Tuesday, July 27, 2010

Korean Airlines v. CA

Facts:


Juanito Lapuz was contracted for employment in Saudi Arabia through Pan Pacific Recruiting Services, Inc. He was supposed to leave via Korean Airlines, but was initially listed as a “chance passenger”. According to Lapuz, he was allowed to check in and was cleared for departure. When he was on the stairs going to the airplane, a KAL officer pointed at him and shouted, “Down! Down!” and he was barred from taking the flight. When he asked for another booking, his ticket was cancelled. He was unable to report for work and so he lost his employment. KAL alleged that the agent of Pan Pacific was informed that there are 2 seats possibly available. He gave priority to Perico, while the other seat was won by Lapuz through lottery. But because only 1 seat became available, it was given to Perico. The trial court adjudged KAL liable for damages. The decision was affirmed by the Court of Appeals, with modification on the damages awarded.


Issues:


(1) Whether there is already a contract of carriage between KAL and Lapuz to hold KAL liable for breach of contract


(2) Whether moral and exemplary damages should be awarded, and to what extent


Held:


(1) The status of Lapuz as standby passenger was changed to that of a confirmed passenger when his name was entered in the passenger manifest of KAL for its Flight No. KE 903. His clearance through immigration and customs clearly shows that he had indeed been confirmed as a passenger of KAL in that flight. KAL thus committed a breach of the contract of carriage between them when it failed to bring Lapuz to his destination. A contract to transport passengers is different in kind and degree from any other contractual relation. The business of the carrier is mainly with the traveling public. It invites people to avail themselves of the comforts and advantages it offers. The contract of air carriage generates a relation attended with a public duty. Passengers have the 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 discourteous conduct on the part of these employees toward a passenger gives the latter an action for damages against the carrier. The breach of contract was aggravated in this case when, instead of courteously informing Lapuz of his being a "wait-listed" passenger, a KAL officer rudely shouted "Down! Down!" while pointing at him, thus causing him embarrassment and public humiliation. The evidence presented by Lapuz shows that he had indeed checked in at the departure counter, passed through customs and immigration, boarded the shuttle bus and proceeded to the ramp of KAL's aircraft. In fact, his baggage had already been loaded in KAL's aircraft, to be flown with him to Jeddah. The contract of carriage between him and KAL had already been perfected when he was summarily and insolently prevented from boarding the aircraft.


(2) The Court of Appeals granted moral and exemplary damages because:


a. The findings of the court a quo that the defendant-appellant has committed breach of contract of carriage in bad faith and in wanton, disregard of plaintiff-appellant's rights as passenger laid the basis and justification of an award for moral damages.

b. In the instant case, we find that defendant-appellant Korean Air Lines acted in a wanton, fraudulent, reckless, oppressive or malevolent manner when it "bumped off" plaintiff-appellant on November 8, 1980, and in addition treated him rudely and arrogantly as a "patay gutom na contract worker fighting Korean Air Lines," which clearly shows malice and bad faith, thus entitling plaintiff-appellant to moral damages.

c. Considering that the plaintiff-appellant's entitlement to moral damages has been fully established by oral and documentary evidence, exemplary damages may be awarded. In fact, exemplary damages may be awarded, even though not so expressly pleaded in the complaint. By the same token, to provide an example for the public good, an award of exemplary damages is also proper.


A review of the record of this case shows that the injury suffered by Lapuz is not so serious or extensive as to warrant an award of P1.5 million. The assessment of P100,000 as moral and exemplary damages in his favor is, in our view, reasonable and realistic.

2 comments:

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