United Airlines vs. Uy

G.R. No. 127768, Nov. 19, 1999

INTERNATIONAL LAW: Applicability of the Warsaw Convention: the Convention's provisions do not regulate or exclude liability for other breaches of contract by the carrier or misconduct of its officers and employees, or for some particular or exceptional type of damage. Neither may the Convention be invoked to justify the disregard of some extraordinary sort of damage resulting to a passenger and preclude recovery therefor beyond the limits set by said Convention. Likewise, we have held that the Convention does not preclude the operation of the Civil Code and other pertinent laws. It does not regulate, much less exempt, the carrier from liability for damages for violating the rights of its passengers under the contract of carriage, especially if willful misconduct on the part of the carrier's employees is found or established

FACTS:

October 13, 1989 – Respondent Willie Uy is a passenger of petitioner United Airlines, bound from San Francisco to Manila. While in San Francisco, it was found that one piece of his luggage was over the maximum weight allowance of 70 kg. per bag. A United Airlines employee rebuked him and in a loud voice, in front of the milling crowd, ordered him to repack his things accordingly. Wishing not to create a scene, Willie did as asked. Unfortunately, his luggage was still overweight so the airline billed him overweight charges. Willie offered to pay the charges with a Miscellaneous Charge Order (MCO) or an airline pre-paid credit but the same employee, and an airline supervisor, refused to honor it, contending that there were discrepancies in the figures. Thus, Willie was forced to pay the charges with his American Express credit card. Upon arrival in Manila, Willie discovered that one of his bags had been slashed and its contents, amounting to US$5,310.00, stolen.

October 16, 1989 – he sent his first letter of demand to United Airlines. The airline did not refute Willie’s allegations and mailed a check representing payment of his loss based on the maximum liability of US$9.70 per pound. Willie, thinking the amount to be grossly inadequate to compensate him for his losses as well as for the indignities he was subjected to, sent two more letters to petitioner airline, one dated January 4, 1990 and the other dated October 28, 1991, demanding out-of-court settlement of P1,000,000.00.

June 9, 1992 – Willie filed a complaint for damages before the Philippine courts. He had two causes of action: (1) the shabby and humiliating treatment he received from petitioner’s employees at the San Francisco Airport which caused him extreme embarrassment and social humiliation; and (2) the slashing of his luggage and the loss of personal effects amounting to US$5,310.00.

For its part, United Airlines moved to dismiss the complaint on the ground that it was filed out of time. Under Art. 29 of the Warsaw Convention, the right to damages shall be extinguished if an action is not brought within 2 years. However, the second paragraph of the said provision stated that the method of calculating the period of limitation shall be determined by the law of the court to which the case is submitted. It is Willie’s position that our rules on interruption of prescriptive period should apply. When he sent his letters of demand, the 2-year period was tolled, giving him ample time to file his complaint.

The trial court ordered the dismissal of the case, holding that Art. 29(2) refers not to the local forum’s rules in interrupting the prescriptive period but only to the rules of determining the time in which the action was deemed commenced (meaning “filed”). Willie filed his motion for reconsideration of the order of dismissal only on the 14th day. The trial court denied his motion and 2 days later Willie filed his notice of appeal. United Airlines this time contended that the notice of appeal was filed beyond the 15-day reglementary period and should therefore be dismissed. The CA, however, took cognizance of the case in the interest of justice and ruled in favour of respondent. Hence, this petition for certiorari.

ISSUE: Whether or not the action for damages is barred by the lapse of the 2-year prescriptive period under Art. 29 of the Warsaw Convention

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Laurel vs. Garcia

G.R. No. 92013, July 25, 1990

• PRIVATE INTERNATIONAL LAW: Before determining whether it is domestic or foreign law that should be applied, one must first determine whether a conflict of laws situation exists.

FACTS:

The Roppongi Property is one of the four properties in Japan acquired by the Philippine government under the Reparations Agreement, as part of the indemnification to the Filipino people for their losses in life and property and their suffering during WWII. The Roppongi property became the site of the Philippine Embassy until the latter was transferred to another site when the Roppongi building needed major repairs. Due to the failure of our government to provide necessary funds, the Roppongi property has remained undeveloped since that time. After many years, the Aquino administration advanced the sale of the reparation properties, which included the Roppongi lot. This move was opposed on the ground that the Roppongi property is public in character. For their part, the proponents of the sale raised that Japanese law should apply, following the doctrine of lex loci rei sitae.

ISSUE: Whether or not the conflict of law rule on lex loci rei sitae should apply

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Tayag vs. Benguet Consolidated, Inc.

G.R. No. L-23145, Nov. 29, 1968

• PRIVATE INTERNATIONAL LAW: Situs of Shares of Stock: domicile of the corporation
• SUCCESSION: Ancillary Administration: The ancillary administration is proper, whenever a person dies, leaving in a country other than that of his last domicile, property to be administered in the nature of assets of the deceased liable for his individual debts or to be distributed among his heirs.
• SUCCESSION: Probate: Probate court has authority to issue the order enforcing the ancillary administrator’s right to the stock certificates when the actual situs of the shares of stocks is in the Philippines.

FACTS:

Idonah Slade Perkins, an American citizen who died in New York City, left among others, two stock certificates issued by Benguet Consolidated, a corporation domiciled in the Philippines. As ancillary administrator of Perkins’ estate in the Philippines, Tayag now wants to take possession of these stock certificates but County Trust Company of New York, the domiciliary administrator, refused to part with them. Thus, the probate court of the Philippines was forced to issue an order declaring the stock certificates as lost and ordering Benguet Consolidated to issue new stock certificates representing Perkins’ shares. Benguet Consolidated appealed the order, arguing that the stock certificates are not lost as they are in existence and currently in the possession of County Trust Company of New York.

ISSUE: Whether or not the order of the lower court is proper

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Vda. De Perez vs. Tolete

G.R. No. 76714, June 2, 1994

• PRIVATE INTERNATIONAL LAW: Extrinsic Validity of Wills of Non-Resident Aliens
• PRIVATE INTERNATIONAL LAW: Reprobate of Foreign Wills: Requirement of Notices

FACTS:

Dr. Jose Cunanan and his wife, Dr. Evelyn Perez-Cunanan, who became American citizens and residents of New York, each executed a will also in New York, containing provisions on presumption of survivorship (in the event that it is not known which one of the spouses died first, the husband shall be presumed to have predeceased his wife). Later, the entire family perished in a fire that gutted their home. Thus, Rafael, who was named trustee in Jose’s will, filed for separate probate proceedings of the wills.

Later, Evelyn’s mother, Salud Perez, filed a petition for reprobate in Bulacan. Rafael opposed, arguing that Salud was not an heir according to New York law. He contended that since the wills were executed in New York, New York law should govern. He further argued that, by New York law, he and his brothers and sisters were Jose’s heirs and as such entitled to notice of the reprobate proceedings, which Salud failed to give.

For her part, Salud said she was the sole heir of her daughter, Evelyn, and that the two wills were in accordance with New York law. But before she could present evidence to prove the law of New York, the reprobate court already issued an order, disallowing the wills.

ISSUE: Whether or not the reprobate of the wills should be allowed

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Santos III vs. Northwest Orient Airlines

G.R. No. 101538, June 23, 1992

• INTERNATIONAL LAW: Warsaw Convention is constitutional, a treaty commitment voluntarily assumed by the Philippine government and, as such, has the force and effect of law in this country.
• INTERNATIONAL LAW: Warsaw Convention, when applicable: To all "international transportations of persons by aircraft for hire." Whether the transportation is "international" is determined by the contract of the parties, which in the case of passengers is the ticket. When the contract of carriage provides for the transportation of the passenger between certain designated terminals "within the territories of two High Contracting Parties," the provisions of the Convention automatically apply and exclusively govern the rights and liabilities of the airline and its passenger.
• INTERNATIONAL LAW: Warsaw Convention, jurisdiction: Place of Destination vis-a-vis Agreed Stopping Place: The contract is a single undivided operation, beginning with the place of departure and ending with the ultimate destination. The use of the singular in this expression indicates the understanding of the parties to the Convention that every contract of carriage has one place of departure and one place of destination. An intermediate place where the carriage may be broken is not regarded as a "place of destination."

FACTS:

Petitioner is a minor and a resident of the Philippines. Private respondent Nortwest Orient Airlines (NOA) is a foreign corporation with principal office in Minnesota, U.S.A. and licensed to do business and maintain a branch office in the Philippines. The petitioner purchased from NOA a round-trip ticket in San Francisco, U.S.A. In December 19, 1986, the petitioner checked in the at the NOA counter in the San Francisco airport for his departure to Manila. Despite a previous confirmation and re-confirmation, he was informed that he had no reservation for his flight for Tokyo to Manila. He therefore had to be wait-listed. On March 12, 1987, the petitioner sued NOA for damages in RTC Makati. NOA moved to dismiss the complaint on the ground of lack of jurisdiction.

ISSUE:

• Whether or not Article 28 (1) of the Warsaw Convention is in accordance with the constitution so as to deprive the Philippine Courts jurisdiction over the case

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Triple Eight Integrated Services, Inc. vs. NLRC

G.R. No. 129584, December 3, 1998

• LABOR LAW: Disease as Ground for Dismissal, requisites: (1) the disease must be such that employee’s continued employment is prohibited by law or prejudicial to his health as well as to the health of his co-employees; and (2) there must be a certification by competent public authority that the disease is of such nature or at such a stage that it cannot be cured within a period of 6 months with proper medical treatment.
• LABOR LAW: same; The requirement for a medical certificate under Article 284 of the Labor Code cannot be dispensed with; otherwise, it would sanction the unilateral and arbitrary determination by the employer of the gravity or extent of the employee’s illness and thus defeat the public policy on the protection of labor.
• PRIVATE INTERNATIONAL LAW: Lex Loci Contractus: Established is the rule that lex loci contractus (the law of the place where the contract is made) governs in this jurisdiction.  There is no question that the contract of employment in this case was perfected here in the Philippines.
• PRIVATE INTERNATIONAL LAW: Law of the Forum vis-a-vis Public Policy: Settled is the rule that the courts of the forum will not enforce any foreign claim obnoxious to the forum’s public policy. Here in the Philippines, employment agreements are more than contractual in nature.  The Constitution itself, in Article XIII Section 3, guarantees the special protection of workers.

FACTS:

Osdana, a Filipino citizen, was recruited by Triple Eight for employment with the latter’s principal, Gulf Catering Company (GCC), a firm based in the Kingdom of Saudi Arabia. The employment contract (originally as “food server” but later changed to “waitress”) was executed in the Philippines but was to be performed in Riyadh. Once in Riyadh, however, Osdana was made to perform strenuous tasks (washing dishes, janitorial work), which were not included in her designation as a waitress. Because of the long hours and strenuous nature of her work, she suffered from Carpal Tunnel Syndrome, for which she had to undergo surgery. But during her weeks of confinement at the hospital for her recovery, she was not given any salary. And after she was discharged from the hospital, GCC suddenly dismissed her from work, allegedly on the ground of illness. She was not given any separation pay nor was she paid her salaries for the periods when she was not allowed to work. Thus, upon her return to the Philippines, she filed a complaint against Triple Eight, praying for unpaid and underpaid salaries, among others.

The LA ruled in her favour, which ruling NLRC affirmed. Hence, this petition for certiorari.

ISSUE:

• Whether or not Osdana was illegally dismissed
• If so, whether or not she is entitled to award for salaries for the unexpired portion of the contract

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Romualdez-Marcos vs. COMELEC

G.R. No. 119976, Sept. 18, 1995

• DOMICILE: a place to which, whenever absent for business or for pleasure, one intends to return, and depends on facts and circumstances in the sense that they disclose intent
• RESIDENCE: implies the factual relationship of an individual to a certain place. It is the physical presence of a person in a given area, community or country.
• RESIDENCE FOR ELECTION PURPOSES: For political purposes the concepts of residence and domicile are dictated by the peculiar criteria of political laws. As these concepts have evolved in our election law, what has clearly and unequivocally emerged is the fact that residence for election purposes is used synonymously with domicile.
• ELEMENTS OF CHANGE OF DOMICILE: 1. An actual removal or an actual change of domicile; 2. A bona fide intention of abandoning the former place of residence and establishing a new one; and 3. Acts which correspond with the purpose.

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Bengzon III vs. HRET

G.R. No. 142840, May 7, 2001

• CITIZENSHIP, HOW ACQUIRED: (1) by birth and (2) by naturalization
• MODES OF REACQUISITION OF CITIZENSHIP: (1) by naturalization; (2) by repatriation and (3) by direct act of Congress
• EFFECT OF REPATRIATION: Recovery of original citizenship
• NATURAL-BORN CITIZEN, DEFINED: A natural-born citizen is one who is a citizen of the Philippines from birth without having to perform any act to acquire or perfect his Philippine citizenship.

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Valles vs. COMELEC

G.R. No. 137000, Aug. 9, 2000

• CITIZENSHIP: Jus Sanguinis - a child follows the nationality or citizenship of the parents regardless of the place of his/her birth

FACTS:

Rosalind Ybasco Lopez was born on May 16, 1934 in Australia to a Filipino father and an Australian mother. In 1949, at the age of fifteen, she left Australia and came to settle in the Philippines, where she later married a Filipino and has since then participated in the electoral process not only as a voter but as a candidate, as well. In the May 1998 elections, she ran for governor but Valles filed a petition for her disqualification as candidate on the ground that she is an Australian.

ISSUE:

• Whether or not Rosalind is an Australian or a Filipino

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Conflict of Laws: Application of Foreign Law

HOW FOREIGN LAW IS GIVEN APPLICATION IN THE PHILIPPINES:

1. By statutory directives (consent of the State)
2. By agreement of the parties
3. By treaty or convention
4. By conflict of laws rule

In their absence --

A. Principles governing Conflict of Law Cases

1. Substance vs. Procedural Principles

All matters of procedure are governed by the law of the forum where the case is filed, while matters of substance are governed by the law of the country where the cause of action arose.

• PROBLEM: Some laws may be treated by one country as procedural and by another country as substantive (e.g. statute of limitations)

SOLUTIONS:

• Government Interest Analysis - the law of the country whose interest is most impaired by failure to apply its statute should be applied
• Borrowing Statute - the law of the country has a statute “borrowing” the prescriptive period provided in the foreign statute; EXCEPTION: when contrary to public policy or prohibitive laws

2. Center of Gravity Doctrine (Grouping of Contacts Principle or State of the Most Significant Relationship Theory)

Law of the state which has the most significant relationship with the occurrence and with the parties determines their rights and liabilities in tort or in contract

3. Renvoi Doctrine (Table Tennis Theory)

The conflict of law rule of the forum resorts to the foreign law, which in turn refers back to the law of the forum.

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Introduction to Conflict of Laws

Private International Law - that branch of international law which regulates the comity of states in giving effect in one to the municipal laws of another relating private persons, or concerns the rights of persons within the territory and dominion of one state or nation, by reason of acts, private or public, done within the dominion of another, and which is based on the broad general principle that one country will respect and give effect to the laws of another so far as can be done consistently with its own interests

Foreign element - a factual situation that cuts across territorial lines and is thus affected by the diverse laws of two or more states

Comity - the recognition which one state allows within its territory to the legislative, executive, or judicial acts of another state, having due regard both to international duty and convenience and to the rights of its own citizens or of other persons who are under the protection of its laws

Lex situs - the applicable law regarding the acquisition, transfer and devolution of the title to property is the law where the property is located

Lex fori - the law of the forum, where the case if filed

Lex loci actus - the law of the place where the act is done

Lex loci celebrationis - the law of the place where the contract is entered into

Lex loci contractus - the proper law applicable in deciding the rights and liabilities of the contracting parties

Lex loci delictus - the law of the place where the offense or wrong took place

Lex loci domicilii - the law of the place of the domicile of the person

Lex loci rei sitae (lex situs) - the law of the place where a thing is situated

Kilberg doctrine - a rule to the effect that the forum is not bound by the law of the place of injury or death as to the limitation on damages for wrongful act because such rule is procedural and hence the law of the forum governs the issue

Center of gravity doctrine (most significant relationship theory; grouping of contacts) - choice of law problems in conflict of laws are resolved by the application of the law of the jurisdiction which has the most significant relationship to or contact with event and parties to litigation and the issue therein

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Valles vs. COMELEC

G.R. No. 137000, Aug. 9, 2000

• Principle of jus sanguinis
• How Philippine citizenship is acquired
• Effect of filing certificate of candidacy: express renunciation of other citizenship

FACTS:

Rosalind Ybasco Lopez was born on May 16, 1934 in Australia to a Filipino father and an Australian mother. In 1949, at the age of fifteen, she left Australia and came to settle in the Philippines, where she later married a Filipino and has since then participated in the electoral process not only as a voter but as a candidate, as well. In the May 1998 elections, she ran for governor but Valles filed a petition for her disqualification as candidate on the ground that she is an Australian.

ISSUE:

• Whether or not Rosalind is an Australian or a Filipino

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Mercado vs. Manzano

G.R. No. 135083, May 26, 1999

• Dual allegiance. vs. Dual citizenship
• Effect of filing certificate of candidacy: repudiation of other citizenship

FACTS:

Manzano and Mercado are vice-mayoral candidates Makati City in the May 11, 1998 elections. Manzano got the highest number votes while Mercado bagged the second place. However, Manzano’s proclamation was suspended in view of a pending petition for disqualification on the ground that he is an American citizen.

In his answer, Manzano admitted that he is registered as a foreigner with the Bureau of Immigration and alleged that he is a Filipino citizen because he was born in 1955 of a Filipino father and a Filipino mother. He was born in the United States (San Francisco, CA) on Sept. 14, 1955 and is considered an American citizen under US laws (jus soli). But notwithstanding his registration as an American citizen, he did not lose his Filipino citizenship.

The Second Division of the COMELEC granted the petition and cancelled Manzano’s certificate of candidacy on the ground that he is a dual citizen. Under the Local Government Code (sec. 40), dual citizens are disqualified from running for any position.

The COMELEC en banc reversed the division’s ruling. In its resolution, it said that Manzano was both a US citizen and a Filipino citizen. It further ruled that although he was registered as an alien with the Philippine Bureau of Immigration and was using an American passport, this did not result in the loss of his Philippine citizenship, as he did not renounce Philippine citizenship and did not take an oath of allegiance to the US. Moreover, the COMELEC found that when respondent attained the age of majority, he registered himself as a Philippine voter and voted as such, which effectively renounced his US citizenship under American law. Under Philippine law, he no longer had US citizenship.

Hence, this petition for certiorari.

ISSUES:

• Whether or not Manzano was no longer a US citizen
• Whether or not Manzano is qualified to run for and hold elective office

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Bank of America, NT vs. American Realty Corporation

G.R. No. 133876, Dec. 29, 1999

• When foreign laws, despite having been duly presented and proven, may not be given application

FACTS:

Petitioner Bank of America (BANTSA) is an international banking and financing institution duly licensed to do business in the Philippines, organized and existing under and by virtue of the laws of the State of California, USA while private respondent American Realty (ARC) is a domestic corporation.

On numerous occasions, BANTSA and Bank of America International Limited (BAIL), organized under the laws of England, granted US Dollar loans to certain foreign corporate borrowers. These loans were later restructured, the restructured loans secured by two real estate mortgages with private respondent ARC as third-party mortgagor. When the corporate borrowers defaulted, BANTSA sued them for collection before foreign courts, without impleading ARC as party-defendant. While these civil suits are still pending before the foreign courts, BANTSA filed an extra-judicial foreclosure of real estate mortgage before the Office of the Provincial Sheriff of Bulacan, Philippines. The properties were sold at public auction, prompting ARC to file this action for damages against BANTSA.

The trial court ruled in favour of ARC and this was affirmed by the CA. Hence, this appeal.

ISSUES:

• Whether or not the petitioner’s act of filing a collection suit against the principal debtors for the recovery of the loan before foreign courts constituted waiver of the remedy of foreclosure
• Whether or not the award by the lower court of actual and exemplary damages in favour of private respondent ARC, as third-party mortgagor, is proper

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Aznar vs. Garcia

G.R. No. L-16749, January 31, 1963

• Nationality Principle
• EXCEPTION: Renvoi Doctrine

FACTS:

Edward E. Christensen, who at his death was a US citizen but domiciled in the Philippines, left a will devising unto Maria Helen (Christensen Garcia) the amount of P3, 600.00, and leaving the rest of his estate to his daughter, Maria Lucy (Christensen Daney). During partition, Helen opposed, saying that she is deprived of her legitime as acknowledged natural child of the testator. She further argued that Section 946 of the California Civil Code provides that the laws of the domicile of the decedent should be applied.

The trial court ruled that since Edward E. Christensen was a US citizen at the time of his death, the successional rights and intrinsic validity of the provisions of his will are to be governed by the law of California.

ISSUE:

• Whether or not the Renvoi Doctrine should be applied

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HSBC vs. Sherman

G.R. No. 72494, Aug. 11, 1989

• Choice-of-forum clause
• Jurisdiction and Venue
• Parties can stipulate as to their choice of venue. But if the stipulation is not restrictive, it shall be treated as merely permissive and will not bar the other party from airing the case in a different forum which has jurisdiction over the subject matter.
  

FACTS:

Sometime in 1981, Eastern Book Supply PTE, Ltd. (Company), a company incorporated in Singapore, applied with and was granted by the Singapore Branch of HSBC an overdraft facility. To secure the overdraft facility, private respondents who were directors of the Company executed a Joint and Several Guarantee in favour of HSBC, which provides that:

“This guarantee and all rights, obligations and liabilities arising hereunder shall be construed and determined under and may be enforced in accordance with the laws of the Republic of Singapore. We hereby agree that the Courts of Singapore shall have jurisdiction over all disputes arising under this guarantee….”

However, when the Company failed to pay its obligation, HSBC filed this action with the Philippine courts. In a Motion to Dismiss, the private respondents raised the abovementioned provision of the Joint and Several Guarantee. The trial court affirmed the plaintiffs but CA reversed, citing said provision as basis.

ISSUE:

• Whether or not Philippine courts have jurisdiction over the suit

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Cadalin vs. POEA

G.R. No. L-104776, Dec. 5, 1994

• GENERAL RULE: A foreign procedural law will not be applied in the forum.
• EXCEPTION: When the country of the forum has a "borrowing statute," the country of the forum will apply the foreign statute of limitations.
• EXCEPTION TO THE EXCEPTION: The court of the forum will not enforce any foreign claim obnoxious to the forum's public policy.

FACTS:

Cadalin et al. are overseas contract workers recruited by respondent-appellant AIBC for its accredited foreign principal, Brown & Root, on various dates from 1975 to 1983. As such, they were all deployed at various projects in several countries in the Middle East as well as in Southeast Asia, in Indonesia and Malaysia. The case arose when their overseas employment contracts were terminated even before their expiration. Under Bahrain law, where some of the complainants were deployed, the prescriptive period for claims arising out of a contract of employment is one year.

ISSUE:

• Whether it is the Bahrain law on prescription of action based on the Amiri Decree No. 23 of 1976 or a Philippine law on prescription that shall be the governing law

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Saudi Arabian Airlines vs. CA

G.R. No. 122191, Oct. 8, 1998

• Jurisdiction is based on allegations on the pleading
• State of the Most Significant Relationship Theory
• Conflicts of Laws Problem
• Points of Contact

FACTS:

Plaintiff Morada is a flight attendant for defendant SAUDIA’s airlines based in Jeddah. On April 27, 1990, while on a lay-over in Jakarta, Indonesia, Morada became a victim of attempted rape by fellow crewmembers, Thamer and Allah, who are both Saudi nationals. The two were eventually arrested and deported back to Saudi Arabia while Morada was transferred to Manila. On various dates after the incident, Morada was summoned to Jeddah by her employer in order to sign documents, purporting to be statements dropping the case against Thamer and Allah. However, it turned out that a case was in fact filed against her before the Saudi court, which later found her guilty of (1) adultery; (2) going to a disco, dancing and listening to the music in violation of Islamic laws; and (3) socializing with the male crew, in contravention of Islamic tradition.

Hence, Morada filed this complaint for damages based on Article 21 of the New Civil Code against SAUDIA and its country manager.

ISSUE:

• Whether or not the trial court has jurisdiction over the case
• Whether the proper law applicable is Philippine law or the law of the Kingdom of Saudi Arabia
• Whether or not the case involves a ‘conficts problem’

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