GR 108253; (February, 1994) (Digest)
G.R. No. 108253 February 23, 1994
LYDIA L. GERALDEZ, petitioner, vs. HON. COURT OF APPEALS and KENSTAR TRAVEL CORPORATION, respondents.
FACTS
Petitioner Lydia L. Geraldez, upon seeing advertisements, contracted with private respondent Kenstar Travel Corporation for a “VOLARE 3” 22-day European tour for herself and her sister, paying P190,000.00. During the tour, several breaches occurred: there was no European tour manager as stated in the brochure; the assigned Filipino tour guide, Rowena Zapanta, was a first-timer and inexperienced; the group arrived too late at the UGC Leather Factory, a highlighted destination, and found it closed; and petitioner claimed the hotels were not first-class. Petitioner filed an action for damages in the Regional Trial Court (RTC), which awarded her moral, nominal, and exemplary damages plus attorney’s fees. On appeal, the Court of Appeals deleted the awards for moral and exemplary damages and reduced the nominal damages and attorney’s fees. Petitioner elevated the case to the Supreme Court.
ISSUE
Whether or not private respondent Kenstar Travel Corporation acted in bad faith or with gross negligence in discharging its obligations under the contract, thereby justifying awards for damages.
RULING
Yes. The Supreme Court found that private respondent committed fraudulent misrepresentations amounting to bad faith. The selection of an inexperienced, first-time tour guide was a deliberate choice to provide her on-the-job training at the expense of the tour group, constituting a manifest disregard of its specific assurances and a violation of the elementary rules of good faith and fair play. This resulted in agitation and anxiety for the tourists. The failure to ensure a timely visit to the highlighted leather factory further demonstrated neglect. The Supreme Court reinstated the RTC’s award of moral damages (P500,000.00) and exemplary damages (P300,000.00) as modified, finding them justified due to private respondent’s bad faith. It also reinstated the award for attorney’s fees (P50,000.00) but sustained the Court of Appeals’ reduction of nominal damages to P30,000.00. The decision of the Court of Appeals was modified accordingly.