247 FAR EAST INTERNATIONAL IMPORT AUTHOR: PAGCALIWAGAN

AND EXPORT CORPORATION V NANKAI NOTES:

KOGYO. LD., ET AL
G.R. No. L-13525 November 30, 1962
TOPIC: What constitutes transacting business
PONENTE: Paredes, J.
FACTS:
 Far East entered into a contract of sale of steel scrap with Nankai (Foreign Corporation incorporated under
Japanese Laws)
 Nankai opened a letter of credit with the China Banking Corporation issued by Nippon Kangyo.
 4 days before the expiration of the Far East license, 3 boats of Nankai arrived.
 Upon the expiration of the export license, only 1,058.6 metric tons of steel scrap was loaded on the SS
Mina.
 The license was never renewed.
 Nankai confirmed and acknowledged delivery of the 1,058.6 metric tons of steel scrap, but asked for
damages amounting to $148,135 consisting of dead freight charges, damages, bank charges, phone and
cable expenses.
 Far East wrote the Everett Steamship Corporation, requesting the issuance of a complete set of the Bill of
Lading for the shipment, in order that payment thereof be effected against the Letter of Credit.
 Everett informed Far East that they were not in a position to comply because the Bill of Lading was issued
and signed in Tokyo by the Master of the boat, upon request of the Charterer, defendant herein.
 As repeated requests, both against the shipping agent and the buyers (Nankai), for the issuance of the of Bill
Lading were ignored, Far East filed on May 16, 1957, the present complaint for Specific Performance,
damages, a writ of preliminary mandatory injunction directed against Nankai and the shipping company, to
issue and deliver to the plaintiff, a complete set of negotiable of Lading for the 1,058.6 metric tons of scrap
and a writ of preliminary injunction against the China Banking Corporation and the Nankai to maintain the
Letter Credit.
 Far East filed for the issuance of a complete set of Bill of Lading in order that payment be effected against
the Letter of Credit. The respondent refused.
ISSUE(S): WON the court has jurisdiction over the subject matter and the person of the defendant.

HELD: YES.

RATIO:
Mr. Ishida who personally signed the contract for the purpose of selling scrap in question in behalf on Nankai
Kogyo is the Trade Manager of the said corporation. Mr. Tominaga was the Chief of the Petroleum Section of
the same company and Mr. Yoshida was the man- in- charge of the Import Section of the company’s Tokyo
branch. All of these officers are served with summons.
The testimony of Atty. Pablo Ocampo that appellant was doing business in the Philippines was
corroborated by no less than Nabuo Yoshida, one of the appellant’s officers, that he was sent to the Philippines
by his company to look into the operation of mines, thereby revealing the defendant’s desire to continue
engaging business in the Philippines, after receiving the shipment of the scrap iron under consideration, making
the Philippines a base thereof.
That a single act may bring the corporation within the purview of the statute where it is an act of the
ordinary business of the corporation. The single act or transaction is not merely incidental or casual, but is of
such character as distinctly to indicate a purpose on the part of the foreign corporation to do other business in the
state, and to make the state a basis of operations for the conduct of a part of the corporation’s ordinary business.

CASE LAW/ DOCTRINE:

DISSENTING/CONCURRING OPINION(S):