Module 1 - Introduction To

Conflict of Laws
WHAT IS CONFLICT OF LAWS?

1. It is that part of the municipal law of the state which direct its courts and
administrative bodies/agencies, when confronted with a legal problem
involving a foreign element, to apply either the local law or a foreign law.
(Paras)
2. The conflict of laws is that part of the private law of a country which
deals with cases having a foreign element. (Mc Clean, Morris: Conflict of
Laws)
3. Conflict of laws is that part of the law of the state which determines
whether, in dealing with a legal situation, the law of some other states will
be recognized, be given effect or be applied. (Am. Jur.)
4. Conflict of laws is that part of the law which deals with the extent to
which the law of a state operates and determines whether the rules of one
or another state should govern a legal situation. It is that part of the law that
becomes operative whenever a legal controversy arises in which there is a
foreign element. (Ranhilio Aquino citing 15 CJS 366)
5. The English conflict of laws is a body of rules whose purpose is to assist
an English court in deciding a case which contains a foreign element.

It consists of three main topics, which concern respectively: (i) the jurisdiction
of an English court, in the sense of its competence to hear and determine a
case; (ii) the selection of the appropriate rules of a system of law, English or
foreign which it should apply in deciding a case over which it has jurisdiction
(this is known as choice of law); and (iii) the recognition and enforcement of
judgments rendered by foreign courts or awards of foreign arbitration. (Collier,
Conflict of Laws)

1. In its narrower sense, “conflict of laws” describes a case that has had
contacts with two or more jurisdictions and in which the laws of these
several places differ with respect to some issue that has arisen in the case.
(Siegel, Conflict of Laws)
2. In Hilton v. Guyot- the U.S. Supreme Court defined private international
law/conflict of laws as the “law concerning the rights of persons within the
territory and dominion of one nation, by reason of acts, private or public,
done within the dominion of another nation”.
3. “Private international law is that part of law which comes into play when
the issue before the court affects some fact or event, or transaction that is
so closely connected with a foreign system of law as to necessitate
recourse to that system.” (Chesire)
4. Basically conflict of law is a problem of choice of law between foreign
law and a local or municipal law, the court taking cognizance of the case
involving a foreign element (forum court). The starting point in the
 determination of which law should apply is the local law or the law of the
forum. (Agpalo)

A common thread running through all classical definition of private

international law is that IT IS THAT PART OF THE MUNICIPAL LAW
WHICH GOVERNS CASES INVOLVING A FOREIGN ELEMENT. (Coquia)
From the foregoing definitions of conflict of laws, two common elements
are apparent: first, the existence of a case involving a foreign element filed in
the forum (conflict case) and second the process of determining whether to
apply the municipal or local laws or the proper foreign law in the resolution of
the case.

WHAT IS THE OBJECTIVE OF CONFLICT OF LAWS?

The objective is the harmonization of the laws of several states whenever
a conflict of laws situation exists.
Conflict of law rules aim to PROMOTE STABILITY AND UNIFORMITY
OF SOLUTIONS PROVIDED BY LAWS AND COURTS OF EACH STATE
CALLED UPON TO DECIDE CASES INVOLVING A FOREIGN ELEMENT.
The function of conflict of laws is to provide rational and valid rules or
guidelines in deciding cases where the parties, events or transactions are
linked to more than one jurisdiction.

WHAT ARE THE FUNCTIONS OF CONFLICT OF LAWS OR

PRIVATE INTERNATIONAL LAW? (Paras)

1. It prescribes the conditions under which a court or administrative body

or agency is competent to take cognizance or entertain proceedings with
foreign element.
2. Specifies the circumstances in which foreign judgments will be
recognized as valid and binding in the forum.
3. Determines the particular system of law for each class/classes of
cases to determine the rights of parties.

WHAT ARE THE SOURCES OF CONFLICT OF LAWS?

1. Codes and statutes



 The Civil Code

 The Family Code
 The Corporation Code (B.P. Blg. 68) of 1980
  The General Banking Act or Act No. 337 which took effect in
1948
 The Protection of Intellectual Property (P.D. 49)
 Carriage of Goods by the Sea Act (COGSA)
 The Salvage Law
 Etc.

1. Constitution

Another basic source of law in this jurisdiction is the 1987 Constitution which
contains principles on nationality and comity.

1. Treaties and international conventions

After securing its freedom from colonial rule of Spain and the U.S. and since it
became a republic, the Philippines has entered into a number of treaties and
international conventions that deal with private international law/conflict of
laws.
Examples:

 Convention for the Unification of Certain Rules Relating to

International Carriage by Air- commonly referred to as the
WARSAW CONVENTION (Feb. 7, 1951)
 United Nations Convention on the Carriage of Goods by
Sea Act (1979)
 Convention on the Consent to Marriage, Minimum Age for
Marriage and Registration of Marriages (April 21, 1965)
 Convention on Traffic of Persons (1955)
 Convention on the Elimination of Discrimination Against
Women (CEDAW) (September 4, 1981)
 Convention on the Rights of Children
 Etc.

1. Jurisprudence/Judicial Decisions

One of the more important sources of conflict of law rules are decisions of
courts. The interpretations and applications of the Supreme Court of the
provisions of law form part of the Philippine legal system.
Art. 8 of the Civil Code expressly provides that judicial decisions applying or
interpreting the laws or the Constitution shall form part of the Philippine legal
system.
1. International Customs ( International Comity)

A good example of international custom as a source of conflict of laws

is COMITY OF NATIONS.
By definition COMITY pertains to the recognition which one nation allows
within its territory to the legislative, executive or judicial acts of another nation,
having due regard both to international duty and convenience, and to the rights
of its own citizens or of other persons who are under the protection of its law.
The custom of Comity of Nations was exemplified in HILTON vs. GUYOT
(159 U.S. 113 (1895)
FACTS:
Charles Fortich and Co. a French firm and Gustave Guyot, liquidator of the
said French firm sued Henry Hilton and William Libbey, residents of New York,
but doing business and trading as co-partners in Paris under the firm name of
A.T. Stewart and Co. for debts due the French firm.
The case was filed in France. The French Court rendered judgement in favor
of Charles Fortich and Co. and Guyot.
Thereafter, Fortich and Co. and Guyot sued Hilton and Libbey in the U.S.
Circuit Cout for the Southern District of New York for the enforcement of the
judgement of the French Court and seeking an amount totaling over $195, 000.
The New York Court found for the French firm and declared the judgment
rendered by the French Court as conclusive without examining anew the
merits of the case.
Defendants Hilton and Libbey questioned the New York court ruling on many
grounds. The main ground relied upon by Hilton and Libbey was their
argument that the French Courts do not give force and effect to the duly
rendered judgments of U.S. Courts against French Citizens.
ISSUE:
May the French judgment be considered conclusive as to be given effect in
U.S. Courts in view of the fact that French courts do not offer the same
treatment to judgments rendered in U.S. jurisdiction against French Nationals?
HELD:
Judgment of the New York Court was reversed.
Justice GRAY states in the Decision that “No law has any effect, of its own
force, beyond the limits of the sovereignty from which its authority is
derived.”
The extent to which the law of one nation shall be allowed to operate
within the dominion of another nation, depends upon the COMITY OF
NATIONS.
Comity is neither a matter of absolute obligation, on one hand, nor of mere
courtesy and good will, upon the other. It is the recognition which one
nation allows within its territory to the legislative, executive or judicial
acts of another nation, having due regard both to international duty and
convenience, and to the rights of its own citizens or of other persons
who are under the protection of its laws…
International laws are founded upon mutuality and RECIPROCITY.
Since France do not extend conclusive treatment of judgments rendered in the
U.S. against French nationals, the U.C. courts cannot do the same for a
judgment rendered by a French Court against U.S. nationals.

1. Other sources are:



 Natural moral law

 Writings, treatises of renown jurists on the subject, etc.
(Sempio Dy)

HISTORICAL BACKGROUND AND DEVELOPMENT OF

CONFLICT OF LAWS

1. The ROMAN LAW

The origin of conflict of laws may be traced to the Roman Law.

Although this is disputed by some authors, it remains that much of the
provisions of our present Civil Code trace their roots from the Roman Law.
Our Civil Code is a direct off-shoot of the Spanish Civil Code. Our
Civil Code “is strongly influenced by the Spanish Civil Code, which was first
enforced in 1889 within the Philippines, then a colony of Spain. The Spanish
Civil Code remained in effect even during the American Colonization of the
Philippines. However, by 1940, the Commonwealth Government of the
President Manuel Quezon had created a Commission to create the new Civil
Code. Xxx However, the work of the Commission was interrupted by the
Japanese Invasion of the Philippines, and its records were destroyed during
the Battle of Manila in 1945.” The influence of the Spanish Civil Code is most
evident in the Books on property, succession and obligations and
contracts. (www.thecorpusjuris.com/republic (Links to an external site.) act no.
386/ History of the Civil Code)
The Spanish Civil Code upon the other hand, traces its roots to the
Napoleonic Code or the French Civil Code of 1804. The French Civil Code still
exists, with revisions. The Napoleonic Code remains as the most influential
civil laws of most countries of Continental Europe and Latin America in the
19th century. Prior to the codification of the Napoleonic Code diversity of laws
was the predominant characteristics of the pre-revolutionary legal order in
France. Southern France was governed by the Roman Law whereas the
northern provinces were governed by customary laws based largely on feudal
Frankish and Germanic institutions. (www.britannica.com/ (Links to an
external site.)Napoleonic Code)
We can still see in our present civil laws the influences of the Roman Law.
A host of Roman Law principles found its way in our present civil laws. The use
of Latin legal maxims, which was the language during the Roman rule in much
of Europe and Africa, are still commonly used among lawyers, law professors
and even law students.

1. IUS GENTIUM (literally “law of nations”)

Ius Gentium or Jus Gentium, literally means law of nations. In legal theory,
it refers to that law which natural reason establishes for all men, as
distinguished from jus civile, or the civil law peculiar to one state or people.
Roman lawyers and magistrates originally devised jus gentium as a system of
equity applying to cases between foreigners and Roman citizens. The concept
originated in the Roman’s assumption that any rule of law common to all
nations must be fundamentally valid and just. They broadened the concept to
refer to any rule that instinctively commended itself to their sense of justice.
Eventually the term became synonymous with equity, or the praetorian law. In
modern law, there is a distinction between jus gentium privatum, which
denotes private international law, otherwise known as conflict of laws, and jus
gentium publicum, which denotes the system of rules governing the
intercourse of nations. (www.britannica.com/jus (Links to an external
site.) gentium/Roman law)
During the reign of the Romans, inhabitants of the empire were treated
either as citizens or foreigners or barbarians. Ius Gentium, the body of rules
developed by the PRAETOR PEREGRINUS, was mainly used for the
purpose of resolving disputes between foreigners, or between a
foreigner and a Roman citizen. It was the earliest body of rules to
address a case involving a foreign element.
This is the early concept of international law within the ancient Roman legal
system. It is derived from the customs and laws of all nations.

1. IUS CIVILE or JUS CIVILE (meaning, civil law), was used in

ancient Rome to distinguish the law found exclusively in the City or Rome
from Jus Gentium, the law of all nations, found throughout the empire.
(britannica.com/ius (Links to an external site.) civile)

It basically pertains to the law that is applied only to Roman citizens. It

contains the rules and principles of law derived from customs and
legislation of Rome or from fundamental ideas of right and wrong implicit
in human minds.
1. THEORY OF STATUTES (THEORY OF STATUTA)

The idea of conflicting laws is something that is not novel. Ever since
different laws with different scopes of application existed, questions arose as
to which law should be applicable in a certain case.
IN THE FOURTEENTH CENTURY, the City states of Italy such as Milan,
Bologna, Genoa, Naples, Venice, etc. became centers of maritime commerce.
The growing number of traders at that time included foreign nationals who did
business with citizens of these City states.
Northern Italy, then, was divided into several city states. Each city had its
own local laws governing private matters. The varying laws in each city states
gave rise to the problem of WHICH LAW TO APPLY in transactions between
individuals of different city states. This prompted the jurists to make an
intensive study of conflict of laws in order to guide the business and trade
transactions of foreigners and citizens.
The first jurists to engage elaborately with these questions were the north
Italian commentators of the 14th century. On the basis of his predecessors,
Bartolus de Saxoferrato (1314- 1357) developed the so-called theory of statute,
a theory according to which the nature and content of the statute itself defined
whether it was applicable to a certain case. (www.law.ox.ac.uk/theory (Links
to an external site.) of Statuta)
BARTOLUS DE SAXOFERRATO, acknowledged as the father of
Conflict of Laws, was the first one who formulated the THEORY OF
STATUTES, understood as the local laws and customs of each City state.
The Theory of Statutes attempted to address the problem on what law to
apply in cases involving persons from different city states with different or even
conflicting laws. The THEORY provided rules on the choice of law problems.

1. THE SPREAD OF THE THEORY AND LEGAL PRACTICES

FROM ITALY TO FRANCE in the 16th Century.

This doctrine was specified by French legal scholars in the 16th century
who distinguished between three types of statute with specific legal effects:
statute personalia, statute realia, and statute mixta. The Dutch lawyers of the
17th century continued with this new theory of statute and introduced the
comity of nations as its basis. (supra)
According to the theory, statutes were further classified into:

 STATUTA REALIA- laws applicable to things and immovable

within the state.


  STATUTA PERSONALIA- personal laws /statutes followed the
person wherever he went and governed his status and capacity

 STATUTA MIXTA- mixed statutes/ laws applicable or applied to

all other matter including contracts.

Contracts, depending on where they were entered into by the different

nationals, fell under the domain of mixed statutes.

1. THE AGE OF COLONIZATION and the DUTCH JURISTS

The rules in resolving conflicting laws became more widespread in

application as Dutch jurists focused themselves with developing rules to
resolve conflicting municipal laws but also of the diverse legal systems of
sovereign nations.
Dutch jurists (Led by ULRICH HUBER, Dutch jurist who first coined the
term Conflict of Laws) (1596 – 1649) asserted that the state (a sovereign one)
is under no obligation to apply a foreign law within its
jurisdiction, UNLESS required by a treaty or comitas gentium, or
considerations of courtesy and expediency. This led to the development of
territorial principle under which the laws of the state would apply or operate
only within the territorial limits of such state.
One of the legal principles formulated based on the foregoing principle is
that formulated by JOHN VOET (1647- 1715) which states that no statute,
real or personal or mixed, can act by itself beyond the territory of the
legislator nor can it have any effect elsewhere against the will of the
legislator of another state.
Another influence of Huber among English and American legal writers is
the development of the territorial principle which states that the laws of every
state may operate only within the territorial limit of such state. However,
a sovereign state may recognize that a law which has already operated in
the country of its origin shall retain its force everywhere, provided that
this will not prejudice the subjects of the sovereign whose recognition is
sought.

1. THE ERA OF CODIFICATION OF LAWS. During this era,

European nations started codifying their laws. The rules on conflict of
laws as provided in the abovementioned theories and doctrines found
their way into these codified statutes.

Of material importance to the Philippine legal system is

the codification of the FRENCH CIVIL CODE OF 1804. As above
discussed, the French Civil Code became the pattern for the Spanish Civil
Code including the Codes of Belgium and Romania. The Spanish Code, which
was in effect in the Philippines during the Spanish regime in the Philippines
influenced to a great extent our present Civil Code.
The PRINCIPLE OF NATIONALITY contained in Article 3 of the French
Civil Code and later on adopted in the Spanish Civil Code found its way in our
present Civil Code.
It is now contained in Article 15 of our Civil Code, which states, to wit:
“Laws relating to family rights and duties or the status, condition and
legal capacity of persons are binding upon citizens of the Philippines,
even though living abroad.”
Later on, subsequent legal jurists advocated the theory of SITUS or the
principle that every element of a transaction should be governed by the law of
the place with which such element has the most substantive connection.
In the same manner, this principle found its way in our Civil Code more
particularly Article 16 or the “Lex situs rule”, which states, in part:
“Art. 16. Real property as well as personal property is subject to the law of
the country where it is situated. Xxx”

8. MODERN DEVELOPMENTS IN CONFLICT OF LAWS

1. The NEO-STATUTISTS- They follow the Italian theory in conflict of

laws which provides that when two or more independent laws are
applicable to a CONFLICT CASE, the method developed or devised by the
state shall be applied to determine what law shall prevail or shall apply to
the particular conflict case.

1. The INTERNATIONALISTS- They advocate the idea that there

should be a SINGLE BODY OF RULES that can solve problems involving a
foreign element.

1. The TERRITORIALISTS- They maintain that the law of the state

should apply to persons and things within the state and that no foreign law
should be made to apply. This group adheres to the view that ONLY
RIGHTS VESTED OR ACQUIRED under a foreign law are recognized in
the forum but NOT THE FOREIGN LAW ITSELF.

RELEVANCE OF CONFLICT OF LAWS

The diversity of municipal laws of various states and the occurrence of
transactions affected by the laws of two or more states give rise to conflicts
case or problems. The subject assumes even greater importance in the light of
recent technological developments in travel and business. Inter-country and
inter-continental travel has become less costly and more accessible. Hence,
more and more people move from one jurisdiction to another doing engaging
in business transaction virtually everywhere in this global village. Moreover,
even without leaving the confines of one’s home, one can navigate the entire
world virtually and do business transactions with people living in foreign
countries by the simple act of clicking some buttons. The world has become a
global village, so to speak. With these developments also come legal problems
between individuals from different jurisdiction with different laws or legal
system necessitating the application of conflict of laws. Needless to say,
conflict of laws or private international law has become even more relevant in
today’s unstoppable technological advances. Bartolus, his predecessors and
those who followed suit after him, in laying down the foundational principles of
conflict of laws, must be smiling in their graves for even after eons and
changing times, their works still find relevance in addressing evolving legal
problems that cut across territorial lines.

PUBLIC INTERNATIONAL LAW VS PRIVATE INTERNATIONAL

LAW

1. Both public international law and private international law are branches
of international law.
2. Public International Law governs the relationship of states and
international entities (like U.N., NATO, SEATO, WHO, IRC, etc.)

In contrast, private international law comprehends laws regulating private

transactions across national frontiers.
Private international law principally governs individuals in their private
transactions which involves a foreign element.
Private international law deals mainly with conflict of laws among the laws
of two or more states and necessitates a determination of which municipal law
applies to a case. The objective of private international law is to harmonize
municipal laws of states whenever conflict of law situation exists.

A more detailed distinction are as follows:

 Private International Law Public International Law

As to Source

It is based on domestic and municipal laws, Public International law is based on

which includes the constitution and statutes
adopted by individual countries.
international conventions, international
customs, the general principles of law
recognized by civilized nations, and judicial
decisions and the teachings of the most highly
qualified publicists of the various nations.

As to Subject or Persons Involved

The subjects of public international law are
The subjects of private international law are
sovereign states and international
individuals and corporations.
organization.
As to Character

National / municipal or LOCAL in character International in character

As to Transactions Involved

Private international law assumes control over Recognizes transactions in which sovereign
transactions which are strictly private in nature states are interested

As to Remedies Applicable/Applied

In case of violation of international laws, the

All the remedies are provided by municipal laws state may resort to diplomatic protest,
of the state, such as resort to courts and negotiation, arbitration, adjudication by filing
administrative bodies. cases before international tribunals or may
even resort to the use of force or war or use of
lesser form of coercion like economic
 sanctions like embargo, blockade etc.

References:

1. Conflict of Laws Cases, Materials and Comments

By: Jorge Coquia, Elizabeth Aguilling –Pangalangan

1. Review Notes in Conflict of Laws

By: Dean Honorato Y. Aquino

1. Elements of Private International Law

By: Fr. Ranhilio Callangan Aquino

1. Conflict of Laws

By: Galahad R. A. Pe Benito

Module 2-Conflict Case and

Phases of Conflict Resolution
Q: What is a conflict of law case/problem?
Conflict of law case pertains to any case/cases involving facts occurring in
more than one state or nation that must choose between the laws of different
states or countries in deciding the case (Sempio Dy, Handbook on Conflict of
Laws)

Q: What is a foreign element in conflict of laws?

The most important component of a conflict of law problem is the
presence of a foreign element. A foreign element is anything which is not
domestic and has foreign component to it. It can refer to a party to a
transaction who is foreigner, or a foreign corporation, or even an incident or
transaction happening in a foreign jurisdiction, or a foreign law chosen by the
parties. Without a foreign element, the case is only a domestic problem which
does not necessitate the application of rules in resolving (or harmonizing)
conflict problems.
Consider this illustration:
John, a 17-year old Malaysian citizen living in Kuala Lumpur, Malaysia, and
Pedro, a Filipino citizen, also residing in Kuala Lumpur, Malaysia, entered into
a contract of sale in Manila, Philippines whereby John sold to Pedro a
condominium unit owned by John in Kuala Lumpur, Malaysia for 10, 000 US
Dollars to be paid in Kuala Lumpur. The deed of sale was not notarized by a
notary public. After paying the consideration in Kuala Lumpur, Malaysia, Pedro
demanded the delivery of the condominium unit to him. John, however, for
unknown reasons, failed to deliver the condominium unit to Pedro. Pedro sued
John for specific performance with damages in the RTC of Manila, Philippines.
John advanced the defense that the contract is not valid as the same was not
reduced into a public instrument and that he has no legal capacity to enter into
a contract at the time the deed of sale was executed as he was only 17 years
old. Is the contract valid?
I do not intend to answer the question. The problem simply illustrates a
case involving a foreign element. First, the contracting parties are citizens of
different countries. Second, the contract was entered in the Philippines but the
real property involved is situated in a foreign country- Malaysia. Third, the
performance of the obligation will take place in Malaysia but the contract was
executed in Manila, Philippines. This is a conflict of law case/problem.
The resolution of this case necessitates the application of and interplay of
the laws of Malaysia and the law of the forum- the law of the place where the
action was filed. There is a need to harmonize the law of Malaysia with that of
the Philippines.
BUT if, let's say that both Pedro and John are Filipinos and the property
subject matter of the sale is a real property situated in the forum, and that the
performance of the contract would be in the Philippines, the case does not
involve any foreign element. It is a purely domestic case which does not call for
the application of any foreign law or the harmonization of Philippine law with a
foreign law. The application of Philippine laws on the problem would suffice for
the resolution of the case.
The most important element of a conflict of law problem is the existence of
a foreign element. A foreign element is anything which is NOT domestic and
has a foreign component to it. The foreign component or element may appear
in different forms. It may be a foreigner party to the case, a foreign corporation,
a transaction or an incident which took place in a foreign jurisdiction, or it may
even be the involvement of a foreign law chosen or agreed upon by the parties
to govern their transaction or agreement.
If the case has no foreign element in it, it is not a proper conflict of law
case or problem. If it has no foreign element in it, the same can be resolved
without recourse to a foreign law or legal system, it is purely a domestic case
which may be resolved by the court without applying a foreign law or
harmonizing the law of the forum with a foreign law.
Thus, it can be said that conflict of laws come into play only when: 1) there
is a legal problem or case with foreign element; and 2) there is a necessity for
the forum court to determine or resolve whether the law of the forum (where
the case is lodged) or the law of other states shall be applied or shall govern
the legal problem or case. Or whether a foreign judgment shall be recognized
or be made applicable to the forum. (Coquia, Conflict of Laws)
The concept of a foreign element in a case was exemplified in the oft-cited
case of Saudi Arabian Airlines v. Court of Appeals- GR No. 122191, Oct. 8,
1998 (Links to an external site.)
FACTS:

1. Saudi Arabian Airlines (Saudia) hired Milagros Morada (Milagros) as a

flight attendant. In one of the flights and while in Indonesia, two other crews
of Saudia, Thamer Al Gazzawi and Allah Al-Gazzawi, both Saudi nationals
attempted to rape Milagros. The attempt was timely thwarted by the
roomboy and security personnel of the hotel where Milagros was nearly
raped. Thamer and Allah were arrested by Jakarta Police.
2. After about two years, Milagros was requested to see the Chief Legal
Officer of Saudia in Jeddah, Saudi. She was brought to a police station
where she was questioned and her passport was confiscated.
3. After over a year and a half in Riyadh, Milagros was handed to a Saudi
Court where she was made to sign a document in Arabic which turned out
to be a notice to appear before the court.
4. Milagros was later on brought to the same court where a judge
rendered a decision finding her guilty of adultery, going to a disco, listening
to music, and socializing with the male crew members of Saudia, all in
violation of Islamic laws and tradition.
5. Finding the conviction wrongful, the Prince of Makkah dismissed the
case against Milagros and she was allowed to leave Saudi. However, she
was terminated from Saudia without being informed of the cause thereof.
6. Upon arriving in the Philippines, Milagros sued Saudia for damages.
7. Saudia filed an Omnibus Motion praying for the dismissal of the case on
the ground, among others, that the Complaint states no cause of action,
that the claim has been waived, abandoned or otherwise extinguished, and
that the trial court has no jurisdiction to try the case.
8. The trial court denied the Omnibus Motion as well as the Motion for
Reconsideration filed thereafter.
9. Saudia questioned the trial court’s denial of the Omnibus Motion before
the Court of Appeals. The CA sustained the order of the trial court.

The case reached the Supreme Court and among the issues raised
before the High Tribunal is:
Whether Philippine law governs plaintiff’s action against Saudia for damages.
HELD:
The Philippine law shall apply to plaintiff’s action for damages against
Saudia.
In this case, the SC had the opportunity to discuss the concept of a
foreign element in a case, thus:
A factual situation that cuts across territorial lines and is affected by the diverse
laws of two or more states is said to contain a foreign element. The presence
of foreign element is inevitable since social and economic affairs of individuals
and associations are rarely confined to the geographic limits of their birth or
conception.
The forms in which these foreign elements may appear are many. The foreign
element may simply consist in the fact that one of the parties to a contract is an
alien or has a foreign domicile, or that a contract between nationals of one
state involves properties situated in another state. In other cases, the foreign
element may assume a complex form.
In this case, the foreign element consisted in the fact that Milagros is a
resident Philippine national and that Saudia is a resident foreign corporation.
Also, by virtue of the employment of Milagros as a flight stewardess of Saudia,
events transpired during her many occasions of travel across national
boarders, particularly from Manila, Philippines to Jeddah, Saudi Arabia, and
vice versa, that caused a conflicts situation to arise.
NOTE: Read the full text of the case for a better appreciation of the High
Tribunal's discussion and resolution of the issue. I limited the outline in this
notes on the Court's explanation of the concept of foreign element in a case or
problem.

Q: What are the phases in the resolution of conflict

case/problem?
There are three basic phases in the resolution of conflict problem.
First is JURISDICTION. This phase concerns the power or authority of a
court to take cognizance of a case.
Second is the CHOICE OF LAW. This phase pertains to the determination of
the law which should be applied in a particular conflict
Third is the RECOGNITION AND ENFORCEMENT of JUDGMENTS
The phases of conflict resolution in a conflict problem is illustrated in the
case of Hasegawa v. Kitamura GR No. 14177, November 23, 2007 (Links
to an external site.)
FACTS

1. Nippon Engineering Consultants Co. Lt. (Nippon) and Minoru Kitamura

(Kitamura), a Japanese national permanently residing in the Philippines,
entered into an independent Contractor Agreement (ICA). The ICA
provided that Kitamura shall extend professional services to Nippon for a
year starting on 1 April 1999. For this purpose, Nippon assigned Kitamura
as its Project Manager in various projects in the Philippines.
2. February 28, 2000, Kitamura was informed by Nippon’s general
manager that Nippon will not renew the ICA with Kitamura and that his
services would be terminated by March 31, 2000. Nippon insisted that the
 ICA was only for a fixed term of one year and this will expire by the end of
March 2000.
3. Kitmura sued Nippon for specific performance and damages with the
RTC of Lipa City. Nippon moved for the dismissal of the case on the
ground of lack of jurisdiction. Nippon argued that the claim for improper
termination of the ICA may be ventilated only in the proper courts of Japan
pursuant to the principle of LEX LOCI CELEBRATIONIS and LEX
CONTRACTUS.
4. The RTC denied the motion to dismiss. The dismissal was affirmed by
the CA. the Court of Appeals ratiocinated that the principle of lex loci
celebrationis was not applicable to the case, because nowhere in the
pleadings was the validity of the written agreement put in issue. Moreover,
the CA affirmed the RTC’s application of the principle of lex loci solutionis.

ISSUE:

Among others, the issue raised before the SC is whether or not jurisdiction
over the subject matter of the Philippine court may be assailed on the
principles of lex loci celebrationis, lex contractus, and the state of the most
significant relationship rule, or forum non-conveniens.

HELD:
The principles of principles of lex loci celebrationis, lex contractus, and the
state of the most significant relationship rule, or forum non-conveniens are
improper grounds for questioning the jurisdiction of the Philippine court.
In this case, the SC discussed the reasons why the foregoing principles may
not be applied in questioning the jurisdiction of the RTC of Lipa City. In the
process, the SC emphasized the importance of determining the different
phases of conflict problem resolution. The SC teaches that the three phases
are separate and distinct from each other and a defense in one phase may not
be available as a defense in the other phases.
The following discussion of the SC are instructive:

1. The judicial resolution of conflict problems involves three consecutive

phases: jurisdiction, choice of law and recognition and enforcement of
judgement. Under the jurisdiction phase, the court shall deal with the
question, “Where can and should litigation be initiated?”. Under the choice
of law phase, the question is, “Which law will the court apply?”. Under the
third phase, the court shall settle the question, “Where can the resulting
judgment be enforced?”
2. Jurisdiction and choice of law are two distinct concepts. Under the
jurisdiction phase, the court considers whether it is fair to cause a
defendant to travel to this state to litigate his defenses. In choice of law
phase, the court further asks the question whether the application of a
 substantive law which will determine the merits of the case is fair to both
parties.
3. In this case, only the question of jurisdiction is in issue. In Nippon’s
motion to dismiss, it did not argue that the RTC of Lipa City had no
jurisdiction to hear the case. What Nippon raised as grounds to question
the jurisdiction of the RTC over the subject matter of the controversy were
the principles of lex loci celebrationis, and lex contractus, and the state of
the most significant relationship rule.
4. The SC finds the foregoing grounds unsound to support its argument
that the RTC lacks jurisdiction over the subject matter of the controversy.
5. The doctrine of lex loci celebrationis relates to the law of the place of the
ceremony or the law of the place where a contract is made. The doctrine of
lex loci contractus means the law of the place where a contract is executed
or to be performed. It controls the nature, construction, and validity of the
contract and it may pertain to the law voluntarily agreed upon by the parties
or the law intended by them either expressly or impliedly. Under the state
of the most significant relationship rule, to ascertain what state law to apply
to a dispute, the court should determine which state has the most
substantial connection to the occurrence and the parties. This rule takes
into account several contacts and evaluates them according to their
relative importance with respect to the particular issue to be resolved.
6. These three principles in conflict of laws has reference to the law
applicable to a controversy. They are proper for the second phase in
conflict resolution- the choice of law phase. These three principles
determine which state’s law is to be applied in resolving the substantive
issues of a conflicts problem.
7. Considering that the only issue involved in the case is that of jurisdiction,
the choice of law rules (lex loci celebrationis, lex loci contractus, state of
the most significant relationsip rule) are not only inapplicable to the issue of
jurisdiction but also not yet called for. The invocation of the foregoing rules
in choice of law phase is premature.

Summary of the lessons in Hasegawa in relation to the phases of conflict

resolution:

1. The judicial resolution of conflicts problems involves three main phases-

jurisdiction, choice of law, and recognition and enforcement of judgment.

1. Jurisdiction has many aspects. For a court to validly exercise its power
to adjudicate a controversy, it must have jurisdiction over the subject
matter, over the parties (plaintiff/petitioner and the defendant/respondent),
over the issues, and in cases involving properties, over the res or the thing.

1. Principles in conflict of law like lex loci celebrationis, lex loci contractus,
and state of the most significant relationship rule, which are rules proper
and applicable in the choice of law phase cannot be invoked in questioning
the jurisdiction of a court. They are not only misplaced grounds, but also
premature.

References:
A Review Notes in Conflict of Laws by Dean Honorato Y. Aquino
Conflict of Laws by Galahad R. Pe Benito
Conflict of Laws Cases, Materials and Comments by Jorge R. Coquia and
Elizabeth Aguiling -Pangalangan
 Module 3 -
Fundamental
Principles In
Jurisdiction
JURISDICTION
 What is
Jurisdiction?
▰ It is the authority by which courts and
judicial officers take cognizance of and
decide cases. (Black’s Law dictionary)
▰ It is the power to hear and determine a

cause. (Bouvier’s)
2
 What is
Jurisdiction?
▰ the power to try and decide a case (Herrera v.
Barreto 25 Phil 245 (1913) )
▰ the authority of the court to entertain a
particular kind of action or to administer a
particular kind of relief (Banco Espanol Filipina v. Palanca 37
Phil. 921 )
3
 “
▰ The power of a court:
▰ is prescribed by law
▰ is not boundless
▰ is fixed and limited by law
(Alliance of Government Workers vs. Minister of Labor 124
SCRA 1

4 The power of a court….

▰ Describes an official act taken
without a formal request from
In Andaya v.
another party
Abadia 228
▰ SUA SPONTE SCRA 705, 717,
the court, motu
▰ In Catholic canon law, it refers
proprio, should
to a document issued by the dismiss the
Pope on his own initiative and case if it lacks
personally signed by him jurisdiction.

5
when it appears from the

JURISDICTION
LACK OF
pleadings or the evidence on
record that the court has no
jurisdiction over the subject
matter…. the court SHALL
DISMISS THE CASE
Section 1, Rule 9, Rules of Court
 LACK OF
JURISDICTION
• All acts of the court rendered without jurisdiction are null
and void. It is a total nullity (Solid Homes Inc. v. Payawal
177 SCRA 72, 80)
• The decision in itself being worthless, all the
proceedings founded upon it are equally worthless
(Estoesta v. CA 179 SCRA 203)
• A testimony given in a case where the proceedings had
been nullified for lack of jurisdiction is inadmissible in
7 evidence(Dava vs. People 202 SCRA 62)
▰ It is THEREFORE
the duty of the • The court should not
court to ascertain wait for any of the
parties to raise the
whether it has issue.
power to act on a • It is incumbent upon
the court to
particular case or determine if it has
power to act further
further proceed in on the case.
hearing it.
LACK OF
8 JURISDICTION
JURISDICTION OVER THE PERSON
- the power of a court to render a judgment that will
bind the parties to a case
JURISDICTION OVER THE RES/THING
- power of the court over a particular subject matter
in controversy, regardless of the persons who may
be interested therein
JURISDICTION OVER THE
SUBJECT MATTER Aspects of
9 JURISDICTION
JURISDICTION OVER THE
SUBJECT MATTER
-power of the court to hear and determine
cases of the general classes to which the
proceeding in question belongs. This is
conferred by law. (Reyes vs. Diaz 73 Phil. 484)
-the power to try and decide the
class of litigation to which a
particular case belongs to
10
Jurisdiction Over
Subject Matter
 “
WHAT IS THE POWER OF THE COURT WHERE IT
LACKS JURISDICTION OVER THE SUBJECT MATTER?
THE ONLY POWER IT HAS
IS TO DISMISS THE CASE.
(Zamora vs. C.A. 183 SCRA 279)

2
 1. Jurisdiction over the subject matter is
conferred by law, which may either
Jurisdiction be the constitution or a statute. (De la
over the Cruz vs. CA 510 SCRA 103)
subject 2. Jurisdiction is not conferred by an
matter is a administrative order or a circular
creation of (Malaloan vs. C.A. 232 SCRA 249)

law: 3. It cannot be conferred by the

administrative policy of any court
(Arranza vs. BF Homes,Inc. 333 SCRA 799)
4. It cannot be conferred by a court’s
unilateral assumption of jurisdiction
(Tolentino vs. Social Security commission 138
SCRA 428) 3
 5. It cannot be conferred by the court’s
erroneous belief that it has jurisdiction (De
Jesus vs. Garcia 19 SCRA 554)
6. It cannot be conferred by the parties (Atlas
Development and Steel Inc. 184 SCRA 153)
Jurisdiction
7. It cannot be conferred by a contract (Luna
over the vs. Carandan 26 SCRA 306)
subject 8. It cannot be granted by agreement of
matter is a the parties, acquired through or waived,
creation enlarged or diminished by, any act or
of law: omission of the parties. (Republlic vs. Estipular, 336
SCRA 333) (Bar Q 1992)
9. It cannot be conferred by the parties’
silence, acquiescence, or consent
(Peralta Labrador vs. Bugarin 468 SCRA 308) 4
 “
Jurisdiction being a legislative creation in
character, neither the parties nor the court
may violate or disregard the same.
(Guian vs. Court of Appeals 510 SCRA 568)

5
DOCTRINE OF CONTINUITY
OF JURISDICTION
⊳ once a court has acquired jurisdiction, that
jurisdiction continues until the court has
done all that it can do in the exercise of that
jurisdiction
⊳ once jurisdiction has been acquired, retains
that jurisdiction until it finally disposes of the
case. ( De la Rosa vs. Rolda 501 SCRA 34)

6
DOCTRINE OF CONTINUITY
OF JURISDICTION

⊳ jurisdiction is not affected by a new law placing a

proceeding under the jurisdiction of another tribunal
⊳ even the finality of the judgment does not totally
deprive the court of jurisdiction over the case. What the
court loses is the power to amend, modify or alter the
judgment. The court retains the jurisdiction to enforce
and execute its judgment.
7
 Place your screenshot here

and Other
Related Principles

8
 LACK OF JURISDICTION VS.
PRESUMPTION OF JURISDICTION

• Section 3 (n) Rule 131 of the Rules on

Evidence provides for the presumption
that a court acts with jurisdiction.
• It is but a rebuttable presumption.
• It is not conclusive.
9
 CORRECT JUDGMENT WITHOUT
JURISDICTION VS. ERRONEOUS
JUDGMENT RENDERED BY A COURT WITH
JURISDICTION

• a wrong judgment rendered by a court acting

WITH jurisdiction may become FINAL AND
EXECUTORY
• a “correct” judgment rendered by a court
WITHOUT jurisdiction will NEVER become final
and executory
(Planas vs. CIR 3 SCRA 395, 399) 10
• A judgment rendered by a court bereft of
jurisdiction is characterized as a, “dead limb on the
judicial tree” (Anuran v. Aquino, 38 Phil. 29, 36 (1918)
• “DEAD LIMB ON THE JUDICIAL TREE, WHICH SHOULD
BE LOPPED OFF OR WHOLLY DISREGARDED AS THE
CIRCUMSTANCES REQUIRE. (Abbain v. Chua 11 SCRA 748, 754)
• A void judgment is in legal effect no judgment.
• By it, no rights are divested.
• From it, no rights can be obtained.

11
 PROHIBITED PLEADING
VS. JURISDICTION

• it is prohibited to file a motion to dismiss

(Rules on summary Procedure)
• However, if the MOTION TO DISMISS IS
PREMISED ON THE GROUND OF LACK OF
JURISDICTION (over the subject matter),
THE SAME MAY BE ALLOWED. 12
 PROHIBITED PLEADING
VS. JURISDICTION
• a motion to dismiss is now treated as a
PROHIBITED PLEADING (under the amended Rules
of Civil Procedure, which became effective on May 1,
2020, Section 12, Rule 15 RoC)
• HOWEVER, if the ground for the motion to
dismiss is lack of jurisdiction over the
subject matter, a motion to dismiss may be
allowed. 13
 PROHIBITED PLEADING
VS. JURISDICTION
LACK OF JURISDICTION over the subject
matter may be alleged in the affirmative
answer as a ground for the dismissal of the
action (Section 5, Rule 6 of the amended Rules of Civil
Procedure)

14
 • the thrust of our judicial
system is towards the early
resolution of cases and
controversies
COMPROMISE • Rule on Mediation
AGREEMENT
VS.
• But, the court is NOT
JURISDICTION EMPOWERED TO ALLOW THE
PARTIES TO COMPROMISE THE
ISSUE OF JURISDICTION.
15
 • parties are given the freedom to
stipulate the clauses, terms and
conditions of the contract as they
may deem convenient. (Art. 1306 Civil Code)
• parties cannot bargain away the
AUTONOMY OF jurisdiction of the court in a
CONTRACTS
VS contractual stipulation under the
JURISDICTION freedom to stipulate principle
• Art. 2035 pr. 5 of the civil Code
explicitly prohibits a compromise
on the jurisdiction of the court
16
 LACK OF The right to free access to courts apply
JURISDICTION
VS
only or is appropriate only in cases
RIGHT TO FREE where the court has jurisdiction as
ACCESS TO conferred by law.
COURTS

17
Jurisdiction
vs Estoppel
and Laches
 Q. The rule is that jurisdiction over the
subject matter of the case may be raised at
any stage of the proceedings. Is there an
instance where jurisdiction over the subject
matter may no longer be allowed to be
JURISDICTION
raised?
VS
LACHES
• a party may BE BARRED FROM
RAISING IT ON THE GROUND OF
LACHES OR ESTOPPEL.

2
 What is Estoppel?

⊳ ARTICLE 1431. Through estoppel an admission

or representation is rendered conclusive upon
the person making it, and cannot be denied or
disproved as against the person relying thereon.

3
What is Laches?

in a general sense, is failure or neglect,

for an unreasonable and unexplained
length of time, to do that which, by
exercising due diligence, could or should
have been done earlier;
 Estoppel by laches may set in if
there is undue delay in raising the
issue of lack of jurisdiction (Romualdez
vs, RTC of Tacloban 226 SCRA 408; La Campana Food
Products vs. C.A. 223 SCRA 151)

A party after having participated actively in

proceedings before court of appeals, is
estopped from later questioning the
jurisdiction of said appellate court.
(Navoa vs. Court of Appeals, 251 SCRA 545)
 Facts:
MANILA SURETY DID NOT RAISE ANY
QUESTION OR ISSUE AS TO THE
TIJAM VS. SIBONGHANOY JURISDICTION OF THE CFI.
23 SCRA 29 (1968)
Held:
In this case, the SC observed that
the case had been pending for
almost 15 years, and throughout the
entire proceeding MANILA SURETY
NEVER RAISED the question of
jurisdiction until it received the
court of Appeal’s adverse decision.
 THE SC. SAID THAT INDEED
THERE WAS LACK OF
TIJAM VS. SIBONGHANOY
JURISDICTION BY THE CFI
23 SCRA 29 (1968)
OVER THE SUBJECT MATTER
OF THE CASE.
However, considering the
peculiar facts and circumstances
of the case, the SC held that
SURETY IS NOW BARRED BY
LACHES FROM INVOKING THIS
PLEA AT THIS LATE HOUR.
 TIJAM VS. SIBONGHANOY
23 SCRA 29 (1968)
CAUTION: The ruling in Tijam on the matter of
jurisdiction vis-a-vis estoppel by laches is an
exception to the general rule. (Calimlim vs. Ramirez 118 SCRA 399
and Pangilinan vs. Court of Appeals, 321 SCRA 51)

Estoppel by Laches may be invoked to bar the issue

of objection on jurisdiction ONLY IN CASES IN WHICH
THE FACTUAL BACKDROP IS ANALOGOUS TO THAT
IN TIJAM
 A: Jurisdiction over the subject
Q:
WHAT matter is conferred by law and
DETERMINES determined by the allegations in the
JURISDICTION complaint or other initiatory
OVER THE
SUBJECT pleading. – Lacson vs. Executive
MATTER? Secretary, 301 SCRA 298

9
 Q: HENCE, JURISDICTION MUST BE
WHAT DETERMINED AS OF THE
DETERMINES COMMENCEMENT OF THE ACTION,
JURISDICTION
OVER THE
SUBJECT
MATTER?

10
 In determining whether the court has
jurisdiction over the subject matter, the
court should confine itself to the allegations
in the complaint
Q:
WHAT “It is not enough that a court has power in
DETERMINES the abstract to try and decide the class of
JURISDICTION litigations to which a case belongs; it is
OVER THE
SUBJECT necessary that said power be properly
MATTER? invoked, or called into activity, BY THE
FILING OF A PETITION, COMPLAINT OR
OTHER APPROPRIATE PLEADING.”
- CALUAG VS. PECSONJ 82 Phil 8, 13
11
Abrin vs. Campos, 203 SCRA 420
Q:
- Conversely, jurisdiction, does not depend on WHAT
the allegations in the answer or a motion to DETERMINES
dismiss. JURISDICTION
OVER THE
Multinational Village Homeowners v. Court SUBJECT
MATTER?
of Appeals, 203 SCRA 104
- The defenses in the ANSWER OR MOTION to
dismiss are not to be considered for
purposes of establishing jurisdiction over the
subject matter.
- If the rule be otherwise, the question of
jurisdiction would depend entirely on the
defendant. 12
 EDUCATION
De Jesus 2010-2019 v. Bristol Laboratories,
Venus has a beautiful name, but
2010-2019 55 SCRA 349- For
Mercury is the closest planet to
it’s terribly hot
purposes of determining jurisdiction
the Sun
over the subject
matter, the allegations in the complaint are deemed
hypothetically admitted
01 02 03 04
In determining whether a court has jurisdiction over
a case filed before 2010-2019
it, it is required that 2010-2019
the court
determines the nature of the action
Despite being red, Mars is a cold
place, not hot
or case whether
Jupiter is a gas giant and the biggest
planet in our Solar System

the same belongs to the class or classes of case or

cases the court is empowered to entertain.
 EDUCATION
2010-2019 2010-2019
Venus has a beautiful name, but Mercury is the closest planet to
it’s terribly hot the Sun
What properly characterizes an action
is NOT THE CAPTION or title of the
01 02 03 04
pleading or complaint.
(Alcasid vs. Court of Appeals- 217 SCRA 437)
2010-2019 2010-2019

The caption or title is NOT Despite being red, Mars is a cold

place, not hot
Jupiter is a gas giant and the biggest
planet in our Solar System

CONTROLLING.
 Q: IN CASE OF CONFLICT BETWEEN THE
ALLEGATIONS IN THE BODY OF THE COMPLAINT AND
THE RELIEFS PRAYED FOR, WHICH SHALL CONTROL
OR PREVAIL?

In the determination of the nature of the action, it is the

allegations in the body which shall control
THE PRAYER in a complaint is merely the conclusion of
the pleader as to the proper relief or reliefs he is entitled to
on the basis of his cause or causes of action.

It is NOT however binding to the court. The court may

grant a relief GREATER or LESSER in amount, or one even
totally different from the relief prayed for.
JURISDICTION
OVER
THE PERSON
OF the PARTIES
Jurisdiction Over The Person Of The Parties

● pertains to the power or authority of the court to

render a judgment or relief that will bind the parties to
a case

● power to render a personal judgment against a

person and is acquired by the voluntary appearance
of a party in court and his submission to the court’s
authority, or by the coercive power of legal process
exerted over the person.
Q: HOW IS JURISDICTION OVER THE PERSON
OF THE PLAINTIFF ACQUIRED?

Acquired by the court from the moment

the plaintiff invokes the aid or power of the
court BY INSTITUTING AN ACTION
THROUGH THE PROPER OR APPROPRIATE
PLEADING
Q: HOW IS JURISDICTION OVER
THE PERSON OF THE DEFENDANT ACQUIRED?

EITHER BY A VALID SERVICE OF ?

SUMMONS UPON HIM/HER OR BY
HIS/HER VOLUNTARY SUBMISSION
TO THE COURT’S AUTHORITY
 MAY LACK OF JURISDICTION
OVER THE PERSON OF THE DEFENDANT BE WAIVED?

• Lack of jurisdiction over the person of

the defendant may be waived either
expressly or impliedly
• Any defect in the service of summons
may be waived by the defendant or
may be cured by the defendant’s
voluntary appearance before the
court.
 HOW SHOULD VOLUNTARY APPEARANCE BE MADE SO

? THAT THE COURT MAY VALIDLY ACQUIRE JURISDICTION

OVER THE PERSON OF THE DEFENDANT?

● It must be the kind that amounts to voluntary

submission to the jurisdiction of the court

○ takes the form of an appearance that seeks

affirmative relief except when the relief sought is
for the purpose of objecting to the jurisdiction of
the court over the person of the defendant
 Example of acts constituting voluntary appearance:
● Defendant files a motion for reconsideration of
the judgment by default
● Defendant files a petition to set aside judgment
by default
● Defendant files the necessary/appropriate
pleading (ex. Answer)
● When the defendant files a petition for certiorari
without questioning the court’s jurisdiction (Navale
vs. CA 253 SCRA 705)
● An appearance in whatever form without expressly
objecting to the jurisdiction of the court over the person,
is a submission to the jurisdiction of the court. (Carballo
vs. Encarnacion 92 SCRA 974)
Case: A defendant filed a motion to dismiss
raising the question of lack of jurisdiction over
his person. The movant included other grounds
for the dismissal of the complaint. Under Section 20,
Rule 14 of the Rules of
Q: May this be construed as a voluntary
Civil Procedure, that is,
appearance by the defendant?
prior to its amendment,
the motion to dismiss on the ground
of lack of jurisdiction over the person of
the defendant which contains other grounds
for dismissal of the complaint
DOES NOT AMOUNT TO
A VOLUNTARY APPEARANCE
on the part of the defendant.
 HOWEVER,
under Section 23 and Rule 14
of the amended Rules of Civil Procedure,
the inclusion in a motion to dismiss
of other grounds aside from
lack of jurisdiction over the person
of the defendant
SHALL BE DEEMED
A VOLUNTARY APPEARANCE.
WHEN IS JURISDICTION OVER THE PERSON OF
THE DEFENDANT REQUIRED?
In an ACTION IN PERSONAM (Asiavest Limited vs.
court of Appeals, 296 SCRA 539)

It’s not a pre-requisite in an action IN REM

AND QUASI-IN REM
(ALLEN A. MACASAET vs. FRANCISCO R. CO, JR G.R. No. 156759
June 5, 2013)

Alba vs. Court of Appeals- 465 SCRA 495-

THE CHARACTER OF SUMMONS
SUMMONS has two-fold character:
1. The proper service of summons results
to the acquisition by the court of jurisdiction
over the person of the defendant;
2. The summons serves to INFORM the
defendant of the nature of the action against
him for purposes of satisfying the
requirements of due process.
 • For foreign private juridical entity doing
business in the Philippines:
How may a - service may be made on its
foreign resident agent designated in accordance
private with law
juridical entity - if there be no such agent, then on
be served the government official designated by law
summons? to that effect,
- or on any of its officers, agents,
directors or trustees within the Philippines
 • For foreign private juridical is not
registered in the Philippines and has no
How may a resident agent, but has transacted
foreign business in the Philippines:
private
juridical entity With leave of court, summons may be
be served served outside the Philippines by:
summons?
1. Personal service coursed through the
appropriate court in the foreign country
with the assistance of the DFA;
2. Publication in the country where the
defendant may be found AND by
serving a copy of the summons and the
 • In cases where the court has not acquired
jurisdiction over the person of the
WHAT IS THE defendant, the proceedings including the
EFFECT OF judgment thereon shall be void
LACK OF • It has the same effect as when the court
JURISDICTION has no jurisdiction over the subject
OVER THE matter.
PERSON
• In cases where a judgment is rendered
OF THE
where jurisdiction over the person of the
DEFENDANT?
defendant is not acquired, such judgment
shall not bind the defendant.
• Such judgment is void for lack of
due process
Q: HOW MAY JURISDICTION OVER THE RES
(THING) BE ACQUIRED?
• Jurisdiction over the particular subject matter in a
controversy, regardless of the persons who may be
interested therein.
• Jurisdiction over the res or property is obtained by a
seizure of the property under legal process of the court,
whereby it is held to abide by such order as the court
makes, and with respect to the persons whose rights in
the property are to be affected.
• Jurisdiction over the RES INCLUDES JURISDICTION
OVER THE PERSONAL STATUS OF A PLAINTIFF.
What is Residual Jurisdiction?
It is an extension of the original
jurisdiction of the trial court for certain
specific purposes after the perfection of
the appeal but before transmittal of the
original record or record on appeal but
before transmittal of the original record
or record on appeal to the appellate
court.
Module 4 - Forum
Non-Conveniens
 FORUM
NON-CONVENIENS
Q: WHAT IS FORUM NON-CONVENIENS?
▪ Simply means THAT THE FORUM (court of
administrative body where the case is filed) IS NOT
CONVENIENT.
▪ It is a discretionary power that allows courts to dismiss
a case where another court, or forum, is much better
suited to hear the case.
▪ . NOTE: THAT FORUM NON-CONVENIENS PERTAINS TO
THE INCONVENIENCE OF THE COURT NOT TO THE
INCONVENIENCE OF THE PARTIES.
Q: WHAT ARE THE GROUNDS UPON WHICH THE
INCONVENIENCE OF THE COURT MAY BE BASED?
1. That the controversy or matter may be better tried
and decided in another forum
a. upon the allegation that the main aspects of the
case/transaction transpired in a foreign
jurisdiction
b. upon the allegation that the evidence are found in
another forum or that the witnesses may be
readily available in another forum
Q: WHAT ARE THE GROUNDS UPON WHICH THE
INCONVENIENCE OF THE COURT MAY BE BASED?
2. That the non-resident plaintiff sought the forum (local
court) merely for the sole purpose of securing
procedural advantages or to convey or harass the
defendant.

3. That dockets of the forum are already clogged with

local cases and the forum is unwilling to accommodate
or extend local judicial facilities to non-resident or aliens
Q: WHAT ARE THE GROUNDS UPON WHICH THE
INCONVENIENCE OF THE COURT MAY BE BASED?
4. That there is inadequacy of the local judicial
machinery for effectuating the right sought to be
maintained

5. That there is difficulty in ascertaining foreign law.

Puyat vs. Zabarte
(406 Phil 413)
G.R. No. 141536
February 26, 2001

6
Facts:
• On 24 January 1994, Zabarte commenced an action to
enforce the money judgment rendered by the Superior Court
for the State of California,tra Costa, U.S.A. against petitioner
Puyat.
• The trial court granted Zabarte’s motion for summary
judgment.
• Puyat filed a motion to dismiss on the ground of lack of
jurisdiction and forum non-conveniens
• The court denied the motion to dismiss and eventually
decided in favor of Zabarte granting the latter’s prayers.
ISSUE: Whether or not the Court of Appeals
acted in a manner x x x contrary to law when
it affirmed the Order of the trial court granting
respondents Motion for Summary Judgment
and rendering judgment against the petitioner.
HELD:
Under the principle of forum non conveniens, even if the exercise of
jurisdiction is authorized by law, courts may nonetheless refuse to
entertain a case for any of the following practical reasons:
1) The belief that the matter can be better tried and decided
elsewhere, either because the main aspects of the case transpired
in a foreign jurisdiction or the material witnesses have their
residence there;
2) The belief that the non-resident plaintiff sought the forum[,] a
practice known as forum shopping[,] merely to secure
procedural advantages or to convey or harass the defendant;
9 9
HELD:
3) The unwillingness to extend local judicial facilities to non-
residents or aliens when the docket may already be
overcrowded;
4) The inadequacy of the local judicial machinery for effectuating
the right sought to be maintained; and
5) The difficulty of ascertaining foreign law. [27]
None of the aforementioned reasons barred the RTC from
exercising its jurisdiction.
THE MANILA HOTEL CORP. AND
MANILA HOTEL INTL. LTD.,
petitioners, NATIONAL LABOR
RELATIONS COMMISSION,
ARBITER CEFERINA J. DIOSANA
AND MARCELO G. SANTOS,
respondents.
G.R. No. 120077
October 13, 2000

11
HELD:
The NLRC was a seriously inconvenient forum.
The main aspects of the case transpired in two foreign
jurisdictions and the case involves purely foreign
elements.
The only link that the Philippines has with the case is
that respondent Santos is a Filipino citizen. The
Palace Hotel and MHICL are foreign corporations. Not
all cases involving our citizens can be tried here.
12 12
HELD:
Under the rule of forum non conveniens, a Philippine
court or agency may assume jurisdiction over the case
if it chooses to do so provided:
(1) that the Philippine court is one to which the parties
may conveniently resort to;
(2) that the Philippine court is in a position to make an
intelligent decision as to the law and the facts; and
(3) that the Philippine court has or is likely to have
power to enforce its decision.37 The conditions are
unavailing in the case at bar.
Module 5 - Lex
Fori and Other
Related Terms