Conflict of Laws Syllabus FEU DLSU 2014

FEU-DLSU JD-MBA PROGRAM 2ND TRIMESTER SY 2012

Course Title: PRIVATE INTERNATIONAL LAW Instructor: ENRIQUE V. DELA CRUZ, JR.1 COURSE DESCRIPTION

The course deals primarily with conflict of law rules under Philippine law, and the

relevant principles and case law which deserve the attention of law students, particularly the areas most frequently asked in the bar exams.

The course begins with a discussion of the general principles of private

international law and the corresponding cases, which provide an overview of the entire subject matter. A detail treatment of the different subject areas will follow, including the concepts of jurisdiction, choice of law, choice of forum, characterization, nationality, domicile, renvoi, personal status and capacity, family law, contracts, international sale of goods, conflict laws in torts, foreign corporations, and enforcement of foreign judgment. GRADING SYSTEM:

Class Standing 25% Preliminary Examinations 35% Final Examinations 40% 100%

Class standing includes attendance, quizzes and other written works, which may be assigned from time to time.

For purposes of marking exams and quizzes (essays), the passing score is 75 points.

COURSE REFERENCE: Students are not required to buy any book for this class. However, students may use as course reference, two (2) books (any edition): CONFLICT OF LAWS, by Jorge R. Coquia and Elizabeth A. Pangalangan; and PRIVATE INTERNATIONAL LAW, by Jovito R. Salonga. COURSE OUTLINE (WITH CASE LIST):

General Principles: Q: What is Private International Law? A: Part of municipal law of a State which directs its courts and administrative agencies, when confronted with a legal problem involving foreign element, whether or not they should apply foreign law/s or not.

1 Atty. Dela Cruz obtained his Master of Laws in International & Comparative Business law (with Distinction) from the

London Metropolitan University, and a Diploma in International Trade Law from the University College London, U.K., as a Chevening scholar of the British government. In December 2002, he completed a Fellowship on Leadership and International Relations at the John F. Kennedy School of Government, Harvard University, USA. In 2001, he obtained his

Masters in Public Management degree from the Ateneo School of Government. He earned his Bachelor of Laws degree (3rd Honors) in 2000 and his AB Legal Management degree (cum laude) in 1996, both from the University of Santo Tomas

as a Rectors Scholar. He is currently an elected Board Member of the 2nd District of Bulacan. He is also currently a Partner at the Ponce Enrile Reyes & Manalastas ( www.PECABAR.ph ) Law Office in Makati City.

Conflict of Laws Syllabus Atty. Enrique V. dela Cruz, Jr.

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Q: What are the Functions of Private International Law? A:

1. Determination of which country has jurisdiction 2. Applicability of a particular place of either the local or foreign law

3. Determination of the force, validity & effectiveness of a foreign judgment Q: How is Private Distinguished from Public International Law? A:

1. Monist school Both subjects are essentially the same, because they manifest a single concept of law, ultimately addressed to the same individual.

2. Dualist School

Private International Law

Public International Law

Nature Municipal in character International in character

Persons Involved Private individuals Sovereign states and other entities possessed of international personality

Transac- tions Involved

Private transactions b/w private individuals

Transactions w/ generally affect public interest; or of interest only to sovereign states

Remedies/ Sanctions

Resort to municipal tribunals

Remedies may be peaceful or forcible

Q: What are the Philippine Conflict Rules Found in the Civil Code? A:

Article Defining Points

14 Territoriality Principle Penal laws and those of public security and safety shall be obligatory upon all who live or sojourn in the Philippines, subject to the principles of international law and treaty stipulations.

15 Nationality Principle 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.

16 Lex Rei Sitae Real property as well as personal property is subject to the law of the country where it is situated.

17 Lex Loci Celebrationis 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.

21,FC When either or both of the parties to a marriage are aliens, it is necessary, before securing marriage license, to provide themselves w/ certificate of legal capacity to contract marriage.

26,FC All marriages solemnized outside Philippines in accord w/ the law in force in the country where they are solemnized, and valid there as such, shall also be valid here except those prohibited under Arts 35 (1), (4), (5), (6), 36,37, 38 of FC.

80,FC In absence of contrary stipulation in a marriage settlement, property relations of spouses shall be governed by Philippine laws regardless of the place of the celebration of marriage& their residence

815 The will of a Filipino in a foreign country, provided he is authorized to make a will in any of the forms established in the country where he is, may be probated in the Philippines

816 Will of an alien produces effect in the Philippines if made w/ formalities prescribed by law of the place where he resides, or of his own country, or


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of the Civil Code of the Philippines 817 If an alien makes a will in the Philippines in accord w/ formalities

prescribed by the laws of his country, his will shall have same effect as if executed according to Philippine laws

819 Joint wills executed by Filipinos in a foreign country will not be valid

829 Revocation of will done outside Philippines by person who does not have his domicile here is valid when done according to the law of the place where testator had his domicile at the time

1039 Capacity to succeed is governed by decedents national law 1753 Law of the country to w/c goods are to be transported shall govern the

liability of the common carrier for their loss, destruction or deterioration

CASES: Bank of America v. Court of Appeals, G.R. No. 120135, March 31, 2003 Phil. Export and Foreign Loan Guarantee Corp., v. V.P. Eusebio Construction, Inc.,

G.R. No. 140047, July 13, 2004 Northwest Orient Airlines, Inc., v. CA, G.R. No. 112573, February 9, 1995 Saudi Arabian Airlines v. Court of Appeals, G.R. No. 122191, October 8, 1998 Bienvenido M. Cadalin v. POEA, G.R. No. 104776, December 5, 1994 Jurisdiction, Choice of Law, and Forum Non Conveniens Q: What Will the Court Do if it is Confronted with a Case Involving a Foreign Element? A: If the court is faced with a case involving a foreign element, it should first determine:

1. Whether it has jurisdiction over the case; 2. If it has no jurisdiction, it should be dismissed on that ground; 3. If it has jurisdiction, the court will determine whether it should assume jurisdiction,

or it should dismiss the case on the ground of forum non conveniens; 4. Once the court has determined it has jurisdiction over the case, it will next

determine whether to apply the internal law of the forum or apply the proper foreign law.

Q: What is Forum Non Conveniens? A: The refusal to assume jurisdiction because it would prove inconvenient for the forum.

Q: What are the Reasons Why a Court Will Dismiss the Case on the Basis of Forum Non Conveniens? A: (EDB-CIID)

1. Evidence and witnessess may not be readily available in the forum; 2. Court dockets of the forum are already clogged that would hamper the speedy

administration of justice; 3. The matter can be better tried and decided in another forum; 4. To curb the evils of forum shopping; 5. The forum has no particular interest in the case, as when the parties are not

citizens of the forum or are residents elsewhere; 6. Inadequacy of the local judicial machinery in effectuating the right sought to be

enforced; 7. Difficulty in ascertaining the foreign law applicable.

Q: When Can Internal or Domestic law Be Applied?


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A: ENE 1. Law of forum expressly so provides in its conflicts rule 2. Proper foreign law has not been properly pleaded and proved 3. Case involves any of the exceptions to the application of proper foreign law.

When the foreign law, judgment or contract is: CCPP-FRIN

a. Contrary to sound and established policy of the forum b. Contrary to almost universally conceded principles of morality (contra

bonos mores) c. Involves procedural matters d. Involves penal laws, contracts, judgments e. Purely fiscal or administrative matters f. Involves real or personal property situated in the forum

When application of the foreign law, judgment or contract:

g. May work undeniable injustice to the citizens/residents of the forum h. May work against vital interests & national security of the state of the forum

Q: What are the Theories on Why the Foreign Law May be Given Effect? A:

1. Theory of Comity Recognition w/c a nation allows w/in its territory, to the legislative, executive, or judicial acts of another nation, having due regard to both international duty & convenience and to the rights of its citizens, of other persons under its protection

Kinds of Comity:

a. Comity based on reciprocity b. Comity based on the persuasiveness of the foreign judgment 2. Theory of Vested Rights To enforce not the foreign law or foreign judgment

itself but the simply the vested rights that have been vested under such foreign law or judgment

3. Theory of Local Law To apply foreign law, not because it is foreign, but

because our own rules by applying similar rules require us to do so, hence it is as if the foreign law has become part & parcel of our own local law

4. Theory of Harmony of Law To apply the foreign law so that wherever a case

is decided, that is, irrespective of the forum, the solution should be approximately the same, as such, identical or similar problems must have identical or similar solutions somewhere

5. Theory of Justice - Purpose of all laws is the dispensation of justice, if this can

be attained by applying the proper foreign law, then we must do so CASES: Santos III v. Northwest Orient Airlines, Inc., G.R. No. 101538, June 23, 1992 Communications Materials and Design v. CA, G.R. No. 102223, August 22, 1996 First Philippine International Bank v. CA, G.R. No. 115849, January 24, 1996 Characterization, Nationality, Domicile, and Renvoi Q: What are Conflict Rules? A: Provisions found in a countrys own law which govern factual situations possessed of foreign element.


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Kinds:

a. One-sided rule - Indicates when Philippine internal law will apply (e.g. Art. 15 C.C.) b. All-sided rule - Indicates when foreign law is to be applied (e.g. Art. 16)

Q: What are the Theories on Personal Law or the Law that Should Govern Status and Capacity in General? A:

1. Nationality theory By virtue of which the status and capacity of an individual are generally governed by the law of his nationality (Personal theory)

2. Domiciliary theory States the law of the domicile as the proper determinative law on status and capacity (Territorial theory)

3. Situs theory Views the particular place or situs of an event or transaction as generally the controlling law (Eclectic theory)

Note: In this jurisdiction, we adhere to the Nationality theory (Art 15; 2nd par., Art 16; also

Art. 1039 C.C.). Q: What is Domicile? A: It is the place with which a person has a settled connection for certain legal purposes, either because his home is there or because that is the place assigned to him by law. Q: What are the Basic Principles of Domicile? A:

1. No natural person can ever be without a domicile. 2. That a person can have but one domicile at a time. 3. Every natural person, free and sui juris, may establish and change his domicile. 4. A domicile once acquired is retained until a new one is gained. 5. The presumption is in favor of continuance of an existing domicile.

Q: What are the 4 Essential Requisites Needed in Order to Acquire a Domicile of Choice? A: CAFI

1. Capacity 2. Actual physical presence in the place chosen 3. Freedom of choice 4. Provable intent that it should be ones fixed and permanent place of abode ones

home that is, there should be animus manendi (intent to remain) or animus non-revertendi (intent not to return to the original abode).

Q: Define: Cognovit, Borrowing Statute, Characterization, Doctrine of Forum Non-Conveniens, Long Arm Statute, Conflicts Case. A: Cognovit - Confession of judgment whereby a portion of the complaint is confessed by the defendant who denies the rest thereof.

Borrowing Statute Laws of the state on jurisdiction used by another state in deciding conflicts question involved in the choice of law. It directs the state of the forum to apply the foreign statute of limitations to the pending claims based on the foreign law and has the practical effect of treating the foreign statute of limitations as one of substance. It bars the filing of a suit in the forum if it is already barred by the statute of limitations in the place


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where the cause of action arose. Thus, when the country has a borrowing statute, the characterization of a statute into a procedural or substantive law becomes irrelevant. Characterization - Otherwise called classification or qualification. It is the process of assigning a disputed question to its correct legal category. (1994 Bar Question) Forum Non Conveniens - Principle in private international law that where the ends of justice strongly indicate that the controversy may be more suitably tried elsewhere, then jurisdiction should be declined and the parties relegated to relief to be sought in another forum. (1994 Bar Question)

Long Arm Statute - A legislative act which provides for personal jurisdiction, via substituted service or process over persons or corporations which are non-residents of the state and which voluntarily go into the state directly or by agent or communicate with persons in the state for limited purposes, in actions which concern claims relating to performance or execution or those purposes; Long-arm statute refers simply to authorized substituted service. Where the factual antecedents satisfactory establish the existence of a foreign element, the problem could present a conflicts case. 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.

DOMICILE OF ORIGIN and CONSTRUCTIVE DOMICILE

DOMICILE OF ORIGIN CONSTRUCTIVE DOMICILE

Acquired at birth Given after birth

Applies only to infants Refers to all those who lack capacity to choose their domicile: infants, idiots and the insane.

Never changes May change from time to time.

Q: What are the Legal Classifications of Domicile? A:

1. Domicile of origin the domicile of a persons parents at the time of birth 2. Constructive domicile domicile established by law after birth in case of persons

under legal disability, regardless of their intention or voluntary act 3. Domicile of Choice is the place voluntarily chosen by a person sui juris as his

home and to which, whenever he is absent, he has the intention to return

CASES: Paula T. Llorente v. Court of Appeals, G.R. No. 124371, November 23, 2000 Juan Frivaldo v. COMELEC, 174 SCRA 245 (1989) Imelda Marcos v. COMELEC, G.R. No. 119976, September 18, 1995 Agapito Aquino v. COMELEC, G.R. No. 120265, September 18, 1995 Asistio v. Aguirre, G.R. No. 191124, April 27, 2010

CITIZENSHIP Article IV, 1987 Constitution Moy Ya Lim Yao v. Commissioner of Immigration, 41 SCRA 292. In Re: Ching, Bar Matter No. 914, October 01, 1999. Co v. HRET, G.R. Nos. 92191-92. July 30, 1991. Frivaldo v. COMELEC, G.R. No. 120295. June 28, 1996.


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Mercado v. Manzano, 307 SCRA 630. Bengson III v. HRET, G.R. No. 142840. May 7, 2001. Tecson v. COMELEC, G.R. No. 161434, March 03, 2004. Cordora v. COMELEC, G.R. No. 176947, February 19, 2009 Japson v. COMELEC, G.R .No. 180088, Jan. 19,2009 Nestor A. Jacot v. Rogen T. Dal and COMELEC, G.R. No. 179848, Nov.27, 2008 Mercado v. Manzano, 307 SCRA 630 (1999) Valles v. COMELEC, 337 SCRA 543 (2000) Teodora Sobejana-Condon v. COMELEC, GR No. 198742, August 10, 2012 Rommel Jalosjos v. COMELEC, G.R. No. 191970, April 24, 2012 Svetlana Jalosjos v. COMELEC, G.R. NO. 193314. FEBRUARY 26, 2013 REYES v. COMELEC, G.R. No. 207264. June 25, 2013. Maquiling v. COMELEC, G.R. No. 195649. April 16, 2013

FAMILY LAW & PERSONAL CAPACITY

General Rule: Under Article 26 of the Family Code, all marriages solemnized outside

the Philippines in accordance with the laws in force in the country where they were solemnized and valid there as such, is also valid in the Philippines.

Exception: If the marriage is void under Philippine law, then the marriage is void even if it is valid in the country where the marriage was solemnized.

CASES: De Dios Carlos v. Sandoval, G.R. No. 179922, December 16, 2008 Grace Garcia v. Rederick Recio, G.R. No. 138322, October 3, 2001 Republic v. Orbecido III, GR. No. 154380, Oct. 5, 2005 Republic v. Iyoy, G.R. No. 152577, Sept. 21, 2005 Fe Quita v. Court of Appeals, G.R. No. 124862, December 22, 1998 Imelda Pilapil v. Corona Ibay-Somera, G.R. No. 80116, June 30, 1989 Alice Reyes Van Dorn v. Manuel Romillo, G.R. No. L-68470, October 8, 1985 Corpuz v. Santo Tomas, G.R. No. 186571, August 11, 2010

SUCCESSION

Art. 26. FAMILY CODE. All marriages solemnized outside the

Philippines in accordance with the laws in force in the country where they were solemnized, and valid there as such, shall also be valid in this country, except those prohibited under Articles 35(1), (4), (5), and (6), 36, 37, and 38.

Art. 16, CIVIL CODE. 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.


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Art. 816. The will of an alien who is abroad produces effect in the Philippines if made with the formalities prescribed by the law of the place in which he resides, or according to the formalities observed in his country, or in conformity with those which this Code prescribes.

Art. 817. A will made in the Philippines by a citizen or subject of another country, which is executed in accordance with the law of the country of which he is a citizen or subject, and which might be proved and allowed by the law of his own country, shall have the same effect as if executed according to the laws of the Philippines.

Probate is an adjudication that the last will and testament of a person was executed with all the formalities required by law.

It does not pass upon the validity of the provision of the will. (authentication only)

The disallownace of a will being essentially procedural in character, the law of the forum will govern procedural matters.

However, the court will look into the law of the foreign state where the suit was made as to whether the extrinsic requirements in the execution of the will have been complied with (Art. 17, 816 and 817 C.C.).

Q. May a will of an alien produce effect in the Philippines? Explain. ANS: Yes. The will of an alien who is abroad produces effect in the Philippines if made with the formalities prescribed by the law of the place in which he resides, or according to the formalities observed in his country, or in conformity with those which this Code prescribes. (Art. 816, NCC). Proof that the will conforms to the laws mentioned is imperative. (Salud Teodoro Vda. De Perez vs. Hon. Tolete, 52 SCAD 46, G.R. No. 76714, June 2, 1994). Q. How can a will executed abroad be made effective in the Philippines?

ANS: A will made in a foreign country may be probated in the Philippines after sufficient proof is presented showing that the will was duly executed in the manner required by law and that the testator had testamentary capacity at the time he executed the will.

Q. What evidence are necessary for the allowance of wills which have been probated outside of the Philippines?

ANS: The evidence necessary for the allowance of wills which have been probated outside of the Philippines are as follows:

(1) the due execution of the will in accordance with the foreign laws; (2) the testator has his domicile in the foreign country and not in the Philippines; (3) the will has been admitted to probate in such country; (4) the fact that the foreign tribunal is a probate court; and (5) the laws of a foreign country on procedure and allowance of wills (Suntay v.

Suntay, 95 Phil. 500 [1954]; Fluemer v. Hix, 54 Phil. 610 [1930]). Q: What is the Meaning of Renvoi? A: A French word which means referring back. It is a term used in Conflicts of Laws to denote the phenomenon where the conflicts rule of the forum makes a reference to a foreign law, but the foreign law is found to contain a conflict rule that returns or refers back the matter to the law of the forum.


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CASES: Llorente v. Court of Appeals, G.R. No. 124371. November 23, 2000. Aznar v. Garcia, G.R. No. L-16749. January 31, 1963. PCI Bank v. Escolin, G.R. Nos. L-27860 & L-27896. March 29, 1974. Q: What Will the Court Do, if it is Confronted with a Case with a Renvoi Problem? A:

1. Reject the renvoi - Here we do not want the referring back to us so we apply the foreign internal law.

2. Accept the renvoi - Here we welcome the reference back to us so we apply our

internal law).

3. Follow the Theory of Desistment - Also referred to as Mutual Disclaimer of Jurisdiction Theory - hence we follow our own internal law.

4. Make use of the Foreign Court Theory - This means that the Philippine court will

put itself in the position of the foreign court and whatever the foreign court will do respecting the case, the Philippine court will do likewise.

Q: What is Double Renvoi? A: It is what occurs when the local court, in adopting the foreign court theory, discovers that the foreign court accepts the renvoi (hence ultimately, it is the foreign internal law that

will be used. Q: What is Transmission? A: It is the process of applying the law of a foreign state through the law of a second foreign state. Q: What are the Differences between Renvoi (single or double) and Transmission? A:

Renvoi Transmission

Deals with 2 countries Deals with 3 or more countries

Deals with referring back Deals with referring across or transmitting REVOCATION OF WILLS

Being a unilateral and purely personal act, a will is revocable at any time before

the death of the testator. Any waiver or restriction of this right is void (Art. 788).

Under Art. 829 of the Civil Code, a revocation done outside the Philippines, by a person who does not have a domicile in this country, is valid when it is done according to: (i) Lex loci celebrationis or (ii) lex domicilii

If the revocation is done outside the Philippines by one domiciled here, then the governing law is either Philippine law or the law of the place of revocation.

If the revocation takes place in the Philippines (regardless of nationality), then Philippine law will apply.


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TORTS

Q: What Law Governs Liability for Torts? A: The law of the place where the alleged tort was committed will govern. (lex loci delicti commissi)

Q: What is the Obligation Theory? A: The tortuous act gives rise to an obligation which is transitory and follows the person committing the tortuous act and maybe enforced wherever he may be found. Q: What is the Philippine Rule Regarding Tort Problems Brought in this Jurisdiction? A: If the tort law of the Philippines embodies a social or economic policy, then the law of

the forum on torts shall be applied. If the Philippines has no concern or interest in the application of the internal law, and the other State have an interest, apply the law of such State. Note: The State where an injury has occurred has interest in compensating the injured

party, while the State where the tortfeasor has acted has an interest in regulating the conduct of persons found in its territory. Contracts and Foreign Corporations CASES: La Chemise Lacoste v. Oscar Fernandez, G.R. No. 63796, May 21, 1984 Columbia Pictures v. Court of Appeals, G.R. No. 110318, August 28, 1996 Avon Insurance Plc v. Court of Appeals, G.R. No. 97642, August 29, 1997 Agilent Technologies Singapore v. Integrated Silicon Technology Phils., G.R. No.

154618, April 14, 2004 Arbitration and Enforcement of Foreign Judgment

RECOGNITION & ENFORCEMENT OF FOREIGN JUDGMENT Q: Distinguish Recognition from Enforcement of Foreign Judgment? A:

Recognition of Foreign Judgment Enforcement of Foreign Judgment

The defendant or respondent is presenting the foreign judgment merely as a defense, on the basis of res judicata

The plaintiff or petitioner wants the court to positively carry out and make effective the foreign judgment

Involves merely the sense of justice Implies a direct act of sovereignty

Does not require either an action or a special proceeding

Requires a separate action brought precisely to make the foreign judgment effective

Art. 17. CIVIL CODE. 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.


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Q: What are the Requisites for Recognition or Enforcement of a Foreign Judgment? A:

1. Must be a judgment of a judicial or quasi-judicial agency which is an impartial

tribunal; 2. Defendant must be given a reasonable notice and opportunity to be heard; 3. Must be a judgment on a civil or commercial matter; 4. Must have disposed of the controversy on the merits; 5. Must be final and executory to constitute as res judicata in another action; 6. Must not be contrary to the public policy or good morals of the country where it is

sought to be enforced; 7. Must not be barred by prescription in both states; 8. Must not be obtained by fraud, collusion, mistake of fact or law.

Q: What are the Effects of a Judgment or Final Order of a Foreign Tribunal or Court in Case the Judgment is Being Sought Enforcement in the Philippine Courts? A:

1. In case the judgment is on a specific thing the judgment is conclusive upon the title of the thing;

2. In case the judgment is against a person the judgment is a presumptive

evidence of a right between the parties and their successors in interest by a subsequent title, which may be repelled by evidence of want of jurisdiction, want of notice to the other party, collusion, fraud, or clear mistake of law or fact.

CASES: Asiavest Merchant Bankers v. Court of Appeals, G.R. No. 110263, July 20, 2001 Philsec Investment Corp., v. Court of Appeals, G.R. No. 103493, June 19, 1997 Phil. Aluminum Wheels v. FASGI Enterprises, G.R. No. 137378, Oct. 12, 2000 Gil Miguel Puyat v. Ron Zabarte, G.R. No. 141536, February 26, 2001 Oil & Natural Gas Commission v. CA, G.R. No. 114323, September 28, 1999 Mijares v. Hon. Ranada, G.R. No. 139325. April 12, 2005 Quasha et al., v. Court of Appeals, G.R. No. 182013. December 4, 2009

Synopsis of the Rules on Real and Personal Property

FACTUAL SITUATION POINT OF CONTACT

1. REAL PROPERTY ( extrinsic and intrinsic validity of alienation, transfers, mortgage, capacity of parties, interpretation of documents, effects of ownership, co-ownership, accession, usufruct, lease easement, police power, eminent domain, taxation, quieting of title, registration, and prescription) Exceptions:

a. Successional rights b. Capacity to succeed

c. contracts involving real d. property but which do not deal with the

Lex rei sitae ( Art. 16, par. 1 Civil Code) Exceptions:

a. National law of the decedent (Art. 16, par 2, Civil Code).

b. National law of the decedent ( Art. 1039,

Civil Code)

c. the law intended will be the proper law of the contract ( lex loci voluntatis or lex loci intentiones)

d. The principal contract (usually loan) is

governed by the proper law of the contract (lex loci voluntatis or the lex loci intentionis).


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title thereto. e. Contracts where the real property is

given as security

Note: The mortgage itself, however, is governed by the lex rei sitae. There is a possibility that the principal contract is valid but the mortgage is void; or it may be the other way around. If the principal contract is void, the mortgage would also be void (for lack of proper cause for consideration) although by itself the mortgage could have been valid.

2. TANGIBLE PERSONAL PROPERTY (chose in possession) a) in general (see the things enumerated in No.1) (Exceptions- same as those for real property (see No.1)) b) means of transportation

1. vessels 2. other means

c) thing in transitu ( these have a changing status because they move) 1. loss, destruction, deterioration. 2. Validity and effect of the goods. 3. disposition or alienage of the goods

a) lex rei sitae ( Art. 16, par.1, Civil Code). Exceptions: Same as those for real property except that in the example concerning the mortgage, the same must be changed to a pledge of personal property. b) 1. the law of the flag ( or in some case the

place of registry) 2. the law of the depot ( storage place for

supplies) or resting place c) The law of destination (Art. 1753, Civil Code)

1. Locus regit actum (where seized) because said place is their temporary situs.

2. Lex loci voluntatis or lex loci intentionis because here there is a contract.

3. INTANGIBLE PERSONAL PROPERTY (Chooses in Action)

a. Recovery of debts or involuntary assignment of debts (garnishment)

b. Voluntary assignment of debts c. Taxation of debts d. Administration of debts e. Negotiability or non-negotiability of an

instrument( bill of exchange,for example)

f. Validity of transfer, delivery or

negotiation of the instrument g. Effect on a corporation of the sale of

corporate shares h. Effect between the parties of the sale

corporate shares i. Taxation on the dividends of corporate

shares j. Taxation on the income from the sale

of corporate shares k. Franchise l. Goodwill of a business and taxation

3. Where debtor may be effectively served with summons ( usually the domicile)

a. lex loci voluntatis or lex loci intentiones ( proper law of the contract) other theories:

1. national law of the debtor or

creditor 2. Domicile of the debtor or the

creditor 3. lex loci celebrationis 4. lex loci solutionis

b. Domicile of creditor

c. Lex situs of assets of the debtor ( for

these assets can be held liable for the payment of the debts )

d. The right embodied in the instrument (for

example, in the case of a Swedish bill of exchange, Swedish law determine its negotiability)

e. In general, situs of the instrument at the

time of transfer, delivery or negotiation f. Law of the place of incorporation g. Lex loci voluntatis or lex loci intentiones (

proper law of the contract) for this is really a contract; usually, this is the place where the certificates is delivered

h. Law of the place of incorporation


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thereon m. Patents, copyrights, trademarks, trade

names.

i. Law of the place where the sale was

consummated j. Law of the place that granted them. k. Law of the place where the business is

carried on. l. In the absence of treaty, they are

protected only by the state that granted them.

Note: Foreigners may sue on infringement of trade names in the Philippines only if Filipinos granted reciprocal concessions in the state of the foreigners

Synopsis of the Rules on Status in General


Beginning of personality of natural persons

National law of the child (Art. 15, Civil Code)

Ways and effects of emancipation National law (Art.15)

Age of majority National law (Art.15)

Use of names and surnames National law (Art.15)

Use of Titles of nobility National law (Art.15)

Absence National law (Art.15)

Presumptions of death and survivorship

Lex fori (See Art.43,390,391, Civil Code; Rule 131, Sec 5(jj) Rules of Court)

From the above table, the status of a person depends on his national law. (Art. 15)

Synopsis of the Rules on Marriage as a Contract

FACTUAL SITUATION POINT OF CONTACT 1. If celebrated abroad (a) between Filipinos (b) between foreigners (c) Mixed

(a) lex loci celebrationis is without prejudice to the exceptions under Art. 26,35 (1, 4,5,6), 36,37 and 38 of the Family Code (bigamous, polygamous and incestuous marriages) and consular marriages b) Lex loci celebrationis except if the marriage is Highly immoral (like bigamous and polygamous marriages) or Universally considered incestuous, i.e., between brothers and sisters whole or half-blood. (c) apply (1-b) to uphold the validity of the marriage

2. If celebrated in the Philippines (a) between foreigners (b) Mixed

(a) national law (Art. 21, Family Code) provided the marriage is not highly immoral or universally considered incestuous) (b) National law of the Filipino (otherwise public


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policy maybe militated against )

3. Marriage by proxy ( Note: a marriage by proxy is considered as where the proxy appears)

3. Lex loci celebrationis (with prejudice to the foregoing rules)

Synopsis of the Rules on Marriage as a Status


Personal Rights and Obligations between Husband and Wife (mutual fidelity, cohabitation, respect, assistance and support; right of wife to use husbands name; duty to follow husbands residence)

National law of the husband.

Property relations between Husband and Wife

National law of the husband, without prejudice to what the Civil Code provides concerning the Real Property located in the Philippines. (Art.80)

Synopsis of Rules on Absolute Divorce


If sought in the Philippines whether by Filipinos or by foreigners

Lex fori ( therefore, will not be granted) exception: Moslem divorces

If obtained abroad: a) between Filipinos b) between foreigners c) Mixed

a) national law ( therefore, not valid here even if valid abroad; and this is true regardless of the cause of the divorce) b) national law ( if valid in the State granting it, and valid according to the national law of the parties, will also be valid here) ( See Art. 15, Civil Code) c) Apply (a) and (b) respectively. See however, Art. 26, second par. Of the Family Code.

Synopsis of the Rules on Annulment of a Voidable Marriage and the Declaration of Nullity of a Void Marriage


Grounds for annulment ( if the marriage is merely voidable) and grounds for the declaration of nullity (if the marriage is

The law alleged to have been violated: in other words, it is the law of the place of celebration (lex loci celebrationis) subject


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void ab initio)

to the exceptions, that furnishes the grounds)

Note: The proper court to annul the marriage or to declare it null and void is the court of the country of which the parties are nationals or domiciliaries.

Conflicts rules on Some Grounds for Legal Separation


Grounds for legal separation (a)Adultery (b)Concubinage (c)Attempt by one spouse against the life of the other

National law of the parties (a) If of the same or common nationality the common national law governs (b) if of different nationalities the grounds given by both national law should all be considered proper grounds. Note: Residence requirement if suit is brought in the Philippines: (a) if cause occurred in the Philippines NO residence requirement (b) If cause occurred out the Philippines one year residence in our country.( Art. 99, Civil Code)

Synopsis of Conflict Rules on Paternity, Adoption, Guardianship, and Funerals


Paternity and Filiation (Including Parental and Reciprocal Support) legitimacy, recognition, presumptions of legitimacy, rights and obligations of parents and children, including parental authority, and reciprocal support.

a) if legitimate national law of the father (Art. 15, Civil Code) b) if Illegitimate national law of the mother unless recognized by the father in which case the national law of the father. (Art. 15, Civil Code) c) determination of whether legitimate or illegitimate ( national law of the father, as a rule) Art. 15 of the Civil Code.

Adoption- creation of the status of adoption; rights and obligations of adopter and adopted.

in general, national law of the adopter Note: In the Philippines, adoption by a Filipino does not confer Filipino citizenship to an adopted alien child.

Guardianship a) over the person 1. appointing court 2. powers of guardian b) over the property 1. appointing court

a) 1. court of the domicile of the ward 2. co-extensive with those of the appointing court ( law of the appointing state) b) 1. the court where the property is found


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2. powers of guardian c) over the person and over the property (general guardian)

(lex rei sitae) 2. Co-extensive with those of the appointing court ( law of the appointing state) c) see 3(a) and 3(b)

Funerals- incidents thereof Where the body is buried.

Synopsis of Conflict Rules on Wills, Succession and Administration


Extrinsic Validity of Wills a) made by an alien abroad b) made by a Filipino Abroad c) made by an alien in the Philippines

a) lex nationalii or lex domicile or Philippines law (Art. 816, Civil Code), or Lex loci celebrationis (Art. 17, par 1, Civil Code) b) lex nationalii or lex loci celebrations (Art. 815, Civil Code) c) lex nationalii or lex loci celebrations (Art. 817, Civil Code)

2. Extrinsic Validity of Joint Wills (made in the same instrument) a) made by Filipinos abroad b) made by aliens abroad c) made by aliens in the Philippines

a) lex nationalii (is void even if valid where made) (Art.819, Civil Code) b) valid if valid according to the lex nationalii, or lex celebrationis or lex domicilii ( See No. 1 (a); Also Art. 819, Civil Code) c) lex loci celebrationis therefore void even if apparently allowed by Art. 817- because the prohibition on joint wills is a clear expression of our public policy)

Intrinsic Validity of Wills (including order of succession, amount of successional rights and intrinsic validity of the provisions of the will)

Lex nationalii of the deceased regardless of the location and nature of the property (Art, 16, par. 2, Civil Code)

Capacity to succeed

lex nationalii of the deceased- not that Of the heir (Art.1039 of the Civil Code)

Revocation of Wills a) If done IN the Philippines b) If done OUTSIDE the Philippines 1. by a NON-DOMICILIARY 2. by a DOMICILIARY of the Philippines

a) lex loci actus ( of the revocation) (Art829, Civil Code) b) 1. Lex loci celebrationis ( of the making of the will, not the revocation), or lex domicilii (Art. 829, Civil Code) 2. Lex domicilii (Phil. Law or the lex loci actus ( of the revocation) (Art. 17, Civil Code)

Probate of wills made abroad

if not yet probated abroad Lex fori of the Philippines applies to the procedural aspects that is- the will must be fully probated here and due execution must be shown


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if already probated abroad

lex fori of the Philippines again applies to procedural aspects- that is, the will must also be probated here- but instead of proving due execution, generally it is enough to ask for the enforcement here of the foreign judgment on the probate abroad.

Executors and Administrators a) where appointed b) powers

a) place where domiciled at death or in case of non-domiciliary, where assets are found b) Co-extensive with the qualifying or the appointing court- that is- powers may be exercised only within the territorial jurisdiction of the court concerned. Note: These rules also apply to principal, domiciliary, or administrators and receivers even in non-successional cases

Synopsis of Conflicts Rules on Obligations and Contracts


Formal or extrinsic validity: Exceptions: a) alienation and encumbrance of property b) consular contracts

Lex loci celebrationis (Art. 17, par.1, Civil Code) a) lex situs ( Art. 16, par. 1, Civil Code) b) law of the Philippines (if made in Philippine Consulates)

Capacity of the contracting parties Exception: alienation and encumbrance of property

National law (art. 15, Civil Code) without prejudice to the case of Insular Government v. Frank, 13 Phil. 236, where the Supreme Court adhered to the theory of Lex loci celebrations. The case is not clear whether Frank is a US national. If national law is applied, contract is still valid. Exception: Lex situs (Art. 16, par. 1Civil Code)

Intrinsic validity (including interpretation of instruments, and amount of damages for breach

The proper law of the lex contract- the lex contractus ( in the broad sense), meaning the lex loci voluntatis or the lex loci intentionis

Synopsis of Conflict Rules for Specific Contracts


Sales and Barter a) extrinsic validity b) capacity of parties c) intrinsic validity

a) lex situs b) lex situs c) lex situs

Lease of property a) extrinsic validity b) capacity of parties c) intrinsic validity


Lease of Services


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a) extrinsic validity b) capacity of parties c) intrinsic validity

a) lex loci celebrationis b) national law c) lex loci voluntatis or lex loci intentiones

Contract of Common Carriage of Goods a) extrinsic validity b) capacity of parties c) intrinsic validity d) liability for loss, destruction, or deterioration of goods in transitu

a) fixed situs of the carrier (depot or resting place b) fixed situs of the carrier c) fixed situs of the carrier d) law of the destination (Art. 1753, Civil Code)

Contract of Agency a) extrinsic validity b) capacity of parties c) intrinsic validity

a) lex loci celebrationis (unless the agency deals with the conveyance or encumbering of property- in which case the lex situs of the property applies) b) national law of the parties (unless the agency deals with the conveyance or encumbering of property- in which case the lex situs of the property applies) c) lex loci voluntatis or lex loci intentionis (unless the agency deals with the conveyance or encumbering of property- in which case the lex situs of the property applies)

Simple Loan (Mutuum) a) extrinsic validity b) capacity of parties c) intrinsic validity

a) lex loci celebrationis b) national law c) lex loci voluntatis or lex loci intentionis

Commodatum a) extrinsic validity b) capacity of parties c) intrinsic validity


Pledge, chattel mortgage, real mortgage, and Antichresis a) extrinsic validity b) capacity of parties c) intrinsic validity


Guaranty and Suretyship a) extrinsic validity b) capacity of parties c) intrinsic validity

a) lex loci celebrationis b) national law c) lex loci voluntatis or lex loci intentionis

Synopsis of Conflict Rules On Quasi-Delicts


Liability and Damages for Torts in General

Lex Loci Delicti commissi ( law of the place where the delict was committed) State of the most significant contacts rule (Saudia v. CA) Choice of law by the parties Note: Liability for foreign torts may be enforced in the Philippines if: a) the tort is not penal in character b) if the enforcement of the tortuous liability will not contravene our public policy c) if our judicial machinery is adequate for such enforcement

Synopsis of Conflict Rules on Juridical persons



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CORPORATIONS

a) powers and liabilities

General Law - law of the place of incorporation Exceptions: 1) For constitutional purposes -even if the corporation was incorporated in the Philippines, it is not deemed a Filipino corporation and therefore cannot acquire land, exploit our natural resources, and operate public utilities unless 60% of the capital is Filipino owned. (Important: this statement has to be reconciled with the holding in La Bugal Blaan case) 2) For wartime purposes here, we pierce the veil of corporate identity and go to the nationality of the controlling stockholders to determine if the corporation is an enemy corporation or not (CONTROL TEST/GRANDFATHER RULE)

b) formation of the corporation: kind of stocks; transfer of stocks to bind the corporation; issuance, amount, and legality of dividends; powers and duties of the members, stockholders and officers

law of the place of incorporation

c) validity of the corporate acts and contracts (including ultra vires acts)

law of the place of incorporation and the law of the place of performance

d) right to sue and amenability to court processes and suits against it.

Lex fori

e) Manner and effect of dissolution law of the place of incorporation provided that the public policy of the forum is not militated against

PARTNERSHIPS

a) the existence or non-existence of legal personality of the firm; capacity to contract; liability of the firm and the partners to third persons

the personal law of the partnership that is the law of the place where it was created.

b) creation of branches in the Philippines; validly and effect of branches; commercial transaction; and the jurisdiction of courts

Philippine law (Art.15 Code of Commerce)

c) dissolution, winding up, and termination of branches in the Philippines

Philippine law

d) Domicile See rule on Corporation

e) Receivers Philippine law insofar as the assets in the Philippines are concerned

f) domicile

f) if not fixed by the law creating or recognizing the corporation or by the any other provision the domicile is where its legal representation is established or where it exercises its principal functions.

g) receivers (appointment and powers) g) principal receiver is appointed by the courts of the state of incorporation.

CONFLICT OF LAWS TERMS

Lex Fori The law of the place where the court sits; the law of the forum


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Lex causa The law which applies to resolve a given case

Lex situs The law of the place where the thing in question is situated

Lex rei sitae The law of the place where the real property is situated.

Mobilia sequuntur personam

The movable property follows the owner.

Lex Domicilii The law of the placed where a person is domiciled.

Lex patriae The law of the country of which a person is national.

Lex personali or personal law

The law which governs the status or legal condition of a person in a society.

Lex loci actus The law of the place where an act or transaction takes place.

Lex loci celebrationis

The law of the place where the marriage is celebrated.

Lex loci solutionis

The law of the place where the contract is to be performed or where the debt is to be paid.

Lex loci intentionis

The law intended or provided by the contracting parties to apply.

Lex loci delicti commissi

The law of the place where a wrong or tortuous act is committed.

Lex validatis The law of the place that gives validity to an act or transaction.

Lex conveniens

The most appropriate law applicable in the circumstances of the case.

Documents

Conflict of Laws Syllabus FEU DLSU 2014