Title
Philippine Airlines Inc. vs. Court of Appeals
Case
G.R. No. 127473
Decision Date
Dec 8, 2003
Passengers with confirmed tickets denied boarding due to overbooking; PAL found liable for breach of contract, bad faith, and awarded reduced damages.

Case Digest (G.R. No. 127473)

Facts:

  • Purchase and Purpose
  • Judy Amor purchased three confirmed tickets for Flight PR 178 on May 8, 1988 (herself, infant Gian Carlo Amor, sister Jane Gamil) from PAL’s Legaspi City office.
  • She intended to transfer a fourth ticket (for Dra. Emily Chua) to nephew Carlo Benitez.
  • The purpose was to attend the Philippine Dental Association National Convention in Manila (May 8–14, 1988).
  • Check-in Attempt for PR 178
  • Judy, Gian Carlo, Jane Gamil and Carlo Benitez arrived at Legaspi Airport at 6:20 a.m. for the 7:10 a.m. flight.
  • Judy requested permission to transfer Chua’s ticket to Carlo; Atty. Owen Amor assisted.
  • Lloyd Fojas, the check-in clerk, marked the tickets “late check-in 7:05” when Gonzales tendered them at 7:05 a.m.
  • Respondents were refused boarding; PR 178 departed at 7:30 a.m.
  • Subsequent Flight Attempts
  • Respondents sought bus transport to Manila; found none and returned to the airport.
  • PR 278 (2:30 p.m.) was canceled due to “aircraft situation.”
  • On PR 180 (5:30 p.m.) they checked in but were denied boarding as chance/waitlisted passengers; boarding passes and baggage tags were removed.
  • Evidence on Overbooking and Bumping
  • Manuel Baltazar (former Acting Manager) testified confirmed passengers were bumped for non-revenue and waitlisted passengers; manifest showed overbooking beyond 10 %.
  • PAL’s witness Fojas claimed respondents were late and that all confirmed passengers had checked in on PR 180.
  • Lower Court Proceedings and Awards
  • RTC (Branch 53, Sorsogon) found respondents checked in on time, overbooking occurred, and PAL acted in bad faith.
  • Judgment ordered reimbursement of ticket fares, P250,000 moral damages each for Judy and Jane, P200,000 exemplary damages, P100,000 actual damages, attorney’s fees and costs.
  • CA affirmed in toto; PAL filed petition under Rule 45.

Issues:

  • Whether respondents were late check-in passengers and if PAL’s failure to accommodate is actionable.
  • Whether the amounts of actual, moral, and exemplary damages awarded are excessive, unconscionable, or unreasonable.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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