Below is a comprehensive discussion of the venue rules in the Philippines relating specifically to actions against non-residents under the Rules of Court (focusing on Rule 4, on Venue, in relation to pertinent provisions on jurisdiction and service of summons). I have included references to pertinent jurisprudence and rules to give you a thorough understanding of the subject.

I. INTRODUCTION

When instituting a civil action in the Philippines against a defendant who is a non-resident, the key considerations are:

Nature of the action (real or personal).
Location of the subject property, if any.
Residence or whereabouts of the defendant, and whether the defendant is found in the Philippines or not.
Applicable procedural rules on venue (Rule 4) and on extraterritorial service of summons (Rule 14).

Venue is distinct from jurisdiction, though the two are often discussed together. Jurisdiction concerns the power of the court to hear and decide a case, while venue merely delimits the geographical area where a case should be filed. Nonetheless, failure to lay venue properly can result in dismissal if timely objected to by the defendant.

II. RELEVANT PROVISIONS OF RULE 4 (VENUE OF ACTIONS)

Under the 2019 Amendments to the Rules of Civil Procedure (which superseded the 1997 Rules of Civil Procedure), Rule 4 remains the principal reference for determining where to file actions.

A. Section 1: Venue of Real Actions

Section 1. Venue of real actions. – Actions affecting title to or possession of real property, or interest therein, shall be commenced and tried in the proper court which has territorial jurisdiction over the area where the real property (or any part thereof) is situated.

If the defendant is a non-resident in a real action, it does not change the rule that the venue is where the property is located. The real property’s location dictates venue. Notably:

If the real property is located in one city or province, the action must be filed in the court of that city or province.
If the property is located in several areas, any of those areas can be the proper venue, at the option of the plaintiff.

Even if the defendant resides outside the Philippines, the courts where the property is located have venue (and, presumably, also in rem or quasi in rem jurisdiction) over the action.

B. Section 2: Venue of Personal Actions

Section 2. Venue of personal actions. – All other actions may be commenced and tried where the plaintiff or any of the principal plaintiffs resides, or where the defendant or any of the principal defendants resides, or in the case of non-resident defendants, where they may be found, at the election of the plaintiff.

1. Plaintiff’s Choice of Venue

For personal actions (e.g., collection of sums of money, damages, breach of contract), the general rule is that the action can be filed in either:

The place where the plaintiff resides; or
The place where the defendant resides (if in the Philippines).

If the defendant is not a resident of the Philippines or is a non-resident who is temporarily in the Philippines, the action may be filed where the non-resident defendant may be found (i.e., if they are physically present in a particular city or province, they can be sued there), or where the plaintiff resides.

2. Non-Resident Defendant “Found” in the Philippines

If a non-resident defendant can actually be found (i.e., physically present) in the Philippines at some point, a personal action may be filed in the location where that defendant is found and served with summons.

3. Non-Resident Defendant NOT Found in the Philippines

When the defendant is not found in the Philippines at all, the plaintiff generally elects to file the action where the plaintiff resides. However, one must also consider Rule 14 on extraterritorial service of summons to ensure the court acquires jurisdiction over the defendant or over the res in question.

III. VENUE RULES SPECIFIC TO NON-RESIDENT DEFENDANTS

1. Distinction Between In Personam and In Rem/Quasi in Rem Actions

In Personam Actions (e.g., a collection for a sum of money, an action for damages, or breach of contract):
- Normally require personal or substituted service of summons on the defendant within the Philippines to vest the court with jurisdiction over their person.
- If the non-resident defendant is not present in the Philippines, the court may only proceed if it acquires jurisdiction in a quasi in rem sense (by attaching property of the defendant in the Philippines) or there is effective extraterritorial service of summons as allowed by Rule 14, Section 15.
In Rem or Quasi in Rem Actions (e.g., actions involving the status of property within the Philippines, or an action to partition property located in the Philippines):
- Venue is where the property is located (for real actions) or where the plaintiff resides (for certain personal actions that can be quasi in rem), and the action’s effect is primarily on the property (or the status/ownership thereof).

2. Venue in Real Actions (Property in the Philippines)

Even if the defendant is a non-resident, real or immovable property located in the Philippines anchors the venue in the place where the property is situated. The law deems that local courts are the most convenient forum regarding issues of land within their territorial boundaries.

3. Venue in Personal Actions

For personal actions (e.g., breach of contract, quasi-delict, tort), the general rule under Section 2, Rule 4, applies:

If the defendant is a non-resident and is found in the Philippines, the case can be filed where the defendant may be found or where the plaintiff resides.
If the defendant is a non-resident and not found in the Philippines, practically, the plaintiff sues in the place of the plaintiff’s residence, but must undertake extraterritorial service of summons under Rule 14 to vest the court with at least quasi in rem jurisdiction (unless the defendant voluntarily appears, thereby submitting to the court’s jurisdiction in personam).

4. Special Cases and Exceptions

Stipulations on Venue (Rule 4, Section 4)
The parties may, by written agreement, stipulate a specific venue. Such stipulations, if valid, generally prevail unless they contravene public policy, or are purely designed to oust the courts of jurisdiction. Even if the defendant is a non-resident, if a valid stipulation exists, it will usually be followed.
Rule 14 Provisions
- Extraterritorial Service: Even if the venue is properly laid in the Philippines, the court needs proper service of summons. Under Rule 14, Section 15, extraterritorial service is allowed when the defendant is non-resident and the action involves the personal status of the plaintiff, or the property of the defendant located in the Philippines (in rem or quasi in rem). The modes include:
  1. Personal service out of the Philippines;
  2. Publication in a newspaper of general circulation (with a copy of the summons and order of the court sent by registered mail to the last known address of the defendant);
  3. Any other manner the court may deem sufficient.
- Voluntary Appearance (Rule 14, Section 20): If the non-resident defendant voluntarily appears in court (e.g., files an answer without objecting to jurisdiction), the court acquires jurisdiction over the defendant’s person. This, however, does not alter the principle that venue must still be properly laid.

IV. IMPORTANT JURISPRUDENCE

Davao Light & Power Co., Inc. v. Court of Appeals, 204 SCRA 343 (1991)
- Emphasizes that venue is a matter of procedural convenience and can be waived, but if a defendant properly contests improper venue, the action can be dismissed or transferred.
Heacock v. Macondray & Co., 42 Phil. 205 (1921)
- Though an older case, it remains a classic reference. It tackled the principle that an action against a non-resident defendant for a personal claim can be pursued if the defendant is found and served in the Philippines, or if extraterritorial service is validly done.
Keck v. Philippine Commercial International Bank, 540 SCRA 149
- Reiterates that an action in personam against non-residents demands service of summons within the Philippines unless it is converted into an action quasi in rem by attaching property.
Riodica v. Court of Appeals, 213 SCRA 420
- Illustrates the distinction between in rem, quasi in rem, and in personam, and how that affects the methods of acquiring jurisdiction over non-resident defendants.

V. PROCEDURAL STEPS FOR FILING AGAINST A NON-RESIDENT

Determine the Nature of the Action:
- Real or Personal (in personam or quasi in rem).
Identify the Proper Venue:
- Real action: Where the property is located.
- Personal action:
  - Where the plaintiff resides;
  - Where the defendant (if present or residing in the Philippines) resides; or
  - Where the non-resident defendant may be found, if temporarily present.
Check Any Stipulation on Venue:
- If there is a valid agreement specifying venue.
Ensure Proper Service of Summons:
- If the defendant is a non-resident and not found in the Philippines, comply with Rule 14, Section 15 on extraterritorial service (publication, personal service abroad, or other means the court deems sufficient).
Be Mindful of Jurisdictional Requisites:
- For in personam actions, personal or voluntary service in the Philippines is typically needed unless extraterritorial service is validly resorted to under a quasi in rem context.
- For in rem or quasi in rem actions, the property (or the res) in the Philippines provides the basis for jurisdiction, and extraterritorial service ensures due process.

VI. PRACTICAL GUIDANCE AND TIPS

Always Verify the Defendant’s Status
- If a defendant is physically present (even temporarily), it may be advantageous to effect personal service to secure in personam jurisdiction directly.
Attach Property if Feasible
- If the action is for collection of money or enforcement of an obligation, and the defendant is a non-resident with property in the Philippines, consider a provisional remedy (e.g., attachment) to convert the action into quasi in rem, ensuring the local court can adjudicate the dispute.
Comply Strictly with Extraterritorial Service Requirements
- Failure to observe proper extraterritorial service can result in the dismissal of the complaint for lack of jurisdiction over the person or the res.
Check for Forum Selection Clauses
- If the contract has a forum selection clause specifying courts outside the Philippines, you must address the potential motion to dismiss on the ground of forum non conveniens or improper venue. In the Philippines, however, a mere stipulation of foreign venue does not automatically oust Philippine courts of jurisdiction if the plaintiff is allowed to file suit here, unless the stipulation is shown to be exclusive and strictly binding.
Timely Objection to Improper Venue
- An objection to improper venue must be raised in a motion to dismiss or in the answer (if no motion to dismiss is filed) before a responsive pleading on the merits is made. If not timely raised, any objection based on improper venue is deemed waived.

VII. CONCLUSION

The venue of actions against non-residents under Philippine procedural law is governed principally by Rule 4 of the Rules of Court. The nature of the action (real or personal) and the physical whereabouts of the non-resident defendant are crucial in determining where to file. In real actions, venue is invariably tied to the location of the property. In personal actions, venue is typically where the plaintiff resides or where the defendant can be found. If the defendant is a non-resident not found in the Philippines, the action is usually filed where the plaintiff resides, coupled with extraterritorial service under Rule 14.

Comprehensive compliance with these venue and service requirements ensures that the Philippine court validly acquires jurisdiction and that the suit can proceed without being derailed by procedural infirmities. These foundational rules safeguard both the plaintiff’s right to file an action and the defendant’s right to due process, striking a balance between convenience and fairness in litigation against non-resident parties.