Title
Cathay Pacific Airways vs. Reyes
Case
G.R. No. 185891
Decision Date
Jun 26, 2013
A family's return flight bookings were canceled due to airline and travel agency negligence, leading to a breach of contract and nominal damages awarded by the court.

Case Digest (G.R. No. 185891)
Expanded Legal Reasoning Model

Facts:

  • Booking and issuance of tickets
    • In March 1997, Wilfredo Reyes booked, through Sampaguita Travel Corp., round-trip Manila–Hong Kong–Adelaide tickets for himself, his wife Juanita, son Michael Roy, and mother-in-law Sixta Lapuz. Four PNRs/record locators were issued (J76TH, HDWC3, H9VZF, HTFMG) upon full payment.
    • The party departed Manila on 12 April 1997 and flew to Adelaide without incident.
  • Return flight reconfirmation and denied boarding
    • One week before return, Wilfredo reconfirmed the family’s return reservations in Adelaide; staff assured him the bookings were “still okay as scheduled.”
    • On 4 May 1997 at Adelaide, only Sixta’s booking remained confirmed; the other three passengers were told their reservations had been cancelled but were permitted to board to Hong Kong after Wilfredo’s pleas.
    • In Hong Kong, only Sixta could board to Manila; the others were denied boarding on the fully booked flight and had to wait overnight for the next day’s service.
  • Demand for damages and filing of complaint
    • Upon return to Manila, Wilfredo reported to Sampaguita Travel, which blamed Cathay Pacific for cancelling the bookings.
    • On 16 June 1997, respondents sent a demand letter to Cathay Pacific for P1,000,000 moral damages, P300,000 actual damages, P100,000 exemplary damages, and P100,000 attorney’s fees.
    • Failing resolution, respondents filed a Complaint for damages against Cathay Pacific and Sampaguita Travel.
  • Defendants’ answers and cross-claims
    • Cathay Pacific alleged multiple conflicting PNRs from Sampaguita Travel and another agency, showing no valid ticketing for three passengers, and filed a cross-claim against Sampaguita Travel.
    • Sampaguita Travel denied liability, asserted it properly secured confirmed bookings and issued tickets, and counter-claimed against Cathay Pacific.
  • Trial court proceedings and decision
    • Parties stipulated that respondents dealt only with the travel agent, held valid tickets for outbound flights, and that flight cancellation was within airline control.
    • The RTC found no breach by either defendant, noted booking confusion from multiple PNRs, and dismissed the complaint and all counter-/cross-claims for lack of merit.

Issues:

  • Whether Cathay Pacific is liable for nominal damages for an alleged initial breach of contract of carriage despite proving no fault.
  • Whether the Court of Appeals relied on matters not proved at trial in awarding nominal damages.
  • Whether Cathay Pacific erred in holding it liable for nominal damages to Sixta Lapuz.
  • Whether Sampaguita Travel should have been held liable to Cathay Pacific for any damages.
  • Whether the appellate court should have applied stare decisis in fixing the amount of nominal damages.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources.