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Philippine Supreme Court Jurisprudence > Year 2016 > September 2016 Decisions > G.R. No. 213418,
September 21, 2016 - ALFREDO S.RAMOS, CONCHITA S. RAMOS, BENJAMIN B. RAMOS, NELSON T. RAMOS AND
ROBINSON T. RAMOS, Petitioners, v. CHINA SOUTHERN AIRLINES CO. LTD., Respondent.:
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G.R. No. 213418, September 21, 2016 - ALFREDO S.RAMOS, CONCHITA S. RAMOS, BENJAMIN B.
RAMOS, NELSON T. RAMOS AND ROBINSON T. RAMOS, Petitioners, v. CHINA SOUTHERN AIRLINES CO.
LTD., Respondent.
THIRD DIVISION
DECISION
PEREZ, J.:
For resolution of the Court is this Petition for Review on Certiorari1 filed by petitioners Alfredo S. Ramos,
Conchita S. Ramos, Benjamin B. Ramos, Nelson T. Ramos and Robinson T. Ramos, seeking to reverse and
set aside the Decision2 dated 19 March 2013 and Resolution3 dated 9 July 2014 of the Court of Appeals
(CA) in CA-G.R. CV. No. 94561. The assailed decision and resolution affirmed with modification the 23
March 2009 Decision4 of the Regional Trial Court (RTC) of Manila, Branch 36, which ordered respondent
China Southern Airlines to pay petitioners the amount of P692,000.00, representing the amount of
damages and attorney's fees. On appeal, the appellate court affirmed the award of actual damages but
deleted the order for payment of moral and exemplary damages in the amount of P600,000.00.5 chanrobleslaw
The Facts
DebtKollect Company, Inc. On 7 August 2003, petitioners purchased five China Southern Airlines roundtrip plane tickets from Active
Travel Agency for $985.00.6 It is provided in their itineraries that petitioners will be leaving Manila on 8
August 2003 at 0900H and will be leaving Xiamen on 12 August 2003 at 1920H.7 Nothing eventful
happened during petitioners' flight going to Xiamen as they were able to successfully board the plane
which carried them to Xiamen International Airport. On their way back to the Manila, however, petitioners
were prevented from taking their designated flight despite the fact that earlier that day an agent from
Active Tours informed them that their bookings for China Southern Airlines 1920H flight are confirmed.8
The refusal came after petitioners already checked in all their baggages and were given the
corresponding claim stubs and after they had paid the terminal fees. According to the airlines' agent with
whom they spoke at the airport, petitioners were merely chance passengers but they may be allowed to
join the flight if they are willing to pay an additional 500 Renminbi (RMB) per person. When petitioners
refused to defray the additional cost, their baggages were offloaded from the plane and China Southern
Airlines 1920H flight then left Xiamen International Airport without them.9 Because they have business
commitments waiting for them in Manila, petitioners were constrained to rent a car that took them to
Chuan Chio Station where they boarded the train to Hongkong.10 Upon reaching Hong Kong, petitioners
purchased new plane tickets from Philippine Airlines (PAL) that flew them back to Manila.11 chanrobleslaw
Upon arrival in Manila, petitioners went to Active Travel to inform them of their unfortunate fate with
China Southern Airlines. In their effort to avoid lawsuit, Active Travel offered to refund the price of the
plane tickets but petitioners refused to accept the offer. Petitioners then went to China Southern Airlines
ChanRobles Intellectual Property to demand for the reimbursement of their airfare and travel expenses in the amount of P87,375.00.
When the airline refused to accede to their demand, petitioners initiated an action for damages before
Division the RTC of Manila against China Southern Airlines and Active Travel. In their Complaint docketed as Civil
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Case No. 04-109574, petitioners sought for the payment of the amount of P87,375.00 as actual
damages, P500,000.00 as moral damages, P500,000.00 as exemplary damages and cost of the suit.12 chanrobleslaw
In their Answer,13 China Southern Airlines denied liability by alleging that petitioners were not confirmed
passengers of the airlines but were merely chance passengers. According to the airlines, it was
specifically provided in the issued tickets that petitioners are required to re-confirm all their bookings at
least 72 hours before their scheduled time of departures but they failed to do so which resulted in the
automatic cancellation of their bookings.
The RTC then proceeded with the reception of evidence after the pre-trial conference.
On 23 March 2009, the RTC rendered a Decision14 in favor of the petitioners and ordered Chkia Southern
Airlines to pay damages in the amount of P692,000.00, broken down as follows: ChanRoblesVirtualawlibrary
The defendants' counterclaim against plaintiffs are [hereby] dismissed for insufficiency of
evidence [enough] to sustain the damages claimed."15 chanroblesvirtuallawlibrary
On appeal, however, the CA modified the RTC Decision by deleting the award for moral and exemplary
damages. According to the appellate court, petitioners failed to prove that China Southern Airlines'
breach of contractual obligation was attended with bad faith.16 The disquisition of the CA reads: ChanRoblesVirtualawlibrary
"xxx. Where in breaching the contract, the defendant is not shown to have acted
fraudulently or in bad faith, liability for damages is limited to the natural and probable
consequences of the breach of the obligation and which the parties had foreseen or could
reasonably have foreseen; and in that case, such liability would not include liability for
moral and exemplary damages.
September-2016 Jurisprudence
In this case, We are not persuaded that [China Southern Airlines] breach of contractual
obligation had been attended by bad faith or malice or gross negligence amounting to bad
faith. On the contrary, it appears that despite [petitioner's] failure to "re-confirm" their
G.R. No. 211608, September 07, 2016 - PEOPLE OF
bookings, [China Southern Airlines] exerted diligent efforts to comply with its obligation to
THE PHILIPPINES, Plaintiff-Appellee, v. MENARDO
BOMBASI Y VERGARA, Accused-Appellant. [petitioners]. If at the outset, [China Southern Airlines] simply did not intend to comply
with its promise to transport [petitioners] back to Manila, it would not have taken the
G.R. No. 195975, September 05, 2016 - TAINA trouble of proposing that the latter could still board the plane as "chance passengers"
MANIGQUE-STONE, Petitioner, v. CATTLEYA LAND, provided [that] they will pay the necessary pay and penalties.
INC., AND SPOUSES TROADIO B. TECSON AND
ASUNCION ORTALIZ-TECSON, Respondents. Thus, We believe and so hold that the damages recoverable by [petitioners] are limited to
the peso value of the PAL ticket they had purchased for their return flight from Xiamen,
G.R. No. 212171, September 07, 2016 - PEOPLE OF plus attorney's fees, in the amount of [P]30,000.00, considering that [petitioners] were
THE PHILIPPINES, Plaintiff-Appellee, v. MERCURY ultimately compelled to litigate their claim[s] against [China Southern Airlines]."17
DELA CRUZ ALIAS "DEDAY," Accused-Appellant.
chanroblesvirtuallawlibrary
Since China Southern, Airlines' refusal to let petitioners board the plane was not attended by bad faith,
A.C. No. 10565, September 07, 2016 -
the appellate court decided not to award petitioners moral and exemplary damages. The CA disposed in
PROSECUTOR RHODNA A. BACATAN, Complainant, v.
ATTY. MERARI D. DADULA, Respondent. this wise: ChanRoblesVirtualawlibrary
A.C. No. 7045, September 05, 2016 - THE LAW "WHEREFORE, premises considered, the instant appeal is hereby AFFIRMED with
FIRM OF CHAVEZ MIRANDA ASEOCHE REPRESENTED MODIFICATION in that the award of moral and exemplary damages are hereby
BY ITS FOUNDING PARTNER, ATTY. FRANCISCO I. DELETED."18 chanroblesvirtuallawlibrary
G.R. No. 210798, September 14, 2016 - PEOPLE OF A contract of carriage, in this case, air transport, is intended to serve the traveling public and thus,
THE PHILIPPINES, Plaintiff-Appellee, v. BEVERLY imbued with public interest.22 The law governing common carriers consequently imposes an exacting
VILLANUEVA Y MANALILI @ BEBANG, Accused- standard of conduct,23viz:
Appellant.
ChanRoblesVirtualawlibrary
"1755 of the New Civil Code. A common carrier is bound to carry passengers safely as far
as human care and foresight can provide, using the utmost diligence of very cautious
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G.R.No. 186199, September 07, 2016 - EDGARDO A. persons, with due regard for all the circumstances."
QUILO AND ADNALOY VILLAHERMOSA, Petitioners, v.
TEODULA BAJAO, Respondent. When an airline issues a ticket to a passenger confirmed on a particular flight, on a certain date, a
contract of carriage arises, and the passenger has every right to expect that he would fly on that flight
G.R. No. 187942, September 07, 2016 - THE ROMAN and on that date. If that does not happen, then the carrier opens itself to a suit for breach of contract of
CATHOLIC BISHOP OF TUGUEGARAO, Petitioner, v.
carriage.24 In an action based on a breach of contract of carriage, the aggrieved party does not have to
FLORENTINA PRUDENCIO, NOW DECEASED,
SUBSTITUTED BY HER HEIRS, NAMELY: EXEQUIEL, prove that the common carrier was at fault or was negligent.25 All he has to prove is the existence of
cralawred
LORENZO, PRIMITIVO, MARCELINO, JULIANA, the contract and the fact of its non-performance by the carrier, through the latter's failure to carry the
ALFREDO AND ROSARIO, ALL SURNAMED DOMINGO; passenger to its destination.26 chanrobleslaw
G.R. No. 206629, September 14, 2016 - NARCISO T. The prologue shapes the body of the petitioners' rights, that is, that they are entitled to damages, actual,
MATIS, Petitioner, v. MANILA ELECTRIC COMPANY, moral and exemplary.
Respondent.
There is no doubt that petitioners are entitled to actual or compensatory damages. Both the RTC and the
G.R. No. 210940, September 06, 2016 - SOCIAL CA uniformly held that there was a breach of contract committed by China Southern Airlines when it
SECURITY SYSTEM, Petitioner, v. COMMISSION ON failed to deliver petitioners to their intended destination, a factual finding that we do not intend to depart
AUDIT, Respondent. from in the absence of showing that it is unsupported by evidence. As the aggrieved parties, petitioners
had satisfactorily proven the existence of the contract and the fact of its non-performance by China
G.R. No. 201320, September 14, 2016 - WILSON T. Southern Airlines; the concurrence of these elements called for the imposition of actual or compensatory
LIM, Petitioner, v. OFFICE OF THE DEPUTY
damages.
OMBUDSMAN FOR THE MILITARY AND OTHER LAW
ENFORCEMENT OFFICES (MOLEO) AND P/S INSP.
EUSTIQUIO FUENTES, Respondents. With respect to moral damages, the following provision of the New Civil Code is instructive: ChanRoblesVirtualawlibrary
G.R. No. 219815, September 14, 2016 - J.O.S. Article 2220. Willful injury to property may be a legal ground for awarding moral damages
MANAGING BUILDERS, INC. AND EDUARDO B. if the court should find that, under the circumstances, such damages are justly due. The
OLAGUER, Petitioners, v. UNITED OVERSEAS BANK same rule applies to breaches of contract where the defendant acted fraudulently or in bad
PHILIPPINES (FORMERLY KNOWN AS WESTMONT faith.
BANK), EMMANUEL T. MANGOSING AND DAVID GOH
CHAI ENG, Respondents. Bad faith does not simply connote bad judgment or negligence. It imports dishonest purpose or some
moral obliquity and conscious doing of a wrong. It means breach of a known duty through some motive,
G.R. No. 220732, September 06, 2016 - ELMER G. interest or ill will that partakes the nature of fraud. Bad faith is in essence a question of intention.28 chanrobleslaw
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MARITES J. RAMOS, DR. MELINDA S.L. A. RAZALAN, (b) P300,000.00 as moral damages; and
BAITONGGAL L. SAUDAGAL, DR. JOHN ALBERT V.
TABLIZO, JULIETA T. TERANIA, ANNIE B. TRINIDAD,
JUDY T. AVNER, DR. ROMEO F. UY, AVELONA A. VEA,
MINVILUZ G. VERA CRUZ, PEÑAFLOR M. VILLAFLOR, (c) P300,000.00 as exemplary damages.
JR., AND DR. LEOPOLDO P. SISON, JR., ALL OF
TAGUIG-PATEROS DISTRICT HOSPITAL, Petitioners,
SO ORDERED.
v. HONORABLE SECRETARY EDUARDO ERMITA, IN HIS
chanRoblesvirtualLawlibrary
A.C. No. 11095 [Formerly CBD Case No. 11-3140], 4 Id. at 135-151.
September 20, 2016 - EUFEMIA A. CAMINO,
Complainant, v. ATTY. RYAN REY L. PASAGUI, 5 Id. at 37.
Respondent.
6 Id. at 49.
G.R. No. 188952, September 21, 2016 -
PEÑAFRANCIA SHIPPING CORPORATION AND SANTA
CLARA SHIPPING CORPORATION, Petitioners, v. 168 7 Id. at 62-64.
SHIPPING LINES, INC., Respondent.
8 Id. at 137-140.
A.C. No. 11238, September 21, 2016 - ATTY.
MYLENE S. YUMUL-ESPINA, Complainant, v. ATTY. 9
BENEDICTO D. TABAQUERO, Respondent. Id.
G.R. No. 222740, September 28, 2016 - ST. LUKE'S 19 Id. at 39-42.
COLLEGE OF MEDICINE-WILLIAM H. QUASHA
MEMORIAL FOUNDATION, DR. BRIGIDO L. 20 Id. at 42.
CARANDANG, AND DR. ALEJANDRO P. ORTIGAS
Petitioners, v. SPOUSES MANUEL AND ESMERALDA 21
PEREZ AND SPOUSES ERIC AND JURISITA QUINTOS, Id. at 20.
Respondents.
22Northwest Airlines v. Chiong, 567 Phil. 289, 304 (2008).
G.R. No. 211680, September 21, 2016 - PEOPLE OF
THE PHILIPPINES, Appellee, v. BELBAN SIC-OPEN Y 23 Id.
DIMAS, Appellant.
24Alitalia Airways v. Court of Appeals, 265 Phil. 791, 798 (1990).
G.R. No. 193837, September 21, 2016 - PEOPLE OF
THE PHILIPPINES, Plaintiff-Appellee, v. RENATO M.
PANGAN, Accused-Appellant. 25 cralawred Sps. Viloria v. Continental Airlines, Inc., 679 Phil. 61, 84-85 (2012).
G.R. No. 224804, September 21, 2016 - EFREN R. 26Japan Airlines v. Simangan, 575 Phil. 359, 375 (2008).
LEYNES, Petitioner, v. PEOPLE OF THE PHILIPPINES,
Respondent. 27Cathay Pacific Airways v. Reyes, G.R. No. 185891, June 26, 2013, 699 SCRA 725.
G.R. No. 215072, September 07, 2016 -
PHILIPPINE NATIONAL BANK, Petitioner, v. HEIRS OF 28 Supra note 22 at 305.
THE LATE IRENEO AND CARIDAD ENTAPA, NAMELY:
ROSARIO ENTAPA-ORPEZA, JULIANNE E. HAMM,1 29 Supra note 26 at 376.
CERINA G. ENTAPA, WINSTON G. ENTAPA
(DECEASED) REPRESENTED BY HIS SPOUSE, NINFA 30PAL
LAMISTOZA-ENTAPA, FRANKLIN G. ENTAPA, MARINA v. Court of Appeals, 587 Phil. 568, 583 (2008).
E. SCHACHT, AND ELVIRA G. ENTAPA, Respondents.
31 Supra note 26 at 377.
G.R. No. 201354, September 21, 2016 - PABLO M.
PADILLA, JR. AND MARIA LUISA P. PADILLA, 32 Supra note 30.
Petitioners, v. LEOPOLDO MALICSI, LITO CASINO,
AND AGRIFINO GUANES, Respondents. 33 G.R. No. 189871, August 13, 2013, 703 SCRA 439.
G.R. No. 183947, September 21, 2016 - RIZAL
COMMERCIAL BANKING CORPORATION, Petitioner, v.
TEODORO G. BERNARDINO, Respondent.
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G.R. No. 208979, September 21, 2016 - 1933 1934 1935 1936 1937 1938 1939 1940
GOVERNMENT SERVICE INSURANCE SYSTEM,
Petitioner, v. ROGELIO F. MANALO, Respondent.
1941 1942 1943 1944 1945 1946 1947 1948
1949 1950 1951 1952 1953 1954 1955 1956
A.C. No. 11099, September 27, 2016 - LILY
FLORES-SALADO, MINDA FLORES LURA, AND FE V. 1957 1958 1959 1960 1961 1962 1963 1964
FLORES, Complainants, v. ATTY. ROMAN A. 1965 1966 1967 1968 1969 1970 1971 1972
VILLANUEVA, JR. Respondent.
1973 1974 1975 1976 1977 1978 1979 1980
A.C. No. 7348, September 27, 2016 - ROUEL YAP 1981 1982 1983 1984 1985 1986 1987 1988
PARAS, Complainant, v. ATTY. JUSTO P. PARAS,
Respondent.
1989 1990 1991 1992 1993 1994 1995 1996
1997 1998 1999 2000 2001 2002 2003 2004
G.R. No. 208067, September 14, 2016 - PEOPLE OF
THE PHILIPPINES, Appellee, v. RONNIE R. LIBRIAS,
2005 2006 2007 2008 2009 2010 2011 2012
Appellant. 2013 2014 2015 2016 2017 2018
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PERSONS CLAIMING RIGHTS UNDER THEM,
Petitioners, v. EASTERN PETROLEUM CORPORATION
AND J&M PROPERTIES AND CONSTRUCTION
CORPORATION, Respondents.
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