Title
Lao Hu Niu vs. Insular Collector of Customs
Case
G.R. No. 12379
Decision Date
Mar 14, 1917
A Chinese widow and her children sought entry to the Philippines as heirs of a deceased merchant. The Supreme Court denied their claim, ruling that inheritance alone does not grant entry or merchant status.

Case Summary (G.R. No. 12379)

Factual Background

The petitioner claimed that she was the wife of a former resident Chinese merchant who had died in the Philippine Islands prior to the attempt to enter. She asserted that at the time of death the merchant owned property in the Philippine Islands and that, as his only heirs at law and next of kin, his widow and her minor children survived him. The petitioner and her minor children therefore sought admission on the basis of their relationship to the deceased merchant.

The board of special inquiry refused permission for the applicants to enter. That refusal was affirmed by the Court of First Instance of Manila, prompting the present appeal.

Appellate Issues Framed by Counsel

In her brief, counsel for the petitioner framed the controversy as a double issue. First, counsel questioned whether the widow and legitimate minor children of a deceased resident Chinese merchant had a right to enter the Philippine Islands solely by reason of that status and relationship. Second, counsel argued for the widow’s right to enter as a merchant and, as successor to her husband, to bring the children with her.

Counsel conceded that the first part of the issues had already been resolved adversely to the applicants by the Court in Ng Hian vs. Collector of Customs. Counsel nevertheless asked the Court to overrule that precedent and to admit the applicants.

The Court’s Treatment of the First Issue: Relationship to a Deceased Resident Chinese Merchant

The Court reiterated that, in Ng Hian vs. Collector of Customs (34 Phil. Rep., 248), it had held that the widow and minor children of a deceased Chinese merchant who had been resident and engaged in business in the Philippine Islands at the time of his death were not entitled to enter the Philippine Islands solely by reason of such relationship.

The Court stated that, despite the arguments advanced by counsel seeking reconsideration, it was unable to see its way clear to overrule the former decision. Accordingly, the Court declined to depart from the holding in Ng Hian and treated the relationship-based claim as insufficient to establish a right of entry.

The Court’s Treatment of the Second Issue: Claim of Admission as a Resident Merchant

As to the second issue, the Court observed that the record did not establish that the petitioner herself was a merchant. What the record showed was that her husband was a resident Chinese merchant doing business in the Philippine Islands at the time of his death and that, at death, he left property that included a mercantile business.

The petitioner’s assumption was that the death of her husband as a merchant necessarily made his widow and children merchants because the mercantile business passed to them as part of their inheritance. The Court rejected the conclusion as not necessarily following.

Even assuming arguendo that the widow and children would inherit a mercantile business, the Court emphasized that the petitioner was still not a resident merchant. The Court treated the absence of resident status as decisive: being outside the Philippine Islands, she had never held the status of a resident merchant. Thus, she could not rely on her deceased husband’s status. She had to establish her own right to enter as a merchant.

The Court further held that the petitioner did not present the section six certificate, which it characterized as the only evidence upon which her right to enter could be based. Because she did not submit the required certificate, the application for entry

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