MICRONESIA v. BASSO
MICRONESIA v. BASSO
MICRONESIA v. BASSO
178382-83
CONTINENTAL MICRONESIA, INC., Petitioner,
vs. JOSEPH BASSO, Respondent.
FACTS:
Mr. Braden, Managing Director-Asia of Continental Airlines, Inc.
(Continental), offered Basso the position of General Manager of the Philippine
Branch of Continental. Basso accepted the offer. CMI took over the Philippine
operations of Continental, with Basso retaining his position as General Manager.
Basso received a letter from Mr. Ralph Schulz (Mr. Schulz), who was then CMI’s
Vice President of Marketing and Sales, informing Basso that he has agreed to work
in CMI as a consultant on an "as needed basis”. Basso, wrote a counter-proposal.
Basso, instead, was offered the position of consultant to CMI. Ms. Woodward also
informed Basso that CMI rejected his counter-proposal and, thus, terminated his
employment
Basso filed a Complaint for Illegal Dismissal with Moral and Exemplary
Damages. The Labor Arbiter also held that no employer-employee relationship
existed between Basso and the branch office of CMI in the Philippines, but
between Basso and the foreign corporation itself. On appeal, the NLRC remanded
the case to the Labor Arbiter for the determination of certain facts to settle the
issue on jurisdiction. NLRC ruled that the issue on whether the principle of lex loci
contractus or lex loci celebrationis should apply has to be further threshed out.
ISSUE:
Whether or not the Philippine law is the applicable law.
RATIO DECIDENDI:
Yes. The Philippine law is the applicable law.
Basso, though a US citizen, was a resident here from the time he was hired
by CMI until his death during the pendency of the case. CMI, while a foreign
corporation, has a license to do business in the Philippines and maintains a branch
here, where Basso was hired to work. The contract of employment was negotiated
in the Philippines. A purely consensual contract, it was also perfected in the
Philippines when Basso accepted the terms and conditions of his employment as
offered by CMI. The place of performance relative to Basso’s contractual duties
was in the Philippines. The alleged prohibited acts of Basso that warranted his
dismissal were committed in the Philippines.
A foreign law, judgment or contract contrary to a sound and established
public policy of the forum shall not be applied. Foreign law should not be applied
when its application would work undeniable injustice to the citizens or residents of
the forum. To give justice is the most important function of law; hence, a law, or
judgment or contract that is obviously unjust negates the fundamental principles of
Conflict of Laws.