Nm Rothschild & Sons (Australia) Limited v. Lepanto Consolidated Mining Company

Summary

Foreign corporation challenged jurisdiction of Philippine courts over action to nullify loan and hedging contracts. The Supreme Court affirmed that courts acquired jurisdiction when the defendant voluntarily appeared by seeking affirmative relief through discovery motions, despite filing motion to dismiss for lack of jurisdiction. The Court distinguished between raising affirmative defenses (which does not constitute voluntary appearance) and seeking affirmative relief (which does). The decision clarifies that an action in personam against non-resident foreign defendant requires voluntary appearance or valid service, and that denial of motion to dismiss is generally not subject to certiorari unless there is grave abuse of discretion. The case establishes important precedent on voluntary appearance doctrine and extraterritorial service of summons on foreign corporations.