Title
Air France vs. Court of Appeals
Case
G.R. No. 76093
Decision Date
Mar 21, 1989
Passenger Morales, unable to reroute due to ticket restrictions, sued Air France for breach of contract after purchasing new tickets. Courts ruled no breach, refunding unused coupons, rejecting excessive damages.

Case Summary (G.R. No. 221370)

Factual Background

In October 1977, Narciso Morales purchased an airline ticket through Aspac Management Corporation, Air France's General Sales Agent located in Makati. The total cost of the ticket was P9,426.00, excluding an additional travel tax. The itinerary consisted of multiple legs with certain restrictions specifically stating “non-endorsable” and “valid on Air France only.” On November 3, 1977, while in New York, Morales experienced an ear infection that required medical attention, prompting him to seek a rerouting of his ticketed journey.

Communications and Airline Response

Despite Morales's medical condition, Air France representatives initially refused to validate Morales's request for a rerouting of his ticket to a shorter route. After an unsuccessful attempt for a reroute from Copenhagen, Morales eventually purchased new tickets for his return journey, incurring additional significant expenses.

Trial Court’s Decision

The complaint was filed against Air France for breach of contract and for damages. The trial court, presided over by Judge Marcelino Sayo, found in favor of Morales, awarding him actual, moral, and exemplary damages after determining that Air France acted in evident bad faith by failing to accommodate Morales’s request and exhibiting a threatening demeanor through its employees.

Court of Appeals Ruling

Air France appealed the trial court's decision to the Court of Appeals. The appellate court modified the damage award but upheld the trial court's finding of breach of contract. The adjusted award included specific amounts for actual damages, reduced moral damages, and a provision for attorney's fees.

Grounds for Supreme Court Review

Air France subsequently sought a review by the Supreme Court, arguing that the appellate court's conclusion of breach of contract rested on a misapprehension of the facts, failed to consider the doctrine of avoidable consequences, and resulted in an award of damages deemed exorbitant.

Supreme Court's Analysis

In its review, the Supreme Court emphasized that it is not a trier of facts but can reconsider cases where the lower court’s findings lack specific supporting evidence. The Court assessed the basis of the appellate court's determination that a breach of contract occurred and noted the stipulated restrictions on Morales's original ticket. The Court referenced the International Air Transport Association (IATA) regulations that govern ticket fare restrictions, affirming that Air France's refusal to allow rerouting was not unreasonable, especially given the evidence of ticket restr

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