G.R. No.

L-21438 September 28, 1966

AIR FRANCE, petitioner, vs. RAFAEL CARRASCOSO and the HONORABLE COURT OF
APPEALS, respondents.

FACTS: Air France, through its authorized agent, Philippine Airlines, issued a first class round trip to
Carrascoso from Manila to Rome. From Manila to Bangkok, he travelled in first class but at Bangkok,
the Manager of Air France forced him to vacate his first class seat because there was a white man
who allegedly had a “better right to the seat.” Commotion ensued which resulted in the nervousness
of many Filipino passengers. When Carrascoso was pacified, he reluctantly gave up his first seat.

CFI-Manila sentenced Air France to pay Carrascoso moral and exemplary damages, the
difference in fare between the 1st and tourist class, various amounts with interest and attorney’s
fees. CA slightly reduced the amount of refund and affirmed the appealed decision. Hence, this
review on certiorari.

ISSUE: w/n Air France is liable for moral and exemplary damages for its acts against Carrascoso

RULING: YES.

SC is of the opinion that there was contract to furnish Carrascoso a first class passage and
the contract was breached when Air France failed to furnish first class transportation at Bangkok and
that there was bad faith when Air France’s employee compelled Carrasocos to leave his fist seat
accommodation beth “after he was already seated” and to take a seat in the tourist class because he
suffered inconvenience, embarrassments and humiliations, which caused him mental anguish,
serious anxiety, wounded feelings and social humiliation, resulting in moral damages. There is no
specific mention of the term bad faith in the complaint but the inference of bad faith was drawn from
the facts and circumstances set forth therein.

In this case, Air France manager not only prevented Carrascoso from enjoying his right to
the first class seat, worse, he imposed arbitrary will in forcibly ejecting him from his seat which
caused humiliation of having to go to the tourist class compartment just to give way to another
passenger whose right has not been established. Further, Carrascoso was threatened that in the
presence of other passengers to be thrown out of the airplane.This is bad faith. "Bad faith"
contemplates a "state of mind affirmatively operating with furtive design or with some motive of self-
interest or will or for ulterior purpose."

The SC held that the responsibility of an employer for the tortious act of its employees need
not be essayed. For the willful malevolent act Air France’s manager, Air France, his employer, must
answer. Article 21 of the Civil Code says: Any person who willfully causes loss or injury to another in
a manner that is contrary to morals, good customs or public policy shall compensate the latter for the
damage.

The contract of air carriage generates a relation attended with a public duty. Neglect or
malfeasance of the carrier's employees, naturally, could give ground for an action for damages.
Passengers have a right to be treated by the carrier's employees with kindness, respect, courtesy
and due consideration. They are entitled to be protected against personal misconduct, injurious
language, indignities and abuses from such employees. So it is that any rule or discourteous
conduct on the part of employees towards a passenger gives the latter an action for damages
against the carrier.

Exemplary damages are well awarded. It can be granted in contracts and quasi-contracts in
the condition that the defendant should have "acted in a wanton, fraudulent, reckless, oppressive, or
malevolent manner." The manner of ejectment of Carrascoso from his first class seat fits into this
legal precept - moral damages. Further the right to attorney’s fees is fully established.

Appealed decision is affirmed.