Conflicts of laws

Ways of dealing with cases involving conflict of laws:

1. The court may refuse to hear the case and dismiss it; - pursuance
to the doctrine of Forum non-conveniens
2. The court may hear the case and decide based on its local laws;
and,
3. Special rules might be designed in order to promote the
smoothed operation of international and interstate systems and
to do justice to the parties.

CHOICE OF LAW
Seeks to answer - 1. What legal system should control a given situation where
some of the significant facts occurred in two or more states and 2. To what extent
should the chosen legal system regulate the situation. As a rule the choice of law is
between the Substantive Local law and Substantive foreign law but as a General
rule Philippine courts should follow substantive local law or the local that directs the
choice of applicable law because foreign law has no extraterritorial effect. The
rationale is that it is an admitted principle in International law that a nation
possesses and exercises within its territory an absolute and exclusive jurisdiction
and that any exception to this right must be traced to the consent of the nation.

Choice of law; Agreement by the Parties.

The choice of law by the parties that will govern their relationship and
liabilities as a rule are upheld by the courts because a basic policy in contracts is to
protect the expectation of the parties and such expectation is protected by giving
effect to the parties choice of applicable law. Thus, parties to a contract are free to
stipulate the applicable law whether foreign or local law that will govern their
dispute arising from the contract including the venue of action and such stipulations
will be upheld by the courts provided that it is not contrary to law, morals, good
customs, public order, and public policy.ART.1306. Provided further that the choice
of law must bear some relationship to the parties or their transaction otherwise the
chosen law is invalid. The choice of law and venue of action does not extend to
jurisdiction because under Philippine courts, Jurisdiction is fixed by the law and
cannot be vested by mere agreement of the parties.
Local law directs the choice of applicable law

Conflicts of laws is a problem between foreign and local or municipal law but
as a rule the courts should apply local or municipal laws.

Article 15. 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.
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)
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)
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)

Absence of agreement and or Local law directing the choice of applicable

law.
In the absence of agreement and or Local law directing the choice of
applicable law. The following principles are taken into consideration to determine
the applicable law :
1. Substance versus procedural distinction

2. Center of gravity, MSR, or Grouping of contacts;

3. Renvoi;

Substance versus procedural principle

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.
Governmental Interests - Is used in determining the proper prescriptive
period to apply in case of conflict between laws of different states, which
provides that the prescriptive period of the state which will be impaired most
by the failure to apply its statute should apply in a case.

Center of gravity doctrine

The Choice of law problems are resolved by the application of the law of the
jurisdiction which has the most significant relationship to the parties, the
transaction and the issues. The term is used synonymously with the MSR,
Grouping of contacts.
MSR; requisites:
1. The place where the injury occurred;
2. The place where the contact causing the injury occurred;
3. The domicile, residence, nationality, place of incorporation and
place of business of the parties; and,
4. The place where the relationship of the parties is centered.
Renvoi
Provides that the court where the case is filed, resorts to foreign law adopts
the rules of the foreign law which rule in turn refers back to the law of the forum.
Lex fori - law of the forum
Lex loci - law of jurisdiction

Philippine courts taking cognizance over the case involving conflicts of law

As a rule, parties to a contract may stipulate the applicable law and venue of
action and courts will upheld such stipulation provided it is not contrary to law,
morals, good customs, public policy and public order. However, Philippine courts
may still hear the case provided:
1. There is a reasonable basis for taking jurisdiction and exercising it;
2. Where the plaintiff and defendant are both residents thereof as to be more
convenient for the parties to litigate in the said forum; or
3. Where due to the reasonable reading of the agreement and the choice of
law does not preclude the filing of the action in the residence of the
plaintiff or the defendant(p.30) based on the concept that the state is
competent to take hold of any judicial matter it sees fit by making its
court and agencies assume jurisdiction over all kinds of cases brought
before them. Illustrative case: Hongkong and Shanghai banking Corp. v.
Sheman.

Foreign law given extraterritorial effect.

General rule is that foreign laws has no extraterritorial effect because that it
is an admitted principle in International law that a nation possesses and exercises
within its territory an absolute and exclusive jurisdiction and that any exception to
this right must be traced to the consent of the nation and the consent can either be
expressed or implied. In addition, foreign laws may be given extraterritorial effect if
the country adheres to borrowing statute which provides that the court of the forum
where the case is filed apply the foreign statute to the pending claims based on a
foreign law.

General rule. Foreign law has no extraterritorial effect.

Exceptions. Where there is consent either expressed or implied. Or where both
states are obligated under a treaty.

Consent;expressed.
Expressed consent to extraterritorial effect of a foreign law may be given
through a local law adopting a foreign law.
Consent;Implied Through the observance of the Doctrine of Comity
Characterization or Doctrine of qualification

Nationality of a person; his domicile; his residence; place of sojourn; or his

origin.
The seat of a juridical person, e.g. Corp.
The situs of a thing
The place where the act was done