Article 16. 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. (10a) a. Conflict rules on Property (Lex Rei Sitae) Whether real or personal property is governed by the law of the place where the property is located.(Art 6 par. 1) Intestate and testamentary successions shall be regulated by the national law of the deceased.

b.

Application of the Doctrine of Lex Rei Sitae a. Shares of stock of a foreigner, even if personal property can be taxed in the Philippines so long as the property is in the Philippines (Wells Fargo Bank v. Collector of Internal Revenue) b. Taxes may be imposed on the dividends from shares in a gas corporation situated in the Philippines even if the stockholder do not reside here (Manila Gas Corp v. Col) CIR v. Anglo California National Bank Facts: The sales of shares of the capital stock of Pampanga Sugar Mills was negotiated, perfected and consummated in San Francisco, California. Issue: May our government may impose tax on that sale? Held: No, since all factors (Negotiations, perfection and consummation) took place in California, said place is deemed to be the source of the capital gain. Therefore, this is income derived from abroad. Under our present laws, only corporate income maybe derived from Philippine sources may be taxed in our country. Exception of the Lex Situs rule: IN cases of successional rights, which shall be governed by the national law of the deceased (Art 16 par 2) a. Order of succession b. Amount of successional rights c. Intrinsic validity of the provisions of a will. d. Capacity to succeed. Example to that exeption: Miciano v. Brimo 50 phil 867 Facts: Alien testator who made his will in the Philippines state in the will that his property should be distributed in accordance with the Philippine law and not of his nation. Issue: Is the provision valid? Ruling: No for Turkish law should govern the disposition of his property. This is clear under art 16. The Renvoi Problem:

Renvoi literally means referring back, incases of successional rights where the Philippine law clearly mandates that the national law of the deceased shall govern in the disposition of his property, while the deceased national law refers back to the Philippines the disposition of the said properties due to reason that the said nationality of the deceased follows the domiciliary theory an not nationality. Domiciliary means succession shall be based on the residence of the deceased. Nationalitysimply means succession shall be governed by the National Law of the deceased. Article 17. 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. (11a) The first par of the Art lays down the rule: Lex Loci Celebrationes in so far as extrinsic validity (Forms and Solemnities) are concerned, thus, a contract entered into by a Filipino in Japan will be governed by a Japanese law insofar as form and solemnities of the contract is concerned. However, formalities for the acquisition encumbering alienation or acquisition due to change is ownership (whether real or personal) be governed not by Lex Loci Celebrationes but of Lex Rei Sitae under art 16. Any act done abroad while within the consular and diplomatic officials shall be governed by the Philippine law, due to the principle of exterritorialitythe theory where believing on the fact that such offices and places though situated in the other state, is still an extension of our territory. Respecting Prohibitive Lawthough legal in the eyes of the foreign law, when illegal in the Philippines, then it would remain illegal and will not be honored in this country. Ex: A contract of prostitution, though valid in other states, cannot be given effect in the Philippines for such is prohibited. Intrinsic Validity of Contract: though no mention in this art, the prevailing rule under Private International LAW are: Lex Loci Voluntatisthe law of the place voluntarily selected Lex Loci intentionisthe law of the place intended by the parties to the contact Article 18. In matters which are governed by the Code of Commerce and special laws, their deficiency shall be supplied by the provisions of this Code. (16a) In case of conflict, the special law prevails over Civil Code, which is general in nature (Leyte A and M. Oil Co. v. Block, 52 phil 429) CHAPTER 2 Human Relations (n)

Article 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith. Respect of everyones right. Stress of the Article: a. Acting with justice; b. The giving to everyone his due; c. The observance of honesty and good faith. Albetz investment, inc. v . CA L-32570 Feb 28 1977 Having won a case with final judgment, the winning party, in having judgment executed did not give the occupants of a house (sought to be demolished) sufficient time to remove their personal belongings. Are the said occupants entitled to damages? Since no reasonable time was given, and belongings were damaged, the demolition of the house may be said to have been carried out in a manner not consistent with justice and faith, as required by art 19 of the civil code, hence damages may be awarded in view of this abuse of right.

equitable consideration but if there is no enforceable legal duty, the action must fail although the disadvantage party derseves commiseration or sympathy. Article 20. Every person who, contrary to law, willfully or negligently causes damage to another, shall indemnify the latter for the same. a. Willful or negligent acts: a. Whoever by act or omission causes damaged to another, there being fault or negligence, is obliged to pay for the damaged done (art 2176 of the Civil code) Negligenceis defined as the failure to observe for the protection of the interest of another person that degree of care, precaution and vigilance which the circumstances greatly demand, whereby such other person suffers injury. When no action for damages would prosper when someone does not necessarily have the right to be indemnified. Same as in the instance of failing to win in the contest, such defeat do not warrant the contestant to file civil action, unless the one won the contest and did not receive the award, the winning contestant in such case may file civil suit. When Judiciary can interfere in the decisions of Religious Tribunalsthe supreme court through Justice Felix Bautista held that the expulsion of a member of the Filipino Independent Church who had not been given any notice or opportunity to be heard is not conclusive upon civil courts when a property right is involved.

Meralco v. CA. et al L-39019, Jan 22, 1988 Because of the respondents failure to pay his electric bills, meralco cut his electric supply without prior notice. Held: meralco is liable for damages under art 19 of the civil code. The law requires at least a 48hour notice before electric supply service of disconnection is made to a delinquent customer. Failure to provide said prior written notice amounts to tort. Acting with justice: a. Art.20indemnification of another due to illegal acts. b. Art 21indemnification due to immoral acts. c. Art 24unfair competition d. Art 22 unjust enrichment Observance of honesty and good faith a. Art 26respect for the personality and dignity of others b. Art 25restraint of undue extravagance c. Art 31independent civil action Honestycareful regard for others rights and property Good Faithhonest intention to avoid taking undue advantage of another (cui v. Henson, 51 phil 612) Vda de Oribiana v. atty. Gerio, Feb 28, 1979 The Client of the lawyer had no money to pay for the printing of the brief. So the lawyer did not file one. Is the lawyer administratively liable? Yes, for he could have filed a mimeographed or typewritten brief, or he could have informed the court of his difficulty in preparing the brief. Law and Equity Esconde v. Barlongay July 331, 1987 Justice is done according to law. As a rule, equity follows the law. There may be moral obligation, often regarded as an

Article 21. Any person who willfully causes loss or injury to another in manner that is contrary to morals, good customs or public policy shall compensate the latter for the damage. Emphasis on WILFULLY CAUSES INJURY CONTRARY TO MORAL, GOOD CUSTOMs OR PUBLIC POLICY Art 21 Art 20 The act is contrary to good The act is contrary to law morals, good customs, or public policy. The act is done neither The act is done willfully. willfully or negligently. Willfully means not merely voluntary but with a bad purpose (US v. Ah Chong, 15 Phil 488) Buag, Jr v. CA July 10 1992 The acts of the petitioner in forcibly abducting private respondent and having carnal knowledge with her against her will, and thereafter promising to marry her in order to escape criminal liability, only to thereafter renege on such promise after cohabiting with her for 21 days, irremissibly constitute acts contrary to morals and good customs. These are grossly insensate and reprehensible transgression which indisputably warrant and abundantly justify the award of moral and exemplary damages pursuant to art 21 in

relation to paragraphs 2 and 10 of art 2219, arts 2229 and 2234 of this code. EX: a. A student willfully humiliates a professor, causing her to have nervous breakdown. This would be contrary to good customs and moral, and the professor can sue for damages. b. A seduces a 19 year old daughter of x, As promise of marriage either has not been made or cannot be proved. The girl becomes pregnant. Under the present criminal laws, there is no crime as the girl is above 18 years of age. Neither can civil action for breach of promise be filed. Under art 21, she and her parents would have the right to bring an action for damages. a. Such example is correct however, it must be provided that in some way defrauded or deceived the girl, not necessarily seducing. The aggrieved party may file petition, unless otherwise both parties are at fault, then there could be no recovery of damages. Can there be action for breach of Promise to Marry? Yes, there can be action for Breach of Promise to Marry. Under this article which so provide action in violation of good morals and customs and public policy; however it shall be confined on the actual damages, Such as the money given and other expenses can be recovered when the fulfillment of the promise is of no chance. (Domalagan v. Bolifer, 33 phil 471) In Hermosisima v. CA sept 30 1960, the court held that under the Civil Code there can be no recovery of moral damages for a breach of the promise to marry, otherwise many innocent men may become victims of designing and unscrupulous females, unless otherwise seduction exist as defined in art 337 and 338 in the rpc, moral damages can be recovered under art 2219 par 3 of this code. Article 22. Every person who through an act of performance by another, or any other means, acquires or comes into possession of something at the expense of the latter without just or legal ground, shall return the same to him. No person should unjustly enrich himself at the expense of another. Baje and Sacdalan v. CA et al L-18783 may 25 1964 A contract for the sale of land was declared null and void after the buyer recover the price paid form successor-ininterest of the seller? Yes, because if said successor could recover the land without being required to reimburse the buyer, they would be enriching themselves unjustly at the expense of the buyer. Essential Requisite of an accion in rem verso: a. One party must be enriched and the other made poorer. b. There must be a causal relation between the two. c. The enrichment must not be justifiable (so if the law itself allows the enrichment, or if the

d. e.

enrichment results from a contract or from the impoverished persons own negligence, there can be no recovery) There must be no other way to recover The indemnity cannot exceed the loss or enrichment, whichever is less.

Article 23. Even when an act or event causing damage to another's property was not due to the fault or negligence of the defendant, the latter shall be liable for indemnity if through the act or event he was benefited. Though a act or event where damages was caused to another person whereby from such loss one has benefited, the latter shall pay the liability of the said. EX: A without knowledge, a flood drives his cattle to the cultivated highland of B. As cattle was saved, but Bs crops are destroyed. True, A was not at fault, but he benefited, it is but right and equitable that he should indemnify B. Article 24. In all contractual, property or other relations, when one of the parties is at a disadvantage on account of his moral dependence, ignorance, indigence, mental weakness, tender age or other handicap, the courts must be vigilant for his protection. The law takes great interest in the welfare of the weak and the handicapped. Thus we have parens patriae. The state as parens patriae is under obligation to minimize the risk to those who because of their minority, are as yet unable to take care of themselves fully (People v. Baylon, L-35785, may 29 1974) Vigilant for his protectionsmeans that in case of doubts the doubt must resolved in favor of the underdog. Thus in labor contracts, doubts are resolved in favor of the decent living and safety of the worker (art 1702 of this code) The right to fire employees must not be abused. (PLDT v PLDT workers Union) PLDT v PLDT workers UNION et al. 48 OG 2676 When L, a blind man was hired, his employees knew of his physical defect. For many years he did his work efficiently. Later, the company dismissed him on the account of his blindness, as recommended by the company physician alleging it was dangerous for him to work (In streets) because he might be struck down by passing vehicles. Was the dismissal proper? No. while an employer can ordinarily choose and fire employees without interference, this right should not be abused ro exercised capriciously with reference to a worker who has worked faithfully and satisfactorily with a defect visible and known; for otherwise in future similar cases the exercise of such right might be abuse and used as disguise for dismissing and employee for union adherence. But casual worker does not enjoy the benefits of the WCL. Article 25. Thoughtless extravagance in expenses for pleasure or display during a period of acute public want or emergency may be stopped by order of the courts at the instance of any government or private charitable institution. Thoughtless extravagance during emergencies may incite the passion of those who cannot afford to spend. Article 26. Every person shall respect the dignity, personality, privacy and peace of mind of his neighbors and

other persons. The following and similar acts, though they unjust, oppressive or highhanded method shall give rise to a may not constitute a criminal offense, shall produce a cause right of action by the person who thereby suffers damage. This art speaks of unfair competition in: of action for damages, prevention and other relief: a. Agricultural enterprise (1) Prying into the privacy of another's b. Commercial enterprise residence; c. Industrial enterprise (2) Meddling with or disturbing the private life d. Laborthus the following acts, among other are or family relations of another; not allowed. (3) Intriguing to cause another to be alienated from his friends; A strike prematurely declared (Insular (4) Vexing or humiliating another on account Sugar Ref. Corp v. CIR) of his religious beliefs, lowly station in life, A strike for trivial, unjust or unreasonable place of birth, physical defect, or other cause(Marine Dpt Union v Luzon personal condition. Stevedoring Co) This article enhances human dignity and personality. Social A strike carried out thru force, equality is not sought, but due regard for decency and propriety intimidation or other unlawful means (Report of the Code Commission, pp33-34) (Luzon Marine Dpt. Union v. Luzon Remedies: Stevedoring Co) a. An action for damages; A strike in order to circumvent valid b. And action or prevention; obligations entered into a collective c. Any other relief; bargaining contract.(Manila Oriental Scope: Sawmill co. v. Natl Labor Union et al.) a. Prying into the privacy of anothers residence includes Cut throat competition (where one is by implication respect for anothers name, picture or ready to lose If only to drive somebody personality. else out of business) (Tuttle v. Black) b. Meddling with or disturbing the private life of family The making of any false statement in the relations of anotherincludes alienation of the course of trade to discredit the goods, affection of the husband or the wife thus a girl who business or services of another. makes love to a married man, even if there be no carnal The making of goods so as to deceive relations, disturb his family life, and damages my purchasers. therefore be asked before herintriguing agianst anothers honor is also included. c. Intriguing to cause another to be alienated from his friendsincludes gossiping and reliance on hearsay. d. Vxing or humiliatingincludes criticisms of ones Article 29. When the accused in a criminal prosecution is acquitted health or features without justifiable legal cause. on the ground that his guilt has not been proved beyond reasonable doubt, a civil action for damages for the same act or omission may be instituted. Such Article 27. Any person suffering material or moral action requires only a preponderance of evidence. Upon motion of the loss because a public servant or employee refuses or neglects, defendant, the court may require the plaintiff to file a bond to answer for without just cause, to perform his official duty may file an damages in case the complaint should be found to be malicious. action for damages and other relief against the latter, If in a criminal case the judgment of acquittal is without prejudice to any disciplinary administrative action based upon reasonable doubt, the court shall so declare. In that may be taken. the absence of any declaration to that effect, it may be inferred from the text of the decision whether or not the This article refers to public servant and or public acquittal is due to that ground. employee. Taken from art 839 of the German Civil Code, the Even if the accused of a crime has been acquitted purpose of this article is to end the bribery system. because of his guilt not proven beyond reasonable doubt, the a. Pabagsakthe gift given so that an illegal thing offended party can still constitute civil action for the damages of may be done. the same act, and this time, mere preponderance of evidence is b. Pampadulasthe gift given to facilitate or expedite sufficient. The two liabilities are separate and distinct with one the doing of the legal thing. another, criminal aspect affects social order, and the civil for c. Pampasalamatthe gift given in appreciation of a private rights. thing already done. Ex. A goes to a government office where B, and administrative Article 30. When a separate civil action is brought to clerk, instead of attending to A, just reads the newspaper. If A demand civil liability arising from a criminal offense, and no suffers material or moral loss, B will be liable. Also, if B refuses criminal proceedings are instituted during the pendency of to perform his duty unless given a bribe, damages may be asked the civil case, a preponderance of evidence shall likewise be of him in addition of the proper criminal and administrative sufficient to prove the act complained of. liabilities. Very simple, when a criminal act done is not the subject Article 28. Unfair competition in agricultural, commercial or industrial enterprises or in labor through the use of force, intimidation, deceit, machination or any other of the suit, but the civil liability of the criminal act, then the court, unless the prosecutor institute a criminal proceeding which would cause the pendency of the civil case at the mean time, then proceed to the continuance of the said case, with the

mere preponderance of evidence shall be sufficient to enable the aggrieved party to recover his loss. Article 31. When the civil action is based on an obligation not arising from the act or omission complained of as a felony, such civil action may proceed independently of the criminal proceedings and regardless of the result of the latter. Independent civil actionis one that is brought distinctly and separately from a criminal case. Republic v. Bello GR 34906, Jan 27 1983 Even if an accused in a criminal case is acquitted of the crime of malversation of because of the failure of the prosecution to prove the criminal intent and the failure to establish the guilt beyond reasonable doubt, the government may still file a civil action to recover the government funds disbursed by him without prior authority. Article 32. Any public officer or employee, or any private individual, who directly or indirectly obstructs, defeats, violates or in any manner impedes or impairs any of the following rights and liberties of another person shall be liable to the latter for damages: a. Freedom of religion; b. Freedom of speech; c. Freedom to write for the press or to maintain a periodical publication; d. Freedom from arbitrary or illegal detention; e. Freedom of suffrage; f. The right against deprivation of property without due process of law; g. The right to a just compensation when private property is taken for public use; h. The right to the equal protection of the laws; i. The right to be secure in one's person, house, papers, and effects against unreasonable searches and seizures; j. The liberty of abode and of changing the same; k. The privacy of communication and correspondence; l. The right to become a member of associations or societies for purposes not contrary to law; m. The right to take part in a peaceable assembly to petition the Government for redress of grievances; n. The right to be a free from involuntary servitude in any form; o. The right of the accused against excessive bail; p. The right of the accused to be heard by himself and counsel, to be informed of the nature and cause of the accusation against

him, to have a speedy and public trial, to meet the witnesses face to face, and to have compulsory process to secure the attendance of witness in his behalf; q. Freedom from being compelled to be a witness against one's self, or from being forced to confess guilt, or from being induced by a promise of immunity or reward to make such confession, except when the person confessing becomes a State witness; r. Freedom from excessive fines, or cruel and unusual punishment, unless the same is imposed or inflicted in accordance with a statute which has not been judicially declared unconstitutional; and s. Freedom of access to the courts. In any of the cases referred to in this article, whether or not the defendant's act or omission constitutes a criminal offense, the aggrieved party has a right to commence an entirely separate and distinct civil action for damages, and for other relief. Such civil action shall proceed independently of any criminal prosecution (if the latter be instituted), and may be proved by a preponderance of evidence. The indemnity shall include moral damages. Exemplary damages may also be adjudicated. The responsibility herein set forth is not demandable from a judge unless his act or omission constitutes a violation of the Penal Code or other penal statute. This article adheres to the implementation of the civil liberties guaranteed by the constitution. Jose Rizal College v. National Labor Relations Commission Dec 1 1987 Primary requirements of due process in administrative hearings; a. Right to a hearing which includes the right to present ones case and submit evidence to support thereof; b. The tribunal must consider the evidence presented; c. The evidence must have something to support itself; d. The evidence must be substantial, which means such evidence as a reasonable mind must accept as adequate to support a conclusion; e. The decision must be based on the evidence presented at the hearing; f. The tribunal or any of its judges must act on its own independent consideration of the law and fact of the controversy; g. The board or body should in all controversial question, render its decision in such a manner that the parties to the proceedings can know the various issues involved, and the reason for the decision rendered. Scope: a. Any public officer or employee.

Any private individual even if he be in good faith; the purpose of this article is to eliminate the defense of good faith otherwise the reason for this article would be lost. c. Judges are not liable unless the act or omission is a crime. This is because in the case of a crime, it is well known that a person criminally liable is also civilly liable (art 100 of rpc), while in the sense of logic, they are not exempt from liabilities under art 27 of this code. Serrano v Munoz Motors Inc L-25547 November 27 1967 On the assumption that a public service commissioner commits an act in violation of civil liberties under this article, can he as such be liable? No, for he is here in the same category as a judge. Now then, if such judge, he is charged with a Crime (such as rendering knowingly an unjust judgment). This will be the time when his civil liability can arise. It should be noted that this art punishes not only direct and indirect violations of the constitutional liberties, but also their impairment --par1 of this art.. Reasons for the creation of an Independent Civil Action Under Art. 32. a. Sometimes the fiscal is afraid to prosecute fellow public officials, and the citizen may be left without redress b. Even when the fiscal files a criminal case, still the said case requires proof of guilt beyond reasonable doubt, a requirement much harder to comply with than mere preponderance of evidence. c. There are many unconstitutional acts which are not yet made crimes. The remedy for this is clearly a civil action. Article 33. In cases of defamation, fraud, and physical injuries a civil action for damages, entirely separate and distinct from the criminal action, may be brought by the injured party. Such civil action shall proceed independently of the criminal prosecution, and shall require only a preponderance of evidence. a. Defamation (or libel or slander or intrigue against honor) b. Fraud (or estafa or swindling) c. Physical injuries, including consummated, frustrated and attempted homicide, murder, parricide and infanticide so long as there was physical injury. Article 34. When a member of a city or municipal police force refuses or fails to render aid or protection to any person in case of danger to life or property, such peace officer shall be primarily liable for damages, and the city or municipality shall be subsidiarily responsible therefor. The civil action herein recognized shall be independent of any criminal proceedings, and a preponderance of evidence shall suffice to support such action. Article 35. When a person, claiming to be injured by a criminal offense, charges another with the same, for which no independent civil action is granted in this Code or any special law, but the justice of the peace finds no reasonable grounds to believe that a crime has been committed, or the prosecuting attorney refuses or fails to institute criminal proceedings, the complaint may bring a civil action for damages against the alleged offender. Such civil action may be supported by a preponderance of evidence. Upon the defendant's motion, the court may require the plaintiff to file

b.

a bond to indemnify the defendant in case the complaint should be found to be malicious. If during the pendency of the civil action, an information should be presented by the prosecuting attorney, the civil action shall be suspended until the termination of the criminal proceedings. Article 36. Pre-judicial questions, which must be decided before any criminal prosecution may be instituted or may proceed, shall be governed by rules of court which the Supreme Court shall promulgate and which shall not be in conflict with the provisions of this Code.