has jurisdiction (this is known as choice of law); and (iii) the recognition and

Module 1 - Introduction To enforcement of judgments rendered by foreign courts or awards of foreign

arbitration. (Collier, Conflict of Laws)

Conflict of Laws 6. In its narrower sense, “conflict of laws” describes a case that has had
contacts with two or more jurisdictions and in which the laws of these
WHAT IS CONFLICT OF LAWS? several places differ with respect to some issue that has arisen in the
case. (Siegel, Conflict of Laws)
1. It is that part of the municipal law of the state which direct its courts 7. In Hilton v. Guyot- the U.S. Supreme Court defined private
and administrative bodies/agencies, when confronted with a legal international law/conflict of laws as the “law concerning the rights of
problem involving a foreign element, to apply either the local law or a persons within the territory and dominion of one nation, by reason of
foreign law. (Paras) acts, private or public, done within the dominion of another nation”.
2. The conflict of laws is that part of the private law of a country which 8. “Private international law is that part of law which comes into play
deals with cases having a foreign element. (Mc Clean, Morris: Conflict of when the issue before the court affects some fact or event, or transaction
Laws) that is so closely connected with a foreign system of law as to necessitate
3. Conflict of laws is that part of the law of the state which determines recourse to that system.” (Chesire)
whether, in dealing with a legal situation, the law of some other states 9. Basically conflict of law is a problem of choice of law between foreign
will be recognized, be given effect or be applied. (Am. Jur.) law and a local or municipal law, the court taking cognizance of the case
4. Conflict of laws is that part of the law which deals with the extent to involving a foreign element (forum court). The starting point in the
which the law of a state operates and determines whether the rules of determination of which law should apply is the local law or the law of the
one or another state should govern a legal situation. It is that part of the forum. (Agpalo)
law that becomes operative whenever a legal controversy arises in which
there is a foreign element. (Ranhilio Aquino citing 15 CJS 366)       A common thread running through all classical definition of private
5. The English conflict of laws is a body of rules whose purpose is to international law is that IT IS THAT PART OF THE MUNICIPAL LAW WHICH
assist an English court in deciding a case which contains a foreign GOVERNS CASES INVOLVING A FOREIGN ELEMENT. (Coquia)
element.
        From the foregoing definitions of conflict of laws, two common elements
It consists of three main topics, which concern respectively: (i) the are apparent: first, the existence of a case involving a foreign element filed in
jurisdiction of an English court, in the sense of its competence to hear and the forum (conflict case) and second the process of determining whether to
determine a case; (ii) the selection of the appropriate rules of a system of apply the municipal or local laws or the proper foreign law in the resolution
law, English or foreign which it should apply in deciding a case over which it of the case.
  
o The Civil Code
WHAT IS THE OBJECTIVE OF CONFLICT OF LAWS? o The Family Code
      The objective is the harmonization of the laws of several states whenever o The Corporation Code (B.P. Blg. 68) of 1980
a conflict of laws situation exists. o The General Banking Act or Act No. 337 which took effect in
1948
      Conflict of law rules aim to PROMOTE STABILITY AND UNIFORMITY OF o The Protection of Intellectual Property (P.D. 49)
SOLUTIONS PROVIDED BY LAWS AND COURTS OF EACH STATE CALLED o Carriage of Goods by the Sea Act (COGSA)
UPON TO DECIDE CASES INVOLVING A FOREIGN ELEMENT. o The Salvage Law
o Etc.
      The function of conflict of laws is to provide rational and valid rules or
guidelines in deciding cases where the parties, events or transactions are
2. Constitution
linked to more than one jurisdiction. 
  Another basic source of law in this jurisdiction is the 1987 Constitution which
contains principles on nationality and comity.
WHAT ARE THE FUNCTIONS OF CONFLICT OF LAWS OR PRIVATE
INTERNATIONAL LAW? (Paras)  3. Treaties and international conventions
1. It prescribes the conditions under which a court or administrative  After securing its freedom from colonial rule of Spain and the U.S. and since
body or agency is competent to take cognizance or entertain proceedings it became a republic, the Philippines has entered into a number of treaties
with foreign element. and international conventions that deal with private international
2. Specifies the circumstances in which foreign judgments will be law/conflict of laws.
recognized as valid and binding in the forum.
3. Determines the particular system of law for each class/classes of Examples:
cases to determine the rights of parties. 
o
   Convention for the Unification of Certain Rules Relating
 WHAT ARE THE SOURCES OF CONFLICT OF LAWS? to International Carriage by Air- commonly referred to as the
WARSAW CONVENTION (Feb. 7, 1951)
 United Nations Convention on the Carriage of Goods
1. Codes and statutes
by Sea Act (1979)
  Convention on the Consent to Marriage, Minimum Age The custom of Comity of Nations was exemplified in HILTON vs. GUYOT
for Marriage and Registration of Marriages (April 21, 1965) (159 U.S. 113 (1895)
 Convention on Traffic of Persons (1955)
 Convention on the Elimination of Discrimination FACTS:
Against Women (CEDAW) (September 4, 1981) Charles Fortich and Co. a French firm and Gustave Guyot, liquidator of the
 Convention on the Rights of Children said French firm sued Henry Hilton and William Libbey, residents of New
 Etc. York, but doing business and trading as co-partners in Paris under the firm
name of A.T. Stewart and Co. for debts due the French firm.
  The case was filed in France. The French Court rendered judgement in favor
of Charles Fortich and Co. and Guyot. 
4. Jurisprudence/Judicial Decisions
Thereafter, Fortich and Co. and Guyot sued Hilton and Libbey in the U.S.
One of the more important sources of conflict of law rules are decisions of Circuit Cout for the Southern District of New York for the enforcement of the
courts. The interpretations and applications of the Supreme Court of the judgement of the French Court and seeking an amount totaling over $195,
provisions of law form part of the Philippine legal system. 000. The New York Court found for the French firm and declared the
judgment rendered by the French Court as conclusive without examining
Art. 8 of the Civil Code expressly provides that judicial decisions applying or anew the merits of the case.
interpreting the laws or the Constitution shall form part of the Philippine
legal system. Defendants Hilton and Libbey questioned the New York court ruling on many
grounds. The main ground relied upon by Hilton and Libbey was their
5. International Customs ( International Comity) argument that the French Courts do not give force and effect to the duly
rendered judgments of U.S. Courts against French Citizens.
A good example of international custom as a source of conflict of laws ISSUE:
is COMITY OF NATIONS.
May the French judgment be considered conclusive as to be given effect in
 By definition COMITY pertains to the recognition which one nation allows U.S. Courts in view of the fact that French courts do not offer the same
within its territory to the legislative, executive or judicial acts of another treatment to judgments rendered in U.S. jurisdiction against French
nation, having due regard both to international duty and convenience, and to Nationals?
the rights of its own citizens or of other persons who are under the
protection of its law. HELD:
Judgment of the New York Court was reversed.
Justice GRAY states in the Decision that “No law has any effect, of its own 1. The ROMAN LAW
force, beyond the limits of the sovereignty from which its authority is
derived.”            The origin of conflict of laws may be traced to the Roman Law.
Although this is disputed by some authors, it remains that much of the
The extent to which the law of one nation shall be allowed to operate
provisions of our present Civil Code trace their roots from the Roman Law.
within the dominion of another nation, depends upon the COMITY OF
NATIONS.            Our Civil Code is a direct off-shoot of the Spanish Civil Code.  Our Civil
Code “is strongly influenced by the Spanish Civil Code, which was first
Comity is neither a matter of absolute obligation, on one hand, nor of mere
enforced in 1889 within the Philippines, then a colony of Spain. The Spanish
courtesy and good will, upon the other. It is the recognition which one
Civil Code remained in effect even during the American Colonization of the
nation allows within its territory to the legislative, executive or judicial acts
Philippines. However, by 1940, the Commonwealth Government of the
of another nation, having due regard both to international duty and
President Manuel Quezon had created a Commission to create the new Civil
convenience, and to the rights of its own citizens or of other persons who
Code. Xxx However, the work of the Commission was interrupted by the
are under the protection of its laws…
Japanese Invasion of the Philippines, and its records were destroyed during
International laws are founded upon mutuality and RECIPROCITY. the Battle of Manila in 1945.” The influence of the Spanish Civil Code is most
evident in the Books on property, succession and obligations and
Since France do not extend conclusive treatment of judgments rendered in contracts. (www.thecorpusjuris.com/republic  (Links to an external site.) act
the U.S. against French nationals, the U.C. courts cannot do the same for a no. 386/ History of the Civil Code)
judgment rendered by a French Court against U.S. nationals.       The Spanish Civil Code upon the other hand, traces its roots to the
Napoleonic Code or the French Civil Code of 1804. The French Civil Code still
6. Other sources are: exists, with revisions. The Napoleonic Code remains as the most influential
civil laws of most countries of Continental Europe and Latin America in the
 19th century. Prior to the codification of the Napoleonic Code diversity of laws
o Natural moral law was the predominant characteristics of the pre-revolutionary legal order in
o Writings, treatises of renown jurists on the subject, etc. France. Southern France was governed by the Roman Law whereas the
(Sempio Dy) northern provinces were governed by customary laws based largely on
feudal Frankish and Germanic institutions. (www.britannica.com/  (Links to
  an external site.)Napoleonic Code)
HISTORICAL BACKGROUND AND DEVELOPMENT OF CONFLICT OF       We can still see in our present civil laws the influences of the Roman Law.
LAWS A host of Roman Law principles found its way in our present civil laws. The
use of Latin legal maxims, which was the language during the Roman rule in
much of Europe and Africa, are still commonly used among lawyers, law 3. IUS CIVILE or JUS CIVILE (meaning, civil law), was used in ancient
professors and even law students. Rome to distinguish the law found exclusively in the City or Rome
from Jus Gentium, the law of all nations, found throughout the empire.
 
(britannica.com/ius (Links to an external site.) civile)
2. IUS GENTIUM (literally “law of nations”)        It basically pertains to the law that is applied only to Roman citizens. It
contains the rules and principles of law derived from customs and
     Ius Gentium or Jus Gentium, literally means law of nations. In legal
legislation of Rome or from fundamental ideas of right and wrong implicit
theory, it refers to that law which natural reason establishes for all men, as
in human minds.
distinguished from jus civile, or the civil law peculiar to one state or people.
Roman lawyers and magistrates originally devised jus gentium as a system of  
equity applying to cases between foreigners and Roman citizens. The concept
originated in the Roman’s assumption that any rule of law common to all 4. THEORY OF STATUTES (THEORY OF STATUTA)
nations must be fundamentally valid and just. They broadened the concept
to refer to any rule that instinctively commended itself to their sense of       The idea of conflicting laws is something that is not novel. Ever since
justice. Eventually the term became synonymous with equity, or the different laws with different scopes of application existed, questions arose as
praetorian law. In modern law, there is a distinction between jus gentium to which law should be applicable in a certain case.
privatum, which denotes private international law, otherwise known as
conflict of laws, and jus gentium publicum, which denotes the system of rules       IN THE FOURTEENTH CENTURY, the City states of Italy such as Milan,
governing the intercourse of nations. (www.britannica.com/jus (Links to an Bologna, Genoa, Naples, Venice, etc. became centers of maritime commerce.
external site.) gentium/Roman law) The growing number of traders at that time included foreign nationals who
did business with citizens of these City states.
     During the reign of the Romans, inhabitants of the empire were treated
either as citizens or foreigners or barbarians.  Ius Gentium, the body of rules       Northern Italy, then, was divided into several city states. Each city had its
developed by the PRAETOR PEREGRINUS, was mainly used for the purpose own local laws governing private matters. The varying laws in each city states
of resolving disputes between foreigners, or between a foreigner and a gave rise to the problem of WHICH LAW TO APPLY in transactions between
Roman citizen. It was the earliest  body of rules to address a case involving individuals of different city states.  This prompted the jurists to make an
a foreign element. intensive study of conflict of laws in order to guide the business and trade
transactions of foreigners and citizens.
    This is the early concept of international law within the ancient Roman
legal system. It is derived from the customs and laws of all nations.       The first jurists to engage elaborately with these questions were the north
Italian commentators of the 14th century. On the basis of his predecessors,
  Bartolus de Saxoferrato (1314- 1357) developed the so-called theory of
statute, a theory according to which the nature and content of the statute 
itself defined whether it was applicable to a certain case. o STATUTA MIXTA- mixed statutes/ laws applicable or applied
(www.law.ox.ac.uk/theory (Links to an external site.) of Statuta) to all other matter including contracts.
      BARTOLUS DE SAXOFERRATO, acknowledged as the father of Conflict of      Contracts, depending on where they were entered into by the different
Laws, was the first one who formulated the THEORY OF STATUTES, nationals, fell under the domain of mixed statutes.
understood as the local laws and customs of each City state.
 
     The Theory of Statutes attempted to address the problem on what law to
apply in cases involving persons from different city states with different or
6. THE AGE OF COLONIZATION and the DUTCH JURISTS
even conflicting laws. The THEORY provided rules on the choice of law
problems.
      The rules in resolving conflicting laws became more widespread in
  application as Dutch jurists focused themselves with developing rules to
resolve conflicting municipal laws but also of the diverse legal systems of
5. THE SPREAD OF THE THEORY AND LEGAL PRACTICES FROM sovereign nations.
ITALY TO FRANCE in the 16th Century.      Dutch jurists (Led by ULRICH HUBER, Dutch jurist who first coined the term
Conflict of Laws) (1596 – 1649)  asserted that the state (a sovereign one) is
      This doctrine was specified by French legal scholars in the 16th century under no obligation to apply a foreign law within its
who distinguished between three types of statute with specific legal effects: jurisdiction, UNLESS required by a treaty or comitas gentium, or
statute personalia, statute realia, and statute mixta. The Dutch lawyers of the considerations of courtesy and expediency. This led to the development of
17th century continued with this new theory of statute and introduced the territorial principle under which the laws of the state would apply or operate
comity of nations as its basis. (supra) only within the territorial limits of such state.
     According to the theory, statutes were further classified into:      One of the legal principles formulated based on the foregoing principle is
that formulated by JOHN VOET (1647- 1715) which states that no statute,

real or personal or mixed, can act by itself beyond the territory of the
o STATUTA REALIA- laws applicable to things and immovable
legislator nor can it have any effect elsewhere against the will of the
within the state.
legislator of another state.
      Another influence of Huber among English and American legal writers is
o STATUTA PERSONALIA- personal laws /statutes followed the the development of the territorial principle which states that the laws of
person wherever he went and governed his status and capacity every state may operate only within the territorial limit of such state.
However, a sovereign state may recognize that a law which has already      In the same manner, this principle found its way in our Civil Code more
operated in the country of its origin shall retain its force everywhere, particularly Article 16 or the “Lex situs rule”, which states, in part:
provided that this will not prejudice the subjects of the sovereign whose
recognition is sought.      “Art. 16. Real property as well as personal property is subject to the law
of the country where it is situated. Xxx”
 
 
7. THE ERA OF CODIFICATION OF LAWS. During this era, 8. MODERN DEVELOPMENTS IN CONFLICT OF LAWS
European nations started codifying their laws. The rules on conflict of
laws as provided in the abovementioned theories and doctrines found 1. The NEO-STATUTISTS- They follow the Italian theory in conflict of
their way into these codified statutes. laws which provides that when two or more independent laws are
applicable to a CONFLICT CASE, the method developed or devised by the
     Of material importance to the Philippine legal system is the  codification
state shall be applied to determine what law shall prevail or shall apply to
of the FRENCH CIVIL CODE OF 1804. As above discussed, the French Civil
the particular conflict case.
Code became the pattern for the Spanish Civil Code including the Codes of
Belgium and Romania. The Spanish Code, which was in effect in the
Philippines during the Spanish regime in the Philippines influenced to a great
2. The INTERNATIONALISTS- They advocate the idea that there
should be a SINGLE BODY OF RULES that can solve problems involving a
extent our present Civil Code.
foreign element.
     The PRINCIPLE OF NATIONALITY contained in Article 3 of the French Civil
Code and later on adopted in the Spanish Civil Code found its way in our 3. The TERRITORIALISTS- They maintain that the law of the state
present Civil Code. should apply to persons and things within the state and that no foreign
law should be made to apply. This group adheres to the view that ONLY
     It is now contained in Article 15 of our Civil Code, which states, to wit:
RIGHTS VESTED OR ACQUIRED under a foreign law are recognized in the
     “Laws relating to family rights and duties or the status, condition and forum but NOT THE FOREIGN LAW ITSELF.
legal capacity of persons are binding upon citizens of the Philippines, even
though living abroad.”  

     Later on, subsequent legal jurists advocated the theory of SITUS or the RELEVANCE OF CONFLICT OF LAWS
principle that every element of a transaction should be governed by the law      The diversity of municipal laws of various states and the occurrence of
of the place with which such element has the most substantive connection. transactions affected by the laws of two or more states give rise to conflicts
case or problems. The subject assumes even greater importance in the light
of recent technological developments in travel and business. Inter-country
and inter-continental travel has become less costly and more accessible.
Hence, more and more people move from one jurisdiction to another doing
engaging in business transaction virtually everywhere in this global village.
Moreover, even without leaving the confines of one’s home, one can
navigate the entire world virtually and do business transactions with people
living in foreign countries by the simple act of clicking some buttons.  The
world has become a global village, so to speak. With these developments
also come legal problems between individuals from different jurisdiction with
different laws or legal system necessitating the application of conflict of laws.
Needless to say, conflict of laws or private international law has become even
more relevant in today’s unstoppable technological advances. Bartolus, his
predecessors and those who followed suit after him, in laying down the
foundational principles of conflict of laws, must be smiling in their graves for
even after eons and changing times, their works still find relevance in
addressing evolving legal problems that cut across territorial lines.
 

 PUBLIC INTERNATIONAL LAW VS PRIVATE INTERNATIONAL LAW

2. Both public international law and private international law are

branches of international law.
3. Public International Law governs the relationship of states and
international entities (like U.N., NATO, SEATO, WHO, IRC, etc.)

      In contrast, private international law comprehends laws regulating private

transactions across national frontiers.
 Private International Law Public International Law

As to Source

It is based on domestic and municipal laws, which includes the constitution and Public International law is based on international conventions, international customs, the
statutes adopted by individual countries. general principles of law recognized by civilized nations, and judicial decisions and the
teachings of the most highly qualified publicists of the various nations.

As to Subject or Persons Involved

The subjects of private international law are individuals and corporations. The subjects of public international law are sovereign states and international organization.
As to Character
National / municipal or LOCAL in character International in character
As to Transactions Involved

Private international law assumes control over transactions which are strictly
Recognizes transactions in which sovereign states are interested
private in nature

As to Remedies Applicable/Applied

In case of violation of international laws, the state may resort to diplomatic protest,
All the remedies are provided by municipal laws of the state, such as resort to negotiation, arbitration, adjudication by filing cases before international tribunals or may
courts and administrative bodies. even resort to the use of force or war or use of lesser form of coercion like economic
sanctions like embargo, blockade etc. 
Private international law principally governs individuals in their private
transactions  which involves a foreign element. Module 2 - Conflict Case and
     Private international law deals mainly with conflict of laws among the laws
of two or more states and necessitates a determination of which municipal
law applies to a case. The objective of private international law is to
Phases of Conflict Resolution
harmonize municipal laws of states whenever conflict of law situation exists. Q: What is a conflict of law case/problem?
   Conflict of law case pertains to any case/cases involving facts occurring in
more than one state or nation that must choose between the laws of
A more detailed distinction are as follows:
different states or countries in deciding the case (Sempio Dy, Handbook on
References: Conflict of Laws)
 
1. Conflict of Laws Cases, Materials and Comments
Q: What is a foreign element in conflict of laws?
By: Jorge Coquia, Elizabeth Aguilling –Pangalangan
       The most important component of a conflict of law problem is the
2. Review Notes in Conflict of Laws presence of a foreign element.  A foreign element is anything which is not
domestic and has foreign component to it. It can refer to a party to a
By: Dean Honorato Y. Aquino transaction who is foreigner, or a foreign corporation, or even an incident or
transaction happening in a foreign jurisdiction, or a foreign law chosen by the
3. Elements of Private International Law parties. Without a foreign element, the case is only a domestic problem
which does not necessitate the application of rules in resolving (or
By: Fr. Ranhilio Callangan Aquino harmonizing) conflict problems.

4. Conflict of Laws Consider this illustration: 

John, a 17-year old Malaysian citizen living in Kuala Lumpur, Malaysia, and
By: Galahad R. A. Pe Benito
Pedro, a Filipino citizen, also residing in Kuala Lumpur, Malaysia, entered into
a contract of sale in Manila, Philippines whereby John sold to Pedro a
condominium unit owned by John in Kuala Lumpur, Malaysia for 10, 000 US
Dollars to be paid in Kuala Lumpur. The deed of sale was not notarized by a
notary public. After paying the consideration in Kuala Lumpur, Malaysia,
Pedro demanded the delivery of the condominium unit to him. John, jurisdiction, or it may even be the involvement of a foreign law chosen or
however, for unknown reasons, failed to deliver the condominium unit to agreed upon by the parties to govern their transaction or agreement.
Pedro. Pedro sued John for specific performance with damages in the RTC of
Manila, Philippines. John advanced the defense that the contract is not valid       If the case has no foreign element in it, it is not a proper conflict of law
as the same was not reduced into a public instrument and that he has no case or problem. If it has no foreign element in it, the same can be resolved
legal capacity to enter into a contract at the time the deed of sale was without recourse to a foreign law or legal system, it is purely a domestic case
executed as he was only 17 years old. Is the contract valid? which may be resolved by the court without applying a foreign law or
harmonizing the law of the forum with a foreign law. 
    I do not intend to answer the question. The problem simply illustrates a
case involving a foreign element. First, the contracting parties are citizens of      Thus, it can be said that conflict of laws come into play only when: 1) there
different countries. Second, the contract was entered in the Philippines but is a legal problem or case with foreign element; and 2) there is a necessity for
the real property involved is situated in a foreign country- Malaysia. Third, the forum court to determine or resolve whether the law of the forum
the performance of the obligation will take place in Malaysia but the contract (where the case is lodged) or the law of other states shall be applied or shall
was executed in Manila, Philippines. This is a conflict of law case/problem. govern the legal problem or case. Or whether a foreign judgment shall be
recognized or be made applicable to the forum. (Coquia, Conflict of Laws)
     The resolution of this case necessitates the application of and interplay of
the laws of Malaysia and the law of the forum- the law of the place where    The concept of a foreign element in a case was exemplified in the oft-cited
the action was filed. There is a need to harmonize the law of Malaysia with case of Saudi Arabian Airlines v. Court of Appeals- GR No. 122191, Oct. 8,
that of the Philippines. 1998 (Links to an external site.)

     BUT if, let's say that both Pedro and John are Filipinos and the property FACTS:
subject matter of the sale is a real property situated in the forum, and that
1. Saudi Arabian Airlines (Saudia) hired Milagros Morada (Milagros) as a
the performance of the contract would be in the Philippines, the case does
flight attendant. In one of the flights and while in Indonesia, two other
not involve any foreign element. It is a purely domestic case which does not
crews of Saudia, Thamer Al Gazzawi and Allah Al-Gazzawi, both Saudi
call for the application of any foreign law or the harmonization of Philippine
nationals attempted to rape Milagros. The attempt was timely thwarted
law with a foreign law. The application of Philippine laws on the problem
by the roomboy and security personnel of the hotel where Milagros was
would suffice for the resolution of the case.
nearly raped. Thamer and Allah were arrested by Jakarta Police.
     The most important element of a conflict of law problem is the existence 2. After about two years, Milagros was requested to see the Chief Legal
of a foreign element. A foreign element is anything which is NOT domestic Officer of Saudia in Jeddah, Saudi. She was brought to a police station
and has a foreign component to it. The foreign component or element may where she was questioned and her passport was confiscated.
appear in different forms. It may be a foreigner party to the case, a foreign
corporation, a transaction or an incident which took place in a foreign
3. After over a year and a half in Riyadh, Milagros was handed to a Saudi A factual situation that cuts across territorial lines and is affected by the
Court where she was made to sign a document in Arabic which turned diverse laws of two or more states is said to contain a foreign element. The
out to be a notice to appear before the court. presence of foreign element is inevitable since social and economic affairs of
4. Milagros was later on brought to the same court where a judge individuals and associations are rarely confined to the geographic limits of
rendered a decision finding her guilty of adultery, going to a disco, their birth or conception.
listening to music, and socializing with the male crew members of Saudia,
all in violation of Islamic laws and tradition.  The forms in which these foreign elements may appear are many. The
5. Finding the conviction wrongful, the Prince of Makkah dismissed the foreign element may simply consist in the fact that one of the parties to a
case against Milagros and she was allowed to leave Saudi. However, she contract is an alien or has a foreign domicile, or that a contract between
was terminated from Saudia without being informed of the cause nationals of one state involves properties situated in another state. In other
thereof. cases, the foreign element may assume a complex form.
6. Upon arriving in the Philippines, Milagros sued Saudia for damages.         In this case, the foreign element consisted in the fact that Milagros is a
7. Saudia filed an Omnibus Motion praying for the dismissal of the case resident Philippine national and that Saudia is a resident foreign corporation.
on the ground, among others, that the Complaint states no cause of Also, by virtue of the employment of Milagros as a flight stewardess of
action, that the claim has been waived, abandoned or otherwise Saudia, events transpired during her many occasions of travel across national
extinguished, and that the trial court has no jurisdiction to try the case. boarders, particularly from Manila, Philippines to Jeddah, Saudi Arabia, and
8. The trial court denied the Omnibus Motion as well as the Motion for vice versa, that caused a conflicts situation to arise.
Reconsideration filed thereafter.
9. Saudia questioned the trial court’s denial of the Omnibus Motion NOTE: Read the full text of the case for a better appreciation of the High
before the Court of Appeals. The CA sustained the order of the trial court. Tribunal's discussion and resolution of the issue. I limited the outline in this
notes on the Court's explanation of the concept of foreign element in a case
    The case reached the Supreme Court and  among the issues raised before or problem.
the High Tribunal is:
Q: What are the phases in the resolution of conflict
 Whether Philippine law governs plaintiff’s action against Saudia for damages. case/problem?
HELD: There are three basic phases in the resolution of conflict problem.
       The Philippine law shall apply to plaintiff’s action for damages against First is JURISDICTION. This phase concerns the  power or authority of a court
Saudia. to take cognizance of a case.
        In this case, the SC had the opportunity to discuss the concept of a Second is the CHOICE OF LAW. This phase pertains to the determination of
foreign element in a case, thus: the law which should be applied in a particular conflict   
Third is the RECOGNITION AND ENFORCEMENT of JUDGMENTS   
The phases of conflict resolution in a conflict problem is illustrated in the ISSUE:
case of Hasegawa v. Kitamura GR No. 14177, November 23, 2007 (Links to
an external site.) Among others, the issue raised before the SC is whether or not jurisdiction
over the subject matter of the Philippine court may be assailed on the
FACTS principles of lex loci celebrationis, lex contractus, and the state of the most
significant relationship rule, or forum non-conveniens.
1. Nippon Engineering Consultants Co. Lt. (Nippon) and Minoru
Kitamura (Kitamura), a Japanese national permanently residing in the HELD:
Philippines, entered into an independent Contractor Agreement (ICA). The principles of principles of lex loci celebrationis, lex contractus, and the
The ICA provided that Kitamura shall extend professional services to state of the most significant relationship rule, or forum non-conveniens are
Nippon for a year starting on 1 April 1999. For this purpose, Nippon improper grounds for questioning the jurisdiction of the Philippine court.
assigned Kitamura as its Project Manager in various projects in the
Philippines. In this case, the SC discussed the reasons why the foregoing principles may
2. February 28, 2000, Kitamura was informed by Nippon’s general not be applied in questioning the jurisdiction of the RTC of Lipa City. In the
manager that Nippon will not renew the ICA with Kitamura and that his process, the SC emphasized the importance of determining the different
services would be terminated by March 31, 2000. Nippon insisted that phases of conflict problem resolution. The SC teaches that the three phases
the ICA was only for a fixed term of one year and this will expire by the are separate and distinct from each other and a defense in one phase may
end of March 2000. not be available as a defense in the other phases.
3. Kitmura sued Nippon for specific performance and damages with the
The following discussion of the SC are instructive:
RTC of Lipa City. Nippon moved for the dismissal of the case on the
ground of lack of jurisdiction. Nippon argued that the claim for improper
1. The judicial resolution of conflict problems involves three consecutive
termination of the ICA may be ventilated only in the proper courts of
phases: jurisdiction, choice of law and recognition and enforcement of
Japan pursuant to the principle of LEX LOCI CELEBRATIONIS and LEX
judgement. Under the jurisdiction phase, the court shall deal with the
CONTRACTUS.
question, “Where can and should litigation be initiated?”. Under the
4. The RTC denied the motion to dismiss. The dismissal was affirmed by
choice of law phase, the question is, “Which law will the court apply?”.
the CA. the Court of Appeals ratiocinated that the principle of lex loci
Under the third phase, the court shall settle the question, “Where can
celebrationis was not applicable to the case, because nowhere in the
the resulting judgment be enforced?”
pleadings was the validity of the written agreement put in issue.
2. Jurisdiction and choice of law are two distinct concepts. Under the
Moreover, the CA affirmed the RTC’s application of the principle of lex
jurisdiction phase, the court considers whether it is fair to cause a
loci solutionis.
defendant to travel to this state to litigate his defenses. In choice of law
 phase, the court further asks the question whether the application of a inapplicable to the issue of jurisdiction but also not yet called for. The
substantive law which will determine the merits of the case is fair to both invocation of the foregoing rules in choice of law phase is premature.
parties.
3. In this case, only the question of jurisdiction is in issue. In Nippon’s Summary of the lessons in Hasegawa in relation to the phases of conflict
motion to dismiss, it did not argue that the RTC of Lipa City had no resolution:
jurisdiction to hear the case. What Nippon raised as grounds to question
the jurisdiction of the RTC over the subject matter of the controversy 1. The judicial resolution of conflicts problems involves three main
were the principles of lex loci celebrationis, and lex contractus, and the phases- jurisdiction, choice of law, and recognition and enforcement of
state of the most significant relationship rule. judgment.
4. The SC finds the foregoing grounds unsound to support its argument
that the RTC lacks jurisdiction over the subject matter of the controversy. 2. Jurisdiction has many aspects. For a court to validly exercise its power
5. The doctrine of lex loci celebrationis relates to the law of the place of to adjudicate a controversy, it must have jurisdiction over the subject
the ceremony or the law of the place where a contract is made. The matter, over the parties (plaintiff/petitioner and the
doctrine of lex loci contractus means the law of the place where a defendant/respondent), over the issues, and in cases involving
contract is executed or to be performed. It controls the nature, properties, over the res or the thing.
construction, and validity of the contract and it may pertain to the law
voluntarily agreed upon by the parties or the law intended by them 3. Principles in conflict of law like lex loci celebrationis, lex loci
either expressly or impliedly. Under the state of the most significant contractus, and state of the most significant relationship rule, which are
relationship rule, to ascertain what state law to apply to a dispute, the rules proper and applicable in the choice of law phase cannot be invoked
court should determine which state has the most substantial connection in questioning the jurisdiction of a court. They are not only misplaced
to the occurrence and the parties. This rule takes into account several grounds, but also premature.
contacts and evaluates them according to their relative importance with
respect to the particular issue to be resolved. References:
6. These three principles in conflict of laws has reference to the law A Review Notes in Conflict of Laws by Dean Honorato Y. Aquino
applicable to a controversy. They are proper for the second phase in
conflict resolution- the choice of law phase. These three principles Conflict of Laws by Galahad R. Pe Benito
determine which state’s law is to be applied in resolving the substantive
issues of a conflicts problem. Conflict of Laws Cases, Materials and Comments by Jorge R. Coquia and
7. Considering that the only issue involved in the case is that of Elizabeth Aguiling -Pangalangan
jurisdiction, the choice of law rules (lex loci celebrationis, lex loci
contractus, state of the most significant relationsip rule) are not only