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CA
Facts:
Respondents, Bagadiong and Sto. Tomas filed a complaint for damages against the
petitioner, Philippine Airlines, for breach of contract when the latter failed to
accommodate the passengers-respondents on the flight scheduled due to alleged
contention of the plaintiff that there were fortuitous events during time. The plane
was loaded with passengers that it cannot accommodate all of its reserved
passengers despite the fact that they were already on the departure area and their
things were already checked-in on the baggage area. It was found out that the
airline had prioritized some government officials to be loaded on the plane.
Issue:
Whether or not PAL is entitled for moral and exemplary damages for breach of
contract
Ruling:
The Supreme Court affirmed the decision of the CA. It held that:
1) A contract to transport passengers is quite different in kind and degree from
any other contractual relation. And this, because of the relation which an aircarrier with the public. Its business is mainly with the travelling public. It
invites people to avail of the comforts and advantages it offers. The contract
of air carriage, therefore, generates a relation attended with a public duty.
Neglect or malfeasance of the carriers employees naturally could give ground
for an action for damages.
2) The operation of common carrier is a business affected with public interest
must be directed to serve the comfort and convenience of the passengers. In
case of breach in bad faith of a contract of carriage, award of damages is in
order. We have ruled that bad faith which would justify an award of moral
and exemplary damages for breach of contract of carriage means a breach of
a known duty through some motive of interest or ill will.
3) The contention of the petitioner is untenable for its failure to accommodate
respondents due to the unlawful acts of third persons and constitutes caso
fortuito. To constitute a caso fortuito that would exempt a person from
responsibility, it is essential that:
a) the event must be independent of the will of the obligor;
b) it must be either unforeseeable or inevitable;