Kawasaki Port Services et. al. v.

Judge Amores (1991)

Doctrine: An action purely for injunction is a personal action as well as an
action in personam. As a personal action, personal or substituted service of
summons upon the defendant, not extra territorial service, is necessary to
confer jurisdiction upon the Court over the defendant
Facts:
C.F Sharp Kabushiki (Kabushiki) incurred several obligations from
several creditors, including petitioners herein

C.F. Sharp & Co (CF Sharp) anticipated that the creditors of Kabushiki
will run after it

Hence, C.F. Sharp prayed for injunctive relief against the petitioners'
demand for the payment of C.F. Sharp Kabushiki Kaisha's liabilities

C.F. Sharp alleged that it is separate and distinct from Kabushiki. That
the former is organized and existing under the laws of the Philippines
while the latter is under the laws of Japan.
o That it had no participation whatsoever or liability in connection
with the transactions between the latter and the defendants.

CF Sharp also prayed for declaratory relief that it is separate and

independent corporation, it is not liable for the obligations and
liabilities of Kabushiki. (Note: not available according to the court as
no action in court has yet been filed by the creditors)

As the creditor-defendants are non-residents, without business

addresses in the Philippines but in Japan, CF Sharp asked the court to
effect extraterritorial service of summons.

Judge Amores authorized the extraterritorial service of summons on

creditors
Naturally, the creditors opposed and filed "Special Appearance to
Question Jurisdiction of This Honorable Court Over Persons of
Defendants"
o

Alleged that lower court does not and cannot acquire jurisdiction
over the persons of defendants on the grounds that private
respondent's action does not refer to its personal status

The action does not have for subject matter property

contemplated in Section 17 of Rule 14 of the Rules of Court, that
the action does not pray that defendants be excluded from any
interest or property in the Philippines;

And that no property of the defendants has been attached

Action is in personam; and that the action does not fall within
any of the four cases mentioned in Section 17, Rule 14 of the
Rules of Court.

Defense: affects status of CF Sharp and liability for Kabushikis

indebtedness

ISSUE: WON an extraterritorial service of summons is allowed in this case

and therefore the Court obtained jurisdiction? NO
HELD:
Extraterritorial service of summons is proper only in four (4) instances:
(1) when the action affects the personal status of the plaintiffs:
(2) when the action relates to, or the subject of which is, property within
the Philippines, in which the defendant has or claims a lien or interest,
actual or contingent;
(3) when the relief demanded in such action consists, wholly or in part, in
excluding the defendant from any interest in property located in the
Philippines; and
(4) when the defendant non-resident's property has been attached within
the Philippines
Injunction was asked to enjoin petitioners from demanding from
private respondent the payment of the obligations of Kabushiki. It
was not prayed that petitioners be excluded from any property
located in the Philippines, nor was it alleged, much less shown, that
the properties of the defendants, if any, have been attached
Complaint does not involve the personal status of CF Sharp, nor any
property in the Philippines in which creditors have or claim an
interest, or which was attached, but purely an action for injunction,
it is a personal action as well as an action in personam, not an
action in rem or quasi in rem
As a personal action, personal or substituted service of summons on
the defendants, not extraterritorial service, is necessary to confer
jurisdiction on the court.
In an action for injunction, extra-territorial service of summons and
complaint upon the non-resident defendants cannot subject them to
the processes of the regional trial courts which are powerless to
reach them outside the region over which they exercise their
authority.