G.R. No. 127957 February 21, 2001
Collin A. Morris and Thomas P. Whittier, petitioners, vs. Court of Appeals (Tenth Division) and Scandinavian Airlines System, respondents.

FACTS

Petitioners Collin A. Morris and Thomas P. Whittier, American executives based in Makati, had confirmed first-class bookings on respondent Scandinavian Airlines System’s (SAS) Flight SK 893 from Manila to Tokyo on February 14, 1978, for business meetings. They arrived at the airport and proceeded to the SAS check-in counter. Despite their confirmed status, they were informed they could not be accommodated as the flight was full. Their names on the first-class manifest were crossed out with a “NOSH” (No Show) notation. Petitioners asserted they checked in at around 3:10 PM for a 3:50 PM flight, within the advised timeframe. SAS counter personnel testified that the flight manifest for first class had closed at 3:10 PM, and because petitioners checked in after this deadline, their seats were given to upgraded economy-class passengers due to an overbooked economy section.

ISSUE

Whether respondent SAS is liable for damages for breach of contract of carriage after bumping off petitioners from their confirmed flight.

RULING

The Supreme Court denied the petition and affirmed the Court of Appeals’ decision dismissing the complaint. The core legal principle is that a contract of air carriage imposes upon the carrier an obligation to carry the passenger safely and to provide the specific accommodations booked. However, this obligation is not absolute and is subject to reasonable conditions, including the passenger’s duty to check in within the prescribed time. The Court found that petitioners failed to check in on time. Evidence, including the testimony of SAS supervisor Raul Basa, established that the flight manifest closed at 3:10 PM. Petitioners’ own admission placed them at the counter at 3:10 PM, which was effectively late, as processing after manifest closure could not be accommodated. The subsequent upgrading of economy passengers was a reasonable operational response to the overbooking situation after the confirmed first-class passengers were deemed “no shows.” Consequently, there was no actionable breach of contract by SAS. Furthermore, the Court ruled that the airline’s act was not attended by bad faith or malice, which is necessary to award moral damages. Since moral damages were not warranted, the claims for exemplary damages and attorney’s fees were also properly denied.