HSBC vs Sherman GR. No.

72494 August 11, 1989

FACTS:

Eastern book supply applied for and was granted by, HSBC an overdraft facility
in the maximum amount of Singapore dollars 200,000.00. As a security for the
repayment bythe COMPANY of the sum advanced, Jack Robert Sherman et. al. all of
whom were directors of said COMPANY at such time, executed Guarantee in favor of
petitioner. The Guarantee provides that:

"This guarantee and all rights, obligations and liabilities arising hereunder shall
be construed and determined under and may be enforced in accordance with the
laws of the Republic of Singapore. We hereby agree that the Courts of Singapore
shall have jurisdiction overall disputes arising under this guarantee . . ."

The COMPANY failed to pay its obligation. Petitioner BANK filed a civil case for a
collection of a sum of money against Sherman before the Regional Trial Court of
Quezon City. In turn, the private respondents filed a motion to dismiss on the ground of
lack of jurisdiction over the subject matter of the complaint and over the persons of the
defendants, because of the stipulations ion the guaranty that it is the Singapore courts
that will have jurisdiction over the disputes.

ISSUE:

Whether or not Philippine courts have jurisdiction over the suit.

HELD:

Yes. Applying the principle of forum non convenience, the case would be filed in
the Philippines instead of Singapore. In the ordinary course of thinking, a person will be
disinclined to litigate before a foreign tribunal. Here, respondents are citizens of the
Philippines who would rather face a complaint against them in a foreign court than
having it in the Philippines. Such was incomprehensible unless they dont want to pay.
They did not even claim, much less prove, that the filing of the action here will cause
them any unnecessary trouble, damage, or expense. On the other hand, there is no
showing that petitioner BANK filed the action here just to harass private respondents.