Case Digest (G.R. No. 112573)
Facts:
Northwest Orient Airlines, Inc. v. Court of Appeals and C.F. Sharp & Company, Inc., G.R. No. 112573, February 09, 1995, Supreme Court First Division, Davide, Jr., J., writing for the Court.Petitioner Northwest Orient Airlines, Inc. (NORTHWEST), a Minnesota corporation, obtained a money judgment in favor of plaintiff in a Tokyo suit against private respondent C.F. Sharp & Company, Inc. (SHARP), a Philippine corporation, for unremitted ticket sale proceeds under an International Passenger Sales Agency Agreement dated May 9, 1974. NORTHWEST sued SHARP in Tokyo on March 25, 1980; the Tokyo District Court issued a writ of summons April 11, 1980 directed to SHARP’s Yokohama office, and attempted service on April 11 and April 24, 1980, both attempts proving unsuccessful.
After the two failed attempts, the Tokyo judge ordered service at SHARP’s head office in Manila by diplomatic channels. On July 11, 1980 the Tokyo court requested the Supreme Court of Japan to effect such diplomatic service. The summons was transmitted via Japan’s Ministry of Foreign Affairs to the Japanese Embassy in Manila, then forwarded to the Philippines’ Department of Foreign Affairs and to the Executive Judge of the Court of First Instance of Manila, who directed Deputy Sheriff Rolando Balingit to serve SHARP at its Manila principal office; service occurred on August 28, 1980.
SHARP did not appear in the Tokyo proceedings; on January 29, 1981 the Tokyo court rendered judgment for NORTHWEST for ¥83,158,195 plus delay damages. The Japanese judgment became final and executory, and NORTHWEST, unable to execute it in Japan, filed on May 20, 1983 an action in the Regional Trial Court (RTC), Branch 54, Manila (Civil Case No. 83-17637), to enforce the foreign judgment.
SHARP answered on July 16, 1983, alleging the Japanese judgment was null and void for lack of jurisdiction, lack of proper notice, collusion/fraud or clear mistake of law or fact. The case was tried; after plaintiff rested, SHARP filed a Motion for Judgment on a Demurrer to Evidence (April 21, 1989) arguing lack of jurisdiction and contravention of Philippine public policy and due process. On June 21, 1989, the RTC granted the demurrer and dismissed NORTHWEST’s complaint for want of jurisdiction of the Tokyo court because service was effected in the Philippines rather than within Japan.
NORTHWEST moved for reconsideration and filed a conditional notice of appeal; the RTC gave due course to the appeal on October 16, 1989. The Court of Appeals, in a decision dated November 10, 1993 (per Associate Justice Antonio M. Martinez), affirmed the dismissal, relying on precedents (notably Boudard v. Tait) ...(Pro-only)
Issues:
- Did the Tokyo District Court acquire jurisdiction over C.F. Sharp & Company, Inc. when it served summons by diplomatic channels at SHARP’s principal office in Manila after unsuccessful attempts at service in Japan?
- If jurisdiction was acquired, is the Japanese judgment enforceable in the Philippines against SHARP?
- Is NORTHWEST entitled to attorney’s fees, litigati...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)