Case Digest (G.R. No. 70462)
Facts:
Pan American World Airways, Inc. v. Intermediate Appellate Court, Rene V. Pangan, Sotang Bastos Productions and Archer Productions, G.R. No. 70462, August 11, 1988, Supreme Court Third Division, Cortes, J., writing for the Court.Petitioning carrier Pan American World Airways, Inc. sought relief from an adverse judgment awarding substantial actual damages to respondents Rene V. Pangan and his companies Sotang Bastos Productions and Archer Productions for loss of two checked pieces of baggage containing promotional materials, garments and personal items. The underlying facts as found by the trial court and adopted by the Intermediate Appellate Court are undisputed and recited below.
In April–May 1978 Pangan contracted to supply three motion pictures for exhibition in the United States and separately for two films to be shown in Guam; he agreed to provide promotional and advertising materials by specified exhibition dates. He had the promotional handbills and still pictures prepared and bought ancillary items (clutch bags, capiz lamps, barong tagalog) before travel. On May 18, 1978 Pangan purchased an economy-class ticket from Pan Am for travel from Manila to Guam on May 27, 1978; at check-in he checked two pieces of luggage and received baggage claim checks. Because his name was not on the economy manifest he paid an additional US$112 to fly first class. His baggage failed to arrive in Guam; as a result the exhibition contracts in Guam and San Francisco were cancelled. He filed claims with Pan Am; after unsatisfactory responses he sued.
The trial court (Court of First Instance) found Pan Am liable and awarded respondents P83,000.00 for actual damages (plus interest and attorney’s fees), an additional P8,123.34 to Pangan, dismissed Pan Am’s counterclaim and awarded costs. The Intermediate Appellate Court affirmed. Pan Am brought a petition to this Court assailing: (1) the award of damages beyond the limitation of liability printed on t...(Pro-only)
Issues:
- Is petitioner Pan Am’s liability for the lost checked baggage limited to the amount stated in the airline ticket and under the Warsaw Convention where no higher valuation was declared and no additional charge paid?
- May respondents recover alleged lost profits (special/consequential damages) for cancelled exhibition contracts when the carrier was not notified of the special circumstances that wo...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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