Tuesday, January 16, 2024

Case Digest: Air France vs. Gillego, G.R. No. 165266

 

Air France vs. Gillego, 638 SCRA 472, G.R. No. 165266, December 15, 2010

Subject: Transportation Law


FACTS

On May 16, 1993, respondent Bonifacio H. Gillego left Manila on board petitioner Air France’s aircraft bound for Paris, France. While waiting at the De’ Gaulle International Airport for his connecting flight to Budapest, respondent learned that petitioner had another aircraft bound for Budapest with an earlier departure time than his scheduled flight. He then went to petitioner’s counter at the airport and made arrangements for the change in his booking. He was given a corresponding ticket and boarding pass and also a new baggage claim stub for his checked-in luggage.

However, upon arriving in Budapest, the respondent was unable to locate his luggage and the petitioner airliner never delivered the lost luggage despite follow-up inquiries by the respondent. Upon his return to the Philippines, respondent’s lawyer immediately wrote petitioner’s Station Manager complaining about the lost luggage and the resulting damages he suffered while in Budapest.

The respondent filed a complaint for damages against the petitioner alleging that by reason of its negligence and breach of obligation to transport and deliver his luggage. As special and affirmative defense, petitioner contended that its liability for lost checked-in baggage is governed by the Warsaw Convention for the Unification of Certain Rules Relating to International Carriage.

The trial court rendered its decision in favor of respondent and against the petitioner. Petitioner appealed to the CA, which affirmed the trial court’s decision.

ISSUE

Whether or not the award of moral and exemplary damages to the respondent is justifiable.

RULING

Yes, the award of moral and exemplary damages to the respondent is justifiable.

Under the law, in awarding moral damages for breach of contract of carriage, the breach must be wanton and deliberately injurious or the one responsible acted fraudulently or with malice or bad faith. Not every case of mental anguish, fright or serious anxiety calls for the award of moral damages. Bad faith should be established by clear and convincing evidence. The settled rule is that the law always presumes good faith such that any person who seeks to be awarded damages due to the acts of another has the burden of proving that the latter acted in bad faith or with ill motive.

In this case, while respondent failed to cite any act of discourtesy, discrimination or rudeness by petitioner’s employees, SC held that this did not make his loss and moral suffering insignificant and less deserving of compensation. In repeatedly ignoring respondent’s inquiries, petitioner’s employees exhibited an indifferent attitude without due regard for the inconvenience and anxiety the respondent experienced after realizing that his luggage was missing. Petitioner was thus guilty of bad faith in breaching its contract of carriage with the respondent, which entitles the latter to the award of moral damages.

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