PAL vs. Miano

Philippine Airlines vs. Florante Miano
G.R. No. 106664 March 8, 1995.
Petition to review the decision of the RTC Makati
Puno, J.:
Facts: On August 31, 1988, private respondent took petitioner's flight bound for Germany. He had an immediate onward connecting flight via Lufthansa flight to Vienna, Austria. At the NAIA, he checked-in one brown suitcase but did not declare a higher valuation. He claimed that his suitcase contained money, documents, one Nikkon camera with zoom lens, etc. Upon private respondent's arrival at Vienna, his checked-in baggage was missing. He reported the matter to the authorities and after three (3) hours of waiting, he proceeded to Piestany, Czechoslovakia. Eleven (11) days after, his suitcase was delivered to him in Piestany. Private respondent instituted an action for damages before the RTC Makati which rendered a decision awarding private respondent moral and exemplary damages and atty’s fees.

Issue: WON the RTC erred in awarding moral and exemplary damages to private respondent.

Ruling: Assailed Decision MODIFIED deleting the award of moral and exemplary damages and attorney's fees.
In breach of contract of carriage by air, moral damages are awarded only if the defendant acted fraudulently or in bad faith. The trial court erred in awarding moral damages to private respondent. The established facts evince that petitioner's late delivery of the baggage for eleven (11) days was not motivated by ill will or bad faith. The SC neither sustained the award of exemplary damages. The prerequisite for the award of exemplary damages in cases of contract or quasi-contract is that the defendant acted in wanton, fraudulent, reckless, oppressive, or malevolent manner. The undisputed facts do not so warrant the characterization of the action of petitioner.
The award of attorney's fees must also be disallowed for lack of legal leg to stand on. Needless to say, award of attorney’s fees must be deleted where the award of moral and exemplary damages are eliminated.
*DAN’Q