Conflicts of Law

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FINAL EXAM REVIEWER: CONFLICTS OF LAW g.

Between an adopted child and a legitimate


Based on the book of Pe Benito. child of the adopter;
h. Between adopted children of the same adopter;
Marriage and Divorce and;
i. Between parties where one, with the intention
Marriages Not Subject of Recognition to marry the other, killed that other person’s
spouse, or his or her own spouse.
While the Philippines gives full faith and credit to conventions
and contracts performed abroad, the same is true only when III. Polygamous or Bigamous Marriages
the acts and contracts do not violate public policy or IV. Same-sex Marriages
prohibitive laws. Hence not all marriages celebrated abroad
and valid in the place of celebration are valid in our If the foreign marriage fall under any of the foregoing
jurisdiction. There are exceptions to the general rule of categories, the same is not recognized in our jurisdiction.
according to the validity to marriages celebrated abroad. Hence, there can be no marriage between first cousins in our
jurisdiction, though other jurisdictions may allow the same.
The following marriages shall not be recognized in our Also, while same-sex marriages have been legalized in some
jurisdiction: jurisdictions, the Philippines is still sticking to the time-honored
definition of marriage as “being between a man and a
I. Incestuous Marriages woman.” The Philippines has also no law on same-sex unions,
a. Between ascendants and descendants of any as the same is still a union between man and man or woman
degree; and and woman. (Pages 270-271)
b. Between brothers and sisters, whether of the
full or half blood. Right to Re-marry after Divorce

II. Void Marriages by reason of public policy Citizens of the Philippines whose foreign spouses have
a. Between collateral blood relatives whether obtained a divorce abroad are capacitated to remarry under
legitimate or illegitimate, up to the fourth civil our laws. We give implicit recognition to the divorce as a way
degree; of equalizing the rights of the Filipino spouse to the foreign
b. Between step-parents and step-children; spouse who is now freed from the marital bonds by virtue of
c. Between parents-in-law and children-in-law; the divorce. If this were not the case, the Filipino spouse will
d. Between the adopting parent and the adopted forever be held “hostaged” by the marriage which no longer
child; exists. Hence to remove the unfairness of the situation,
e. Between the surviving spouse of the adopting Filipinos are now allowed to remarry once their foreign
parent and the adopted child; spouses obtain a divorce decree. Thus, paragraph 2 of Article
f. Between the surviving spouse of the adopted 26 of the Family Code provide for the following:
child and the adopter;

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Art. 26 All marriages solemnized outside the a. There is a valid marriage that has been celebrated
Philippines, in accordance with the laws in force in the between a Filipino citizen and a foreigner; and
country where they were solemnized, and valid there b. A valid divorce is obtained abroad by the alien spouse
as such, shall also be valid in this country, except those capacitating him or her to remarry.
prohibited under Articles 35 (1), (4), (5) and (6), 36, 37
and 38. The reckoning point is not the citizenship of the parties at the
time of the celebration of the marriage, but their citizenship at
Where a marriage between a Filipino citizen and a the time a valid divorce is obtained abroad by the alien spouse
foreigner is validly celebrated and a divorce is capacitating the latter to remarry. (Pages 293-296)
thereafter validly obtained abroad by the alien spouse
capacitating him or her to remarry, the Filipino spouse Corpuz v. Sto. Tomas
shall have capacity to remarry under Philippine law.
Issue: Whether a foreigner may invoke the benefit of
It is important, however, that the divorce be judicially paragraph 2 Article 26 of the Family Code?
recognized first by Philippine courts before the Philippine
national can rely on the effects of the divorce. For one, the Held: No. An action based on the second paragraph of Article
Filipino cannot remarry until and unless the divorce is properly 26 of the Family Code is not limited to the recognition of the
recognized and annotated in the local civil registry. (Page 292) foreign divorce decree. If the court finds that the decree
capacitated the alien spouse to remarry, the courts can declare
Republic v. Orbecido that the Filipino spouse is likewise capacitated to contract
another marriage. No court in this jurisdiction, however, can
Issue: Whether Cipriano can remarry under Article 26 of the make a similar declaration for the alien spouse (other than that
Family Code? already established by the decree), whose status and legal
capacity are generally governed by his national law.
Held: Yes. Taking into consideration the legislative intent and
applying the rule of reason, we hold that Paragraph 2 of In other words, only the Filipino spouse can invoke the second
Article 26 should be interpreted to include cases involving paragraph of Article 26 of the Family Code; the alien spouse
parties who, at the time of the celebration of the marriage can claim no right under this provision.
were Filipino citizens, but later on, one of them becomes
naturalized as a foreign citizen and obtains a divorce decree. The recognition of the foreign divorce decree may be made in
The Filipino spouse should likewise be allowed to remarry as if Rule 108 proceeding itself, as the object of special proceedings
the other party was a foreigner at the time of the (such as that in Rule 108 of the Rules of Court) is precisely to
solemnization of the marriage. To rule otherwise would be to establish the status or right of a party or a particular fact.
sanction absurdity and injustice. (Pages 297-300)

The twin elements for the application of Paragraph 2 of Article


26 as follows:

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Pilapil v. Ibay-Somera Before our courts can give the effect of res judicata to a foreign
judgment, such as the award of custody to the petitioner by
Issue: Whether the divorced husband may file a case for the German court, it must be shown that the parties opposed
adultery against his divorced wife? to the judgment had been given ample opportunity to do so
on grounds allowed under Rule 39, Section 50 of the Rules of
Held: No. Under Article 344 of the RPC, the crime of adultery, Court. (now Ruke 39, Section 48, 1997 Rules of Civil
as well as four other crimes against chastity, cannot be Procedure)
prosecuted except upon sworn written complaint filed by the
offended spouse. In the present case, it cannot be said that private respondent
was given the opportunity to challenge the judgment of the
The law specifically provides that in prosecution of adultery German court so that there is basis for declaring that judgment
and concubinage the person who can legally file the as res judicata with regard to rights of the petitioner to have
complaint should be the offended spouse and nobody else. parental custody of their two children. Absent any finding that
private respondent is unfit to obtain custody of the children,
In the present case, the fact that private respondent obtained a the trial court was correct in setting the issue for hearing to
valid divorce decree in his country, the Federal Republic of determine issue of parental custody, care, support and
Germany, is admitted. Said divorce and its legal effects may be education mindful of the best interests of the children. (Pages
recognized in the Philippines insofar as private respondent is 290-292)
concerned in view of the nationality principle in our civil law
on the matter of status of persons. Corporations

Under the same considerations and rationale, private Steelcase v. Design International
respondent, being no longer the husband of petitioner, had
no legal standing to commence the adultery case under the Issue: Whether Steelcase is doing business in the Philippines
imposture that he was the offended spouse at the time he filed
suit. (Pages 288-289) Held: No. Steelcase is not doing business in the Philippines

Roehr v. Rodriguez The rule that an unlicensed foreign corporations doing


business in the Philippines do not have the capacity to sue
Issue: Whether RTC is correct in reopening case to litigate before the local courts is well established. Section 133 of the
issues of custody and distribution of assets despite the divorce Corporation Code of the Philippines explicitly states:
between the parties?
Section 133. Doing business without a license. – No
Held: Yes. As a general rule, divorce decrees obtained by foreign corporation transacting business in the
foreigners in other countries are recognizable in our Philippines without a license, or its successors or
jurisdiction, but legal effects thereof, e.g. on custody, care and assigns, shall be permitted to maintain or intervene in
support of the children, must still be determined by our courts. any action, suit or proceeding in any court or

C. S. DE LA ROSA © Page 3
administrative agency of the Philippines; but such Philippines by its act of appointing a distributor. (Pages 329-
corporation may be sued or proceeded against before 334)
Philippine courts or administrative tribunals on any
valid cause of action recognized under Philippine laws. Transboundary Pollution (Pages 385-393)

The phrase “doing business” is clearly defined in Section 3 (d) What are the laws applicable to enjoin hazardous effects of
of R.A. No. 7042 ( Foreign Investments Act of 1991) pollution?

This definition is supplemented by its IRRs, Rule I, Section 1(f) 1. Governmental interest analysis – This approach indulges
which elaborates on the meaning of the same phrase: courts to consider government interests when two or more
states have conflicting laws and interests.
f. The following acts shall not be deemed “doing
business” in the Philippines: The governmental analysis approach involves the ff
steps:
(3) Appointing a representative or distributor a) The court determines whether the relevant
domiciled in the Philippines which transacts business in law of the affected jurisdictions with regard to the issue
the representative’s or distributor’s own name and in question is the same or different.
account;
b) If there is a difference, the court examines
From the preceding citations, the appointment of a distributor each jurisdiction’s interest in the application of its own
in the Philippines is not sufficient to constitute “doing business” law to determine whether a true conflict exists.
unless it is under the full control of the foreign corporation. On
the other hand, if the distributor is an independent entity to c) If the court finds that there is a true conflict, it
which buys and distributes products, other than those of the carefully evaluates and compares the nature and the
foreign corporation, for its own account, the latter cannot be strength of the interest of each jurisdiction to
considered to be doing business in the Philippines. determine which state’s interest would be more
impaired if its policy were subordinated to the policy of
The dealership agreement between Steelcase and DISI had the other state.
been described by the owner himself as: basically a buy and
sell arrangement. 2. Lex loci delicti - This calls for the application of the law of the
place where the damage is suffered or inflicted. It looks to the
From the preceding facts, the only reasonable conclusion that domestic law of a state which shall be applied to polluting
can be reached is that DISI was an independent contractor, activities whose sources are foreign. Hence, so long as the
distributing various products of Steelcase and of other effects are felt locally even if the source comes from outside
companies, acting in its own name and for its own account. the country, domestic law may be applied to govern the act
Steelcase cannot be considered doing business in the complained of.

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3. Most significant relationship approach - An examination is Intellectual Property
made as to what state has the most connection to a case. The
law of the state which has the most connection shall be Fredco Manufacturing v. Harvard
applied in the resolution of the conflict. The points of contract,
as enumerated in the Restatement (Second) of Conflicts of Issue: Whether or not respondent’s trade name is infringed.
Laws, are:
Held: Yes. The Supreme Court further ruled that Harvard
a) the place where the injury occurred; University is entitled to protection in the Philippines of its trade
b) the place where the conduct causing the injury name “Harvard” even without registration of such trade name
occurred; in the Philippines. Under Philippine law, a trade name of a
c) the domicile, residence, nationality, place of national of a State that is a party to the Paris Convention,
incorporation and place of business of the parties, and whether or not the trade name forms part of a trademark, is
d) the place where the relationship, if any, between the protected “without the obligation of filing or registration.”
parties is centered. “Harvard” is the trade name of the world famous Harvard
University, and it is also a trademark of Harvard University.
Pakootas v. Teck Cominco Metals Under Article 8 of the Paris Convention, as well as Section 37
of R.A. No. 166, Harvard University is entitled to protection in
Issue: Whether the application of CERCLA to Teck involves an the Philippines of its trade name “Harvard” even without
extraterritorial application of domestic law of the United States. registration of such trade name in the Philippines. This means
that no educational entity in the Philippines can use the trade
Held: No. The location where a party arranged for disposal of name “Harvard” without the consent of Harvard University.
disposed of hazardous substances is not controlling for the Likewise, no entity in the Philippines can claim, expressly or
purposes of assessing whether CERCLA is being applied impliedly through the use of the name and mark “Harvard,”
extraterritorially, because CERCLA imposes liability for releases that its products or services are authorized, approved, or
or threatened releases of hazardous substances, and not licensed by, or sourced from, Harvard University without the
merely for disposal or arranging for disposal of such latter’s consent.
substances. The argument that this case presents an
extraterritorial application of CERCLA fails because CERCLA Enforcement of Foreign Judgments
liability does not attach until there is an actual or threatened
release of hazardous substances into the environment. Effect of Foreign Judgments

The fact that an act which is sought to be regulated has a Foreign judgments are recognized and allowed to be enforced
foreign source but whose effects are felt locally, extraterritorial in our jurisdiction as a matter of comity with the international
application cannot be claimed. community. We give full faith and credit to judgments issued
by foreign courts as long as these judgments are not contrary
to public policy or prohibitive laws.

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The enforcement of foreign judgments is governed by Section the foreign court’s decision so long as they do not violate
48 of Rule 39 of the Rules of Court. public policy or prohibitive laws. (Page 408)

Sec. 48. Effect of foreign judgments or final orders. - Fujiki v. Marinay


The effect of a judgment or final order of a tribunal of a foreign
country, having jurisdiction to render the judgment or final Issue 1: Whether the Philippine court is authorized to relitigate
order is as follows: the issues already decided by the foreign court.

(a) In case of a judgment or final order upon a specific Held: No. A petition to recognize a foreign judgment declaring
thing, the judgment or final order is conclusive upon a marriage void does not require relitigation under a Philippine
the title to the thing; and court of the case as if it were a new petition for declaration of
nullity of marriage. Philippine courts cannot presume to know
(b) In case of a judgment or final order against a the foreign laws under which foreign judgment was rendered.
person, the judgment or final order is presumptive (Pages 408-410)
evidence of a right as between the parties and their
successors in interest by a subsequent title. St Aviation Services v. Grand International Airways

In either case, the judgment or final order may be repelled by Issues: 1) Whether Singapore High Court has acquired
evidence of a want of jurisdiction, want of notice to the party, jurisdiction over the person of the respondent by the service of
collusion, fraud, or clear mistake of law or fact. (Pages 407-408) summons upon its office in the Philippines

Res Judicata Effect of Foreign Judgment 2) Whether the judgment by default by the Singapore
High Court is enforceable in the Philippines.
Although issued in another jurisdiction, the decision of a
foreign court has the effect of res judicata in our jurisdiction. Held: Both yes. Considering that the Writ of Summons was
Thus, foreign decisions are afforded conclusiveness of served upon respondent in accordance with our Rules,
judgment in our jurisdiction as if they were also a decision jurisdiction was acquired by Singapore High Court over its
rendered by local courts. person. Clearly, the judgment of default rendered by the that
court against respondent is valid. (Pages 415-417)
Generally, a foreign judgment is entitled to respect and
recognition by our courts. The only duty of our courts is to Philippine Aluminum Wheels v. FASGI
ensure that the judgment is genuine, authentic, and in
accordance with foreign law. If those are complied with, the Issue: Whether the decision of the California court may be
court’s remaining duty is to enforce the foreign judgment. enforced in the Philippines.
Under no circumstance are local courts authorized to reopen
the case and relitigate the issues under our procedures. Local Held: Yes. A valid judgment rendered by a foreign tribunal may
courts may not review the correctness or appropriateness of be recognized insofar as the immediate parties and the

C. S. DE LA ROSA © Page 6
underlying cause of action are concerned so long as it is
convincingly shown that there has been an opportunity for a
full and fair hearing; that trial has been conducted; and that
there is nothing to indicate either a prejudice in court and in
the system of laws under which it is sitting or fraud in
procuring the judgment. A foreign judgment is presumed to
be valid and binding in the country from which it comes, until
a contrary showing, on the basis of presumption of regularity
of the proceedings and giving of due notice in foreign forum.
(Pages 418-419)

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