SAUDI ARABIAN AIRLINES vs CA 297 SCRA 469

Facts:

On January 21, 1988 defendant SAUDIA hired plaintiff as a Flight Attendant for its airlines based in Jeddah, Saudi Arabia. . . .

On April 27, 1990, while on a lay-over in Jakarta, Indonesia, plaintiff went to a disco dance with fellow crew members Thamer Al-Gazzawi and Allah Al-Gazzawi, both Saudi nationals. Because it was almost morning when they returned to their hotels, they agreed to have breakfast together at the room of Thamer. When they were in te (sic) room, Allah left on some pretext. Shortly after he did, Thamer attempted to rape plaintiff. Fortunately, a roomboy and several security personnel heard her cries for help and rescued her. Later, the Indonesian police came and arrested Thamer and Allah Al-Gazzawi, the latter as an accomplice.

When plaintiff returned to Jeddah a few days later, several SAUDIA officials interrogated her about the Jakarta incident. They then requested her to go back to Jakarta to help arrange the release of Thamer and Allah. In Jakarta, SAUDIA Legal Officer Sirah Akkad and base manager Baharini negotiated with the police for the immediate release of the detained crew members but did not succeed because plaintiff refused to cooperate. She was afraid that she might be tricked into something she did not want because of her inability to understand the local dialect. She also declined to sign a blank paper and a document written in the local dialect. Eventually, SAUDIA allowed plaintiff to return to Jeddah but barred her from the Jakarta flights.

Plaintiff learned that, through the intercession of the Saudi Arabian government, the Indonesian authorities agreed to deport Thamer and Allah after two weeks of detention. Eventually, they were again put in service by defendant SAUDI (sic). In September 1990, defendant SAUDIA transferred plaintiff to Manila.

On January 14, 1992, just when plaintiff thought that the Jakarta incident was already behind her, her superiors requested her to see Mr. Ali Meniewy, Chief Legal Officer of SAUDIA, in Jeddah, Saudi Arabia. When she saw him, he brought her to the police station where the police took her passport and questioned her about the Jakarta incident. Miniewy simply stood by as the police put pressure on her to make a statement dropping the case against Thamer and Allah. Not until she agreed to do so did the police return her passport and allowed her to catch the afternoon flight out of Jeddah.

One year and a half later or on lune 16, 1993, in Riyadh, Saudi Arabia, a few minutes before the departure of her flight to Manila, plaintiff was not allowed to board the plane and instead ordered to take a later flight to Jeddah to see Mr. Miniewy, the Chief Legal Officer of SAUDIA. When she did, a certain Khalid of the SAUDIA office brought her to a Saudi court where she was asked to sign a document written in Arabic. They told her that this was necessary to close the case against Thamer and Allah. As it turned out, plaintiff signed a notice to her to appear before the court on June 27, 1993. Plaintiff then returned to Manila.

Shortly afterwards, defendant SAUDIA summoned plaintiff to report to Jeddah once again and see Miniewy on June 27, 1993 for further investigation. Plaintiff did so after receiving assurance from SAUDIA's Manila manager, Aslam Saleemi, that the investigation was routinary and that it posed no danger to her.

In Jeddah, a SAUDIA legal officer brought plaintiff to the same Saudi court on June 27, 1993. Nothing happened then but on June 28, 1993, a Saudi judge interrogated plaintiff through an interpreter about the Jakarta incident. After one hour of interrogation, they let her go. At the airport, however, just as her plane was about to take off, a SAUDIA officer told her that the airline had forbidden her to take flight. At the Inflight Service Office where she was told to go, the secretary of Mr. Yahya Saddick took away her passport and told her to remain in Jeddah, at the crew quarters, until further orders.

On July 3, 1993 a SAUDIA legal officer again escorted plaintiff to the same court where the judge, to her astonishment and shock, rendered a decision, translated to her in English, sentencing her to five months imprisonment and to 286 lashes. Only then did she realize that the Saudi court had tried her, together with Thamer and Allah, for what happened in Jakarta. The court found plaintiff guilty of (1) adultery; (2) going to a disco, dancing and listening to the music in violation of Islamic laws; and (3) socializing with the male crew, in contravention of Islamic tradition.

Facing conviction, private respondent sought the help of her employer, petitioner SAUDIA. Unfortunately, she was denied any assistance. She then asked the Philippine Embassy in Jeddah to help her while her case is on appeal. Meanwhile, to pay for her upkeep, she worked on the domestic flight of SAUDIA, while Thamer and Allah continued to serve in the international flights.

Because she was wrongfully convicted, the Prince of Makkah dismissed the case against her and allowed her to leave Saudi Arabia. Shortly before her return to Manila, she was terminated from the service by SAUDIA, without her being informed of the cause.

On November 23, 1993, Morada filed a Complaint for damages against SAUDIA, and Khaled Al-Balawi ("Al-Balawi"), its country manager.

On January 19, 1994, SAUDIA filed an Omnibus Motion To Dismiss which raised the following grounds, to wit: (1) that the Complaint states no cause of action against Saudia; (2) that defendant Al-Balawi is not a real party in interest; (3) that the claim or demand set forth in the Complaint has been waived, abandoned or otherwise extinguished; and (4) that the trial court has no jurisdiction to try the case.

Issue: Whether of not the trial court can validly take cognizance and decide upon the case.

Held: Yes

Conflicts of Laws ;

Where the factual antecedents satisfactorily establish the existence of a foreign element, the problem could present a "conflicts case". A factual situation that cuts across territorial lines and is affected by the diverse laws of two or more states is said to contain a "foreign element". The presence of a foreign element is inevitable since social and economic affairs of individuals and associations are rarely confined to the geographic limits of their birth or conception.

The forms in which a foreign element may appear are many, such as the fact that one party is a resident Philippine National and that the other is a resident foreign corporation - The forms in which this foreign element may appear are many.

                             

1. The foreign element may simply consist in the fact that one of the parties                                    to a contact is an alien or has a foreign domicile, or

2. that a contract between nationals of one State involves properties situated                                    in another state.

3. it may assume complex form.

4. in this case, the foreign element consisted in the fact that private                                    respondent Morada is a resident Philippine National and that petitioner                                    SAUDIA is a resident foreign corporation.

5. by virtue of the employment, events transpire across national borders that                                 caused "conflict" situation to arise.

Forum Convenience - Pragmatic considerations

                              1. Convenience of the Parties

                              2. Paramount is the Private Interest of the Parties.

                              3. Enforceablility of a judgment if one is obtained.

                              4. Relative advantages and obstacles to a fair trial are equally 

                                  important.

                             

- Plaintiff may not by choice of a inconvenient forum, vex, harass or oppress                                   the defendant by inflicting upon him needless expense or disturbance.

- Plaintiff's choice of forum should not be disturbed unless the balance is                                 strongly in favor of the defendant.

- Forcing a party to seek remedial action in a place where she no longer                                  maintains substantial connections would cause a fundamental unfairness                                 to her.

Jurisdiction over the Persons

1. Over the respondent / plaintiff ; by filing her Complaint and Amended Complaint,  she has voluntarily submitted herself to the jurisdiction of the court.

2. Over the petitioner / defendant ; praying for the dismissal of the complaint on grounds other than lack of jurisdiction

Choice of Applicable Law ; seeks to answer two important questions :

1. What legal system should control a given situation where some of the significant facts occurred in two or more states and

2. To what extent should the chosen legal system regulate the situation.

Choice of Law Theories:

     

Characterization or Doctrine of Qualification ; the process of deciding whether or not the facts relate to the kind of question specified in a conflicts rule. Determine under what category a certain set of facts or rules fall. The purpose of "characterization" is to enable the forum to select the proper law.

An essential element of conflict rules is the indication of a "test" or "connecting factor" or "point of contact"

Our starting point of analysis is factual situation, event or operative fact.

A factual relationship and a connecting factor or point of contact, such as the situs of the res, the place of celebration, the place of performance, or the place of wrondoing.

                             

      "Test factors" ; "points of contact" ; "connecting factors"; any of the following: (1) the nationality of a person, his domicile, his residence, his  place of sojorn or his origin; (2) the seat of a legal or juridical person, such as a corporation; (3) the situs of a thing, that is, the place where a thing is or is deemed to be situated, lex situs is decisive when real reights are involved; (4) the place where an act has been done, the locus-actus, lex loci actus is particularly important in contracts and torts; (5) the place where an act is intended to come into effect; e.g., the place of performance of contractual duties or the place where a power of attorney is to be exercised; (6) the intention of the contracting parties as to what law should govern their agreement - lex loci intentionis; (7) the place where the judicial or administrative proceedings are instituted or done, the lex fori (8) the flag ship, practically decisive of all legal relationships of the ship and of its master or owner as such..

The Situs is the Philippines where the tort is committed (lex loci delicti commissi), it is in the Philippines where the defendant allegedly deceived the plaintiff, a citizen residing and working here and the fact that certain acts or parts of the injury occurred in another country is of no moment, for what is important is the place where the over-all harm or the totality of the injury to the person, reputation, social standing and human rights of the plaintiff had lodged.

However there is the widespread criticism of the traditional rule of lex loci delicti commissi.

Apply State of the Most Significant relationship Rule - appropriate theory on tort liability:

        1) the place where the injury occurred

        2) the place where the conduct causing the injury occurred

        3) the domicile, residence, nationality, place of incorporation and place of business of the

            parties;

        4 The place where the relationship, if any, between the parties is centered

The Philippines is the situs of the tort complained of and the place " having the most interest in the problem", the Philippine Law on tort liability should have paramount application to and control in the resolution of the legal issues arising therein in view of the foregoing.

        1) The respondent is a resident Filipina National

        2) The petitioner is a resident foreign corporation engage here in the business of international air

            carriage

        3) The relationship was centered in the Philippines

        4) The Philippines has the most significant contact with the matter in this dispute

        5) The Philippines is the situs of the tort complained of

        6) The Philippines has the most interest in the problem

        7) The RTC has jurisdiction over the parties and the subject matter of the complaint