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Ko Wai Me v. Galang
106 Phil 661 November 28, 1959
(21)
(22)
FACTS: This is an action to recover a tax paid in protest by Saura Import and
Export Co. Inc.
Saura Import and Export Inc bought from the Foreign Liquidation Commission,
a United States Government agency, jeeps, weapons carriers, and trucks, all of
which, at the time of purchase, were located in different United States Army
depots in the Philippines. Immediately thereafter, Saura had the purchases
delivered to it which in turn sold it to third persons in the Philippines.
LOWER COURT: Saura Import and Export Inc is an importer and levied on the
motor vehicles purchased the percentage tax as prescribed in Sections 185 and
186 of Commonwealth Act No. 466.
ISSUE: Whether or not Saura is an importer.
RATIO: Yes, Saura is an importer. The sales it made to third persons were
original sales taxable under the sections mentioned above.
At time of Sauras purchase, the United States Army in the Philippines was a
belligerent occupant, at least of army bases, army depots, and army
installations it was using for the prosecution of the existing war. By section 280
of the Rules of Land Warfare, belligerent occupation (in this case by the United
States Army) ceased only when "the occupant evacuated the district or was
driven out by the enemy, or by levee en massee, and the legitimate government
actually resumed its funtions."
By political relationship between the Philippines and between the United States
and by reason of war, the United States Government on that date enjoyed
jurisdictional rights over certain areas of the Philippine territory and over
military goods brought here and intended for the United States Army. While on
army bases of installations within Philippines those goods were, in
contemplation of law, on foreign soil. The result was that when Saura, after
acquiring title to such goods, brought them outside of those bases or depots,
there was importation in the ordinary sense.
LOWER COURT: The payment made by Ledesma is valid as per the Haw Pia
doctrine which absolved a pre-war debtor of the China Banking Corporation
who had paid his debt during the Japanese occupation with Japanese military
notes to the Bank of Taiwan, that had been designated by the Japanese Military
to liquidate the aforesaid bank, an enemy-owned institution established in
occupied territory.
ISSUE: Whether or not the payment is valid as the present controversy involved
different facts from the Haw Pia controversy as the the payment was not
delivered to the Bank of Taiwan, or any other bank.
SUPREME COURT: Yes, the payment made by Ledesma is valid. He is released
from all his liability to his former creditor, the Philippine Refining Corporation.
The CFI is correct in relying in the Haw Pia doctrine. Upon the strength of this
doctrine, the Court had also validated payments under similar circumstances in
HSBC v Samanillo.
petition in the Court of First Instance of Bulacan for the probate of a last will
and testament claimed to have been executed and signed in the Philippines on
November 1929 by the late Jose B. Suntay. This petition was denied because of
the loss of said will and of the insufficiency of the evidence to establish the loss
of the said will. An appeal was taken from said order denying the probate of the
will and this Court held the evidence before the probate court sufficient to prove
the loss of the will and remanded the case to the Court of First Instance of
Bulacan for the further proceedings.
Silvino Suntay, claiming that he had found among the files, records and
documents of his late father a will and testament in Chinese characters
executed and signed by the deceased on 4 January 1931 and that the same was
filed, recorded and probated in the Amoy district court, Province of Fookien,
China, filed a petition in the intestate proceedings praying for the probate of the
will executed in the Philippines or of the will executed in Amoy, Fookien, China.
Witnesses were presented to prove the existence of the will allegedly left by Jose
Suntay.
LOWER COURT: Dissallowed alleged will and testament executed in Manila on
November 1929, and the alleged last will and testament executed in Kulangsu,
Amoy, China, on 4 January 1931, by Jose B. Suntay.
ISSUE: Whether or not the wills allegedly left by Jose SUntay can be probated.
RATIO: Upheld decision of the Court of First Instance. Granting that there was
a will duly executed by Jose B. Suntay, and that it was in existence at the time
of, and note revoked before his death, the testimonies of the witnesses
presented fall falls short of the legal requirement that the provisions of the lost
will must be "clearly and distinctly proved by at least two credible witnesses."
Credible witnesses mean competent witnesses and those who testify to facts
from or upon hearsay are neither competent nor credible witnesses.
As to the will claimed to have been executed on 4 January 1931 in Amoy,
China, the law on the point in Rule 78. Section 1 of the rule provides:
Wills proved and allowed in a foreign country, according to the
laws of such country, may be allowed, filed, and recorded by the
proper Court of First Instance in the Philippines.
Section 2 provides:
When a copy of such will and the allowance thereof, duly
authenticated, is filed with a petition for allowance in the
agent designated in accordance with law for that purpose, or, if there be
no such agent, on the government official designated by law to that
effect, or on any of its officers or agents within the Philippines.
The above section provides for three modes of effecting services upon a private
corporation, namely: (1) by serving upon the agent designated in accordance
with law to accept service of summons; (2) if there be no special agent, by
serving on the government official designated by law to that effect; and (3) by
serving on any officer or agent within the Philippines. But, it should be noted,
in order that services may be effected in the manner above stated, said section
also requires that the foreign corporation be one which is doing business in the
Philippines. This is a sine qua non requirement. This fact must be first
established in order that summons can be made and jurisdiction acquired. This
is not only clear in the rule but is reflected in a recent decision of this Court.
We there said that "as long as foreign private corporation does or engages in
business in this jurisdiction, it should and will be amenable to process and the
jurisdiction of the local courts."
Petitioner is a corporation exclusively engaged in the business of carrying goods
and passengers by sea between the territory of Guam and the Trust Territories
of the Pacific Islands and for that purpose it was operating a fleet of vessels
plying between those ports or territories. Petitioner has no property or office in
the Philippines, nor is it licensed to do business in the Philippines. And the only
act it did here was to secure the services of Luceno Pelingon to act as cook and
chief steward in one of its vessels authorizing to that effect the Luzon
Stevedoring Co., Inc. a domestic corporation. Petitioner engaged the services of
Pelingon not as part of the operation of its business but merely to employ him
as member of the crew in one of its ships. That act apparently is an isolated
one, incidental, or casual, and "not of a character to indicate a purpose to
engage in business" within the meaning of the rule. The Commission has no
jurisdiction over the petitioner and, therefore, the present proceedings cannot
continue and should be dismissed.
Sycip, on the other hand, contends that the sales transaction was not covered
by the agency contract dated November 22 as the sales was agreed upon on
October 16 and that it was an independent and separate transaction for which
King Mau Wu had been duly compensated.
LOWER COURT: Rendered judgment in favor of King Mau Wu and denied both
the motion for reconsideration and new trial filed by Sycip. Sycip filed an
appeal, contending that the Court of First Instance of Manila has no
jurisdiction over the case as the agency contract was executed in New York.
ISSUE: Whether or not the Court of First Instance of Manila has jurisdiction.
RATIO: CFI has jurisdiction. A non-resident may sue a resident in the courts of
this country where the defendant may be summoned and his property leviable
upon execution in the case of a favorable, final, and executory judgment. It is a
personal action for the collection of a sum of money which the Courts of First
Instance have jurisdiction to try and decide. There is no conflict of laws involved
in the case, because it is only a question of enforcing an obligation created by or
arising from contract; and unless the enforcement of the contract be against
public policy of the forum, it must be enforced.
The plaintiff is entitled to collect P7,589.88 for commission and P50,000 for
one-half of the overprice, or a total of P57,589.88, lawful interests thereon from
the date of the filing of the complaint, and costs in both instances.
behind his wife and child, and on August 13, 1940, he filed an action for divorce
in the Circuit Court of Mobile County, Alabama, U.S.A., alleging as ground
abandonment by his wife. Having received a copy of the complaint, Salud filed
an answer alleging, among other things, that appellant was not a resident of
Mobile County, but of Naic, Cavite, Philippines, and that it was not true that the
cause of their separation was abandonment on her part but that appellant was
in the United States, without her, because he was then enlisted in the U.S.
Navy. Nevertheless, the Circuit Court of Mobile County rendered judgment
granting appellant a decree of divorce on April 9, 1941. After securing a divorce
Alfredo married Thelma Francis, an American citizen. The latter, however,
obtained a divorce from him for reasons not disclosed by the evidence. Alfredo
Javier returned to the Philippines armed with two decrees of divorce one
against his first wife Salud R. Arca and the other against him by his second wife
Thelma Francis. When returned to the Philippines and married Maria Odvina of
Naic, Cavite. At the instance of plaintiff Salud R. Arca an information for
bigamy was filed by the City Fiscal of Manila on July 25, 1950 against
defendant Alfredo Javier.
Lower Court Ruling: Alfredo was acquitted of the charge of Bigamy predicated
on the proposition that the marriage of defendant Alfredo Javier with the Maria
Odvina was made in all good faith and in the honest belief.
Issues:
1. Does this decree have a valid effect in this jurisdiction? NO
2. Whether Alfredo is guilty of bigamy YES
Ratio: This court has had already occasion to pass upon questions of similar
nature in a number of cases and its ruling has invariably been to deny validity
to the decree. In essence, it was held that one of the essential conditions for the
validity of a decree of divorce is that the court must have jurisdiction over the
subject matter and in order that this may be acquired, plaintiff must be
domiciled in good faith in the State in which it is granted (Cousins Hix vs.
Fluemer, 55 Phil., 851, 856).
It is true that Salud R. Arca filed an answer in the divorce case instituted at the
Mobile County in view of the summons served upon her in this jurisdiction, but
this action cannot be interpreted as placing her under the jurisdiction of the
court because its only purpose was to impugn the claim of appellant that his
domicile or legal residence at that time was Mobile County, and to show that the
ground of desertion imputed to her was baseless and false. Such answer should
be considered as a special appearance the purpose of which is to impugn the
jurisdiction of the court over the case.
In deciding the Canson case, this court did not overlook the other cases
previously decided on the matter, but precisely took good note of them. Among
the cases invoked are Ramirez vs. Gmur, 42 Phil. 855; Cousins Hix vs. Fluemer,
55 Phil., 851, and Barretto Gonzales vs. Gonzales, 58 Phil., 67.
In the cases just mentioned, this court laid down the following doctrines:
It is established by the great weight of authority that the court of a
country in which neither of the spouses is domiciled and to which one or
both of them may resort merely for the purpose of obtaining a divorce
has no jurisdiction to determine their matrimonial status; and a divorce
granted by such a court is not entitled to recognition elsewhere. (See
Note to Succession of Benton, 59 L. R. A., 143) The voluntary
appearance of the defendant before such a tribunal does not invest the
court with jurisdiction. (Andrews vs. Andrews, 188 U. S., 14; 47 L. ed.,
366.)
It follows that, to give a court jurisdiction on the ground of the plaintiff's
residence in the State or country of the judicial forum, his residence
must be bona fide. (14 Cyc. 817, 181.)" (Ramirez vs. Gmur, 82 Phil.,
855.)
But even if his residence had been taken up is good faith, and the court
had acquired jurisdiction to take cognizance of the divorce suit, the
decree issued in his favor is not binding upon the appellant; for the
matrimonial domicile of the spouses being the City of Manila, and no
new domicile having been acquired in West Virginia, the summons made
by publication, she not having entered an appearance in the case, either
personally or by counsel, did not confer jurisdiction upon said court over
her person. (Cousins Hix vs. Fluemer, 55 Phil., 851.)
At all times the matrimonial domicile of this couple has been within the
Philippine Islands and the residence acquired in the State of Nevada by
the husband for the purpose of securing a divorce was not a bona fide
residence and did not confer jurisdiction upon the court of the State to
dissolve the bonds of matrimony in which he had entered in 1919.
(Barretto Gonzales vs. Gonzales, 58 Phil., 67.)
In the
Mobile
simple
in the
Mobile
and merely rented a room where he used to stay during his occasional shore
leave for shift duty. That he never intended to live there permanently is shown
by the fact that after his marriage to Thelma Francis in 1941, he moved to New
York and after his divorce from Thelma in 1949 and his retirement from the U.S.
Navy, he returned to the Philippines and married Maria Odvina of Naic, Cavite,
where he lived ever since. It may therefore be said that appellant went to Mobile
County, not with the intention of permanently residing there, or of considering
that place as his permanent abode, but for the sole purpose of obtaining divorce
from his wife. Such residence is not sufficient to confer jurisdiction on the
court.
benefit of, the Mitsui Bussan Kaisha (hereinafter referred to as the "Mitsuis"), a
corporation organized in accordance with the laws of Japan, the true owner
thereof, with branch office in the Philippines; that on or before March, 1942,
Madrigal delivered the corresponding stock certificates, with his blank
indorsement thereon, to the Mitsuis, which kept said certificates, in the files of
its office in Manila, until the liberation of the latter by the American forces early
in 1945; that the Mitsuis had never sold, or otherwise disposed of, said shares
of stock; and that the stock certificates aforementioned must have been stolen
or looted, therefore, during the emergency resulting from said liberation.
Lower Court Ruling: Judgment was rendered in favor of the plaintiffs
Issue:
1. Whether plaintiffs had purchased the shares of stock in question.- NO
Ratio: It appears from the evidence presented that the only evidence on the
alleged sale of the shares of stock in question to the plaintiffs the main issue
in the case at bar is the testimony of Apolinario de los Santos, who now
claims to be the sole owner thereof.
Thus, the issue is based, and must stand or fall, therefore, upon the
uncorroborated testimony of plaintiff Apolinario de los Santos, and the credence
and weight that may be given thereto. Upon a review of the record, we find,
however, that said testimony is highly improbable and inherently weak.
The status of quasi-negotiability generally accorded to, and at present enjoyed
by, certificates of stock, under the Philippine law, is in itself a recognition of the
fact that the certificates are non-negotiable. Instead of sustaining appellees'
claim, section 5 of the uniform Stock Transfer Act, which "gives full negotiability
to certificates of stock," refutes said claim and confirms the non-negotiable
character of stock certificates in the absence of said Unifrom Act, for, obviously,
the same could not have given, negotiability to an instrument already
possessing this attribute prior thereto. Again, apart from being distinct from the
general Corporation Law, the aforementioned Uniform Act is not in force in the
Philippines. In this connection, it should be noted that this special piece of
legislation was adopted in some states of the union as early as the year 1910.
The failure of the Philippine government to incorporate its provisions in our
statute books, for a period of almost 45 years, is, to our mind, clear proof of the
unwillingness of our department to change the policy set forth in section 35 of
Act No. 1459. Needless to say, this fact negates our authority which is limited
to the interpretation of the law, and its application, with all its imperfections
to abandon what the dissenting opinion characterizes as the "civil law
Lower Court Ruling: Robert S. Hamill is not a peace officer of the Republic of
the Philippines and, therefore, is not authorized to file a complaint in
accordance with section 2, Rule 106 of the Rules of Court.
Issue:
2. Whether a Provost Marshal of Clark Field is a peace officer of the
Republic of the Philippines who is authorized to file a complaint for
violation of the Internal Revenue Code. YES.
Ratio: It is admitted that the Provost Marshal of Clark Field is a peace officer.
Provost Marshals in Army bases are police officers, and they have the powers
and duties of chiefs of police in municipalities.
Under the agreement between the Republic of the Philippines and the United
States of America, for the establishment of bases by the latter within the
territory of the former, laws of the Philippines continue to be in force in said
bases except when otherwise agreed upon in the agreement. And for the
purpose of hearing cases therein, justices of the peace are appointed and hold
office. They are not appointed by the United Stated of America, but by the
President of the Philippines, subject to confirmation by the Commission on
Appointments. But other than justices of the peace, no other officers of the
Republic of the Philippines are appointed in the bases, much less peace officers,
although agents of the Republic of the Philippines may have access in the bases
to see that the laws of the Philippines are enforced.
But the question of peace and order within the bases is left to peace officers of
the United States of America, the chief of whom is the provost marshal. To allow
peace officers of said Republic to go therein and make arrests or institute
prosecutions for violation of Philippine laws would certainly give occasion for
conflicts of authority. So no provision is made for the appointment of peace
officers of the Republic of the Philippines within the bases, and it is understood
that the enforcement of Philippines laws is left to the officers of the United
States of America.
It is illogical to deny to these peace officers (of the United States) the power to
prosecute violations of Philippine laws in the military bases. Since these bases
were established the Republic of the Philippines has abstained from appointing
peace officers of its own; this must have been with the understanding that the
execution of Philippine laws would be taken care of therein by the peace officers
of the United States of America. The absence of peace officers of the Republic of
the Philippines in these bases is due to the fact that the enforcement and
prosecution of offenses against Philippine laws was intended to be lodged with
the peace officers of the United States of America.
together with Alan W. Gorcey and Louis F. da Costa, Jr., any deficiency that may
remain unpaid after applying the proceeds of the sale of the said motor vehicles
which shall be undertaken upon the lapse of 90 days from the date this
decision becomes final, if by then Defendants Louis F. da Costa, Jr., and Alan
W. Gorcey had not paid the amount of the judgment debt.
Issue:
3. Whether an unregistered commercial co-partnership which has no
independent juridical personality can have a domicile so that a chattel
mortgage registered in that domicile would bind third persons who are
innocent purchasers for value YES
Ratio: While an unregistered commercial partnership has no juridical
personality, nevertheless, where two or more persons attempt to create a
partnership failing to comply with all the legal formalities, the law considers
them as partners and the association is a partnership in so far as it is a
favorable to third persons, by reason of the equitable principle of estoppel. In
Hung-Man Yoc vs. Kieng-Chiong-Seng, 6 Phil., 498, it was held that although it
has no legal standing, it is a partnership de facto and the general provisions of
the Code applicable to all partnerships apply to it.
ISSUE: Whether the losses suffered by CUS in 1945 were deductible, for income
tax purposes, in 1945, when the losses were physically sustained, or in 1950,
when CUS was advised by the Commission that no payments, other than those
made by the Commission in June and November 1950, would be made for said
losses.
RATIO: The determination of this question hinges on the interpretation and
construction of Sec. 30 of the NIRC, as implemented by Revenue Regulation No.
2. According to the law, the losses in question could only be charged off in the
income tax return for the year 1945, unless compensated for by insurance or
otherwise.
With regard to the question on whether the losses aforementioned were
compensated for by insurance in 1945, CUS relies upon Section 5(g) of an Act
of Congress of the United States of March 27, 1942 (Public Law 506). The
provision authorizes the Reconstruction Finance Corporation to empower the
War Damage Corporation to use its fund to provide, through insurance,
reinsurance or otherwise, reasonable protection against loss of, or damage to,
property which may result from enemy attack and that such protection shall
be made available upon payment of such premium or other charge as the
Commission may establish. In order to come under said provision, there must
be (1) insurance, reinsurance, or otherwise and (2) payment of such premium
or other charge as the War Damage Corporation may establish. Neither
requirement is present in the case at bar. Hence, CUS is not entitled to the
benefits of the Public Law 506.
CUS insists that its property were, in effect, covered by a special
statutory insurance, regardless of any legislation thereon, because: (1) on Dec.
13, 1941, the Federal Loan Agency of the U.S. announced that the
Rehabilitation Finance Corporation had created the War Damage Corporation to
provide protection against losses resulting from enemy attack which might be
sustained by owners of property in continental U.S.; (2) on Dec. 23, 1941, said
Agency further announced that the War Insurance Corporation would extend
the same protection to property owners in the Philippines; these
announcements were published in the Manila Day Bulletin and were
subsequently confirmed in radio broadcasts of the Voice of America; (4) Jesse
Jones, the Federal Loan Administrator of the U.S. declared that said
announcement was intended as insurance policy; and, (5) compliance
therewith, according to Senator Tydings, was a legal obligation on the part of
the U.S. CUS admits that losses sustained later than July 1, 1942, does not
cover losses or property damage which may result from enemy attack (including
any action taken by military, naval, or air forces of the U.S. in resisting enemy
attack).
CUS suffered its aforementioned losses in 1945, during the battle for the
liberation of the Philippines by the Allied, especially American Forces. Those
losses were not the result of enemy attack, or of action by the armed forced of
the U.S. in resisting enemy attack. The main enemy was Japan, and neither
Japan nor any of its associates, was attacking in the Philippines. It is clear
therefore that the losses of CUS do not come within the purview either of Public
Law 506 or of the announcements abovementioned, and are not compensated
for by insurance, as the term is used in the NIRC.
Whether the said losses could not be deducted in 1945, because they
were compensated for by insurance or otherwise, CUS invokes the Philippine
Rehabilitation Act of 1946 (Public Law 370). The law was approved, and became
effective, on April 30, 1946. In order to be entitled to defer deductions for losses
materially sustained within a given year, the right to compensation therefor, by
way of insurance or otherwise, if any, must exists, prior to the end of said year.
Consequently, the approval of the Philippine Rehabilitation Act of 1946 did not
constitute in 1945 a compensation by way or insurance and did not authorize
CUS herein to postpone, to another year, its claim for deduction arising from
the war losses in question.
It is also claimed that the acts and declarations of responsible officials
and organs of the U.S. Government before the end of 1945 were such as to
constitute conclusive assurance that property owners had reasonable
expectation that their war losses would be compensated for. Allegedly, this
reasonable expectation sufficed to place the losses of CUS, during 1945,
within the purview of the phrase compensated for otherwise than by
insurance under the NIRC. The contention is untenable. Otherwise in the
clause compensated for by insurance or otherwise should be construed to
refer to compensation due under a title analogous or similar to insurance.
Inasmuch as the latter is a contract establishing a legal obligation, it follows
that in order to be deemed compensation for otherwise, the losses
sustained by the taxpayer must be covered by a judicially enforceable right,
springing from any of the juridical sources of obligation: law, contract, quasicontract, torts, or crime.
It is not contended that indemnity was due to CUS by reason of tort,
crime, or quasi-contract. Upon the other hand, CUS, in 1945, no right to
indemnity springing from law, for the Philippine Rehabilitation Act was not
approved until April 1946. The press releases and announcements were merely
expressions of a policy of the Executive Department of the U.S. They did not
imply any intent to invest, in the owners of property damages or destroyed in
the Philippines during the war, a legal right to demand indemnity from the U.S.
Moreover, the payment of indemnity by the U.S. necessarily required an
appropriation of public funds which could be made only by an act of Congress
of the U.S., and, as regards war losses or damages sustained in the Philippines
later than July 1, 1942, no such appropriation law existed at the close of 1945
court
dismissed
the
complaint
without
for this country where he temporarily stays and makes his living, or of spirit of
regard, sympathy, and consideration for his Filipino customers as would prevent
him from taking advantage of their weakness and exploiting them. Another
objection to the alien retailer in this country is that he never really makes a
genuine contribution to national income and wealth since the gains and profits
he makes are not invested in industries that would help the countrys economy
and increase national wealth.
The above objectionable characteristics of the exercise of the retail trade
by the aliens, which are actual and real, furnish sufficient grounds for
legislative classification of retail traders into nationals and aliens. Some may
disagree with the wisdom of the legislature's classification. To this we answer,
that this is the prerogative of the law-making power. Since the Court finds that
the classification is actual, real and reasonable, and all persons of one class are
treated alike, and as it cannot be said that the classification is patently
unreasonable and unfounded, it is in duty bound to declare that the legislature
acted within its legitimate prerogative and it cannot declare that the act
transcends the limit of equal protection established by the Constitution.
2.
Due Process: Petitioners main argument is that retail is a common,
ordinary occupation, one of those privileges long ago recognized as essential to
the orderly pursuant of happiness by free men; that it is a gainful and honest
occupation and therefore beyond the power of the legislature to prohibit and
penalized. However, the real question at issue is whether the exclusion in the
future of aliens from the retail trade unreasonable, arbitrary, and capricious
taking into account the illegitimate and pernicious form and manner in which
the aliens have heretofore engaged therein? As thus correctly stated the answer
is clear. The law in question is deemed absolutely necessary to bring about the
desired legislative objective, i.e., to free national economy from alien control and
dominance. It is not necessarily unreasonable because it affects private rights
and privileges. The test of reasonableness of a law is the appropriateness or
adequacy under all circumstances of the means adopted to carry out its
purpose into effect. Judged by this test, the disputed legislation, which is not
merely reasonable but actually necessary, must be considered not to have
infringed the constitutional limitation of reasonableness.
3.
Alleged violation of international treaties and obligations: Another
subordinate argument against the validity of the law is the supposed violation
thereby of the Charter of the United Nations and of the Declaration of the
Human Rights adopted by the United Nations General Assembly. We find no
merit in the Nations Charter imposes no strict or legal obligations regarding the
rights and freedom of their subjects, and the Declaration of Human Rights
contains nothing more than a mere recommendation or a common standard of
achievement for all peoples and all nations. That such is the import of the
United Nations Charter aid of the Declaration of Human Rights can be inferred
the fact that members of the United Nations Organizations, such as Norway and
Denmark, prohibit foreigners from engaging in retail trade, and in most nations
of the world laws against foreigners engaged in domestic trade are adopted.
The Treaty of Amity between the Republic of the Philippines and the
Republic of China of April 18, 1947 is also claimed to be violated by the law in
question. All that the treaty guarantees is equality of treatment to the Chinese
nationals "upon the same terms as the nationals of any other country." But the
nationals of China are not discriminating against because nationals of all other
countries, except those of the United States, who are granted special rights by
the Constitution, are all prohibited from engaging in the retail trade. But even
supposing that the law infringes upon the said treaty, the treaty is always
subject to qualification or amendment by a subsequent law, and the same may
never curtail or restrict the scope of the police power of the State.
RATIO: On this issue of violating her bond which states, the undersigned, with
full knowledge that Ly Giok Ha, a temporary visitor whose authorized stay in
this country is limited only up to and including August 14, 1955, do hereby
undertake that said Ly Giok Ha will actually depart from the Philippines on or
before said date so specified, or within such period as in his discretion the
Commissioner of immigration or his authorized representative may properly
allow, asking for an extension did not violate the bond on four reasons: (a)
Competent authorities granted said requests; (b) the bond clearly indicates that
the Commissioner of Immigration, or his authorized representative, may
properly allow an extension; (c) The requests for extension involved in the case
at bar do not, in any manner whatever, run counter to any of the purposes
sought to be served by the bond in question; (d) Respondent Galang did not
regard said requests for extension as a breach of said undertaking
On the issue of whether her marriage to a Filipino justified or, at least, excused
the aforesaid failure of Ly Giok Ha to depart from the Philippines on or before
March 14, 1956, The pertinent part of section 15 of Commonwealth Act No.
473, upon which petitioners rely, reads, Any woman who is now or may
hereafter be married to a citizen of the Philippines, and who might herself be
lawfully naturalized shall be deemed a citizen of the Philippines. By reason of
such naturalization through marriage, section 40 (c) of Commonwealth Act No.
613 provides that "in the event of the naturalization as a Philippine citizen . . .
of the alien on whose behalf the bond deposit is given, the bond shall be
cancelled or the sum deposited shall be returned to the depositor or his legal
representative.
Considering, however, that neither in the administrative proceedings, nor in the
lower court, had the parties seemingly felt that there was an issue on whether
Ly Giok Ha may "be lawfully naturalized," and this being a case of first
impression in our courts, The SC is of the opinion that, in the interest of equity
and justice, the parties should be given an opportunity to introduce evidence, if
they have any, on said issue. The decision appealed from is hereby set aside and
let the records of this case be remanded to the lower court for further
proceedings
ISSUE: W/N the sale and distribution of bibles by the appellant is taxable. - No
RATIO: It may be true that in the case at bar the price asked for the bibles and
other religious pamphlets was in some instances a little bit higher than the
actual cost of the same but this cannot mean that appellant was engaged in the
business or occupation of selling said "merchandise" for profit. For this reason
the Court believe that the provisions of City of Manila Ordinance No. 2529, as
amended, cannot be applied to appellant, for in doing so it would impair its free
exercise and enjoyment of its religious profession and worship as well as its
rights of dissemination of religious beliefs.
With respect to Ordinance No. 3000, as amended, which requires the obtention
the Mayor's permit before any person can engage in any of the businesses,
trades or occupations enumerated therein, it does not find that it imposes any
charge upon the enjoyment of a right granted by the Constitution, nor tax the
exercise of religious practices.
The Court thus reverse the decision appealed from, sentencing defendant
return to plaintiff the sum of P5,891.45 unduly collected from it.
Commissioner that section 159 of the corporation Law relied upon by the
vendee was rendered operative by the aforementioned provisions of the
Constitution with respect to real estate, unless the precise condition set therein
that at least 60 per cent of its capital is owned by Filipino citizens be
present, and, therefore, ordered the Registered Deeds of Davao to deny
registration of the deed of sale in the absence of proof of compliance with such
condition.
Land Registration Commissioner Ruling: The vendee was not qualified to
acquire private lands in the Philippines in the absence of proof that at least 60
per centum of the capital, property, or assets of the Roman Catholic Apostolic
Administrator of Davao, Inc., was actually owned or controlled by Filipino
citizens.
ISSUE: W/N a corporation sole, irrespective of the citizenship of its incumbent,
is not prohibited or disqualified to acquire and hold real properties. Yes
ISSUE:
1. Whether or not the plaintiffs have have authorized anyone to file the
present case against the defendants No.
RATIO: The Supreme Court found that there was no error in the findings made
by the trial court. It appears that the plaintiffs are all citizens and residents of
Communist China and notwithstanding the fact that they have been informed
of the death of the deceased, they have not sent any communication to anyone
in the Philippines giving authority to take whatever action may be proper to
obtain an indemnity for his death.
The present action was initiated by plaintiffs represented merely by their
counsel and the question arose as to whether the latter had the proper
authority to represent the former in view of the fact that they are all residents of
a foreign country. While a lawyer is presumed to be properly authorized to
represent any cause in which he appears, he may however be required by the
court on motion of either party to produce his authority under which he
appears and counsel for the plaintiffs failed.
The appointment of Chua Pua Tam as guardian ad litem would not
suffice to meet the requirement of the rule which provides that every action
must be prosecuted in the name of the real party in interest. Again, it must be
shown that Chua Pua Tam was authorized by the heirs abroad to act as such in
behalf of the minors. But when in the course of the trial, it was found that he
never had any communication with any of the heirs and, much less, received
any authority from them the trial court acted accordingly in considering his
representation ineffective.
LEE SUAN AY, ALBERTO TAN, & LEE CHIAO V. EMILIO GALANG ET AL.,
G.R. No. L-1185, (12/13/59)
The facts in obtaining citizenship, all
disqualifications, must be proved before the court.
the
qualifications
and
FACTS: In 1954, Lee Suan Ay, a Chinese citizen, arrived in the Philippines and
was admitted and authorized to stay as a temporary visitor for period of three
months. This was extended until 25 March 1955. Before her arrival, her father
posted a cash bond amounting to P10,000 as guarantee for her compliance with
the terms and conditions of her stay in the Philippines. On 18 March 1955,
Alberto Tan, a Filipino, and Lee Suan Ay requested the Justice of the Peace of
Las Pias, Rizal, to join them in marriage. He refused to do so as she had to
obtain parental advice, being less than 23 years old.
On 28 March 1955, the bondsman wrote a letter informing the
Commissioner of Immigration that his daughter was ill and confined at the
Chinese General Hospital since 21 March 1955 and that as she might collapse
during the return trip to Hongkong, she deferred her departure set for 23
March, and requesting that she be granted ten days extension of her authorized
period of temporary stay in the Philippines to enable her to rest and recuperate.
On 1 April 1955, Lee Suan Ay and Alberto Tan were joined in marriage by the
Justice of the Peace of Las Pias. After their marriage, they received a letter
from the Commissioner of Immigration denying their petition for extension of
her temporary stay in the Philippines and declaring the cash bond forfeited in
favor of the Government. Her father asked for reconsideration on the ground
that having married a Filipino citizen, Le Suan Ay follows the Citizenship of her
husband and ceased to be an alien temporary visitor, and that reason the cash
bond filed should be returned to him; and that her failure to present herself to
the Commissioner of Immigration within 24 hours from receipt of notice was
due to illness and loss of weight. Thus, this case was filed.
Lower Court Ruling: The Court dismissed the plaintiffs' complaint but left the
reduction of the bond to the sound discretion of the Commissioner of
Immigration.
ISSUE:
Whether or not the P10,000 bond originally filed should be returned
No.
RATIO: The fact that Lee Suan Ay was married to a Filipino citizen does not
relieve the bondsman from his liability on the bond. The marriage took place
on 1 April 1955, and the violations of the terms and conditions of the
undertaking in the bond failure to depart from the Philippines upon
expiration of her authorized period of temporary stay in the Philippines (25
March 1955) and failure to report to the Commissioner of Immigration within
24 hours from receipt of notice were committed before the marriage.
Moreover, for a valid citizenship acquired by marriage, it must be shown that
she possesses the qualifications required by law to become a Filipino citizen by
naturalization. There is no showing that Lee Suan Ay possesses all the
The first question refers to the share that the wife of the testator,
Magdalena C. Bohanan, should be entitled to received. The will has not given
her any share in the estate left by the testator. It is argued that it was error for
the trial court to have recognized the Reno divorce secured by the testator from
his Filipino wife Magdalena C. Bohanan, and that said divorce should be
declared a nullity in this jurisdiction. The court below refused to recognize the
claim of the widow on the ground that the laws of Nevada, of which the
deceased was a citizen, allow him to dispose of all of his properties without
requiring him to leave any portion of his estate to his wife.
Besides, the right of the former wife of the testator, Magdalena C.
Bohanan, to a share in the testator's estafa had already been passed upon
adversely against her in an order dated June 19, 1955 which had become final,
as Magdalena C. Bohanan does not appear to have appealed therefrom to
question its validity.
Moreover, the court below had found that the testator and Magdalena C.
Bohanan were married on January 30, 1909, and that divorce was granted to
him on May 20, 1922; that sometime in 1925, Magdalena C. Bohanan married
Carl Aaron and this marriage was subsisting at the time of the death of the
testator. Since no right to share in the inheritance in favor of a divorced wife
exists in the State of Nevada and since the court below had already found that
there was no conjugal property between the testator and Magdalena C.
Bohanan, the latter can now have no longer claim to pay portion of the estate
left by the testator.
The most important issue is the claim of the testator's children, Edward
and Mary Lydia, who had received legacies in the amount of P6,000 each only,
and, therefore, have not been given their shares in the estate which, in
accordance with the laws of the forum, should be two-thirds of the estate left by
the testator. The old Civil Code, which is applicable to this case because the
testator died in 1944, expressly provides that successional rights to personal
property are to be earned by the national law of the person whose succession is
in question. In the proceedings for the probate of the will, it was found out and
it was decided that the testator was a citizen of the State of Nevada because he
had selected this as his domicile and his permanent residence.
So the question at issue is whether the testamentary dispositions,
especially those for the children which are short of the legitime given them by
the Civil Code of the Philippines, are valid. As in accordance with Article 10 of
the old Civil Code, the validity of testamentary dispositions are to be governed
by the national law of the testator, and as it has been decided that the national
law of the testator is that of the State of Nevada, which allows a testator to
dispose of all his property according to his will, as in the case at bar, the order
of the court approving the project of partition made in accordance with the
testamentary provisions, must be affirmed.
ISSUE:
1. Whether or not the complaint was a suit against the Government of the
United States Yes, but there was consent.
2. Whether or not damages must be paid No, the consent of the United
States was limited to filing of suit and does not extend to the payment of
damages.
RATIO: The order of dismissal cannot be sustained in its entirety. Although the
action is in substance against the United States, the immunity of the state from
suit, cannot be invoked where the action is instituted by a person who is neither
an enemy or ally of an enemy for the purpose of establishing his right, title or
interest in vested property, and of recovering his ownership and possession. The
consent to such suit has expressly been given by the United States in Sec. 3 of
the Philippine Property Act of 1946.
Turning to the claim of damages, the order of dismissal must be upheld.
The relief available to a person claiming enemy property which has been vested
by the Philippines Alien Property Custodian is limited to those expressly
provided for in the Trading with the Enemy Act, which does not include a suit
for damages for the use of such vested property..
With respect to the recovery or return of the properties vested, section 33
of the Trading with the Enemy Act provides a prescriptive period: the claim
should not be filed later than April 30, 1949, or within two years from the date
of vesting, whichever is later. In computing the two years, however, the period
during which there was pending a suit or claim for the return of the said
property shall be excluded.
Here, insofar as lots 3 and 4 of the land in dispute are concerned, vesting
occurred on July 6, 1948 and consequently the two-year period within which to
file the action for their recovery expired on July 7, 1950. But in computing that
the two-year period, the time during which plaintiff's claim with the Philippine
Alien Property Administration was pending from November 16, 1948 when
the claim was filed to March 7, 1950 when it was dissallowed should be
excluded. The complaint thereof filed on November 13, 1950 is well within the
prescribed period.
On the other hand, lots 1 and 2 were vested by the Alien Property
Custodian on March 14, 1946. The two-year period, therefore, within which to
file a suit for their return expired on March 14, 1948.
Plaintiff contends that section 33 of the Trading with the Enemy Act
cannot prevail over section 40 of the Code of Civil Procedure, which provides
that an action to recover real property prescribes after 10 years, on the theory
that under international law questions relating to real property are governed by
the law of the place where the property is located and that prescription, being
remedial, is likewise governed by the laws of the forum. But the trading with the
Enemy Act, by consent of the Philippine Government, continued to be in force in
the Philippines even after July 4, 1946 and consequently, is as much part of the
law of the land as section 40 of the Code of Civil Procedure.
Thus, the order appealed from insofar as it dismisses the complaint with
respect to Lots 1 and 2 and the claim for damages against the Attorney General
of the United States and the Republic of the Philippines, is affirmed, but
revoked insofar as it dismisses the complaint with respect to Lots 3 and 4, as to
which the case is hereby remanded to the court below for further proceedings.