
footing

Sweet Lines vs. Teves: Petitioners assail the validity of the Contracts for International Air Transportation
tickets issued by Sweet Lines.
The Warsaw Convention and amendments to the same
HELD: The adhesion contract is void. It is not just and regulate and establish uniform rules and regulations on the
proper to expect that the passengers examined their tickets liability of international airline carriers in cases of death,
from the crowded counters esp. if there are a number of injuries of passengers or loss or damage of cargo. The
conditions in fine print. Also, shipping companies, esp. Phils. became a member thereof in 1951.
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 Liabilities of the Carrier:
notice of the fact that these passengers come from low-
income groups and are less literate and who have little or a. in case of death or wounding- carrier’s liability is not
no choice but to avail of petitioner’s vessels. 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
Parties may include any stipulation as long as such probably result, provided that the agent was acting
stipulations do not violate public policy or morals of the within the scope of his employment.
forum. c. In case of loss or damage to baggage - $20/kilo for
checked baggage and $400/passenger for unchecked
Lessons: luggage unless a higher valuation is agreed upon by
 PanAm: not all contracts of adhesion are against the parties
public policy; balancing of interests (airline vs. d. Prescription. Action must be brought within 2 years
passenger) from date of arrival at the destination, or from date

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

which the aircraft ought to have arrived or from the damages against AA in RTC. AA claimed that the issuance
date on which the transportation stopped. of a new ticket created a separate contract of carriage from
e. Venue. Any action for damages may be brought either the one with SA and therefore, under Art. 28, RTC had no
in the court of the jurisdiction over the case against AA.
1. domicile of the carrier
2. principal place of business HELD: RTC had jurisdiction; the new ticket is not
3. place of business where the contract was made considered as separate from the one issued by SA but the
4. place of destination contract of carriage constitutes a single operation. SA & AA
5. Successive Carriers. Each of the successive are members of the IATA and under the general pool
carriers is bound by the rules on the Convention partnership agreement they act as agents of each other in
and shall be deemed to be one of the contracting the issuance of tickets to contracted passengers. When AA
parties insofar as the part of the transportation exchanged the ticket, it entered it in the IATA clearing
which is performed under his supervision. But for house and undertook to transport M. It thereby assumed
goods or baggage, the passenger or consignor the obligation to take the place of the principal carrier
has a right of action against the first carrier and originally designated and constituted itself as an agent of
the consignee who is entitled to receive the same, SA. The number of tickets issued does not detract from the
against the last carrier. They must take action oneness of the contract of carriage as long as the parties
against the carrier who performed the regard the contract as a single operation.
transportation during which the loss, damage or
delay took place.
Chiok vs. China Airlines
FACTS: Chiok purchased ticket from CAL exclusively
Lopez vs. Pan Am endorsable to PAL. While in Hkong, his flight was confirmed
(1965) by both CAL and PAL attaching their respective stickers. On
FACTS: Despite several confirmations, Sen. Lopez and his the day of his flight to Manila, he was informed by a PAL
family failed to get 1st class seats and were constrained to employee that he was not in the computer list so he was
board as tourist passengers of PanAm. CFI, Rizal awarded not allowed to board. Using another CAL ticket, he was
damages in their favor. Pan Am admitted the breach of able to return to Manila. C sued CAL. CAL denied liability as
contract but not the finding of bad faith the carriage was performed by PAL.

HELD: Pan Am acted in bad faith. Pan Am misled the HELD: Cal is liable. The ruling in KLM is applicable. The
Lopezes into believing the reservations were valid and was contract was between CAL and C, with the former
prompted by self-interests in dong the same (precluding endorsing to PAL the HK-Mla segment. This can be treated
the Lopezes to secure other tickets). Also, there was as a single operation under Art. 15, IATA Rules and Art. 1
negligence by its employees that were so gross and of the Warsaw Convention
reckless as to amount to malice and bad faith, e.g.
erroneous cancellation of reservation, not confirming Art. 1, Sec. 3 WC: transportation to be performed by
reinstatement of reservation, confirming reservation even if several successive carriers shall be deemed to be one
EE had knowledge that they were merely waitlisted and not undivided transportation, if it has been regarded by the
notifying Lopezes of the cancellation. parties as a single operation, whether it has been agreed
upon under the form of a single contract or of a series of
contracts.
KLM Royal Dutch vs. CA
(1975) Art. 15 IATA: carriage to be performed by several
FACTS: Mendozas went on a world tour. KLM issued the successive carriers under one ticket, or under a ticket and
tickets for the whole trip. Their coupon for Aer Lingus was any conjunction ticket issued therewith, is regarded as a
marked RQ. Thru KLM’s help, reservations were made in single operation.
the Aer Lingus flight. Upon arrival, only the minors were Pal acted as carrying agent of CAL, thus, CAL cannot evade
allowed to board. Mendoza sued for breach of contract and liability.
for damages bec. of the humiliation they suffered. KLM
denied liability on the basis of Art. 30 of the Warsaw
Convention (successive carriers liability) Santos III vs. Northwest Airlines
(1992)
HELD: Art. 30 does not apply and KLM should be FACTS: Santos bought a roundtrip (SF-Manila-SF) ticket
accountable for the tortious act of Aer Lingus.Art. 30 from NW airlines office in SF. Despite previous
presupposes either an accident or delay and not the confirmations, he was informed that he had no reservation
situation in CAB. Although the tickets provide that KLM’s on his trip. He sued NW for damages in RTC Makati. NW
liability for damages is limited to occurrences in its own filed MTD for lack of jurisdiction.
airlines, this provision was printed in very small letters such
that a magnifying glass is needed to read it. It would be HELD: Phil court has no jurisdiction to hear the case under
unfair to charge Mendozas of automatic knowledge and it is Art. 28 of the Warsaw Convention. This article enumerates
the duty of KLM to inform them of the conditions the places where action must be filed, to wit:
prescribed in the tickets or at least make sure that they 1. Domicile – Minnesota, USA (domicile must be
read them before they accepted the tickets. This it failed to understood in the English sense – place of
do. incorporation)
2. principal place of business – Minnesota
3. place of business where contract is made – San
Francisco
American Airlines vs. CA 4. place of destination – San Francisco (not Manila
(2003) because it was merely an agreed stopping place, SF is
FACTS: Mendoza bought conjunction tickets from still the ultimate place of destination
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 Distinction between KLM and China Air: in KLM, KLM was
prevented by AA’s security officers from boarding until all the only company the passenger dealt with; in Chiok, it
the other passengers have boarded. He sued action for was alleged that Chiok himself (passenger) requested for

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

the PAL booking. It can then be argued that CAL should

not be held liable.
________________ A. Extrinsic Validity of Wills

Filipino national making a will abroad may comply with:

F. The Applicable law in the absence of an o lex nationalii (no express provision) or
Effective Choice o lex loci celebrationis (Art 17, 815)

According to the 2nd Restatement, in the absence of an Pertinent Conflict-of-law rules:

effective choice of law, these factors will be considered in (referring to law of place where will was executed as law
determining the state with which contract has its most governing forms & solemnities of will)
significant relationship Art 17: The forms and solemnities of contracts, wills, and
other public instruments shall be governed by the laws of
1. place of contracting the country in which they are executed.
2. place of negotiating of the contract
3. place of performance When the acts referred to are executed before the
4. situs of the subject matter of the contract diplomatic or consular officials of the Republic of the
5. domicile, residence, nationality, place of incorporation Philippines in a foreign country, the solemnities established
and place of business by Philippine laws shall be observed in their execution.
6. place under whose local law the contract will be most
effective Prohibitive laws concerning persons, their acts or property,
and those which have for their object public order, public
Courts should localize the contract by examining the policy and good customs shall not be rendered ineffective
contacts it has with a state relative to the cogency to the by laws or judgments promulgated, or by determinations or
issue. Example: For contracts involving liability for conventions agreed upon in a foreign country.
destruction of goods in transit, the state of the most
significant relationship is the state of destination. Art 815: When a Filipino is in a foreign country, he is
authorized to make a will in any of the forms established
In the absence of an effective choice of law, courts by the law of the country in which he may be. Such will
applying a policy-centered approach will apply its own law may be probated in the Philippines. (n)
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 What is the proper law for wills written abroad by Filipinos?
the parties. The court should also consider the legitimate (There is no express provision that it is lex nationalii)
expectations of the parties.
Tolentino:
Art 815 follows general rule of lex loci celebrationis.
G. Limitations to Choice of Law
The Civil Code did not mean to invalidate the will of a
1) if the law selected has no connection at all with Filipino made in conformity w/ Phil law.
the transaction or the parties
Aliens making wills outside the Philippines are, under Art
2) if it ousts the jurisdiction which the court has 816 & 817, permitted to follow:
already acquired over the parties and the subject o lex nationalii
matter o lex domicilii
o lex loci celebrationis
3) if it affects a public policy or the matter is heavily
impressed with public interest Article 816. The will of an alien who is abroad produces
effect in the Philippines if made with the formalities
4) in case of confession-of-judgment clauses (waives prescribed by the law of the place in which he resides, or
the debtors right to receive notice or authorizes according to the formalities observed in his country, or in
entry of judgment) 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
XV. Choice of Law in Wills, Succession and accordance with the law of the country of which he is a
Administration of Estates 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)
Will or testament: act whereby a person is permitted, w/
formalities prescribed by law, to determine to a certain It cannot be assumed that the Code places a Filipino citizen
extent the distribution of his estate to take effect after in a worse position than an alien in relation to our law.
his death.
The Code should have expressly stated this considering
It is a disposition made by a competent testator in the form general provision in Art 17.
prescribed by law of property over which he has legal
power of disposition
In re Estate of Johnson
Conflicts of Law Perspective: (1918)
Will: an involuntary transfer of property, because it comes FACTS: Ebba Ingeborg sought to annul the probate of the
into effect only upon death of owner. Death is involuntary, will of his father Emil Johnson, because the resulting
thus making a will is an involuntary transfer of property. intestacy would be favorable to her as a sole heir. She
stresses that Section 636 of the Code Of Civil Procedure
Wills are governed by the “proper law” should not govern the will executed by her father in the
o common law- law of domicile of testator US, because the word “state” in the body of the section is
o civil law- national law of testator not capitalized (thus not referring to a State in the US).

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

HELD: This interpretation is erroneous because the full FACTS: The will of Jennie Rider Babcock was executed in
phrase “another state or country”, means that the section California. Babcock Templeton, being the mother of the
refers to either a State in the US or another country. The three beneficiaries of the will, stressed that the laws of
admission of the will to probate by the CFI of Manila under California should govern the probate since Jennie Rider
Section 636 was therefore correct. Although the CFI Of Babcock acquired domicile in California. William Rider
Manila most likely erred in taking judicial notice of Illinois Babcock opposes this by stressing that her sister never
law when it promulgated that the will was executed in acquired domicile in California as her latest domicile was
conformity with the laws of Illinois, Ebba is now precluded New York.
to raise this issue because the petition to annul the probate
did not allege the difference between Philippine Law and HELD: Her domicile was California, because even though
Illinois law. she later left California for New York, she never intended to
be a New York domiciliary. The trial court was also correct
in admitting the will for probate under Section 636 of the
Extrinsic Validity of Joint Wills Code Of Civil Procedure, because the length of time of her
residence in and eventual death in the Philippines did not
Art 818. Two or more persons cannot make a will jointly or result into a loss of her US citizenship. She never intended
in the same instrument, either for their reciprocal benefit or
to become a Philippine domiciliary, thus making Section
for the benefit of a third person.
618 inapplicable to the will she executed abroad.
Joint wills are prohibited on grounds of public policy,
because:
B. Intrinsic Validity of Wills
1) a will is a purely personal & unilateral act & this
- governed by lex nationalii
is defeated if 2 or more persons make their will in
the same instrument
Art 16: Real property as well as personal property is
subject to the law of the country where it is stipulated.
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 However, intestate and testamentary successions, both
with respect to the order of succession and to the amount
3) it exposes a testator to undue influence & may of successional rights and to the intrinsic validity of
even tempt one of testators to kill the other testamentary provisions, shall be regulated by the national
law of the person whose succession is under consideration,
4) when a will is made jointly or in same instrument, whatever may be the nature of the property and regardless
the more aggressive spouse is liable to dictate the of the country wherein said property may be found. (10a)
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
Miciano vs. Brimo: Miciano, as the administrator of the
estate of Joseph Brimo, filed a petition for the partition of
kill the other.
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.
Joint wills executed by Filipinos in a foreign country
allowing joint wills are expressly invalidated by law.
The Court decided that although Andre Brimo opposed his
brother’s intention to have Philippine laws apply he was not
Joint wills executed in the Philippines by aliens (whose laws
deemed to have contested the legacy, because the choice
do not prohibit it): the law is silent
of law clause in the will was contrary to law. Our laws
apply the lex nationalii of decedent to determine intrinsic
It is suggested that such will should not be probated if it
validity of a will and this law was purposefully disregarded
affects heirs in the Philippines (in accordance with the
by decedent. The Court considered this clause as not
expressed policy in Art 819).
imposed and “shall I no manner prejudice the heir even if
the testator should otherwise provide.
Extrinsic Validity of Holographic Wills
Criticisms on the Miciano vs. Brimo decision:
Art 810: a holographic will is one entirely written, dated
and signed by the hand of the testator himself. It is not
Considering the primacy of giving primacy to the last will
subject to any other form, need not be witnessed and may
and testament of the decedent, the court should have
be made in or out of the Philippines.
respected the wishes of the decedent (i.e. the clause in the
will should not have been annulled) by applying a policy-
centered approach.
Art 816 & 817 are also applicable to holographic wills
Using the most significant relationship approach, Philippine
Merits:
law would govern because Joseph Brimo is a Philippine
o simple
resident, the properties are in here, and he made the will
o convenient
here… the only contact with Turkey is the fact of his
o does not require notarization
nationality.
o guarantees absolute secrecy
Under the escape device of “disingenuous
Demerits:
characterization”, the same result could have resulted
o peculiarly dangerous
without flouting testator’s will. The court could have
o an invitation to forgery
characterized the main issue as one of property and not of
o short statements can confuse
succession, thus making Philippine law the governing law
handwriting experts
as the lex rei sitae.

Babcock Templeton vs. Rider Babcock

Cayetano vs. Leonidas
(1928)

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

(1984)
FACTS: Upon the death of Adoracion Campos, her father Article 830. No will shall be revoked except in the following
Hermogenes sought to be declared as owner of the entire cases:
estate as the only compulsory heir. On the other hand, 1) By implication of law; or
Nenita Paguia (one of Adoracion’s sisters) sought the
reprobate of the will executed by Adoracion in the US. 2) By some will, codicil, or other writing executed as
When the trial court allowed probate of the will in the provided in case of wills; or
Philippines, Hermogenes raised in issue that the allowance
of the will to probate divested him of his legitime, because 3) By burning, tearing, canceling, or obliterating the
the will preterited him. will with the intention of revoking it, by the
testator himself, or by some other person in his
HELD: Since the governing law with respect to the amount
presence, and by his express direction. If burned,
of successional rights is the national law of the decedent,
torn, cancelled, or obliterated by some other
the governing law of Adoracion’s will is Pennsylvania law.
person, without the express direction of the
And since Pennsylvania law does not have a system of
testator, the will may still be established, and the
legitimes, Hermogenes is therefore not preterited. Although
estate distributed in accordance therewith, if its
the Philippines adopt a system of legitimes as a matter of
contents, and due execution, and the fact of its
public policy, such policy does not extend to the
unauthorized destruction, cancellation, or
successional rights of foreigners.
obliteration are established according to the Rules
of Court. (n)

General Rule: the probate court can only rule on: Problem: Testator revokes his will in then domicile State A
1) extrinsic validity and dies in his new domicile State B. If his revocation
2) due execution under the laws of State A is invalid under State B laws,
3) testamentary capacity what law will apply?
4) compliance with requisites/solemnities prescribed
by law Common law practice: law of the domicile at the time of
__________________ death.

Philippine law: law of the place of revocation.

C. Interpretation of Wills

Interpretation of wills is to be governed by lex nationalii.

Notice that there is a difference in the applicable law
If terms are clear & unambiguous: lex intentionis governing revocation of wills by a person domiciled in the
Philippines and a non-domiciliary:
When there are ambiguous provisions: intention of party  For domiciliary: the governing law is the law of
may be inferred by referring to context of the will & the the place where the revocation was made (lex
testator’s acts. actus)
 For non-domiciliary: the governing law is the law
Article 1371. In order to judge the intention of the where the will was executed (lex loci
contracting parties, their contemporaneous and subsequent celebrationis)
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 E. Probate
the nature and object of the contract. (1286)
Probate: an adjudication that the last will and testament of
Presence of ambiguous provisions a person was executed with all the formalities required by
Presumptions to help interpretation: law
1) The interpretations of such should be determined in
accordance w/ laws & customs of that state most probably As part of procedural law, probate is governed by the law
in mind of testator of the forum.

2) In case a will admits of different dispositions, the But the forum will still have to look at the foreign law
interpretation by which the disposition is to be operative concerning compliance with extrinsic validity.
shall be preferred

Article 788. If a testamentary disposition admits of different Rule 76 Section 9 Grounds for disallowing will.: The will
interpretations, in case of doubt, that interpretation by shall be disallowed in any of the following cases;
which the disposition is to be operative shall be preferred.
(n) (a) If not executed and attested as required by law;

D. Revocation (b) If the testator was insane, or otherwise mentally

incapable to make a will, at the time of its execution;
Article 829. A revocation done outside the Philippines, by a
person who does not have his domicile in this country, is (c) If it was executed under duress, or the influence of
valid when it is done according to the law of the place fear, or threats;
where the will was made, or according to the law of the
place in which the testator had his domicile at the time; (d) If it was procured by undue and improper pressure and
and if the revocation takes place in this country, when it is influence, on the part of the beneficiary, or of some other
in accordance with the provisions of this Code. (n) person for his benefit;
Revocation:
1. lex loci celebrationis (e) If the signature of the testator was procured by fraud
2. lex domicilii or trick, and he did not intend that the instrument should
3. according to our Code be his will at the time of fixing his signature thereto.

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

per New York law which must be the law that should
Rule 77 govern the wills as they were executed in New York. In
Section 1. Will proved outside Philippines may be allowed deciding the matter, the necessary evidence that should be
here. Wills proved and allowed in a foreign country, submitted are:
according to the laws of such country, may be allowed,
(1) the due execution of the will in accordance with
filed, and recorded by the proper Court of First Instance in
the foreign laws
the Philippines.
(2) the testator has his domicile in the foreign country
and not in the Philippines
Testamentary capacity is the capacity to comprehend the
(3) the will has been admitted to probate in such
nature of the transaction in which the testator is engaged
country
at the time, to recollect the property to be disposed of and
(4) the fact that the foreign tribunal is a probate court
the persons who would naturally be supposed to have
(5) the laws of a foreign country on procedure and
claims upon the testator, and to comprehend the manner
allowance of wills.
in which the instrument will distribute his property among
Except for the first and last requirements, the petitioner
the objects of his bounty. (Bugnao vs. Ubag, 014 SCRA
submitted all the needed evidence. Salud failed to submit
163)
the 1st and 5th requirement. While the probate of a will is a
special proceeding wherein courts should relax the rules on
Rule 77 Section 1 + testamentary capacity - will made in a
evidence, the goal is to receive the best evidence of which
foreign country allowed here in the Philippines !!! (see
the matter is susceptible before a purported will is
Article 816)
probated or denied probate. Not only that, Salud also failed
to notify the heirs of Jose of the proceedings.
A will allowed in a foreign country in accordance with the
law of that country may be allowed in the Philippines… no
HELD: The rule that the court having jurisdiction over the
need to prove testamentary capacity and due execution
reprobate of a will shall "cause notice thereof to be given
(see Article 817).
as in case of an original will presented for allowance"
means that with regard to notices, the will probated abroad
Common Law conflicts rules…
should be treated as if it were an "original will" or a will
1) If the will is valid under the laws of the last
that is presented for probate for the first time. Accordingly,
domicile, the will is valid everywhere with respect
compliance with Sections 3 and 4 of Rule 76, which require
to movable property
publication and notice by mail or personally to the "known
heirs, legatees, and devisees of the testator resident in the
2) but the probate in the last domicile does not
Philippines" and to the executor are required.
affect real property, as these will be governed by
lex rei sitae
F. Administration of Estates
Suntay vs. Suntay
Duties of the administrator:
(1954)
FACTS: Natividad Billian sought to have the will (executed
1) to manage and settle the debts of the decedent
in the Philippines) of his husband Jose Suntay probated.
(primary purpose)
The trial court denied probate because during the course of
the proceedings, the will was lost. Later, her son Silvino 2) to distribute the residuum of the estate to the
filed a petition for the probate of a will allegedly executed heirs (secondary purpose)
by Suntay in China. The trial court again denied probate,
and was correct in deciding that way, because there was
no proof that: When the will has been proved or allowed, it is the duty of
1. the municipal district court of Amoy, China, is a the probate court to issue letters testamentary thereon to
probate court the person so named in the will upon the latter’s
2. there was a law of China on procedure in the application.
probate or allowance of wills
3. the legal requirements for the execution of a valid When there is no will, the court may appoint an
will in China in 1931 were satisfied administrator.
4. the order of the municipal district court of Amoy
purports to probate the will Two kinds of administrators:

HELD: In the absence of proof that the municipal district a) domiciliary -power over assets located in state
court of Amoy is a probate court and on the Chinese law of
procedure in probate matters, it may be presumed that the b) ancillary- appointed by a foreign court to look
proceedings in the matter of probating or allowing a will in after the properties located in such foreign state
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 Tayag vs. Benguet Consolidated Inc.
notification of the other heirs, this petition must fall. (1968)
FACTS: BCI stocks owned by the decedent Idonah Slade
Perkins were in the possession of the domiciliary
Vda. De Perez vs. Tolete administrator County Trust Company Of New York. Later,
(1994) the CFI Of Manila named Renato Tayag as the ancillary
FACTS: Each of the Cunanan spouses (Jose and Evelyn) administrator. When Tayag obtained a court order for the
executed a will in New York containing similar provisions on County Trust Company to deposit the stocks to him, BCI
the presumption of survivorship. When the entire family appealed.
perished in a fire that gutted their home in New York,
Rafael as the named trustee in the will of Jose filed HELD: The appeal must fail. BCI is a Philippine corporation
separate proceedings in New York for the probate of the owing full allegiance and subject to the unrestricted
wills of his brother and sister-in-law. Later, Salud Perez jurisdiction of local courts. Its shares of stock cannot
(mother of Evelyn) filed a petition for reprobate in Bulacan. therefore be considered in any wise as immune from lawful
Rafael opposed by arguing that Salud was not an heir as court orders. The situs of shares of stock is the place of
domicile of the corporation. And since the power of the

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ancillary administrator over shares located here is beyond

question, it follows that the stocks should be in the
possession of Tayag. Policies:
1) deter undesirable or wrongful conduct
2) rectify consequences – by distributing the losses
Succession and administration of estates are governed by  similarity between family conflicts cases and torts
different laws: conflicts cases: strongly held policies of the state
 succession – national law
 administration – situs of property (territorial/JDal) 3 concerns in torts:
______________ 1) achieving just and reasonable results (consider
the interest of both parties
2) societal interest
G. Trusts 3) shielding defendant from unnecessary surprise

Trust: a right of property, real or personal, held by one Distinguish: “upholding the legitimate expectations of
party for the benefit of the other. parties” vs. “shielding defendant from unnecessary
surprise” – the first is used in contracts cases, the second
The trust contains an express choice-of-law provision. is used in torts cases.

The courts usually apply that law in keeping with the policy Why is the “place of the tort (locus delicti)” difficult to
of carrying out the intent of the creator of the trust. determine? Different concepts of locus delicti:
1) civil law: place of tortious conduct
When the trust does not contain an express choice-of-law 2) common law: place of injury/vested rights theory
provision, the Court will deem controlling the law that will  to determine lex loci delicti: determine whether
sustain the validity of the trust. you are dealing with a civil law or common law
country
Choices-of-law for testamentary trusts: ________________

a) rules governing the intrinsic and extrinsic validity B. Lex loci delicti commissi
of wills
Lex loci delicti commissi: the law of the place where the
b) lex rei sitae with respect to the property alleged tort was committed. It determines the tort liability
in matters affecting conduct and safety.

Difficulty has been encountered in determining the locus

XVI. Choice of Law in Torts and Crimes delicti where the liability producing conduct happens in one
state but the injuries are sustained in another.

Tort: derived from the French word torquere or “to twist”. Common law concept of place of wrong: place where the
It is an act or omission producing an injury to another last event necessary to make an actor liable for an alleged
without any previous existing lawful relation of which the tort occurs. It adheres to the vested rights theory, so that
act or omission may be said to be a natural outgrowth or if harm does not take place then the tort is not completed.
incident. Negligence or omission is not in itself actionable unless it
results in injury to another.

A. Policies behind Conflicts Tort Law Civil law concept of place of wrong: place where the
tortious conduct was committed. This is premised on the
2 Important Policies underlying substantive tort law: principle that the legality or illegality of a person’s act
should be determined by the law of the state where he is
1) to deter socially undesirable or wrongful conduct at the time he does such act.

2) to rectify the consequences of the tortuous act by The traditional view (whether the situs of the tort is the
distributing the losses that result from accident place of conduct or injury) is that an actor liable by the lex
and products liability loci delicti is liable everywhere. Damages arising from torts
committed in one state are actionable in another state.
In view of these, the policy behind tort law will most likely
be a strongly held policy of the state and as result, that Alabama Railroad vs. Carrol: the negligent infliction of an
state will not easily displace its own law with the law of injury in one state creates a right of action there, which
another state. may be enforced in any other state or country the comity
of which admits of it.
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 Loucks vs. Standard Oil Co.
from subjecting a party to the law of more than one state. (1913)
FACTS: Loucks, a NY resident, was run down and killed by
Conflicts torts cases arise: Standard Oil employees in an accident while engaged in its
business. Under Massachusetts law, the corporation is
1) when the tortious conduct and place of resulting liable for the death of a person where the death was
injury are different and one state imposes higher caused by the negligence of the corporation’s employees
standards than the other state while engaged in its business. However, under NY law, the
corporation is liable for such death where the death
2) when there are different product liability laws and occurred in NY. The action to recover damages was filed in
varying judicial interpretations of the extent of NY.
liability
HELD: Massachusetts law may be applied. A tort committed
in one state creates a right of action that may be sued

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upon in another unless public policy forbids. A foreign Problem with Interest Analysis approach: are the policies of
statute is not law in the state, but it gives rise to an the law always discernible? Sometimes we merely guess
obligation, which, if transitory, follows the person and may the policies of the state (because unarticulated in the law).
be enforced wherever the person may be found. ________________

C. Modern Theories on Foreign Tort Liability 3. Cavers’ Principle of Preference

This principle deals with rules that sanction some kinds of

1. The Most Significant Relationship conduct engaged in by a defendant in one state and
extends the benefit of this higher standard of conduct and
This theory considers the state’s contacts with the financial protection to the plaintiff even if the state of injury
occurrence and the parties. does not create analogous liabilities.

Two-fold purpose: Pangalangan: Since both states consider that a tort has
1) identify the interested state been committed, the law of the state which places a higher
2) evaluate the relevance of these contacts to the standard of conduct should apply. This is true even if this is
issue in question the place of tortious conduct and not the place of injury.

The significant-relationship approach does not call for a

mechanical counting of factual contacts where strength is Schmidt vs. Driscoll Hotel
drawn in numbers; instead the court localizes the state of (1957)
the most significant relation and assesses the event or FACTS: Schmidt sued Driscoll Hotel for illegally selling
transaction in the light of the relevant policy considerations liquor to Sorensen, who was the driver of a vehicle which
of the interested states and these underlying policies. 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
Saudi Arabian Airlines vs. CA conducted.
(1998)
FACTS: Morada was a flight stewardess of Saudi Airlines. HELD: Minnesota court has jurisdiction, even if the injury
She was involved in an attempted rape case, which led to which followed the illegal sale occurred outside Minnesota.
her conviction of violation of Islamic laws in Saudi. The The Restatement should not be applied where the plaintiff
Prince of Makkah ruled that she was wrongfully convicted. would have no remedy against the offending liquor dealer.
However, she was terminated from her employment by Under the principles of equity and justice, the Minnesota
Saudia. law granting him a remedy should be applied, considering
that all the parties are residents of Minnesota, Driscoll
HELD: The RTC of Manila has JD to try the case, applying Hotel was licensed under Minnesota law, the violation of
the “state of most significant relationship rule.” The Minnesota law occurred there, and the wrongful conduct
following contacts should be considered in using this rule: was completed by Sorensen in Minnesota.
place where the injury occurred, place where the conduct
causing injury occurred, Schmidt illustrates the imposition of liability under a
domicile/residence/nationality/place of business of the substantive rule of tort law that has a strong underlying
corporation, and place where the relationship between the admonitory policy.
parties is centered.

In CAB, the Philippines had the most significant contacts. American Contributions to Conflicts Tort Law
The overall injury occurred in the Philippines, Morada is a
resident and a Filipina national, Saudia is a foreign The determination of whether the law where the tort was
corporation engaged in business here, and the relationship committed or the law of the domicile of the parties is the
of the parties is centered here. controlling law is considered one of the major contributions
of American jurisprudence to international conflicts
2. Interest Analysis thought.

This approach considers the relevant concerns the state Law of the tort: deemed as the proper law in questions
may have in the case and its interest in having its law involving regulation of conduct.
applied on that issue. Law of the domicile of the parties: governs in matters that
relate to loss-distribution or financial protection.
The court should first determine whether there is a true or
false conflict.
In modern approaches, there is a distinction between true
False conflict: only one state has an interest in having its or false conflict.
law applied, and failure to apply the other state’s law would
not impair the policy reflected in that law.  True conflict: both states have an interest in
having their law applied
Apparent conflict: more than one state has an apparent  “maybe true” conflict
interest in applying its law to the case.  false conflict: no choice necessary – the court
should apply the law of the only interested state
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 D. Foreign Tort Claims
true conflict.
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

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tribunal; the right to sue is not confined to the place where

the cause of action arises. Sovereignty as Basis of Jurisdiction

i. Conditions for the enforcement of The sovereignty model has been accepted both to:
tort claims a) justify any exercise of jurisdiction over a
defendant present within the territory, however
a) the foreign tort is based on a civil action and not short (“tag jurisdiction”)
on a crime
b) deny enforcement of a foreign court judgment
b) the foreign tort is not contrary to the public policy over a defendant who was not present within that
of the forum court’s jurisdiction

c) the judicial machinery of the forum is adequate to

satisfy the claim Worldwide Volkswagen Corp. vs. Woodson
(1980)
The defendant in a transnational tort is often sued in a FACTS: The spouses Robinson purchased a car from
foreign court against his will; his consent to be sued is not Seaway Volkswagen in New York. They met an accident in
necessary for the acquisition of jurisdiction by the court. Oklahoma and pinned the blame on the defective design of
Hence, questions as to the legitimacy of the JD and validity the car. They brought a suit against the retailer and
of the decision may arise. distributor in Oklahoma.

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

ii. Products liability of the foreign exercise personal JD over a nonresident defendant only so
manufacturer long as there exist “minimum contacts” between the
defendant and the forum state. The 2 functions of the
Conflicts torts cases arise due to significant differences in concept of minimum contacts is to protect the defendant
the laws of states on the basis and extent of liability for against the burdens of litigating in a distant or inconvenient
defectively manufactured products. forum, and to ensure that the states, through their courts,
do not reach out beyond the limits imposed on them by
their status as coequal sovereigns in a federal system.
Asahi Metal Industry vs. Superior Court of California
(1987) In CAB, there us a total absence of those affiliating
FACTS: Asahi Metal manufactures tire valve assemblies in circumstances that are a necessary predicate to any
Japan and exports them, including to a Taiwanese exercise of state-court JD (no activity whatsoever on
company which, in turn, incorporates them into finished Oklahoma; no sales closed nor services performed there;
tires sold in the US. The driver of a motorcycle, who had an no availment of the privileges and benefits of Oklahoma
accident resulting in injuries to him and death to his law; no solicitation of business there).
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 In Asahi, even if there were minimum contacts, it failed the
constitutional touchstone/test of due process is whether reasonableness test.
the defendant purposefully established “minimum contacts”
in the forum state. And “minimum contacts” must have a Criticism of Asahi: “additional acts” requirement is a
basis in some act by which the defendant purposefully reinvention of the stream of commerce law. The fear is that
avails itself of the privilege of conducting activities within the court might go back to pre-International Shoe
the forum state, thus invoking the benefits and protections standards n JD (requirement of actual presence).
of its laws.
In Worldwide Volkswagen, the only requirements for the
In the CAB, no purposeful availment of the California exercise of JD were minimum contacts and the
market on the part of Asahi. It does not do business in reasonableness test; Asahi did not follow this, and include
California; has no office, agents, employees, or property in an additional requirement (purposeful availment).
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.
iii. The Alien Tort Act

Societe Nationale Industrille Aerospatiale vs. Lee Kui Jak: The Alien Tort Statute granted US district courts original JD
An Aerospatiale helicopter crashed in Brunei, killing a over any civil action by an alien for a tort committed in
passenger who was a Brunei resident. The administrator of violation of the law of nations or a treaty of the US.
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 Hilao vs. Estate of Ferdinand Marcos
for an action for damages against the manufacturer of the (1996)
helicopter, and it would be oppressive for the plaintiffs to FACTS: A class suit was brought against Marcos by parties
continue with the Texas proceedings as Aerospatiale would seeking damages for human-rights abuses committed
not be able to pursue legal proceedings against the against them or their decedents. The Hawaii district court
Malaysian company which operates and services the found for Hilao and ordered a verdict of almost $2 billion in
helicopter. damages. The Estate in its appeal, argues that the Alien
Tort Claims Act does not apply to conduct that occurs
Bier vs. Mines de Potasse: A Dutch market gardener filed abroad, and since the acts complained of all occurred in
an action for damages in a Dutch court against a French the Phils., the court has no JD
mining company. The Dutch court held that it had no JD,
but the French court held that the plaintiff could elect HELD: The court has JD. In a prior appeal it has been held
where to sue (place of damage or place of injurious that subject-matter JD was not inappropriately exercised
conduct). even though the actions xxx occurred outside the US.

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Time, Inc. vs. Reyes

(1971)
Filartiga vs. Pena-Irala FACTS: Villegas and Enrile filed a complaint for damages
(1980) against Time, Inc. upon an alleged libel arising from a
FACTS: Plaintiffs brought an action in the US against Pena- publication of Time Magazine. Plaintiffs filed their action in
Irala for wrongfully causing the death of Dr. Filartiga’s son CFI Rizal. But according to the applicable law, they may file
in Paraguay. the action only in the place of first publication or in the City
of Manila (since they are public officers).
HELD: The US federal court has JD, on the basis of the
Alien Tort Statute. This action is undeniably an action by an HELD: The case should be dismissed for improper venue.
alien, for a tort only, committed in violation of the law of The only alternative allowed to the public official is to
nations. A wrong is recognized as a violation of the law of prosecute in the place where the offending article was
nations where the nations of the world have demonstrated printed and first published; but in the CAB the alternative
that the wrong is of mutual, and not merely several, was not open to plaintiffs since the offending publication
concern. was not printed in the Philippines.

*The concept of accountability, if considered the core of In Time, Inc., if the court had not characterized the issue
the Alien Torts Act (as espoused by the US Justice as jurisdictional, and decided the case from a conflicts tort
Department in Trajano vs Marcos), would be a significant perspective, it could have taken cognizance of the case
setback to the advancement of international law. following the most significant relations approach because
of the significant links between the forum and the parties.

Guinto vs. Marcos

(1986) In ordinary foreign tort, the court acquiring JD must be
FACTS: Guinto and Suarez filed an action for damages either the place of tortious conduct or place of injury. In
against Marcos in California under the Alien Tort Claims Alien tort Statute, US courts may acquire JD even if it is
Act. According to Guinto, Marcos’ act of seizing their film neither the place of tortious conduct nor place of injury.
“100 Days in September” violated their freedom of speech.
“law of nations” (Filartiga): “mutual” concern – nations
HELD: Test to determine when a violation of the law of consider the act to be detrimental to all nations; it is a
nations has occurred – there has been a violation by one or violation of a law of all countries.
more individuals of those standards, rules or customs a)
affecting the relationship between states or between an Guinto: violation of law of nations test—
individual and a foreign state, and b) used by those states 1) the violation affects relationship between states,
for their common good and/or dealings inter se. A violation or an individual and a foreign state
of the First Amendment right of free speech does not rise 2) used by the states for their common good and/or
to the level of such universally recognized rights as to dealings inter se
constitute a violation of the law of nations. _______________

The Alien Tort Statute justifies exercise of court JD over E. Distinguishing between Torts and Crimes
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 Tort Crime
courts and the parties and events nor substantial state
interest in the case other than a general desire for Transitory in character; Local in character; the
compliance with customary international law. That is why hence liability is perpetrator of the
in order for the Alien Tort Act to apply, there is a need to deemed personal to wrong can be sued
establish that the tortious conduct violated an the tortfeasor and only in the state
internationally protected human right. make him amenable to wherein he commits
suit in whatever JD he the crime
is found
iv. Philippine Rule on Foreign Torts
An injury to an An injury to the state
There is no specific statutory law governing the individual who may be where it is committed
enforcement of claims for damages arising form foreign situated in any place
torts. But on the theory of vested rights the victim of a
foreign tort may decide to file the case in the Philippines. Liability is attached to Promulgated to punish
the perpetrator to and reform the
It has been suggested that the English Rule may be indemnify the victim perpetrators and deter
followed, such that the tort committed abroad is actionable for injuries he them and others from
in the country where it was committed and also under sustained violating the law
Philippine law.
F. Lex loci delicti
Two conditions for a case based on a foreign tort to be
filed in the Philippines (English Rule): Under the territorial principle, crimes committed within the
Philippines by all persons, whether Filipino citizens or
1) the wrong must be of such a character that it aliens, are prosecuted and penalized under Philippine law.
would have been actionable if committed in the As a rule, criminal laws of a state are effective only upon
Philippines persons who actually commit the crime within the state’s
territory.
2) the act must not have been justifiable by the law
of the place where it was done The lex loci delicti or the law of the place where the crime
was committed is the controlling law since it determines

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the specific law by which the criminal is to be penalized, the Lawton was not registered in the Philippines; it was a
and designates the state that has the JD to punish him. US vessel.

3 Exceptions to the Territorial rule:

People vs. Wong Cheng
1) First Exception: crimes committed by state (1922)
officials, diplomatic representatives and officials of FACTS: Wong was charged for having illegally smoked
recognized international organizations (based on opium on board an English vessel Changsa while anchored
doctrine of state immunity) in Manila Bay.

HELD: Under the English rule which is applicable here (it is

Wylie vs. Rarang the prevailing theory in the US), to smoke opium within our
(1992) territorial limits, even though aboard a foreign merchant
FACTS: Wylie and Williams are officers of the US Navy ship, is certainly a breach of the public order here
stationed in the Subic Naval base, and are in charge of the established. It causes such drug to produce its pernicious
publication “Plan of the Day.” Rarang filed an action for effects within our territory. It seriously contravenes the
damages against them for libelous statements published in purpose that our Legislature had in mind in enacting the
the POD. repressive statute, and is therefore triable in our courts.

HELD: Wylie and Williams are not immune from the suit.
They are sought to be held answerable for personal torts in US vs. Look Chaw
which the US is not involved; if found liable, they alone (1910)
must satisfy the judgment. The Bases Treaty provision on FACTS: Two sacks of opium were found to be in the control
immunity could not possibly apply in this case, as it is of Look Chaw aboard the Erroll, an English steamship. A
presumed that the laws of the US do not allow the complaint for possession and sale of opium was filed
commission of crimes in the name of official duty. The against him.
general rule is that public officials can be held personally
accountable for acts claimed to have been performed in HELD: Philippine courts have jurisdiction. Although the
connection with official duties where they have acted ultra mere possession of an article of prohibited use in the
vires or where there is showing of bad faith. 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
This immunity for sovereign acts is impliedly waived when as an extension of its own nationality, the same rule does
the foreign state and its officials perform private, not apply when the article, the use of which is prohibited in
commercial or proprietary acts. the Islands, is landed from the vessel upon Philippine soil.

3) Third Exception: crimes which, although

In Rarang, although the publication was part of the duty of committed by Philippine nationals abroad, are
Wylie and Williams, the goal of the publication of the punishable under Philippine law (ex. Art. 2 RPC)
complaint would have been achieved without identifying
Rarang by name.

Liang (Huefeng) vs. People Fowler Cheng Look

(2000) Chaw
FACTS: Liang, a Chinese working at the ADB, was charged
by a fellow worker with grave oral defamation. The lower FLAG US English English
court dismissed the complaint on the ground that Liang is
covered by the immunity provision under the Agreement LOCATION High seas Within RP Within RP
between ADB and the Phil. Government. territorial territorial
waters waters
HELD: Liang is not immune from suit. The immunity under
the Agreement is not absolute, and it only extends to acts CRIME theft Smoking Possession
done in official capacity. Slandering a person could not opium and selling
possibly be covered by the immunity agreement because of opium
our laws do not allow the commission of a crime, such as
defamation, in the name of official duty. RESULT No JD Acquired Acquired
JD JD

2) Second Exception: crimes committed on board a In RP, we follow the French Rule.
foreign vessel even if it is within the territorial
waters of the coastal state XVII. Choice of Law Affecting Corporations and
Other Juridical Entities
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. A. Corporations

A corporation is an artificial being created by operation of

US vs. Fowler law, having the right of succession and the powers,
FACTS: Fowler et al were accused of theft on board the US attributes and properties expressly authorized by law or
vessel Lawton while it was traveling on the high seas. incident to its existence.

HELD: Philippine courts have no jurisdiction over Fowler. Foreign corporation – formed under the laws of a state
Act 400 granting JD to RP courts for crimes and offenses other than the Phils; such laws allowing Filipino citizens
committed on the high seas, apply to ship or water craft and corporations to do business there. It shall have a right
registered or licensed in the Philippines only. In the CAB, to do business here only after obtaining a license and a

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certificate of authority from the appropriate government a) commerce clause – prohibits a state from
agency. imposing conditions on corporations engaged in
interstate commercial activities and provides the
1. Personal Law of a Corporation basis of federal power to regulate interstate
commerce.
The personal law of the corporation is the law of the state
where it is incorporated. If the law creating it does not b) Since it is considered a “person”, once allowed to
authorize it to enter into certain contracts, such contracts enter a state and acquire property, it cannot be
which can be made in other states shall be void despite the discriminated against by domestic corps
express permission given by the other state.
c) Unconstitutional conditions – forbids a state from
requiring the foreign corporation to give up its
ME Gray vs. Insular Lumber Co. constitutional rights either as a prerequisite to
(1939) allowing it to do business or to avoid being
FACTS: Gray, a stockholder of Insular (incorporated in NY) removed from that state
filed an action in CFI to compel Insular to allow him to
examine its books. Sec. 77 of NY Stock Corp Law only gives A foreign corporation, although a person, is not a citizen
the right to stockholders owning 3% of the capital stock of entitled to the privileges given by the state to its individual
the company. Gray does not own the required shares. citizens.

HELD: Gray is not entitled to the right to examine the

books of Insular. Gray is bound by the NY law which only If according to the personal laws of the corporation,
gives him the right to receive from the treasurer of the stockholders are given certain rights, such rights cannot be
corporation a statement of affairs covering a particular diminished nor added upon by the law of the place where
account of all its assets and liabilities. Neither can his rights the corporation does business. This is because such rights
be granted under common law absent a showing that: are already fixed by the corporation.
a. he seeks information for an honest purpose or to ________________
protect his interest as stockholder
b. he exercises right in good faith and for a specific and
honest purpose not merely to satisfy curiosity or for 2. Exceptions to the Rule of
speculative or vexatious purposes. Incorporation Test

Anglo American Theory on Corporations a. Constitutional and Statutory

Restrictions

Bank of Augusta vs. Earle A state may, by legislation, exclude a foreign corp
(1839) altogether, subject to the constitutional limitations, or
FACTS: Bank of A (incorporated in Georgia), thru M’Gran prescribe any conditions it may see fit as a prerequisite to
bought bills from Earle in Alabama. Bills were unpaid so the corporation’s right to do business within its territory.
Bank sued Earle. TC ruled that the Georgian Bank could not
exercise power in Alabama thereby making the contracts 1987 Phil Constitution:
void.
a. regulates exploration, development and utilization
HELD: Bank can exercise its powers in Alabama and the of natural resources such that only 60% Filipino-
contracts are therefore valid. It is well-settled that by the owned corps may be allowed to engage in these
law of the comity of nations, a corp. created by 1 activities
sovereignty is permitted to make contracts in another and b. the nation’s marine wealth and the exclusive
sue in its courts and that the same law of comity prevails in economic zone is reserved exclusively to Filipinos
several States of US including Alabama. Alabama courts c. Congress is empowered to reserve certain areas
have held that a foreign corp may sue in its courts based of investments to 60 % Filipino owned corps or
on the comity of nations. provide for a higher percentage (e.g. mass media
– 100%)
Four Basic (Important) Theories from the case:

1) a corporation, being a creature of law, has no Pedro Palting vs. San Jose Petroleum
legal status beyond the bounds of the sovereignty (1966)
within which it was created FACTS: Palting opposes the tie-up between San Jose
Petroleum (a Panamanian corp.) and San Jose Oil
2) a corporation cannot exercise powers not granted (domestic corp.) as being violative of the Constitution and
by its corporate charter or by the laws of the state the Petroleum Act. SJP claimed that it is entitled to the
of incorporation Parity Amendment which grants to US citizens the right to
use & exploit natural resources in the Phils because its
3) no state is under any obligation to adhere to the stockholders are US citizens.
doctrine of comity (every state has the power to
refuse recognition) HELD: SJP is not covered by the Parity Agreement. It is not
owned or controlled directly by US citizens. It is owned by
4) a state is not obliged to grant to a foreign another Panamanian corp., Oil Investments. Oil
corporation the privileges and immunities common Investments on the other hand is owned by 2 Venezuelan
to its citizens corps. Even assuming that the stocks of the 2 Venezuelan
corps are owned by US citizens, to hold that the set-up in
The power of a foreign corporation depends upon the laws CAB falls within the Parity Amendment is to unduly stretch
of the state recognizing it. It may impose conditions or and strain the language and intent of the law. There would
limitations subject to a few exceptions as decided by US be practical impossibility to determine at any given time
courts, to wit: the citizenship of the controlling stock.

b. Control Test During the War

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

During wars, courts may pierce the corporate identity and

look into the nationality of stockholders to determine the
citizenship of the corp. 4. Jurisdiction Over Foreign
Corporations

Filipinas Compania de Seguros vs. Christern, The dictum that a corporation has force only in the
Huenfeld, Co., Inc. incorporating state and no existence outside that state has
(1951) been abandoned. The prevailing rule is, with the consent of
FACTS: Christern (German Co.) filed a claim against a state, a foreign corp. shall be recognized and will be
Filipinas (US Co.) for recovery on fire insurance policies allowed to transact business in any state, which gives its
issued by the latter. F refused to pay claiming that the consent.
policies ceased to be in effect on the date the US declared
was against Germany. Dir. Of Bureau of Financing directed Requirements for License: Secs. 125-128, Corpo Code)
F to pay C. a. sworn application
b. copy of articles of incorporation
HELD: The policy ceased to be valid and binding because c. designation of an agent
of the fact that majority of the stockholders of C are d. sworn certification of an official of the incorporating
Germans and it became an enemy corporation when war state that a similar right is given to Filipinos in that
was declared. Under Phil Insurance Code, anyone except a state and that the foreign corp. is in good standing
public enemy may be insured. C is a public enemy at the e. statement under oath by the official of the corp.
time the insurable risk occurred. But C is entitled to a attesting that the corp is solvent and in sound financial
return of the premiums paid. condition

Filipinas Compania case was decided that way because of Foreign Corporations doing Business are Bound by
the government interest involved. Philippine Law
_______________
Art. 129, Corp Code
Daimler Co. Continental Tire and Rubber Co.: HELD: An All foreign corporations lawfully doing business in the
English corporation with an English secretary but whose Philippines shall be bound by all laws, rules and regulations
shares of stock are controlled by German nationals was applicable to domestic corporations.
considered an enemy corporation and prohibited from
trading in England. It ruled that the company itself was Exceptions:
incapable of loyalty or enmity. These qualities are 1. laws on creation, formation, organization or dissolution
attributable only to human beings. The company therefore of corporations
had the predominant character of its shareholders being 2. laws which fix the relations, liabilities, responsibilities
Germans. or duties of stockholders, members or officers of the
corp to each other

3. Domicile or Residence of Foreign Rule 14, Sec. 14 ROC

Corporations Service upon foreign corporations doing business in the
Phils. may be made on the:
Art. 51, CC
When the law creating or recognizing them, or any other 1. resident agent
provision, does not fix the domicile of juridical persons, it is 2. in the absence thereof, to the government official
understood to be designated by law or any of its officers or agents
a. the place where legal representation is established within the Phils
b. where they exercise their principal functions 3. on any officer or agent of the corp in the Phils

A foreign corp. granted license to do business here *a fourth method is established by case law: service thru
acquires a domicile in the Phils. diplomatic channels

State Investment House vs. Citibank

(1991)
FACTS: CMI obtained loans from Citibank. CMI defaulted. 5. Right of Foreign Corporation to
Citibank filed petition for involuntary insolvency against bring Suit
CMI with CFI, Rizal. State Investment, a creditor of CMI,
opposed claiming that Citibank had no jurisdiction because Acquisition of a license by a foreign corporation is an
the banks are not resident creditors of CMI. essential prerequisite for filing of suit before our courts.

HELD: The Phil branches of the bank are residents of the Art. 133, Corp Code states that these corporations may be
Phils being resident foreign corporations as defined in the sued or proceeded against before Phil courts or
Tax Code and other Banking Laws. What effectively makes administrative tribunals on any valid cause of action
a foreign corp a resident corp in the Phils is its actually recognized under Phil law.
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 Home Insurance Co. vs. Eastern Shipping Lines
resident. Also, the failure of the bank to aver categorically (1983)
that they are residents are not fatal to the cause of action FACTS: Home Insurance was subrogated to the rights of
where it alleged that it is a foreign bank licensed to do shippers against eastern Shipping for damages on cargo.
business here. Eastern refused to pay. HI filed action to recover sum of
money. TC dismissed because HI failed to prove capacity to
sue.

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

HELD: HI has capacity to sue because at the time the (1982)

complaints were filed, it already had a license to conduct FACTS: Leviton Manufacturing (US) sued Leviton Industries
insurance business in the Phils. Insurance contracts are not (Phil) for unfair competition bec. the latter uses the
null and void for lack of license at the time it was entered trademark Leviton. Defendant filed MTD for failure to
into. The Corp. Code is silent on the status of the said allege capacity to sue.
contracts. Also, the object of the law in requiring
registration is to subject the foreign corp. to the JD of our HELD: Plaintiff failed to allege capacity to sue.
courts. 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:
Atlantic Mutual Insurance vs. Cebu Stevedoring a. it registered its trademark with the Phil. Patent Office
(1966) or that it is an assignee of the trademark, and
FACTS: Cebu Stevedoring carried copra for Procter & b. that the country of which it is a citizen or domiciliary
Gamble. Copra were insured with AMI. Bec. of damages, grants to Filipino corps the same reciprocal treatment,
AMI sued Cebu Stevedoring. CS filed a MTD bec. AMI had either in a treaty, convention or law.
no capacity to sue. TC ruled that it must allege that it has a 2. It also violates Sec. 4, Rule 8 of the Rules of Court,
license to be able to sue. which states that:
Facts showing the capacity of a party to sue or be
HELD: Such allegation is unnecessary. However, AMI’s sued or the authority of a party to sue or be sued in a
mere allegation that it is a foreign corp is not sufficient. It representative capacity or the legal existence of an
must state WON it is doing business in the Phils bec organized association of persons that is made a party,
different rules attach to the same. If it is engaged in must be averred.
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. c. Agreements Fully Transacted
Outside the Philippines

6. Exceptions to License Requirement A foreign corporation is allowed to maintain an action on a

transaction wholly celebrated and consummated abroad so
a. Isolated Transactions as not to impair the policy of stabilizing commercial
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 Universal Shipping Lines vs IAC
“doing business” under the law. 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
Eastboard Navigation vs. Ysmael & Co. license but doing business without such license which bars
(1957) a foreign corporation from access to our courts.
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 Hang Lung Bank vs. Saulog
Phils. JY opposed alleging that E had no capacity to sue. (1991)
FACTS: Hang Lung Bank, not doing business in the Phils,
HELD: E has capacity to sue. The license is not necessary entered into continuing guarantee agreements with
because it is not engaged in business in the Phils. The 2 Cordova Chin San in HongKong for the debts of Wolder
isolated transactions do not constitute engaging in business Enterprises. Wolder defaulted so Hang Lung sued Wolder
within the purview of the Corpo Law. 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.
b. Action to Protect Trademark, Trade
Name, Goodwill, Patent or for Unfair HELD: A foreign bank not doing business in the Phils, such
Competition as Hang Lung, may sue a resident for contracts entered
and consummated outside the Phils.
Even without a license, a foreign corporation may file Reasons for rule: if not adopted,
complaint for unfair competition since it is a suit enjoining a. it will hamper the growth of business between
the unfair trader from pursuing the unlawful competition & Filipinos and foreigners
for the aggrieved party to recover damages. This is based b. it will be used as protection by unscrupulous
on equity considerations. Filipinos who have businesses abroad

Converse Rubber vs. Jacinto Rubber: d. Petition Filed is Merely a Corollary

FACTS: Converse owns the trademark of “Converse Chuck Defense in a Suit against it
Taylor All Star”. Jacinto manufactures shoes of identical
appearance. Hence, this suit. Time Inc. vs. Reyes
HELD: The court allowed a foreign corp is not maintaining
HELD: Sec 69 of the Corp Law does not disqualify Converse a suit in our courts but is merely defending itself when it
from filing the suit although it is unlicensed to do business files a complaint for the sole purpose of preventing the
and is not doing business in the Phils. This is in compliance lower court from exercising jurisdiction over the case. As
with the Convention of Paris for the Protection of Industrial such, it is not required to allege its capacity to sue.
Property from which the Phils adheres to and which US is a
signatory.
Phil. Columbia Enterprises vs. Lantin
(1971)
FACTS: Katoh & Co. filed a complaint against Phil
Leviton Industries vs. Salvador Columbian. Phil Columbian challenged its capacity to sue.

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

TC deferred the determination of this issue until trial on the program contracted. WL filed MTD on the basis of lack of
merits. PC opposed claiming that if it files a counterclaim, it jurisdiction over its person bec. the service was invalid it
will be waiving its right to assail the capacity to sue of being a foreign corp not engaged in business in the Phils.
Katoh.
HELD: WL is “doing business” in the Phils. It has installed
HELD: A counterclaim is a complaint against the plaintiff. It 26 products in the Phils and has registered its tradename
would not be the foreign corp who will be maintaining a with PPO. It allowed E to use such trademark and to
suit. Therefore, Sec. 69 of the Corp Law will not apply. advertise the same.

Thus, it cannot be said that the case involved an isolated or

7. Definition and Scope of Transacting single transaction. The transaction is not merely incidental
Business or casual but is of such nature as to indicate a purpose to
do other business in the State.
A foreign corporation may do business, state consent being
presumed, except:
1. where it is prohibited by express statutory authority or CIR vs. JAL
constitutional enactment (1991)
2. where it is seeking to perform acts which are contrary FACTS: JAL was assessed deficiency income tax by CIR for
to public policy the sales of its ticketing agent (PAL) in the Phils. JAL
3. where it is seeking to exercise extraordinary and opposed and claimed that as a non-resident foreign corp. it
special franchises can only be taxed on income from Phil sources.
4. where it is seeking to perform acts which are not
authorized by the law of the state of its incorporation HELD: JAL is a resident foreign corporation under the Tax
Code. For a foreign corporation to be regarded as doing
“Doing Business” (Foreign Investments Act) business, there must be a continuity of conduct and
- soliciting orders, intention to establish a continuous business (i.e.
- service contracts, appointment of a local agent) and not a temporary one.
- opening offices whether called “liaison” offices, JAL constituted PAL as a local agent to sell tickets which is
- appointing representatives if the latter stays for at the lifeblood of airline tickets, the generation of sales being
least 180 days, its paramount objective.
- participating in the management, supervision or
control of any domestic business
- and any other act that imply a continuity of Merrill Lynch Futures vs CA
commercial dealings (1992)
- and contemplate in the performance of acts or works FACTS: Lara spouses entered into a Futures Customer
- the progressive prosecution of commercial gain or of Agreement with Merrill Lynch Futures Inc. They become
the purpose/object of the business organization indebted to it after a loss in the business. Laras refused to
pay and claimed that the transactions were void because
What is not doing business: MLFI had no license to operate as a commodity or financial
1. mere investment as a shareholder futures broker.
2. exercising of rights as investor
3. having a nominee director or officer to represent HELD: MLFI had the capacity to sue and Laras are
interests estopped from denying the same after having done
4. appointing a representative or distributor in the Phils business with it over many years. The purpose of applying
which transacts business in its own name and for its the doctrine of estoppel is to prevent persons from taking
own accounts undue advantage of a corp’s non-compliance with the
statutes where such person received benefits under their
Doing business serves as the basis for jurisdiction over contract.
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. Granger vs. Microwave Systems
(1990)
FACTS: Granger (US) sued MSI (Phil) for recovery of a sum
Avon Insurance vs. CA of money. MSI did not pay and claimed that G had no
(1997) capacity to sue bec. it was unlicensed.
HELD: A reinsurance company is not doing business in a
certain state merely because the property or lives which HELD: G had no capacity to sue because of its being an
are insured by the original insurer company are located in unlicensed foreign corp doing business in the Phils. Neither
that state since the reinsurance contract is usually a does it fall under the established exceptions. Granger had
separate and distinct arrangement from the original the burden of showing that the finding fell under an
contract of insurance, whose contracted risk is insured in exception. The purpose of requiring license is to enable Phil
the reinsurance agreement. courts to exercise jurisdiction over them. If the foreign corp
operates here without submitting to our laws by securing a
The term “doing business in the Phils” implies a continuity license, they may not be allowed to invoke our laws for
of commercial dealings and arrangements and their protection.
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 B. Special Corporations
its organization.
1. Religious Societies and the
Corporation Sole
Wang Laboratories vs. Mendoza A religious society, if controlled by aliens, is not permitted
(1987) to acquire lands.
FACTS: Wang Lab (US corp) sells its products in the Phils
thru its exclusive distributor, Exxbite. ACCRS sued WL for A corporation sole is an incorporated office composed of
breach of contract for failure to develop the software only one person as in the cases of the chief archbishop,

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

bishop, priest, minister or an elder of a religious sect which 2. whether or not a partnership has been constituted
may form a corporation sole for the purpose of managing (esp. the conditions and formalities required)
its affairs, property and temporalities. 3. determination of WON it requires a separate juridical
personality (Common law does not consider a
partnership a legal person but civil law endows
Roman Catholic Administrator vs. LRC partnerships with a separate legal personality)
HELD: The 60% Filipino capital requirement to own lands 4. grounds for dissolution and termination of partnerships
was not intended to apply to corporations sole because it is 5. liability of partners esp. if limited partnership is
composed of one person usually a head or bishop of a allowed
diocese but he is only the administrator and not the owner
of the temporalities. Such are administered for and in What are governed or subject to the law of the place of
behalf of the faithful who are Filipino citizens. business?

1. entitlements and limitations, in general

2. Transnational Corporations 2. creation of establishments in the state
3. mercantile operations
Transnational corporations are clusters of several 4. jurisdiction of nations
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.  Domestic Corp.:
a) Can sue
But the transnational corporations are established under b) Can be sued
and governed by each host country’s national laws.
 Foreign Corps.
However, all locally incorporated branches are joined 1) Doing Business
together by the common control and management of a. With license – can sue and be sued
higher officials in the home state. b. Without license – cannot sue, can be
sued
As to liability, the single unit comprising the cluster is held
liable according to the laws of the host country but the 2)Not Doing Business (isolated transaction) – can
transnational corporation, in its entirety, is not answerable sue and be sued
to any legal order. ________________

Derivative Jurisdiction over Foreign Corporations (parent-

subsidiary) PART FIVE: FOREIGN JUDGMENTS
2 Important Issues
1. whether ownership by the parent over the subsidiary’s XVIII: Recognition and Enforcement of Foreign
stock is enough to give jurisdiction over the subsidiary Judgments
2. whether the activities of the subsidiary in a state will
give that state jurisdiction over he parent corporation A. Distinction between Recognition and
Enforcement
Restatement 2nd:
Jurisdiction over the parent will exist if the parent controls ‘Foreign judgments’- all decisions rendered outside the
and dominates the subsidiary. In determining whether the forum and encompasses judgments, decrees & orders of
separate corporate existence of the subsidiary has been courts of foreign countries as well as of sister states in a
adequately preserved, the courts will consider whether the federal system of gov’t.
subsidiary has its own records, assets, advertising,
employees, payroll and accounting and whether its Conceptual & Procedural Differences between Recognition
directors and headquarters are different form those of the & Enforcement:
parent. Rules on recognition & enforcement are analogous but
there are differences in conceptual & procedural aspects.
In the converse situation, jurisdiction over the parent may
give jurisdiction over the subsidiary if the separate ENFORCEMENT: This happens when a successful plaintiff
corporate existence of each has not been adequately fails to enforce judgment in the forum court so he seeks to
maintained or if the parent has acted within the state as carry out the execution of the judgment in another state.
the subsidiary’s agent.
This requires the filing of an action and a new judgment
before the properties of the defendant can be attached.
C. Partnerships
RECOGNITION: This may arise when a successful
Partnership is formed by 2 or more persons who bind defendant wins and asserts that decision to preclude the
themselves to contribute money, property or industry to a plaintiff from filing a suit on the same claim in another
common fund with the intention of dividing the profits forum. It is basically a passive act because it does not
among themselves. require the filing of an action in another forum. EX. Decree
of divorce.
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 B. Bases of Recognition and Enforcement of
representation or where it exercises its principal functions. Foreign Judgments

What matters are governed by the personal law of the 1) Comity

partnership?
1. nature, attributes and capacity to contract of the According to Cheshire, the theory on comity mean that in
partnership order to maintain reciprocal treatment from the courts of

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

other countries, we are compelled to take foreign A foreign judgment of a tribunal of a foreign country,
judgments as they stand & to give them Full faith & Credit. having jurisdiction to pronounce judgment renders it
conclusive upon the title to the thing while a judgment
Comity calls for reciprocity between the concerned against a person is presumptive evidence of a right as
jurisdictions. Thus, forum A will withhold recognition & between the parties & their successors in interest
enforcement of prior judgment if it comes from Forum B,
w/c does not give same concession to forum A judgment. 2. Merger

2) “Obligation of foreign judgments” It considers the plaintiff’s cause of action as merged in the
judgment. Thus, he may not relitigate that exact same
This doctrine of obligation is derived from the rigid & claim.
unyielding vested rights theory.
Judgment of a foreign court of competent jurisdiction is 3. Bar
considered as imposing a duty or obligation on the losing
litigant. This is where a successful defendant interposes the
i.e.: judgment in his favor to avert a second action by plaintiff
Forum 1- adjudicates debt owing to plaintiff on the same claim. By direct estoppel, the relitigation of all
Forum 2- treats F1 judgment as evidence of debt matters decided are precluded
w/c may be enforced in F2 by an action of debt
In addition, DOCTRINE OF COLLATERAL ESTOPPEL renders
conclusive all “essential issues of fact actually litigated in
Goddard vs. Godard the suit decided on by the foreign court”.
(1870)
FACTS: Godard (French) obtained a favorable ruling by a Distinction between Res Judicata & Collateral Estoppel
French court arising on a charter party obligation against
Gray (English). The French court interpreted the clause RES JUDICATA- seeks to end litigation by disallowing suit
“penalty for non-performance of this agreement, estimated on the same claim
amount of freight” as a clause that sets the limits to liability
to one voyage between the parties to the charter party COLLATERAL ESTOPPEL- concerned with preclusion by
contrary to the English interpretation. When this French barring relitigation of an issue already litigated on in a prior
judgment was sought to be enforced in England, Gray proceeding
interposed in defense that the erroneous French judgement
is a bar to the action for enforcement in England. D. Requisites for Recognition or Enforcement

HELD: it is not a bar. In England, foreign judgement are 1) The foreign judgment was rendered by a judicial
enforced based on the principle that where a court of or a quasi-judicial tribunal which had jurisdiction
competent jurisdiction has adjudicated a sum of money to over the parties & the case in the proper judicial
be due from one person to another, a legal obligation proceeding.
arises to pay the sum, on which an action of debt to
enforce the judgement may be maintained and not merely 2) The judgment must be valid under the laws of the
out of politeness and courtesy to other tribunals of other court that rendered it
countries. Anything that negates the existence of a legal
obligation or excuses the defendant from performance is a 3) The judgment must be final & executory to
good defense to the action (ex. Evidence that court constitute res judicata in another action
exceeded its jurisdiction or the judgement was obtained
thru fraud) 4) The state where the foreign judgment was
obtained allows recognition or enforcement of
Philippine judgment
C. Policies Underlying Recognition and
Enforcement 5) The judgment must be for a fixed sum of money

1. Res judicata 6) The foreign judgment must not be contrary to the

public policy or the good morals of the country
Many courts recognize & enforce foreign judgments on where it is to be enforced
ground of res judicata, under which principle:
a. those who contested an issue shall be bound 7) The judgment must not have been obtained by
by the result & fraud, collusion, mistake of fact or mistake
b. matters once tried & decided w/ finality in
one jurisdiction shall be considered as settled
b/w the parties 1. The foreign judgment was rendered by a judicial or a
quasi-judicial tribunal having jurisdiction over the parties &
Thus, parties are prevented from litigating issues already the case in the proper case
determined by a local judgment.
A court validly asserts jurisdiction over actions in personam
In Anglo-American jurisprudence, foreign judgments are based on consent of parties or relation of the parties or
not open to reexamination on merits when placed in issue events to the forum, thus satisfying minimum standards of
before local courts subject to a few exceptions. fair play & substantial justice.

The principle seeks to accomplish the policy of giving In in rem proceeding, jurisdiction is based on the power of
finality to litigation. Public policy dictates diminishing the the state over the property found within the territory
judicial energy invested in deciding suits, encouraging
confidence in court decrees and securing the legitimate
expectations of successful plaintiff or defendant that he will Northwest Orient Airlines vs. CA and C.F. Sharp
no longer be harassed into protecting his interests. (1995)
FACTS: Under contract of agency, NOA authorized Sharp to
Rule 39 Sec 40: sell airline tickets. Sharp failed to remit the proceeds of the

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

ticket sales to NOA. The court in Tokyo failed to serve the  first married to Von Kaufmann and had 3 children but
writ of summons against the Sharp branches in Tokyo. Von Kaufmann obtained divorce on France
NOA had these writs served in the Manila main office of  Castro was remarried to Dr. Mory and they had 2
Sharp. Despite the notice, Sharp did not appear at the children
hearing. NOA obtained a judgment in its favor. NOA sought
enforce the judgment in the Philippines. Sharp opposed HELD: as to the Mory children – NO, the second marriage
claiming that the service of process was void so the Tokyo is void. The right to inherit pertains only to legitimate,
Court did not acquire jurisdiction over it. legitimated and acknowledged natural children. The French
decree of divorce is not valid in the Philippines. French
HELD: Service of summons by Tokyo court was valid. A court had no jurisdiction to entertain actions for dissolution
foreign judgment is presumed to be valid and binding in of marriages of performed in the Phils over persons
the country where it comes, until the contrary is shown. domiciled here. The RULE is that when a court, where
The regularity of the proceedings and the giving of due neither of the spouses are domiciled, and to which one or
notice is also presumed. The party attacking has the both, may resort merely to obtain decree of divorce, issues
burden of overcoming this presumption. In CAB, SHARP such decree, the divorce is not entitled to recognition
alleged that the extraterritorial service of summons is void. elsewhere.
However, Sharp failed to prove the applicable Japanese
procedural law to base its claim since in matters of As long as the foreign court acquired jurisdiction, its
procedure, lex fori applies. Also, Sec. 14 of ROC applies, it decisions will not be disturbed whether it was reached
allows service to be made to: through an adversary proceeding or by default.
a. resident agent designated (if it has one,
the designation is exclusive)
b. if none, on the government official Somportex vs. Philadelphia Chewing Gum Corp.. Court
designated by law ( Insurance rejected Philadelphia’s contention that a default judgment
Commissioner – foreign insurance co.; by the English courts should not be extended hospitality by
Superintendent of Banks – foreign American courts.
banking corps. & SEC – other foreign
corps licensed to do business in Phils) “In the absence of fraud or collusion, a default judgment is
The government official shall transmit as conclusive as adjudication between the parties as when
the summons by mail to the principal rendered after answer & complete contest in open court.
office.
c. any of its officers/agents within the Phils. The polestar is whether a reasonable method for
notification is employed & reasonable opportunity to be
Sharp did not designate an agent so service on govt official heard is given to the person concerned.”
or any of its officers in Japan is allowed. The Court finds
that the service made by Tokyo court sufficient to fall Borthwick vs. Castro
under service to the proper govt official. (1987)
FACTS: Borthwick (US) owned real properties in Hawaii. He
(Tokyo DC- SC Japan – Ministry of Foreign Affairs of Japan issued promissory notes to Scallon but failed to pay the
– Japanese Embassy – DFA, Phils – RTC – sheriff delivered same. Scallon sued him in Hawaii. B was issued summons
summons to principal office) 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

Boudard vs. Tait the rights between parties and rejection may be justified,
(1939) among others, by want of jurisdiction of the issuing
FACTS: Boudard’s husband, employee of Tait, was killed by authority, among others. But in CAB, such rejection was
co-employees. Boudard obtained a favorable judgment not justified. What Borthwick seeks in this appeal is a 3rd
against Tait who was declared to be in default in CFI of chance to contest the jurisdiction of the foreign court. In
Hanoi. She filed action for execution of Hanoi judgment in order to do that, he must show that the declaration of
CFI Manila. Court dismissed for lack of jurisdiction of Hanoi default was incorrect. But Borthwick did not do this.
court over Tait who was not a resident of French Indo- Borthwick was given an opportunity to file his answer in
China. the Hawaii court, he was also given a chance in the CFI,
Makati, but he failed to do the same.
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 2. The judgment must be valid under the laws of the court
the judgment. At the time of the complaint, Tait was not in that rendered it
Hanoi nor were his agents or representatives. Also, the
French law on service of summons was not applied. In Pemberto vs. Hughes although there was error in
Instead of serving a copy to the Atty Gen of the Republic procedure, since the Florida court was competent & no
who shall visae the original, the summons were served in substantial injustice was committed, the English court did
Manila to J.M. Shotwell, a representative of Churchill & Tait not consider the error as to significantly alter an otherwise
Inc, which is an entity entirely different from Tait. valid decree.

3. The judgment must be final & executory to constitute

Ramirez vs. Gmur res judicata in another action
(1918)
FACTS: The will of Bischoff contained a statement to the If judgment is interlocutory or provisional in character w/c
effect that he had no living forced heirs. Leona Castro, ‘contemplates that a fuller investigation leading to final
Bischoff’s recognized natural daughter, had 2 sets of decision may later be held, it creates no obligation on the
children from 2 marriages, who claim to be heirs of forum court to recognize it.
Bischoff.

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systems are affected since finding the

Nouvion vs. Freeman exact foreign law that grants reciprocity
(1889) is still nebulous. It is unclear whether
FACTS: Nouvion filed an action for administration of the reciprocity is proved by general
estate of Henderson. In order to show that he was recognition of such or requires a specific
Henderson’s creditor, Nouvion alleged that he obtained a recognition for a case identical or
foreign judgment establishing Henderson’s indebtedness to analogous to the one before the court.
him.

HELD: The Spanish judgment cannot be sustained because Cowans, et al. vs. Teconderoga Pulp and Paper Co.
it was not yet final and conclusive. Where a court of (1927)
competent jurisdiction has adjudicated a certain sum as FACTS: Cowans obtained a Quebec judgment in their favor
due from one to another, a legal obligation arises, on which for a sum of money. TPP asserts in defense that this
an action of debt to enforce judgment may be maintained. judgment is not conclusive upon, but merely a prima facie
But to come within the terms of law properly laid down, evidence before the US courts, pursuant to Quebec law.
judgment must result from an adjudication of a court of TPP alleges that since Quebec law does not reciprocate as
competent jurisdiction, such judgement being final and to judgements of NY courts, NY should also not recognize
conclusive. It is not sufficient that the judgement puts an the Quebec judgment as adjudications of the issues.
end to and finally settles controversy. It must e shown that
in the court by which it was pronounced it conclusively and HELD: This claim of TPP pursuant to the Hilton vs. Guyot
finally settles forever the existence of debt of which it is doctrine should not be followed. Persuasiveness of a
sought to be made conclusive. 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
Querubin vs. Querubin would deprive a party of the private rights he has acquired
(1950) by reason of a foreign judgement because the country in
FACTS: Following their divorce because of Margaret’s whose courts the judgement was rendered has a different
infidelity, rendered in New Mexico, their daughter rule of evidence than what the recognizing court has and
Querubina was kept in a neutral home. Silvestre then does not give the same effect as the latter gives to a
obtained an interlocutory decree granting him custody. foreign judgment.
Margaret had the decree modified since the she was
remarried and had a stable home for Querubina. When 5. The judgment must be for a fixed sum of money
Silvestre fled to the Philippines with Querubina, Margaret
filed for habeas corpus. She asserts that the interlocutory Unless the foreign judgment specifies performance or
order should be complied with pursuant to Article 48 Rule delivery, there is nothing for the forum court to enforce. In
39. Sadler vs. Roberis, the English court held that until
taxation, the plaintiff could not enforce his claim because
HELD: Her contention is erroneous. A foreign interlocutory the Jamaican court decided that from the sum due him
order in favor of Margaret did not establish a vested right should first be subtracted the costs incurred by the
with respect to rightful custody over Queribina. The decree defendant which was to be taxed. Hence, the amount
is not yet final but subject to change with the decreed was not fixed.
circumstances. Generally, divorce decree awarding custody
of child to one spouse is respected by other states but such 6. The foreign judgment must not be contrary to the public
decree has no effect in another state as to facts and policy or the good morals of the country where it is to be
conditions occurring subsequently to date of decree. Court enforced
of another state may award custody otherwise upon proof
of subsequent matters justifying such decree to the child’s
interest. Querubin vs. Querubin
(1950)
HELD: It goes against the law, public policy, and good
4. The state where the foreign judgment was obtained customs that a mother who violated her marital vows
allows recognition or enforcement of Philippine judgment should have custody (referring to the fact that Margaret
was having an illicit affair with another man).
In Hilton vs. Guyot, a French judgment was not recognized
by a US court because it found out that French laws 7. The judgment must not have been obtained by fraud,
allowed review of American judgments on the merits. This collusion, mistake of fact or mistake of law
ruling is widely criticized because:
 Instead of being a mutual exchange of privileges, Whether or not there is fraud is decided by the court where
comity was used as a means of retaliation. enforcement of judgment is sought on the basis of its own
 The court in Hilton discriminated against the litigants internal law. A problem may arise when the internal law is
on account of the policies of their governments which not in agreement with the notions of equity of the foreign
they were in no position to shape and alter. state.
 It can be argued that the task of formulating policies
through reciprocity is a power misplaced in the Rule 39, Sec. 50
judiciary and should be appropriately wielded by the Effect of Foreign Judgment. The effect of a judgment of a
other branches of government. court of a foreign country, having jurisdiction to pronounce
the judgment is as follows:
Trautman and Von Mehren point out the difficulties with a. in case of a judgment upon a specific
the reciprocity requirement. thing, the judgment is conclusive upon the title to
a. its normal tendency is to lower rather the thing
than raise the standards of practice b. in case of judgment upon a person, the
b. the private litigants burdened may not be judgment is a presumptive evidence of a right as
closely attached to the legal order sought between the parties and their successors in
to be changed interest by a subsequent title; but the judgment
c. the administration of reciprocity clauses may be repelled by evidence of want of
can be complicated esp. where case law

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

jurisdiction, want of notice to the party, collusion, compatible with the requirements of due process of
fraud, or clear mistake of law or fact. law
2. The foreign court did not have personal jurisdiction
This rule does not refer to intrinsic fraud which goes to the over the defendant
merits of the case. To impeach a foreign judgment, fraud 3. The foreign court did not have jurisdiction over the
must be “extrinsic, collateral act which vitiates the most subject matter
solemn proceedings of the courts of justice” such as
collusion by the parties, suppression of an important (b) A foreign judgment need not be recognized if-
document or the presentation in evidence of a forged will 1) The defendant in the proceedings in foreign court
or falsified affidavit. Extrinsic fraud signifies that a party is did not receive notice of the proceedings in
deprived of his day in court. 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
Philippine Aluminum vs. FASGI judgment is based is repugnant to public policy of
(1950) the state.
FACTS: FASGI (US) entered into a distributorship 4) The foreign judgment conflicts with another final
agreement with PAWI (Phil). PAWI shipped defective goods & conclusive judgment.
to FASGI. FASGI sued PAWI for breach of contract in US 5) The proceeding in the foreign country was
court. They entered into a settlement but PAWI still failed contrary to an agreement between the parties
to pay. US court issued a certificate of final judgment upon under which the dispute in question settled
application by FASGI of entry of judgment. FASGI was not otherwise than the proceeding in that court
able to satisfy the claim in US so it filed a complaint for 6) In the case of jurisdiction based only on personal
enforcement in RTC. RTC dismissed but CA reversed. service, the foreign court was a seriously
inconvenient forum for the trial of the action
HELD: California court judgment may be enforced. A
judgment for a sum of money ordered in a foreign court is Grounds 1-3 under letter b are mandatory & the last 3 are
presumptive evidence of a right between the parties and discretionary.
their successors-in-interest, but when suit for enforcement The ground on non-recognition for lack of jurisdiction in
is filed in Phil court, the judgment may be repelled by personam is most debatable. Most courts consider
evidence of want of jurisdiction, want of notice, fraud, jurisdiction of foreign court as appropriate when there are
collusion or a clear mistake of law or fact. significant contacts between forum states & individuals.
In CAB, PAWI failed to prove that there was collusion
between its counsel, Mr. Ready, and FASGI in entering into The service of summons as the traditional basis for
the settlement and in agreeing to an entry of judgment exercise of jurisdiction has been eroded.
against PAWI. PAWI should have raised the issue before
the forum court in line with the principle of comity of The ground that “foreign court was seriously inconvenient”
nations that a court should refrain from assuming the employs doctrine of forum non conveniens to restrain use
power to pass upon the correctness of the application of of “presence” as cornerstone of jurisdiction.
laws and evaluation of facts of judgments issued by foreign
courts. Art 23 Hague Convention on Jurisdiction, Applicable Law,
Recognition, Enforcement & Cooperation in re of Parental
Responsibility & Measures for Protection of Children:
Puyat vs. Zabarte
(2001) Considering the best interests of child, recognition of
FACTS: Z filed an action to enforce money judgment measures directed for protection of the child or his
rendered by the Superior Court of California against P. RTC property may be refused if such were taken without giving
by summary judgment ordered Puyat to pay Z pursuant to the child opportunity to be heard or if contrary to public
Judgment of Stipulation for Entry of Judgment contained in policy.
the Compromise Agreement between them in the Calif.
court. CA held that P is estopped from assailing the Violation of ordre public & nonobservance of due process
judgment that had become final. are included as grounds for non-recognition in many Hague
Conventions.
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 F. Modern Developments in Enforcement of
rights and obligations of the parties based on foreign laws Foreign Judgment
or contracts; the parties needed only to perform their
obligations under the Compromise Agreement they had 1. The Hague Conference on Private IL Convention on
entered into. None of the reasons for invoking forum non Recognition & Enforcement of Foreign Judgments in Civil &
conveniens barred the RTC from exercising its jurisdiction Commercial Matters established conditions & requisites for
(forum shopping, overcrowded dockets, harassment of contracting states to recognize & enforce each other’s
defendants, etc.) In CAB, there was no more need for judgment.
material witnesses, no forum shopping or harassment of
Puyat, no inadequacy in the local machinery to enforce the Contributions:
foreign judgment and no question raised as to the a) provisions on applicability of Convention
application of any foreign law. irrespective of nationality
b) non-refusal for sole reason that court of state of
origin has applied a law other than that which
E. Grounds for Non-Recognition would have been applicable according to the rules
of Private IL of the state addressed
Uniform Money-Judgment Recognition Act of the US, c) it addresses the question of whether a default
Section 4: judgment is subject to enforcement
d) establishes recognition & enforcement procedures
(a) A foreign judgment is not conclusive if-
1. The judgment was rendered under a system which The seventh session looked into possibility of a general
does not provide impartial tribunals or procedures convention on recognition & enforcement of judgments

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

whose chief benefit will be the relatively uniform procedure concerned in Hong Kong, the court ruled that it is not
among contracting states. possible for a foreign court to pronounce his decision
wrong.
2. The EEC Convention of 1968
Procedure in other civil law countries
Six countries comprising the European Economic
Community are signatories to Convention on Jurisdiction of B. Second Mode: Exequatur - -Summary proceeding also
Courts & Enforcement of Decisions… known as ‘exequatur’ procedure.
Authenticated copy of foreign judgment need only be
The Convention extends to Common Market area the reach accompanied by a certification from Clerk of Court. Once
of jurisdictionally improper for a now available against non- validated the foreign judgment has same effect as local
residents under procedural systems of 4 member states. judgment. Example: French formule executoire, used in
France, Italy, Austria
3. The Uniform Money-Judgments Recognition Act
C. Third Mode: Judgment Registration
This seeks to inspire more confidence in stability of
American law & bring together into one statute all common It may or may not involve judicial supervision.
law rules of recognition from jurisprudence. Authenticated copy of foreign judgment filed w/ registrar’s
office w/ other proofs required by domestic laws & foreign
What does the act cover? judgment is converted into a local one that is immediately
executory.
It is applicable to any foreign country judgment that is final
& conclusive & enforceable when rendered even though an It is used in Australia, England.
appeal is pending or it is subject to appeal.

Distinctions between a foreign country & a sister-state

G. Procedure for Enforcement judgment in United States

The Philippines has adopted the common law practice of These differences are premised on possible absence of
not instantaneously executing foreign judgment. principles underlying res judicata practices within foreign
country.
MODES OF ENFORCEMENT
Von Mehren & Trautman: There are significant differences
A. First Mode: Need for New Judicial Action between the 2 to justify refusal of a foreign country
judgment even though it could be recognized if rendered
Procedure in Philippines by a sister state:
(Compared to simple procedure of exequaure, Philippine 1) US Constitution clause of full faith and credit. This
mode is protracted & expensive). substitutes a federal policy in place of individual
state policies, thus demanding that sister-state
Our laws require that a petition should be filed in proper judgments be given more than minimal preclusive
court attaching authenticated copy of foreign judgment to effects.
be enforced. 2) Judgments of sister-state may be brought to US
Supreme Court for review
Philippine consul must certify that it had been rendered by 3) Judgments rendered by sister states are based on
a court of competent jurisdiction. The petition must comply legal procedures & standards similar to those
w/ all the requisites of an enforceable judgment. whose recognition is sought.

Requirement to file an action anew On the other hand, a foreign country judgment may have
been decided under rules that disregard private rights &
Attempt to reconcile the principle of territorial jurisdiction duties or fundamental policies that the recognizing court
of courts w/c demands that the enforcement of a judgment deem important.
outside the territory of rendering court must be placed
upon some other basis than the authority of the rendering In practice, courts are inclined to give recognition because
court w/c ceased at its jurisdictional limits- & the principle of
of res judicata. 1) overriding public interest
2) dictates of public policy that there be an end to
litigation.
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.

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

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

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