PERSONS AND FAMILY RELATIONS  These employees were represented by their union, PVB
Professor: Atty. Randi Torregosa employees union. They filed a complaint before the liquidation
Reviewer by: Tanya Ibanez
Primary Sources of Civil Law
1. Civil Code
2. Family Code – A relatively recent legislative enactment which
deals specifically with the law on marriage. The controlling law
on marriage.
CHAPTER I
EFFECT AND APPLICATION OF LAWS
ARTICLE 1
This Act shall be known as the Civil Code of the Philippines
ARTICLE 2
Laws shall take effect after 15 days following the completion of
their publication in the OG, unless it is otherwise provided.
(Executive Order 200 – provides for the publication of laws either in
the OG or in a newspaper of general circulation)
Two views on the clause “unless otherwise provided”
1. Requirement of publication
2. Period of publication
Two schools of thought:
(1) The clause “unless otherwise provided” refers to the
date of effectivity and NOT to the requirement of publication,
which means that the legislature may in its discretion provide
that the usual 15-day period shall be shortened or extended
but in no way can publication be dispensable.
In the absence of a specific period, Art 2 provides that it
shall take effect after 15 days following the completion of the
publication. The requirement of publication should always be
complied with.
(2) The clause “unless otherwise provided” refers to the
requirement of publication and NOT to the date of
effectivity. It says that publication can be dispensed with, if
the lawmaking body in its discretion chooses to dispense the
requirement of publication, then that law may be a valid law.
While the general rule is “laws shall take effect after 15 days
after its complete publication, publication may be dispensed
with at the discretion of the lawmaking body. In other words,
publication is a dispensable requirement.
Which view is the controlling doctrine?
Tanada v. Tuvera 1986
 A case filed by a group of militant of lawyers (MABINI – Movement
of Attorneys for Brotherhood, Integrity and Nationalism, Inc.)
headed by Senator Lorenzo Tanada, a prominent lawyer during his
time.
 Tanada and his group went to the court to compel the executive
department to disclose or publish certain Presidential issuances by
Pres. Marcos.
 They argued that the due process clause of the constitution
demands that these laws should be made known to the public.
Before one can be prosecuted for violating a certain law, that law
must be made known to its subjects.
Supreme Court Ruling:
 Gone are the days for secret laws. Due process demands that
laws must come to the open in the clear light of the sun instead of
sulking in their shadows with their deep, dark secrets.
 Publication is an indispensable requirement before they can be
become effective, valid and binding.
Years later, SC deviated from the wisdom of the Tanada Ruling
PVB Employees v. Vega 2001
 Involves the liquidation proceedings of the Philippine Veterans
Bank.
 Liquidation proceedings – is a legal process prelude to the
eventual closure of a corporation. A process where a corporation
undergoing financial difficulty is subjected to winding up of its
affairs where its assets are converted into cash to be used in
paying its obligations to its creditors prior to its closure.
 The Central Bank, the government office tasked with the duty to
oversee the operations of banks, filed an action in court for the
liquidation of PVB. Some of the creditors of the bank were the
employees of the bank who were terminated as a result of the
liquidation proceedings.
court claiming payment of their unpaid wages and other monetary
benefits.
 During the pendency of the liquidation proceedings, a new law was
passed RA 7169 mandating the rehabilitation of the PVB.
 Rehabilitation – Be restored to its former condition. The bank will
have to be re-operated. The purpose of the RA is diametrically
opposed to the pending liquidation proceedings. While liquidation
is a prelude to death, rehabilitation is reviving a dying corporation.
 The union filed a petition before the labor court asking for
reinstatement in the event that the bank is rehabilitated.
 They also filed a motion before liquidation court to stop proceeding
with the liquidation because of the enactment of the new law.
 Judge Vega refused and so the matter was brought up to the SC.
 The Central Bank argued that RA 7169 took effect on March 10,
1992, 15 days following its publication. It appears that the law was
published on February 24. Also, the law was signed by Pres.
Aquino on Jan 2, 1992.
 Central Bank and the Board of liquidators view that RA 7169 took
effect only on March 10.
Supreme Court Ruling:
 It did not take effect on March 10, 1992.
 While as general rule, publication is required for a law to be
effective and valid, the legislative body has the discretion to
provide for an exception as when the law itself provides that it be
effective upon approval of the president)
 The law is deemed approved when it is signed by the president.
 When the law provides that it be effective upon approval, there is
no need for publication because publication legally and physically
comes after approval.
 Sec 10 of RA 7169 – This law shall take effect upon approval.
 Publication is not indispensable at all for the legislative body can
dispense with the publication requirement in their discretion.
 Even assuming that publication is required before RA 7169 can be
effective, the records show that this law was actually published.
Therefore, it complied with the requirement of Art2.
The doctrine laid down in PVB v. Vega is:
Publication, while required, is not indispensable at all because the
legislative body has the discretion to dispense with the requirement of
publication. This is opposed to the absolute tenor of the Tanada ruling.
Rule in statutory construction:
In case of conflicting judicial decisions, the latter decision prevails
over the former. Hence, the recent decision is the controlling
decision.
Does this rule apply in the rulings laid down in both Tanada v.
Tuvera and PVB v. Vega cases?
Sir Torregosa’s opinion:
The Tanada ruling must be the controlling doctrine although it was
decided long before the PVB case because
1. Under Art 8, Sec 4, par 3 of the Constitution, there is a provision
which states that no doctrine or principle of law laid down in a
decision rendered by the SC en banc or in division, may be
modified or reversed except by the SC sitting en banc.
(SC is a collective collegial body, composed of 15 justices. They
decide cases as a body, but they may either function as one
body in full complement of 15 justices deliberating on an issue
(en banc) or function in divisions (3 regular divisions – 5
members each) The decision of a division is as good as the
decision of the entire SC en banc, except in certain cases.
Hence, the decision of the division cannot be appealed to the
SC en banc.
Tanada v. Tuvera (decision rendered by SC en banc)
PVB v. Vega (decision rendered by SC in division)
2. The statement made by the SC in the latter case of PVB to the
effect that publication may be dispensed with if the lawmaking
body chooses to do so, is more of an obiter dictum (side
remarks or a statement made in the decision which is not
actually necessary in the resolution of the issue, but
nonetheless, found as part of the decision)
None of the parties in the case ever raised the issue of lack of
publication nor did they challenge the validity of RA 7169 on the
ground that it was not published, and yet the SC made a
statement about it. The only contention advanced by the
respondents was on the actual date of effectivity but never on
the validity of the law vis-à-vis the requirement of publication.
Obviously any discussion made by the SC involving the need of
publication and its exception is more of an obiter dictum. Hence,
it cannot be cited as an authority, not a binding precedent and
neither can it revoke the ruling of Tanada.
What are considered as laws in contemplation of Article 2?
Laws that fall under Art 2 and therefore shall comply with the
indispensable requirement of publication
 1. Statutes (laws enacted by Congress)
2. Presidential Issuances (PDs, EOs, Presidential
Memorandum, Presidential Circulars)
3. Judicial decisions
4. Local laws and ordinances
Do judicial decisions also need to be published in the OG or
newspaper as per Art 2?
Roy v. Court of Appeals
 Petitioner owns a burned building which collapsed and destroyed
the tailoring shop occupied by the family of private respondents,
resulting to injury and the death of Marissa Bernal, the daughter.
 Private respondents have been warned by the petitioner to vacate
their shop because of its proximity to the weakened wall but they
failed to do so. RTC rendered judgment finding petitioner guilty of
gross negligence and awarded damages to the private
respondents.
 Roy appealed the decision of the RTC before the CA but the CA
upheld the decision of the RTC.
 Roy appealed the decision of the CA and on September 9, the last
day of the fifteen-day period to file a motion for reconsideration,
petitioner filed a motion for extension of time to file a motion for
reconsideration but was denied pursuant to the Habaluyas
Enterprise. v. Japzon ruling. (15 day period is non-extendible)
 Roy went to the SC, arguing that it was grave error on the part of
the CA to deny his motion for reconsideration and citing as basis
the doctrine laid down in Habaluyas v. Japzon because such
decision was never published in the OG or newspaper.
Supreme Court Ruling:
 There is no law that requires decisions of the SC to be published in
the OG or newspaper. It is the bounden duty of the lawyer to keep
himself abreast of the latest decisions of courts as published in the
advance reports of SC decisions or in the SCRA or law journals.
 Decisions of the SC because they partake the nature of the law,
need to be published but the publication requirement need not
comply with the publication requirement of Art 2.
Local laws and ordinances
Need to be published for effectivity but just like judicial decisions,
need not comply with the publication requirement prescribed in Art 2
(OG and newspaper) because insofar as ordinances are concerned,
the law governing publication is the Local Government Code.
Mode of publication as per Art 59 of LGC: Shall take effect 10 days
after a copy thereof is posted in the bulletin board found outside the
provincial, city, municipal or barangay halls. It shall also be posted in
2 conspicuous places of the LGU concerned. The 10 day period is
mandatory.
Tanada v Tuvera
 The indispensable requirement of publication applies to
national (applicable to the whole country) and local laws
(applicable to a particular territorial or local government unit)
 Publication applies to all laws whether they affect the public
or private.
 The requirement of publication equally applies to all penal
and non-penal laws.
ARTICLE 3
Ignorance of the law excuses no one from compliance therewith
 One cannot excuse himself from complying with the law by
pleading ignorance. One cannot evade responsibility for
violating a law because he does not know that such law exists.
 Contrary to reality because people are ignorant of the laws. No
one is expected to know all the laws.
Rationale:
Knowledge of the law is presumed as a matter of policy because of
practical necessity and convenience. If we allow ignorance of the law
as an excuse, it will be available for everyone as a defense and
anarchy and chaos will rule for everyone will be freed from criminal
liability.
Question: If the policy is knowledge of the law is presumed, why is
there a need for publication of laws?
It serves as a constructive notice to the people about the existence
of the law. How can you expect someone to be bound to a law when
the existence of which they do not know? (There can be no article 3
when article 2 is duly complied with)
Ignorance of facts (Mistake of Fact)
If there is a legitimate good faith and basis of mistake of fact, it can
be an excuse. Can be an absolutory circumstance. Frees someone
from criminal liability. The presence of mistake of fact could negate
some requirements of criminal liability like criminal intent. Had the
facts been true as the individual believed them to be, the individual
would be exonerated from any liability.
Requisites:
(1) The act would have been lawful had the facts been as the
accused believed them to be
(2) That the intention of the accused in performing the act
should be lawful
(3) Act is not tainted with negligence
US v. Ah Chong
 Ah Chong works as a cook and in connection with his work, he
was allowed to live in a certain quarter together with another
employee named Pascual.
 Robberies were common in the place and Ah Chong made it a
habit to keep a kitchen knife beneath his pillow. Since the room
has no permanent lock, they improvised by placing a hook from
the inside and reinforced it by placing a chair against the door.
 One night, Ah Chong was soundly asleep when he was suddenly
awakened by someone who was forcibly opening the door. He
called out twice asking the person to identify himself but got no
answer.
 The door suddenly swung open pushing the chair forward thereby
hitting Ah Chong in the knees. As it was dark, Ah Chong honestly
believed that he was under attack, and so he took his kitchen knife
and struck the intruder, which turned out to be Pascual who
eventually died.
 Ah Chong invoked self-defense stating that it was a mistake of fact
because he honestly believed that his life was in danger.
Supreme Court Ruling:
 Had it been true that the one who entered the room was an
intruder, then Ah Chong had all the right to defend himself and his
act of killing the intruder would have been justified.
 Ah Chong exercised due diligence in trying to prevent the incident
by calling out thrice to the person outside.
 Mistake of fact can be a defense provided that his actions were not
tainted with negligence.
 Someone who acted in self-defense cannot be criminally and civilly
liable.
US v. Ah Chong contrary to the case of Yapyuco v. Sandiganbayan
Yapyuco v. Sandiganbayan
 Active members of the PNP. One night, the accused got a call
from an informant alerting them of some armed men who were
suspected of being members of the New People’s Army.
 In response of the information, the accused proceeded to the area,
with the view in mind to apprehend the suspects.
 Upon the informant relayed by the informant, the accused,
members of the PNP, tried to flag down a Toyota Tamarraw motor
vehicle said to be carrying the suspected members of the NPA.
Pursuant to the standard operating police procedure, the accused
claimed that they tried to flag down the vehicle but instead of
pulling over, the vehicle tried to speed away.
 In order to immobilize the vehicle, the accused claimed that they
shot the tires of the vehicle.
 As a result, one died, one suffered fatal injury and many suffered
from attempted murder. Murder, frustrated and attempted murder
were filed against the police officers who participated in the
operation.
 During the trial, the accused invoke mistake of fact as a defense
claiming that they honestly believed that the passengers onboard
the motor vehicle were armed and dangerous and the suspected
members of the NPA.
 They tried to justify that their act of firing bullets at the vehicle was
because it tried to speed away and that there only purpose in
shooting was just to immobilize the vehicle.
Supreme Court Ruling:
 We cannot give credit to the claim of the accused that their only
purpose was to immobilize the vehicle because based on the
evidence, the trajectory of the bullets and their locations as shown
by the physical condition of the vehicle, would show that the fire
was aimed at the passengers. Hence, their intention was to shoot
and kill the passengers, most especially because the weapons
used were automatic and assault rifles.
 For mistake of fact to prosper, three requisites must be established:
1. It must be based on good faith and must be reasonable.
2. The mistake must pertain to mistake of fact
3. The mistake of fact must negate some elements of culpability
required by law
Article 3 applies only if the law involved is Philippine law. If the
issue is legal and the law involved is domestic, the party who relies
on the local law does not need to prove the existence of that law
because courts take judicial notice of our local laws. Judges are
presumed to know our local laws. This does not extend, however to
foreign laws. A party who relies on foreign law has the burden of
proving it as a fact.
What happens when a party who invokes a foreign law is not duly
proved?
Processual Presumption
In instances when a foreign law relevant in the issue of the case is
not duly proven, it shall be presumed that such foreign law is the
same with our laws. (Yao Kee v. Gonzales)
Yao Kee v. Gonzales
 This involves the estate of a certain China man, Sy Kiat who died
intestate in the Philippines leaving properties in the Philippines and
some heirs.
 Upon his death, one group of heirs headed by Aida Gonzales,
claimed to be the legitimate children of the late Sy Kiat and moved
for the settlement of the estate left by their father and be appointed
as the administratrix of the estate.
 This petition was opposed by a Chinese woman named Yao Kee
who claims to the lawful wife of the deceased. She claimed that
she and Sy Kiat had children.
 Primordial issue: Whether or not Yao Kee was lawful wife of the
deceased.
 During the trial, Yao Kee tried to prove that she was lawfully
married to Sy Kiat pursuant to a marriage ceremony celebrated in
China in accordance with Chinese laws and customs.
 Art 26 of the Family Code, validity of the marriage is determined by
the law of the place where the marriage is solemnized. (lex loci
celebracionis)
 Unfortunately for Yao Kee, she failed sufficiently to prove Chinese
law on marriage and so the court had difficulty resolving the issue
whether Yao Kee was legally married to Sy Kiat.
Supreme Court Ruling:
 Applied the principle of Processual presumption (In instances
when a foreign law relevant in the issue of the case is not duly
proven, it shall be presumed that such foreign law is the same with
our laws)
 Since the Chinese law on marriage has not been duly proved, we
now apply Philippine law on marriage. For a marriage to be valid in
Philippine law, it must comply with 5 requisites (2 essential and 3
formal)
1. Consent mutually given
2. Legal Capacity
3. Authority of the solemnizing officers
4. Valid marriage license
5. Marriage ceremony
 The marriage of Yao Kee and Sy Kiat had no participation of a
solemnizing officer because under Chinese customs, they claimed,
marriage can be solemnized without a solemnizing officer.
 SC ruled that since the marriage of Yao Kee and Sy Kiat in China
had no solemnizing officer, and applying the Philippine law now
pursuant to the Processual presumption doctrine, it is obvious that
the marriage is void for lack of one of the formal requisites.
ARTICLE 4
Laws shall have no retroactive application, unless the contrary
is provided.
General rule: Laws shall have prospective application (Prospective
law - a law that applies to facts, events and transactions occurring
after the law took effect)
Rationale: To avoid grave miscarriage of justice because if a law is
to be given retroactive application, someone will be penalized for
doing something which is not yet a crime during its commission.
Marcelino Buyco v. PNB
 Illustrates the general principle that laws should have prospective
application.
 Back pay law – grants some benefits to military who served the
Philippine forces as guerillas during the war. Because of the war,
they were not given their compensation at the time while the war is
still ongoing. When the war was over, the Congress enacted the
Back pay law. Mode of payment was through a back pay certificate.
 One peculiar feature of the back pay, the recipient of this back pay
certificate may pay his obligations to the government through the
certificate.
 Marcelino Buyco is a holder of a back pay certificate. After the war,
he obtained a loan from the PNB. When the loan fell due, the back
pay law was still in force. Subsequently, the law creating PNB was
amended. The amendatory law disallows the bank from accepting
back pay cert as payment of obligations.
 Buyco when he paid was refused of payment by virtue of the
amendatory law.
Supreme Court Ruling:
 Supreme Court held that while it may be true that the latest charter
of PNB disallows the payment of obligations through back pay
certificate, it must not affect Mr. Buyco because his obligation was
incurred before the new law took effect.
 The amendatory law should be given prospective application and
should apply only to obligations incurred at the time the law took
effect and onwards.
 Hence, the amendatory law shall only be given prospective
application so as not to prejudice the vested rights or Mr. Buyco.
Exceptions:
1. When a law provides for its retroactive application
Exception to the exception:
a. No ex post facto law shall be allowed. (One which
makes an act criminal which was not criminal when
committed; Increases the penalty of the crime)
2. When the law is penal or criminal in nature, provided
that it is favorable to the accused
People v. Patalin
 Involves prosecution of the crime of robbery with multiple rape. At
the time the crime was committed, the crime was punished by death.
 During the pendency of the trial, death penalty was abolished. Trial
went on and when the decision was rendered, death penalty was
reimposed.
 Issue: Whether or not the accused can be punished with death
considering that at the time the crime was committed, death penalty
was imposable but was abolished during the pendency of the case
and when the decision was made, death penalty was reimposed?
Supreme Court Ruling:
 SC taking cue from the principle that when the law involved is penal
in nature, the accused cannot be penalized by death because when
death penalty was abolished during the pendency of the trial, that
law was favorable to the accused and should therefore be given
retroactive application.
 Supreme Court invoked the rule that penal laws should be given
retroactive application when favorable to the accused. Hence, the
accused can no longer be penalized with death penalty. The effect
of the amendatory law abolishing death penalty retroacts to the time
the crime was committed.
 The fact that death penalty was reimposed when the decision was
rendered does not matter because the accused had already vested
rights when the death penalty was abolished during the pendency of
the trial.
Manuel Rodriguez v. Director of Prisons
 Involves prosecution of the crime of estafa. During the arraignment,
Mr. Rodriguez pleaded guilty to the crime. And so, the court
sentenced him to imprisonment of 1 yr, 8 months and 21 days.
 While serving sentence, a new law was passed, the RPC, and
under this new law, the penalty of estafa is reduced. Under the OPC,
voluntary plea of guilt is not considered a mitigating circumstance,
but under the RPC, it is, hence reducing the penalty.
 Invoking the benefit of the new law, Manuel Rodriguez filed a
petition for habeas corpus. Since the new law is favorable to him, it
shall be applied to his case. Hence, his voluntary plea of guilt
should be considered as a mitigating circumstance and the penalty
which is lower under the new law shall be the one applied to him.
Supreme Court Ruling:
 SC ruled in favor of Rodriguez by applying the provisions of the new
law. Since the new law was favorable to the accused, he shall afford
of its benefits including the mitigating circumstance of voluntary plea
of guilt.
 It was found that he already served the proper penalty imposable on
him under the new law which is 4 months and since it was
established that he already served 7 months in prison, his
immediate release was ordered.
Exceptions to the exception:
a. When the law itself expressly provides that its
provisions should not cover existing cases or pending
actions even if favorable to the offender.
Larga v. Ranada
 Involves the prosecution which involves the violation of the HDMF or
the PAG-IBIG Fund Law.
 Under the said law, the employer is mandated by law to withhold a
certain portion of the salary of the employee and remit them to
PAGIBIG to form part of the pool of resources that can be availed of
as way of benefits for PAGIBIG members.
 Larga happens to be an employer and in accordance with the law,
he withheld portions of the salaries of his workers accruing from
1984 – 1986.
 It turned out, however, that Larga did not remit them to PAGIBIG.
 Under the law then in force, non-remittance is a criminal offense.
Hence, he was prosecuted.
 During the pendency of the case, the PAGIBIG law was amended,
making the remittance of contributions voluntary. Hence, non-
remittance is not anymore a criminal offense.
 Larga invoked the principle that a penal should be given retroactive
application if favorable to the accused,
 Larga moved to quash the information stating that since non-
remittance is no longer a crime in the new law, this shall wipe out
his alleged criminal liability under the old law.
Supreme Court Ruling
 As a general rule, penal laws shall be given retroactive application if
favorable to the accused, except when the law itself provides that it
should not be given retroactive application as when its provisions
provide that it shall not apply to pending cases during the time of its
enactment.
 The provisions of the new law expressly provide that the effect of
the amendment decriminalizing the act of non-remittance will take
effect starting January 1, 1987 and onwards. The period of
effectivity is specific.
  Larga was prosecuted for the act of non-remittance accruing from
1984 to 1986.
 The obvious purpose of the new law is to limit its benefits to acts
committed from the time of its enactment. Hence, crimes committed
under the old law shall be continued to be prosecuted and punished.
b. When the accused is a habitual delinquent
(Habitual delinquent - Art 62 of RPC one who within
10 years from his last release or last conviction of the
crimes serious or less serious physical injuries, theft,
robbery, falsification, estafa, is found guilty of any of
said crimes the third time or oftener)
c. When the accused himself denies the benefits of the
new law and insists that he be prosecuted under the
old law. (No retroactive application)
Ferrer v. Pecson
 Involves the prosecution for reckless driving resulting in serious
physical injuries and damage to property.
 Under the law then in force during the commission of the crime,
the crime of reckless driving was punishable under a special law,
The Revised Motor Vehicle Law.
 This law provides for a specific penalty for the offense and under
the law then in force which govern jurisdiction, the penalty imposed
under the Revised Motor Vehicle Law is supposedly cognizable by
the RTC. (Jurisdiction depends on the severity of the penalty), but
the case filed against Ferrer was filed before the MTC.
 After trial, he was convicted and so he appealed to the RTC.
 When the appeal was with the RTC, Ferrer moved for the
dismissal of the case. He said that the appeal with the RPC is just
a continuation of the proceedings of the MTC and based on the
law in force at that time, the MTC had no jurisdiction to try and
convict him because it only had jurisdiction over crimes with a
penalty of not more than 6 months, and his crime under the RMVL
is punishable with 6 years maximum.
 Because the MTC had no original jurisdiction, it follows that the
RTC had no appellate jurisdiction. Hence, he urged the RTC to
dismiss the case.
 The matter went all the way up to the Supreme Court.
Prosecution’s Contention
 The prosecution invoked that a penal law should be given
retroactive application if favorable to the accused.
 The RMVL is subsequently amended by the RPC. By virtue of the
amendment, the crime of reckless driving should no longer be
punished under the RVML but under the RPC.
 The penalty under the RPC is lower than that of the RMVL. Hence,
this penalty is cognizable by the MTC.
 The prosecutor argued that the provisions of the RPC should be
applied to accused because it is favorable to him since it offers a
lower penalty.
 Since the penalty is lower, the MTC has jurisdiction. Hence, the
case should not be dismissed.
Supreme Court Ruling
 It may be true that penal should be given retroactive application
when favorable to the accused, but not when the accused himself
refuses the benefits of the penal law and insists that he be
prosecuted under the old law.
 Hence, since the MTC had no jurisdiction, the case was dismissed.
3. When the law is remedial or procedural in nature
Laws as to its nature:
 Substantive laws – laws that create rights, impose
obligations and attach liabilities
 Remedial/Procedural laws – laws that don’t create
rights, impose obligations nor attach liabilities; merely
provide remedies and procedures on how to enforce
rights created by the substantive laws. (e.g. rules of
court)
General rule: When the law is remedial or procedural in
nature, it should be given retroactive application.
Zulueta v. Asia Brewery
 Zulueta entered into a contract of distributorship with Asia Brewery
who is engaged in the manufacturing of beer and other related
products.
 Zulueta filed a complaint alleging breach of contract before the
RTC Iloilo
 By way of retaliation, Asia Brewery also filed its own complaint
before the RTC Makati.
 Zulueta, realizing that she has better advantage if the case is tried
in Iloilo, filed a motion before the RTC Makati asking that the
Makati case be consolidated with the Iloilo case.
 RTC Makati ordered the consolidation of the cases.
 Asia Brewery challenged the order of the Makati Court directing
the consolidation. Asia Brewery claimed that the Makati Court was
guilty of grave abuse of discretion in authorizing the consolidation
of the two cases in Iloilo.
 Under the rules then in force, a petition for certiorari shall be filed
90 days from receipt of the order subject of the petition.
 The order of consolidation which Asia Brewery seeks to nullify was
received by her on May 23, 1997. Hence, 90 days from May 23
shall be the deadline for the filing of the petition for certiorari. (Aug
22)
 Before Asia Brewery could file the petition, the 1997 rules of court
of civil procedure took effect on July 1, 1987. This rule shortened
the period within which to file a petition for certiorari from 90 days
to 60 days.
 Counted under the new 1997 rules, the period to file the petition for
certiorari from May 23 would be July 22. (60 days)
 Instead of filing on or before July 22 which is the deadline under
the new 1997 rules of civil procedure, Asia Brewery filed it
sometime August, within the 90 day period under the old rule.
 The CA dismissed the petition on the ground that it was filed out of
time, invoking the new 1997 rules of civil procedures.
 Issue: Whether the petition for certiorari by Asia Brewery was filed
out of time.
 Asia Brewery claimed that procedural laws should not be given
retroactive application.
Supreme Court
 The order sought to be annulled by the petition was received by
Asia Brewery was received by Asia Brewery on May 23, 1997 and
the new rules providing the 60 day period took effect on July 1.
 Asia Brewery had 21 days to comply with the new rules.
 The new 1997 rules of civil procedure shall be given retroactive
application as to cover cases pending and unresolved as of the
time it took effect.
 Procedural law was given retroactive application because Asia
Brewery was not prejudiced for it had 21 more days to file the
petition.
Exception to the exception:
a. When it impairs vested rights
Tayag v. Court of Appeals
 An action for compulsory recognition of illegitimate filiation. Filed
by a minor child represented by the mother claiming inheritance of
his deceased father, Atty. Ocampo
 The action was directed to the adminstratix of the estate of Atty.
Ocampo.
 In defense, the administratrix argued that the filing of the action for
compulsory recognition of illegitimate filiation was filed out of time
and has already prescribed. (Art 175 of the Family Code)
 Art 175 Family Code: The filing of the action to compel the
recognition of illegitimate filiation should be filed during the lifetime
of the putative parent. And since Atty. Ocampo is already
deceased, the action has already prescribed.
 The mother argued that Art 175 is not applicable, but Art 285 of the
Civil Code which states that the action to compel recognition of
illegitimate filiation should be filed within the lifetime of the parent,
but when the parent died during minority of the child, the action
may be filed within 4 years from the time the child reached the age
of majority.
 Issue: Whether or not Art 175 of the Family Code should be given
retroactive application. (When Atty. Ocampo died, the law then in
force was the New Civil Code, but when the action was filed, the
Family Code took effect)
Supreme Court Ruling
 Art 175 provides for a rule on prescription, a period within which an
action for recognition of illegitimate filiation may be filed. Even
assuming that the issue of prescription is a matter of procedure or
remedial in nature, Art 175 cannot be given retroactive application
as to prejudice or impair the rights of the child. Because when Atty.
Ocampo died, the law then in force was the New Civil Code (Art
285)
 When Atty. Ocampo died, the minor child already had vested rights
and interests to pursue the action pursuant to Art 285 of the New
Civil Code.
 Hence, Art 175 of the Family Code, even procedural or remedial in
nature cannot be given retroactive application because to do so
would impair vested rights.
b. When the decision is final and executory
The retroactive application of procedural or remedial
laws cover only actions which are still pending or
unresolved at the time the procedural law took effect.
It does not cover cases already decided by the court
which are final and executory.
Municipality of Coron v. Carino
 Involves an action filed by the Municipality of Coron to remove the
illegal structure built by squatters on its property. The court rules in
favor of the municipality.
 The squatters appealed the decision of the RTC before the CA.
 Under the rules then in force, one of the requirements for
perfecting an appeal is the submission of the so called “records on
appeal”.
 An appeal is just a continuation of the proceedings below. When
the decision of the lower court is appealed to the CA, it is required
at the time, under the rules then in force that all the records
 available on the lower court should be forwarded to the appellate
court so that they can review the decision of the lower court.
 Because of failure to comply with the requirement of records on
appeal, the CA dismissed the appeal. When it was dismissed, the
squatters failed to elevate the matter to the SC. Hence, the
decision became final and executory.
 The Municipality of Coron moved for the execution of the decision,
asking the court to demolish the illegal structures.
 At this time, a new rule was enacted, dispensing the requirement
of records on appeal.
 Invoking the retroactive application of this new requirement which
dispenses the requirement of records on appeal, the squatters
went to the CA and asked for the revival of their appeal, arguing
that records on appeal is no longer required, hence, their appeal
should be reinstated.
Supreme Court Ruling:
 As a general rule, procedural rules should be given retroactive
application, but its retroactive application covers only cases which
are still pending and unresolved during the procedural law took
effect, and not on cases already final and executory. Otherwise,
there would be no end to litigation.
4. When the law is curative in nature
Curative statute – a statute that cures (pertains to a past
act/evil that it seeks to remedy)
Frivaldo v. Comelec
 Frivaldo was a prominent figure in the political scene during the
Marcos regime. To avoid persecution, Frivaldo fled the country to
the US and gained US citizenship by virtue of naturalization.
 When Cory Aquino took office, Frivaldo went home and tried his
luck in politics. Won thrice for governor of Sorsogon and was
disqualified thrice by the Comelec.
 On the third disqualification, the SC looked kindly on him.
 He was disqualified for the sole reason that he did not possess the
qualification of being a Filipino citizen, for public officials should be
a Filipino citizen.
 When he ran during the 1995 elections, his application for
repatriation was approved by the special committee on June 30
1995, the time when his tenure started. Hence, when he registered
as a voter and filed for certificate of candidacy, he was not yet a
Filipino citizen.
 Under the rules promulgated by the Comelec, a candidate for
office should be a Filipino citizen at the time of registration and
filing of candidacy.
Supreme Court Ruling:
 Supreme Court held that the repatriation law PD 527 is a curative
statute and it is aimed at correcting the flaws and defects of the
past where Filipino citizens had a hard time reacquiring Filipino
citizenship.
 Being a curative statute, it should be given retroactive application.
The effect of the approval of his repatriation should be retroactively
applied to the time he filed for his application for repatriation in
1994 and not to be limited on the time of the approval.
 Hence, it is obvious that at the time Frivaldo registered for the
purpose of the 1995 elections, he was already a Filipino citizen
because the effect of the repatriation retroacts to the time of the
filing of the application.
ARTICLE 5
Acts executed against the provisions of mandatory or
prohibitory laws shall be void, except when the law itself
authorizes their validity.
rd
Must be correlated with the 3 par of Art 17
“Prohibitive laws concerning persons, their acts or property, public order,
public policy and good customs shall not be rendered ineffective by laws
or judgments promulgated or by conventions agreed upon in a foreign
country”
General Rule: When a certain act contravenes mandatory or
prohibitory laws (laws that command/prohibit the doing of an act) it
shall be considered void.
Exceptions:
1. If the law itself provides that it be valid.
Example: Act of illegally solemnizing marriage but if the
parties believed in good faith that the solemnizing officer
had authority, marriage remains to be valid
2. If the law considers the act voidable.
Valid until annulled. Example: Shotgun marriage. Consent
is vitiated, hence marriage shall be voidable.
3. If the law itself provides that it be valid but subjects
the wrongdoer to criminal liability.
4. If the law considers the act valid because of
supervening events.
Example: When a foreigner buys a piece of land in the
Philippines, contrary to the rule that foreigners cannot own
properties in the Philippines, but in turn, sells it to a Filipino.
The defect is deemed cured.
5. If the law provides for its validity but generally it would
have been void.
Example: Cockfighting and lotto (gambling)
rd
3 par of Art 17
Prohibitive laws should not be rendered ineffective just because they
are considered valid in a foreign country.
Example: Filipinos obtaining divorce abroad. Just because divorce is
valid in the US does not mean that it will be valid in the Philippines.
Our laws concerning persons, their acts or property, public order,
public policy and good customs are supreme over laws of foreign
countries.
Strongest argument against divorce and same sex marriage
(Although recognized abroad may not be recognized in the
Philippines)
ARTICLE 6
Rights may be waived, unless the waiver is contrary to law,
public order, public policy, morals or good customs, or
prejudicial to a third person with a right recognized by law.
General rule: Rights may be waived, unless contrary to law, public
order and public policy.
Rights – take the nature of a favor and no one is compelled to accept
a favor, which is why the one conferred with the right has the right
not to accept such right.
Rights which may not be waived:
1. Right to receive future support from parents
2. Right to future inheritance (Basis: right to life)
Exceptions:
1. When it is contrary to law, public order, public policy,
morals or good customs, or prejudicial to a third person
with a right recognized by law.
Cui v. Arrellano University
 Cui was a law student of Arrellano University and a scholar from
first year up to fourth year 1st semester, when he transferred to
Abad Santos.
 Since he was a scholar, his tuition fees are returned to him at the
end of every semester.
 He finished his law applied for permit to take the Bar exams,
however, one of the requirements was a complete transcript of
records of his entire law school.
 Cui went to Arrellano University to get his transcript but he was
refused unless he would return the cash equivalent of his
scholarship grant. He paid, but under protest.
 When he became a lawyer, he sued the university. It turned out
that before he was granted the scholarship, he signed a waiver of
his right to transfer to another school unless he refunds the school
of the cash equivalent of the scholarship grant.
 Issue: Whether or not the waiver was valid because it was
voluntarily executed by him?
Supreme Court Ruling
 The waiver is contrary to public policy and even morals. The
essence of scholarship grants is to recognize the talents and the
exemplary performance of students and never meant as a
marketing strategy to attract business, but rooted on a noble
purpose of recognizing talents.
 For being contrary to public policy and morals, the waiver was
declared void.
ARTICLE 7
Law are repealed only be subsequent ones, and their violation
or non-observance shall not be excused by disuse, or custom
or practice to the contrary.
When the courts declare a law to be inconsistent with the
Constitution, the former shall be void and the latter shall
govern.
Administrative or executive acts, orders and regulations shall
be valid only when they are not contrary to the laws or the
Constitution.
(Article 4 should be understood in relation to Art 7)
Two kinds of Repeal
(1) Express - When the latter law expressly states that it
repeals the former law.
 (2) Implied Repeal – Take place when the provisions of the
latter law are irreconcilably inconsistent with the provisions
of the former law.
What is the effect of a repeal of law?
General Rule:
The effects of the repealing law operate only at the time the
repealing law takes effect. Consistent with the principle of
prospectivity, the effect of the repealing law shall be given
prospective application. The repealing law will not undo the acts and
events that occurred in the past.
Exceptions:
1. When the repealing law is total absolute.
(Decriminalizes the crime) The court loses jurisdiction to
further prosecute the accused under the provisions of the
old law.
People v. Pimentel
 Prosecution for violation of RA 1700 Anti-Subversion Law
 Accused was arrested, tried, but during the pendency of the trial,
RA 1700 was repealed, decriminalizing the act of subversion.
 Issue: May the accused still be continued to be prosecuted under
the old law?
Supreme Court Ruling
 Since the repeal is total and absolute, the intention being to
decriminalize the act of subversion and all its attendant liabilities,
the repealing law should be given retroactive application.
 The accused was released.
Exceptions to the exception:
a. When the repealing law provides for a saving clause
Buscayno v. Military Commission
 Involves so many cases and so many accused.
 Case of Jose Maria Sizon
 Juliet Sizon was charged with violation of RA 1700 Anti-
Subversion Law. She was charged and prosecuted.
 During the pendency of the case, RA 1700 was repealed by the
Revised Anti-Subversion Law (A new law that punishes the same
act of subversion)
 Invoking the principle that the repeal producing the effect of
abrogating the crime incurred under the old law, Juliet Sizon
moved for that she be released from imprisonment because there
is no more crime to speak of.
Supreme Court Ruling:
 Although RA 1700 was repealed by the new law, it is clear that the
new law expressly provides that its provisions shall not cover
cases prosecuted under the old law.
 While the new law repeals the old RA 1700, it expressly provides
that all cases filed and prosecuted under the old law before it was
repealed shall be continued to be prosecuted because of the
presence of the saving clause.
b. When the repealing law amounts to a reenacted
statute.
Re-enacted statute is an entirely different statute;
independent in itself but penalizes the same act
already penalized by a previous law. So even if this
new law repeals the old but this new law penalizes
the same act being penalized under the old law that it
repealed, this law amounts to a re-enacted statute.
This reenacted statute should not be given retroactive
application. Hence, crimes punished under the old
law should be continued to be prosecuted. Because
when the framers of the new law punishes the same
act penalized under the old law, obviously they did
not have the intention to abrogate the crime,
otherwise, why would they penalize the same crime
again under the new law?
US v. Cuna
 Violation of Anti-Opium Law. The accused was prosecuted for
disposing opium to unauthorized recipient.
 Subsequently, the Anti-Opium Law was repealed by a new law.
The accused argued that as a result of the repeal of the old Anti-
Opium law, the crime for he is being prosecuted has already been
abrogated and therefore, the court loses jurisdiction to try his c ase.
Supreme Court Ruling:
 While it is true that the old opium law was repealed, it is also true
that the new opium law that repealed the old opium law still
punishes the same act.
 It is absurd to say that the intention of the repealing law is to
abrogate the crime and liabilities incurred under the old law.
People v. Concepcion
 Concepcion was the president of the PNB. Under the original
charter of the PNB, officers and members of the Board of Directors
of PNB are prohibited from obtaining directly or indirectly any loan
from the bank and doing so would constitute a criminal offense.
 Concepcion was found out to have obtained a loan from the bank
through a certain company where he has a substantial interest
(stocks), Binalbagan estate.
 He was prosecuted under the provisions of the PNB charter.
 At the time it was committed, the law then in force was the old
charter which absolutely prohibits the act without qualifications.
 During the pendency of the case, the charter was repealed by
another law. This new law still maintains the prohibition against
officers and members of the Board obtaining loan from the bank,
but provides for a qualification (except if the loan is approved by
the members of the Board)
 Contending that the repeal produces the effect of abrogating the
crime punished under the old charter, Concepcion moved that he
be released and his case be dismissed.
Supreme Court Ruling
 While it may be true that the original charter was repealed by a
subsequent law, the repealing law still maintains the same
prohibition.
 The repealing law is a re-enacted statute and being one, it should
not be given retroactive application as to wipe out the crime and
the liabilities incurred under the old law before it was repealed.
Rule when the former and the new law are of different
classifications:
1. If the prior law is general and the new law is special, the
special law shall be considered as an exception to the
general law. Hence, there is no repeal to speak of because
these two laws can stand together.
Lichauco & Co. v. Apostol
 Involves an EO issued by the Department of Agriculture. Such
order mandates that all applications for importation of carabaos
and draft cattles from countries where there is an outbreak of
animal infectious diseases should go through the Director of
Agriculture for the necessary clearance or approval.
 Lichauco & Co. tried to import some cattles for production of serum
from Pnom Pehn. It tried to ship into the Philippines a number of
carabaos and cattles.
 This was refused by the Dept of Agriculture because at that time
Pnom Penh was one of the countries determined to have a
prevailing outbreak of animal infectious disease (rinderpest).
 A dispute arose when the application for importation was declined.
 Director of Agriculture invoked the provision under the
Administrative Code Sec 1770 which governs specifically the
situation where the animal to be shipped to the Philippines came
from countries where infectious diseases were reported to be
existing.
 Lichauco invoked Sec 1762 of the Administrative Code as
amended which governs the importation of animals from abroad to
the Philippines without qualifications. Hence, the Director of
Agriculture had no right to decline their application because Sec
1762 does not impose any restrictions.
 Both provisions are inconsistent with each other.
 Issue: Which law should prevail?
Supreme Court Ruling
 1762 invoked by Lichauco & Co. is actually a general provision, in
a sense that it governs cases of importation under any
circumstance and at any time.
 1770 invoked by the Director of Agriculture is a special law
because it only applies to situation where the animals to be
shipped to the Philippines come from foreign countries determined
to have animal infectious diseases.
 Hence, in case of a general law and a special law, the special law
shall be considered simply as an exception to the general law.
 In this case, there is actually no repeal that takes place.
2. If the former law is special and the new law is general,
there is no repeal
Exceptions:
a. If the general law expressly provides that it repeals
the special law
b. If the general law are irreconcilably inconsistent with
the provisions of the special law
c. If it can be inferred from the provisions of the general
law that its intention is to replace the special law
Effects if the Repealing law is itself repealed:
1. When a law which expressly repeals a prior law is itself
repealed, the law first repealed shall not be revived,
unless expressly provided.
If law 2 expressly repeals law 1 and law 2 in turn, is
repealed by law 3, it shall not revive law 1, unless law 3
provides otherwise.
 2. When a law which impliedly repeals a prior law is itself
repealed, the law first repealed shall be revived, unless
otherwise provided.
If law 2 expressly repeals law 1 and law 2 in turn, is
repealed by law 3, it shall revive law 1, unless law 3
provides otherwise.
Rule when a law is declared unconstitutional by the court
1. Orthodox view – An unconstitutional law is no law at all. It
does not exist and did not exist at any time. Hence, it did
not create any obligation and confer any right nor attach
any liability. Any transaction, event or facts that occurred
under the law that was declared unconstitutional are
deemed illegal and void from the very beginning.
2. Operative fact doctrine – The doctrine we adhere to. The
effect of the unconstitutionality of a law shall only operate
starting from the time it was declared so and should not
serve as to undo the effects before the law was declared
unconstitutional. All laws prior to their being declared
unconstitutional, shall be complied with for they are valid,
producing legal effects and consequences.
Ynot v. Intermediate Appellate Court
 During the time of Marcos, a PD was issued to the effect that it is
illegal for any person to transport carabaos from one province to
another. The purpose was to prevent illegal slaughter of carabaos.
 Mr. Ynot tried to transport carabaos from Masbate to Iloilo. The
carabaos were confiscated by a police commander pursuant to the
provisions of the PD.
 Ynot moved for the return of the confiscation of the carabaos but
the RTC upheld the confiscation.
 Ynot went to the SC to question to constitutionality of the law.
Supreme Court Ruling
 Declared the law unconstitutional because it violated the due
process of the Constitution because it authorizes the confiscation
of the carabaos with giving opportunity to the owner to explain.
 The police who confiscated the carabao acted as the judge and
executioner all rolled into one.
 The means is not germane to the purpose of the law.
 Making illegal the transport of carabaos from one province to
another does not prevent the slaughter of carabaos considering
that they can be killed anywhere, with no less difficulty in one
province than in another.
 The police commander who illegally seized the carabao cannot be
held liable because consistent with the operative fact doctrine, he
was just doing his job pursuant to the provisions of the law which
was at that time presumptively valid and constitutional.
Serrano de Agbayani v. PNB
 Serrano obtained a loan from PNB. By way of collateral, Serrano
constituted a mortgage on his property. But for non-payment, the
bank initiated foreclosure proceedings.
 Serrano opposed on the ground that the action to foreclose the
mortgage has already prescribed; 15 years had already lapsed
from the time the loan obligation matured.
 At the time of the loan obligation of Serrano matured, an EO was
passed providing for moratorium for all obligations of all those who
suffered from the war, enjoining all creditors from enforcing their
claims. Hence, creditors could not compel debtors to pay.
 Because of the wholesome purpose of the law, the Congress even
extended the EO by virtue of a RA.
 For 8 years, the moratorium law was in force before it was
declared unconstitutional.
 PNB claimed that the period of 8 years during which the
moratorium law took effect should not be counted in reckoning the
prescriptive period because they were legally prohibited from
initiating foreclosure proceedings.
Supreme Court Ruling
 While it may be true that the moratorium law was eventually
declared unconstitutional, its existence before it was declared so is
an operative fact which produces legal effects which cannot be
ignored.
 The 8 year period should be excluded from the computation of the
prescriptive period.
ARTICLE 8
Judicial decisions applying or interpreting the laws or the
Constitution shall form part of the legal system of the Phils.
While it is true that decisions which apply or interpret the Constitution
or the laws are part of the legal system of the Philippines, still, they
are not laws.
Judicial decisions, thought not laws, are evidence of what the laws
mean, which is why they are part of the legal system of the
Philippines.
Doctrine of Stare Decisis
Adherence to precedents; once a case has been decided one way,
then another case involving exactly the same issue, should be
decided in the same manner.
Obiter Dicta
Opinions not necessary for the determination of a case and cannot
have the force of precedents.
ARTICLE 9
No judge or court shall decline to render judgment by reason of
the silence, obscurity or inefficiency of the laws.
Laws do not always answer all society’s problems. Nonetheless, in
its absence or when it is inadequate, the court should:
1. Refer to other sources such as customs
2. Opinions from experts
3. Decisions rendered from foreign courts
4. Decisions in other analogous cases
The court should perform its duty to render justice regardless of the
absence, obscurity or inefficiency of laws that directly apply to the
facts of the case.
ARTICLE 10
In case of doubt in the interpretation or application of laws, it is
presumed that the lawmaking body intended right and justice to
prevail.
Duty of the court
Apply the law regardless of their personal beliefs, religious
convictions, and private opinions.
People v. Veneracion
 Judge Veneracion was a devoted Catholic and an active member
of a religious organization and believes that death penalty can
never be justified.
 Case involving rape. The accused was found guilty but instead of
imposing death penalty prescribed by the law existing at the time,
he let his religious convictions take over as imposed reclusion
perpetua instead.
 The People of the Philippines went to the SC to question the
decision of the said judge.
Supreme Court Ruling
 As a judge, your duty is to apply the law regardless of your
personal beliefs. Courts are not concerned with the wisdom and
efficacy of laws. (Dura lex sed lex – the law may be harsh but it is
still the law)
Presumption: Laws are aimed at promoting justice.
Salvacion v. Central Bank
 Salvacion, a 12 year old girl was illegally detained and repeatedly
raped by a foreigner, a tourist. The foreigner was arrested and the
parents of Salvacion filed civil action for damages arising from the
same crime.
 Insofar as the criminal case was concerned, when the hearing was
set, the accused escaped.
 The civil action continued and after trial, judge rendered in favor of
the complainant and court awarded damages in favor of the victim.
 The accused was nowhere to be found. The family tried to enforce
the monetary judgment obtained from the court in the civil and
when they discovered that the accused had bank deposits, an
action for garnishment was filed, requesting the bank to release
certain amount enough to satisfy the monetary judgment of the
court.
 Central Bank refused invoking a Central bank circular which says
that foreign currency deposits are exempted from garnishment,
execution and other processes of the court.
 The said circular was lifted from the Foreign Currency Deposit Act
which makes foreign currency absolutely confidential. Hence, it
cannot be subject of execution or garnishment.
 The family filed an action for declaratory relief to settle once and
for all the applicability of the central bank circular and foreign
currency deposit act to the case at hand.
 Issue: Whether the foreign currency deposit of the accused can be
garnished to satisfy the monetary award rendered by the court.
Supreme Court Ruling
 The Supreme Court, applying Sec 10 of the Civil Code, said that in
case of doubt in terms of the interpretation and application of laws,
it is presumed that the lawmaking body intended right and justice
to prevail.
 The SC examined the rationale behind the Foreign Currency
Deposit Act and it was established that the purpose of the law was
to encourage foreign investment to help steer the local economy.
 By way of incentive to foreign investors, the Congress offered to
protect foreign currency deposits against execution, attachment,
garnishment and other court processes.
 Obviously the purpose is to protect legitimate investors, so that
foreign investors would deposit their currency in the local banks,
enough to be utilized for banking purposes. This was not intended
 to protect transient individuals who do not intend to keep their
money in the bank for a long time.
 Keeping the foreign currency deposits of the accused away from
the processes of our courts would be a grave injustice to a Filipino
citizen who was victimized by a tourist.
 Under Art 10 the obvious purpose of the law is right and justice
and where is justice when a foreigner who bastardizes a Filipino
citizen is allowed to protect himself by invoking our own law?
 The SC will not hesitate to deviate from the obvious language of
the law if only to serve the ends of justice.
In re adoption of Stephanie Garcia
 Petition for adoption filed by the natural father Mr. Catindig of an
illegitimate daughter Stephanie Nathy Astorga Garcia.
 The court granted the petition for adoption but the court fixed the
name of the child to be Stephanie Nathy Catindig.
 Mr. Catindig filed a motion for clarification praying that his daughter
should be allowed to use the surname of her biological mother
Garcia as her own middle name.
 The Court denied the request for the reason that there is no law
that allows the adopted child to use the family name of the mother
as the child’s middle name.
Supreme Court Ruling
 The purpose of adoption is for the benefit of the adopted child, to
elevate the status of an illegitimate child to that of a legitimate child.
 If a child is adopted, he now possesses all the rights and privileges
being enjoyed by legitimate children.
 Under the law, legitimate children use the surname of their
biological mother as their middle name
 It would be unjust that an adopted child who is supposed to enjoy
the same rights and privileges being enjoyed by legitimate children
to be discriminated by disallowing her to use the surname of her
biological mother as her middle name.
 If the law does not prohibit, it allows.
 Justice was served by allowing Stephanie to use as middle name
the family name of her mother.
ARTICLE 11
Customs which are contrary to law, public order or public policy
shall not be countenanced.
ARTICLE 12
A custom must be proved as a fact, according to the rules of
evidence.
ARTICLE 13
When the laws speak of years, months, days or nights it shall
be understood that years are of 365 days, months of 30 days,
days of 24 hours and nights from sunset to sunrise.
If months are designated by their name, they shall be computed
by the number of days which they respectively have.
In computing a period, the first day shall be excluded and the
last day included.
CONFLICT OF LAWS
ARTICLE 14
Penal laws and those of public security and safety shall be
obligatory upon all who live or sojourn in Philippine territory,
subject to the principles of public international law and treaty
stipulations.
Espouses the principle of generality of penal laws. Anyone who stays
in the Philippines is governed by our penal or criminal laws. In case
of violation, the offender may be prosecuted before our Philippine
courts.
While generality talks about “who is governed by our penal laws?”
territoriality pertains to jurisdiction. Hence, penal laws have force and
effect only within Philippine territory, subject to various exceptions .
(Art 2 RPC)
Subjective Territoriality principle
The country where the crime was started may have jurisdiction over
the crime even if the crime was completed in another country.
People v. Tulin
 Involves the crime of piracy involving a vessel somewhere in
Mindanao. The vessel was seized by the pirates and forcibly
brought to Singapore.
 While the vessel was in Singapore, a foreigner joined the pirates
and supervised the unloading of the petroleum products and
transferring them to another vessel.
 All the pirates, including the foreigner were arrested because they
returned to the Philippines.
 The foreigner went to the SC on the main argument that he cannot
be convicted of the crime because his alleged participation in the
piracy took place only in Singapore which is beyond the territorial
jurisdiction of the Philippines.
Supreme Court Ruling
 While it is true that the actual participation of the accused took
place in Singapore which is beyond the territorial jurisdiction of the
Philippines, it shall be noted that the crime started in the
Philippines when the vessel was forcibly seized by the pirates and
continued until the vessel reached Singapore.
 When the accused joined the pirates, his involvement was deemed
to be a continuation of the entire criminal process.
 The crime started in the Philippines but was completed in
Singapore and it doesn’t matter if his involvement only took place
in Singapore because he was part of the criminal process of piracy.
 One of the exceptions of the territoriality principle is when the
offender commits any of the crimes commit any of the crimes
against national security and the law of nations and piracy is
classified as crime against national security and law of nations.
Objective Territoriality principle
The country where the crime was completed may exercise
jurisdiction even if it was started outside.
US v. Bull
 Involves a shipment of some animals from Formosa (now Taiwan)
on board a certain vessel. The animals were treated inhumanely.
The manner by which the animals were treated allegedly violated a
certain law which penalizes inhumane treatment of animals.
 When they arrived in the Philippines, they were arrested but in
their defense, they advanced the argument that they cannot be
tried because the Philippine courts had no jurisdiction since the
crime was started and committed in Formosa.
Supreme Court Ruling
 While it is true that the shipment started in Formosa, it is also true
that the shipment entered in the Philippines and the crime was a
continuing offense and during the transport, the animals were
treated inhumanely.
 Since the crime which begun in Formosa was completed in the
Philippines, Philippine courts have jurisdiction to try and convict
the offenders.
The Philippines adhere to both subjective and objective principles
Take note of the exceptions of Article 2 of RPC
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.
Espouses the nationality theory.
Filipinos are governed by their national law on matters relating to
family rights and duties, status, condition and legal capacity
regardless of whether they are in the Philippines or abroad.
Legal capacity, condition, family rights and duties, status, etc. are
governed by the laws of the country where the party is a national.
Examples: If you are married in the Philippines, you will still be
married when you are abroad; When you are a minor in the
Philippines, you remain to be a minor.
Does article 15 apply also to foreigners? So that foreigners when
they come here, matters concerning their family rights, duties, status
and legal capacity should also be governed by their own national law?
Say if a 15 year old German comes here where 15 is the age of
majority in Germany, can he be considered of age when the age of
majority is 18 in the Philippines?
What law governs personal status of foreigners?
Art 15 applies as well to foreigners even if literally it mentions only
Filipinos. Hence, just like Filipinos who are governed by Philippine
laws wherever they may be, foreigners insofar as family rights, duties,
status, condition, or legal capacity, are also governed by their own
national law even if they are in the Philippines.
Recto v. Harden
 Atty. Recto, a prominent lawyer happens to represent a client who
is an American citizen, Mrs. Harden. His services were engaged
by Mrs. Harden to protect her interests in some properties in the
Philippines. This was resorted to by Mrs. Harden preliminary to her
petition for divorce against her husband in the US.
 In their contract, Mrs. Harden agreed to pay Atty Recto
professional fees. After rendering his professional services, Atty
Recto collected his fees as stipulated in the contract.
 Mrs. Harden refused to pay the stipulated attorney’s fees.
 This prompted Atty Recto to go to court and file an action to collect.
 In refusing to pay, Mrs. Harden argued that the stipulations in the
contract cannot be validly enforced because the contract is void for
it was entered into in connection with the divorce that she filed
against her husband in the States. Hence, since divorce was
involved, the contract is void because divorce is against public
policy in the Philippines.
Supreme Court Ruling
 SC ruled in favor of Atty Recto.
 Contract of professional service was not entered into in connection
with the divorce. The contract was to protect the interests of Mrs.
Harden in relation to her properties in the Philippines.
 Even assuming that the contract was entered into in connection
with a petition for divorce, it does not follow that the contract is void
insofar as Mrs. Harden is concerned. She is an American citizen
and insofar as validity of divorce, she is governed by her own
national law. Since divorce is valid in the US, the contract shall be
valid insofar as Mrs. Harden is concerned.
 Art 15 applies as well to foreigners even if literally it mentions only
Filipinos so that like Filipinos who are governed by Philippine laws
wherever they may be, foreigners insofar as family rights, duties,
status, condition, or legal capacity, are also governed by their own
national law even if they are in the Philippines.
Van dorn v. Romillo
 A foreigner and a Filipina, and a divorce decree was obtained in
the US.
 After obtaining the divorce, the husband returned to the Philippines
and filed an action, in his capacity as the husband of the wife, that
he be allowed to administer the properties which he claimed to be
belonging to the conjugal partnership.
 The wife said that he cannot anymore file the action for he is no
longer her husband pursuant to the divorce decree obtained.
 The husband argued that the divorce decree cannot be
recognized in the Philippines because Philippines does not
recognize divorce, it being against public policy. Hence, he
remains to be her husband.
Supreme Court Ruling
 Being a foreigner, the husband is governed by his own
national law and being a US citizen, divorce is recognized and
therefore, the divorce decree obtained in the US validly binds
the husband.
 Insofar as Philippine law is concerned, he is no longer the
husband of the Filipina wife.
 The SC did not rule on the validity of divorce insofar as the
Filipina wife was concerned but on the validity of divorce on
the part of the American husband pursuant to the nationality
theory.
Imelda Pilapil v. Ibay Somera
 A couple, German and a Filipina. The German husband obtained a
divorce decree before the German courts.
 After the divorce was obtained, the husband returned to the
Philippines, and when he discovered that while they were still
married, the wife played fire with another man, he sued for adultery.
 The wife argued he cannot anymore institute the criminal action for
adultery because under Philippine laws, the private offended party
in the crime of adultery is the husband and since the German
cannot anymore be considered as her husband at the time of the
institution of the action as a result of the divorce obtained, he has
no personality to institute the action for adultery.
Supreme Court Ruling
 The legal personality to institute a criminal action for adultery
should be determined at the time of the filing of the action. Since
the husband is governed by his own law, the divorce decree that
he obtained in Germany should be considered as valid insofar as
he is concerned,
 Since the divorce is valid, the husband then cannot anymore be
considered as an offended husband.
Exceptions:
Where legal capacity is not governed by Article 15
1. When the contract involves property.
The legal capacity of the parties concerned is to be
determined by the law of the place where the property is
located. While status or legal capacity is generally
governed by the national law of the individual, this is not so
when the status concerns itself with a contract involving
property.
Distinguish ordinary contract from a contract of property:
Ordinary contract - A contract which does not involve
property = Article 15 applies (Nationality Theory)
Contract involving property = Article 16 applies (Lex Rei
Sitae)
Example: Can a 15 year old German buy a property in the
Philippines? (He is of age in Germany but is still a minor in
the Philippines)
No. Article 16 and not 15 shall apply. Pursuant to Art 16,
all matters concerning the contract involving property shall
be governed by the law of the country where the property
is located. Hence, the legal capacity of the German to buy
property shall be governed by Philippine laws, and under
our laws the age of majority is 18.
2. When it involves the legal capacity of an heir to inherit
from a decedent.
Example: If you are a Filipino and your father is a German
national, the issue of whether or not you are entitled to
inherit from your German father is not determined by your
national law.
The legal capacity of an heir to inherit Art 1039 is
governed by the national law of the decedent. Hence,
German laws shall apply, by way of exception to Article 15.
3. When it involves the legal capacity of a testator to
make a will
In laws involving succession, legal capacity to make a will
is subsumed under extrinsic validity of a will, hence shall
be governed by Article 17 and 815
Example: When a Filipino citizen executes a will in Japan
leaving properties in the Philippines to his Vietnamese
girlfriend, the issue of whether or not he has the capacity
issue to execute the will is not determine by Philippine
laws but by Japanese laws where the will was executed.
4. When it involves the legal capacity to contract
marriage
Legal capacity to contract marriage is generally not
governed by Article 15 except if the party is a Filipino.
(Because then Art 15 nationality theory shall apply)
General rule: What law governs the capacity of a
contracting party to contract marriage (Art 17 lex loci
celebracionis shall apply)
nd
(Art 17 shall apply lex loci celebracionis, Art 26 2 par – if
a party is a Filipino)
ARTICLE 16
Real property as well as personal property is subject to the law
of the country where it is situated.
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.
st
1 paragraph: Espouses the principle of Lex Rrei Sitae.
If the transaction involves property, all components of transaction
shall be governed by Lex Rex Sitae (Law of the country where the
property is located)
Matters governed by of Lex Rei Sitae
1. Capacity of the contracting parties
2. Formalities of the contract involving properties
3. Intrinsic validity
4. Conveyances, prescription, easements, eminent domain,
accession, registration, title, possession
Exceptions:
1. If the issue involves succession, even if property is
nd
involved (2 par of Art 16)
a. Order of succession (Who should inherit first)
b. Amount of succession rights (How much is one
entitled to inherit)
c. Intrinsic validity of testamentary provisions
Shall not be governed by Lex Rei Sitae but by the national
law of the decedent (not the heir). (Art 15)
Do not confuse decedent with heir.
2. If the property is merely incidental to the transaction.
Example: When A and B enters into a contract involving
the design of A’s house because B is an interior designer.
The contract is entered into in Japan and the property is in
the Philippines. In Japan, 15 years old may validly enter
into a contract. But in the Philippines, a person should be
18 years old. Is the contract valid?
Yes. While the contract involves property, it being the
subject of interior decoration, the nature of the transaction
is merely a contract of service. The property merely being
incidental. (The property is not the subject of the contract
and it is not a contract involving the conveyance of a title
or property) Hence, it is just an ordinary contract.
Rule on ordinary contracts
 Capacity of contracting parties shall be governed by Art 15
(Nationality theory) and not Lex Rei Sitae because the
property involved is merely incidental.
Extrinsic validity of ordinary contracts – Art 17
Rule: If the contract involves property as the subject of the contract,
all aspects of the contract shall be governed by Art 16 Lex Rei Sitae.
But if it is an ordinary contract where property is merely incidental,
capacity – Art 15 while formalities – Art 17
Understand Art 16 in relation to Art 17
Laurel v. Garcia
 Involves a property popularly known as the Niponggo property
located in Japan which was ceded to the Philippine government by
way of compensation to the damage caused by Japan to the
Philippines during the war.
 During the time of Pres. Aquino, that Niponngo property has been
abandoned by the govt. The government thought of disposing the
Niponggo property so the proceeds will be used in pursuit of the
CARP.
 The intended sale was met by objections invoking the national
patrimony clause of the Constitution, saying that the property is so
valuable and historical value.
 Issue: Whether or not the Niponggo property can be validly sold to
a third party?
 The opposition argued that under the Civil Code provisions,
Niponggo property was considered part of the public domain
because it was intended for some public service. Hence, it cannot
be subject to a contract and beyond the commerce of man.
 The govt argued that the classification of the Niponggo property as
part of the public domain is based on the provision of the Civil
Code and such provision finds no application because the property
subject of the intended sale is located in Japan, hence lex rei sitae
applies and the issue if it can be validly disposed of shall be
determined by Japanese laws.
Supreme Court Ruling
 Lex Rei Sitae only applies only when the issue of the case involves
title or possession of property. In this case, there is no dispute as
to who owns the Niponggo property because it is established that it
belongs to the Philippine government. And since Lex Rei Sitae
cannot apply, Philippine laws should govern.
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 it is executed before the diplomatic or consular officials
of the RP in a foreign country, the solemnities established by
Philippine laws shall be observed in their execution.
Prohibitive laws shall not be rendered ineffective by laws or
judgments promulgated in a foreign country.
Lex loci celebracionis applies only insofar as the extrinsic validity of
contracts – forms and solemnities:
1. Whether the contract or will is in writing or verbal
2. Whether it should be notarized
3. Whether it should be witnessed by a number of witnesses
Hence, forms and solemnities of contracts shall be governed by the
law of the place where the contract is executed.
When the various stages of the execution of the contract took place
in different countries
Example: If the offer was made in one country and the acceptance
was made in another.
Art 1319, Contract is perfected by the meeting of the minds between
the contracting parties. Meeting of the minds takes place when the
offer is accepted and acceptance is communicated to the offeror.
Unless the acceptance is made known to the offeror, the contract
cannot be deemed perfected.
nd
1319 2 par When the offer and acceptance are made through
letters or electronic forms, the contract is deemed perfected at the
place where the offer was made.
For purpose of determining lex loci celebracionis: The law of the
place where the contract was executed is the place where the offer
was made.
Article 17 exclusively applies to the extrinsic aspect of the contract
and not to the intrinsic aspect (substantive aspects of the contract)
Intrinsic aspects
1. Effect
2. Terms and Conditions
3. Interpretation
4. Subject matter
What law governs intrinsic aspects of a contract?
Fundamental Rule: Liberality; Parties are free to establish the terms
and conditions and stipulations of the contract as they may deem
convenient, unless it is contrary to law, morals or public policy.
Hence, pursuant to the liberality of contract, our policy is to give
effect to the intention of the parties.
How does this liberality principle impact on the issue of intrinsic
validity of contracts for purposes of conflict of laws rule?
For purposes of conflict of laws, intrinsic validity of the contract
shall be governed by the:
1. Law intended by the parties (lex loci voluntatis)
This is determined by looking at the choice of law clause
(where the parties expressly indicate what law governs
their contract)
Limitations:
a. The parties cannot validly stipulate a specific law
which has nothing to do with the contract at all.
In the absence of a choice of law clause:
2. The law which the parties presumed to have agreed
upon. (lex loci intentionis)
When the contract is silent as to the choice of law of the
parties and when the intention cannot be determined in the
absence of the choice of law clause, you apply lex loci
intentionis.
This is determined by the most significant relationship
theory by examining the various significant components of
the contract. (e.g. parties, subject matter, terms and
conditions, performance, effects, considerations) and
determining as to which country these significant
components refer to.
Contract executed in the Philippines by two Japanese
involving a property in the Philippines and it be performed
in the Philippines, the effects of the contract takes place in
the Philippines and considerations paid in the Philippines.
(Obviously the most significant aspect of the contract
pertains to the Philippines, hence the law of the Phils shall
govern the intrinsic validity of the contract)
When the significant components are evenly distributed to
the countries involved:
3. The law of the country where the contract is likely to
be upheld as valid.
Consistent with the principle of liberality of contract.
Stages of contract
1. Negotiation
2. Perfection
3. Execution
In the examination be specific of your answer
1. Is the contract valid?
There are various components to consider because
validity of a contract may refer to various aspects which
are governed by various laws.
Valid as to the:
a. Capacity of contracting parties
b. Forms and solemnities
c. Intrinsic aspect
First: Determine the nature of the contract whether ordinary or
contract of property:
 If ordinary:
Legal capacity – Art 15
Extrinsic – Art 17
Intrinsic – Either voluntatis (choice of law clause) or intentionis
(most significant relationship theory)
 If contract of property:
Legal capacity, extrinsic & intrinsic – Art 16
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.
CHAPTER II
HUMAN RELATIONS
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.
Principle of Abuse of rights
The principle embodied in this article. Refer to acts performed which
are not illegal but nevertheless make the actor liable for damages, if
in so exercising his right, his purpose is to prejudice or injure another.
The absence of good faith is essential in abuse of rights.
Elements:
1. There is a legal right or duty
2. Which is exercised in bad faith
3. For the sole intent of prejudicing or injuring another.
What happens if a person fails to comply with Article 19
Abuse of rights – an actionable wrong (the aggrieved party may
demand for compensation by way of damages)
How to recover damages?
The claim for damages under Art 19 is premised on either Article 20
or Article 21
Breach of promise to marry
An act which Article 21 seeks to remedy.
Rule: Depends on two distinct situations:
1. When there is carnal knowledge
2. When there is no carnal knowledge
With sexual intercourse
1. If it results to pregnancy – compelled to acknowledge
paternity and support to child
2. If wedding preparations have been spent by the aggrieved
party – actual damages
3. If the sexual intercourse was coupled with seduction/deceit,
were it not for the offer of promise to marry, the woman
would not have allowed herself to be deflowered by the
man – moral damages.
Except: If the sexual intercourse is because of the mutual
lust of the two parties, there can be no seduction and the
woman cannot ask for moral damages.
The promise to marry should be proximate cause of the sexual
intercourse.

Article 20 and 21 – Expressly provides the remedy available for the With no sexual intercourse:
aggrieved party – right to recover damages to compensate the injury 1. The aggrieved party may ask for damages by way of
suffered; tort provisions of the civil code – tort actions. actual damages (wedding preparations, etc)
2. Moral damages can be recovered if the one who breached
Two kinds of tort: the promise is guilty of bad faith (intention is to purposely
Action based on either Art 20 or 21 is called a tort action. injure the sensibilities of the other)
1. Spanish tort – quasi-delict (Art 2176 anyone who acts Except: If the backing out from the marriage is done out of
through fault or negligence causing damage to another good faith.
shall indemnify the latter for the same. Refers to negligent
acts and never to intentional acts) Damnum Absque Injury (Damage without injury)
2. American tort – intentional tort (Art 21 Any person who Not in all instances that when a party is aggrieved, a tort action may
willfully causes damage to another in a manner contrary to prosper because the award of damages does not just depend on the
morals, good customs, public policy shall indemnify for the existence of the damage but the existence of a violation of a duty.
damage caused. Hence it shall be determined from the viewpoint of the victim and the
supposed offender.
Tort – any wrongful act which causes damage to another and can
either be negligent or intentional act. When right is exercised in good faith and causes damage to another,
he cannot be held liable.
How to distinguish tort from crime? If damages result from the exercise of one’s legal rights = No liability
An act or omission may be a tort and not a crime, may be a crime but
Manila Doctors v. Vicky Ty
not a tort but may be both tort and crime.
 Involves hospital patients, mom and sister of Robelyn
 The hospital expenses ballooned that she could no longer pay.
 Despite repeated reminders, when Robelyn could not update the
CRIME TORT
account, the hospital reminded them to either consider the patients
as outpatients since they are already cleared for discharge or if
they want to stay, the hospital will have to downgrade the
There is a law that punishes the An actionable wrong not defined accommodation.
act or omission. by a specific law but by general  Robelyn failed to pay and the hospital was forced to downgrade
principles of tort the accommodation. Ref, aircon, tv and telephone were cut.
 Robelyn sued for damages against the hospital and management
Offended party is the state Offended party is the complainant claiming that the hospital abused its rights
 Issue: Whether or not Robelyn can claim damages under the
Seeks penalty by way of fine or Seeks compensation by way of principle of abuse of rights.
imprisonment recovery of damages
Supreme Court Ruling
 Damnum Abque Injuria – While we can only sympathize with the
inconvenience that the family suffered as a result of the
Example of a tort but not a crime downgrading of the accommodation, but this does not give them
1. Art 21 e.g. Breach of promise to marry the right to ecover for damages.
 It is within the right of the hospital to downgrade the
Example of a crime but not a tort accommodation. Hospital, while it is being impressed with public
1. Illegal possession of firearm interest, is also a business that has to sustain its economic viability
for it to survive.
Distinguish Article 20 from 21  The facilities cut off were non-essential medical facilities, while
they may cause inconvenience, they did not in any way prejudice
or jeopardize the condition of the patients.
 The award of damages presupposes two things:
ARTICLE 20 ARTICLE 21
1. The existence of the damage
2. The act of the defendant being violative of the right of the
plaintiff
Nature of the act Act or omission covers Act or omission covers
or omission both negligent and only intentional acts.
Nikko Hotel Manila Garden
intentional acts.
 Amay Bisaya was having coffee at the Nikko Garden hotel when
he met a friend carrying a bag of fruits.
 After a brief conversation, his friend told him that he will be
What makes the Act or omission is Contrary to morals, attending party at the penthouse. Sensing the opportunity to
act actionable contrary to law. public policy, or good gatecrash, Amay Bisaya carried the basket and went to the
customs penthouse and acted as if he was an invited guest.
 During dinner, the organizer noticed the presence of Amay Bisaya
and told Amay Bisaya to leave the party.
ARTICLE 20  Bisaya made a scene causing commotion.
Every person who, contrary to law, willfully or negligently  Bisaya filed an action for damages against the hotel and the
causes damage to another, shall indemnify the latter for the organizer.
 Issue: Whether he is entitled to damages because of the alleged
same.
damages he suffered when he was asked to leave.

ARTICLE 21 Supreme Court Ruling

Any person who willfully causes loss or injury to another in a  The fact that one may have suffered damage, doesn’t mean that
manner that is contrary to morals, good customs or public the aggrieved party is entitled to damages.
policy shall compensate the latter for the damage.  The award for a tort action is based on 2 conditions:
1. The existence of the damage
 2. The act of the defendant being violative of the right of the
plaintiff
 There is no evidence that the organizer had maliciously intended
to embarrass him. Damnum Absque Injuria.
ARTICLE 22
Every person who through an act or 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.
Unjust enrichment
No one shall be unjustly enriched at the expense of another. (Nemo
cum alterius detrimento locupletaro potest)
Accion in rem verso – When something is received when there is
no right to demand at the expense of another.
Solutio Indebiti – When something is received when there is no
right to demand it, it being delivered by mistake, duty to return arises.
Difference:
1. In accion in rem verso, the delivery of the property was
done voluntarily and intelligently while in solution indebiti,
the property was delivered by mistake.
Rule if one finds a lost property:
1. Obligated to the owner if the owner is known. If the owner
is not known, return it to the municipal mayor where the
finding took place.
Failure to return a lost property:
Can be convicted of the crime of theft
Duty of the city or municipal mayor:
1. Announce to the public the finding of the lost item in a
manner he deems fit.
2. If the property is perishable, it must be sold at a public
auction and the proceeds kept after the owner comes for it.
3. If the property is not perishable, and after 6 months no
owner came to claim it, the property shall be delivered to
the finder who now becomes the owner. (Art 719)
4. Art 720 the law provides 10% of the value of the property
to the finder.
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.
Another provision subsumed in the context of unjust enrichment.
Even if you committed no wrong, you are civilly liable to indemnify if
you derived some benefits.
Example:
Without A’s knowledge, a flood drives his cattle to the cultivated
highland of B. A’s cattle are saved but B’s crops are destroyed. A
was not at fault, but he was benefited. Hence, he should indemnify B.
Article 23 closely related to Art 432
Art 432 Doctrine of necessity or complete privilege
The owner of a property has no right to prevent interference by
another of his property, if the interference is necessary to avert an
imminent danger and the imminent danger if compared to the
damage, is greater. The person who was benefited is obligated to
indemnify for the damage caused.
Example:
A fireman destroying a nearby house to gain access to the
subdivision. The nearby property is destroyed to avert a greater evil,
being the destruction of houses inside the subdivision due to the fire.
Destroy one house to save many.
ARTICLE 23 ARTICLE 432
Because of the benefit derived, the obligation to indemnify arises
Need not distinguish whether the The evil sought to be avoided must
evil sought to be avoided is greater be greater than the damage
than that suffered by the plaintiff. caused.
In order for doctrine to necessity to apply:
1. The party who invokes doctrine of necessity must be free
from any fault or negligence
2. The property subject of interference must not be the cause
of the evil sought to be avoided.
People of the Philippines vs. Vicky Ty
 Criminal case of Manila Doctors Hospital v. Vicky Ty.
 When the mother of Vicky Ty was detained in the hospital unless
the hospital bills are paid, she was constrained to issue postdated
cheques to pay for the hospital bills.
 When the postdated cheques were presented for payment, all of
them bounced for insufficiency of funds.
 She was prosecuted for violation of PB Blg 22
 By way of defense, she argued, invoking the doctrine of necessity
that she was only forced to issue the bouncing cheques in order to
avoid a greater evil, the deteriorating condition of her mother n her
continued detention in the hospital unless the bills are paid.
Supreme Court Ruling
 For doctrine of necessity to apply, it is essential that the party
invoking it must not be guilty of some fault or negligence and he
must not be the very cause of the evil sought to be avoided,
otherwise it would result to awarding the wrongdoer.
 The alleged greater evil sought to be avoided is the feared
deterioration of her mother’s health condition should the hospital
refuse to discharge the patient but this feared evil was created by
Vicky Ty herself when she failed to pay the bills as stipulated in the
contract.
 Being responsible for the evil sought to be avoided, Vicky Ty
cannot invoke the doctrine of necessity.
 Doctrine of necessity and Art 23 can only be invoked when the
party is not guilty of fault or negligence.
Art 436 If a property is destroyed or otherwise condemned in the
interest of public health, safety and security, the owner of the
property is not entitled to compensation because the destruction is
only an exercise of the police power of the government.
When property is dangerous, offensive, poses threat to the safety
and health of the public, it may be destroyed without payment of
compensation and the persons who benefited out of it are not liable
for indemnity.
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.
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.
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 may not constitute a
criminal offense, shall produce a cause of action for damages,
prevention and other relief.
ARTICLE 27
Any person suffering material or moral loss because a public
servant or employee refuses or neglects, without just cause, to
perform his official duty may fi le an action for damages and
other relief against the latter, with-out prejudice to any
disciplinary administrative action that may be taken.
ARTICLE 28
Unfair competition in agricultural, commercial or industrial
enterprises or in labor through the use of force, intimidation,
deceit, machination or any other unjust, oppressive or high-
handed method shall give rise to a right of action by the person
who thereby suffers damages.
INSTITUTION OF CIVIL ACTIONS
An act or omission may be both a crime and tort.
Crime – Penalty (fine/imprisonment)
Tort – Recovery of damages
Civil liability may take the form of: (Art 104 RPC)
1. Restitution (return of the property stolen)
2. Reparation of damage caused (value of the property stolen)
3. Indemnification of consequential damages (value of the
unearned salary)
How to pursue civil liability?
Through civil action

SOURCES OF CIVIL LIABILITY
Civil action to enforce civil liability may be based on either of these 5
Article 100 RPC Every person criminally liable is civilly liable
Violation of constitutional rights of another
makes one liable for damages regardless of a
Article 32 NCC criminal action that may be filed. This civil
action is separate and distinct from the
criminal action.
In cases of defamation, fraud, physical injury,
Article 33 NCC a separate civil action may be filed against
the person responsible.
When a member of the police fails to render
aid or protection to any person in case of
Article 34 NCC danger to life or property, a separate civil
action may be filed against the police officer.
Anyone who causes damage to another
Article 2176 NCC through fault or negligence, there being no
contractual relations between them, shall be
liable for damages. (Quasi-delict)
INSTITUTION OF A CIVIL ACTION TO PURSUE CIVIL LIABILITY
The rule depends on whether the civil action is dependent or
independent.
DEPENDENT CIVIL ACTIONS
Those actions which are based only on Art 100 of the Revised Penal
Code. They are dependent on the outcome of the criminal case.
RULES:
A civil action arising from a crime may be waived, reserved or filed
ahead of the criminal action by the offended party:
1. When the civil action arising from a crime is not waived,
reserved nor filed ahead of the criminal action by the
offended party:
Rule: The civil action is deemed impliedly instituted in the
criminal action.
Hence, criminal action carries with it the civil action even the
case # is only one. There will be two proceedings lobbed
together in one case. There are two lawyers: the prosecutor
and the private lawyer and the two cases will be tried
together.
When the accused is convicted:
It follows that the accused is also civilly liable.
When the accused is acquitted:
 Beyond reasonable doubt (Art 29)
- If the acquittal of the accused is based on
reasonable doubt (evidence is not sufficient to prove
that he is guilty but could actually be), the court may
still adjudge the accused civilly liable even if not
criminally liable because of the lesser quantum of
evidence in a civil case which is just preponderance.
 Innocent
- If the acquittal is based on complete innocence,
there will be no civil liability because it has no leg to
stand on.
2. When the civil action is waived by the offended party:
Rule: The offended party should make the waiver before
the presentation of evidence of the prosecution.
Effect if no waiver is made before presentation of evidence:
The civil action is deemed impliedly instituted in the
criminal action.
Effect is waiver is timely made:
The civil action cannot anymore be pursued by the private
complainant. So if the accused is found guilty is the
criminal case, he cannot anymore file a civil action to
recover civil liability because of the waiver made.
3. When the civil action s reserved by the offended party:
Rule: The offended party should make an express
reservation before the presentation of evidence of the
prosecution.
The private complainant may choose not to participate in
the criminal case but he may choose to pursue a civil
action,
Effect if no reservation is made before presentation of
evidence:
The civil action is deemed impliedly instituted in the
criminal action.
Effect if reservation is timely made:
The civil action shall be suspended at any stage of the trial
to await the outcome of the criminal action. It cannot
proceed independently. It has to wait until the criminal
case is decided and in that criminal case, he is not allowed
to participate because it is a purely criminal case and he
has already reserved the civil action.
When the accused is convicted:
Offended party may now continue with the civil action
earlier reserved.
When the accused is acquitted:
 Reasonable doubt – Civil action earlier reserved may
be pursued.
 Innocence – The civil action reserved may not
anymore continue.
4. When the civil action is filed ahead of the criminal
action by the offended party
There is no rule that prohibits the offended party from filing
the civil action ahead even if it is dependent on the
criminal action.
 When the prosecutor who has the duty to determine
whether to file a criminal case or not, because of the
maneuvering of the defense counsel, will take time to
decide whether or not to proceed with the criminal
case. Hence, the preliminary investigation will take
some time. If this happens, the private complainant
may go ahead with the civil action.
 Or after evaluation of the evidence, the prosecutor is
convinced that there is no basis to go forward with the
criminal case leading to the dismissal. The private
complainant, however, believes that there is
preponderance of evidence to prove civil liability, he
may go ahead with his own civil action even if it is
dependent.
What happens if the private complainant filed the civil
action ahead of the criminal action, but eventually while
the civil action was pending, the prosecutor filed the
criminal action?
1. The civil action shall be suspended at any stage of
the proceedings (because the civil action is
dependent on the criminal action) so long as no
judgment has yet been rendered.
If suspended: Apply the rule on reservation
2. The civil action which was filed ahead may be
consolidated with the criminal action belatedly filed.
INDEPENDENT CIVIL ACTIONS
Those which are filed based on Art 32, 33, 34 and 2176 of the Civil
Code. By nature, they are not dependent on the outcome of the
criminal action.
Example: Murder (a crime involving physical injury as per Art 33 and
an independent civil action may be filed)
Civil action as per Art 100 as well
Effect: One criminal action for fraud and two civil actions being
pursued by the private complainant.
1. Dependent civil action - Art 100 (Impliedly instituted in the
criminal action if not waived, reserved nor filed ahead)
2. Independent civil action – Art 33
Significance:
1. Since an independent civil action is simultaneously
pursued with the dependent civil action, in the criminal
action where the civil action is deemed impliedly instituted,
the private offended party may still actively participate in
the criminal action.
2. The offended party may also pursue the independent civil
action.
Common mistake of lawyers:
When the private offended party participates in the criminal case, the
defense would normally move for the disqualification of the lawyer
because the private offended party has no more legal personality to
participate in the criminal action due to the independent civil action
filed. WRONG.
Because these are two civil actions. Hence, he may participate in the
criminal case where the civil case pursuant to Art 100 is impliedly
instituted and he may also pursue an independent civil action.
Are two civil actions allowed?
Though the objective is the same which is to recover damages, but
pursued differently in two distinct civil actions, the rule does not
prohibit simultaneous remedies. What is prohibited is DOUBLE
RECOVERY.
When the accused is convicted;
1. It will not be of any effect to the independent civil action
When the accused is acquitted:
1. Reasonable doubt – independent civil action may continue
2. Innocence – independent civil action may continue
Take Note: The rule that acquittal based on pure innocence bars a
civil action is true only to a civil action anchored on Art 100
(dependent civil action), and not to independent civil actions.
ARTICLE 29
When the accused in a criminal prosecution is acquitted 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 action requires only a preponderance of
evidence.
ARTICLE 30
When a separate civil action is brought to demand civil liability
arising from a criminal offense, and no criminal proceedings are
instituted during the pendency of the civil case, a
preponderance of evidence shall likewise be sufficient to prove
the act complained of
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.
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 the rights and liberties of another
person shall be liable to the latter for damages.
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.
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 complainant may
bring a civil action for damages against the alleged offender.
Such civil action may be supported by a preponderance of
evidence.
ARTICLE 36
Prejudicial 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 convict with the
provisions of this Code.
Prejudicial Question
A question that arises from a civil action which is similarly connected
to the criminal action, such that the resolution of the issue of the civil
action s determinative of whether or not to proceed with the criminal
action.
Two cases filed; 1 criminal and 1 civil
For this to apply: It is necessary that the civil case be filed ahead of
the criminal case.
Isabelo Apa v. Judge Romuldo Fernandez
 Civil case filed by the plaintiff against the defendant involving a
piece of land.
 Plaintiff seeks to recover the property being occupied by the
defendant claiming that he is the owner.
 The defendant also claims that he owns the land.
 Issue: Who is the rightful owner of the land?
 During the pendency of the civil case, plaintiff filed a criminal case
for violation of anti-squatting law against defendant.
 Defendant claimed that he cannot be prosecuted because he is the
owner of the property.
 The accused in the criminal case moved for the suspension of the
criminal case be suspension to await the decision of the civil case
on the ground of prejudicial question.
Supreme Court Ruling
 If the in civil case it s determined that the defendant is really the
owner of the property in question, he cannot be prosecuted for anti-
squatting law
 The resolution of the issue of the civil case is determinative of the
issue of the criminal case.
 Criminal case has to be suspended.
While the issue in the civil case is intimately connected with the civil
case,
No prejudicial question
A (husband) contracted marriage with B and while the marriage was
still subsisting, A contracted a second marriage with C. A filed an
action for annulment of the first marriage on the ground that his
consent was vitiated. When the second wife knew of the first
marriage, she filed a bigamy case against the husband.
The accused moved for the suspension of the criminal case on the
ground of prejudicial question. If the court declares that the first
marriage is void, he cannot be prosecuted of bigamy.
Supreme Court Ruling: Even assuming that the first marriage is
voidable, the fact remains that the husband contracted a second
marriage before the former was annulled. And a voidable marriage is
valid until annulled.
Take Note:
This is a case where while the issue in the civil case is intimately
connected with the issue in the criminal case, and yet no prejudicial
question arises because the resolution of the civil case issue for
annulment is not determinative on whether or not to proceed with the
criminal case.
 BOOK 1 PERSONS
TITLE 1 CIVIL PERSONALITY
CHAPTER 1
GENERAL PROVISIONS
Civil Personality – The state of being a person. A person has civil
personality.
Two Kinds of Persons:
1. Natural Persons
2. Juridical Persons (Corporations, partnerships, etc.)
When does civil personality start?
Civil personality commences at birth. When one is born, he is
deemed to be a person.
Consequences when a person is born and deemed a person:
He has the inherent juridical capacity (Fitness to be subject of a
juridical relation – endowed with rights and obligations)
But not all persons have capacity to act (power to do acts with legal
effects)
Does it follow that an unborn child is not a person and has no
civil personality?
Art 40 an unborn child is deemed a person even if he is not yet born,
but only in its restricted sense, because this only apply for purposes
favorable to the unborn child. Hence, he is considered a person and
has juridical capacity and therefore has some rights:
Requisites:
 Juridical capacity must be favorable to the unborn child
 Shall be born
When shall a child be deemed born?
Art 41 Alive the moment it comes out of the maternal womb
Less than 7 months of intra-uterine life – shall be alive 24 hours after
it is born
Effect if a juridical transaction is entered into favorable to the
unborn child and dies before birth
Does not comply with conditions of Art 41
Effect: The presumptive civil personality will not ripen into a full civil
personality. Hence, the transaction will not have any legal effect.
Geluz v. Court of Appeals
 Action for damages filed by a father against a doctor who performed
3 abortions on his wife.
 Issue: Whether or not the husband has the cause of action to
recover damages arising from the death of the fetus
Supreme Court
 Only he who suffered injury has the right to recover damages and
not anyone else. If the victim died, the action may be pursued by the
heirs.
 In this case, the fetus died while it was still inside the womb, it did
not become a person because it was not born, and it did not have
any right and when it died, it transmitted nothing to the parents.
 It does not follow however that the father cannot claim damages at
all, but not on behalf of the child, but due to his anxiety and
frustration from parental expectation.
 The father failed to prove moral damages arising from the abortion.
He did not appear to be suffering from the agony of the death of his
child.
Do not confuse civil liability with life:
Civil personality – starts at birth
Life – begins at conception
It is not accurate to say that only a person can die; that only those
who were born can die. Even if a fetus is not yet born, it can die.
Steel Manufacturing Corp v. Accredited Voluntary Arbitrator
 Claim for bereavement benefit filed by a father by reason of the
collective bargaining agreement between t he union of which the
father is a member being an employee of the company.
 The company entitles the employees to bereavement benefit in case
of death of any dependent
 When his wife suffered a miscarriage and his unborn child died, he
claimed for his bereavement benefit.
 But this was refused by the company because of the contention that
the dependent contemplated under the collective bargaining
agreement refers to a dependent who was born. So the fetus cannot
be a dependent because it did not become a person and only a
person can die.
Supreme Court Ruling
 The company if obviously confusing life with civil personality. Civil
personality commences at birth, while life begins at conception.
Civil personality is extinguished by death
And all his rights and obligations die with him.
3 presumptions governing death:
1. Presumption of death (Rule 131 RRC Sec 3 par W)
When the dead body cannot be found – A person may be
considered dead when the presumption applies:
It arises when:
 Someone disappeared without trace; his whereabouts
unknown
Rule:
 Disappearance under ordinary circumstance:
Presumption of death: 7 years of absence
Succession: 10 years before his estates can be divided by
the heirs (Except: When the father disappeared after the
age of 75 – absence of 5 years only)
Remarriage: 4 years
 Disappearance under extraordinary circumstances
when there is danger of death

Presumption of death: 4 years of absence
Remarriage: 2 years
Applies only in the absence of evidence to prove the fact of death.
Otherwise, when there is enough preponderance of evidence, that
the person who disappeared really died, the presumption does not
apply.
Eastern Shipping Lines v. Josephine Lucero
 Lucero is captain of a vessel and his services were engaged by
the company on a voyage, Philippines to Hongkong and back.
 Under the contract, his wife shall be the allottee of his salary.
 But the vessel encountered huge waves brought about by the
typhoon.
 Captain Lucero sent distress messages to the company, the last
message being that the crew are ready to abandon the ship.
 Everyone accepted that Lucero is already dead, except the wife.
 She argued that contract shall only be terminated upon the arrival
of the vessel to the Philippines and because the vessel has not yet
arrived, she shall continue to receive the salary of the husband.
 She also contended that her husband cannot be presumed dead
because the presumptive period of death of 4 years has not yet
expired.
Supreme Court Ruling
 The rule on the presumption of death applies only when there is
absence of evidence to prove the fact of death.
 In the case at bar, there is preponderance of evidence that the
captain really died when the vessel capsized.
 The rule on presumption does not apply, but the preponderance.
Victory Shipping Lines v. Workmen Compensation Commission
 Involves a crew of a vessel soundly asleep when they were
suddenly awakened by the fire that engulfed the vessel.
 Instinctively, he jumped and has been heard of since then.
 Father filed an action to collect the death benefits arising from the
death of his son. The Commission granted but the company
appealed the decision arguing that it was still premature for the
father to claim the death benefit because the period provided for
under the law where the son can be presumed dead has not yet
expired.
Supreme Court Ruling
 The rule on presumption of death because there is preponderance
of evidence that the son really died when he jumped off the vessel
during the fire.
2. Presumption of survivorship (Rule 131 Sec 3 par JJ)
Do not confuse with paragraph KK
When two persons died, the crucial issue is who of them
died first?
Survivorship is determined from the probabilities resulting
from the strength and age of the sexes:
1. Under 15 and over 60 – the younger died later
2. Both are under 15 – older died later
3. Over 60 – younger died later
4. Under 15 or over 60; between 15 and 60 – the latter
died later
5. Over 15 and under 60; male died later; older died
later (same sex)
3. Presumption of simultaneity in death (Art 43 NCC Rule
131 Sec 3 par KK)
Involves succession.
When there is doubt as to who between two persons who
are called to succeed each other died first, he who alleges
the death of the other shall prove the same. In the
absence of proof, they are deemed to have died at the
same time and there shall be no transmission of rights.
 Example: Prenuptial agreement (separation of property
regime) Property acquired by one shall only be owned by
one.
Supposed Effect if they died at the same time:
No succession takes place.
ARTICLE 43
If there is a doubt, as between two or more persons who are
called to succeed each other, as to which of them died first,
whoever alleges the death of one prior to the other, shall prove
the same; in the absence of proof, it is presumed that they died
at the same time and there shall be no transmission of rights
from one to the other.

Presumption of survivorship Presumption of simultaneity CHAPTER 3

JURIDICAL PERSONS

Considers the issue of who Considers the issue of who died ARTICLE 44
died first WITH regard to sex or first WITHOUT regard to sex or The following are juridical persons:
age. (e.g. insurance) age. (1) The State and its political subdivisions;
(2) Other corporations, institutions and entities for public
interest or purpose, created by law; their personality
Applies for purposes OTHER Applies for the purpose of begins as soon as they have been constituted according to
THAN succession succession law;
(3) Corporations, partnerships and associations for private
interest or purpose to which the law grants a juridical
POINTERS personality, separate and distinct from that of each
100 points shareholder, partner or member.
20% MCQ
80% ESSAY Take various positions and defend. Do not repeat the
facts. Answer with justification. Read the cases. ARTICLE 45
Juridical persons mentioned in Nos. 1 and 2 of the preceding
TOPICS article are governed by the laws creating or recognizing them.
1. Prospectivity and retroactivity
2. Effects of unconstitutionality Private corporations are regulated by laws of general
- Doctrine of operative fact application on the subject. Partnerships and associations for
3. Conflict of laws private interest or purpose are governed by the provisions of
4. Human relations this Code concerning partnerships.
- Unjust enrichment
- Solution indebiti ARTICLE 46
- Accion in rem verso Juridical persons may acquire and possess property of all
- Soctrine of necessity kinds, as well as incur obligations and bring civil or criminal
- Breach of promise to marry actions, in conformity with the laws and regulations of their
5. Institution of civil actions organization.
- Dependent and independent civil actions
6. Juridical civil personality ARTICLE 47
7. Presumption of death Upon the dissolution of corporations, institutions and other
entities for public interest or purpose mentioned in No. 2 of
ARTICLE 37 Article 44, their property and other assets shall be disposed of
Juridical capacity, which is the fitness to be the subject of legal in pursuance of law or the charter creating them. If nothing has
relations, is inherent in every natural person and is lost only been specified on this point, the property and other assets shall
through death. Capacity to act, which is the power to do acts be applied to similar purposes for the benefit of the region,
with legal effect, is acquired and may be lost. province, city or municipality which during the existence of the
institution derived the principal benefits from the same
ARTICLE 38
Minority, insanity or imbecility, the state of being a deaf-mute, TITLE II
prodigality and civil interdiction are mere restrictions on CITIZENSHIP AND DOMICILE
capacity to act, and do not exempt the incapacitated person
from certain obligations, as when the latter arise from his acts ARTICLE 48
or from property relations, such as easements. The following are citizens of the Philippines:
(1) Those who were citizens of the Philippines at the time of the
ARTICLE 39 adoption of the Constitution of the Philippines
The following circumstances, among others, modify or limit (2) Those born in the Philippines of foreign parents who, before
capacity to act: age, insanity, imbecility, the state of being a the adoption of said Constitution, had been elected to
deaf-mute, penalty, prodigality, family relations, alienage, public office in the Philippines
absence, insolvency and trusteeship. Capacity to act is not (3) Those whose fathers are citizens of the Philippines
limited on account of religious belief or political opinion. (4) Those whose mothers are citizens of the Philippines and,
upon reaching the age of majority, elect Philippine
CHAPTER 2 citizenship
NATURAL PERSONS (5) Those who are naturalized in accordance with law

ARTICLE 40
Birth determines personality; but the conceived child shall be
considered born for all purposes that are favorable to it,
provided it be born later with the conditions specified in the
following article.
ARTICLE 41
For civil purposes, the foetus is considered born if it is alive at
the time it is completely delivered from the mother’s womb.
However, if the foetus had an intra-uterine life of less than
seven months, it is not deemed born if it dies within twenty-four
hours after its complete delivery from the maternal womb.
ARTICLE 42
Civil personality is extinguished by death.
ARTICLE 49
Naturalization and the loss and reacquisition of citizenship of
the Philippines are governed by special laws.
ARTICLE 50
For the exercise of civil rights and the fulfillment of civil
obligations, the domicile of natural persons is the place of their
habitual residence.
ARTICLE 51
When the law creating or recognizing them, or any other
provision does not fi x the domicile of juridical persons, the
same shall be understood to be the place where their legal
representation is established or where they exercise their
principal functions.

The effect of death upon the rights and obligations of the

deceased is determined by law, by contract and by will