G.R. No. 182395, October 05, 2015
Marito T. Bernales, Petitioner, vs. Northwest Airlines, Respondent.

FACTS

Petitioner Marito T. Bernales, a lawyer, dean, and provincial board member, was part of a Bicol trade delegation traveling to Honolulu via Northwest Airlines (NWA) Flight No. 10 on October 1, 2002. Their flight from Manila to Honolulu, with a stop in Narita, Japan, was canceled due to a typhoon. The group was wait-listed for a later flight, Flight No. 22. Due to time constraints before an extended airport curfew, NWA issued “dummy” boarding passes to wait-listed passengers. Bernales, last on the economy wait-list, received one. While on a shuttle to the aircraft, an NWA agent, Tsuruki Ohashi, informed Bernales he could not board as seats were needed for original priority passengers. The parties presented conflicting accounts: Bernales claimed Ohashi shouted, used expletives, forcibly ejected him, and took his boarding pass, leaving him without his belongings. NWA claimed Ohashi acted politely, asked Bernales to alight to find a volunteer, and did so within ten minutes, after which Bernales was transported to the plane. Bernales boarded with a dummy pass in the name “Eddie Tanno,” leading to a confrontation when he attempted to take Tanno’s seat before being escorted to his correct seat. Flight No. 22 ultimately failed to depart before the curfew, forcing all passengers to disembark and spend the night at the overcrowded airport with provided amenities. The delegation arrived in Honolulu the next afternoon, missing scheduled courtesy calls. Bernales sued NWA for breach of contract of carriage, claiming moral and exemplary damages due to alleged rude treatment, humiliation, and resulting mental anguish. The Regional Trial Court ruled in his favor, awarding damages. The Court of Appeals reversed, dismissing the complaint.

ISSUE

Whether the Court of Appeals erred in finding that Northwest Airlines did not act in bad faith and in dismissing Bernales’s claim for moral and exemplary damages arising from the alleged breach of contract of carriage.

RULING

The Supreme Court denied the petition, affirming the Court of Appeals. The Court held that moral damages in breaches of contract of carriage are recoverable only in cases resulting in passenger death or where the carrier acted in fraud or bad faith. Bad faith implies a dishonest purpose or moral obliquity, not mere negligence. The Court found that the flight disruptions were primarily caused by a typhoon, a fortuitous event. After reviewing the conflicting factual accounts, the Court agreed with the CA that NWA’s actions did not constitute bad faith. The airline followed its policy for accommodating delayed passengers, exerted efforts to assist Bernales (including finding a volunteer seat), and provided for stranded passengers during the airport overnight stay. The incident with fellow passenger Eddie Tanno was not attributable to NWA’s willful conduct. Consequently, there was no legal basis to award moral or exemplary damages. The CA committed no reversible error.