Title
Cathay Pacific Airways, Ltd. vs. Court of Appeals
Case
G.R. No. 60501
Decision Date
Mar 5, 1993
Passenger sued airline for luggage delay, rude treatment; court awarded moral, exemplary damages, citing bad faith, Warsaw Convention non-exclusivity.

Case Summary (G.R. No. 6807)

Delay and Inconvenience

Upon his inquiry in Jakarta, he was informed by Cathay Pacific's representative that his luggage had not been transferred and was left behind in Hong Kong. The airline offered him a mere $20.00 for immediate personal needs, which proved inadequate given his circumstances. It took over twenty-four hours for his luggage to reach Jakarta, and he was required to collect it personally from the Philippine Embassy rather than having it delivered directly to his hotel.

Initial Legal Proceedings

On 1 March 1976, Alcantara filed a complaint with the trial court seeking damages, including temperate, moral, and exemplary damages, as well as attorney’s fees. The trial court ruled in his favor on 18 April 1976, granting him various damages. Both parties subsequently appealed to the Court of Appeals, with Cathay disputing its liability and the awarded damages, while Alcantara sought greater compensation.

Court of Appeals Ruling

On 11 November 1981, the Court of Appeals upheld the trial court's factual findings but modified the extent of damages awarded to Alcantara, increasing the moral, exemplary, and temperate damages. The appellate court affirmed the trial court's acknowledgment of Cathay's liability for the distress caused due to the mishandling of Alcantara’s luggage.

Legal Issues

Cathay argued that the delays were not executed in bad faith and challenged the courts' determinations regarding the degree of its liability as per the stipulations of the Warsaw Convention. The airline insisted that moral and exemplary damages should not apply as there was no willful misconduct or fraud. However, both courts found evidence of gross negligence and improper treatment towards Alcantara by the airline's employees.

Breach of Contract of Carriage

The ruling emphasized that common carriers are legally obligated to transport passengers and luggage safely, without delays. The courts established that the failure to deliver Alcantara's luggage constituted a breach of the contract of carriage, which warranted the award of damages under specific conditions, including instances of gross negligence or bad faith by the carrier.

Evidence of Bad Faith

Testimonies presented during the trial indicated that Cathay’s employees acted indifferently toward Alcantara's situation, displaying rudeness rather than seeking to alleviate his distress. This gave credence to the courts' findings of bad faith, justifying the award of moral damages, which reflect the emotional and psychological impact on Alcantara due to the mishap.

Damages and Final Rulings

Ultimately, the courts upheld the award

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