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Northwest Orient Airlines Vs

Northwest Airlines sued Sharp for unremitted ticket sale proceeds in a Japanese court. After two failed attempts to personally serve Sharp in Japan, the court served summons through diplomatic channels to Sharp's headquarters in Manila. Sharp argued this was invalid as the case was strictly in personam requiring personal service. The court held that service was valid under the Rules of Court allowing service to a foreign corporation's resident agent or designated government official if doing business in the Philippines. As Sharp did not claim to have a resident agent in Japan, serving its headquarters in Manila was permitted.

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Sarah Jane Fabricante Behiga
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565 views2 pages

Northwest Orient Airlines Vs

Northwest Airlines sued Sharp for unremitted ticket sale proceeds in a Japanese court. After two failed attempts to personally serve Sharp in Japan, the court served summons through diplomatic channels to Sharp's headquarters in Manila. Sharp argued this was invalid as the case was strictly in personam requiring personal service. The court held that service was valid under the Rules of Court allowing service to a foreign corporation's resident agent or designated government official if doing business in the Philippines. As Sharp did not claim to have a resident agent in Japan, serving its headquarters in Manila was permitted.

Uploaded by

Sarah Jane Fabricante Behiga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Northwest Orient Airlines vs.

CA
FACTS: Northwest Airlines and private respondent C.F. Sharp &
Company entered into an agreement whereby the former authorized the
latter to sell its air transportation tickets. Unable to remit the
proceeds of the ticket sales, Northwest sued Sharp for collection
of the unremitted proceeds plus damages in Tokyo, Japan. After two
attempts of service of summons were unsuccessful, the Court of
Japan served the summons through diplomatic channels upon the
defendants head office in Manila. Sharp alleges that the summons
must be served personally, the case being strictlyin personam.
ISSUE: WON a Japanese court can acquire jurisdiction over a
Philippine corporation doing business in Japan by serving summons
through diplomatic channels on the Philippine corporation at its
principal office in Manila after prior attempts to serve summons in
Japan had failed.
HELD: YES. Sec. 14, Rule 14 of the Rules of Court provides that if
the defendant is a foreign corporation doing business in the
Philippines, service may be made: (1) on its resident agent
designated in accordance with law for that purpose, or, (2) if
there is no such resident agent, on the government official
designated by law to that effect; or (3) on any of its officers or
agents within the Philippines.
If the foreign corporation has designated an agent to receive
summons, the designation is exclusive, and service of summons is
without force and gives the court no jurisdiction unless made upon
him.
Where the corporation has no such agent, service shall be made on
the government official designated by law, to wit: (a) the
Insurance Commissioner in the case of a foreign insurance company;
(b) the Superintendent of Banks, in the case of a foreign banking
corporation; and (c) the Securities and Exchange Commission, in the
case of other foreign corporations duly licensed to do business in
the Philippines. Whenever service of process is so made, the
government office or official served shall transmit by mail a copy
of the summons or other legal process to the corporation at its
home or principal office. The sending of such copy is a necessary
part of the service.

Nowhere in its pleadings did SHARP profess to having had a resident


agent authorized to receive court processes in Japan. This silence
could only mean, or least create an impression, that it had none.
Hence, service on the designated government official or on any of
SHARPs officers or agents in Japan could be availed of.

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