3C | CONFLICT OF LAWS | ATTY. ARIS GULAPA 1 CONFLICT OF LAWS ABACAN, CLA JALANDONI, JANINA NADENE AGUILA, TRICIA KOGA, KEN ALCANTARA, FRANCIS LAIDAN, KRISTOFFER ALCANTARA, REGINE ANDREI LAZARO, PHOEBE ANN BAUTISTA, PEARL CHARISSE LOMOTAN, JONATHAN JOSEPH CASE DIGESTS BELLO, CRISTINA MARIE LUCIDO, LE IRIS CAMIÑA, GERARD MARTIN LUMANOG, ERLAINE CARANDANG, NINA HERSCHELICA MADAMBA, AYAH CRISTINA CARIÑO, MARIANNE MAGPANTAY, REGINE EMPRESS CARINGAL, KRISTIA LORRAINE MANUEL, KAREN KAYE CHING, MARIA ADELA MESINA, MARI JANINE EVAN CLEMENTE, CHRISTINE PRESBITERO, JULIAN SANTOS CONSUNJI, PENNY RELLOSA, RASHY DEVESA, VAN LEE REYES, JOSEPH ESPIRITU, DAYNE SANTOS, JJ ESQUIVIAS, MA. CARMELA SEVILLA, TONI LOU EVANGELISTA, CARLO SOLIMAN, NELLAINE FARCON, JOSE FLORINIO SOLLANO, MIKAELLA GARCIA, CESAR DOMINI TUAZON, LARA KARINA GRAIDO, HELEN MAUREEN YAO, AISLYN GRANTOZA, CAMILLE HABANA, GABRIEL HERNANDEZ, JASON 3C 2012-2013 nd 2 SEMESTER ABACAN, AGUILA, ALCANTARA F, ALCANTARA R, BAUTISTA, BELLO, CAMIÑA, CARANDANG, CARIÑO, CARINGAL, CHING, CLEMENTE, CONSUNJI, DEVESA, ESPIRITU, ESQUIVIAS, EVANGELISTA, FARCON, GARCIA, GRAIDO, GRANTOZA, HABANA, HERNANDEZ, JALANDONI, KOGA, LAIDAN, LAZARO, LOMOTAN, LUCIDO, LUMANOG, MADAMBA, MAGPANTAY, MANUEL, MESINA, PRESBITERO, RELLOSA, REYES, SANTOS, SEVILLA, SOLIMAN, SOLLANO, TUAZON, YAO. 3C | CONFLICT OF LAWS | ATTY. ARIS GULAPA 2 JURISDICTION AND CHOICE OF LAW 4. The orders of the respondent Judge are an unwarranted departure from established jurisprudence governing the case; and that he acted without or in excess of his jurisdiction in is the orders complained of] 1. SWEET LINES INC. V. TEVES [Claims of Tandog and Tiro: Facts: Respondents Atty. Leovigildo Tandog and Rogelio Tiro, bought tickets for 1. Condition No. 14 is not valid, since the same is not an essential element of the Voyage 90 on December 31, 1971 at the branch office of petitioner, Sweet Lines Inc., contract of carriage, being in itself a different agreement which requires the mutual a shipping company transporting inter-island passengers and cargoes, at Cagayan consent of the parties to it de Oro City. Tandog and Tiro were to board Sweet Lines’ vessel, M/S "Sweet Hope" 2. They had no say in its preparation, the existence of which they could not refuse, bound for Tagbilaran City via the port of Cebu. hence, they had no choice but to pay for the tickets and to avail of Sweet Lines’ shipping facilities out of necessity Upon learning that the vessel was not proceeding to Bohol (since many passengers 3. The carrier "has been exacting too much from the public by inserting impositions in were bound for Surigao), Tandog and Tiro, per advice, went to the branch office for the passage tickets too burdensome to bear," that the condition which was printed in proper relocation to M/S "Sweet Town". Because the said vessel was already filled to fine letters is an imposition on the riding public and is not binding, citing - while venue capacity, they were forced to agree "to hide at the cargo section to avoid inspection of actions may be transferred from one province to another, such arrangement of the officers of the Philippine Coastguard." requires the "written agreement of the parties", not to be imposed unilaterally] Tandog and Tiro alleged that they were exposed to the scorching heat of the sun and Held: There was a valid contract of carriage entered into by Sweet Lines and Tandog the dust coming from the ship's cargo of corn grits during the trip and that the tickets and Tiro. Furthermore, the passage tickets are the best evidence thereof. All the they bought at Cagayan de Oro City for Tagbilaran were not honored and they were essential elements of a valid contract (consent, cause or consideration and object) constrained to pay for other tickets. Hence, they sued Sweet Lines for damages and are present. for breach of contract of carriage in the alleged sum of P10,000.00 before CFI of Misamis Oriental. Whenever a passenger boards a ship for transportation from one place to another, he is issued a ticket by the shipper, which has all the elements of a written contract: (1) Sweet Lines moved to dismiss the complaint on the ground of improper venue based the consent of the contracting parties manifested by the fact that the passenger on the condition printed at the back of the tickets: boards the ship and the shipper consents or accepts him in the ship for 14. It is hereby agreed and understood that any and all actions arising out of the transportation; (2) cause or consideration which is the fare paid by the passenger as conditions and provisions of this ticket, irrespective of where it is issued, shall be filed stated in the ticket; (3) object, which is the transportation of the passenger from the in the competent courts in the City of Cebu. place of departure to the place of destination which are stated in the ticket. The motion was denied. MR was filed but was also denied. Hence, this instant However, in this case, with respect to the 14 conditions printed at the back of the petition for prohibition for preliminary injunction, 'alleging that the respondent judge passage tickets, these are commonly known as "contracts of adhesion," the validity Teves has departed from the accepted and usual course of judicial preoceeding" and and/or enforceability of which will have to be determined by the peculiar "had acted without or in excess or in error of his jurisdicton or in gross abuse of circumstances obtaining in each case and the nature of the conditions or terms discretion. sought to be enforced. Issue: May a common carrier engaged in inter-island shipping stipulate thru a Generally, stipulations in a contract come about after deliberate drafting by the condition printed at the back of passage tickets to its vessels that any and all actions parties. However, there are certain contracts almost all the provisions of which have arising out of the contract of carriage should be filed only in a particular province or been drafted only by one party. Such contracts are called contracts of adhesion, city, in this case the City of Cebu, to the exclusion of all others? because the only participation of the other party is the signing of his signature or his 'adhesion'. Insurance contracts, bills of lading, contracts of make of lots on the [Claims of Sweet Lines: installment plan fall into this category. 1. Condition No. 14 is valid and enforceable, since Tandog and Tiro acceded to it when they purchased passage tickets at its Cagayan de Oro branch office and took By the peculiar circumstances under which contracts of adhesion are entered into, in its vessel M/S "Sweet Town" for passage to Tagbilaran, Bohol which the other party, in this case, the passengers, who are made to adhere thereto 2. The condition of the venue of actions in the City of Cebu is proper since venue on the "take it or leave it" basis, certain guidelines in the determination of their validity may be validly waived and/or enforceability have been formulated for justice and fair play. 3. Condition No. 14 is unequivocal and mandatory, the words and phrases "any and all", "irrespective of where it is issued," and "shag" leave no doubt that the intention of In recognition of the character of contracts of this kind, the protection of the Condition No. 14 is to fix the venue in the City of Cebu, to the exclusion of other disadvantaged is expressly enjoined by the New Civil Code: Art. 24. In all contractual places ABACAN, AGUILA, ALCANTARA F, ALCANTARA R, BAUTISTA, BELLO, CAMIÑA, CARANDANG, CARIÑO, CARINGAL, CHING, CLEMENTE, CONSUNJI, DEVESA, ESPIRITU, ESQUIVIAS, EVANGELISTA, FARCON, GARCIA, GRAIDO, GRANTOZA, HABANA, HERNANDEZ, JALANDONI, KOGA, LAIDAN, LAZARO, LOMOTAN, LUCIDO, LUMANOG, MADAMBA, MAGPANTAY, MANUEL, MESINA, PRESBITERO, RELLOSA, REYES, SANTOS, SEVILLA, SOLIMAN, SOLLANO, TUAZON, YAO. 3C | CONFLICT OF LAWS | ATTY. ARIS GULAPA 3 property or other relations, when one of the parties is at a disadvantage on account of its vessels and can afford to litigate in any of these places. Hence, the filing of the of his moral dependence, ignorance indigence, mental weakness, tender age and suit in the CFI of Misamis Oriental will not cause inconvenience or prejudice Sweet other handicap, the courts must be vigilant for his protection. Lines. In line with that, the court ruled that Condition No. 14 should be held as void Public policy is that principle of the law, which holds that no subject or citizen can and unenforceable for the following reasons: lawfully do that which has a tendency to be injurious to the public or against the public good. Under this principle, the freedom of contract or private dealing is 1. Under circumstances obligation in the inter-island shipping industry, it is not restricted by law for the good of the public. just and fair to bind passengers to the terms of the conditions printed at the back of the passage tickets. Petition for prohibition was dismissed. There is an acute shortage in inter-island vessels plying between the country's Separate Opinions several islands, and with that, the facilities they offer leave much to be desired, thus, passengers literally scramble to whatever accommodations may be availed of, even BARREDO, J., concurring: Although, agreements regarding change of venue are through circuitous routes, and/or at the risk of their safety and this was precisely the enforceable, there may be instances where for equitable considerations and in the experience of Tandog and Tiro. Under these circumstances, it is hardly just and better interest of justice, a court may justify the laying of the venue in the place fixed proper to expect the passengers to examine their tickets for conditions that may be by the rules instead of following written stipulation of the parties.