Title: PHILIPPINE AIRLINES, INC., petitioner, vs. COURT OF APPEALS and GILDA C.

MEJIA, respondents.
Court: Supreme Court of the Philippines
Case No.: G.R. No. 11!"#
Date: Ma$%& 1', 1#
Ponente: REGALADO, J
(Fa%t)*
This is definitely not a case of first impression. The incident, which eventuated in the present
controversy, is a drama of common contentious occurrence between passengers and carriers whenever
loss is sustained by the former. ithal, the e!position of the factual ambience and the legal precepts in
this ad"udication may hopefully channel the assertiveness of passengers and the intransigence of
carriers into the reali#ation that at times a bad e!tra"udicial compromise could be better than a good
"udicial victory.
$ssailed in this petition for review is the decision of respondent Court of $ppeals in C$%&.'. C( No.
)*+))
1
which affirmed the decision of the lower court
+
finding petitioner Philippine $ir ,ines, -nc.
.P$,/ liable as follows:
$CC0'D-N&,1, "udgment is hereby rendered ordering defendant Philippine $ir ,ines, -nc., to pay
plaintiff &ilda C. 2e"ia:
.3/ P45, 555.55 by way of actual damages of the microwave oven6
.*/ P35, 555.55 by way of moral damages6
.4/ P*5, 555.55 by way of e!emplary damages6
.)/ P35, 555.55 as attorney7s fee6
$ll in addition to the costs of the suit.
Defendant7s counterclaim is hereby dismissed for lac8 of merit.
2e"ia shipped through P$, 3 microwave oven from San 9rancisco to 2anila. :pon arrival, she
discovered that the front glass door was bro8en and the oven could not be used. 2e"ia filed action
against P$,. P$, denied liability and alleged that it acted in conformity with the arsaw Convention
(I)),e)*
hether or not the air waybill should be strictly construed against petitioner;
(R,lin-*
$lthough the airway bill is binding between the parties, the liability of Pal is not limited on the
provisions of the airway bill. hile the arsaw Convention is law in the Philippines, the Philippines
being a signatory thereto, it does not operate as an e!clusive enumeration of the instances when a
carrier shall be liable for breach of contract or as an absolute limit of the e!tent of liability nor does it
preclude the operation of the Civil Code or other pertinent laws.
$lso, the willful misconduct and insensitivity of the officers of P$, in not attempting to e!plain the
damage despite due demand and the une!plained delay in acting on her claim amounted to bad faith
and renders un<uestionable its liability for damages
$dhesion contract is one that is not negotiated by the parties having been drafted by the dominant party
and usually embodied in a standardi#ed form. -t is called a contract of adhesion because the
participation of 3 party is limited to affi!ing her signature.