Conflict of Laws

By: Lievj Alimangohan

Course Coverage
A. Introduction

1. General Considerations
2. Domestic Conflict of Law Rules

 Arts. IV and V, Sec. 1, 1987 Constitution

Art. IV- CITIZENSHIP

Section 1. The following are citizens of the Philippines:
[1] Those who are citizens of the Philippines at the time of the adoption of this Constitution;
[2] Those whose fathers or mothers are citizens of the Philippines;
[3] Those born before January 17, 1973, of Filipino mothers, who elect Philippine citizenship upon
reaching the age of majority; and
[4] Those who are naturalized in accordance with law.

ARTICLE V
Article V. SUFFRAGE
Section 1. Suffrage may be exercised by all citizens of the Philippines not otherwise disqualified by
law, who are at least eighteen years of age, and who shall have resided in the Philippines for at least
one year, and in the place wherein they propose to vote, for at least six months immediately preceding
the election. No literacy, property, or other substantive requirement shall be imposed on the exercise of
suffrage.

 Arts. 14, 15, 16, 17, 815, 816, 817, 818, 819, 829, 1039, 1319, and 1753,
Civil Code of the Philippines

Penal laws and public security and safety

Article 14. Penal laws and those of public security and safety shall be obligatory upon all who live or
sojourn in the Philippine territory, subject to the principles of public international law and to treaty
stipulations. (8a)

Family rights and duties, or to the status, condition

Article 15. Laws relating to family rights and duties, or to the status, condition and legal capacity of
persons are binding upon citizens of the Philippines, even though living abroad. (9a)

Real property and personal property

Article 16. Real property as well as personal property is subject to the law of the country where it is
stipulated.

However, intestate and testamentary successions, both with respect to the order of succession and to
 the amount of successional rights and to the intrinsic validity of testamentary provisions, shall be
regulated by the national law of the person whose succession is under consideration, whatever may be
the nature of the property and regardless of the country wherein said property may be found. (10a)

The forms and solemnities of contracts, wills, and other public instruments

Article 17. The forms and solemnities of contracts, wills, and other public instruments shall be
governed by the laws of the country in which they are executed.

When the acts referred to are executed before the diplomatic or consular officials of the Republic of the
Philippines in a foreign country, the solemnities established by Philippine laws shall be observed in
their execution.

Prohibitive laws concerning persons, their acts or property, and those which have for their object public
order, public policy and good customs shall not be rendered ineffective by laws or judgments
promulgated, or by determinations or conventions agreed upon in a foreign country. (11a)

 Arts. 10, 21, 26, 35, 36, 37, 38, 80, 96, 184 and 187, Family Code of the
Philippines

 Art. 2, Revised Penal Code

 Sec. 146, Revised Corporation Code (Read also Secs. 140 - 153)
 Rule 14; Rule 39, Sec. 48; Rule 131, Sec. 3(n); Rule 132, Sec. 25, Rules of
Court

LECTURE ON CONFLICTS OF LAW

Definition
Conflict of laws (or private international law) is that part of the municipal law of a state which directs its
courts and administrative agencies, when confronted with a legal problem involving a foreign element,
whether or not they should apply a foreign law or foreign laws.
In the judicial resolution of conflicts problems, three consecutive phases are involved:
1. Jurisdiction,
2. Choice of law, and
3. Recognition and enforcement of judgments
Analytically, jurisdiction and choice of law are two distinct concepts. (Hasegawa)

Jurisdiction Choice of law

Jurisdiction considers whether it is fair to cause a Choice of law asks the further question whether
defendant to travel to this state the application of a substantive law which will
determine the merits of the case is fair to both
parties.
The power to exercise jurisdiction does not automatically give a state constitutional authority to apply
forum law.

While jurisdiction and the choice of the lex fori will often coincide, the "minimum contacts" for one do
not always provide the necessary "significant contacts" for the other.

Jurisdiction defined
Jurisdiction is the authority of a tribunal to hear and decide a case. (from the latin “jus dicere” meaning
“the right to speak”)
When court/tribunal has no jurisdiction.
It has no alternative but to dismiss the case. Any judgment rendered without or in excess of jurisdiction is
clearly null and void even in the state that rendered it, in view of the lack of “due process”. (Pennoyer v.
Neff, 95 US 714)
Kinds of jurisdiction

1. Over the subject matter (BP 129 as amended)

- Jurisdiction over the subject matter/controversy/issue is conferred by law.
- It cannot be determined by parties or by agreement
- The jurisdiction of the court is based or dependent on the allegations or reliefs by the
parties.
- Feud- MTC
- Those incapable of pecuniary estimation- RTC

2. Over the person

- Jurisdiction over the person is the power of the court to render judgment that will be
binding on the parties involved: the plaintiff and the defendant.
- Jurisdiction over the plaintiff is acquired upon the filing of the complaint or service of
summons or voluntary appearance
- Jurisdiction over the defendant is acquired through:
 Voluntary appearance
 Personal service of summons;
 Substituted service of summons;
  By publication (not sufficient, whether the defendant is in the Philippines
or not)
 When service by publication authorized
1. Actions in rem
2. Quasi in rem
3. Actions involving the personal status of plaintiff (Rule 14,
Sec. 15. 1997 Rules on Civil Procedure)

3. Over the res

- It is the jurisdiction over the particular subject matter in controversy, regardless of the
persons who may be interested thereon.

Action in rem v. action in personam

In rem
Directed against the thing itself
Binding upon the whole world
In personam
Directed against a particular
person or persons
Binding only between and
among the parties in the case

Threshold of jurisdiction
1. Minimum contact or establish presence
- In Perkins case- The president conducted zoom meetings, business correspondence,
banking, stock transfers, payment of salaries, purchasing of machinery, etc.
- In International Shoe case- the salesmen were employed, they exhibited product samples
to prospective buyers, at prices and on terms fixed by appellant

2. Due process
- Due process requires only that, in order to subject a defendant to a judgment in personam,
if he be not present within the territory of the forum, he has certain minimum contacts
with it such that the maintenance of the suit does not offend "traditional notions of fair
play and substantial justice."

3. Fairness
- Jurisdiction considers whether it is fair

WAYS OF DEALING WITH A CONFLICTS PROBLEM:

1. dismiss the case, either because of lack of jurisdiction or refusal to assume jurisdiction over
the case;
2. assume jurisdiction over the case and apply the internal law of the forum; or
3. assume jurisdiction over the case and take into account or apply the law of some other State
or States

Conflict of laws make reference to the law applicable to a dispute

Rules proper for the Second Phase – Choice of law
  State of the most significant relationship rule," it ascertains 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.
 Lex Domicilii – law of the domicile; in conflicts, the law of one’s domicile applied in the
choice of law questions
 Lex Fori – law of the forum; that is, the positive law of the state, country or jurisdiction of
whose judicial system of the court where the suit is brought or remedy is sought is an integral
part. Substantive rights are determined by the law where the action arose (lex loci) while the
procedural rights are governed by the law of the place of the forum (lex fori)
 Lex Loci – law of the place
 Lex Loci Contractus – the law of the place where the contract was made or law of the place
where the contract is to be governed (place of performance) which may or may not be the
same as that of the place where it was made
 Lex Loci Rei Sitae – law of the place where the thing or subject matter is situated; the title to
realty or question of real estate law can be affected only by the law of the place where it is
situated
 Lex Situs – law of the place where property is situated; the general rule is that lands and other
immovables are governed by the law of the state where they are situated
 Lex Loci Actus  – law of the place where the act was done
 Lex Loci Celebrationis – law of the place where the contract is made
 Lex Loci Solutionis – law of the place of solution; the law of the place where payment or
performance of a contract is to be made
 Lex Loci Delicti Commissi – law of the place where the crime took place
 Lex Mereatoria – law merchant; commercial law; that system of laws which is adopted by all
commercial nations and constitute as part of the law of the land; part of common law
 Lex Non Scripta – the unwritten common law, which includes general and particular customs
and particular local laws
 Lex Patriae  – national law
 Renvoi Doctrine – doctrine whereby a jural matter is presented which the conflict of laws
rules of the forum refer to a foreign law which in turn, refers the matter back to the law of the
forum or a third state. When reference is made back to the law of the forum, this is said to be
“remission” while reference to a third state is called “transmission.”
 Nationality Theory – by virtue of which the status and capacity of an individual are
generally governed by the law of his nationality.  This is principally adopted in the RP
 Domiciliary Theory – in general, the status, condition, rights, obligations, & capacity of a
person should be governed by the law of his domicile.
 Long Arm Statutes – Statutes allowing the courts to exercise jurisdiction when there are
minimum contacts between the non-resident defendant and the forum.

What is venue? Where u file the case

What is the rule on venue?
Real v. Personal actions
What are the conditions for a enforceable venue clause?
Civil only
1)Must be restrictive.. must signify exclusivity/ exclusion to all other courts

2)Not burdensome to the parties, not injurious to the public

What is the ruling of the Court in Condition 14? What is peculiar in condition 14

Is Condition 14 subject to negotiation?

No, because the nature of the ticket: adhesion contract

What is the min contact?

Presence

Due process
Min contact essential in action in personam

In the case of Benguet.. non resident foreign corpo,

If non resident-- basic req doing business in Ph—

1) register
2) resident agent formally residing in Ph; role--summons be serve in case of action

How to exercise jurisdiction over non resident, not doing business?

GR: court CANNOT acquire jurisdiction, even publication is not sufficient

Example:
What if nrfc in NY, president Mr. Smith resides in Ph entering contracts in his name, contract executed in
NY, all activities in NY, claimant files an action in person against Mr. Smith in his personal capacity, will
the case be filed? Can Benguet case be filed?

Ans: YES. We can establish his presence in the forum by the mere fact that he is actually here. We can
implead a resident alien.
Cases:
1) sweet lines
2) Intl Shoe
3) Perkins v. Benguet

Threshold question: Jurisdiction, can you file? where to file?

Relevant is establish min contact (by physical presence, activities) and forum
Question of min contact, impose a question of due process. Will it be unjust for forum to exercise
jurisdiction over the person?

1) jurisdiction
2)Court shall decide if it shall assume jurisdiction
3) choice of law

3rd meeting:
What law applies?
1) Jurisdiction
2) Choice of law

What is the test for court to assume jurisdiction over the defendant?
• Minimum contact test is not the same as a resident and doing business

Intl Shoe Case

• Delaware corpo
• What court with forum? Washington
• Did enter into contract or sales? No
• Right to due process
• What was underlying case–unemployment compensation fund-social benefit for employees/
action in personam
• Is foreseeability applicable? Payment due to the State/ statutory requirement
 Presence analysis

Vokswagon case
• Underlying case—product liability action
• Defendant Worldwide Volkswagen
• Bought car in NY/ audi car—fuel leak, fire, accident
• Why sued? Defective design and placement of gas tank and fuel system
• Volkswagen located in NY—no business and activity in Oklahoma—tortious act done in

 Foreseeability Test- He should reasonably anticipate being haled into court there. There
are no relations or ties with the State of Oklahoma.
 The mere presence of a product in the form is not a requisite for minimum contract.
 Foreseeability - likelihood that the defendant’s activities given his/her activities can anticipate
being brought/haled to court.
 The plaintiff’s argued that the car would go to Oklahoma and met an accident there.

Oklahoma
• Foreseeability as to being brought to court—NOT foreseeable

Benguet case
• Non-resident foreign corpo in State of Ohio
• Court affirmed exercise of jurisdiction—conducted meeting; carried on correspondence; carried
out essential managerial functions—is sufficient to establish minimum contact—presence in Ohio is
enough, corpo activities in Ohio and not be unjust for defendant to be sued in Ohio
• President, private respondent, is in Ohio
• Underlying case—payment of dividends/ action in personam—personal jurisdiction is essential—
otherwise void
• Foreseeability—YES/ claim for dividends
Calder Case
 Libel
 Effects of libelous article
 Malicious intent not just injurious or false
 California is a proper forum because of their intentional conduct in Florida calculated to cause
injury to respondent in California.
 Minimum contact—matter of presence/ question of foreseeability; question of due process
 Intent to have an effect the article to be in California.
 The imputation must be malicious; The imputation must be defamatory; The imputation must be
made publicly; The offended party must be identifiable
 Intent becomes material under effects analysis when there is no basis in determining the area of
forum state.
 Effects test- effect where the injurious activity has a locus in the forum, so that the forum
may exercise jurisdiction over the defendant. Apply this depending on the nature of the claim.
Where you have sufficient activity to estblihs sufficient to but in a claim where intent is essential
 Intent plus injury is a locus of that injury. Distinguish this to Intent sufficient to establish liability
and guilt.
 Nature of the claim is one for libel which has necessarily intent. If the nature of the claim is one
which contemplates intent to injury and that is relevant to effect analysis but that is not yet a
determination of the intent.
 Their intentional, and allegedly tortious, actions were expressly aimed at California. Petitioner
South wrote and petitioner Calder edited an article that they knew would have a potentially
devastating impact upon respondent. And they knew that the brunt of Page 465 U. S. 790 that
injury would be felt by respondent in the State in which she lives and works and in which the
National Enquirer has its largest circulation.
 Effects Analysis- Calder

Philsec case
 Genera rule: No court may assert its jurisdiction over an entity that is not in the Philippines.
 Exception: If the action is in rem or quasi in rem, jurisdiction over the person is not essential. The
court can validly try the case.
 The defendant must be notified to satisfy the process of due process.
 Action in personam is essential, otherwise the judgment will be void.
 How do you summon a non-resident alien? Extra territorial service of summons
 There must be strict compliance with the requirements of civil procedure.
 A defendant who is a non-resident and is not found in the country may be served with summons
by extraterritorial service in 4 instances: [1] Affects the personal status of plaintiffs; [2] Relates
to or subject of which is property in the Philippines (real or personal) , in which the defendant
has claim, lien or interest, actual or contingent; or [3] In which relief demanded consists wholly,
or in part, in excluding the defendant from any interest therein; or [4] Property of defendant has
been attached within the Philippines
 How extraterritorial service effected
 Such service may, by leave of court, be effected:
 1. By personal service (Sec. 6, Rule 14)
2. By publication, but copy of the summons and the order of the court must be sent by registered
mail to the defendant’s last known address.
3. In any other manner that the court may deem sufficient (i.e. registered mail.
 Lack of jurisdiction over the person
• Non-resident corpo and alien/ civ pro problem--

Extra-territorial service
• Property located in Ph
• For the purpose to exclude defendant from that property
• Property of defendant attached
• Where the action involves or affects personal status of plaintiff
• Leave of court

Pantaleon case
• Case where extraT is allowed and strict compliance
Notify defendant
• Provide proof of service made by publication done by
• Affidavit
• Prior resort to personal service, but failed
• Direct to defendant by direct mail to his last known address/residence
• Review rules on summons
• Non-resident—no jurisdiction/ courts cannot build authority if outside Ph

Jurisdiction over the res

• Court’s authority over the property
• Acquired by seizure/ not necessarily possessed/ sufficient to be within the territory and proper
legal procedure done/ not literal possession
• By institution of legal proceeding court has power over property
• Court cannot acquire jurisdiction although voluntary appearing? Appear to question court’s
jurisdiction/ grounds for motion to dismiss
• Action in personam—
• Quasi in rem—is service of summon to defendant essential? Yes, for due process requirement,
same with in rem

Perkins case:
• Claims for dividends
Should foreseeability be applied?
GR: if non-resident does not appear, court cannot acquire jurisdiction
• X: if action in rem or quasi in rem; or via extra T service
• Absence of defendant does not nullify the proceeding
• Personal jurisdiction in action in rem—not essential; service of service to comply with
requirement of due process
• What’s action quasi in rem? Action which affect personal right of person over property; brought
against individual/defendant but the purpose of the action is to affect that person interest over the
property; example: foreclosing a mortgage; discharging claims—mortgages; property ha s been attached;
court may proceed without personal jurisdiction over defendant
• In rem—affects everyone; decision binds the whole world
Remember:
• Jurisdiction over the person—test of min contact, not same test with doing business/ not with
domicile/residence—separate inquiry
• Presence is not equivalent to resident
• Twin requirement: Foreign corpo: Obtain license in Phil and appoint resident agent
• If no license, cannot sue (cannot obtain any relief in Ph court) if FC is doing business in Phil.
• When considered doing business? Twin characterization test; substance test; continuity test
• Substance test—corpo carrying activities for the purpose it was organized
• Continuity test/ characterization—carries with regularity and activities normally incidental to
the purpose and object of corpo
• Statutory definition for doing business—Foreign investment Act
• If doing business in Ph, must obtain license and appoint resident agent
• Exceptions:
1) estoppel/ action against defendant/ right benefits/ defendant not be allowed deny the existence and
personality of foreign corpo/
2) suing in isolated transaction;
3) principle of ex injuria (FC can be sued, provided compliance of all rules); cannot setup non-compliance
with Ph laws as defense; no person may benefit from its own illegal conduct

French case
 It is essential that it is an act of the state, so it is binding
 Sovereign immunity v. Act of State Doctrine
 The defendant is not entitled to sovereign immunity. In view of the State Department's
conclusion that the activities out of which the present action arose "were of a jure gestionis
[commercial] * * * nature"

In re: Philippine National Bank v. United States District Court

Acts of state is carried by the political branches such as executive, legislative and judicial branches.

Where the
The claim is nevertheless barred if the
Jurisdiction may nevertheless hear the