SPS. FERNANDO vs. NORTHWEST AIRLINES, INC.

SPS. FERNANDO vs. NORTHWEST AIRLINES, INC.

G.R. No. 212038

February 08, 2017

FACTS:

Spouses Jesus and Elizabeth S. Fernando are frequent flyers of Northwest Airlines, Inc. and are holders of Elite Platinum World Perks Card, the highest category given to frequent flyers of the carrier.

The Fernandos initiated the filing of the instant case which arose from two separate incidents: first, when Jesus Fernando arrived at Los Angeles Airport on December 20, 2001; second, when the Fernandos were to depart from the LA Airport on January 29, 2002.

Jesus Fernando arrived at the LA Airport via Northwest Airlines Flight No. NW02 to join his family for Christmas, however upon arrival at the airport it was found out that his documents reflect his return ticket as August 2001. So he approached Northwest personnel who was later identified as Linda Puntawongdaycha, but the latter merely glanced at his ticket without checking its status with the computer and peremptorily said that the ticket has been used and could not be considered as valid.

The Immigration Officer brought Jesus Fernando to the interrogation room of the Immigration and Naturalization Services where he was asked humiliating questions for more than two (2) hours. When he was finally cleared by the Immigration Officer, he was granted only a twelve-day stay in the United States, instead of the usual six months.

When the Fernandos reached the gate area where boarding passes need to be presented, Northwest supervisor Linda Tang stopped them and demanded for the presentation of their paper tickets (coupon type). They failed to present the same since, according to them, Northwest issued electronic tickets (attached to the boarding passes) which they showed to the supervisor. In the presence of the other passengers, Linda Tang rudely pulled them out of the queue. Elizabeth Fernando explained to Linda Tang that the matter could be sorted out by simply verifying their electronic tickets in her computer and all she had to do was click and punch in their Elite Platinum World Perks Card number. But when the Fernandos reached the boarding gate, the plane had already departed. They were able to depart, instead, the day after, or on January 30, 2002, and arrived in the Philippines on January 31, 2002.

Northwest airlines employees on the other hand claim that they were “courteous” and “was very kind enough” to assist them. Northwest also offered them free hotel accommodations but they, again, rejected the offer Northwest then made arrangements for the transportation of the Fernandos from the airport to their house in LA, and booked the Fernandos on a Northwest flight that would leave the next day, January 30, 2002. On January 30, 2002, the Fernandos flew to Manila on business class seats.

ISSUES:

(1) Whether or not there was breach of contract of carriage and whether it was done In a wanton, malevolent or reckless manner amounting to bad faith.

(2) Whether or not Northwest is liable for the payment of moral damages and attorney’s fees and whether it is liable to pay more than that awarded by the RTC.

HELD:

(1). Yes. The Fernandos’ cause of action against Northwest stemmed from a breach of contract of carriage. A contract is a meeting of minds between two persons whereby one agrees to give something or render some service to another for a consideration. There is no contract unless the following requisites concur:

1. consent of the contracting parties; 
2. an object certain which is the subject of the contract; and 
3. the cause of the obligation which is established.

A contract of carriage is defined as one whereby a certain person or association of persons obligate themselves to transport persons, things, or goods from one place to another for a fixed price.

Under Article 1732 of the Civil Code, this “persons, corporations, firms, or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public” is called a common carrier. Undoubtedly, a contract of carriage existed between Northwest and the Fernandos. They voluntarily and freely gave their consent to an agreement whose object was the transportation of the Fernandos from LA to Manila, and whose cause or consideration was the fare paid by the Fernandos to Northwest.

(2) Yes. Northwest is in bad faith. While We agree that the discrepancy between the date of actual travel and the date appearing on the tickets of the Fernandos called for some verification, however, the Northwest personnel failed to exercise the utmost diligence in assisting the Fernandos. The actuations of Northwest personnel in both subject incidents are constitutive of bad faith.

On the first incident, Jesus Fernando even gave the Northwest personnel the number of his Elite Platinum World Perks Card for the latter to access the ticket control record with the airline’s computer for her to see that the ticket is still valid. But Linda Puntawongdaycha refused to check the validity of the ticket in the computer. As a result, the Immigration Officer brought Jesus Fernando to the interrogation room of the INS where he was interrogated for more than two (2) hours. When he was finally cleared by the Immigration Officer, he was granted only a twelve (12)-day stay in the United States (US), instead of the usual six (6) months.