Professional Documents
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Chapter 2 - Conflict of Laws Reviewer
Chapter 2 - Conflict of Laws Reviewer
Chapter 2 - Conflict of Laws Reviewer
ISSUE
WON NY Law contravenes California’s
fundamental public policy.
HELD
NY Law contravenes California’s fundamental
PRINCIPLE 3: RELEVANT POLICIES OF THE public policy
FORUM
- Each forum considers certain values to be of California’s notice-prejudice rule – requires
highest import to them. an insurer to prove that the insured’s late notice of a
- In considering a foreign law, US Courts may claim has substantially prejudiced its ability to
look at the fundamental fairness of a law investigate and negotiate payment for the insured’s
before recognizing its validity. claim.
- In the Philippines, the courts consider
protection for labor to be of highest import. The first reason for establishing the notice-
prejudice rule as a fundamental policy of our state is
that the notice-prejudice rule cannot be The borrowers failed to pay their loan
contractually waived and thus, restricts freedom obligations upon maturity.
of contract.
CADALIN, et.al. vs POEA ADMINISTRATOR The creditor filed the following:
a) Collection cases in England and Hongkong
FACTS b) Extrajudicial foreclosure of real estate
Cadalin et.al., were recruited by AIBC and mortgages before the Provincial Sheriff of
employed by BRII to work in several countries. Some Bulacan.
were deployed to work in Bahrain.
The properties under the real estate mortgages
They were prematurely terminated from their were subsequently sold at public auction.
work and upon their return to the Philippines, they
sued AIBC and BRII for illegal dismissal and monetary ARC filed an action for damages against
claims. BANTSA before the RTC for the latter’s act of
foreclosing extrajudicially the real estate mortgages
Bahrain had a law governing prescription of despite the pendency of collection suits before foreign
actions: courts.
“Claim arising out of a contract of
employment shall not be actionable after the BANTSA appealed to the SC contending that
lapse of 1 year from the date of the expiry of “the mere filing of a personal action to collect the
the contract.” principal loan does not suffice. A final judgment must
be secured and obtained.”
POEA Ruling
That the prescriptive period for the filing of ISSUE
claims was 10 years. WON the petitioner’s act of filing a collection
suit against the principal debtors for the recovery of
NLRC reversed the ruling of the POEA stating the loan before the foreign courts constituted a waiver
that the prescriptive period was 3 years as provided of the remedy of foreclosure?
under the Labor Code.
HELD
Yes.
ISSUE
WON Amiri Decree No. 23 could be applied in 1) In our jurisdiction, the remedies available to
our jurisdiction. the mortgage creditor are deemed alternative
and not cumulative.
o An election of 1 remedy operates a
HELD waiver of the other.
No. Amiri Decree No. 23 is contrary to our o As to extrajudicial foreclosure, such
public policy on the protection of labor. remedy is deemed elected by the
mortgage creditor upon filing of the
The courts of the forum will not enforce any petition not with any court of justice
foreign claim obnoxious to the former’s public policy. but with the Office of the Sherriff of the
To enforce the 1-year prescriptive period of the Amiri province where the sale is to be made.
Decree No. 23 of 1976 as regards the claims in
question would contravene the public policy on the 2) The mere filing of an ordinary action for
protection to labor. collection operates a waiver of the mortgage-
creditor’s remedy to foreclosure the mortgage.
- NO FINAL JUDGMENT IN THE COLLECTION
SUIT IS REQUIRED FOR THE RULE ON WAIVER
BANK OF AMERICA NT & ASIA VS AMERICAN TO APPLY!
REALTY CORPORATION
3) BANTSA alleges that under English law, the
FACTS mortgage does not lose its security interest by
BANTSA granted multi-million-dollar loans to simply filing civil actions for sums of money.
several borrowers who were not able to pay. Both - The Philippine law shall apply notwithstanding
creditor and debtor entered into restructuring the evidence presented by petitioner to prove
agreements secured by real estate mortgages the English law on the matter.
executed by ARC over its properties located in the
Philippines. 4) When the foreign law, judgment, or
contract is contrary to a sound and
established public policy of the forum, the 1) Compare the laws and interests of 2 states
said foreign law, judgment or contract 2) Determine if there is a real conflict
shall not be applied. 3) If a real conflict exists, apply the law of the
state whose interest is more impaired.
5) The public policy sought to be protected in the
instant case is the principle imbedded in our
jurisdiction proscribing the splitting up of a KEARNEY VS SALOMON SMITH BARNEY
single cause of action.
FACTS
6) Foreign law should not be applied when its Kearney and Levy are California residents
application would work undeniable injustice to employed with WorldCom. They were granted stock
the citizens or residents of the forum. options which could only be exercised through SSB.
In a Philippine law, “no child under 7 years of age Third, if the court finds that there is a true
shall be separated from the mother.” Thus, the conflict, it carefully evaluates and compares the nature
agreement contravenes the same. and strength of the interest of each jurisdiction in the
application of its own law “to determine which state’s
interest would be more impaired if its policy were
subordinated to the policy of the other state.”
PRINCIPLE 4: RELEVANT POLICIES OF OTHER NOTE: The language of Sec 632 does not explicitly
INTERESTED STATES address the issue whether the statute was intended to
apply when 1 party to a telephone call is in California
It indulges the courts to engage in a governmental and another party is outside California.
interest analysis when 2 states have conflicting laws
and interests. The legislatively prescribed purpose is “to protect the
privacy of the people of his state” and that purpose
In governmental interest analysis, courts: certainly supports application of the statute of the
statute in a setting in which a person outside California
records, without the Californian’s knowledge or
consent, a telephone conversation of a California
resident who is within California.
B
The basic provision of the Georgia privacy
statute provides that “it shall be unlawful for:
1) Any person in a clandestine manner
intentionally to overhear, transmit, or record or
attempt to overhear, transmit or record the
private conversation of another which shall
originate in any private place.”