3 saudi vs rebesencio.pdf - SUPREME COURT REPORTS ANNOTATED...

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2/28/2021 SUPREME COURT REPORTS ANNOTATED VOLUME 746 1/37 G.R. No. 198587. January 14, 2015. * SAUDI ARABIAN AIRLINES (SAUDIA) and BRENDA J. BETIA, petitioners, vs. MA. JOPETTE M. REBESENCIO, MONTASSAH B. SACAR-ADIONG, ROUEN RUTH A. CRISTOBAL and LORAINE S. SCHNEIDERCRUZ, respondents. Conflict of Laws; Corporations; Foreign Corporations Doing Business in the Philippines; Foreign Investments Act; A plain application of Section 3(d) of the Foreign Investments Act leads to no other conclusion than that Saudia is a foreign corporation doing business in the Philippines. As such, Saudia may be sued in the Philippines and is subject to the jurisdiction of Philippine tribunals. —By its own admission, Saudia, while a foreign corporation, has a Philippine office. Section 3(d) of Republic Act No. 7042, otherwise known as the Foreign Investments Act of 1991, provides the following: The phrase “ doing business shall include . . . opening offices, whether called “liaison” offices or branches ; . . . and any other act or acts that imply a continuity of commercial dealings or arrangements and contemplate to that extent the performance of acts or works, or the exercise of some of the functions normally incident to, and in progressive prosecution of commercial gain or of the purpose and object of the business organization. (Emphasis supplied) A plain application of Section 3(d) of the Foreign Investments Act leads to no other conclusion than that Saudia is a foreign corporation doing business in the Philippines. As such, Saudia may be sued in the Philippines and is subject to the jurisdiction of Philippine tribunals. Same; Contracts; Transnational transactions entail differing laws on the requirements for the validity of the formalities and substantive provisions of contracts and their interpretation. Transnational transactions entail differing laws on the requirements for the validity of the formalities and substantive provisions of contracts and their interpretation. These transactions inevitably lend themselves to the possibility of various fora for litigation and dispute resolution. As observed by an eminent expert on transnational law: _______________ * SECOND DIVISION. 141 VOL. 746, JANUARY 14, 2015 141 Saudi Arabian Airlines (Saudia) vs. Rebesencio The more jurisdictions having an interest in, or merely even a point of contact with, a transaction or relationship, the greater the number of potential fora for the resolution of disputes arising out of or related to that transaction or relationship. In a world of increased mobility, where business and personal transactions
2/28/2021 SUPREME COURT REPORTS ANNOTATED VOLUME 746 2/37 transcend national boundaries, the jurisdiction of a number of different fora may easily be invoked in a single or a set of related disputes.

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