G.R. No. 212038 - Spouses Ferdo vs. Northwest Airlines, Inc.

Petitioners Spouses Jesus and Elizabeth Fernando are Elite Platinum frequent flyers of Northwest Airlines, Inc., owners of JB Music, JB Sports, Hotel Elizabeth (Baguio & Cebu), and Fersal Hotels & Apartelles.
Respondent Northwest Airlines, Inc. is a common carrier operating passenger flights, offering services to the public under a contract of carriage.

Jesus Fernando presented a return ticket dated August 2001; agent Linda Puntawongdaycha refused to verify its validity via computer, declared it “used,” leading INS to detain and interrogate him for over two hours and grant only a 12-day stay.
Elizabeth Fernando later confirmed at another ticket counter that the ticket remained unused and valid; a new ticket was issued to avoid further problems.

The Fernandos checked in for NW Flights 001 (LA–Narita) and 029 (Narita–Manila) with valid electronic tickets and boarding passes. At the gate, supervisor Linda Tang demanded paper ticket coupons and refused to verify electronic tickets via computer.
After rushing to the ticket counter, they obtained printed coupons from agent Jeanne Meyer but missed the flight; they departed on January 30, 2002 instead, incurring additional expenses and inconvenience.

Whether Northwest breached its contract of carriage and acted in a wanton, malicious, or reckless manner amounting to bad faith.
Whether the conduct of its agents entitles the Fernandos to moral and exemplary damages.

Whether the Fernandos are entitled to moral damages beyond the RTC award and to exemplary damages.
Whether they are entitled to attorney’s fees in an amount higher than awarded by the RTC.

Whether Northwest is entitled to recover on its compulsory counterclaim for P500,000 and attorney’s fees.