Aznar v.

Garcia Bank of America vs American Realty

Facts Corporation
Edward E. Christensen, an American citizen GR 133876 December 29, 1999
from California and domiciled in the
Philippines, left a will executed in the Facts:
Philippines in which he bequeathed Php
3,600.00 to Maria Helen Christensen Petitioner granted loans to 3 foreign
("Helen") and the remainder of his estate to corporations. As security, the latter
his daughter, Maria Lucy Christensen mortgaged a property located in the
Daney. The laws of California allow the Philippines owned by herein respondent
testator to dispose of his estate in any ARC. ARC is a third-party mortgagor who
manner he pleases. However, California law pledged its own property in favor of the 3
also provides that the personal property of a debtor-foreign corporations.
person is governed by the laws of his
domicile. The executor, Adolfo C. Aznar, The debtors failed to pay. Thus, petitioner
drew a project of partition in conformity with filed collection suits in foreign courts to
the will. Helen opposed the project of enforce the loan. Subsequently, it filed a
partition arguing that Philippine laws govern petition in the Sheriff to extra-judicially
the distribution of the estate and manner foreclose the said mortgage, which was
proposed in the project deprived her of her granted.
legitime.
On 12 February 1993, private respondent
Issue filed before the Pasig RTC, Branch 159, an
Whether or not the succession is governed action for damages against the petitioner,
by Philippine laws. for the latter’s act of foreclosing extra-
judicially the real estate mortgages despite
Held
the pendency of civil suits before foreign
Yes. Philippine law governs.
courts for the collection of the principal loan.
Ratio Issue:
Article 16 of the Civil Code provides that the
intrinsic validity of testamentary dispositions WON petitioner’s act of filing a collection
are governed by the national law of the suit against the principal debtors for the
decedent, in this case, California law. The recovery of the loan before foreign courts
provision in the laws of California giving a constituted a waiver of the remedy of
testator absolute freedom in disposing of his foreclosure.
estate is the internal law which applies only
to persons domiciled within the said estate. Held: Yes.
On the other hand, the provision in the laws
of California stating that personal property is 2. Conflicts of Law
governed by the laws of the domicile of its Incidentally, petitioner alleges that under
owner is the conflict of laws rule that applies
English Law, which according to petitioner is
to persons not domicile in the said state.
Accordingly, the laws of the Philippines, in the governing law with regard to the
which the testator is domiciled governs the principal agreements, the mortgagee does
succession and the regime of legitimes not lose its security interest by simply filing
must be respected. civil actions for sums of money.
We rule in the negative.
In a long line of decisions, this Court ORION SAVINGS BANK
adopted the well-imbedded principle in our vs.
jurisdiction that there is no judicial notice of SHIGEKANE SUZUKI
any foreign law. A foreign law must be
properly pleaded and proved as a fact. G.R. No. 205487, November 12, 2014
Thus, if the foreign law involved is not Facts:
properly pleaded and proved, our courts will
presume that the foreign law is the same as
 Respondent Shigekane Suzuki, a
our local or domestic or internal Japanese national, met with Ms.
law. This is what we refer to as the doctrine Helen Soneja to inquire about a
of processual presumption. condominium unit and a parking
slot at Cityland Pioneer,
In the instant case, assuming arguendo that Mandaluyong City, allegedly owned
the English Law on the matter were properly by Yung Sam Kang, a Korean
pleaded and proved in said foreign law national.
would still not find applicability.
 Soneja informed Suzuki that Unit
Thus, when the foreign law, judgment or No. 536 [covered by Condominium
contract is contrary to a sound and Certificate of Title (CCT) No.
established public policy of the forum, the 18186] and Parking Slot No. 42
said foreign law, judgment or order shall not [covered by CCT No. 9118] were
be applied. for sale. Soneja likewise assured
Additionally, prohibitive laws concerning Suzuki that the titles to the unit
persons, their acts or property, and those and the parking slot were clean.
which have for their object public order,  After payment of the price of the
public policy and good customs shall not be unit and parking slot, Kang then
rendered ineffective by laws or judgments executed a Deed of Absolute Sale.
promulgated, or by determinations or Suzuki took possession of the
conventions agreed upon in a foreign condominium unit and parking lot,
country.
and commenced the renovation of
The public policy sought to be protected in the interior of the condominium
the instant case is the principle imbedded in unit.
our jurisdiction proscribing the splitting up of
 Kang thereafter made several
a single cause of action.
representations with Suzuki to
Moreover, foreign law should not be applied deliver the titles to the properties,
when its application would work undeniable which were then allegedly in
injustice to the citizens or residents of the possession of Alexander Perez
forum. To give justice is the most important (Perez, Orion’s Loans Officer) for
function of law; hence, a law, or judgment or safekeeping. Despite several verbal
contract that is obviously unjust negates the demands, Kang failed to deliver the
fundamental principles of Conflict of Laws. documents.
Clearly then, English Law is not applicable.  Suzuki later on learned that Kang
had left the country, prompting
Suzuki to verify the status of the
properties. He learned that CCT
 No. 9118 representing the title to governed by Philippine law while issues
the Parking Slot No. 42 contained pertaining to the conjugal nature of the
no annotations although it property shall be governed by South
remained under the name of Korean law, provided it is proven as a fact.
Cityland Pioneer. Despite the In the present case, Orion,
cancellation of the mortgage to unfortunately failed to prove the South
Orion, the titles to the properties Korean law on the conjugal ownership of
remained in possession of Perez. property. It merely attached a
 Suzuki then demanded the "Certification from the Embassy of the
delivery of the titles. Orion, Republic of Korea" to prove the existence
through Perez, however, refused to of Korean Law. This certification, does not
surrender the titles, and cited the qualify as sufficient proof of the conjugal
need to consult Orion’s legal nature of the property for there is no
counsel as its reason. showing that it was properly
authenticated.
Issue:
Accordingly, the International Law
Whether or not Korean Law should
doctrine of presumed-identity approach
be applied in conveying the conjugal
or processual presumption comes into
property of spouses Kang?
play, i.e., where a foreign law is not
Ruling: pleaded or, even if pleaded, is not proven,
In the present case, the Korean law the presumption is that foreign law is the
should not be applied. It is a universal same as Philippine Law.
principle that real or immovable property Under Philippine Law, the phrase
is exclusively subject to the laws of the "Yung Sam Kang ‘married to' Hyun Sook
country or state where it is located. Thus, Jung" is merely descriptive of the civil
all matters concerning the title and status of Kang. In other words, the import
disposition of real property are from the certificates of title is that Kang is
determined by what is known as the lex the owner of the properties as they are
loci rei sitae, which can alone prescribe registered in his name alone, and that he
the mode by which a title can pass from is married to Hyun Sook Jung. There is no
one person to another, or by which an reason to declare as invalid Kang’s
interest therein can be gained or lost. conveyance in favor of Suzuki for the
On the other hand, property supposed lack of spousal consent.
relations between spouses are governed It is undisputed that
principally by the national law of the notwithstanding the supposed execution
spouses. However, the party invoking the of the Dacion en Pago on February 2,
application of a foreign law has the 2003, Kang remained in possession of the
burden of proving the foreign law. The condominium unit. In fact, nothing in the
foreign law is a question of fact to be records shows that Orion even bothered
properly pleaded and proved as the judge to take possession of the property even
cannot take judicial notice of a foreign six (6) months after the supposed date of
law. execution of the Dacion en Pago. Kang was
Matters concerning the title and even able to transfer possession of the
disposition of real property shall be condominium unit to Suzuki, who then
made immediate improvements thereon.