G.R. No. 92740 March 23, 1992
PHILIPPINE AIRLINES, INC., petitioner, vs. JAIME M. RAMOS, NILDA RAMOS, ERLINDA ILANO, MILAGROS ILANO, DANIEL ILANO AND FELIPA JAVALERA, respondents.

FACTS

The respondents, officers of the Negros Telephone Company, held confirmed tickets for PAL Flight No. 264 from Naga City to Manila on September 24, 1985, scheduled to depart at 4:25 p.m. Their tickets contained a condition requiring check-in at least one hour before the published departure time, with accommodation forfeited if check-in was less than 30 minutes before departure. The respondents claimed they went to the check-in counter at least one hour before departure but found no PAL personnel until 30 minutes before departure; upon presenting their tickets, their seats were cancelled and given to chance passengers, forcing them to travel to Manila by bus. They filed a complaint for breach of contract of carriage seeking damages. PAL disclaimed liability, asserting the respondents checked in late and that any liability was limited by CAB Economic Regulations. The Regional Trial Court found PAL guilty of breach and awarded actual, moral, and temperate damages, plus attorney’s fees. The Court of Appeals affirmed the decision in toto.

ISSUE

The primary issue is a question of fact: whether the private respondents were late in checking-in for their flight on September 24, 1985. Subsidiarily, the petition questions the appellate court’s affirmance based on credibility without considering material admissions and evidence, and the award of moral and temperate damages plus attorney’s fees.

RULING

The Supreme Court reversed the decision of the Court of Appeals. It held that the evidence on record did not support the respondents’ claim that they were on time for check-in. The Court found that the respondents checked in at 4:02 p.m., which was late, as evidenced by the contemporaneous notation “Late” and the time “4:02” made by the check-in clerk on their tickets immediately upon presentation. This was corroborated by testimony that two other confirmed passengers (Capati and Go) checked in at 4:01 p.m. and were also denied accommodation for being late. The respondents failed to present substantial evidence to overcome these documentary entries made in the regular course of business. The Court also found nothing irregular in the flight’s departure at 4:13 p.m. instead of 4:25 p.m., as all passengers had boarded. Consequently, the respondents’ non-accommodation was due to their own failure to comply with the check-in requirement, not a breach by PAL. The award of damages and attorney’s fees was therefore unwarranted. The petition was granted, and the decision of the Court of Appeals was annulled and set aside.