1 Hasegawa Vs Kitamura 1
1 Hasegawa Vs Kitamura 1
1 Hasegawa Vs Kitamura 1
vs.
MINORU KITAMURA
G.R. No. 149177, November 23, 2007
FACTS:
Nippon Engineering Consultants Co., Ltd. (Nippon), a Japanese consultancy firm providing
technical and management support in the infrastructure projects of foreign governments, entered into an
Independent Contractor Agreement (ICA) with Minoru Kitamura, a Japanese national permanently
residing in the Philippines. The agreement, which was executed in Japan, provides that respondent was
to extend professional services to Nippon for a year. Nippon then assigned respondent to work as the
project manager of the STAR Project in the Philippines.
When the STAR Project was near completion, the DPWH engaged the consultancy services of
Nippon this time for the detailed engineering and construction supervision of the Bongabon-Baler Road
Improvement (BBRI) Project. Kitamura was named as the project manager.
Later, Nippon informed Katamura that the company had no more intention of automatically
renewing his ICA. Katamura tried to negotiate. As he was not able to generate a positive response from
the petitioners, respondent consequently initiated a civil case for specific performance and damages with
the RTC Lipa City.
Nippon moved to dismiss the case by contending that the ICA had been perfected in Japan and
executed by and between Japanese nationals and that therefore RTC Lipa had no jurisdiction.
ISSUE:
Whether the ―subject matter jurisdiction‖ of Philippine courts in civil cases for specific
performance and damages involving contracts executed outside the country by foreign nationals may be
assailed on the principles of lex loci celebrationis, lex contractus, the "state of the most significant
relationship rule," or forum non conveniens.
HELD:
In the judicial resolution of conflicts problems, three consecutive phases are involved: jurisdiction,
choice of law, and recognition and enforcement of judgments. Invoking such principles is premature and
are applicable only to the ―choice of law phase.
Jurisdiction considers whether it is fair to cause a defendant to travel to this state; choice of law
asks the further question whether the application of a substantive law which will determine the merits of
the case is fair to both parties. The question of whether the law of a state can be applied to a transaction
(choice of law) is different from the question of whether the courts of that state have jurisdiction to enter
a judgment (jurisdiction).
In this case, only the first phase is at issue—jurisdiction. To succeed in its motion for the dismissal
of an action for lack of jurisdiction over the subject matter of the claim, the movant must show that the
court or tribunal cannot act on the matter submitted to it because no law grants it the power to adjudicate
the claims.
Since these three principles in conflict of laws make reference to the law applicable to a dispute,
they are rules proper for the second phase, the choice of law. They determine which state's law is to be
applied in resolving the substantive issues of a conflicts problem. Necessarily, as the only issue in this case
is that of jurisdiction, choice-of-law rules are not only inapplicable but also not yet called for.