Conflict Of Laws Digest: Bank Of America V.

CA (2003)
G.R. No. 120135 March 31, 2003
Lessons Applicable: forum non conveniens (conflicts of laws)

FACTS:

Eduardo K. Litonjua, Sr. and Aurelio J. Litonjua (Litonjuas) were

engaged in the shipping business owning 2 vessels: Don Aurelio and El
Champion
Because their business where doing well, Bank of America (BA) offered
them to take a loan for them to increase their ships.
BA acquired through them as borrowers four more ships: (a) El
Carrier; (b) El General; (c) El Challenger; and (d) El Conqueror. The
registration, operation, income, funds, possession of the vessel belonged
to the corporation.
May 10, 1993: Litonjuas filed a complaint to the RTC Pasig claming
that during its operations and the foreclosure sale, BA as trutees failed to
fully render an account of the income. They lost all their 6 vessels and
10% of their personal funds and they still have an unpaid balance of their
loans.
BA NT&SA, and BA international filed a Motion to Dismiss on grounds of
forum non conveniens and lack of cause of action against them
RTC and CA: Dismissed
ISSUE:
1. W/N there is grounds of forum non conveniens
2. W/N there is litis pendentia

HELD: Denied

1. NO.
The doctrine of forum non-conveniens, literally meaning 'the forum is
inconvenient', emerged in private international law to deter the practice
of global forum shopping
Under this doctrine, a court, in conflicts of law cases, may refuse
impositions on its jurisdiction where it is not the most "convenient" or
available forum and the parties are not precluded from seeking remedies
elsewhere.
Whether a suit should be entertained or dismissed on the basis of said
doctrine depends largely upon the facts of the particular case and is
addressed to the sound discretion of the trial court.
Philippine Court may assume jurisdiction over the case if it chooses to
do so; provided, that the following requisites are met:
(1) that the Philippine Court is one to which the parties may
conveniently resort to; - present
 (2) that the Philippine Court is in a position to make an intelligent
decision as to the law and the facts; and, - present
(3) that the Philippine Court has or is likely to have power to
enforce its decision - present
This Court further ruled that while it is within the discretion of the trial
court to abstain from assuming jurisdiction on this ground, it should do so
only after vital facts are established, to determine whether special
circumstances require the court's desistance; and that the propriety of
dismissing a case based on this principle of forum non conveniens
requires a factual determination, hence it is more properly considered a
matter of defense
2. NO.
litis pendentia to be a ground for the dismissal of an action there must
be:
(a) identity of the parties or at least such as to represent the
same interest in both actions -present
(b) identity of rights asserted and relief prayed for, the relief
being founded on the same acts - not shown
(c) the identity in the two cases should be such that the
judgment which may be rendered in one would, regardless of which party
is successful, amount to res judicata in the other - not shown
It merely mentioned that civil cases were filed in Hongkong and
England