Conflict of Laws Syllabus FEU DLSU 2014

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

Course Title: PRIVATE INTERNATIONAL LAW

Instructor: ENRIQUE V. DELA CRUZ, JR.
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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.

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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
(3
rd
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 2
nd
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

J urisdiction, 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; 2
nd
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 J udgment

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
13
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

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
14
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
15
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
16

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

c) lex nationalii or lex loci celebrations
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
17
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) lex situs
b) lex situs
c) lex situs
Lease of Services
18

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

Contract of Common Carriage of Goods
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) 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)

b) national law
c) lex loci voluntatis or lex loci intentionis
Commodatum

a) lex situs
b) lex situs
c) lex situs
Pledge, chattel mortgage, real
mortgage, and Antichresis

a) lex situs
b) lex situs
c) lex situs
Guaranty and Suretyship

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

19
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
20
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.

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