K.K. Shell Sekiyu Osaka Hatsubaisho and Fu Hing Oil Co., Ltd. vs. Court of Appeals.

G.R. Nos. 90306-07. July 30, 1990


Kumagai (Japanese Corporation) filed a complaint for the collection of a sum of money against Atlantic Venus (Panama Corporporation), the vessel MV Estella and Crestamonte Shipping Corporation (Philippine corporations). Atlantic is the owner of the MV Estella.

Crestamonte appointed N.S. Shipping Corporation (NSS; a japanese corporation), as its general agent in Japan which in turn appointed Kumagai as its local agent in Osaka. Kumagai supplied the MV Estella with supplies and services but despite repeated demands Crestamonte failed to pay the amounts due.

Fu Hing Oil Co., Ltd and K.K. Shell (foreign corporations not doing business in the Philippines), filed a motion to intervene, provided that upon request of NSS, it supplied marine diesel oil/fuel to the MV Estella and that despite previous demands, Crestamonte has failed to pay.

The trial court allowed the intervention of Fu Hing and K.K. Shell.

The Court of Appeals annulled the motion allowing the intervention, Fu Hing and K.K. Shell were not suppliers but sub-agents of NSS, hence they were bound by the Agency Agreement between Crestamonte and NSS, particularly, the choice of forum clause, disputes regarding this Agreement shall be subject exclusively to the jurisdiction of the District Courts of Japan.


Whether the doctrine of forum non conveniens would be a valid ground to cause the dismissal of K.K. Shell’s complaint-in-intervention.


There are still numerous material facts to be established in order to arrive at a conclusion as to the true nature of the relationship between Crestamonte and K.K. Shell and between NSS and K.K Shell. The best recourse would have been to allow the trial court to proceed with Civil Case No. 87-38930 and consider whatever defenses may be raised by private respondents after they have filed their answer and evidence to support their conflicting claims has been presented.

The choice-of-forum clause in the agreement (paragraph 12.0) has not been conclusively shown to be binding upon K.K. Shell, additional evidence would also still have to be presented to establish this defense, K.K. Shell cannot therefore, as of yet, be barred from instituting an action in the Philippines.

Please check out our tags for more personal case digests!

abuse of rights (2) Administrative Law (5) Agency (4) alteration (2) Article 19 (2) Article 26 of the Family Code (2) article 36 (4) Article 148 of the Family Code (2) Article 153 of the Family Code (3) Bill of Rights (3) Bright Future Technologies Inc. (1) capacity to contract marriage (2) capital (4) Case Digest (327) Chain of Custody (2) Civil Code (20) civil law (56) Civil Procedure (49) commercial law (80) Company Policies (2) Conflicts of Law (33) Constitutional Law (25) Constitutional Rights of Employers and Employees (2) Corporate Law (2) court of appeals (9) Credit Card (2) Credit Transactions (7) criminal law (3) criminal procedure (9) Different Kind Of Obligations (2) dismissal (2) divorce (2) Donation (2) Dreamwork (2) easements (2) ec2 (2) Effect of Partial payment (2) ejusdem generis (2) Election Law (2) Eminent Domain (4) Employee’s Rights (2) evidence (2) Expropriation (2) Extinguishment of Obligations – Compensation (2) family code (19) family home (4) Foreclosure (2) foreign divorce (2) forgery (2) G.R. No. 145391 (1) income (5) income taxation (4) Injunction (2) instagram (2) Insurable Interest (2) Insurance (54) Intellectual Property (6) japan (5) Judicial review (2) Just Compensation (2) labor law (37) Law School (318) Local Government Code (2) marriage (12) NAIA Terminal 3 (2) National Labor Relations Commission (7) negotiable instrument (10) Oblicon (19) Obligation and Contracts (25) Payment through Agent (2) Persons and Family Relations (21) Philippine Airlines (2) Philippine Airlines Inc. (2) Philippine citizenship (2) Police power (2) Political Law (33) Ponente (7) Premium Payment (2) programming (2) property (8) Provisional Remedies (2) Psychological Incapacity (4) public officers (2) Reinsurance (3) Remedial Law (56) Residence (2) Rights to Security of Tenure and Due Process (2) security (2) Seven (7) Cardinal Rights of Workers (2) shrines (2) situs (3) situs of taxation (3) Social justice (7) Sources of Labor Rights and Obligations (4) Succession (7) Taxation Law (6) temple (2) tokyo (3) TYPES of Employees (2) what is income (2)