Zalamea V CA

Sps. Cesar & Suthira Zalamea, Liana Zalamea v.
Court of Appeals
288 SCRA 23 | GR No. 104235 Issue: Whether or not there was fraud or bad faith on the part of TWA
November 18, 1993 resulting to award of award of damages to the petitioners? YES.
Facts: Spouses Cesar and Suthira Zalamea and their daughter, Liana, Ruling: There was fraud or bad faith on the part of TransWorld
purchased three airline tickets from TransWorld Airlines (TWA) for a Airlines. The US law allegedly allowing airlines to overbook flights has
flight to New York to Los Angeles on June 6, 1984. The tickets of the never been proven. Foreign laws do not prove themselves nor can the
spouses were purchased at a discount, while that of their daughter is at courts take judicial notice to them, they must be alleged and
full rate. All three tickets were confirmed reservations. proved.1
Even if the claimed US Code of Federal Regulations does exist, the
While in New York, on June 4, 1984, petitioners received notice of same is not applicable to the case at bar in accordance with the
reconfirmation of their reservations. On the appointed date of the flight, principle of lex loci contractus which require that the law of the place
the spouses and their daughter checked in at 10:00 am, an hour earlier where the airline ticket was issued should be applied by the court where
than the scheduled flight but were placed on the wait-list due to the passengers are residents and nationals of the forum and the ticket is
overbooking of flights. issued in such State by the defendant airline. Since the tickets were
sold in the Philippine, the applicable law in this case would be
Out of the 42 on the waitlist, the first 22 names were allowed to board Philippine law.
the flight, including Cesar Zalamea. However, Suthira and their
daughter were not able to fly. As if, those holding full fare tickets were Existing jurisprudence explicitly states that overbooking amounts to
given first priority among the wait-listed passengers. Mr. Zalamea, who bad faith, entitling the passengers concerned to an award of moral
was holding the full-fare ticket of his daughter, was allowed to board damages. Where an airline had deliberately overbooked, it took the risk
while Mrs. Zalamea and their daughter, who presented discounted of having to deprive some passengers of their seats in case all of them
tickets were denied for boarding. Even in the next TWA flight to Los would show up for the check in. For the indignity and inconvenience of
Angeles, both could not be accommodated and denied boarding, being refused a confirmed seat on the last minute, said passenger is
constraining them to purchase two tickets for another flight from United entitled to moral damages. 2
Airlines.
Even if overbooking is allowed, respondent is still guilty of bad faith
Upon arrival in the Philippines, Sps. Zalamea filed an action for for failure to inform the passengers beforehand that it could breach
damages based on the breach of contract of air carriage before RTC the contract of carriage even if they have confirmed tickets if there
Makati. The lower court ruled in their favor ordering TWA to pay the was overbooking. Said situation should have been incorporated in the
price of the tickets bought from United Airlines together with moral
damages and attorney’s fees. 1
Written law may be evidenced by (1) official publication thereof or by copy
attested by officer having the legal custody of the record, or his deputy, and
On appeal, the CA ruled that moral damages are recoverable only in a accompanied (2) with a certificate that such officer has custody. The certificate
may be made by secretary of an embassy or legation, consul general, consul, vice-
damage suit predicated upon breach of contract only where there is bad consul, or consular agent or by any officer in the foreign service of the Philippines
faith or fraud. It further stated that since overbooking flights is common stationed in the foreign country in which the record is kept, and authenticated by
and accepted practice under the Code of Federal Regulations by Civil the seal of his office.
Aeronautics Board, no fraud or bad faith could be imputed on
respondents. 2
Alitalia Airways v. Court of Appeals
stipulations of the contract or informed passengers of such for the latter
to prepare for situation or ride another airline. Respondent is also guilty
of not informing its passengers of giving less priority to discounted
tickets.
While TWA claims that the practice of overbooking and airline system
of boarding priorities are reasonable practice and when implemented
does not amount to bad faith, the court ruled that the issue in the case is
not the reasonableness of said policies but whether or not they were
incorporated or deemed written in the contract of carriage. TWA failed
to show that there are such provisions to that effect.
The failure of respondent to inform them when it could easily have done
so thereby enabling respondent to hold on to them as passengers up to
the last minute amounts to bad faith. Evidently, TWA placed its self-
interest over the rights of petitioners under contract of carriage,
which makes the respondent liable for moral damages. The Court
also awarded exemplary damages, to deter such breach of contract
in the future.
The Court also awarded refund of the United Airline tickets. It was
shown that the purchase of United Airlines tickets was caused by the
failure of TWA to accommodate petitioners and not because they opted
to use their ticket on another flight. In Article 2201 of the New Civil
Code, respondent TWA should be responsible for all damages,
which may be reasonably attributed to non-performance of its
obligations.
The award of attorney’s fees under Article 2208 (2) which allows
recovery when defendant’s act compelled the plaintiffs to litigate or
incur expenses to protect his interest.

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