Professional Documents
Culture Documents
1
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Ex. French Civil Code of 1804 Spanish Civil Code enforced in the Philippines
- became the pattern for Civil Codes until 1950 contained the principles adopted from
of Spain, Belgium and Romania the French Civil Code (Code of Napoleon)
- nationality law principle (contained particularly the nationality law principle. Art 16,
in Art. 15 of our CC) was provided par. 1, which applies lex situs rule was adopted
in Art. 3 of the French Code from Art. 10 of Spanish CC while par. 2
represents the system of universal succession.
19th Century Art. 17, par. 1 follows lex loci contractus. But
there was no significant jurisprudence on the
Justice Joseph Story relied on the subject.
European continental theorists concept of
territorial sovereignty and founded conflict of Conflict of Laws was included in law curriculum
laws on the principle of comity of nations. by UP College of Law in 1911 (no less!). Until
1950s, law teachers predominantly used foreign
Frederich Carl Von Savigny law books and decisions by American courts.
- founder of modern private IL
-application of foreign law was not In the Bar, it used to be a separate subject along
due to comity but the resultant with PIL but when it was revised, PIL was
benefits for everyone concerned included in Pol Law while PRIL was merged with
- advocated situs theory (seat of Civil Law. But, this does not mean that PRIL is a
legal relationship): every element part of civil law as this mindview tends to limit
of transaction be governed by the the perspective and scope of analysis required for
law of the place with which said conflicts problems.
element has the most substantive
connection Now, more problems in Conflict have arisen esp.
with Filipinos engaging in foreign business
Pascuale Mancini transactions, and in international air transport
- advanced nationality theory in matters and foreign tort claims and labor contracts for
concerning status, capacity and private OFWs.
interests of the individual
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
One basic source of law is the 1987 Constitution Although many Hague Conventions on Private
which contains principles on nationality and International Law were concluded since 1951,
comity. which dealt with issues on:
Personal status
Special statutes were also enacted to govern Patrimonial family status
cases with foreign elements, to wit: Patrimonial status such as
agency and trusts
1. Corporation Code The Philippines is a signatory to the Convention
2. General Banking Act on Recognition of Foreign Judgment on Civil and
3. Foreign Currency System Act Commercial Matters and has ratified the 1993
4. Phil Foreign Law Guarantee Corp Convention in Respect of Inter-Country Adoption
5. Retail Business Regulation Act only.
6. Anti-Dummy Law
7. Nationalization of Rice and Corn Industry Act
8. Insurance Code C. Treatises, Commentaries and
9. IP Code Studies of Learned Societies
10. Patent Law
11. Trademark Law In interpreting statutes and codes involving CL,
12. COGSA courts resort to works of distinguished jurists and
13. Salvage Law studies of learned societies.
14. Public Service Act
15. Civil Aeronautics Act Distinguished writers in continental Europe
16. Phil Overseas Shipping Act include Huber Manreas, Savigny (whose work
17. Investment Incentives Act was translated into English by Guthrie), and
18. Export Incentives Act Weiss.
19. RA 7722
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
5
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
6
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
property within the state establishes the states has power to enter upon the inquiry, not
paramount interest in adjudicating a claim over it whether its conclusion in the course of it is
and provides the necessary minimum contacts. right or wrong.
Long-Arm Statutes
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
4) avoid global forum shopping HELD: Indian courts have JD, not US courts.
Even if UCC has domicile in the US, this loses
English and Scottish courts have applied FNC significance because it gave its consent to
when there was another available and more Indian JD. Moreover, the findings of the court
appropriate forum, in which the ends of justice show that the proof bearing on the issues to be
would be better served in view of the interests of
tried is almost entirely located in India
all parties, by eliminating the vexatious or
(principal witnesses and documents, detailed
oppressive character of the pending proceedings
and by removing any unfairness to either party designs, implementation of plans, safety
which would result from trial in the forum seized precautions, etc.).
of the case.
9
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
10
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
no showing that the book from which an f) The case involves real or personal
extract was taken was printed or published property situated in the forum
under the authority of the state of West Va. as g) The application of the foreign law
provided in the Code of Civil Procedure; nor might endanger the vital interest of
was the extract from the law attested by the the state
h) The foreign law is contrary to good
certificate of the officer having charge of the
morals
original.
V. Choice of Law
Philippine Trust Co. vs. Bohanan
(1960) A. The Correlation between
FACTS: The will of Bohanan was admitted to Jurisdiction and Choice of Law
probate; in the probate he was declared to be a
citizen of Nevada. In the hearing for the 1) The factors that justify exercise of
proposed project of partition, Nevada law was judicial jurisdiction maybe the same
not introduced. Bohanans widow questioned factors used to determine choice of
the validity of the will under Philippine law; law
however, if Nevada law was to be applied, the
2) if the forum applies its internal law
will would be valid.
because it has a real interest, the
outcome of the case will be
HELD: The law of Nevada, being a foreign foreordained by the forum
law, can only be proved in our courts in the - plaintiff will choose forum who has real
form and manner provided for by our Rules. interest in applying its internal law
However, it has been found that during the
hearing for the motion of the widow Bohanan 3) generally, forum will apply its
for withdrawal of her share, the foreign law internal law so plaintiff will bring
was introduced in evidence by her counsel. In suit where internal law is favorable
addition, the other heirs do not dispute the to him
provisions of the Nevada law. Under these
circumstances, the pertinent laws of Nevada BUT these are 2 diff. concepts. A court may
exercise jurisdiction but apply foreign law or not
can be taken judicial notice of by the court,
exercise jurisdiction but the states internal law
without proof of such law having been offered
will be applied.
at the hearing of the project of partition.
11
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
- If place of the last act creates no legal - power of a state to regulate within its
right, although forum court creates such territory has no limitation except as
right if act is done within its territory, it imposed by its own positive law
will not enforce the right. - criticism: appeals to narrow-mined who
favors an exaggerated local policy bec a
sovereign can do as they please,
Gray vs. Gray depreciating the practical and equitable
(1934) considerations that should control the
FACTS: Wife (W) sued husband (H) for case.
damages in New Hampshire where they are
residents. Accident happened in Maine. Maine
bars suit between spouses. c. Cavers Principles of
Preference
HELD: The effect of the prohibition in Maine is
- choice-of-law decisions should be made
to divest the W of any cause of action against with reference to principles of
H. If there is a conflict between lex fori and lex preference which are conceived to
loci, lex loci governs in torts in respect to the provide a fair accommodation of
legal effect and incidents of the act. conflicting state policies and afford fair
treatment to the parties.
- Cavers principles have a territorialist
The status as spouses is determined by New bias; it looks to the place where the
Hampshire law but the incidents of that status significant events occurred or where the
is governed by the law of the place of the legal relationship is centered.
transaction (Maine). - Court should:
1) scrutinize the event/ transaction
giving rise to the issue
Alabama Great Southern Railroad vs. Carroll 2) compare carefully the proffered rule
(1892) of law & the result of its application
FACTS: Carroll is an employee of Alabama with the rule of the forum & its
RR. Both are residents of Alabama. C was effect
3) appraise these results from the
injured in the course of work bec. of
standpoint of justice between the
negligence of co-EE in Mississippi. Mississippi
litigants or of considerations of
bars recovery. Alabama makes employer social policy
liable. Suit is filed in Alabama.
2. Modern Approaches
HELD: There can be no recovery in one sate
a. Place of the Most Significant
for injuries to the person sustained in another
Relationship
unless the infliction of the injuries is actionable
under the law of the state in which the injuries -identifies a plurality of factors:
were received. i. needs of the interstate and intl
Although it is claimed that the negligent system
conduct was done in Alabama, the injury ii. relevant policies of the
sustained creates the cause of action and not concerned states
the negligence. (law of the place of injury) iii. relevant policies of other
interested states
Criticisms to the Approach: failure to resolve iv. protection of justified
conflicts cases with considerations of policy and expectations of the parties
fairness. v. basic policies underlying the
particular field of law
vi. certainty, predictability and
b. Cooks Local Law Theory uniformity of result
vii. ease in the determination and
- treat conflicts cases as a purely application of law to be applied
domestic case that does not involve a
foreign element Examples of application:
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
13
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
1) predictability of results
The rule on tort claim is: 2) maintenance of interstate and intl
Where the issue involves standard of conduct, order
law of the place of the tort is controlling, but as 3) simplification of the judicial task
to other issues, court must apply the law of the 4) application of the better rule of
law
state which has the strongest interest in the
5) advancement of the forums
resolution of the issue presented.
governmental interest
- court should prefer a law that make
Criticisms to Approach: not all state legislatures good socioeconomic sense and are
publish reports that explain the background and sound in view of present day conditions
purpose of the laws, thus court is left to - Criticism: no principled or objective
speculate on the purpose of the law and not all standard to determine better rule.
reflected policy or had a purpose other than to
decide cases.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
be regulated by the National law of the person previous to husband, community property
whose succession is under consideration, belongs absolutely to husband.
whatever may be the nature of the property and
regardless of the country wherein said property HELD: California Civil Code will not apply.
may be found. (AOI) The law of the place where land is situated
governs its descent, alienation &transfer & for
Art 17: The forms and solemnities of contracts,
the effect & construction of wills & other
wills, and other public instruments shall be
governed by the laws of the country in which conveyances.
they are executed.
As mandated by Philippine law, the lands
When the acts referred to are executed before were acquired as community property in the
the diplomatic or consular officials of the Republic conjugal partnership. The wife was vested
of the Philippines in a foreign country, the with a title equal to that of her husband. Upon
solemnities established by Philippine laws shall be her death, if there are no obligations of the
observed in their execution. decedent, her share in the conjugal property is
transmitted to the heirs by succession.
Prohibitive laws concerning persons, their acts or
property, and those which have for their object
public order, public policy and good customs shall Though the court was silent on the matter of
not be rendered ineffective by laws or judgments characterization, it had the task of categorizing
promulgated, or by determinations or the issue as one involving:
conventions agreed upon in a foreign country. b) property to be governed by lex
situs, or
The rules specify geographical location in c) succession to be governed by
accordance with traditional approach. The decedents national law (California)
problem with this: inherent rigidity, unjust
decisions. Characterization problems are considered a
threat to traditional choice-of-law theories whose
Solution: Characterization, Renvoi, Escape aims are uniformity & predictability of results.
devices
Problems:
Characterization: the process by which a court
assigns a disputed question to an area in A) C, is adopted in the Philippines by a former
substantive law. It is a part of legal analysis and Filipino citizen and moves to the US with her
a pervasive problem since at least 2 jurisdictions adoptive mother, M. By Ms laws, C will not be an
with divergent laws are involved. heir. Will C be entitled to an intestate share in
Ms estate?
Two Types of Characterization: The court would have to decide whether it is a Q
relating to
1. Subject-matter 1. Legality & effects of adoption: law of
Characterization state where legal relationship of adoption was
established or where the adoption decree was
This calls for classification of a factual situation granted shall govern; or
into a legal category. It is significant in a single-
aspect method because the legal category to 2. Succession: adopters personal law
which an issue is assigned determines governing shall prevail
law
B) Principal authorizes a person to act as his
Gibbs vs. Govt. of PI agent in another country. Agent commits a
(1933) negligent act. What law will determine the
FACTS: Spouses Allison & Eva were residents principals liability?
& citizens of California owning parcels of land It depends on the courts characterization of
in Manila. Eva died. Allison, as administrator the case as:
files petition to declare lands in his favor
pursuant to California law. California Civil 1. Contractual: law of the place where
Code provides that upon wifes death the contract of agency was entered into; or
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
2. Tortious: law of the place where HELD: Survival statutes are procedural. Thus,
tortuous conduct or injury occurred California (forum) law applies. Forum law
governs if issue is procedural. Under
California Civil Code the action out of a wrong
2. Substance-Procedure resulting to a physical injury shall not abate
Dichotomy
because of the death of the wrongdoer.
Plaintiffs cause of action survives Pullens
Directs the court to the extent it will apply
foreign law. death.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
rule of substance going into existence of period for claims arising out of a contract of
contract; determined by lex loci contractus. employment is one year.
Issue: Whether a contract declared void by a HELD: Even though a law on prescription may
stature still subsists as a contract w/ the only be considered as substantial or procedural, its
effect of depriving party of a remedy or mere
characterization as either becomes irrelevant
evidence.
when the country of the forum has a
Held: It was a word of substance because the
statute provided that the contract of sale of any borrowing statute. Said statute has the
interest in land shall be void unless it was in practical effect of treating the foreign statute of
writing ex contrario to a law stating that no limitation as one of substance. Under the ROC
action shall be brought of the requirement was of the Philippines, it is provided that if by the
not complied with. laws of the state or country where the cause of
action arose, the action is barred, it is also
barred in the Philippines. The Bahrain law on
2) Statutes of Limitations (SL) & Borrowing prescription should apply. However, it cannot
Statutes be enforced as it would contravene the public
policy on the protection to labor. Philippine
Statutes of limitations are traditionally classified
law will then be applied.
as procedural because they only barred the legal
remedy w/out impairing the substantive right
involved.
B. Depecage
Thus, a suit can still be maintained in another JD
From depecer, which means to dissect.
w/c has a longer SL. However, certain SLs have
been classified as substantive for conflicts
Different aspects of a case involving a foreign
purposes if providing a shorter period for certain
element may be governed by different systems of
claim types falling w/in wider class covered by
laws.
the general SL.
Von Mehren & Trautman: A man dies intestate
Specificity test: to determine whether an SL is
domiciled in state A & w/ movable properties in
substantive or procedural.
State B.
An SL of a foreign country is treated as
How will the mans estate be divided?
substantive when limitation was directed to
State A conflict rules refer to laws of domicile.
newly created liability so specifically as to
Intestate law of State B gives the widow a
warrant saying that it qualified the right
definite share in the estate of deceased. But the
determination of WON the woman claiming the
share is a wife is referred to family law, not
Borrowing statutes
laws on succession.
Purpose: Many states, the Philippines among
others, have passed borrowing statutes to
Issues of law governing movable properties &
eliminate forum-shopping.
successional rights of spouse are of primary
importance, embodying substance of claim.
However, in the case of Cadalin, the court said
Validity of marriage affects solution because it
that to enforce the borrowed statute would
answers a preliminary or incidental Q.
contravene public policy on protection of labor.
The presence of an incidental Q is one instance
which calls for the employment of depecage.
Cadalin vs. POEA Administrator
(1994)
Merits of Depecage:
FACTS: Cadalin et al. instituted a class suit
This technique allows other relevant interests of
with the POEA for money claims arising from parties to be addressed. Thus, it permits courts
their recruitment by AIBC and BRII for to arrive at a functionally sound result w/out
pretermination of employment contracts. rejecting the methodology of the traditional
Under Bahrain law where some of the approach. This nuanced single-aspect method
complainants were deployed, the prescriptive employs depecage by choice.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
2) the court may accept the renvoi and Annesley, Davidson vs. Annesley
refer not just to another states (1926)
internal law but to the whole law FACTS: The testatrix, a British subject, was a
(includes choice-of-law rules applicable domiciliary of France according to British law,
in multi-state cases) but not according to French law. She made a
will in English form. In the will she disposed
of all her property in favor of her daughter,
Aznar vs. Garcia
and stipulated that she had no intention of
(1963)
abandoning her domicile in England. If she
FACTS: The will of Edward Christensen, a
was a domiciliary of France, she could only
domiciliary of the Philippines, was admitted to
dispose of 1/3 of her personal property.
probate, and a project of partition was
proposed. Edwards illegitimate child opposed
HELD: The domicile of the testatrix at the time
the project of partition on the ground that the
of her death was French. Applying English
distribution of the estate should be governed
law, the fact of her residence in France coupled
by Philippine law. The lower court found that
with animus manendi showed her intention to
Edward was a US citizen; hence the
abandon her English domicile even if she had
successional rights and intrinsic validity of the
not complied with the formalities required
will should be governed by California.
under French law to become a French
domicile.
HELD: Philippine law should apply. Art. 16 of
the Phil. Civil Code provide that the national
According to French municipal law, the law
law of the decedent governs the validity of his
applicable in the case of a foreigner not legally
testamentary dispositions. Such national law
domiciled in France is the law of that persons
means the law on conflict of laws of the
nationality, which is British. But British law
California code, which authorizes the
refers the question back to French law, the law
reference or return of the question to the law
of the domicile. And according to French law,
of the testators domicile. The conflict of laws
the French courts, in administering the
rule in California precisely refers back the case,
movable property of a deceased foreigner
when a decedent is not domiciled in
who, according to the law of his country is
California, to the law of his domicile (the
domiciled in France, and whose property
Philippines in the CAB). The Phil. court must
must, according to that law, be applied in
apply its own law as directed in the conflict of
accordance with the law of the country in
laws rule of the state of the decedent.
which he was domiciled, will apply French
municipal law, even if he had not complied
3) by desistance or mutual disclaimer of JD with the French requirements for acquisition
the same result as the acceptance of of domicile.
the renvoi doctrine but the process used
by the forum court is to desist applying
the foreign law.
Options which the forum court may do:
4) foreign court theory the forum court a) accept the renvoi (apply forum law)
would assume the same position the b) reject the renvoi (apply the internal law
foreign court would take were it litigated of the foreign state)
in the foreign state c) desistance/mutual disclaimer
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
20
COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
HELD: Connecticut and New Jersey law both In US, courts are allowed to take judicial
allow passenger-guest recovery. It appears knowledge of the law of sister states.
that Connecticuts substantive law allowing a
guest to recover form his hosts ordinary
B. Proof of Foreign Law
negligence would give it a significant interest
in having that law applied to this case. Since
Foreign law may be proved by presenting either
Iowa has no interest in this litigation, and since of the ff:
the substantive laws of Connecticut and New 1. an official publication of the law
Jersey are the same, this case presents a false 2. a copy of the law attested by the officer
conflict and the Connecticut plaintiff should having legal custody of the record or by
have the right to maintain an action for his deputy. If the record is not kept in
ordinary negligence in New Jersey. the Philippines, it must be accompanied
with a certificate that such officer has
the custody (by the consular officer of
Bellis vs. Bellis the Phil embassy in said state and
(1968) authenticated by his seal of office)
FACTS: The probate of the will of Texas citizen
and domiciliary Amos Bellis was opposed by Proof of documents executed abroad: any public
his 3 illegitimate children in the Philippines for document executed abroad to be used in the
depriving them of their compulsory legitime. Phils must be duly authenticated by the Phil.
However, the trial court ruled that under Art. consul attaching his consular seal
16 of the Phil. Civil Code, the national law of Depositions of non-residents in a foreign country:
the decedent is to be applied in testamentary they may be taken
succession. The law of Texas did not provide
1) on notice before a secretary of embassy
for legitimes.
or legation, consul general, consul, vice-
consul, or consular agent of the Phils.
HELD: Texas law should apply. The decedent
was both a national and a domiciliary of Texas, 2) before such person or officer as may be
so that even assuming Texas has a conflict of appointed by commission or under
law rule providing that the law of the domicile letters rogatory.
should govern, the rule would not result in a
reference back (renvoi) to Philippine law, but 3) before such person which the parties
would still refer to Texas law. have stipulated in writing
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
a. they are well and generally HELD: Because of failure to prove the foreign
known law, plaintiff loses.
b. they have been actually ruled Plaintiff has the burden of proving the law of
upon in other cases before it and Saudi Arabia from which he shall base his
none of the parties claim claim because under NewYork law, where
otherwise action was instituted, lex loci delicti is the
substantive la applied in tort cases.
A court abuses its discretion under the New York
In Re Estate of Johnson Civil Practice Act if it takes judicial notice of the
(1918) foreign law when it is not pleaded esp. when the
FACTS: In the hearing for the probate of the party who had the burden to prove the same has not
will of J, alleged to be made in accordance assisted the court in judicially learning it.
with the laws of Illinois, TC judge took judicial
The applicable tort principles necessary to
notice of the said foreign law.
establish plaintiffs claim are not
rudimentary. In countries where common
HELD: Trial court judge erred in taking
law does not prevail, these principles may
judicial notice.
not exist or maybe vastly different.
The judge cannot take judicial notice of the
acts of the Legislative Department of US
particularly the various laws of the Second approach: apply forum law, conclude that
American states. parties acquiesce to its application.
Likewise, Phil. courts cannot take judicial
notice of the same under matters of Leary vs. Gledhill
public knowledge. (1951)
The proper rule is to require proof of the FACTS: Leary instituted this action in New
Statute whenever it is determinative of the Jersey to recover the loan contracted in France
issue/s in Phil. courts. against G. G moved to dismiss on the ground
that Ls proof were insufficient as there is no
pleading or proof of the law of France where
Effects of Failure to Plead and Prove Foreign Law
the transaction occurred.
Forum court may:
1. dismiss the case for inability to establish HELD: L can recover despite failure to prove
cause of action French law. Altho the court recognizes the fact
that France adopts civil law rather than
2. apply law of the forum (courts conclude that common law principles, the cause of action of
by failing to adduce proof, parties acquiesce L may still be pursued, as there are 3
to the application of the forum law since it is presumptions that the court may apply in the
the basic law) CAB. These are:
1, French law is the same as law of the
3. assume foreign law is the same as law of the forum
forum (processual presumption)
2. French law, like all civilized countries,
recognizes certain fundamental
First approach: Dismiss the case principles (taking of a loan creates
obligation to repay)
3. By failing to prove French law, parties
Walton vs. Arabian Oil Co. acquiesce to apply forum law
(1956) The third presumption does not present any
FACTS: Walton, US citizen, was injured in difficulties for it to be universally applied
Saudi Arabia. His complaint did not allege the regardless of the nature of the controversy.
Saudi Arabia law nor did he proved the same This is more favored by the authorities and has
during the trial. TC ruled in favor of defendant been followed in Sturm v. Sturm.
as he did not take judicial notice of S. Arabian In CAB, Rights of the parties are to be
law. determined by New Jersey laws which permit
recovery on the facts proven.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
Problem: courts are tasked to characterize the 6. The application of Foreign law
problem as to whether it is substantive or will work Undeniable Injustice
procedural law which can be difficult at times, ex. to the Citizens of the Forum
If issue involves statute of limitations or statute
of frauds
7. The Foreign law is Penal in
Character
3. Issues are related to property
(lex situs) Statute is not penal not by what the statute is
called by the legislature but whether it appears,
The universally-accepted rule is that as to in its essential character and effect, a
immovable property, it is governed by the law of punishment of an offense against the public.
the place where it is located.
Penal statutes are all statutes which command or
Phil Civil Code also applies lex situs to personal prohibit certain acts, and establish penalties for
property. It also applies to cases of sale, their violation and even those which, without
exchange, barter, mortgage or any other form of expressly prohibiting certain acts, impose a
alienation of property. penalty upon their commission. Revenue laws are
not classed as penal laws although there are
WHY? 3 reasons: authorities to the contrary.
a. land & its improvements are within the
exclusive control of the State & its This exception is partly remedied under the
officials are the ones who can physically international law of extradition on the basis of
deal with them jurisdictional cooperation and assistance.
b. following a policy-centered approach,
immovables are of greatest concern to
the state in which they are situated 8. The application of the Foreign
c. demands of certainty & convenience law might endanger the Vital
Interests of the State
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COURSE OUTLINE IN CONFLICTS OF LAW
By: Atty. Enrique V. dela Cruz, Jr.
The need for personal law arose w/ Italian This notion that a persons private rights should
Medieval city states. Domicile was the only be determined by his political allegiance & not by
relevant basis for personal law. his physical location, owes its origin to the
Law of nationality first used in Napoleon Code, awareness of national identity born in the French
then in Austrian Code, which said that laws revolution,
concerning states & capacity govern all cities
irrespective of residence.
B. Determination of Nationality
Merits & Demerits of Nationality as Personal Law Each state has prerogative to determine who are
its nationals or citizens by its own municipal law.
Merits:
1) used to establish link b/w individual & The Hague Convention on Conflict of National
state, because laws of each state laws: It is for each state to determine who are
presumed to be made for an its nationals. This shall be recognized insofar as
ascertained population . consistent w/ intl. convention, intl. customs, &
the principles of law generally recognized w/
-since laws considered physical, moral regard to nationality.
qualities of citizens, laws should apply to
citizens wherever they are Art 2. Hague Convention: Question on possession
of nationality of a particular state shall be
2) an individuals nationality is easily determined in accordance w/ the law of that
verifiable from documents. state.
Phil SC: Nationality law theory is a conflict of jus soli: looks to the law of the place of ones
laws theory by virtue of which JD over the birth to determine ones nationality (followed in
particular subject matter affecting a person, such many common law countries).
as status of a natural born person, is determined
by the latters nationality. jus sanguinis: rule of descent or blood. Followed
in the Philippines, articulated in the Constitution.
Art 15 CC expresses the nationality principle.
Art 15: Laws relating to family rights & duties, or Natural born citizens: citizens of the Philippines
to status, condition & capacity of persons are from birth w/out having to perform any act to
binding upon citizens of the Philippines even acquire or perfect citizenship.
though living abroad.
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But SC held that petitioner must prove he has Philippines (Sec. 11, Com. Act No. 473,
none of disqualifications. amended)
3) applicants conduct of keeping wife and 2) those who have resided continuously in
children in a neighboring country and the Philippines for a period of thirty
only visiting them (lack of sincere desire years or more before filing their
to embrace Filipino customs and application
traditions)
3) the widow and minor children of an
4) if it is not fully established that applicants alien who declared his intention to
nation grants reciprocal rights to Filipino become a citizen of the Philippines and
citizens dies before he is actually naturalized.
d) If the petition is approved, there will be Section 15, C.A. 473 states that::
a rehearing two years after the Any woman who is now or may hereafter be
promulgation of the judgment awarding married to a citizen of the Philippines, and who
naturalization (Sec. 1, Rep., Act No. might herself be lawfully naturalized shall be
530) deemed a citizen of the Philippines.
e) The last step will be the taking of the Minor children of persons naturalized under this
oath of allegiance to support and defend law who have been born In the Philippines shall
the Constitution and the laws of the be considered citizens thereof.
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A foreign-born minor child, if in the Philippines at residence for 10 years in the Philippines
the time of naturalization of the parent, shall (actual stay: Oct. 16 60 June 62)
automatically become a Philippine citizen, and a
foreign-born minor child, who is not in the As to the children: The law requires that they
Philippines at the time the parent is naturalized, must be dwelling in the Philippines at the time
shall be deemed a Philippines citizen only during
of the naturalization of the parent. Since prior
his minority, unless he begins to reside
to their fathers naturalization, they were
permanently in the Philippines when still a minor,
in which case, he will continue to be a Philippine already required to leave the country, they
citizen even after becoming of age. cannot be said to be lawfully residing here.
A child born outside of the Philippines after the Also, they cannot be allowed to extend their
naturalization of his parent shall be considered a stay. The period of stay of temporary visitors
Philippine citizen, unless within one year after cannot be extended without first departing
reaching the age of majority, he fails to register form the Islands. They cannot also claim that
himself as a Philippine citizen at the American they should be allowed extension until the
Consulate of the country where he resides, and fathers oath taking because their allowed stay
to take the necessary oath of allegiance. was for a definite period up to a fixed day.
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But the rule was relaxed in later decisions. A have waited for such or seek naturalization by
petition for correction of errors in the entry of the legislative or judicial process.
Civil Registry even for a change of citizenship or
status may be granted provided that an Frivaldo vs. COMELEC
appropriate action is made wherein all parties (1996)
who may be affected by the entries are notified FACTS: Frivaldo took his oath of allegiance
and represented and there is a full blown
under PD 725 on June 30 95, much later than
adversary proceeding.
he filed his certificate of candidacy. He now
Tan Yu vs. Republic: There can be no action or claims Filipino citizenship through a valid
proceeding for the judicial declaration of the repatriation
citizenship of an individual.
HELD: Frivaldo reacquired his Filipino
D. Loss of Philippine Citizenship citizenship and is now eligible to assume the
office as governor. Law does not specify any
CA 63, as amended by RA 106, provides that a particular date or time when candidate must
Filipino citizen may lose his citizenship in any of possess citizenship unlike that of residence
the following ways:
and age. It can also be said that Frivaldos
1) Naturalization in foreign countries repatriation retroacted to the date of his filing
his application in Aug. 1994.
Frivaldo vs. COMELEC
(1989) Labo vs. COMELEC
FACTS: Frivaldo was elected governor of (1989)
Sorsogon and assumed office. The League of FACTS: Labo was elected mayor of Baguio.
Municipalities of Sorsogon filed for annulment Lardizabal filed a petition for quo warranto
of his election on the ground that he is a US alleging that Labo is not a citizen.COMELEC
citizen and therefor incapable of holding declared that he was a citizen but the CID
public office. Frivaldo admitted that he was a ruled that he is not since the Australian Govt
naturalized US citizen in 1983 but he said that he is still a naturalized Australian
underwent naturalization only to protect citizen.
himself from then Pres. Marcos. Sol Gen
supported respondents contention that he is a HELD: Labo is not a citizen of the Phils
US citizen because he did not repatriate because he lost the same by performing the ff
himself after his naturalization in the US acts under CA 63:
1. naturalization in a foreign country
HELD: Frivaldo lost his Filipino citizenship. If 2. express renunciation of citizenship
Frivaldo really wanted to disavow his US 3. subscribing to an oath of allegiance to
citizen citizenship & reacquire Phil. support the Consti and laws of a foreign
citizenship, he must do so under our laws. country.
Under CA 63, Phil. citizenship may be
reacquired through: Even if it is to be assumed that his
1. direct act of Congress naturalization was annulled because his
2. naturalization marriage to an Australian was found to be
3. repatriation bigamous, this does not automatically restore
his citizenship. He must reacquire it by direct
The alleged forfeiture of US citizenship act of Congress, by repatriation or by
because of his active participation in the naturalization. None of these methods were
elections is between him and the US; it could done. Under PD 725, repatriation may be done
not have resulted to automatically restoring by applying with the Special Committee on
his Filipino citizenship which he earlier Naturalization and if the application is
renounced. At most, he could be said to be a approved, applicant must make an oath of
stateless individual. Also, although the Special allegiance to the Republic of the Phils before a
Committee to hear repatriation cases under certificate of registration is issued by the CID.
LOI 270 has not yet been convened, F should
2) Express renunciation of citizenship
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here although he is actually present because FACTS: Velilla, the administrator of the estate
his allowed stay as a visitor is only temporary of Moody, appealed the inheritance tax
and he must leave when the purpose of his assessed against the estate on the ground that
coming is done. the decedent was not domiciled in the
Philippines. Moody went to Calcutta and Paris
before his death, and he died in India.
In re Dorrances Estate
(1932) HELD: He was a domiciliary of Manila.
FACTS: Dorrance was born in Pennsylvania. Domicile in the Civil Code is defined as the
He worked and resided in New Jersey, place of habitual residence, which was Manila
transferred to Philadelphia and then returned in the CAB. There was no statement from
to New Jersey. Later he was able to buy an Moody, oral or written that he adopted a new
estate in Pennsylvania, where he stayed with domicile while he was absent from Manila. To
his family until his death. During his lifetime establish abandonment, he must show his
he expressed that he intends to remain a deliberate and provable choice of new
domiciliary of New Jersey. Pennsylvania domicile coupled with actual residence and
assessed inheritance tax on his estate. declared or proved intent that it should be his
permanent abode. This was not proven.
HELD: He was domiciled in Pennsylvania at
the time of his death. A man cannot retain a
domicile in one place when he has moved to White vs. Tennant
another, and intends to reside there for the rest (1888)
of his life, by any wish, declaration or intent FACTS: White and his wife lived in West
inconsistent with the facts of where he actually Virginia, but agreed to sell their house there
lives and what he means to do. with the declaration, intent and purpose of
making Pennsylvania their home. Upon
reaching Penn., they had to go back to West
D. Kinds of Domicile Va. on account of the wifes illness but White
went to Penn. everyday to look after his stock.
3 Kinds of Domicile: Upon his death, the administrator paid the
whole of the estate to the widow according to
1) Domicile of origin: a persons domicile at West Va. law. However, if Penn. law was
birth. A legitimate childs domicile is that applied, of the estate would go to Whites
of his father, while an illegitimate childs
siblings. The law of his domicile governs the
is that of his mother.
distribution of his estate.
2) Domicile of choice: also called voluntary
domicile, is the place freely chosen by a HELD: Pennsylvania was his domicile at the
person sui juris. There must be time of his death. Two things must concur to
concurrence of physical presence in the establish domicilethe fact of residence, and
new place and unqualified intention to the intention of remaining. These two must
make that place ones home. exist in combination. When one domicile is
definitely abandoned, and a new one selected
A problem deciding the issue of domicile of and entered upon, length of time is not
choice is the degree of permanence of abode. important; one day will be sufficient, provided
the animus exists.
Difference between domicile of origin and
domicile of choice: lies in a) conditions necessary
for abandonment and b) capacity for revival.
3) Constructive domicile: domicile assigned
Reverter or revival doctrine: presumption that to persons incapable of choosing their
domicile of origin revived once the domicile of own domicile by operation of law.
choice is given up, before a new one is required. Includes minors, mentally disabled,
married women.
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COURSE OUTLINE IN CONFLICTS OF LAW
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automatically changes when their fathers Married Women: based on the concept of unity
domicile changes. Minors take the domicile of of identity of spouses, the wife was presumed to
their mother upon the death of their father. take the domicile of the husband.
1) domicile of people kept under physical HELD: The minor children cannot enter the
or legal compulsion Philippines. A Chinamans Chinese wife and
her minor children do not enter the Philippine
2) domicile of married women seeking to Islands through their own right, but by virtue
acquire separate domicile from their of the right of the husband and father. Since
husbands Tan Bon did not enter the Philippines by her
own right but by virtue of her husband, she is
People under Compulsion: traditional view is that not entitled to bring in her minor children by
he is in that place not as a result of his volition.
another Chinaman who never had legal
Examples are military personnel, prisoners and
residence in the Archipelago. The mere fact of
people with disabilities who are confined in
institutions. their being children of Tan Bon confers on
them no right of entry, inasmuch as she herself
did not enter of her own right, and they cannot
Caraballo vs. Republic base their right on hers.
(1962)
FACTS: Caraballo, an American staff sergeant
in the US Air Force stationed in Clark Air Base, De La Vina vs. Villareal and Geopano
filed a petition for adoption of a Filipino child. (1920)
The petition was denied on the ground that he FACTS: Geopano filed a complaint in CFI
was not qualified to adopt, him being a non- Iloilo against de la Vina, her husband, for
resident alien. divorce on the ground of infidelity. De la Vina
opposed, saying that CFI Iloilo has no JD over
HELD: Actual or physical presence or stay of a the case considering that he resides in Negros,
person in a place, not of his free and voluntary such that Geopano must also be considered a
choice and without intent to remain there Negros resident, because the domicile of the
indefinitely, does not make him a resident of wife follows that of the husband.
the place. Caraballo is disqualified to adopt
because he is a non-resident alien. His stay in HELD: CFI Iloilo has JD. Where the husband
the Philippines is only temporary, and is has given cause for divorce, the wife may
merely the result of his assignment as staff acquire another and separate domicile from
sergeant. that of her husband.
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COURSE OUTLINE IN CONFLICTS OF LAW
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Includes both condition and capacity Status once established by the personal law of
Embraces matters as the beginning and the party, is given universal recognition.
end of personality, capacity to have
rights, capacity to engage in legal Status, capacity, and rights and duties, brought
transactions, protection of personal into existence by State A and conferred in a
interests, family relations, also natural or juridical person under its jurisdiction,
transactions of family law such as should be recognized by State B, without any
marriage, divorce, separation, adoption, exception or qualification imposed by the latter,
legitimation and emancipation, and except by some definite or protected rule of
succession. municipal law.
Juridical capacity: fitness of a man to be the - Aliens can sue and be sued in our courts
subject of legal relations even on issues relating to status and
capacity. However, the applicable law is their
Capacity to Act: power to do acts with legal personal law.
effects
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COURSE OUTLINE IN CONFLICTS OF LAW
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Art. 41, CC The absentee shall not be presumed dead for the
For civil purposes, the fetus is considered born if purpose of opening his succession till after the
it is alive at the time it is completely delivered absence of 10 years. If he disappeared after the
from the mothers womb. However, if the fetus age of 75 years, an absence of 5 years shall be
had an intra-uterine life of less than 7 months, it sufficient in order that his succession may be
is not deemed born if it dies within 24 hours after opened.
its complete delivery from the maternal womb
Art. 391, CC
Geluz vs. CA: SC did not allow for recovery of
damages for the injury and death of a conceived The ff. shall be presumed dead for all purposes,
child which is still in the mothers womb. Art. 40 including the division of estate among the heirs:
cannot be invoked since it expressly limits the (1) a person on board a vessel lost during sea
provisional personality by imposing the condition voyage, or an airplane which is missing, who
that the child should be subsequently born alive. has not been heard of for 4 years since the
Civil personality is commenced at birth and is loss of the vessel or airplane.
extinguished by death. A declaration of death (2) A person in the armed forces who has taken
issued by a competent court is considered valid part in war and has been missing for 4 years
for all purposes. (3) A person who has been in the danger of
death under other circumstances and his
existence has not been known for 4 years
Limjoco vs. Intestate Estate of Fragante: HELD:
SC ruled that the estate of a deceased applicant However, for specific purposes, our laws require
can be granted a CPC to avoid injustice or that a declaration of death be issued before
certain legal effects of death arise ex. Contracting
prejudice resulting from the impossibility of
a subsequent marriage but the periods are
exercising such legal rights & fulfilling such
reduced to 2 years.
legal obligations of the decedent as survived
after his death unless the legal fiction, that the
The legal effects of absence and restrictions on
estate is considered a person, is indulged. his capacity are determined by his personal law.
D. Absence E. Name
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COURSE OUTLINE IN CONFLICTS OF LAW
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courts have allowed petitions on grounds that the HELD: Illinois law should apply. Matters
name bearing upon the execution, interpretation and
validity of a contract are determined by the
1. is ridiculous or tainted with dishonor or law of the place where the contract is made.
extremely difficult to pronounce
2. when the change is necessary to avoid
confusion
This case should have been resolved as a
3. when the right to a new name is a
capacity case instead of as a contract case
consequence of change in status
(characterization).
4. a sincere desire to adopt a Filipino name to
erase signs of a former alien nationality
which unduly hamper social and business life
PART FOUR: CHOICE OF LAW PROBLEMS
Confusion as to ones paternity has been held to
justify the courts denial of a petition for change
of name. XII. Choice of Law in Family Relations
Whether an aliens change of name is valid Man & woman may decide to marry in a country
depends solely on his personal law. other than that of their nationality & come home.
Issue of validity of marriage & legal
consequences may be raised (Legal
F. Age of Majority consequences such as personal & property
relations, status & rights of children, use of
The legal disability and rights attached to surname & right to inherit).
minority are aspects of personal status. It is the
individuals personal law which determines Family law is an area of substantive law which
whether he has reached the age of majority. reflects strong policies of state often based on
values highly held by society. Family relations
RA 6809 lowered the age of majority from 21 give rise to grave individual & societal concerns.
18 years but parental consent for contracting
marriage is still required until the age of 21.
A. Marriage
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COURSE OUTLINE IN CONFLICTS OF LAW
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4) a permanent union unless one party 2) Valid marriage license except in cases
dies, or marriage is annulled or declared provided in Ch 2 of this title
void in special circumstances 3) Mariage ceremony w/c takes place w/
5) cannot be abrogated, amended or the appearance of contracting parties
terminated by one or both parties at will before the solemnizing officer & their
6) nature & consequences as well as personal declaration that they take each
incidents are governed by law & not other as husband & wife in the presence
subject to stipulation by parties unlike of not less than 2 witnesses of legal age
ordinary contracts
7) violation of marital obligations may give Lex Loci Celebrationis (expressed in Art 26 FC):
rise to penal or civil sanctions while All marriages solemnized outside the
breach of conditions of ordinary contract Philippines in accordance w/ the laws in force in
can be ground for an action for the country where they were solemnized, and
damages valid there as such, shall also be valid in this
country
1. Philippine Policy on
Marriage and the Family
Adong vs. Cheong Seng Gee
Art XV. Sec. 2: Marriage as an inviolable social (1922)
institution, is the foundation of the family & shall FACTS: The late Cheong Boos estate is being
be protected by the state. claimed by Cheong Seng Gee, who says that he
is the legitimate child of the decedent with Tan
Presumption of validity: The Philippines Dit, whom the decedent allegedly married in
establishes a presumption of validity to give
China.
stability to marriage especially in Conflicts of Law
problems.
HELD: The validity of the Chinese marriage
Art 220. CC. In case of doubt, all presumptions cannot be recognized. There is no competent
favor the solidarity of the family. Thus every testimony what the laws of China in the
intendment of law or facts lean toward the Province of Amoy concerning marriage were
validity of marriage, the indissolubility of in 1895. There is lacking proof so clear, strong
marriage bonds, legitimacy of children, the and unequivocal to produce a moral
community of property during marriage conviction of the existence of the alleged
Chinese marriage.
Goal: Guide courts, strengthen family, &
emphasize state interest in its preservation
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COURSE OUTLINE IN CONFLICTS OF LAW
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Exceptions to Lex Loci celebrationis: The Civil Philippine Law sets the following substantive or
Code (Art 71) enumerates bigamous, polygamous essential requisites:
or incestuous marriages as exceptions to the lex
loci celebrationis rule.
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COURSE OUTLINE IN CONFLICTS OF LAW
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Matrimonial consent: Parties are, at least, not 3) one of spouses had not attained the
ignorant that the marriage is a permanent union. minimum age required for marriage nor
acquired the necessary dispensation
Mixed marriages: the law that governs
substantive validity is national law of parties. 4) one of the spouses did not have the
mental capacity to consent
Art 38. FC.: Though valid in a foreign country
certain marriages may be void in the Philippines 5) one of the spouses did not freely
on grounds of public policy, such as the ff: consent to the marriage
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The state may resort to ultimate escape device- 1) aliens - submission of a certificate of
contravention of a public policy to w/hold legal capacity to contract marriage
recognition of validity of a foreign marriage. issued by diplomatic/consular office
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COURSE OUTLINE IN CONFLICTS OF LAW
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There is no law guaranteeing aliens married to other a foreigner? It would still be governed by
Filipino citizens the right to be admitted, much Philippine law.
less to be given permanent residency, in the
Philippines. Change of nationality after Marriage
If one or both spouses change nationality
The fact of marriage by an alien to a citizen subsequent to marriage, property regime remains
does not withdraw her from operation of unchanged because of principle of immutability.
immigration laws governing admission &
exclusion of aliens. Marriage of an alien woman Hague Convention on Matrimonial Property
to Filipino citizen does not ipso facto make her a Regimes. Art 7: The applicable law continues
Filipino citizen & does not excuse her from her notwithstanding any change of their nationality
failure to depart from the country upon or habitual residence.
expiration of her extended stay here as alien.
Restatement 2nd: The wife who lives w/ her extrinsic validity: refers to formal requisites,
husband has the same domicile as his unless apply lex loci celebrationis
special circumstances of wife make such result
unreasonable. intrinsic validity: refers to essential requisites,
apply personal law of the parties
But, in Ch VIII on Domicile, some legal
authorities consider the assignment of In Adong and Wong Woo Yu, the Court
constructive domicile to the wife as invidious did not apply the Philippine policy of
discrimination on basis of gender. presumption of validity of marriage.
Question: is a proxy marriage between
Property Relations of Spouses Filipinos in a state allowing such
marriages valid? Pangalangan: Yes,
Hague Conventions on law Applicable to because it is merely a formal requisite
Matrimonial Property: The internal law (lex loci celebrationis apply)
designated by spouses before marriage or in ________________
absence thereof the internal law of state in w/c
both spouses fix their habitual residence is the
governing law on matrimonial property regimes. B. Divorce and Separation
Art 80. Family Code: In the absence of a contrary Divorce: Absolute or Limited
stipulation in a marriage settlement, property
relations of spouses shall be governed by Absolute: termination of legal relationship b/w
Philippine laws, regardless of the place of the spouses by an act of law.
celebration of the marriage & their residence.
Limited: (Legal separation) separation form bed
This rule shall not apply: & board w/c does not effect the dissolution of
marital ties. But it modifies the incidents of
1) If both spouses are aliens marriage by relieving spouses of duty of living
w// each other.
2) With respect to the extrinsic validity of
contracts affecting property not situated This does not necessarily affect economic rights
in the Philippines & executed in the & duties since the court may order one to provide
country where the property is located for support. For such purpose, it is essential that
court has JD over respondent spouse & the
3) With respect to the extrinsic validity of property sought to be affected by decree.
contracts entered into in the Phil but
affecting property situated in a foreign
country whose laws require different Local law governs legal consequences of divorce
formalities for its extrinsic validity of spouses, nationals of same country, who
marry, are domiciled & divorce.
Art 80 generally follows lex rei sitae.
If any of above factors connected to another
What law will govern the property relations of state conflicts problem arises.
spouses where one is a Filipino citizen 7 the
Divorce jurisdiction:
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COURSE OUTLINE IN CONFLICTS OF LAW
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Basis of JD of some countries: Domicile of one of o Provision is to remedy the uneven status
the parties or matrimonial domicile of Filipino nationals whose alien spouses
obtained divorce abroad & remarried
Ratio: Divorce, being a matter of state concern, while the Filipino spouse remained
should be controlled by law of place w/ w/c married to them in eyes of Philippine
person is most intimately concerned, place where law.
he dwells.
Due process requires that forum court have a Tenchavez vs. Escao
substantive contact w/ the relationship w/c it will (1965)
decide won to dissolve. FACTS: Vicenta and Pastor were married
without the knowledge of her parents. Vicenta
Hague Convention Relating to Divorce & went to the US to obtain a divorce, which was
Separation: The granting of divorce or separation granted by the Nevada Court; she married an
must comply w/ the national law of spouses &
American and subsequently acquired
the law of the place where the application for
American citizenship. Pastor sued Vicenta for
divorce is made.
legal separation and damages. Vicentas
Some laws in PRiL have made defense is that there was a valid divorce issued
by the Nevada court.
1) the right to separation or divorce
depend on the national law of the HELD: The divorce decree obtained in the US
spouses & is not valid, because at the time it was issued,
Vicenta, like Pastor, was still a Filipino citizen.
2) grounds for divorce subject to law of She was then subject to Philippine law.
forum Philippine law cannot recognize a foreign
provided the parties were domiciled there.
decree of absolute divorce between Filipino
citizens, for this would violate declared public
Grounds for divorce are dictated by lex fori.
Thus, many states refuse to recognize foreign policy.
grounds for divorce unless it corresponds w/ a
ground justified by forum law. This is followed
whether the traditional or policy centered choice Van Dorn vs. Romillo
of law approach is used. (1985)
FACTS: Van Dorn, a Filipina, married
American Upton. Ten years later they were
divorced in the US; subsequently, van Dorn
remarried. Upton filed an action against Van
1. Divorce decrees obtained Dorn in the Philippines, asking for an
by Filipinos accounting of certain alleged conjugal
properties.
Divorce decrees obtained abroad have no
validity, not recognized in Philippine jurisdiction.
HELD: The divorce decree is valid and
BUT a marriage b/w a Filipino & a foreigner is binding upon Upton. Even if divorce is not
susceptible to divorce if the divorce was validly valid in the Philippines for being contrary to
obtained by the alien spouse (Art 26 par 2). public policy, only Philippine nationals are
covered by the policy against absolute
Effects: divorces. Aliens may obtain divorces abroad,
1. alien is capacitated to remarry which may be recognized in the Philippines
2. Filipino spouse shall likewise have the provided valid according to their national law.
capacity to remarry under Philippine law
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In the PHILIPPINES:
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It is a judicial act w/c creates b/w 2 persons a o RA 8552 (Domestic Adoption Act Of
relationship similar to that w/c results from 1998)
legitimate paternity & affiliation.
These two introduced significant changes in
Early societies considered it as a means of adoption law.
perpetuating a house or cult threatened by
extinction. Change Pertinent to Conflict Law
Original purpose: solace for childless or people 1) Aliens who have resided in the
who lost children Philippines for 3 years prior to the date
of filing the application for adoption,
Recent time: broader, more humane aim and maintains residency until decree of
adoption is granted QUALIFIED TO
Social & moral purpose: extend protection of ADOPT
society (in the person of adopter) to the orphan.
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Effects Of Adoption
2) Other requirements:
a) certification of legal capacity What law governs rights of adopted child & other
b) certification that the State law effects of legal adption? (law that governed the
would allow entry of the creation of adoption)
adoptee as an adopted child of
the adopter. 2 different legal orders depending on which law
governed the creation of adoption:
These other requirements may be waived if the
adoptee is related by consanguinity or affinity to 1) If Personal law of adopter applied
the same law governs effects of adoption.
o adopter, or
o his/ her spouse as specified by law. 2) If personal law of child appliedsuch
law will cease to regulate the resulting
RA 8043: parent-child relations; it will yield to the
Before this, adoption of Filipino children by personal law of adopting parents.
foreigners was done pursuant to Rules &
Regulations on Foreign Adoption & bilateral Philippine courts:
agreements. o Adoption relates to a civil rights of
adopted child
RA 8043 regulate the adoption of Filipino children o Does not effect changes in political
by rights, including eligibility to acquire
o aliens, or adopters citizenship
o Filipino citizens permanently
residing abroad. In the Philippines, principles of enforcement &
recognition of a foreign judgment governs,
RA 8043 was passed in compliance with our because the decree granting an adoption is in the
treaty obligation as a signatory to the Hague form of a foreign judgment.
Convention on Protection of Children &
Cooperation In Respect of Intercountry Adoption.
Uggi Lindamand Therkelsen vs. Republic
Convention pursues modern concept of adoption: (1964)
After possibilities of adoption for placement of FACTS: Therkelsen (a German) and his wife
child within state of origin have been exhausted, Erlinda (a Filipino), filed a petition to adopt
intercountry adoptions may be placed in the best Erlindas natural child. The application was
interest of the child.
denied on the ground that an alien cannot
adopt a Filipino unless the adoption would
Republic of the Philippines vs. CA make the Filipino minor a citizen of the aliens
(1993) country.
FACTS: Hughes is married to Lenita, a Filipina
who was later naturalized as an American HELD: The application should be granted.
citizen. They filed a petition to adopt the 3 Being a permanent resident here, Therkelsen is
nephews and niece of Lenita, which was not disqualified to adopt under our laws; to
granted. deny the application on the above stated
ground would be to impose a further requisite
HELD: Hughes is not qualified to adopt since on adoptions by aliens beyond those required
he does not fall under the exceptions in Art. by law. The citizenship of the adopter is a
184 of the Family Code. While Lenita, as a matter political, not civil in nature, and the
former Filipino, is qualified to adopt under ways in which it should be conferred lay
that provision, the adoption decree still cannot outside the ambit of the Civil Code.
be granted because of the requirement in Art.
185 that spouses must jointly adopt. They
cannot do this in CAB because Hughes is not Ng Hian vs. Collector of Customs
qualified under the law. (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
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study. The child, Ng Hian, was refused entry b) the proper law of the forum: law of the
into the Philippines. state which has the most real
connection with the transfer
HELD: Ng Hian may enter the Philippines by
virtue of being adopted by one who has a right In the Philippines, real and personal property are
subject to the law of the country where it is
to do so. In the case of Ex Parte Fong Yim, it
situated (Art. 16 CC). a problem regarding
was held that a Chinese merchant domiciled in
classification will arise only when the property is
the US has the right to bring into this country located in a foreign country which has a law that
with his wife minor children legally adopted distinguishes between real and personal
by him in China, where it is shown that the property.
adoption was bona fide, and that the children
have lived as members of his family and have
been supported by him for several years. For real property, there is very little room for
choice of law, because of the emphasis on lex
situs.
The connecting factor is the immovable itself and Llantino vs. Co Liong Chong
not the parties concerned. (1990)
FACTS: The Llantinos leased real property to
Movables: not necessarily governed by the lex Chong, a Chinese national (but subsequently
situs; its transfer may be controlled by the a) lex naturalized as a Filipino), for 60 years. The
domicilii, b) lex situs, or c) lex loci actus (the Llantinos filed an action to quiet title, claiming
proper law of transfer). that the lease contract was invalid for
circumventing the constitutional prohibition
Lex domicilii: the rights over the movables are
governed by the law of the owners domicile.
on the acquisition of land by aliens.
Lex situs: the state where the property is HELD: The lease contract was valid, and
situated has the sole power to decide the validity Chong had the right to hold by lease the
and effects of the transfer of property. Also, the property involved although at the time of
parties legitimate expectations are protected. execution of the contract, he was still a Chinese
The rationale for this is that being physically part national. In CAB there was no option to buy
of the country, it should be subject to the laws the leased property in favor of Chong. There is
thereof. The situs is the place most closely and nothing in the record to indicate any scheme to
significantly related to the issue in question. circumvent the constitutional prohibition.
Alternatives to lex domicilii and lex situs:
Aliens are not completely excluded by the
a) Lex loci actus: law of the place where Constitution from use of lands for residential
the transaction was completed purposes. Since their residence in the
Philippines is temporary, they may be granted
temporary rights, such as a lease contract
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2) the essential validity of the transfer Also, when the issue involves considerations
(unless the lex intentionis is clearly other than the validity and effect of the transfer
established) itself, the courts may look to the law of another
state which has a real interest in applying its law.
3) the effects of the conveyance or
properties Rudow vs. Fogel: since the issue did not relate to
land title but to whether the conveyance would
D. Exceptions to the Lex Situs Rule result in a constructive trust among family
members, the law applicable is the law of the
3 Exceptions to the Lex Situs rule: domicile of the trustor and trustee instead of the
lex situs of the property.
1) where the transaction does not affect
transfer of title to or ownership of the
land (proper law: lex intentionis or lex E. Situs of Certain Properties
voluntatis)
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1. Situs of Personal Property his creditor, as he was in the state where the
for Tax Purposes debt was contracted.
HELD: The attachment of Harris debt is valid, The Philippines is a party to the Union
and the North Carolina court should give Convention for the Protection of Industrial
credit to the Maryland judgment. The Property; said convention states in Art. 8 that a
trade name shall be protected in all the
obligation of the debtor to pay his debt clings
countries of the Union without the obligation of
to and accompanies him wherever he goes. He filing of registration, whether or not it forms part
is as much bound to pay his debt in a foreign of the trade name.
state when therein sued upon his obligation by
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Western Equipment and Supply Co. vs. Reyes; issuance of the xxx writ will depend on actual
although Western equipment has not done use of their trademarks in the Philippines.
business in the Philippines, it has the right to
protect its reputation. The right to the use of the
companys corporate and trade name is a XIV. Choice of Law in Contracts
property right which may be asserted against the
whole world. Contract: meeting of the minds between 2
persons whereby one binds himself, with respect
RA 8293 (Intellectual Property Code): applicant to the other, to give something or render some
cannot register marks well known internationally service. Parties are bound not only to those
and in the Philippines, whether or not it is expressly stipulated but also to all the
registered here, xxx and is used for identical or consequences which according to their nature,
similar goods or services. may be in keeping with good faith, usage and
law.
Under Sec. 3 of the IPC, any foreign corporation As a gen. rule, unless provided by law
which is a national or domiciliary of a country or in the agreement, a contract is obligatory in
which is a party to a convention, treaty or whatever form it may have been entered into
agreement relating to intellectual property rights provided that all the essential requisites for
to which the Philippines is also a party or extends validity are present.
reciprocal rights to our nationals by law shall be
entitled to benefits to the extent necessary to Principal purposes of contract:
give effect to any provision of such convention 1. protect the reasonable expectations of the
parties to the contract
2. secure stability in commercial transactions
Philips Export vs. CA
(1992)
HELD: A corporations right to use its A. Contracts Involving a Foreign
corporate and trade name is a property right, a Element
right in rem, which it may assert and protect
against the world in the same manner as it States, in their municipal laws, have different
rules on the formalities of a contract, the capacity
may protect its tangible property, real or
of parties, and the essential requisites for the
personal, against trespass or conversion. It is
intrinsic validity of contracts, interpretation and
regarded, to a certain extent, as a property the law governing execution. Forum court should
right and one which cannot be impaired or be aware if there is a law that parties have in
defeated by subsequent appropriation by mind when they entered into a contract.
another corporation in the same field.
Interpretations of contracts are applied only
when the lex loci intentionis cannot be
Emerald Garment Mfg. vs. CA ascertained.
(1995)
FACTS: H. D. Lee Co., a foreign corporation, Unlike family law, contract law does not reflect
filed a petition for cancellation of registration strong state policies or values.
of the trademark Stylistic Mr. Lee used on
items of clothing by Emerald Garments,
alleging that it so closely resembled H. D.
Lees trademark as to cause confusion, mistake
and deception on the public as to the origin of
the goods. B. Extrinsic Validity of Contracts
HELD: A foreign corporation may have the Lex loci celebrationis governs the formal or
capacity to sue for infringement irrespective of extrinsic validity of contracts. A contract is valid
lack of business activity in the Philippines on as to form if in accordance with any form
account of Section 21-A of the Trademark Law recognized as valid by the law of the country
but the question of whether they have an where made, and that no contract is valid which
is not made in accordance with the local form.
exclusive right over their symbol as to justify
Art 17, CC
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The forms and solemnities of contracts, wills, and performance are determined by lex loci solutionis
other public instruments shall be governed by the because it is undoubtedly related to the contract
laws of the country in which they are executed. in a significant way.
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parties, the literal meaning of the stipulations Compagnie de Commerce vs. Hamburg
shall control. Amerika
(1917)
The law looks at the acts of the parties and the FACTS: Compagnie (french) and Hamburg
surrounding circumstances which may possibly (Germany) entered into a charter party to
have exerted some influence upon their actions transport Cs goods from Saigon- Europe.
and then assumes that their intentions are in
Because of the impending war between France
harmony with such acts and circumstances.
& Germany, the ship went to Manila because
Parties are presumed to contemplate to enter Saigon is a French port. C filed for breach of
into a valid contract. The court should apply the contract. H contested the jurisdiction of Phil
law that will sustain the contract. courts to try the case because the contract had
a clause directing the settlement of disputes
first to a Board of Arbitration in England.
D. Capacity to Enter into Contracts
HELD: Phil. courts have jurisdiction. The
The capacity to enter into contracts is governed parties are free to waive the stipulation if they
by the rule on status and capacity (personal law). so desired.
In countries that follow the nationality principle,
the national law prevails (art. 15, CC). In Phil courts cannot be ousted of their
countries that follow the domiciliary principle, law
jurisdiction by the contractual stipulation in
of their domicile governs.
the absence of averment and proof that under
the law of England (place of contracting),
E. Choice of law Issues in Conflicts compliance with, or an offer to comply with
Contracts Cases such a stipulation constitutes a condition
precedent to the institution of judicial
proceeding for the enforcement of the contract.
1. Choice of Forum Clause Besides, Hamburg appeared and answered
without objecting to the courts jurisdiction; it
The parties may stipulate on the venue of the also sought affirmative relief.
suit in case of litigation concerning the contract.
It is a general rule that plaintiff has the option to King Mau vs. Sycip
choose the venue where the suit is to be filed in
(1954)
action in personam. However, a case arising from
FACTS: King Mau entered into an agency
the contract will be litigated only in the forum
chosen by the parties if the choice of forum agreement with the Sycip in New York. King
clause specifically identifies it as the only venue. mau was able to sell 1,000 tons of coconut oil.
KM brought an action to collect commission
Sec. 80, Sec. 3, Restatement Second. If the from the sale. Sycip claimed that the Phil court
parties have agreed in writing that an action shall has no jurisdiction as the contract was entered
on a controversy be brought only in another state in New York.
and it is brought in a court of this state, the court
will dismiss or stay the action, unless: HELD: Phil court has jurisdiction. A non-
resident may sue a resident in the courts of
1. the court is required by statute to this country where the defendant may be
entertain the action
summoned and his property leviable upon
2. plaintiff cannot secure effective
execution in case of a favorable, if final and
relief in other state for reasons
other than delay executory judgment.
3. the other state would substantially
be a less convenient place of trial It is a personal action for the collection of a
4. the agreement as to place of action sum of money which the CFIs have
was obtained by misrepresentation, jurisdiction to try and decide.
duress, abuse of economic power
or other unconscionable means
5. it would be unfair or unreasonable
to enforce the agreement
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When the acts referred to are executed before The Code should have expressly stated this
the diplomatic or consular officials of the Republic considering general provision in Art 17.
of the Philippines in a foreign country, the
solemnities established by Philippine laws shall be
observed in their execution. In re Estate of Johnson
(1918)
Prohibitive laws concerning persons, their acts or FACTS: Ebba Ingeborg sought to annul the
property, and those which have for their object probate of the will of his father Emil Johnson,
public order, public policy and good customs shall because the resulting intestacy would be
not be rendered ineffective by laws or judgments
favorable to her as a sole heir. She stresses that
promulgated, or by determinations or
Section 636 of the Code Of Civil Procedure
conventions agreed upon in a foreign country.
should not govern the will executed by her
Art 815: When a Filipino is in a foreign country, father in the US, because the word state in
he is authorized to make a will in any of the the body of the section is not capitalized (thus
forms established by the law of the country in not referring to a State in the US).
which he may be. Such will may be probated in
HELD: This interpretation is erroneous
the Philippines. (n)
because the full phrase another state or
country, means that the section refers to
What is the proper law for wills written abroad by either a State in the US or another country. The
Filipinos? admission of the will to probate by the CFI of
(There is no express provision that it is lex Manila under Section 636 was therefore
nationalii) correct. Although the CFI Of Manila most
likely erred in taking judicial notice of Illinois
Tolentino: law when it promulgated that the will was
Art 815 follows general rule of lex loci executed in conformity with the laws of
celebrationis. Illinois, Ebba is now precluded to raise this
issue because the petition to annul the probate
The Civil Code did not mean to invalidate the will
of a Filipino made in conformity w/ Phil law.
did not allege the difference between
Philippine Law and Illinois law.
Aliens making wills outside the Philippines are,
under Art 816 & 817, permitted to follow: Extrinsic Validity of Joint Wills
o lex nationalii
o lex domicilii Art 818. Two or more persons cannot make a will
o lex loci celebrationis jointly or in the same instrument, either for their
reciprocal benefit or for the benefit of a third
Article 816. The will of an alien who is abroad person.
produces effect in the Philippines if made with
the formalities prescribed by the law of the place
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Joint wills are prohibited on grounds of public o short statements can confuse
policy, because: handwriting experts
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The Court decided that although Andre Brimo a system of legitimes as a matter of public
opposed his brothers intention to have Philippine policy, such policy does not extend to the
laws apply he was not deemed to have contested successional rights of foreigners.
the legacy, because the choice of law clause in
the will was contrary to law. Our laws apply the
lex nationalii of decedent to determine intrinsic
validity of a will and this law was purposefully General Rule: the probate court can only rule on:
disregarded by decedent. The Court considered 1) extrinsic validity
this clause as not imposed and shall I no 2) due execution
manner prejudice the heir even if the testator 3) testamentary capacity
should otherwise provide. 4) compliance with requisites/solemnities
prescribed by law
__________________
Criticisms on the Miciano vs. Brimo decision:
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Article 830. No will shall be revoked except in the But the forum will still have to look at the foreign
following cases: law concerning compliance with extrinsic validity.
1) By implication of law; or
2) By some will, codicil, or other writing Rule 76 Section 9 Grounds for disallowing will.:
executed as provided in case of wills; or The will shall be disallowed in any of the
following cases;
3) By burning, tearing, canceling, or
obliterating the will with the intention of
revoking it, by the testator himself, or (a) If not executed and attested as required by
by some other person in his presence, law;
and by his express direction. If burned,
torn, cancelled, or obliterated by some (b) If the testator was insane, or otherwise
other person, without the express mentally incapable to make a will, at the time of
direction of the testator, the will may its execution;
still be established, and the estate
distributed in accordance therewith, if (c) If it was executed under duress, or the
its contents, and due execution, and the influence of fear, or threats;
fact of its unauthorized destruction,
cancellation, or obliteration are (d) If it was procured by undue and improper
established according to the Rules of pressure and influence, on the part of the
Court. (n) beneficiary, or of some other person for his
benefit;
Problem: Testator revokes his will in then
domicile State A and dies in his new domicile (e) If the signature of the testator was procured
State B. If his revocation under the laws of State by fraud or trick, and he did not intend that the
A is invalid under State B laws, what law will instrument should be his will at the time of fixing
apply? his signature thereto.
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When there is no will, the court may appoint an When the trust does not contain an express
administrator. choice-of-law provision, the Court will deem
controlling the law that will sustain the validity of
Two kinds of administrators: the trust.
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of parties, and b) minimizing the adverse conduct happens in one state but the injuries are
consequences that might follow from subjecting a sustained in another.
party to the law of more than one state.
Common law concept of place of wrong: place
Conflicts torts cases arise: where the last event necessary to make an actor
liable for an alleged tort occurs. It adheres to the
1) when the tortious conduct and place of vested rights theory, so that if harm does not
resulting injury are different and one take place then the tort is not completed.
state imposes higher standards than the Negligence or omission is not in itself actionable
other state unless it results in injury to another.
2) when there are different product liability Civil law concept of place of wrong: place where
laws and varying judicial interpretations the tortious conduct was committed. This is
of the extent of liability premised on the principle that the legality or
illegality of a persons act should be determined
by the law of the state where he is at the time he
does such act.
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This approach considers the relevant concerns HELD: Minnesota court has jurisdiction, even
the state may have in the case and its interest in if the injury which followed the illegal sale
having its law applied on that issue. occurred outside Minnesota. The Restatement
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significant links between the forum and the since it determines the specific law by which the
parties. criminal is to be penalized, and designates the
state that has the JD to punish him.
In ordinary foreign tort, the court acquiring JD 3 Exceptions to the Territorial rule:
must be either the place of tortious conduct or
place of injury. In Alien tort Statute, US courts 1) First Exception: crimes committed by
may acquire JD even if it is neither the place of state officials, diplomatic representatives
tortious conduct nor place of injury. and officials of recognized international
organizations (based on doctrine of
law of nations (Filartiga): mutual concern state immunity)
nations consider the act to be detrimental to all
nations; it is a violation of a law of all countries.
Wylie vs. Rarang
Guinto: violation of law of nations test (1992)
1) the violation affects relationship FACTS: Wylie and Williams are officers of the
between states, or an individual and a US Navy stationed in the Subic Naval base,
foreign state and are in charge of the publication Plan of
2) used by the states for their common the Day. Rarang filed an action for damages
good and/or dealings inter se
against them for libelous statements published
_______________
in the POD.
E. Distinguishing between Torts and HELD: Wylie and Williams are not immune
Crimes from the suit. They are sought to be held
answerable for personal torts in which the US
is not involved; if found liable, they alone
Tort Crime must satisfy the judgment. The Bases Treaty
provision on immunity could not possibly
Transitory in character; Local in character; the apply in this case, as it is presumed that the
hence liability is perpetrator of the laws of the US do not allow the commission of
deemed personal to wrong can be sued crimes in the name of official duty. The general
the tortfeasor and only in the state rule is that public officials can be held
make him amenable to wherein he commits
personally accountable for acts claimed to
suit in whatever JD he the crime
is found
have been performed in connection with
official duties where they have acted ultra vires
An injury to an An injury to the state or where there is showing of bad faith.
individual who may be where it is committed
situated in any place
This immunity for sovereign acts is impliedly
Liability is attached to Promulgated to punish waived when the foreign state and its officials
the perpetrator to and reform the perform private, commercial or proprietary acts.
indemnify the victim perpetrators and deter
for injuries he them and others from
sustained violating the law In Rarang, although the publication was part of
the duty of Wylie and Williams, the goal of the
F. Lex loci delicti publication of the complaint would have been
achieved without identifying Rarang by name.
Under the territorial principle, crimes committed
within the Philippines by all persons, whether
Filipino citizens or aliens, are prosecuted and Liang (Huefeng) vs. People
penalized under Philippine law. As a rule, criminal (2000)
laws of a state are effective only upon persons FACTS: Liang, a Chinese working at the ADB,
who actually commit the crime within the states was charged by a fellow worker with grave
territory.
oral defamation. The lower court dismissed
the complaint on the ground that Liang is
The lex loci delicti or the law of the place where
the crime was committed is the controlling law covered by the immunity provision under the
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expressly authorized by law or incident to its not exercise power in Alabama thereby
existence. making the contracts void.
Foreign corporation formed under the laws of a HELD: Bank can exercise its powers in
state other than the Phils; such laws allowing Alabama and the contracts are therefore valid.
Filipino citizens and corporations to do business It is well-settled that by the law of the comity
there. It shall have a right to do business here
of nations, a corp. created by 1 sovereignty is
only after obtaining a license and a certificate of
authority from the appropriate government permitted to make contracts in another and
agency. sue in its courts and that the same law of
comity prevails in several States of US
1. Personal Law of a including Alabama. Alabama courts have held
Corporation that a foreign corp may sue in its courts based
on the comity of nations.
The personal law of the corporation is the law of
the state where it is incorporated. If the law Four Basic (Important) Theories from the case:
creating it does not authorize it to enter into
certain contracts, such contracts which can be 1) a corporation, being a creature of law,
made in other states shall be void despite the has no legal status beyond the bounds
express permission given by the other state. of the sovereignty within which it was
created
ME Gray vs. Insular Lumber Co. 2) a corporation cannot exercise powers
(1939) not granted by its corporate charter or
FACTS: Gray, a stockholder of Insular by the laws of the state of incorporation
(incorporated in NY) filed an action in CFI to
compel Insular to allow him to examine its 3) no state is under any obligation to
books. Sec. 77 of NY Stock Corp Law only adhere to the doctrine of comity (every
gives the right to stockholders owning 3% of state has the power to refuse
the capital stock of the company. Gray does recognition)
not own the required shares.
4) a state is not obliged to grant to a
foreign corporation the privileges and
HELD: Gray is not entitled to the right to
immunities common to its citizens
examine the books of Insular. Gray is bound
by the NY law which only gives him the right The power of a foreign corporation depends upon
to receive from the treasurer of the corporation the laws of the state recognizing it. It may
a statement of affairs covering a particular impose conditions or limitations subject to a few
account of all its assets and liabilities. Neither exceptions as decided by US courts, to wit:
can his rights be granted under common law
absent a showing that: a) commerce clause prohibits a state
a. he seeks information for an honest from imposing conditions on
purpose or to protect his interest as corporations engaged in interstate
stockholder commercial activities and provides the
b. he exercises right in good faith and for a basis of federal power to regulate
interstate commerce.
specific and honest purpose not merely to
satisfy curiosity or for speculative or b) Since it is considered a person, once
vexatious purposes. allowed to enter a state and acquire
property, it cannot be discriminated
Anglo American Theory on Corporations against by domestic corps
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A foreign corporation, although a person, is not a Investments on the other hand is owned by 2
citizen entitled to the privileges given by the Venezuelan corps. Even assuming that the
state to its individual citizens. stocks of the 2 Venezuelan corps are owned by
US citizens, to hold that the set-up in CAB falls
within the Parity Amendment is to unduly
If according to the personal laws of the stretch and strain the language and intent of
corporation, stockholders are given certain rights, the law. There would be practical impossibility
such rights cannot be diminished nor added upon
to determine at any given time the citizenship
by the law of the place where the corporation
of the controlling stock.
does business. This is because such rights are
already fixed by the corporation.
________________ b. Control Test During the
War
2. Exceptions to the Rule of During wars, courts may pierce the corporate
Incorporation Test identity and look into the nationality of
stockholders to determine the citizenship of the
a. Constitutional and Statutory corp.
Restrictions
A state may, by legislation, exclude a foreign Filipinas Compania de Seguros vs. Christern,
corp altogether, subject to the constitutional Huenfeld, Co., Inc.
limitations, or prescribe any conditions it may see (1951)
fit as a prerequisite to the corporations right to FACTS: Christern (German Co.) filed a claim
do business within its territory. against Filipinas (US Co.) for recovery on fire
insurance policies issued by the latter. F
1987 Phil Constitution: refused to pay claiming that the policies
ceased to be in effect on the date the US
a. regulates exploration, development and
declared was against Germany. Dir. Of Bureau
utilization of natural resources such that
of Financing directed F to pay C.
only 60% Filipino-owned corps may be
allowed to engage in these activities
b. the nations marine wealth and the HELD: The policy ceased to be valid and
exclusive economic zone is reserved binding because of the fact that majority of the
exclusively to Filipinos stockholders of C are Germans and it became
c. Congress is empowered to reserve an enemy corporation when war was declared.
certain areas of investments to 60 % Under Phil Insurance Code, anyone except a
Filipino owned corps or provide for a public enemy may be insured. C is a public
higher percentage (e.g. mass media enemy at the time the insurable risk occurred.
100%) But C is entitled to a return of the premiums
paid.
Pedro Palting vs. San Jose Petroleum
(1966)
Filipinas Compania case was decided that way
FACTS: Palting opposes the tie-up between because of the government interest involved.
San Jose Petroleum (a Panamanian corp.) and _______________
San Jose Oil (domestic corp.) as being violative
of the Constitution and the Petroleum Act. SJP Daimler Co. Continental Tire and Rubber Co.:
claimed that it is entitled to the Parity HELD: An English corporation with an English
Amendment which grants to US citizens the secretary but whose shares of stock are
right to use & exploit natural resources in the controlled by German nationals was considered
Phils because its stockholders are US citizens. an enemy corporation and prohibited from
trading in England. It ruled that the company
itself was incapable of loyalty or enmity. These
HELD: SJP is not covered by the Parity
qualities are attributable only to human beings.
Agreement. It is not owned or controlled The company therefore had the predominant
directly by US citizens. It is owned by another character of its shareholders being Germans.
Panamanian corp., Oil Investments. Oil
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The dictum that a corporation has force only in Acquisition of a license by a foreign corporation is
the incorporating state and no existence outside an essential prerequisite for filing of suit before
that state has been abandoned. The prevailing our courts.
rule is, with the consent of a state, a foreign
corp. shall be recognized and will be allowed to Art. 133, Corp Code states that these
transact business in any state, which gives its corporations may be sued or proceeded against
consent. before Phil courts or administrative tribunals on
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HELD: Such allegation is unnecessary. HELD: Sec 69 of the Corp Law does not
However, AMIs mere allegation that it is a disqualify Converse from filing the suit
foreign corp is not sufficient. It must state although it is unlicensed to do business and is
WON it is doing business in the Phils bec not doing business in the Phils. This is in
different rules attach to the same. If it is compliance with the Convention of Paris for
engaged in business, it must be licensed to be the Protection of Industrial Property from
able to sue. If not so engaged, the license is not which the Phils adheres to and which US is a
required and it may sue esp. if it is a signatory.
single/isolated transaction.
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1. All that Leviton Manufacturing alleged is resident for contracts entered and
that it is a foreign corporation. It should consummated outside the Phils.
have, in addition, alleged the ff pursuant Reasons for rule: if not adopted,
to Sec. 21-a: a. it will hamper the growth of business
a. it registered its trademark with the Phil. between Filipinos and foreigners
Patent Office or that it is an assignee of the b. it will be used as protection by
trademark, and unscrupulous Filipinos who have
b. that the country of which it is a citizen or businesses abroad
domiciliary grants to Filipino corps the
same reciprocal treatment, either in a
treaty, convention or law. d. Petition Filed is Merely a
2. It also violates Sec. 4, Rule 8 of the Rules of Corollary Defense in a Suit
Court, which states that: against it
Facts showing the capacity of a party to
Time Inc. vs. Reyes
sue or be sued or the authority of a party
HELD: The court allowed a foreign corp is not
to sue or be sued in a representative
maintaining a suit in our courts but is merely
capacity or the legal existence of an
defending itself when it files a complaint for
organized association of persons that is
the sole purpose of preventing the lower court
made a party, must be averred.
from exercising jurisdiction over the case. As
such, it is not required to allege its capacity to
c. Agreements Fully sue.
Transacted Outside the
Philippines
Phil. Columbia Enterprises vs. Lantin
A foreign corporation is allowed to maintain an (1971)
action on a transaction wholly celebrated and FACTS: Katoh & Co. filed a complaint against
consummated abroad so as not to impair the Phil Columbian. Phil Columbian challenged its
policy of stabilizing commercial transactions. capacity to sue. TC deferred the determination
of this issue until trial on the merits. PC
opposed claiming that if it files a counterclaim,
Universal Shipping Lines vs IAC it will be waiving its right to assail the capacity
HELD: The private respondent may sue in the to sue of Katoh.
Phils upon the marine insurance policies to
cover international-bound cargoes shipped by HELD: A counterclaim is a complaint against
the carrier. It is not the lack of the license but the plaintiff. It would not be the foreign corp
doing business without such license which who will be maintaining a suit. Therefore, Sec.
bars a foreign corporation from access to our 69 of the Corp Law will not apply.
courts.
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Restatement 2nd:
B. Special Corporations Jurisdiction over the parent will exist if the parent
controls and dominates the subsidiary. In
1. Religious Societies and the determining whether the separate corporate
Corporation Sole existence of the subsidiary has been adequately
A religious society, if controlled by aliens, is not preserved, the courts will consider whether the
permitted to acquire lands. subsidiary has its own records, assets,
advertising, employees, payroll and accounting
A corporation sole is an incorporated office and whether its directors and headquarters are
composed of only one person as in the cases of different form those of the parent.
the chief archbishop, bishop, priest, minister or
an elder of a religious sect which may form a In the converse situation, jurisdiction over the
corporation sole for the purpose of managing its parent may give jurisdiction over the subsidiary if
affairs, property and temporalities. the separate corporate existence of each has not
been adequately maintained or if the parent has
acted within the state as the subsidiarys agent.
Roman Catholic Administrator vs. LRC
HELD: The 60% Filipino capital requirement to
own lands was not intended to apply to C. Partnerships
corporations sole because it is composed of
one person usually a head or bishop of a Partnership is formed by 2 or more persons who
diocese but he is only the administrator and bind themselves to contribute money, property or
not the owner of the temporalities. Such are industry to a common fund with the intention of
administered for and in behalf of the faithful dividing the profits among themselves.
who are Filipino citizens.
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
2. Transnational Corporations where it has its legal representation or where it
exercises its principal functions.
Transnational corporations are clusters of several
corporations, each with a separate entity, What matters are governed by the personal law
existing and spread out in several countries, but of the partnership?
controlled by the headquarters in a developed
state where it was originally organized.
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1. nature, attributes and capacity to contract of Rules on recognition & enforcement are
the partnership analogous but there are differences in conceptual
2. whether or not a partnership has been & procedural aspects.
constituted (esp. the conditions and
formalities required) ENFORCEMENT: This happens when a successful
3. determination of WON it requires a separate plaintiff fails to enforce judgment in the forum
juridical personality (Common law does not court so he seeks to carry out the execution of
consider a partnership a legal person but the judgment in another state.
civil law endows partnerships with a
separate legal personality) This requires the filing of an action and a new
4. grounds for dissolution and termination of judgment before the properties of the defendant
partnerships can be attached.
5. liability of partners esp. if limited partnership
is allowed RECOGNITION: This may arise when a successful
defendant wins and asserts that decision to
What are governed or subject to the law of the preclude the plaintiff from filing a suit on the
place of business? same claim in another forum. It is basically a
passive act because it does not require the filing
1. entitlements and limitations, in general of an action in another forum. EX. Decree of
2. creation of establishments in the state divorce.
3. mercantile operations
4. jurisdiction of nations
B. Bases of Recognition and
Enforcement of Foreign Judgments
PART FIVE: FOREIGN JUDGMENTS This doctrine of obligation is derived from the
rigid & unyielding vested rights theory.
XVIII: Recognition and Enforcement of Judgment of a foreign court of competent
Foreign Judgments jurisdiction is considered as imposing a duty or
obligation on the losing litigant.
A. Distinction between Recognition i.e.:
and Enforcement Forum 1- adjudicates debt owing to
plaintiff
Foreign judgments- all decisions rendered Forum 2- treats F1 judgment as
outside the forum and encompasses judgments, evidence of debt w/c may be enforced in F2 by
decrees & orders of courts of foreign countries as an action of debt
well as of sister states in a federal system of
govt.
Goddard vs. Godard
Conceptual & Procedural Differences between (1870)
Recognition & Enforcement: FACTS: Godard (French) obtained a favorable
ruling by a French court arising on a charter
party obligation against Gray (English). The
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French court interpreted the clause penalty of successful plaintiff or defendant that he will no
for non-performance of this agreement, longer be harassed into protecting his interests.
estimated amount of freight as a clause that
sets the limits to liability to one voyage Rule 39 Sec 40:
between the parties to the charter party A foreign judgment of a tribunal of a foreign
country, having jurisdiction to pronounce
contrary to the English interpretation. When
judgment renders it conclusive upon the title to
this French judgment was sought to be
the thing while a judgment against a person is
enforced in England, Gray interposed in presumptive evidence of a right as between the
defense that the erroneous French judgement parties & their successors in interest
is a bar to the action for enforcement in
England. 2. Merger
HELD: it is not a bar. In England, foreign It considers the plaintiffs cause of action as
judgement are enforced based on the principle merged in the judgment. Thus, he may not
that where a court of competent jurisdiction relitigate that exact same claim.
has adjudicated a sum of money to be due
from one person to another, a legal obligation 3. Bar
arises to pay the sum, on which an action of
This is where a successful defendant interposes
debt to enforce the judgement may be
the judgment in his favor to avert a second
maintained and not merely out of politeness action by plaintiff on the same claim. By direct
and courtesy to other tribunals of other estoppel, the relitigation of all matters decided
countries. Anything that negates the existence are precluded
of a legal obligation or excuses the defendant
from performance is a good defense to the In addition, DOCTRINE OF COLLATERAL
action (ex. Evidence that court exceeded its ESTOPPEL renders conclusive all essential issues
jurisdiction or the judgement was obtained of fact actually litigated in the suit decided on by
thru fraud) the foreign court.
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foreign judgment establishing Hendersons 4. The state where the foreign judgment was
indebtedness to him. obtained allows recognition or enforcement of
Philippine judgment
HELD: The Spanish judgment cannot be
sustained because it was not yet final and In Hilton vs. Guyot, a French judgment was not
recognized by a US court because it found out
conclusive. Where a court of competent
that French laws allowed review of American
jurisdiction has adjudicated a certain sum as
judgments on the merits. This ruling is widely
due from one to another, a legal obligation criticized because:
arises, on which an action of debt to enforce Instead of being a mutual exchange of
judgment may be maintained. But to come privileges, comity was used as a means of
within the terms of law properly laid down, retaliation.
judgment must result from an adjudication of The court in Hilton discriminated against the
a court of competent jurisdiction, such litigants on account of the policies of their
judgement being final and conclusive. It is not governments which they were in no position
sufficient that the judgement puts an end to to shape and alter.
and finally settles controversy. It must e It can be argued that the task of formulating
shown that in the court by which it was policies through reciprocity is a power
misplaced in the judiciary and should be
pronounced it conclusively and finally settles
appropriately wielded by the other branches
forever the existence of debt of which it is
of government.
sought to be made conclusive.
Trautman and Von Mehren point out the
difficulties with the reciprocity requirement.
Querubin vs. Querubin a. its normal tendency is to lower
(1950) rather than raise the standards
FACTS: Following their divorce because of of practice
Margarets infidelity, rendered in New b. the private litigants burdened
Mexico, their daughter Querubina was kept in may not be closely attached to
a neutral home. Silvestre then obtained an the legal order sought to be
interlocutory decree granting him custody. changed
c. the administration of
Margaret had the decree modified since the
reciprocity clauses can be
she was remarried and had a stable home for
complicated esp. where case
Querubina. When Silvestre fled to the law systems are affected since
Philippines with Querubina, Margaret filed for finding the exact foreign law
habeas corpus. She asserts that the that grants reciprocity is still
interlocutory order should be complied with nebulous. It is unclear whether
pursuant to Article 48 Rule 39. reciprocity is proved by general
recognition of such or requires
HELD: Her contention is erroneous. A foreign a specific recognition for a case
interlocutory order in favor of Margaret did identical or analogous to the
not establish a vested right with respect to one before the court.
rightful custody over Queribina. The decree is
not yet final but subject to change with the
Cowans, et al. vs. Teconderoga Pulp and
circumstances. Generally, divorce decree
Paper Co.
awarding custody of child to one spouse is
(1927)
respected by other states but such decree has
FACTS: Cowans obtained a Quebec judgment
no effect in another state as to facts and
in their favor for a sum of money. TPP asserts
conditions occurring subsequently to date of
in defense that this judgment is not conclusive
decree. Court of another state may award
upon, but merely a prima facie evidence before
custody otherwise upon proof of subsequent
the US courts, pursuant to Quebec law. TPP
matters justifying such decree to the childs
alleges that since Quebec law does not
interest.
reciprocate as to judgements of NY courts, NY
should also not recognize the Quebec
judgment as adjudications of the issues.
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Procedure in Philippines
Contributions: (Compared to simple procedure of exequaure,
a) provisions on applicability of Convention Philippine mode is protracted & expensive).
irrespective of nationality
b) non-refusal for sole reason that court of Our laws require that a petition should be filed in
state of origin has applied a law other proper court attaching authenticated copy of
than that which would have been foreign judgment to be enforced.
applicable according to the rules of
Private IL of the state addressed Philippine consul must certify that it had been
c) it addresses the question of whether a rendered by a court of competent jurisdiction.
default judgment is subject to The petition must comply w/ all the requisites of
enforcement an enforceable judgment.
d) establishes recognition & enforcement
procedures Requirement to file an action anew
The seventh session looked into possibility of a Attempt to reconcile the principle of territorial
general convention on recognition & enforcement jurisdiction of courts w/c demands that the
of judgments whose chief benefit will be the enforcement of a judgment outside the territory
relatively uniform procedure among contracting of rendering court must be placed upon some
states. other basis than the authority of the rendering
court w/c ceased at its jurisdictional limits- & the
2. The EEC Convention of 1968 principle of res judicata.
A. First Mode: Need for New Judicial Action B. Second Mode: Exequatur - -Summary
proceeding also known as exequatur procedure.
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