Saudi Arabian Airlines v. Court of Appeals

G.R. No. 122191 · 1998-10-08 · J. QUISUMBING, J.: · Primary: Civil; Secondary: Civil Procedure
NEW DOCTRINE

Facts

The Antecedents: Milagros P. Morada, a flight attendant for Saudi Arabian Airlines (SAUDIA), was hired in January 1988. In April 1990, while on layover in Jakarta, Indonesia, she was assaulted by a fellow crew member, Thamer Al-Gazzawi, with another crew member, Allah Al-Gazzawi, acting as an accomplice. The Indonesian police arrested both. SAUDIA officials interrogated Morada and requested her to help secure the release of the detained crew members, which she refused due to fear and language barriers. SAUDIA subsequently barred her from Jakarta flights but later transferred her to Manila in September 1990. In January 1992, SAUDIA officials pressured Morada in Jeddah to drop the case against the crew members, taking her passport until she complied. In June 1993, in Riyadh, SAUDIA prevented her from boarding a flight to Manila and ordered her to Jeddah to see the Chief Legal Officer. She was taken to a Saudi court and asked to sign a document in Arabic, which turned out to be a notice to appear in court. She returned to Manila but was summoned again to Jeddah for an investigation on June 27, 1993, after assurances of safety. On June 28, 1993, a Saudi judge interrogated her about the Jakarta incident. At the airport, her passport was confiscated, and she was ordered to remain in Jeddah. On July 3, 1993, the Saudi court sentenced her to five months imprisonment and 286 lashes for adultery, violating Islamic laws by going to a disco, and socializing with male crew members. SAUDIA denied her assistance. The Prince of Makkah later dismissed the case, allowing her to leave Saudi Arabia. SAUDIA then terminated her employment without cause. Procedural History: On November 23, 1993, Morada filed a complaint for damages against SAUDIA and its country manager in the RTC of Quezon City. SAUDIA filed a motion to dismiss, raising grounds including lack of cause of action and jurisdiction, arguing that Saudi Arabian law should apply. Morada amended her complaint, dropping the country manager as a defendant. The RTC denied SAUDIA's motion to dismiss. SAUDIA moved for reconsideration, reiterating the lack of jurisdiction based on the applicability of Saudi law. The RTC denied the motion for reconsideration, holding that the case, based on Articles 19 and 21 of the Civil Code, was within its jurisdiction. SAUDIA filed a petition for certiorari and prohibition with the Court of Appeals (CA). The CA denied SAUDIA's petition for a writ of preliminary injunction. Subsequently, the CA rendered a decision affirming the RTC's jurisdiction and ruling that Philippine law should govern, stating that certiorari was not the proper remedy for a denial of a motion to dismiss. SAUDIA filed a supplemental petition for review with the Supreme Court. The Petition: SAUDIA petitions the Supreme Court to annul the CA's resolution and decision, arguing that the trial court lacks jurisdiction because the case involves a conflict of laws and the proper law applicable is that of the Kingdom of Saudi Arabia. SAUDIA contends that the Philippines should not sit in judgment of acts done by another sovereign state.

Issue(s)

Whether the Regional Trial Court of Quezon City has jurisdiction to hear and try Civil Case No. Q-93-18394. Whether Philippine law should govern the case.

Ruling

The Supreme Court dismissed the petition for certiorari and remanded the case to the Regional Trial Court of Quezon City for further proceedings. The Court held that the RTC has jurisdiction over the case and that Philippine law should govern.

Ratio Decidendi

On the issue of jurisdiction: The Court affirmed the jurisdiction of the Regional Trial Court of Quezon City. It acknowledged that the case presented a "conflicts" problem due to the involvement of events in multiple states. However, the Court emphasized that private respondent Morada predicated her cause of action on Articles 19 and 21 of the New Civil Code, which provide remedies for violations of human relations, morality, good customs, or public policy. These provisions are actionable and judicially enforceable under Philippine law. The Court cited Section 1 of Republic Act No. 7691 and Section 2(b), Rule 4 of the Revised Rules of Court to establish the RTC's jurisdiction over the subject matter and the venue in Quezon City, respectively. Furthermore, the Court found that SAUDIA had submitted to the jurisdiction of the RTC by filing motions to dismiss on grounds other than lack of jurisdiction, thereby waiving its special appearance. The Court also considered pragmatic considerations, including the convenience of the parties and the enforceability of a potential judgment, favoring the Philippine forum. On the issue of applicable law: The Court ruled that Philippine law should govern the case. While acknowledging the presence of a foreign element, the Court applied the "State of the most significant relationship" rule in tort liability. It reasoned that the alleged tortious conduct, particularly the deception and manipulation by SAUDIA which led to Morada's humiliation and suffering, had its "situs" in the Philippines, where Morada, a Filipina national, was deceived by her employer, a foreign corporation doing business in the Philippines. The Court found that the relationship between the parties was centered in the Philippines, and thus, the Philippines had the most significant contact with the dispute. The Court also noted that Morada's cause of action was based on Philippine Civil Code provisions, not Saudi law, and therefore, she had no obligation to plead or prove Saudi law. The burden of proving foreign law rested on SAUDIA, which invoked its applicability. The Court concluded that the RTC could properly apply Philippine law and should proceed to try the case with due consideration of the foreign elements.

Main Doctrine

The Philippine court has jurisdiction over a civil case involving a foreign element, particularly when the cause of action is based on Articles 19 and 21 of the Civil Code, and the Philippines has the most significant relationship to the dispute, even if some tortious acts occurred abroad. The burden of proving foreign law rests on the party invoking it.

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