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JAPAN AIRLINES vs. SIMANGAN GR No. 170141 April 22, 2008 Third Division Reyes FACTS: Respondent needed to go to the US to donate his kidney to his ailing cousin. Having obtained an emergency US Visa, respondent purchased a round trip ticket from petitioner JAL. He was scheduled to a flight bound for LA via Japan. On the date of his flight, respondent passed through rigid immigration and security routines before being allowed to board a JAL plane. While inside the plane, respondent was asked to show his travel documents. After which he was ordered by the crew to leave the plane, imputing that respondent is carrying falsified travel documents. Respondent pleaded but was ignored and under constraint he gets off the plane. The plane took off and respondent was left behind. Respondent was refunded with the cost of his ticket minus 500 USD, when JAL found out eventually that his travel documents were not falsified and in order. Respondent filed an action for damages against JAL. RTC RULING: JAL is liable for beach of contract of carriage, and should pay 1M as MD, 500K as ED, 250K as AF + cost of suit. JAL appealed contending it is not guilty of breach of contract of carriage and not liable for damages. CA RULING: Affirmed RTC decision with modification as to amount of damages for being scandalously excessive. 500K MD, 250K ED and NO AT. ISSUE: WON JAL is guilty of breach of contract of carriage. WON Simangan is entitled to moral and exemplary damages. HELD: JAL is guilty of breach of contract of carriage and is liable for damages. Petition of JAL was denied. CA decision was affirmed with modification. 500K ED, 100K ED, 200K AF. RATIO: Breach of contract of carriage In an action for breach of contract of carriage, all that is required of plaintiff is to prove the existence of such contract and its non-performance by the carrier through the failure to carry the passenger safely to his destination. Simangan complied with these requisites. Damage was accrued by JAL when Simangan was bumped off despite his protestations and valid travel documents and notwithstanding his contract of carriage with JAL. Award of moral damages in breach of contract of carriage. As a general rule, moral damages are not recoverable in actions for damages predicated on a breach of contract for it is not enumerated under Art 2219 NCC. As an exception, such damages are recoverable in: 1. Mishaps resulting to a death of a passenger (Art. 1764 NCC) 2. When carrier is guilty of fraud or bad faith (Art. 2220) JAL breached its contract of carriage with respondent in bad faith, when its crew ordered respondent to disembark while the latter is already settled in his assigned seat under the guise of verifying the genuineness of his travel documents. Inattention to and lack of care for the interest of its passengers who are entitled ot its utmost consideration, particularly as to their convenience, amount to bad faith which entitles the passenger to award of moral damages. Award of exemplary damages in breach of contract of carriage. Exemplary damages maybe recovered in contractual obligations as a way of example or correction for the public good.JAL is liable for exemplary damages as its acts constitute wanton, oppressive and malevolent acts against respondent. Passengers have the right to be treated by the carriers employees with kindness, respect, courtesy and due consideration and are entitled to be protected against personal misconduct, injurious language, indignities and abuses from such employees.
Facts: Atty. Renato Arroyo, a public attorney, bought a ticket Trans-Asia Shipping Lines Inc., a corporation engaged in inter-island shipping, for the voyage of M/V Asia Thailand vessel to Cagayan de Oro City from Cebu City on 12 November 1991. At around 5:30p.m of the said day, Arroyo boarded the M/V Asia Thailand vessel. At that instance, Arroyo noticed that some repair work were being undertaken on the engine of the vessel. The vessel departed at around 11:00 p.m. with only 1 engine running. After an hour of slow voyage, the vessel stopped near Kawit Island and dropped its anchor thereat. After half an hour of stillness, some passengers demanded that they should be allowed to return to Cebu City for they were no longer willing to continue their voyage to Cagayan de Oro City. The captain acceded [sic] to their request and thus the vessel headed back to Cebu City. At Cebu City, Arroyo, together with the other passengers who requested to be brought back to Cebu City, were allowed to disembark. Thereafter, the vessel proceeded to Cagayan de Oro City. Arroyo, the next day, boarded the M/V Asia Japan for its voyage to Cagayan de Oro City, likewise a vessel of Trans-Asia. On account of the failure of Trans-Asia to transport him to the place of destination on 12 November 1991, Arroyo filed before the trial court a complaint for damages against TransAsia. After due trial, the trial court rendered its decision and ruled that the action was only for breach of contract, with Articles 1170, 1172, and 1173 of the Civil Code as applicable law not Article 2180 of the same Code. The Court dismissed the complaint as it did not appear that Arroyo was left in the Port of Cebu because of the fault, negligence, malice or wanton attitude of Trans-Asias employees; and likewise dismissed Trans-Asias counterclaim is likewise dismissed it not appearing also that filing of the case by Arroyo was motivated by malice or bad faith. Unsatisfied, Arroyo appealed to the Court of Appeals (CA-GR CV 39901). In its decision of 23 November 1994, the Court of Appeals reversed the trial courts decision by applying Article 1755 in relation to Articles 2201, 2208, 2217, and 2232 of the Civil Code and, accordingly, awarded (1) P20,000.00 as moral damages; (2) P10,000.00 as exemplary damages; (3) P5,000.00 as attorneys fees; and (4) Cost of suit. Trans-Asia instituted the petition for review on certiorari. The Supreme Court denied the petition, and affirmed the challenged decision of the Court of Appeals, subject to the modification as to the award for attorneys fees which is set aside; with costs against Trans-Asia. 1. Laws applicable Undoubtedly, there was, between Trans-Asia and Arroyo, a contract of common carriage. The laws of primary application then are the provisions on common carriers under Section 4, Chapter 3, Title VIII, Book IV of the Civil Code, while for all other matters not regulated thereby, the Code of Commerce and special laws. 2. Article 1733 NCC, Extraordinary diligence; Article 1755, Utmost diligence of very cautious persons Under Article 1733 of the Civil Code, Trans-Asia was bound to observe extraordinary diligence in ensuring the safety of Arroyo. That meant that Trans-Asia was, pursuant to Article 1755 of