Art. 16 Chapter I of the Civil Code of the Philippines

ARTICLE 16: Real property as well as personal property is subject to the law of the country where it is stipulated.

However, intestate and testamentary successions, both with respect to the order of succession and to the amount of successional rights and to the intrinsic validity of testamentary provisions, shall be regulated by the national law of the person whose succession is under consideration, whatever may be the nature of the property and regardless of the country wherein said property may be found. (10a)

source: rpmeureka.com

 

Explanation/Discussion:

(1) Conflicts rule on property (lex rei sitae)

Property whether real or personal is a rule governed by the lex rei sitae (law of the place where the property is situated).

It is inevitable that the rule should be thus for real property, for after all, real property is attached to the land, and a contrary rule may render a judgment on the land ineffective or incapable of enforcement.

On the other hand, the rule enunciated under the new civil code for personal property changes the old rule on the matter. Under the old civil code (article 10, old civil code), personal property was subjected to the law of the nation of the owner; that is, personal property followed the national or domiciliary law of the owner, under the doctrine of mobilia sequutur personam. The old rule grew up in the middle ages when movable property could be easily carried from place to place. However, now that there has been a great increase in the amount and variety of personal property not immediately connected with the person of the owner (Wharton, conflicts of laws, secs. 297-311), it was deemed advisable by the congress of the Philippines to adopt the doctrine of lex rei sitae also to movables (report of senator tonada, chairman, special committee on the new civil code).

(2) Applications of the doctrine of lex rei sitae

Shares of stocks of a foreigner, even if personal property can be taxed in the Philippines so long as the property is located in this country. Bank deposits in the Philippines even if belonging to a foreigner may be subject of attachment proceedings. Taxes may be imposed on dividends from shares in a gas corporation situated in the Philippines even if the stockholders do not reside here.

(1)   Exception to the lex situs rule

One important exception to the lex situs rule occurs in the case of successional rights. Thus the following matters are governed, not by the lex situs, but by the national law of the deceased.

(a)    order of succession

(b)   Amount of successional rights (this refers to the amount of property that each heir is legally entitled to inherit from the estate available for distribution).

(c)    Intrinsic validity of the provisions of a will

Examples: whether a disinheritance has properly been made or not; whether a testamentary disposition can be given effect or not.

(d) Capacity to succeed

(4) Examples

                        In country X, even recognized illegitimate children are not allowed to inherit. A citizen of country X dies in the Philippines, with some of his parcels of land located in our country. Under our laws, recognized illegitimate child of the deceased, be entitled to inherit?

                        Answer: no, because under the law of his father’s country he has no right to inherit. This is so even if the lands are found in the Philippines.

(5) Defect of art.16, par.2 (successional rights)

If a Filipino dies leaving lands in china, should the inventory of his estate required by our courts include the lands in china?

The conventional answer is “YES” because we have to know the total value of his estate for eventual distribution to his heirs. As a matter of fact, under art. 16 par.2, it is our law that should govern their disposition. This answer would be all right, provided that Chinese courts would respect the decisions of our courts.

(6) The renvoi problem

Renvoi literally means a referring back; the problem arises when there is a doubt as to whether a reference in our law.

a.       is a reference to the INTERNAL law of said foreign law, or

b.      Is a reference to the WHOLE of the foreign law, including its CONFLICTS RULES.