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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
July-2001 Jurisprudence                 

  • A.M. No. MTJ-99-1188 July 2, 2001 - JOSE E. GURAY v. FABIAN M. BAUTISTA

  • A.M. No. P-01-1481 July 5, 2001 - RCBC v. NOEL V. QUILANTANG

  • G.R. No. 135199 July 5, 2001 - CRISOSTOMO MAGAT, ET AL. v. ALBERT M. DELIZO, ET AL.

  • G.R. No. 141285 July 5, 2001 - CEBU INSTITUTE OF MEDICINE, ET AL. v. CEBU INSTITUTE OF MEDICINE EMPLOYEES’ UNION

  • G.R. No. 141947 July 5, 2001 - ISMAEL V. SANTOS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 144275 July 5, 2001 - NATIONAL HOUSING AUTHORITY, ET AL. v. COURT OF APPEALS, ET AL.

  • A.M. No. 97-2-53-RTC July 6, 2001 - RE: FERDINAND J. MARCOS

  • G.R. No. 132318 July 6, 2001 - PEOPLE OF THE PHIL. v. FERNANDO F. MUERONG

  • G.R. No. 134114 July 6, 2001 - NESTLE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 134779 July 6, 2001 - PEOPLE OF THE PHIL. v. HERSON FLORAGUE, ET AL.

  • G.R. Nos. 137608-09 July 6, 2001 - PEOPLE OF THE PHIL. v. REMEGIO TAGANNA

  • G.R. No. 143375 July 6, 2001 - RUTH D. BAUTISTA v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 131856-57 July 9, 2001 - PEOPLE OF THE PHIL. v. WILLIAM MONTINOLA

  • G.R. Nos. 85494, 85496 & 195071 July 10, 2001 - CHOITHRAM JETHMAL RAMNANI, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 126166 July 10, 2001 - PEOPLE OF THE PHIL v. ALLAN TEJADA

  • G.R. No. 133928 July 10, 2001 - PEOPLE OF THE PHIL. v. NECESARIO HIJAPON, ET AL.

  • G.R. No. 136267 July 10, 2001 - PEOPLE OF THE PHIL. v. FIDEL ABRENICA CUBCUBIN, JR.

  • G.R. Nos. 142801-802 July 10, 2001 - BUKLOD NG KAWANING EIIB, ET AL. v. RONALDO B. ZAMORA, ET AL.

  • A.M. No. MTJ-00-1253 July 11, 2001 - KIAT REAPORT, ET AL. v. EFREN S. MARIANO

  • A.M. No. P-01-1452 July 11, 2001 - FERMA C. PORTIC v. MARIO B. LOPEZ, ET AL.

  • G.R. No. P-01-1479 July 11, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. RUBEN B. ALBAYTAR

  • G.R. No. 104802 July 11, 2001 - AURELIA S. LLANA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 108301 & 132539 July 11, 2001 - MANILA ELECTRIC COMPANY v. COURT OF APPEALS, ET AL.

  • G.R. No. 108346 July 11, 2001 - MARIANO Z. VELARDE, ET AL v. COURT OF APPEALS, ET AL.

  • G.R. No. 135210 July 11, 2001 - COMMISSIONER OF INTERNAL REVENUE v. ISABELA CULTURAL CORP.

  • G.R. No. 137050 July 11, 2001 - PEOPLE OF THE PHIL. v. GEORGE CORTES

  • G.R. No. 137891 July 11, 2001 - PEOPLE OF THE PHIL. v. JESUS PATRIARCA

  • G.R. No. 140365 July 11, 2001 - CESAR P. UY, ET AL v. VICTORINO P. EVANGELISTA, ET AL.

  • G.R. No. 140974 July 11, 2001 - RAMON ORO v. GERARDO D. DIAZ

  • A.M. No. MTJ-01-1349 July 12, 2001 - BERNADETTE MONDEJAR v. MARINO S. BUBAN

  • G.R. No. 101974 July 12, 2001 - VICTORIA P. CABRAL v. COURT OF APPEALS, ET AL.

  • G.R. No. 102313 July 12, 2001 - R. F. NAVARRO & CO. v. FORTUNATO A. VAILOCES, ET AL.

  • G.R. Nos. 102696, 102716, 108257 & 120954 July 12, 2001 - ALBERTO LOOYUKO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 104223 July 12, 2001 - TIBURCIO SAMONTE v. COURT OF APPEALS, ET AL.

  • G.R. No. 104383 July 12, 2001 - PEOPLE OF THE PHIL. v. VALERIANO AMESTUZO, ET AL.

  • G.R. No. 112590 July 12, 2001 - STATE INVESTMENT HOUSE v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 131638-39 July 12, 2001 - PEOPLE OF THE PHIL. v. LORETO D. MEDENILLA

  • G.R. No. 138737 July 12, 2001 - FINMAN GEN. ASSURANCE CORP., v. COURT OF APPEALS, ET AL.

  • G.R. No. 138576-77 July 13, 2001 - PEOPLE OF THE PHIL. v. JIMMY JACOB

  • A.M. No. MTJ-00-1322 July 17, 2001 - RENATO H. SANCHEZ v. GEMINIANO A. EDUARDO

  • A.M. No. P-01-1484 July 17, 2001 - JOSE R. ASTORGA v. NICOLASITO S. SOLAS

  • G.R. Nos. 103550 & 103551 July 17, 2001 - PEOPLE OF THE PHIL v. ROMERICO PORRAS

  • G.R. No. 133814 July 17, 2001 - PEOPLE OF THE PHIL. v. ANDRES ORTIZ

  • G.R. Nos. 134540-41 July 18, 2001 - PEOPLE OF THE PHIL v. DIONISIO BATALLER

  • G.R. Nos. 109559 & 109581 July 19, 2001 - BERNARDO P. ABESAMIS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 111535 July 19, 2001 - PEOPLE OF THE PHIL. v. ALEJANDRO CAMPOS

  • G.R. Nos. 113255-56 July 19, 2001 - PEOPLE OF THE PHIL. v. ROMEO S. GONZALES

  • G.R. No. 125698 July 19, 2001 - PEOPLE OF THE PHIL. v. FRANCISCO E. HAPA, ET AL.

  • G.R. Nos. 128153-56 July 19, 2001 - PEOPLE OF THE PHIL. v. VICENTE P. BUISON

  • G.R. No. 131216 July 19, 2001 - LEONARDO A. QUISUMBING, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 132177 July 19, 2001 - JOSE F. CAOIBES v. OMBUDSMAN, ET AL.

  • G.R. No. 133190 July 19, 2001 - PEOPLE OF THE PHIL. v. SANTOS LOR

  • G.R. No. 135145 July 19, 2001 - PEOPLE OF THE PHIL. v. RAYMOND G. MAXION

  • G.R. No. 137545 July 19, 2001 - TERESITA D. GAITE v. COURT OF APPEALS, ET AL.

  • G.R. No. 139789 July 19, 2001 - POTENCIANO ILUSORIO, ET AL. v. ERLINDA K. ILUSORIO BILDNER, ET AL.

  • G.R. No. 139967 July 19, 2001 - PEOPLE OF THE PHIL. v. MANUEL TALAVERA

  • G.R. Nos. 141011 & 141028 July 19, 2001 - CITYTRUST BANKING CORP. v. ISAGANI C. VILLANUEVA

  • G.R. No. 144179 July 19, 2001 - PEOPLE OF THE PHIL. v. RAMSHAND C. THAMSEY

  • A.M. No. MTJ-01-1350 July 20, 2001 - LORENZO PASCUAL, ET AL. v. CESAR M. DUMLAO

  • G.R. No. 110263 July 20, 2001 - ASIAVEST MERCHANT BANKERS (M) BERHAD v. COURT OF APPEALS, ET AL.

  • G.R. No. 117187 July 20, 2001 - UNION MOTOR CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 120176 July 20, 2001 - MA. VALENTINA SANTANA-CRUZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 124442 July 20, 2001 - PEOPLE OF THE PHIL. v. ARMANDO S. COMPACION

  • G.R. No. 132926 July 20, 2001 - ELVIRA AGULLO v. SANDIGANBAYAN, ET AL.

  • G.R. No. 133580 July 20, 2001 - PEOPLE OF THE PHIL. v. MAXIMO GENEBLAZO

  • G.R. Nos. 135030-33 July 20, 2001 - PEOPLE OF THE PHIL. v. MERCY LOGAN

  • G.R. No. 135666 July 20, 2001 - PEOPLE OF THE PHIL. v. MELCHOR B. GARCIA

  • G.R. No. 135865 July 20, 2001 - NAGKAKAISANG KAPISANAN KAPITBAHAYAN SA COMMONWEALTH AVE. v. COURT OF APPEALS, ET AL.

  • G.R. No. 138501 July 20, 2001 - PEOPLE OF THE PHIL. v. ERNESTO M. LAXA, ET AL.

  • G.R. No. 139150 July 20, 2001 - PABLO DELA CRUZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 142024 July 20, 2001 - GUILLERMO SARABIA v. PEOPLE OF THE PHIL.

  • G.R. No. 145838 July 20, 2001 - NICASIO I. ALCANTARA v. COMMISSION ON THE SETTLEMENT OF LAND PROBLEMS, ET AL.

  • G.R. No. 146079 July 20, 2001 - KANEMITSU YAMAOKA v. PESCARICH MANUFACTURING CORP., ET AL.

  • A.M. No. RTJ-00-1564 July 26, 2001 - MARISSA M. GORDON, ET AL. v. FRISCO T. LILAGAN

  • G.R. Nos. 132325-26 July 26, 2001 - PEOPLE OF THE PHIL. v. ROMEO ESPINA

  • G.R. No. 133225 July 26, 2001 - PEOPLE OF THE PHIL. v. EDWIN CONCEPCION, ET AL.

  • G.R. Nos. 113176 & 113342 July 30, 2001 - HANIL DEVELOPMENT CO. v. COURT OF APPEALS, ET AL.

  • A.M. Nos. P-00-1381 & A.M. No. P-00-1382 July 31, 2001 - EFREN B. MALLARE v. RONALD ALLAN A. FERRY

  • G.R. No. 105647 July 31, 2001 - ERNESTO BIONA v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 121298 & 122123 July 31, 2001 - GENARO RUIZ, SR., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 129329 July 31, 2001 - ESTER M. ASUNCION v. NLRC, ET AL.

  • G.R. No. 130707 July 31, 2001 - VERONICA ROBLE, ET AL. v. DOMINADOR ARBASA, ET AL.

  • G.R. No. 134634 July 31, 2001 - PEOPLE OF THE PHIL. v. LAZARO CLARIÑO, ET AL.

  • G.R. Nos. 134831-32 July 31, 2001 - PEOPLE OF THE PHIL. v. RAMON N. LOGMAO

  • G.R. Nos. 136827 & 136799 July 31, 2001 - SECRETARY OF AGRARIAN REFORM, ET AL. v. TROPICAL HOMES

  • G.R. No. 136847 July 31, 2001 - PEOPLE OF THE PHIL v. RODULFO P. VILLARIN, ET AL.

  • G.R. No. 138289 July 31, 2001 - GRACIANO PALELE v. COURT OF APPEALS, ET AL.

  • G.R. No. 139180 July 31, 2001 - PEOPLE OF THE PHIL. v. ROLANDO RIVERA

  • G.R. No. 139529 July 31, 2001 - PEOPLE OF THE PHIL. v. TIMOTEO BRACERO

  • G.R. No. 139622 July 31, 2001 - PEOPLE OF THE PHIL. v. PEDRO PERRERAS, ET AL.

  • G.R. No. 142616 July 31, 2001 - PHIL. NATIONAL BANK v. RITRATTO GROUP INC., ET AL.

  • G.R. No. 143687 July 31, 2001 - RAMON ESTANISLAO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 144702 July 31, 2001 - U.I.C. ET AL. v. U.I.C. TEACHING AND NON-TEACHING PERSONNEL AND EMPLOYEES UNION, ET AL.

  • G.R. No. 145389 July 31, 2001 - ANIANO A. DESIERTO, ET AL. v. RONNIE C. SILVESTRE

  •  





     
     

    G.R. No. 110263   July 20, 2001 - ASIAVEST MERCHANT BANKERS (M) BERHAD v. COURT OF APPEALS, ET AL.

     
    PHILIPPINE SUPREME COURT DECISIONS

    SECOND DIVISION

    [G.R. No. 110263. July 20, 2001.]

    ASIAVEST MERCHANT BANKERS (M) BERHAD, Petitioner, v. COURT OF APPEALS and PHILIPPINE NATIONAL CONSTRUCTION CORPORATION, Respondents.

    D E C I S I O N


    DE LEON, JR., J.:


    Before us is a petition for review on certiorari of the Decision 1 of the Court of Appeals dated May 19, 1993 in CA-G.R. CV No. 35871 affirming the Decision 2 dated October 14, 1991 of the Regional Trial Court of Pasig, Metro Manila, Branch 168 in Civil Case No. 56368 which dismissed the complaint of petitioner Asiavest Merchant Bankers (M) Berhad for the enforcement of the money judgment of the High Court of Malaya in Kuala Lumpur against private respondent Philippine National Construction Corporation.chanrob1es virtua1 1aw 1ibrary

    The petitioner Asiavest Merchant Bankers (M) Berhad is a corporation organized under the laws of Malaysia while private respondent Philippine National Construction Corporation is a corporation duly incorporated and existing under Philippine laws.

    It appears that sometime in 1983, petitioner initiated a suit for collection against private respondent, then known as Construction and Development Corporation of the Philippines, before the High Court of Malaya in Kuala Lumpur entitled "Asiavest Merchant Bankers (M) Berhad v. Asiavest — CDCP Sdn. Bhd. and Construction and Development Corporation of the Philippines." 3

    Petitioner sought to recover the indemnity of the performance bond it had put up in favor of private respondent to guarantee the completion of the Felda Project and the non-payment of the loan it extended to Asiavest-CDCP Sdn. Bhd. for the completion of Paloh Hanai and Kuantan By-Pass Project.

    On September 13, 1985, the High Court of Malaya (Commercial Division) rendered judgment in favor of the petitioner and against the private respondent which is also designated therein as the "2nd Defendant." The judgment reads in full:chanrob1es virtual 1aw library

    SUIT NO. C638 of 1983

    Between

    Asiavest Merchant Bankers (M) Berhad Plaintiffs

    And

    1. Asiavest-CDCP Sdn. Bhd.

    2. Construction & Development

    Corporation of the Philippines Defendant

    JUDGMENT

    The 2nd Defendant having entered appearance herein and the Court having under Order 14, rule 3 ordered that judgment as hereinafter provided be entered for the Plaintiffs against the 2nd Defendant.

    IT IS THIS DAY ADJUDGED that the 2nd defendant do pay the Plaintiffs the sum of $5,108,290.23 (Ringgit Five million one hundred and eight thousand two hundred and ninety and Sen twenty-three) together with interest at the rate of 12% per annum on:chanrob1es virtual 1aw library

    (i) the sum of $2,586,866.91 from the 2nd day of March 1983 to the date of payment; andchanrob1es virtua1 1aw 1ibrary

    (ii) the sum of $2,521,423.32 from the 11th day of March 1983 to the date of payment; and $350.00 (Ringgit Three Hundred and Fifty) costs.

    Dated the 13th day of September, 1985.

    Senior Assistant Registrar,

    High Court, Kuala Lumpur

    This Judgment is filed by Messrs. Skrine & Co., 3rd Floor, Straits Trading Building, No. 4, Leboh Pasar, Besar, Kuala Lumpur, Solicitors for the Plaintiffs abovenamed. (VP/Ong/81194.7/83) 4

    On the same day, September 13, 1985, the High Court of Malaya issued an Order directing the private respondent (also designated therein as the "2nd Defendant") to pay petitioner interest on the sums covered by the said Judgment, thus:chanrob1es virtual 1aw library

    SUIT NO. C638 OF 1983

    Between

    Asiavest Merchant Bankers (M) Berhad Plaintiffs

    And

    1. Asiavest-CDCP Sdn. Bhd.

    2. Construction & Development

    Corporation of the Philippines Defendants

    BEFORE THE SENIOR ASSISTANT REGISTRAR

    CIK SUSILA S. PARAM

    THIS 13th DAY OF SEPTEMBER 1985 IN CHAMBERS

    ORDER

    Upon the application of Asiavest Merchant Bankers (M) Berhad, the Plaintiffs in this action AND UPON READING the Summons in Chambers dated the 16th day of August, 1984 and the Affidavit of Lee Foong Mee affirmed on the 14th day of August 1984 both filed herein AND UPON HEARING Mr. T. Thomas of Counsel for the Plaintiffs and Mr. Khaw Chay Tee of Counsel for the 2nd Defendant abovenamed on the 26th day of December 1984 IT WAS ORDERED that the Plaintiffs be at liberty to sign final judgment against the 2nd Defendant for the sum of $5,108.290.23 AND IT WAS ORDERED that the 2nd Defendant do pay the Plaintiffs the costs of suit at $350.00 AND IT WAS FURTHER ORDERED that the plaintiffs be at liberty to apply for payment of interest AND upon the application of the Plaintiffs for payment of interest coming on for hearing on the 1st day of August in the presence of Mr. Palpanaban Devarajoo of Counsel for the Plaintiffs and Mr. Khaw Chay Tee of Counsel for the 2nd Defendant above-named AND UPON HEARING Counsel as aforesaid BY CONSENT IT WAS ORDERED that the 2nd Defendant do pay the Plaintiffs interest at a rate to be assessed AND the same coming on for assessment this day in the presence of Mr. Palpanaban Devarajoo of Counsel for the Plaintiffs and Mr. Khaw Chay Tee of Counsel for the 2nd Defendant AND UPON HEARING Counsel as aforesaid BY CONSENT IT IS ORDERED that the 2nd Defendant do pay the Plaintiffs interest at the rate of 12% per annum on:chanrob1es virtual 1aw library

    (i) the sum of $2,586,866.91 from the 2nd day of March 1983 to the date of payment; and

    (ii) the sum of $2,521,423.32 from the 11th day of March 1983 to the date of Payment.chanrob1es virtua1 1aw 1ibrary

    Dated the 13th day of September, 1985.

    Senior Assistant Registrar,

    High Court, Kuala Lumpur. 5

    Following unsuccessful attempts 6 to secure payment from private respondent under the judgment, petitioner initiated on September 5, 1988 the complaint before Regional Trial Court of Pasig, Metro Manila, to enforce the judgment of the High Court of Malaya. 7

    Private respondent sought the dismissal of the case via a Motion to Dismiss filed on October 5, 1988, contending that the alleged judgment of the High Court of Malaya should be denied recognition or enforcement since on its face, it is tainted with want of jurisdiction, want of notice to private respondent, collusion and/or fraud, and there is a clear mistake of law or fact. 8 Dismissal was, however, denied by the trial court considering that the grounds relied upon are not the proper grounds in a motion to dismiss under Rule 16 of the Revised Rules of Court. 9

    On May 22, 1989, private respondent filed its Answer with Compulsory Counterclaim 10 and therein raised the grounds it brought up in its motion to dismiss. In its Reply 11 filed on June 8, 1989, the petitioner contended that the High Court of Malaya acquired jurisdiction over the person of private respondent by its voluntary submission to the courts jurisdiction through its appointed counsel, Mr. Khay Chay Tee. Furthermore, private respondent’s counsel waived any and all objections to the High Court’s jurisdiction in a pleading filed before the court.chanrob1es virtua1 1aw 1ibrary

    In due time, the trial court rendered its Decision dated October 14, 1991 dismissing petitioner’s complaint. Petitioner interposed an appeal with the Court of Appeals, but the appellate court dismissed the same and affirmed the decision of the trial court in a Decision dated May 19, 1993.

    Hence, the instant petition which is anchored on two (2) assigned errors, 12 to wit:chanrob1es virtual 1aw library

    I


    THE COURT OF APPEALS ERRED IN HOLDING THAT THE MALAYSIAN COURT DID NOT ACQUIRE PERSONAL JURISDICTION OVER PNCC, NOTWITHSTANDING THAT (a) THE FOREIGN COURT HAD SERVED SUMMONS ON PNCC AT ITS MALAYSIA OFFICE, AND (b) PNCC ITSELF APPEARED BY COUNSEL IN THE CASE BEFORE THAT COURT.

    II


    THE COURT OF APPEALS ERRED IN DENYING RECOGNITION AND ENFORCEMENT TO (SIC) THE MALAYSIAN COURT JUDGMENT.chanrob1es virtua1 1aw 1ibrary

    Generally, in the absence of a special compact, no sovereign is bound to give effect within its dominion to a judgment rendered by a tribunal of another country; 13 however, the rules of comity, utility and convenience of nations have established a usage among civilized states by which final judgments of foreign courts of competent jurisdiction are reciprocally respected and rendered efficacious under certain conditions that may vary in different countries. 14

    In this jurisdiction, a valid judgment rendered by a foreign tribunal may be recognized insofar as the immediate parties and the underlying cause of action are concerned so long as it is convincingly shown that there has been an opportunity for a full and fair hearing before a court of competent jurisdiction; that the trial upon regular proceedings has been conducted, following due citation or voluntary appearance of the defendant and under a system of jurisprudence likely to secure an impartial administration of justice; and that there is nothing to indicate either a prejudice in court and in the system of laws under which it is sitting or fraud in procuring the judgment. 15

    A foreign judgment is presumed to be valid and binding in the country from which it comes, until a contrary showing, on the basis of a presumption of regularity of proceedings and the giving of due notice in the foreign forum. Under Section 50(b), 16 Rule 39 of the Revised Rules of Court, which was the governing law at the time the instant case was decided by the trial court and respondent appellate court, a judgment, against a person, of a tribunal of a foreign country having jurisdiction to pronounce the same is presumptive evidence of a right as between the parties and their successors in interest by a subsequent title. The judgment may, however, be assailed by evidence of want of jurisdiction, want of notice to the party, collusion, fraud, or clear mistake of law or fact. In addition, under Section 3(n), Rule 131 of the Revised Rules of Court, a court, whether in the Philippines or elsewhere, enjoys the presumption that it was acting in the lawful exercise of its jurisdiction. Hence, once the authenticity of the foreign judgment is proved, the party attacking a foreign judgment, is tasked with the burden of overcoming its presumptive validity.chanrob1es virtua1 1aw 1ibrary

    In the instant case, petitioner sufficiently established the existence of the money judgment of the High Court of Malaya by the evidence it offered. Vinayak Prabhakar Pradhan, presented as petitioner’s sole witness, testified to the effect that he is in active practice of the law profession in Malaysia; 17 that he was connected with Skrine and Company as Legal Assistant up to 1981; 18 that private respondent, then known as Construction and Development Corporation of the Philippines, was sued by his client, Asiavest Merchant Bankers (M) Berhad, in Kuala Lumpur; 19 that the writ of summons were served on March 17, 1983 at the registered office of private respondent and on March 21, 1983 on Cora S. Deala, a financial planning officer of private respondent for Southeast Asia operations; 20 that upon the filing of the case, Messrs. Allen and Gledhill, Advocates and Solicitors, with address at 24th Floor, UMBC Building, Jalan Sulaiman, Kuala Lumpur, entered their conditional appearance for private respondent questioning the regularity of the service of the writ of summons but subsequently withdrew the same when it realized that the writ was properly served; 21 that because private respondent failed to file a statement of defense within two (2) weeks, petitioner filed an application for summary judgment and submitted affidavits and documentary evidence in support of its claim; 22 that the matter was then heard before the High Court of Kuala Lumpur in a series of dates where private respondent was represented by counsel; 23 and that the end result of all these proceedings is the judgment sought to be enforced.chanrob1es virtua1 1aw 1ibrary

    In addition to the said testimonial evidence, petitioner offered the following documentary evidence:chanrob1es virtual 1aw library

    (a) A certified and authenticated copy of the Judgment promulgated by the Malaysian High Court dated September 13, 1985 directing private respondent to pay petitioner the sum of $5,108,290.23 Malaysian Ringgit plus interests from March 1983 until fully paid; 24

    (b) A certified and authenticated copy of the Order dated September 13, 1985 issued by the Malaysian High Court in Civil Suit No. C638 of 1983;25cralaw:red

    (c) Computation of principal and interest due as of January 31, 1990 on the amount adjudged payable to petitioner by private respondent; 26

    (d) Letter and Statement of Account of petitioner’s counsel in Malaysia indicating the costs for prosecuting and implementing the Malaysian High Court’s Judgment; 27

    (e) Letters between petitioner’s Malaysian counsel, Skrine and Co., and its local counsel, Sycip Salazar Law Offices, relative to institution of the action in the Philippines; 28

    (f) Billing Memorandum of Sycip Salazar Law Offices dated January 2, 1990 showing attorney’s fees paid by and due from petitioner; 29

    (g) Statement of Claim, Writ of Summons and Affidavit of Service of such writ in petitioner’s suit against private respondent before the Malaysian High Court; 30

    (h) Memorandum of Conditional Appearance dated March 28, 1983 filed by counsel for private respondent with the Malaysian High Court; 31

    (i) Summons in Chambers and Affidavit of Khaw Chay Tee, counsel for private respondent, submitted during the proceedings before the Malaysian High Court; 32

    (j) Record of the Court’s Proceedings in Civil Case No. C638 of 1983; 33

    (k) Petitioner’s verified Application for Summary Judgment dated August 14, 1984; 34 andchanrob1es virtua1 1aw 1ibrary

    (l) Letter dated November 6, 1985 from petitioner’s Malaysian counsel to private respondent’s counsel in Malaysia. 35

    Having thus proven, through the foregoing evidence, the existence and authenticity of the foreign judgment, said foreign judgment enjoys presumptive validity and the burden then fell upon the party who disputes its validity, herein private respondent, to prove otherwise.

    Private respondent failed to sufficiently discharge the burden that fell upon it — to prove by clear and convincing evidence the grounds which it relied upon to prevent enforcement of the Malaysian High Court judgment, namely, (a) that jurisdiction was not acquired by the Malaysian Court over the person of private respondent due to alleged improper service of summons upon private respondent and the alleged lack of authority of its counsel to appear and represent private respondent in the suit; (b) the foreign judgment is allegedly tainted by evident collusion, fraud and clear mistake of fact or law; and (c) not only were the requisites for enforcement or recognition allegedly not complied with but also that the Malaysian judgment is allegedly contrary to the Constitutional prescription that the "every decision must state the facts and law on which it is based." 36

    Private respondent relied solely on the testimony of its two (2) witnesses, namely, Mr. Alfredo N. Calupitan, an accountant of private respondent, and Virginia Abelardo, Executive Secretary and a member of the staff of the Corporate Secretariat Section of the Corporate Legal Division, of private respondent, both of whom failed to shed light and amplify its defense or claim for non-enforcement of the foreign judgment against it.chanrob1es virtua1 1aw 1ibrary

    Mr. Calupitan’s testimony centered on the following: that from January to December 1982 he was assigned in Malaysia as Project Comptroller of the Pahang Project Package A and B for road construction under the joint venture of private respondent and Asiavest Holdings; 37 that under the joint venture, Asiavest Holdings would handle the financial aspect of the project, which is fifty-one percent (51%) while private respondent would handle the technical aspect of the project, or forty-nine percent (49%); 38 and, that Cora Deala was not authorized to receive summons for and in behalf of the private Respondent. 39 Ms. Abelardo’s testimony, on the other hand, focused on the following: that there was no board resolution authorizing Allen and Gledhill to admit all the claims of petitioner in the suit brought before the High Court of Malaya, 40 though on cross-examination she admitted that Allen and Gledhill were the retained lawyers of private respondent in Malaysia. 41

    The foregoing reasons or grounds relied upon by private respondent in preventing enforcement and recognition of the Malaysian judgment primarily refer to matters of remedy and procedure taken by the Malaysian High Court relative to the suit for collection initiated by petitioner. Needless to stress, the recognition to be accorded a foreign judgment is not necessarily affected by the fact that the procedure in the courts of the country in which such judgment was rendered differs from that of the courts of the country in which the judgment is relied on. 42 Ultimately, matters of remedy and procedure such as those relating to the service of summons or court process upon the defendant, the authority of counsel to appear and represent a defendant and the formal requirements in a decision are governed by the lex fori or the internal law of the forum, 43 i.e., the law of Malaysia in this case.chanrob1es virtua1 1aw 1ibrary

    In this case, it is the procedural law of Malaysia where the judgment was rendered that determines the validity of the service of court process on private respondent as well as other matters raised by it. As to what the Malaysian procedural law is, remains a question of fact, not of law. It may not be taken judicial notice of and must be pleaded and proved like any other fact. Sections 24 and 25 of Rule 132 of the Revised Rules of Court provide that it may be evidenced by an official publication or by a duly attested or authenticated copy thereof. It was then incumbent upon private respondent to present evidence as to what that Malaysian procedural law is and to show that under it, the assailed service of summons upon a financial officer of a corporation, as alleged by it, is invalid. It did not. Accordingly, the presumption of validity and regularity of service of summons and the decision thereafter rendered by the High Court of Malaya must stand. 44

    On the matter of alleged lack of authority of the law firm of Allen and Gledhill to represent private respondent, not only did the private respondent’s witnesses admit that the said law firm of Allen and Gledhill were its counsels in its transactions in Malaysia, 45 but of greater significance is the fact that petitioner offered in evidence relevant Malaysian jurisprudence 46 to the effect that (a) it is not necessary under Malaysian law for counsel appearing before the Malaysian High Court to submit a special power of attorney authorizing him to represent a client before said court, (b) that counsel appearing before the Malaysian High Court has full authority to compromise the suit, and (c) that counsel appearing before the Malaysian High Court need not comply with certain pre-requisites as required under Philippine law to appear and compromise judgments on behalf of their clients before said court. 47

    Furthermore, there is no basis for or truth to the appellate court’s conclusion that the conditional appearance of private respondent’s counsel who was allegedly not authorized to appear and represent, cannot be considered as voluntary submission to the jurisdiction of the High Court of Malaya, inasmuch as said conditional appearance was not premised on the alleged lack of authority of said counsel but the conditional appearance was entered to question the regularity of the service of the writ of summons. Such conditional appearance was in fact subsequently withdrawn when counsel realized that the writ was properly served. 48

    On the ground that collusion, fraud and clear mistake of fact and law tainted the judgment of the High Court of Malaya, no clear evidence of the same was adduced or shown. The facts which the trial court found "intriguing" amounted to mere conjectures and specious observations. The trial court’s finding on the absence of judgment against Asiavest-CDCP Sdn. Bhd. is contradicted by evidence on record that recovery was also sought against Asiavest-CDCP Sdn. Bhd. but the same was found insolvent. 49 Furthermore, even when the foreign judgment is based on the drafts prepared by counsel for the successful party, such is not per se indicative of collusion or fraud. Fraud to hinder the enforcement within the jurisdiction of a foreign judgment must be extrinsic, i.e., fraud based on facts not controverted or resolved in the case where judgment is rendered, 50 or that which would go to the jurisdiction of the court or would deprive the party against whom judgment is rendered a chance to defend the action to which he has a meritorious defense. 51 Intrinsic fraud is one which goes to the very existence of the cause of action is deemed already adjudged, and it, therefore, cannot militate against the recognition or enforcement of the foreign judgment. 52 Evidence is wanting on the alleged extrinsic fraud. Hence, such unsubstantiated allegation cannot give rise to liability therein.cralaw : red

    Lastly, there is no merit to the argument that the foreign judgment is not enforceable in view of the absence of any statement of facts and law upon which the award in favor of the petitioner was based. As aforestated, the lex fori or the internal law of the forum governs matters of remedy and procedure. 53 Considering that under the procedural rules of the High Court of Malaya, a valid judgment may be rendered even without stating in the judgment every fact and law upon which the judgment is based, then the same must be accorded respect and the courts in this jurisdiction cannot invalidate the judgment of the foreign court simply because our rules provide otherwise.

    All in all, private respondent had the ultimate duty to demonstrate the alleged invalidity of such foreign judgment, being the party challenging the judgment rendered by the High Court of Malaya. But instead of doing so, private respondent merely argued, to which the trial court agreed, that the burden lay upon petitioner to prove the validity of the money judgment. Such is clearly erroneous and would render meaningless the presumption of validity accorded a foreign judgment were the party seeking to enforce it be required to first establish its validity. 54

    WHEREFORE, the instant petition is GRANTED. The Decision of the Court of Appeals dated May 19, 1993 in CA-G.R. CV No. 35871 sustaining the Decision dated October 14, 1991 in Civil Case No. 56368 of the Regional Trial Court of Pasig, Branch 168 denying the enforcement of the Judgment dated September 13, 1985 of the High Court of Malaya in Kuala Lumpur is REVERSED and SET ASIDE, and another in its stead is hereby rendered ORDERING private respondent Philippine National Construction Corporation to pay petitioner Asiavest Merchant Bankers (M) Berhad the amounts adjudged in the said foreign Judgment, subject of the said case.cralaw : red

    Costs against the private Respondent.

    SO ORDERED.

    Bellosillo, Mendoza and Buena, JJ., concur.

    Quisumbing, J., on official business.

    Endnotes:



    1. Penned by Associate Justice Segundino G. Chua and concurred in by Associate Justices Serafin V.C. Guingona and Ramon Mabutas, Jr., Sixteenth Division, in C-A G.R. CV No. 35871, Rollo, pp. 31-37.

    2. Penned by Judge Benjamin V. Pelayo, Records, pp. 444-454.

    3. Docketed as Suit No. C638 of 1983.

    4. Records, pp. 126-127.

    5. Records, pp. 129-130.

    6. TSN, March 5, 1990, p. 31.

    7. Records, pp. 14.

    8. Records, pp. 17-25.

    9. Order dated February 8, 1989, Records, p. 49.

    10. Records, pp. 69-72.

    11. Records, pp. 73-74.

    12. Rollo, pp. 13-14.

    13. Cucullu v. Louisiana Insurance Co. (La) 5 Mart NS 464, 16 Am Dec 199.

    14. 30 Am Jur 2d Enforcement and Execution of Judgments 779; Hilton v. Guyot, 159 US 113 40 L Ed 95, 16 S Ct 139.

    15. Private International Law, Jovito R Salonga, 1995 Edition, p. 543; 30 Am Jur 2d Executions and Enforcement of Judgments 780; Southern v. Southern, 43 NC App 159, 258 SE2d 422.

    16. Now Sec. 48, Rule 39 of the 1997 Rules of Civil Procedure.

    Sec. 48. Effect of foreign judgments or final orders — The effect of a judgment or final order of a tribunal of a foreign country, having jurisdiction to render the judgment or final order is as follows:chanrob1es virtual 1aw library

    x       x       x


    (b) In case of a judgment or final order against a person, the judgment or final order is presumptive evidence of a right as between the parties and their successors in interest by a subsequent title.

    In either case, the judgment or final order may be repelled by evidence of a want of jurisdiction, want of notice to the party, collusion, fraud, or clear mistake of law or fact.

    17. TSN, March 5, 1990, p. 3.

    18. TSN, March 5, 1990, p. 4.

    19. TSN, March 5, 1990, p. 4.

    20. TSNs, March 5, 1990, pp. 21-22; September 4, 1990, pp. 6-7.

    21. TSN, March 5, 1990, pp. 10, 23-26.

    22. TSN, March 5, 1990, pp. 10-11, 26-28.

    23. TSN, March 5, 1990, pp. 19-20, 28-30, 37.

    24. Exhibits "A", "A-1" and "A-2", Records, pp. 125-127.

    25. Exhibits "B", "B-1" and "B-2", Records, pp. 128-130.

    26. Exhibits "C", "C-1" and "C-2", Records, pp. 131-133.

    27. Exhibits "D", "D-1" and "D-2", Records, pp. 134-136.

    28. Exhibits "E", "E-1", "E-2", "E4", "E-5", "E-6", "E-7" and "E-8", Records, pp. 137-144.

    29. Exhibits "F" and "F-1", Records, pp. 147-148.

    30. Exhibits "G", "G-1" and "G-2", Records, pp. 149-159.

    31. Exhibits "H" and "H-1", Records, pp. 160-161.

    32. Exhibits "I", "I-1" and "I-2", Records, pp. 162-167.

    33. Exhibits "J", "J-1" to "J-4", Records, pp. 168-173.

    34. Exhibits "K" and "K-1", Records, pp. 174-179,

    35. Exhibit "L", Records, p. 217.

    36. Citing Article VIII, Section 14 of the 1987 Constitution.

    37. TSNs, July 30, 1990, pp. 4-5; September 4, 1990, p. 3.

    38. TSN, July 30, 1990, pp. 5-6, 8.

    39. TSN, July 30, 1990, p. 15.

    40. TSN, October 5, 1990, pp. 6-10.

    41. TSN, October 5, 1990, p. 11.

    42. 30 Am Jur Executions and Enforcement of Judgments 843; In re Osborne, 205 NC 716, 172 SE 491.

    43. Oil and Natural Gas Commission v. Court of Appeals, 293 SCRA 26, 45 [1998].

    44. Northwest Orient Airlines, Inc. v. Court of Appeals, 241 SCRA 192, 199 [1995].

    45. TSNs, September 4, 1990, p. 11; October 5, 1990, pp. 11-12.

    46. Matthews v. Munster XX QBD 141, 1887, Great Atlantic Insurance Co. v. Home Insurance Co. and others, 2 ALR 485 [1981]; Waugh and others v. H.B. Clifford and Sons Ltd. and others, 1 ALR 1095 [1982]; Exhibits "M", "M-1" and "M-2", Records, pp. 355-385.

    47. Also Sovereign General Insurance Sdn. Bhd. v. Koh Tian Bee, 1 MLJ 304 (1988), Exhibit "M-3", Records, pp. 386-389.

    48. TSN, March 5, 1990, pp. 10, 23-26.

    49. TSN, March 5, 1990, pp. 22-25; Exhibits "G" and "G-2", Records, pp. 149-159.

    50. Labayen v. Talisay-Silay Mining Co., 40 O.G. 2nd Supp. No. 3, p. 109.

    51. 30 Am Jur 2d Executions and Enforcement of Judgments 840; Pentz v. Kuppinger (2nd Dist) 31 Cal App 3d 590, 107 Cal Rptr 540.

    52. Private International Law, Jovito R. Salonga, 1995 Edition, p. 558; Beale, Conflict of Law, Vol. II, p. 1402; Abouloff v. Oppenwhimer and Another [1852], 58 L.J. Q.B. 1.

    53. Northwest Orient Airlines, Inc. v. Court of Appeals, supra.

    54. Asiavest Limited v. Court of Appeals, 296 SCRA 539, 549 [1998].

    G.R. No. 110263   July 20, 2001 - ASIAVEST MERCHANT BANKERS (M) BERHAD v. COURT OF APPEALS, ET AL.


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