Title
Spouses Guanio vs. Makati Shangri-La Hotel and Resort, Inc.
Case
G.R. No. 190601
Decision Date
Feb 7, 2011
A couple sued Makati Shangri-La Hotel for breach of contract after their wedding reception faced delays, menu issues, and unexpected charges. The Supreme Court ruled the hotel was not fully liable due to the couple's failure to inform about increased guests but awarded nominal damages for discomfort.

Case Digest (G.R. No. 190601)
Expanded Legal Reasoning Model

Facts:

  • Booking and Contract
  • Spouses Luigi M. Guanio and Anna Hernandez-Guanio booked the Shangri-La Hotel Makati for their July 28, 2001 wedding reception.
  • Initial food tasting was set for seven (the couple, their parents, coordinator) but only six were served. Petitioners chose a main course of black cod, king prawns (later replaced by salmon at P950/person), and angel hair pasta.
  • In the final tasting three days before the event, salmon portions were smaller and quoted at P1,200/person. Parties negotiated P1,150/person and executed the Banquet and Meeting Services Contract on July 27, 2001.
  • Reception and Complaint
  • Petitioners allege Catering Director Bea Marquez and Sales Manager Tessa Alvarez failed to attend; guests suffered delays; certain menu items unavailable; waiters were rude; despite a verbal promise, they were charged P8,000/hour for three hours of extension.
  • Petitioners brought wine and liquor under an open bar arrangement, but these were not served and guests paid out-of-pocket. A letter-complaint was sent; Executive Assistant Manager Krister Svensson replied with apologies.
  • Litigation
  • Petitioners filed a breach of contract suit in the RTC of Makati City.
  • RTC Branch 148 (Aug. 17, 2006) awarded P350,000 actual damages, P250,000 moral damages, P100,000 exemplary damages, and P100,000 attorney’s fees. The trial court relied on Svensson’s apology letter as admission of liability.
  • The Court of Appeals (July 27, 2009) reversed, attributing proximate cause of inconvenience to petitioners’ sudden guest increase; petitioners’ motion for reconsideration was denied Nov. 19, 2009.

Issues:

  • Procedural Issue
  • Whether the doctrine of proximate cause applies in an action for breach of contract.
  • Substantive Issues
  • Whether respondent breached its contractual obligations despite the exculpatory clause concerning changes in guaranteed guest numbers.
  • Whether the apology letter from hotel management constitutes an admission of liability.
  • Whether petitioners are entitled to damages, and if so, what quantum.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.