Conflicts of Law Review Notes Outline

Conflicts of Laws:
  • part of municipal law of a state which directs its courts and administrative agencies, when confronted with a legal problem involving a foreign element, whether or not they should apply a foreign law/s (Paras)
  • NOTE: part of the municipal law, particularly civil law, not international law.
Conflicts of Law distinguished from Internal Rules
  • Internal Rules
    • applicable to cases without any foreign element, which are also part of the municipal law, by the fact that they do not purport to solve the problem
    • merely point to the law to be applied, whether local law or the proper foreign law
General Principles: 
  • Private International Law
    • 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
  • Functions of Private International Law
    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
  • Private distinguished from Public International Law
              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
Transactions Involved
Private transactions bet. Private individuals
Transactions which  generally after public interest or of interest only to sovereign states
Remedies/Sanctions
Resort to municipal tribunals
Remedies may be peaceful or forcible
  • Philippine Conflicts Rules in the Civil Code?

Article
Source
Defining Points
14
Civil Code
Territoriality Principle
  • GR: 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 (e.g. crime against bigamy commited abroad is NOT punishable here)
  • EX: extra-territoriality such as in Art. 2 of RPC
2
Revised Penal Code
Extra-territoriality
  • It provides that penal statutes may find application even outside the territorial jurisdiction of an enacting state pursuant to treaty obligations and general principles of public international law.
  • Article 2. Application of its provisions. - Except as provided in the treaties and laws of preferential application, the provisions of this Code shall be enforced not only within the Philippine Archipelago, including its atmosphere, its interior waters and maritime zone, but also outside of its jurisdiction, against those who:
  • 1. Should commit an offense while on a Philippine ship or airship
  • 2. Should forge or counterfeit any coin or currency note of the Philippine Islands or obligations and securities issued by the Government of the Philippine Islands;
  • 3. Should be liable for acts connected with the introduction into these islands of the obligations and securities mentioned in the preceding number
  • 4. While being public officers or employees, should commit an offense in the exercise of their functions; or
  • 5. Should commit any of the crimes against national security and the law of nations, defined in Title One of Book Two of this Code.
  • Examples:
  • If there is a treaty for exchange of prisoners, it becomes part of our laws and a Filipino convicted for a crime abroad may serve his sentence in the Philippines.
  • If a Filipino is convicted of crimes against humanity, he may also serve his sentence here under the principle of universality, which makes such crimes punishable in any jurisdiction regardless of the place of commission.
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 (Lex Situs)
  • Real property as well as personal property is subject to the law of the country where it is situated
17
Lex Loci Celebrationis
  • GR: 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 
  • EX: 
16

Alienation and encumbrance of property (Lex Situs)


Consular Contracts
21
Family Code
When either or both of the parties to a marriage are aliens, it is necessary before securing marriage license, to provide themselves with certificate of legal capacity to contract marriage
26
GR: All marriages solemnized outside Philippines in accord with the law in force in the country where they are solemnized, and valid there as such, shall also be valid
EX: those prohibited
Art. 35 (1),(4), (5),(6)
Art. 35. The following marriages shall be void from the   beginning:
(1) Those contracted by any party below 18 years of age even with the consent of parents or guardians;
(2) Those solemnized by any person not legally authorized to perform marriages unless such marriages were contracted with either or both parties believing in good faith that the solemnizing officer had the legal authority to do so;
(3) Those solemnized without license, except those covered the preceding Chapter;
(4) Those bigamous or polygamous marriages not failing under Article 41;
(5) Those contracted through mistake of one contracting party as to the identity of the other; and
(6) Those subsequent marriages that are void under Article 53. (Requisites of Marriage (LC-CAM): 1. Legal Capacity 2. Consent 3. Authority 4. Marriage License)
Art. 36
Art. 36. A marriage contracted by any party who, at the time of the celebration, was psychologically incapacitated to comply with the essential marital obligations of marriage, shall likewise be void even if such incapacity becomes manifest only after its solemnization.
Art. 37
Art. 37. Marriages between the following are incestuous and void from the beginning, whether relationship between the parties be legitimate or illegitimate:
(1) Between ascendants and descendants of any degree; and
(2) Between brothers and sisters, whether of the full or half blood.
Art. 38
Art. 38. The following marriages shall be void from the   beginning for reasons of public policy: (blood-step-in-law-adopt3-surviving2-killed)
(1) Between collateral blood relatives whether legitimate or illegitimate, up to the fourth civil degree;
(2) Between step-parents and step-children;
(3) Between parents-in-law and children-in-law;
(4) Between the adopting parent and the adopted child;
(5) Between the surviving spouse of the adopting parent and the adopted child;
(6) Between the surviving spouse of the adopted child and the adopter;
(7) Between an adopted child and a legitimate child of the adopter;
(8) Between adopted children of the same adopter; and
(9) Between parties where one, with the intention to marry the other, killed that other person's spouse, or his or her own spouse.
80
In absence of contrary stipulation in a marriage settlement, property relations of spouses shall be governed by Philippines laws regardless of the place of the celebration of the marriage and their residence
815
Civil Code
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 with formalities prescribed by law of the place where he resides, or of his own country, or of the Civil Code of the Philippines
817
If an alien makes a will in the Philippines in accord with 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 decedent’s national law
1753
Law of the country to which goods are to be transported shall govern the liability of the common carrier for their loss, destruction or deterioration
Article
Source
Defining Points
14
Civil Code
Territoriality Principle
  • GR: 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
  • EX: extra-territoriality such as in Art. 2 of RPC
2
Revised Penal Code
Extra-territoriality
  • It provides that penal statutes may find application even outside the territorial jurisdiction of an enacting state pursuant to treaty obligations and general principles of public international law.
  • Article 2. Application of its provisions. - Except as provided in the treaties and laws of preferential application, the provisions of this Code shall be enforced not only within the Philippine Archipelago, including its atmosphere, its interior waters and maritime zone, but also outside of its jurisdiction, against those who:
  • 1. Should commit an offense while on a Philippine ship or airship
  • 2. Should forge or counterfeit any coin or currency note of the Philippine Islands or obligations and securities issued by the Government of the Philippine Islands;
  • 3. Should be liable for acts connected with the introduction into these islands of the obligations and securities mentioned in the preceding number
  • 4. While being public officers or employees, should commit an offense in the exercise of their functions; or
  • 5. Should commit any of the crimes against national security and the law of nations, defined in Title One of Book Two of this Code.
  • Examples:
  • If there is a treaty for exchange of prisoners, it becomes part of our laws and a Filipino convicted for a crime abroad may serve his sentence in the Philippines.
  • If a Filipino is convicted of crimes against humanity, he may also serve his sentence here under the principle of universality, which makes such crimes punishable in any jurisdiction regardless of the place of commission.
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 (Lex Situs)
  • Real property as well as personal property is subject to the law of the country where it is situated
17
Lex Loci Celebrationis
  • GR: 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 
  • EX: 
16

Alienation and encumbrance of property (Lex Situs)


Consular Contracts
21
Family Code
When either or both of the parties to a marriage are aliens, it is necessary before securing marriage license, to provide themselves with certificate of legal capacity to contract marriage
26
GR: All marriages solemnized outside Philippines in accord with the law in force in the country where they are solemnized, and valid there as such, shall also be valid
EX: those prohibited
Art. 35 (1),(4), (5),(6)
Art. 35. The following marriages shall be void from the   beginning:
(1) Those contracted by any party below 18 years of age even with the consent of parents or guardians;
(2) Those solemnized by any person not legally authorized to perform marriages unless such marriages were contracted with either or both parties believing in good faith that the solemnizing officer had the legal authority to do so;
(3) Those solemnized without license, except those covered the preceding Chapter;
(4) Those bigamous or polygamous marriages not failing under Article 41;
(5) Those contracted through mistake of one contracting party as to the identity of the other; and
(6) Those subsequent marriages that are void under Article 53. (Requisites of Marriage (LC-CAM): 1. Legal Capacity 2. Consent 3. Authority 4. Marriage License)
Art. 36
Art. 36. A marriage contracted by any party who, at the time of the celebration, was psychologically incapacitated to comply with the essential marital obligations of marriage, shall likewise be void even if such incapacity becomes manifest only after its solemnization.
Art. 37
Art. 37. Marriages between the following are incestuous and void from the beginning, whether relationship between the parties be legitimate or illegitimate:
(1) Between ascendants and descendants of any degree; and
(2) Between brothers and sisters, whether of the full or half blood.
Art. 38
Art. 38. The following marriages shall be void from the   beginning for reasons of public policy: (blood-step-in-law-adopt3-surviving2-killed)
(1) Between collateral blood relatives whether legitimate or illegitimate, up to the fourth civil degree;
(2) Between step-parents and step-children;
(3) Between parents-in-law and children-in-law;
(4) Between the adopting parent and the adopted child;
(5) Between the surviving spouse of the adopting parent and the adopted child;
(6) Between the surviving spouse of the adopted child and the adopter;
(7) Between an adopted child and a legitimate child of the adopter;
(8) Between adopted children of the same adopter; and
(9) Between parties where one, with the intention to marry the other, killed that other person's spouse, or his or her own spouse.
80
In absence of contrary stipulation in a marriage settlement, property relations of spouses shall be governed by Philippines laws regardless of the place of the celebration of the marriage and their residence
815
Civil Code
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 with formalities prescribed by law of the place where he resides, or of his own country, or of the Civil Code of the Philippines
817
If an alien makes a will in the Philippines in accord with 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 decedent’s national law
1753
Law of the country to which goods are to be transported shall govern the liability of the common carrier for their loss, destruction or deterioration
Cases:
  • Bank of America v. CA (2003)
    • Summary: Eduardo K. Litonjua, Sr. and Aurelio J. Litonjua (Litonjuas) were engaged in the shipping business owning 2 vessels.  SInce their business are doing good, Bank of America offered to purchase 4 more ships through their loan.  Soon, they lost everything in a foreclosure sale and owed 10% of their personal funds.  They filed the case in RTC Pasig against BA and BA international.  BA NT&SA, and BA international filed a motion to dismiss on the grounds of forum non conveniens.  SC: dismissed.
    • Doctrines:
      • Philippine Court may assume jurisdiction over the case if it chooses to do so; provided, that the following requisites are met: 
        • (1) that the Philippine Court is one to which the parties may conveniently resort to; - present
        • (2) that the Philippine Court is in a position to make an intelligent decision as to the law and the facts; and, - present
        • (3) that the Philippine Court has or is likely to have power to enforce its decision - present
      • This Court further ruled that while it is within the discretion of the trial court to abstain from assuming jurisdiction on this ground, it should do so only after vital facts are established, to determine whether special circumstances require the court's desistance; and that the propriety of dismissing a case based on this principle of forum non conveniens requires a factual determination, hence it is more properly considered a matter of defense
  • Phil. Export and Foreign Loan Guarantee Corp. v. V.P. Eusebio Construction Inc. (2004)
    • Summary: In a construction project in Irag, VPECI got Philguarantee as guarantor.  It advised Philguarantee not to pay SOB yet because of the delay but it did.  There is no express law regarding the validity of contracts.  SC applied our laws.  Moreover Philguarantee as guarantor could have waited to resort first all remedies but having paid depsite the advise it has waived its right.
    • Doctrines:
      • The rule followed by most legal systems, however, is that the intrinsic validity of a contract must be governed by the 
      • If none:
        • (1) the parties may choose the governing law
          • lex contractus or "proper law of the contract."
            • law voluntarily agreed upon by the parties (the lex loci voluntatis) 
            • law intended by them either expressly or implicitly (the lex loci intentionis) 
        • (2) in the absence of such a choice, the applicable law is that of the State that "has the most significant relationship to the transaction and the parties 
        • (3) all matters relating to the time, place, and manner of performance and valid excuses for non-performance are determined by the law of the place of performance or lex loci solutionis, which is useful because it is undoubtedly always connected to the contract in a significant way
      • laws of Iraq bear substantial connection to the transaction, since one of the parties is the Iraqi Government and the place of performance is in Iraq. 
        • However, since that foreign law was not properly pleaded or proved, the presumption of identity or similarity, otherwise known as the processual presumption, comes into play. Where foreign law is not pleaded or, even if pleaded, is not proved, the presumption is that foreign law is the same as ours
  • Northwest Orient Airlines, Inc. CA (1995)
    • Summary: Northwest Airlines (Northwest) and C.F. Sharp & Company (C.F.), through its Japan branch, authorized C.F. to sell its air transportation tickets.  C.F. failed to remit so Northwest filed in the Tokyo Court and it rendered a decision against C.F. RTC and CA: dismissed the case for being out of jurisdiction SC: granted Northwests petition. SHARP may be deemed a resident of Japan, and, as such, was amenable to the jurisdiction of the courts therein and may be deemed to have assented to the said courts' lawful methods of serving process
    • Doctrines:
      • the party attacking (C.F.) a foreign judgment has the burden of overcoming the presumption of its validity
      • the Japanese law on the matter is presumed to be similar with the Philippine law on service of summons on a private foreign corporation doing business in the Philippines
        • Our laws and jurisprudence indicate a purpose to assimilate foreign corporations, duly licensed to do business here, to the status of domestic corporations