AIR FRANCE VS GILLEGO (2010)

G.R No. 165266, December 15, 2010

FACTS
Bonifacio Gillego was the Congressman of Sorsogon and Chairman of the House of Representatives Committee on Civil,
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Political, and Human Rights. He went to Budapest, Hungary and Tokyo for the 89 Inter-Parliamentary Conference Symposium
on Parliament Guardian of Human Rights to participate as a speaker. Gillego left Manila on board Air France’s aircraft bound
for Paris. While waiting for his connecting flight to Budapest, Gillego learned that Air France had another aircraft bound for
Budapest with an earlier departure time than his scheduled flight. He decided to make new arrangements for his booking. He was
given a new ticket, boarding pass and baggage claim stub for his checked in luggage.
Upon arriving at Budapest, respondent was unable to locate his luggage at the claiming section. He was advised to wait for his
luggage at the hotel upon ensuring Gillego that the same will be delivered to him that day. However, said luggage was never
delivered.
Later, Gillego filed a complaint for damages against Air France alleging that by reason of negligence and breach of obligation to
transport and deliver his luggage, respondent suffered inconvenience, serious anxiety, physical suffering and sleepless nights.
Air France filed its answer admitting that it issued tickets for the flight mentioned, the subsequent request to be transferred to another
flight, and the loss of the checked-in baggage, which had not been retrieved. Air France claimed that it has taken all the measures to
avoid the loss and that it has no intent to cause such loss. It also claimed that the loss was due to a fortuitous event beyond the
carrier’s control, and that it made diligent efforts to locate the luggage. It also claimed that the damages sought were unconscionable
Trial court ruled that Air France is indeed liable for damages in the amounts as follows: one million pesos as moral damages, five
hundred thousand pesos as exemplary damages and fifty thousand pesos as attorney’s fees. Trial court noted Air France’s gross
negligence and willful misconduct.
Court of Appeals affirmed the Trial Court’s decision. However, it noted that the lost baggage was returned to Gillego hence
respondent retracted the claim for actual damages. It took consideration of Air France’s unreasonable delay and its unapologetic
demeanor.

ISSUE

Whether or not Air France is liable for moral damages?

RULING
YES.

But given the circumstances, such amounts should be decreased. A business intended to serve the travelling public primarily, a contract
of carriage is imbued with public interest. Article 1735 of the Civil Code provides that in case of lost or damaged goods, common
carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as
required by Article 1733. All that the aggrieved party has to prove is the existence of the contract and the fact of its non-performance
by the carrier.
It is not disputed that the checked-in luggage was not found upon arrival at his destination and was not returned to him until about
two years later. Upon receipt of the said luggage, Gillego did not anymore press on his claim for actual damages and neither did he
adduce evidence of the actual amount of loss and damage incurred by such delayed delivery of his luggage. Consequently, the trial
court proceeded to determine only the propriety of his claim for moral and exemplary damages, and attorney’s fees.