Conflict of Laws Cases_Set 1 1

G.R. No. L-41518 June 30, 1976 At the hearing of this case on October 20, 1975, a Compromise
GUERRERO'S TRANSPORT SERVICES, INC., petitioner, Agreement was arrived at by the parties wherein they agreed to submit to
vs. the Office of the Secretary of Labor the determination of members of the
BLAYLOCK TRANSPORTATION SERVICES EMPLOYEES respondent union BTEA-KILUSAN who shall be reinstated or absorbed by the
ASSOCIATION-KILUSAN (BTEA-KILUSAN), LABOR ARBITER herein petitioner in the transportation service inside the naval base, which
FRANCISCO M. DE LOS REYES and JOSE CRUZ, respondents. determination shall be considered final. This Court approved this agreement
and enjoined "all the parties to strictly observe the terms thereof." This
Facts: Guerrero’s Transport Services (GTS) won the public bidding conducted agreement is deemed to have superseded the Resolution of the National
by the US Naval Base Authorties for a 5-year contract for the right to operate Labor Relations Commission of October 31, 1973, as affirmed by the
and/or manage the transportation services inside the naval base. Guerrero’s Secretary of Labor on December 27, 1973.
Transport Services won over Concepcion F. Blaylock, then the incumbent
concessionaire, doing business under “Blaylock Transport Services” who had Issue: Which law shall prevail? Our municipal law which is the Labor Code
396 employees who were members of the BTEA-KILUSAN the respondent or the treaty which is the Philippine-US Labor Agreement. [mugna.com]
union. GTS started its operation but refused to employ the members of the
union which prompted the union to file a complaint with the NLRC, to compel Ruling: Pursuant to Section 6 of Article I of the Philippine-U S. Labor
GTS to employ the union members pursuant to Art. 1, Sec. 2 of the RP-US Agreement of May 27, 1968, the United States Armed Forces
Base Agreement. NLRC dismissed this on jurisdictional grounds since there undertook, consistent with military requirements, "to provide
was no employer-employee relationship between the parties. The union security for employment, and, in the event certain services are
appealed before the SOLE who remanded the case to NLRC, in a conference contracted out, the United States Armed Forces shall require the
which resulted to NLRC ordering GTS to absorb the union as his employees contractor or concessioner to give priority consideration to affected
upon application within a deadline that Guerrero may set, except those who employees for employment.
have derogatory records with the US Naval Authorities, and directed the OIC
of DOLE Olongapo City to oversee the preparation of the list of those A treaty has two (2) aspects — as an international agreement
qualified for absorption in a resolution. between states, and as municipal law for the people of each state to
GTS appealed to SOLE Ople who affirmed the resolution. GTS observe. As part of the municipal law, the aforesaid provision of the treaty
appealed the decision to the Office of the President (OP) who returned the enters into and forms part of the contract between petitioner and the U.S.
case to the SOLE for appreciation and action on appeal since the issue does Naval Base authorities. In view of said stipulation, the new contractor is,
not involve national interest. The Provincial Director of the Labor Office in therefore, bound to give "priority" to the employment of the qualified
Zambales furnished Guerrero a list of 46 union members qualified for employees of the previous contractor. It is obviously in recognition of such
absorption, as covered by the SOLE decision, requesting GTS to report on obligation that petitioner entered into the afore-mentioned Compromise
the action taken on the matter directly to the NLRC Chairman. GTS received Agreement.
a letter from Camp Olivas directing him to comply with the order and in a
letter-reply, it was stated that any non-compliance was attributable to the As above indicated, under the Compromise Agreement as embodied
fact that some of the applicants failed to submit themselves for processing in the Resolution of this Court dated October 24, 1975, the parties agreed to
and examination as requested by the US Naval Base authorities. Ultimately, submit to the Secretary of Labor the determination as to who of the
the Labor Arbiter ordered the reinstatement of 129 complainants to their members of the respondent union BTEA-KILUSAN shall be absorbed or
former or substantially equivalent positions without loss of seniority and employed by the herein petitioner Guerrero's Transport Services, Inc., and
other rights and privileges. GTS assailed the decision on the ground of lack that such determination shall be considered as final. In connection therewith,
of jurisdiction. the Secretary of Labor issued an Order dated November 13, 1975, directing
 Conflict of Laws Cases_Set 1 2

the National Labor Relations Commission, through Labor Arbiter Francisco de

los Reyes, to implement the absorption of the 175 members 26 into the
Guerrero's Transport Services, subject to the following conditions, viz.: (a)
that they were bona fide employees of the Blaylock Transport Service at the SAUDI ARABIAN AIRLINES, petitioner,  vs. COURT OF APPEALS,
time its concession expired; and (b) that they should pass final screening MILAGROS P. MORADA and HON. RODOLFO A. ORTIZ, in his
and approval by the appropriate authorities of the U.S. Naval Base capacity as Presiding Judge of Branch 89, Regional Trial Court of
concerned. According to private respondent, however, Commander Quezon City, respondents.
Vertplaetse of the U.S. Navy Exchange declined to implement the order of Facts:
the Labor Arbiter, as it is the petitioner who should request for the screening
and approval of the applicants. Defendant SAUDIA hired plaintiff as a Flight Attendant for its airlines
based in Jeddah, Saudi Arabia. On April 27, 1990, while on a lay-over in
Jakarta, Indonesia, plaintiff went to a disco dance with fellow crew
Considering that the afore-mentioned Compromise-Agreement of the members Thamer Al-Gazzawi and Allah Al-Gazzawi, both Saudi
parties, as approved by this Court, is more than a mere contract and has the nationals. When they were in Thamer’s room, Allah left on some
force and effect of any other judgment, it is, therefore, conclusive upon the pretext. Shortly after he did, Thamer attempted to rape
parties and their privies. For it is settled that a compromise has, upon the plaintiff. Fortunately, a roomboy and several security personnel heard
parties, the effect and authority of res judicata and is enforceable by her cries for help and rescued her. Later, the Indonesian police came
execution upon approval by the court. Since the resolution of the NLRC of and arrested Thamer and Allah Al-Gazzawi, the latter as an accomplice.
October 31, 1973 required the absorption of the applicants subject to the
When plaintiff returned to Jeddah, several SAUDIA officials interrogated
conditions therein contained, and there being no showing that such
her about the Jakarta incident. They then requested her to go back to
conditions were complied with, the Labor Arbiter exceeded his authority in Jakarta to help arrange the release of Thamer and Allah. In Jakarta, the
awarding back wages to the 129 complainants. plaintiff refused to cooperate for the immediate release of the detained
GTS was ordered to employ members of respondent labor union crew members. She was afraid that she might be tricked into something
BTEA-KILUSAN referred to in the Order of the Secretary of Labor dated she did not want because of her inability to understand the local
November 13, 1975 who satisfy the criteria enunciated viz.: (a) those who dialect. She also declined to sign a blank paper and a document written
were bona fide employees of the Blaylock Transport Services at the in the local dialect. Eventually, SAUDIA allowed plaintiff to return to
time its concession expired; and (b) those who pass the final Jeddah but barred her from the Jakarta flights.
screening and approval by the appropriate authorities of the U.S. Just when plaintiff thought that the Jakarta incident was already behind
Naval Base. her, her superiors requested her to see Mr. Ali Meniewy, Chief Legal
Officer of SAUDIA, in Jeddah, Saudi Arabia. When she saw him, he
brought her to the police station where the police took her passport and
questioned her about the Jakarta incident. Not until she agreed to do so
did the police return her passport and allowed her to catch the afternoon
flight out of Jeddah.
One year and a half later in Riyadh, Saudi Arabia, a few minutes before
the departure of her flight to Manila, plaintiff was not allowed to board
the plane and instead ordered to take a later flight to Jeddah to see Mr.
Miniewy. When she did, a certain Khalid of the SAUDIA office brought
her to a Saudi court where she was asked to sign a document written in
Arabic. They told her that this was necessary to close the case against
Thamer and Allah. As it turned out, plaintiff signed a notice to her to
 Conflict of Laws Cases_Set 1 3

appear before the court on June 27, 1993. Plaintiff then returned to Private respondent contends that since her Amended Complaint is based on
Manila. Articles 19 and 21 of the Civil Code, then the instant case is properly a
matter of domestic law.
On July 3, 1993 a SAUDIA legal officer again escorted plaintiff to the
same court where the judge, to her astonishment and shock, rendered a Held:
decision, translated to her in English, sentencing her to five months
imprisonment and to 286 lashes. Only then did she realize that the Saudi Where the factual antecedents satisfactorily establish the existence of a
court had tried her, together with Thamer and Allah, for what happened foreign element, we agree with petitioner that the problem herein could
in Jakarta. The court found plaintiff guilty of (1) adultery; (2) going to a present a conflicts case. A factual situation that cuts across territorial lines
disco, dancing and listening to the music in violation of Islamic laws; and and is affected by the diverse laws of two or more states is said to contain a
(3) socializing with the male crew, in contravention of Islamic tradition. foreign element. The presence of a foreign element is inevitable since social
and economic affairs of individuals and associations are rarely confined to
Because she was wrongfully convicted, the Prince of Makkah dismissed the the geographic limits of their birth or conception.
case against her and allowed her to leave Saudi Arabia. Shortly before her
return to Manila, she was terminated from the service by SAUDIA, without In the instant case, the foreign element consisted in the fact that private
her being informed of the cause. respondent Morada is a resident Philippine national, and that petitioner
SAUDIA is a resident foreign corporation. Also, by virtue of the employment
Morada filed a Complaint or damages against SAUDIA, and Khaled Al-Balawi, of Morada with the petitioner Saudia as a flight stewardess, events did
its country manager. Morada filed an Amended Complaint wherein Al-Balawi transpire during her many occasions of travel across national borders,
was dropped as party defendant.  particularly from Manila, Philippines to Jeddah, Saudi Arabia, and vice versa,
that caused a conflicts situation to arise.
RTC: denied the Motion to Dismiss Amended Complaint filed by Saudia.
We thus find private respondents assertion that the case is purely domestic,
SAUDIA alleged that the trial court has no jurisdiction to hear and try the imprecise. A conflicts problem presents itself here, and the question of
case on the basis of Article 21 of the Civil Code, since the proper law jurisdiction fronts the court a quo.
applicable is the law of the Kingdom of Saudi Arabia. It also alleged that the
Philippines does not have any substantial interest in the prosecution of the Issue 1:
instant case, and hence, without jurisdiction to adjudicate the same.
No. Based on the allegations in the Amended Complaint, read in the light of
CA: ruled that the Philippines is an appropriate forum considering that the the Rules of Court on jurisdiction we find that the RTC of Quezon City
Amended Complaints basis for recovery of damages is Article 21 of the Civil possesses jurisdiction over the subject matter of the suit. Its authority to try
Code, and thus, clearly within the jurisdiction of respondent Court.  and hear the case is provided for under Section 1 of Republic Act No. 7691,
to wit:
Issues:

1. W/N the CA erred in holding that the RTC of Quezon City has SEC. 19. Jurisdiction in Civil Cases. Regional Trial Courts shall
jurisdiction to hear and try the civil case entitle Milagros P. Morada exercise exclusive jurisdiction:
vs. Saudi Arabian Airlines; and
2. W/N the CA erred in ruling that the Philippine Law should govern. (8) In all other cases in which demand, exclusive of interest,
damages of whatever kind, attorneys fees, litigation expenses, and
Petitioner SAUDIA claims that before us is a conflict of laws that must be costs or the value of the property in controversy exceeds One
settled at the outset. It maintains that private respondents claim for alleged hundred thousand pesos (P100,000.00) or, in such other cases in
abuse of rights occurred in the Kingdom of Saudi Arabia. It alleges that the Metro Manila, where the demand, exclusive of the above-mentioned
existence of a foreign element qualifies the instant case for the application of items exceeds Two hundred Thousand pesos (P200,000.00). 
the law of the Kingdom of Saudi Arabia, by virtue of the lex loci delicti
commissi rule.
 Conflict of Laws Cases_Set 1 4

And following Section 2 (b), Rule 4 of the Revised Rules of Court the rule. The purpose of characterization is to enable the forum to select the
venue, Quezon City, is appropriate: proper law.
Our starting point of analysis here is not a legal relation, but a factual
SEC. 2 Venue in Courts of First Instance. [Now RTC]
situation, event, or operative fact. An essential element of conflict rules is
the indication of a test or connecting factor or point of contact. 
(b) Personal actions. All other actions may be commenced and tried
where the defendant or any of the defendants resides or may be Note that one or more circumstances may be present to serve as the
found, or where the plaintiff or any of the plaintiff resides, at the possible test for the determination of the applicable law. These test factors
election of the plaintiff. or points of contact or connecting factors could be any of the following:
(1) The nationality of a person, his domicile, his residence, his
Pragmatic considerations, including the convenience of the parties, also place of sojourn, or his origin;
weigh heavily in favor of the RTC Quezon City assuming
jurisdiction. Paramount is the private interest of the litigant. Enforceability of (2) the seat of a legal or juridical person, such as a corporation;
a judgment if one is obtained is quite obvious. Relative advantages and
(3) the situs of a thing, that is, the place where a thing is, or is
obstacles to a fair trial are equally important. Plaintiff may not, by choice of
deemed to be situated. In particular, the lex situs is decisive when
an inconvenient forum, vex, harass, or oppress the defendant, e.g. by
real rights are involved;
inflicting upon him needless expense or disturbance. But unless the balance
is strongly in favor of the defendant, the plaintiffs choice of forum should (4) the place where an act has been done, the  locus actus,
rarely be disturbed. such as the place where a contract has been made, a
marriage celebrated, a will signed or a tort
Similarly, the trial court also possesses jurisdiction over the persons of the
committed.The lex loci actus is particularly important in
parties herein. By filing her Complaint and Amended Complaint with the trial
contracts and torts;
court, private respondent has voluntary submitted herself to the jurisdiction
of the court. The records show that petitioner SAUDIA has filed several (5) the place where an act is intended to come into effect, e.g.,
motions praying for the dismissal of Moradas Amended Complaint. SAUDIA the place of performance of contractual duties, or the place where
also filed an Answer In Ex Abundante Cautelam. What is very patent and a power of attorney is to be exercised;
explicit from the motions filed, is that SAUDIA prayed for other reliefs under
the premises. Undeniably, petitioner SAUDIA has effectively submitted to the (6) the intention of the contracting parties as to the law that
trial court’s jurisdiction by praying for the dismissal of the Amended should govern their agreement, the lex loci intentionis;
Complaint on grounds other than lack of jurisdiction. (7) the place where judicial or administrative proceedings are
Issue 2: instituted or done. The lex forithe law of the forumis particularly
important because, as we have seen earlier, matters of procedure
No. As to the choice of applicable law, we note that choice-of-law problems not going to the substance of the claim involved are governed by
seek to answer two important questions: (1) What legal system should it; and because the lex fori applies whenever the content of the
control a given situation where some of the significant facts occurred in two otherwise applicable foreign law is excluded from application in a
or more states; and (2) to what extent should the chosen legal system given case for the reason that it falls under one of the exceptions
regulate the situation. to the applications of foreign law; and
Before a choice can be made, it is necessary for us to determine under what (8) the flag of a ship, which in many cases is decisive of practically
category a certain set of facts or rules fall. This process is known as all legal relationships of the ship and of its master or owner as
characterization, or the doctrine of qualification. It is the process of deciding such. It also covers contractual relationships particularly contracts
whether or not the facts relate to the kind of question specified in a conflicts of affreightment.
 Conflict of Laws Cases_Set 1 5

After a careful study of the pleadings on record, including allegations in the nationality, place of incorporation and place of business of the parties, and
Amended Complaint deemed submitted for purposes of the motion to (d) the place where the relationship, if any, between the parties is centered.
dismiss, we are convinced that there is reasonable basis for private
respondents assertion that although she was already working in Manila, As already discussed, there is basis for the claim that over-all injury occurred
petitioner brought her to Jeddah on the pretense that she would merely and lodged in the Philippines. There is likewise no question that private
testify in an investigation of the charges she made against the two SAUDIA respondent is a resident Filipina national, working with petitioner, a resident
crew members for the attack on her person while they were in Jakarta. As it foreign corporation engaged here in the business of international air
turned out, she was the one made to face trial for very serious charges, carriage. Thus, the relationship between the parties was centered here,
including adultery and violation of Islamic laws and tradition. although it should be stressed that this suit is not based on mere labor law
violations. From the record, the claim that the Philippines has the most
There is likewise logical basis on record for the claim that the handing over significant contact with the matter in this dispute, raised by private
or turning over of the person of private respondent to Jeddah officials, respondent as plaintiff below against defendant (herein petitioner), in our
petitioner may have acted beyond its duties as employer. Petitioners view, has been properly established.
purported act contributed to and amplified or even proximately caused
additional humiliation, misery and suffering of private respondent. Petitioner The instant petition for certiorari is hereby DISMISSED. Civil Case No. Q-93-
thereby allegedly facilitated the arrest, detention and prosecution of private 18394 entitled Milagros P. Morada vs. Saudi Arabia Airlines is hereby
respondent under the guise of petitioners authority as employer, taking REMANDED to Regional Trial Court of Quezon City, Branch 89 for further
advantage of the trust, confidence and faith she reposed upon it.  proceedings

Considering that the complaint in the court a quo is one involving torts, the
connecting factor or point of contact could be the place or places where the
tortious conduct or lex loci actus  occurred. And applying the torts principle in
a conflicts case, we find that the Philippines could be said as a situs of the
tort (the place where the alleged tortious conduct took place). This is
because it is in the Philippines where petitioner allegedly deceived private
respondent, a Filipina residing and working here. According to her, she had
honestly believed that petitioner would, in the exercise of its rights and in
the performance of its duties, act with justice, give her her due and observe
honesty and good faith. Instead, petitioner failed to protect her, she
claimed. That certain acts or parts of the injury allegedly occurred in another
country is of no moment. For in our view what is important here is the place
where the over-all harm or the fatality of the alleged injury to the person,
reputation, social standing and human rights of complainant, had lodged,
according to the plaintiff below (herein private respondent). All told, it is not
without basis to identify the Philippines as the situs of the alleged tort.
In keeping abreast with the modern theories on tort liability, we find here an
occasion to apply the State of the most significant relationship rule, which in
our view should be appropriate to apply now, given the factual context of
this case. In applying said principle to determine the State which has the
most significant relationship, the following contacts are to be taken into
account and evaluated according to their relative importance with respect to
the particular issue: (a) the place where the injury occurred; (b) the place
where the conduct causing the injury occurred; (c) the domicile, residence,
 Conflict of Laws Cases_Set 1 6

Hence, the error was brought by the defendant.

Northern Pacific R. Co. vs. Babcock, 154 U.S. 190 (1894) Issue:

Facts: Whether or not the amount of damage to be controlled by the law of the
place of employment and where the accident occurred (Montana), or by the
This was an action by Albert L. Babcock, as administrator of Hugh M. Munro,
law of the forum in which the suit was pending (Minnesota).
deceased, against the Northern Pacific Railroad Company, for damages for
the death of said Munro. The jury found a verdict for plaintiff, and judgment Ruling:
was entered thereon. Defendant brought error.
The law of the place of employment and where the accident occurred must
The plaintiff below, who was the administrator of the estate of Hugh M. be applied.
Munro, sued in the district court of the fourth judicial district of Minnesota to
The Court said, the statute of another state has, of course, no extraterritorial
recover $25,000 damages for the killing of Munro on the 10th day of
January, 1888, at or near a station known as Gray Cliff, on the Northern force, but rights acquired under it will always, in comity, be enforced, if not
against the public policy of the laws of the former. In such cases the law of
Pacific Railway, in the territory of Montana.
the place where the right was acquired, or the liability was incurred, will
Munro was an engineer in the employ of the railroad company at the town of govern as to the right of action; while all that pertains merely to the remedy
Livingston; that, as such engineer, he was driving engine No. 161 some time will be controlled by the law of the state where the action is brought.
in the latter part of December; that while driving the engine he discovered
”But it by no means follows that, because the statute of one state differs
that an appliance known as the 'pilot plow,' which was attached to the
from the law of another state, therefore it would be held contrary to the
engine, was out of order, and in a dangerous condition. The purpose of such
policy of the laws of the latter state. Every day our courts are enforcing
a plow is to push the snow from the track; and, if not properly braced, as
rights under foreign contracts where the lex loci contractus and the lex fori
stated by one of the witnesses, it is likely to 'rise up, and ricocde over the are altogether different, and yet we construe these contracts and enforce
drift, instead of going through it, and the natural result would be to throw rights under them according to their force and effect under the laws of the
the engine trucks from the tracks.' After Munro discovered that the plow was state where made. To justify a court in refusing to enforce a right of action
defective, he called the attention of the foreman of the shop and master which accrued under the law of another state because against the policy of
mechanic to its condition. On or about the 2d of January, Munro was taken our laws, it must appear that it is against good morals or natural justice, or
sick, and did not pursue his occupation until January 9th, when he reported that, for some other such reason, the enforcement of it would be prejudicial
for duty. At about 12 o'clock that night, while a severe snowstorm was to the general interests of our own citizens. If the state of Iowa sees fit to
raging, Munro was sent for, by messenger, to take out a passenger train. impose this obligation upon those operating railroads within her bounds, and
The train was delayed in getting away from Livingston, and left that place to make it a condition of the employment of those who enter their service,
about 2 o'clock in the morning, drawn by engine No. 161, with Munro in we see nothing in such a law repugnant either to good morals or natural
justice, or prejudicial to the interests of our own citizens.”
charge as engineer. At a place called Gray Cliff, the engine, in passing
Hence, where the contract of employment was made in Montana, and the
through a cut, capsized, and Munro was killed.
accident occurred in that state, while the suit was brought in Minnesota. We
Under the law of Minnesota where the case was filed, when the death think there was no error in holding that the right to recover was governed by
occurred, the limit of recovery in case of death was $5,000, but at the time the lex loci, and not by the lex fori.  
of the trial of the case in the court below this limit had been increased to
$10,000 by amendment of the Minnesota statutes.
 Conflict of Laws Cases_Set 1 7

source: http://aspiringlawyer.blogspot.com/2013/10/case-digest-gr-no-
92013-july-25-1990.html

Laurel vs. Garcia (G.R. No. 92013 July 25, 1990)

Salvador H. Laurel, petitioner, vs. Ramon Garcia, as head of the Asset

Privatization Trust, Raul Manglapus, as Secretary of Foreign Affairs, and Hong Kong and Shanghai Banking Corp vs. Sheman
Catalino Macaraig, as Executive Secretary, respondents.
________________________________________________________ FACTS
Facts: The subject property in this case is one of the 4 properties in Japan
acquired by the Philippine government under the Reparations Agreement  A complaint for collection of a sum of money (pp. 49-52, Rollo) was
entered into with Japan, the Roppongi property. The said property was filed by petitioner Hongkong and Shanghai Banking Corporation
acquired from the Japanese government through Reparations Contract No. (hereinafter referred to as petitioner BANK) against private
300. It consists of the land and building for the Chancery of the Philippine respondents Jack Robert Sherman and Deodato Reloj.
Embassy. As intended, it became the site of the Philippine Embassy until the  sometime in 1981, Eastern Book Supply Service PTE, Ltd.
latter was transferred to Nampeidai when the Roppongi building needed (hereinafter referred to as COMPANY), a company incorporated in
major repairs. President Aquino created a committee to study the Singapore applied with, and was granted by, the Singapore branch
disposition/utilization of Philippine government properties in Tokyo and Kobe, of petitioner BANK an overdraft facility in the maximum amount of
Japan. The President issued EO 296 entitling non-Filipino citizens or entities Singapore dollars 200,000.00
to avail of separations' capital goods and services in the event of sale, lease  both private respondents and a certain Robin de Clive Lowe, all of
whom were directors of the COMPANY at such time, executed a Joint
or disposition.
and Several Guarantee (p. 53, Rollo) in favor of petitioner BANK
whereby private respondents and Lowe agreed to pay, jointly and
Issues: Whether or not the Chief Executive, her officers and agents, have
severally, on demand all sums owed by the COMPANY to petitioner
the authority and jurisdiction, to sell the Roppongi property.
BANK under the a forestated overdraft facility.
 The COMPANY failed to pay its obligation. Thus, petitioner BANK
Ruling: It is not for the President to convey valuable real property of the
demanded payment of the obligation from private respondents,
government on his or her own sole will. Any such conveyance must be
conformably with the provisions of the Joint and Several Guarantee.
authorized and approved by a law enacted by the Congress. It requires
 defendants claim that by virtue of the provision in the Guarantee the
executive and legislative concurrence. It is indeed true that the Roppongi
Court has no jurisdiction over the subject matter of the case.
property is valuable not so much because of the inflated prices fetched by
real property in Tokyo but more so because of its symbolic value to all Issue: W/N Philippine courts have jurisdiction over the suit.
Filipinos, veterans and civilians alike. Whether or not the Roppongi and
related properties will eventually be sold is a policy determination where Held: YES. The controversy stems from the interpretation of a provision in
both the President and Congress must concur. Considering the properties' the Joint and Several Guarantee, to wit:
importance and value, the laws on conversion and disposition of property of "(14) This guarantee and all rights, obligations and liabilities arising
public dominion must be faithfully followed. hereunder shall be construed and determined under and may be enforced in
accordance with the laws of the Republic of Singapore. We hereby agree
 Conflict of Laws Cases_Set 1 8

that the Courts in Singapore shall have jurisdiction over all disputes arising
under this guarantee . . ."

 There is nothing in the Guarantee which says that the courts

of Singapore shall have jurisdiction to the exclusion of the
courts of other countries or nations. Also, it has long been
established in law and jurisprudence that jurisdiction of courts is
fixed by law; it cannot be conferred by the will, submission or
consent of the parties.
 One basic principle underlies all rules of jurisdiction in
G.R. No. 128845               June 1, 2000
International Law: a State does not have jurisdiction in the
absence of some reasonable basis for exercising it, whether the
proceedings are in rem, quasi in rem or in personam. To be INTERNATIONAL SCHOOL ALLIANCE OF EDUCATORS
(ISAE), petitioner, 
reasonable, the jurisdiction must be based on some
vs.
minimum contacts that will not offend traditional notions of
HON. LEONARDO A. QUISUMBING in his capacity as the Secretary
fair play and substantial justice.
of Labor and Employment; HON. CRESENCIANO B. TRAJANO in his
 The defense of private respondents that the complaint should capacity as the Acting Secretary of Labor and Employment; DR.
have been filed in Singapore is based merely on technicality. BRIAN MACCAULEY in his capacity as the Superintendent of
They did not even claim, much less prove, that the filing of the International School-Manila; and INTERNATIONAL SCHOOL,
action here will cause them any unnecessary trouble, damage, or INC., respondents.
expense.
 the parties did not thereby stipulate that only the courts of KAPUNAN, J.:
Singapore, to the exclusion of all the rest, has jurisdiction. Neither
did the clause in question operate to divest Philippine courts of FACTS: International School Alliance of Educators (the School) hires both
jurisdiction. foreign and local teachers as members of its faculty, classifying the same
 " . . .In a conflict problem, a court will simply refuse to entertain the into two: (1) foreign-hires and (2) local-hires.
case if it is not authorized by law to exercise jurisdiction. And even if
it is so authorized, it may still refuse to entertain the case by In which, the School grants foreign-hires certain benefits not accorded local-
applying the principle of forum non conveniens. . . ." hires including housing, transportation, shipping costs, taxes, home leave
 However, whether a suit should be entertained or dismissed on the travel allowance and  a salary rate 25% more than local hires based on
basis of the principle of forum non conveniens depends largely upon “significant economic disadvantages”
the facts of the particular case and is addressed to the, sound
discretion of the trial court (J. Salonga, Private International Law, The labor union and the collective bargaining representative of all faculty
1981, p. 49). Thus, the respondent Court should not have relied on members of the School, contested the difference in salary rates between
foreign and local-hires. 
such principle.
The Union claims that the point-of-hire classification employed by the School
is discriminatory to Filipinos and that the grant of higher salaries to foreign-
hires constitutes racial discrimination.
 Conflict of Laws Cases_Set 1 9

ISSUE: Whether or not the Union can invoke the equal protection clause to
justify its claim of parity.

RULING: Yes. The Labor Code’s and the Constitution’s provisions

impregnably institutionalize in this jurisdiction the long honored legal truism
of "equal pay for equal work." Persons who work with substantially equal
qualifications, skill, effort and responsibility, under similar conditions, should
be paid similar salaries.

"Equal pay for equal work." Persons who work with substantially equal
qualifications, skill, effort and responsibility, under similar conditions, should
be paid similar salaries. This rule applies to the School, its "international
character" notwithstanding.

If an employer accords employees the same position and rank, the

presumption is that these employees perform equal work. If the employer
pays one employee less than the rest, it is not for that employee to explain
why he receives less or why the others receive more. That would be adding
insult to injury.

The employer in this case has failed to discharge this burden. There is no
evidence here that foreign-hires perform 25% more efficiently or effectively
than the local-hires. Both groups have similar functions and responsibilities,
which they perform under similar working conditions.

While we recognize the need of the School to attract foreign-hires, salaries

should not be used as an enticement to the prejudice of local-hires. The
local-hires perform the same services as foreign-hires and they ought to be
paid the same salaries as the latter. For the same reason, the "dislocation
factor" and the foreign-hires' limited tenure also cannot serve as valid bases
for the distinction in salary rates. The dislocation factor and limited tenure
affecting foreign-hires are adequately compensated by certain benefits
accorded them which are not enjoyed by local-hires, such as housing,
transportation, shipping costs, taxes and home leave travel allowances.

Hence, the Court finds the point-of-hire classification employed by

respondent School to justify the distinction in the salary rates of foreign-hires
and local hires to be an invalid classification. There is no reasonable
distinction between the services rendered by foreign-hires and local-hires.