Northwest Airlines, Inc. vs.

Cuenca | Concepcion (1965)

FACTS

Respondent Nicolas L. Cuenca (Cuenca) was the Commissioner of Public Highways; he

was the official delegate of the Philippines to a conference in Tokyo and, thus, he
purchased a first class ticket from petitioner Northwest Airlines, Inc. (Northwest).
o His ticket was marked W/L meaning he was waitlisted but his attention was never called
thereto and he wasnt advised what it meant.

Cuenca was given first class accommodation upon boarding the plane in Manila but,
upon arrival at Okinawa, he was transferred to the tourist class.
o Although he revealed that he was traveling in his official capacity, an agent of Northwest
rudely compelled him in the presence of other passengers to move, over his objection, to the
tourist class, under threat of otherwise leaving him in Japan.

Cuenca brought suit in the CFI in Manila which held Northwest liable for damages; this was
affirmed by the CA.
ISSUES/HELD

Does Cuenca have a cause of action against Northwest? YES.

Is the award of nominal damages proper? YES.

RATIONALE
1ST ISSUE

The instances specified in Arts. 17-19 of the Warsaw Convention merely declare the carrier liable
for damages in the enumerated cases, if the conditions therein specified are present.
Neither said provisions nor others in the aforementioned Convention regulate or
exclude liability for other breaches of contract by the carrier.
Otherwise, an air carrier would be exempt from any liability for damages in the event of its
absolute refusal, in bad faith, to comply with a contract of carriage.
Thus, Cuenca has a cause of action for breach of contract against Northwest.
2ND ISSUE
The award of nominal damages is proper considering that the CA has adjudicated no
compensatory, moral, and exemplary damages to Cuenca.
Also, it is proper considering the following circumstances:
o Cuenca was never advised that he was merely waitlisted;
o After having been given first class accommodation in Manila, Cuenca was entitled to believe
that his first class reservation was confirmed and would continue until his ultimate destination,
Tokyo;
o Notwithstanding this, Northwest rudely breached the contract, even with full knowledge of the
fact that Cuenca was an official representative of the Philippines;
o Northwest never explained that the person to whom Cuencas first class seat was given had a
better right thereto.

At any rate, considering the Northwests agent had acted in a wanton, reckless, and
oppressive manner, said award may also be considered as one for exemplary damages.