Case Summary (G.R. No. 2935)
Petitioner
Estela L. Crisostomo, a lawyer and well-traveled individual who paid ₱74,322.70 (less discount) for the “Jewels of Europe” package and an additional sum toward a substitute “British Pageant” tour.
Respondent
Caravan Travel and Tours International, Inc., a travel agency acting as agent for airlines and tour operators in arranging ticketing, bookings, accommodations, and related services.
Key Dates
• May 1991 – Contract for “Jewels of Europe” concluded.
• June 12, 1991 – Travel documents and tickets delivered.
• June 14, 1991 – Actual departure date printed on ticket.
• June 15, 1991 – Petitioner’s missed flight.
• July 1991 – Commencement of “British Pageant” tour.
• August 25, 2003 – Supreme Court decision.
Applicable Law
1987 Philippine Constitution; Civil Code Articles on contracts (1173 on diligence) and classification of carriers (1732); Rules of Court Rule 131, Section 3(e) on presumptions.
Facts
Petitioner relied on her niece’s verbal advice and missed the flight, discovering too late that the ticket bore the correct departure date. She then paid part of a new tour package and, upon her return, demanded a refund of the balance from the first tour. Caravan refused, citing industry practice of non-refundability once funds are remitted to foreign principals.
Trial Court Decision
The Regional Trial Court found Caravan’s employee negligent under the presumption of suppressed evidence, but held petitioner contributorily negligent for failing to read her ticket. It ordered a refund of ₱53,989.43 (after 10% reduction), attorney’s fees, and dismissed Caravan’s counterclaim.
Court of Appeals Decision
The appellate court deemed petitioner more negligent, reversed the trial court, denied refund, deleted attorney’s fees award, and required petitioner to pay ₱12,901.00 balance for the substitute tour, with interest.
Issues on Review
- Whether Caravan, as a travel agency, is bound by the extraordinary diligence standard applicable to common carriers.
- Whether the “Jewels of Europe” tour cost was divisible and refundable.
- Whether petitioner was entitled to consequential damages for breach of contract of carriage.
Supreme Court’s Analysis
- Contract Nature – The agreement was for services, not carriage; Caravan is an agent, not a carrier, and owes the diligence of a “good father of a family,” not “utmost diligence.”
- Burden of Proof – Petitioner’s sole evidence of Meriam Menor’s negligence was uncorroborated testimony; no unfavorable presumption applied since Menor’s unavailability was not willful suppressio
Case Syllabus (G.R. No. 2935)
Facts
- In May 1991, petitioner engaged Caravan Travel Tours International, Inc. for a “Jewels of Europe” package covering England, Holland, Germany, Austria, Liechtenstein, Switzerland, and France at P74,322.70, with a 5% discount and waived booking fee.
- On June 12, 1991, petitioner’s niece and respondent’s ticketing manager, Meriam Menor, delivered plane tickets and travel documents; petitioner paid the full tour price.
- Menor advised petitioner to be at Ninoy Aquino International Airport on June 15 for a British Airways flight, but the ticket bore a June 14 departure date; petitioner missed the flight.
- Menor then arranged a substitute “British Pageant” tour (England, Scotland, Wales) at US$785 (P20,881); petitioner paid US$300 (P7,980) as partial payment and traveled in July 1991.
- Upon return, petitioner demanded reimbursement of P61,421.70 (difference between the first tour payment and balance owed under the second tour); respondent refused, citing non-refundability under industry practice and remittance to its Singapore principal.
Procedural History
- Petitioner sued for breach of contract of carriage and damages (RTC Makati, Civil Case No. 92-133).
- Trial Court (Branch 59) found respondent negligent (through Menor), but petitioner contributorily negligent; ordered refund of P53,989.43 (with 12% interest) and attorney’s fees, dismissed counterclaim.
- On appeal, the Court of Appeals held petitioner more negligent than respondent, denied any refund or damages, and ordered petitioner to pay P12,901.00 (balance on the British Pageant tour) with interest; attorney’s fees award was deleted.
- Petitioner f