Name: Magbojos, Kristine V.

TOPIC: Common Carrier – Defenses and Limitation of Liability (1998)

PROBLEM: X took a plane from Manila bound for Davao via Cebu where there was a change of
planes. X arrived in Davao safely but to his dismay, his two suitcases were left behind in Cebu.
The airline company assured X that the suitcases would come in the next flight but they never
did. X claimed P2,000 for the loss of both suitcases, but the airline was willing to pay only P500
because the airline ticket stipulated that unless a higher value was declared, any claim for loss
cannot exceed P250 for each piece of luggage. X reasoned out that he did not sign the
stipulation and in fact had not even read it. X did not declare a greater value despite the fact that
the clerk had called his attention to the stipulation in the ticket. Decide the case (5%)

ANSWER:

Even if he did not sign the ticket, X is bound by the stipulation that any claim for loss cannot
exceed P250 for each luggage. In the case of Pan American World Airways, Inc. v. Rapadas, it
held that plane ticket is known as a contract of “adhesion” which is not entirely prohibited. The
one who adheres to the contract is in reality free to reject it entirely; if he adheres, he gives his
consent. A contract limiting liability upon an agreed valuation does not offend against the policy
of the law forbidding one from contracting against his own negligence. In the present case, X did
not declare a higher value, thus, he is entitled only to P500 for the two luggages lost as
stipulated.