Title
Hasegawa vs. Kitamura
Case
G.R. No. 149177
Decision Date
Nov 23, 2007
Japanese nationals dispute contract performance in the Philippines; SC upholds jurisdiction under lex loci solutionis, rejects forum non conveniens.

Case Digest (G.R. No. 93833)

Facts:

  • Parties and Independent Contractor Agreement (ICA)
    • Petitioner Nippon Engineering Consultants Co., Ltd. (Nippon) is a Japanese consultancy firm providing technical and management support in foreign infrastructure projects.
    • Respondent Minoru Kitamura is a Japanese national permanently residing in the Philippines.
    • On March 30, 1999, Nippon and Kitamura executed an ICA in Tokyo, written in Japanese, for a one-year period beginning April 1, 1999.
  • Project assignments and non-renewal
    • Under the ICA, Kitamura served as project manager of the Southern Tagalog Access Road (STAR) Project in the Philippines.
    • As STAR neared completion, the Department of Public Works and Highways (DPWH) engaged Nippon for the Bongabon-Baler Road Improvement (BBRI) Project effective January 28, 2000; Kitamura was named project manager.
    • On February 28, 2000, petitioner Hasegawa (Nippon’s International Division GM) informed Kitamura that his ICA would expire on March 31, 2000, with no automatic renewal.
  • Pre-termination negotiations and initiation of suit
    • Kitamura, fearing unemployment, through counsel requested negotiation and reassignment to BBRI; Nippon refused, insisting the ICA had expired.
    • On June 1, 2000, Kitamura filed Civil Case No. 00-0264 for specific performance and damages in the Regional Trial Court (RTC) of Lipa City.
    • Petitioners moved to dismiss for lack of jurisdiction, invoking lex loci celebrationis and lex contractus (Japanese law), but the RTC denied the motion on June 29, 2000.
  • Appellate and Supreme Court proceedings
    • Petitioners filed a first certiorari petition (CA-G.R. SP No. 60205) in the Court of Appeals (CA); it was dismissed on procedural grounds (defective certification and verification).
    • A second petition (CA-G.R. SP No. 60827), properly verified and certified, challenged the RTC’s jurisdiction; on April 18, 2001, the CA denied relief, applying lex loci solutionis over lex loci celebrationis.
    • The CA denied reconsideration on July 25, 2001. Petitioners then sought review on certiorari under Rule 45 before the Supreme Court.

Issues:

  • Procedural issues
    • Whether the first CA petition’s dismissal barred the re-filing of a second petition.
    • Whether defects in verification/certification and corporate authorization warranted dismissal of the Supreme Court petition.
  • Substantive (jurisdictional) issue
    • Whether Philippine courts lack subject matter jurisdiction over a civil action for specific performance and damages involving a contract executed in Japan between Japanese nationals, based on:
      • Lex loci celebrationis and lex contractus principles;
      • The “most significant relationship” choice-of-law rule; or
      • The doctrine of forum non conveniens.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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