foreign corp. not doing business - may be sued : Facilities Management Corp. v. Dela Olsa

FOREIGN CORPORATION NOT DOING BUSINESS IN THE PHILIPPINES – MAY BE SUED

·         Facilities Managemetn Corp. v. Dela Olsa, G.R. No. L-38649, March 26, 1979

A foreign corporation, not engaged in the business in the Philippines, is not barred from seeking redress from the courts in the Philippines, a fortiori, that some corporation cannot claim exemption from being sued in the Philippine courts for acts done against a person in the Philippines.

·         G.R. No. 77369 August 3l, 1988

HYOPSUNG MARITIME CO., LTD., petitioner, 

vs.

THE HONORABLE COURT OF APPEALS and PIONEER INSURANCE & SURETY CORPORATION, respondents.

 The present case must be distinguished from Facilities Management Corp. vs. de la Osa ⁹ which involved the non-payment by Facilities Management Corp. (FMC in short), a non-resident foreign corporation, of overtime compensation, as wen as swing shift and graveyard shift premiums to Leonardo de la Osa a Filipino, successively employed as painter, houseboy, and cashier. Notably, de la Osa was hired in Manila by the Filipino agent of FMC and the contract of employment between him and FMC was originally executed and subsequently renewed in Manila. Therein, we ruled:

Indeed, if a foreign corporation, not engaged in business in the Philippines is not barred from seeking redress from courts in the Philippines, a fortiori that same corporation cannot claim exemption from being sued in Philippine courts for acts done against a person or persons in the Philippines. ¹⁰

·         G.R. No. 72147 December 1, 1987

WANG LABORATORIES, INC., petitioner, 

vs.

THE HONORABLE RAFAEL T. MENDOZA, then Presiding Judge, Regional Trial Court, Branch CXXXIV, Makati, Metro Manila, THE HONORABLE BERNARDO ABESAMIS, incumbent Presiding Judge, Regional Trial Court, Branch CXX-XIV, Makati, Metro Manila, Public Respondents and ANGARA CONCEPCION REGALA & CRUZ LAW OFFICES Private Respondents, respondents.

Be that as it may, the issue on the suability of foreign corporation whether or not doing business in the Philippines has already been laid to rest. The Court has categorically stated that although a foreign corporation is not doing business in the Philippines, it may be sued for acts done against persons in the Philippines. The Court has ruled as follows:

Indeed if a foreign corporation, not engaged in business in the Philippines, is not barred from seeking redress from courts in the Philippines, a fortiori, that same corporation cannot claim exemption from being sued in Philippine courts for acts done against a person or persons in the Philippines (Facilities Management Corporation v. De la Osa, 89 SCRA 131 [1979]).