G.R. No. 113578 July 14, 1995
Sulpicio Lines, Inc., Petitioner, vs. The Honorable Court of Appeals and Tito Duran Tabuquilde and Angelina de Paz Tabuquilde, Respondents.

FACTS

On October 23, 1988, Tito Tabuquilde and his three-year-old daughter Jennifer Anne boarded petitioner Sulpicio Lines’ M/V Dona Marilyn. Despite PAG-ASA raising Storm Signal No. 2 over Leyte by 5:30 PM that day, escalating to Signal No. 3 by 10:00 PM, the ship’s captain proceeded toward Tacloban instead of seeking shelter. The vessel capsized on October 24 due to Typhoon Unsang. Tito survived but was separated from his daughter, whose body was later recovered. Angelina, the child’s mother, experienced severe anxiety exacerbated by the carrier’s employees initially assuring her the ship was merely “hiding” and later refusing assistance to relatives. The private respondents filed a claim for damages.
The Regional Trial Court awarded damages, including indemnity for death, moral and exemplary damages, and attorney’s fees. The Court of Appeals affirmed this decision. Petitioner appealed to the Supreme Court, contesting the awards for actual damages for lost baggage, death indemnity, moral damages, and attorney’s fees.

ISSUE

The primary issues were whether the awards for (1) actual damages for lost baggage, (2) death indemnity, (3) moral damages, and (4) attorney’s fees were proper given the proven breach of contract of carriage.

RULING

The Supreme Court affirmed the appellate court’s decision with modifications. The award of P27,580.00 as actual damages for lost baggage was deleted for lack of sufficient proof, as its value was not established by a bill of lading or prior declaration. However, the finding of contractual breach was upheld. The captain’s decision to sail into a known typhoon path, instead of seeking safe harbor, constituted a failure to exercise extraordinary diligence required of common carriers, making petitioner liable.
For the death of Jennifer Anne, the Court increased the indemnity from P30,000.00 to P50,000.00, applying the updated standard under Article 2206 of the Civil Code in relation to Article 1764, which governs common carriers. The award of moral damages was sustained because a breach of contract of carriage resulting in death allows for such recovery, especially given the carrier’s bad faith in disregarding storm warnings and causing the parents profound grief. The award of attorney’s fees was also affirmed, as the factual and legal bases were clearly stated in the decision, unlike in the cited inapposite precedent.