G.R. No. 71929 - Alitalia vs. Intermediate Appellate Court

Dr. Felipa Pablo, an associate professor at the University of the Philippines and a research grantee of the Philippine Atomic Energy Agency, was invited to a UN meeting in Ispra, Italy, due to her expertise in food safety.
She was scheduled to present a paper on "The Fate of Radioactive Fusion Products Contaminating Vegetable Crops."
Dr. Pablo booked her flight with ALITALIA and arrived in Milan the day before the meeting, only to find that her luggage was delayed.

Dr. Pablo's luggage contained essential items, including clothing and scientific materials necessary for her presentation.
After being informed that her luggage was on a later flight from Rome, she traveled to Rome to locate it but was unsuccessful.
Unable to attend the meeting due to the absence of her luggage, Dr. Pablo returned to Manila, feeling distraught and frustrated.

Upon returning to Manila, Dr. Pablo demanded compensation from ALITALIA for the damages incurred due to the luggage delay.
ALITALIA offered her free airline tickets as compensation, which she rejected, leading her to file a lawsuit.
Her luggage was eventually located and sent to Ispra the day after her scheduled presentation, but it was not returned to her until eleven months later.

The Court of First Instance ruled in favor of Dr. Pablo, awarding her P20,000 in nominal damages, P5,000 in attorney's fees, and the costs of the suit.
ALITALIA appealed the decision to the Intermediate Appellate Court.

The Intermediate Appellate Court affirmed the lower court's ruling but increased the nominal damages to P40,000, citing the emotional distress and humiliation Dr. Pablo experienced.
The court justified the increase by considering the inflationary conditions and the significance of the missed opportunity for Dr. Pablo.

ALITALIA appealed to the Supreme Court, arguing that the Warsaw Convention should limit its liability and that there was no legal basis for the award of nominal damages and attorney's fees.
The airline contended that the Intermediate Appellate Court failed to address all assigned errors and did not provide sufficient legal reasoning for its decision.

The Warsaw Convention establishes liability for air carriers regarding passenger injuries, loss or damage to luggage, and delays in transportation.
It limits liability for registered baggage to 250 francs per kilogram unless a special declaration of interest is made.
The Convention does not apply if the damage is caused by the carrier's willful misconduct or equivalent negligence.

The Supreme Court noted that the Warsaw Convention does not serve as an exclusive limit on an airline's liability, especially in cases of willful misconduct or bad faith.
The Court emphasized that the Convention's provisions do not preclude recovery for breaches of contract or other forms of misconduct by airline employees.

The Court recognized that while Dr. Pablo's luggage was eventually returned without damage, the airline's failure to deliver it on time caused her s...continue reading