Title
Air France Philippines/KLM Air France vs. De Camilis
Case
G.R. No. 188961
Decision Date
Oct 13, 2009
Passenger sued Air France for breach of contract after transit visa issues, poor service, and mistreatment by agents. Courts awarded damages, upheld by SC, citing bad faith and poor service.

Case Digest (G.R. No. 188961)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case
    • Respondent John Anthony de Camilis, a passenger on a pilgrimage with a group of Filipinos to Europe, brought a case for breach of contract of carriage, damages, and attorney’s fees against petitioner Air France Philippines/KLM Air France (AF).
    • The case was initially filed in the Regional Trial Court (RTC) of Makati City, Branch 59.
  • Allegations Against AF by the Respondent
    • AF’s agent in Paris allegedly failed to advise him of the need to secure a transit visa for Moscow. As a result:
      • Respondent was denied entry into Moscow.
      • He was subjected to humiliating police interrogation.
    • A specific AF agent, identified as Ms. Soeyesol, was accused of:
      • Rudely denying his request to contact his travel companions.
      • Reporting him as a security threat, which led to further police interrogation in Paris and Rome.
      • Lifting his flight coupons for the remainder of his trip.
    • Additional incidents included:
      • AF agents in Rome refusing to honor his confirmed flight to Paris.
      • In Paris, upon his connecting flight to Manila, he discovered his baggage had not been checked in, causing him to miss his connecting flight.
      • Failure to provide a complimentary motel pass as promised, resulting in an extended stay in Paris.
      • Being issued a computer print-out of his flight reservation for Manila, only to be informed at the airport that the flight was overbooked.
    • As a result of making a scene, he was finally boarded on an AF flight to Hongkong and subsequently placed on a Philippine Airlines connecting flight to Manila.
  • Decisions of Lower Courts
    • The RTC ruled in favor of the respondent, finding that AF breached its contract of carriage, and awarded:
      • P200,000 actual damages.
      • P1,000,000 moral damages.
      • P1,000,000 exemplary damages.
      • P300,000 in attorney’s fees.
    • The Court of Appeals (CA) affirmed the RTC’s decision with modifications:
      • While recognizing that the respondent, as a passenger, was responsible for securing the correct travel documents, the CA held that this did not absolve AF of its liability.
      • The CA agreed that AF’s agents repeatedly subjected the respondent to poor service, verbal abuse, and a lack of respect, thereby constituting an act of bad faith.
      • Award adjustments included:
        • Affirmation of P1,000,000 moral damages and P300,000 in attorney’s fees.
        • Reduction of the actual damages to US$906 (or the peso equivalent), representing the expenses incurred from missing part of the trip (from Rome until the flight reservation breach in Paris).
        • Reduction of exemplary damages from P1,000,000 to P300,000.
    • Interest on the awarded damages was determined as follows:
      • Interest at 6% per annum from the RTC judgment date (April 25, 2007) until the decision becomes final.
      • From finality, interest at 12% per annum until full satisfaction.
  • Procedural Posture
    • AF filed a petition for review on certiorari challenging key aspects of the CA award.
    • The petition argued:
      • That the alleged injuries were not clearly established.
      • That even if there was entitlement, the amounts for moral and exemplary damages and attorney’s fees were exorbitant.
      • That the interest should run from the time of the RTC decision rather than from the date of respondent’s extrajudicial demand.
    • The Supreme Court denied the petition, upholding the CA decision and its findings related to damages and the computation of interest.

Issues:

  • The Extent of AF’s Liability Despite the Respondent’s Duty to Secure Proper Travel Documents
    • Whether the fact that the respondent was responsible for securing a transit visa for Moscow absolved AF of liability for the subsequent poor handling.
    • The extent to which AF’s agents’ conduct, including poor service and abusive behavior, breached the contract of carriage.
  • Determination and Quantum of Damages
    • Whether the respondent was entitled to actual, moral, exemplary damages, and attorney’s fees given his alleged mistreatment by AF’s agents.
    • The reasonableness of the specific damage amounts awarded by the lower courts.
  • Computation of Legal Interest
    • Whether the interest on damages should be calculated from the date of the respondent’s extrajudicial demand or from the date the RTC rendered its judgment.
    • The appropriateness of applying different interest rates (6% p.a. prior to finality and 12% p.a. thereafter).
  • Adequacy of the Evidentiary Basis for Awarding Damages
    • Whether the factual findings of the RTC and the CA, which established AF’s bad faith and poor service, were sufficient to sustain the award of damages and attorney’s fees.
    • Whether the petition for review improperly sought to reexamine factual determinations that were properly decided by the lower courts.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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