Myline Cordial

Philippine Airlines vs Hon. Court of Appeals and Isidro Co
G.R. No. 92501, March 6, 1992
207 SCRA 100

FACTS:
Isidro Co boarded petitioner airline’s PAL flight from San Francisco to Manila. Upon arrival, his checked-in baggage was nowhere to be found despite diligent search. He sued the airline for damages and the trial court ordered PAL to pay him P42,766.02 by way of actual damages, P20,000 by way of exemplary damages and P10,000 attorney’s fees.

ISSUE:
Should the limits of lability under the Warsaw Convention limiting the liability of an air crrier for loss, delay or damages to checked-in baggage to USD20 based on weight be applied? Which law should govern, the Civil Code or the Warsaw Convention?

RULING:
No. The New Civil Code shall govern. Under the New Civil Code, Art. 1753, the law of the country to which the goods are to be transported shall govern the liability of the common carrier for their loss, destruction or deterioration.
The passenger’s destination was the Philippines so Philippine law governs the liability of the carrier for the loss of passenger’s luggage.
PAL failed to overcome Co’s evidence proving that the carrier’s negligence was the proximate loss of his baggage. It also acted in bad faith in faking a retrieval receipt to bail itself out of having to pay Co’s claim.