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Philippine Supreme Court Jurisprudence > Year 1992 > March 1992 Decisions > G.R. No. 95536 March 23, 1992
ANICETO G. SALUDO, JR., ET AL. v. COURT OF APPEALS, ET AL.:
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3/27/2019 G.R. No. 95536 March 23, 1992 - ANICETO G. SALUDO, JR., ET AL. v. COURT OF APPEALS, ET AL. : MARCH 1992 - PHILIPPINE SUPR…
and printed words of the contract. As previously stated, we find no ambiguity in,the contract subject of
this case that would call for the application of said rule. In any event, the contract has provided for such
a situation by explicitly stating that the above condition remains effective "notwithstanding that the same
(fixed time for completion of carriage, specified aircraft, or any particular route or schedule) may be
stated on the face hereof." While petitioners hinge private respondents’ culpability on the fact that the
carrier "certifies goods described below were received for carriage," they may have overlooked that the
statement on the face of the airway bill properly and completely reads — "Carrier certifies goods
described below were received for carriage subject to the Conditions on the reverse hereof the goods
then being in apparent good order and condition except as noted hereon." Private respondents further
aptly observe that the carrier’s certification regarding receipt of the goods for carriage "was of a Waybill,
including Condition No. 5 — and thus if plaintiffsappellants had recognized the former, then with more
reason they were aware of the latter." In the same vein, it would also be incorrect to accede to the
suggestion of petitioners that the typewritten specifications of the flight, routes and dates of departures
and arrivals on the face of the airway bill constitute a special contract which modifies the printed
conditions at the back thereof. We reiterate that typewritten provisions of the contract are to be read and
understood subject to and in view of the printed conditions, fully reconciling and giving effect to the
manifest intention of the parties to the agreement.
4. COMMERCIAL LAW; COMMERCIAL CONTRACT FOR TRANSPORTATION; BILL OF LADING; DEFINED. —
A bill of lading is a written acknowledgment of the receipt of the goods and an agreement to transport
and deliver them at a specified place to a person named or on his order. Such instrument may be called a
shipping receipt, forwarder’s receipt and receipt for transportation. The designation, however, is
immaterial. It has been held that freight tickets for bus companies as well as receipts for cargo
transported by all forms of transportation, whether by sea or land, fall within the definition. Under the
Tariff and Customs Code, a bill of lading includes airway bills of lading (4 Alcantara, Commercial Laws of
the Philippines, 118 [1987]).
5. ID.; ID.; ID.; TWOFOLD CHARACTER THEREOF. — The twofold character of a bill of lading is all too
familiar: it is a receipt as to the quantity and description of the goods shipped and a contract to transport
the goods to the consignee or other person therein designated, on the terms specified in such
instrument.
6. ID.; ID.; ID.; PRIMA FACIE EVIDENCE OF DELIVERY OF THE GOODS TO THE CARRIER. — Logically,
since a bill of lading acknowledges receipt of goods to be transported, delivery of the goods to the carrier
normally precedes the issuance of the bill; or, to some extent, delivery of the goods and issuance of the
bill are regarded in commercial practice as simultaneous acts. However, except as may be prohibited by
law, there is nothing to prevent an inverse order of events, that is, the execution of the bill, of lading
March-1992 Jurisprudence even prior to actual possession and control by the carrier of the cargo to be transported. There is no law
which requires that the delivery of the goods for carriage and the issuance of the covering bill of lading
G.R. No. 86150 March 2, 1992 GUMAN, BOCALING must coincide in point of time or, for that matter, that the former should precede the latter. Ordinarily, a
& CO. v. RAOUL S.V. BONNEVIE receipt is not essential to a complete delivery of goods to the carrier for transportation but, when issued,
is competent and prima facie, but not conclusive, evidence of delivery to the carrier. A bill of lading,
A.M. No. P88255 March 3, 1992 MANUEL U. DEL when properly executed and delivered to a shipper, is evidence that the carrier has received the goods
ROSARlO v. JOSE T. BASCAR, JR., ET AL. described therein for shipment. Except as modified by statute, it is a general rule as to the parties to a
contract of carriage of goods in connection with which a bill of lading is issued reciting that goods have
G.R. Nos. 4646061 March 3, 1992 DIWA NG been received for transportation, that the recital being in essence a receipt alone, is not conclusive, but
PAGKAKAISAPAFLU v. AMADO G. INCIONG, ET AL. may be explained, varied or contradicted by parol or other evidence.
G.R. No. 82511 March 3, 1992 GLOBEMACKAY 7. ID.; ID.; ID.; BETWEEN THE SHIPPER AND THE CARRIER; WHEN NO GOODS HAVE BEEN DELIVERED
CABLE AND RADIO CORPORATION v. NATIONAL
FOR SHIPMENT; NO RECITAL IN THE BILL CAN ESTOP THE CARRIER FROM SHOWING THE TRUE FACTS.
LABOR RELATIONS COMISSION, ET AL.
— While we agree with petitioners’ statement that "an airway hill estops the carrier from denying receipt
G.R. No. 85479 March 3, 1992 PERFECTO of goods of the quantity and quality described in the bill," a further reading and a more faithful quotation
ESPAÑOL v. CIVIL SERVICE COMMISSION, ET AL. of the authority cited would reveal that" (a) bill of lading may contain constituent elements of estoppel
and thus become something more than a contract between the shipper and the carrier. . . . (However),
G.R. No. 93003 March 3, 1992 CARMELITA REYES as between the shipper and the carrier, when no goods have been delivered for shipment no recitals in
v. EMPLOYEES’ COMPENSATION COMMISSION, ET AL. the bill can estop the carrier from showing the true facts . . .. Between the consignor of goods and a
receiving carrier, recitals in a bill of lading as to the goods shipped raise only a rebuttable presumption
G.R. No. 94472 March 3, 1992 PEOPLE OF THE that such goods were delivered for shipment. As between the consignor and a receiving carrier, the fact
PHIL. v. FERNANDO I. SANTIAGO must outweigh the recital." cralaw virtua1aw library
G.R. No. 95696 March 3, 1992 ALFONSO S. TAN v.
8. ID.; ID.; ID.; ACCEPTANCE THEREOF WITHOUT DISSENT; PRESUMPTION. — There is a holding in
SECURITIES AND EXCHANGE COMMISSION, ET AL.
most jurisdictions that the acceptance of a bill of lading without dissent raises a presumption that all
G.R. No. 101753 March 3, 1992 CIPRIANO
terms therein were brought to the knowledge of the shipper and agreed to by him, and in the absence of
PEÑAFLORIDA v. COMMISSION ON ELECTIONS, ET fraud or mistake, he is estopped from thereafter denying that he assented to such terms. This rule
AL. applies with particular force where a shipper accepts a bill of lading with full knowledge of its contents,
and acceptance, under such circumstances makes it a binding contract. In order that any presumption of
G.R. No. L42987 March 4, 1992 PEOPLE OF THE assent to a stipulation in a bill of lading limiting the liability of a carrier may arise, it must appear that the
PHIL. v. VICENTE REBULADO, ET AL. clause containing this exemption from liability plainly formed a part of the contract contained in the bill of
lading. A stipulation printed on the back of a receipt or bill of lading or on papers attached to such receipt
G.R. No. 84363 March 4, 1992 PEOPLE OF THE will be quite as effective as if printed on its face, if it is shown that the consignor knew of its terms. Thus,
PHIL. v. MATEO B. ALILIN, ET AL. where a shipper accepts a receipt which states that its conditions are to be found on the back, such
receipt comes within the general rule, and the shipper is held to have accepted and to be bound by the
G.R. Nos. 88158 & 9710809 March 4, 1992
conditions there to be found.
DANIEL GARCIA, ET AL. v. ERNESTO DE JESUS, ET AL.
G.R. No. 91745 March 4, 1992 PEOPLE OF THE
9. ID.; COMMON CARRIER; EXTRAORDINARY RESPONSIBILITY THEREOF OVER THE GOODS BEGINS
PHIL. v. JULIO MANLIGUEZ, ET AL. FROM THE TIME THE GOODS ARE DELIVERED THERETO. — Explicit is the rule under Article 1736 of the
Civil Code that the extraordinary responsibility of the common carrier begins from the time the goods are
G.R. No. 96607 March 4, 1992 OSCAR QUILOÑA v. delivered to the carrier. This responsibility remains in full force and effect even when they are
GENERAL COURT MARTIAL, ET AL. temporarily unloaded or stored in transit, unless the shipper or owner exercises the right of stoppage in
transitu, and terminates only after the lapse of a reasonable time for the acceptance of the goods by the
G.R. No. 97296 March 4, 1992 PEOPLE OF THE consignee or such other person entitled to receive them. And, there is delivery to the carrier when the
PHIL. v. PEDRO B. CANCILLER goods are ready for and have been placed in the exclusive possession, custody and control of the carrier
for the purpose of their immediate transportation and the carrier has accepted them. Where such a
G.R. Nos. 102653, 102925, 102983 March 5, 1992 delivery has thus been accepted by the carrier, the liability of the common carrier commences eo
NATIONAL PRESS CLUB v. COMMISSION ON instanti.
ELECTIONS
G.R. No. 58879 March 6, 1992 EXPEDITA LIBREA 10. ID.; ID.; ID.; FACT OF DELIVERY MUST BE UNEQUIVOCABLY ESTABLISHED. — While we agree with
v. EMPLOYEES’ COMPENSATION COMMISSION, ET AL. petitioners that the extraordinary diligence statutorily required to be observed by the carrier
instantaneously commences upon delivery of the goods thereto, for such duty to commence there must
G.R. No. 62088 March 6, 1992 PEOPLE OF THE in fact have been delivery of the cargo subject of the contract of carriage. Only when such fact of delivery
PHIL. v. SAMSON SAMILLANO has been unequivocally established can the liability for loss, destruction or deterioration of goods in the
custody of the carrier, absent the excepting causes under Article 1734, attach and the presumption of
G.R. No. 66641 March 6, 1992 FILINVEST CREDIT fault of the carrier under Article 1735 be invoked.
CORPORATION v. INTERMEDIATE APPELLATE COURT,
ET AL. 11. ID.; ID.; NOT LIABLE FOR EVENTS PRIOR TO THE DELIVERY OF THE GOODS THERETO. — The facts
in the case at bar belie the averment that there was delivery of the cargo to the carrier on October 26,
G.R. No. 77744 March 6, 1992 TEODORA
1976. Rather, as earlier explained, the body intended to be shipped as agreed upon was, really placed in
CLAVERIAS v. ADORACION QUINGCO, ET AL.
the possession and control of PAL on October 28, 1976 and it was from that date that private
G.R. Nos. 8998384 March 6, 1992 LORENZO S.
respondents became responsible for the agreed cargo under their undertakings in PAL Airway Bill No.
MENDIOLA v. PEOPLE OF THE PHIL., ET AL. 07901180454. Consequently, for the switching of caskets prior thereto which was not caused by them.,
and subsequent events caused thereby, private respondents cannot be held liable.
G.R. No. 92501 March 6, 1992 PHILIPPINE AIR
LINES v. COURT OF APPEALS, ET AL. 12. ID.; ID.; PROHIBITED FROM OPENING A CASKET FOR FURTHER VERIFICATION. — Petitioners,
proceeding on the premise that there was delivery of the cargo to private respondents on October 26,
G.R. No. 92878 March 6, 1992 EDUARDO PATNA 1976 and that the latter’s extraordinary responsibility had by then become operative, insist on foisting
AN v. NATIONAL LABOR RELATIONS COMMISSION, ET the blame on private respondents for the switching of the two caskets which occurred on October 27,
AL. 1976. It is argued that since there is no clear evidence establishing the fault of Continental Mortuary Air
Services (CMAS) for the mixup, private respondents are presumably negligent pursuant to Article 1735
G.R. No. 93851 March 6, 1992 MARK BAYQUEN v.
of the Civil Code and, for failure to rebut such presumption, they must necessarily be held liable; or,
COURT OF APPEALS, ET AL.
assuming that CMAS was at fault, the same does not absolve private respondents of liability because
G.R. No. 94530 March 6, 1992 PEOPLE OF THE
whoever brought the cargo to the airport, or loaded it on the plane did so as agent of private
PHIL. v. DANTE DONATO, ET AL. respondents. This contention is without merit. As pithily explained by the Court of Appeals: . . .
"Consequently, when the cargo was received from C.M.A.S. at the Chicago airport terminal for shipment,
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G.R. No. 103102 March 6, 1992 CLAUDIO J. which was supposed to contain the remains of Crispina Saludo, Air Care International and/or TWA, had
TEEHANKEE, JR. v. JOB B. MADAYAG, ET AL. no way of determining its actual contents, since the casket was hermetically sealed by the Philippine
ViceConsul in Chicago and in an air pouch of C.M.A.S., to the effect that Air Care International and/or
G.R. Nos. 95370 & 101227 March 10, 1992 TWA had to rely on the information furnished by the shipper regarding the cargo’s content. Neither could
PEOPLE OF THE PHIL., ET AL. v. EFREN O. RAMOS, ET
Air Care International and/or TWA open the casket for further verification, since they were not only
AL.
without authority to do so, but even prohibited. "Thus, under said circumstances, no fault and/or
A.C. No. 2405 March 11, 1992 PERLA COMPANIA
negligence can be attributed to PAL (even if Air Care International should be considered as an agent of
DE SEGUROS, INC., v. OLEEGARIO SANTISTEBAN PAL) and/or TWA, the entire fault or negligence being exclusively with C.M.A.S." It can correctly and
logically be concluded, therefore that the switching occurred or, more accurately, was discovered on
G.R. No. 40243 March 11, 1992 CELESTINO TATEL October 27, 1976; and based on the above findings of the Court of Appeals, it happened while the cargo
v. MUNICIPALITY OF VIRAC, ET AL. was still with CMAS, well before the same was placed in the custody of private respondents.
G.R. No. L47815 March 11, 1992 PEOPLE’S BANK 13. ID.; ID.; FAILURE TO VERIFY AND IDENTIFY THE CONTENTS OF THE CARGO; DOES NOT
AND TRUST COMPANY v. TOMAS R. LEONIDAS, ET AL. CONSTITUTE NEGLIGENCE; CASE AT BAR. — Petitioners consider TWA’s statement that it had to rely on
the information furnished by the shipper" a lame, excuse and that its failure to prove that its personnel
G.R. No. 84612 March 11, 1992 PEOPLE OF THE verified and identified the contents of the casket before loading the same constituted negligence on the
PHIL. v. DIOSDADO AVILA, ET AL.
part of TWA. We uphold the favorable consideration by the Court of Appeals of the following findings of
the trial court: "It was not (to) TWA, but to C.M.A.S. that the Pomierski & Son Funeral Home delivered
G.R. No. 86744 March 11, 1992 PEOPLE OF THE
PHIL. v. PEDRO BUENAVENTURA, ET AL.
the casket containing the remains of Crispina Saludo. TWA would have no knowledge therefore that the
remains of Crispina Saludo were not the ones inside the casket that was being presented to it for
G.R. No. 91662 March 11, 1992 PEOPLE OF THE shipment. TWA would have to rely on the representations of C.M.A.S. The casket was hermetically sealed
PHIL. v. MARIO AGUILUZ and also sealed by the Philippine Vice Consul in Chicago. TWA or any airline for that matter would not
have opened such sealed casket just for the purpose of ascertaining whose body was inside and to make
G.R. No. 94129 March 11, 1992 PEOPLE OF THE sure that the remains inside were those of the particular person indicated to be by C.M.A.S. TWA had to
PHIL. v. ANTONIO RIVERA accept whatever information was being furnished by the shipper or by the one presenting the casket for
shipment.And so as a matter of fact, TWA carried to San Francisco and transferred to defendant PAL a
G.R. No. 95594 March 11, 1992 ITALIAN VILLAGE shipment covered by or under PAL Airway Bill No. 079ORD01180454, the airway bill for the shipment of
RESTAURANT, ET AL. v. NATIONAL LABOR RELATIONS the casketed remains of Crispina Saludo. Only, it turned out later, while the casket was already with PAL,
COMMISSION, ET AL. that what was inside the casket was not the body of Crispina Saludo so much so that it had to be
withdrawn by C.M.A.S from PAL. The body of Crispina Saludo had been shipped to Mexico. The casket
G.R. No. 57630 March 13, 1992 CLARA BADAYOS
v. COURT OF APPEALS, ET AL.
containing the remains of Crispina Saludo was transshipped from Mexico and arrived in San Francisco the
following day on board American Airlines. It was immediately loaded by PAL on its flight for Manila. The
G.R. No. 100926 March 13, 1992 INDEPENDENT foregoing points at C.M.A.S., not defendant TWA much less defendant PAL, as the ONE responsible for
SAGAYESCALANTE PLANTERS, INC. v. NATIONAL the switching or mixup of the two bodies at the Chicago Airport terminal, and started a chain reaction of
LABOR RELATIONS COMMISSION the misshipment of the body of Crispina Saludo and a oneday delay in the delivery thereof to its
destination. Verily, no amount of inspection by respondent airline companies could have guarded against
A.M. No. 3216 March 16, 1992 DOMINGA the switching that had already taken place. Or, granting that they could have opened the casket to
VELASCO ORDONIO v. JOSEPHINE PALOGAN inspect its contents, private respondents had no means of ascertaining whether the body therein
EDUARTE contained was indeed that of Crispina Saludo except, possibly, if the body was that of a male person and
such fact was visually apparent upon opening the casket. However, to repeat, private respondents had
G.R. Nos. 74306 & 74315 March 16, 1992
no authority to unseal and open the same nor did they have any reason or justification to resort thereto.
ENRIQUE RAZON v. INTERMEDIATE APPELLATE
COURT, ET AL.
14. ID.; ID.; RIGHT TO REQUIRE GOOD FAITH ON THE PART OF THE PERSONS DELIVERING THE GOODS
G.R. No. 91122 March 16, 1992 DIONY RAPIZ, ET TO BE CARRIED AND ENTER INTO CONTRACT WITH CARRIER; SCOPE. — It is the right of the carrier to
AL. v. NATIONAL LABOR RELATIONS COMMISSION, require good faith on the part of those persons who deliver goods to be carried, ar enter into contracts
ET AL. with it, and inasmuch as the freight may depend on the value of the article to be carried, the carrier
ordinarily has the right to inquire as to its value. Ordinarily, too, it is the duty of the carrier to make
G.R. No. 93234 March 16, 1992 PEDRO S. inquiry as to the general nature of the articles shipped and of their value before it consents to carry
RAVELO, ET AL. v. COURT OF APPEALS, ET AL. them; and its failure to do so cannot defeat the shipper’s right to recovery of the full value of the
package if lost, in the absence of showing of fraud or deceit on the part of the shipper. In the absence of
G.R. No. 94803 March 16, 1992 TALAGA more definite information, the carrier has the right to accept shipper’s marks as to the contents of the
BARANGAY WATER SERVICE COOPERATIVE v. package offered for transportation and is not bound to inquire particularly about them in order to take
NATIONAL LABOR RELATIONS COMMISSION, ET AL.
advantage of a false classification and where a shipper expressly represents the contents of a package to
be of a designated character, it is not the duty of the carrier to ask for a repetition of the statement nor
G.R. No. 95692 March 16, 1992 SUNDAY
MACHINE WORKS, INC. v. NATIONAL LABOR
disbelieve it and open the box and see for itself. However, where a common carrier has reasonable
RELATIONS COMMISSION, ET AL. ground to suspect that the offered goods are of a dangerous or illegal character, the carrier has the right
to know the character of such goods and to insist on an inspection, if reasonable and practical under the
G.R. No. 98030 March 17, 1992 ALEJANDRO J. circumstances, as a condition of receiving and transporting such goods.
CUADRA, ET AL. v. NATIONAL LABOR RELATIONS
COMMISSION, ET AL. 15. ID.; ID.; ENTITLED TO FAIR REPRESENTATION OF THE NATURE AND VALUE OF THE GOODS TO BE
CARRIED; CASE AT BAR. — It can safely be said then that a common carrier is entitled to fair
G.R. No. 85469 March 18, 1992 JOSE RAMIREZ, representation of the nature and value of the goods to be carried, with the concomitant right to rely
ET AL. v. COURT OF APPEALS, ET AL. thereon, and further noting at this juncture that a carrier has no obligation to inquire into the correctness
or sufficiency of such information. The consequent duty to conduct an inspection thereof arises in the
G.R. No. 87148 March 18, 1992 MARCIANA
event that there should be reason to doubt the veracity of such representations. Therefore, to be
CONSIGNADO, ET AL. v. COURT OF APPEALS, ET AL.
subjected to unusual search, other than the routinary inspection procedure customarily undertaken,
G.R. No. 94810 March 18, 1992 EASTERN
there must exist proof that would justify cause for apprehension that the baggage is dangerous as to
METROPOLITAN BUS CORP., ET AL. v. EDILBERTO warrant exhaustive inspection, or even refusal to accept carriage of the same; and it is the failure of the
PANGAN, ET AL. carrier to act accordingly in the face of such proof that constitutes the basis of the common carrier’s
liability. In the case at bar, private respondents had no reason whatsoever to doubt the truth of the
G.R. Nos. 9492930 March 18, 1992 PORT shipper’s representations. The airway bill expressly providing that "carrier certifies goods received below
WORKERS UNION OF THE PHILIPPINES v. were received for carriage," and that the cargo contained "casketed human remains of Crispina Saludo,"
BIENVENIDO E. LAGUESMA, ET AL. was issued on the basis of such representations. The reliance thereon by private respondents was
reasonable and, for so doing, they cannot be said to have acted negligently. Likewise, no evidence was
G.R. No. 97357 March 18, 1992 VIRON adduced to suggest even an iota of suspicion that the cargo presented for transportation was anything
GARMENTS MANUFACTURING, CO., INC., ET AL. v. other than what it was declared to be, as would require more than routine inspection or call for the
NATIONAL LABOR RELATIONS COMMISSION, ET AL. carrier to insist that the same be opened for scrutiny of its contents per declaration.
G.R. No. 100727 March 18, 1992 COGEOCUBAO
OPERATORS AND DRIVERS ASSOCIATION v. COURT
16. ID.; ID.; FORWARDER OF THE GOODS THERETO, NOT AN AGENT THEREOF BUT THAT OF THE
OF APPEALS, ET AL. SHIPPER. — Private respondents cannot be held accountable on the basis of petitioners’ preposterous
proposition that whoever brought the cargo to the airport or loaded it on the airplane did so as agent of
G.R. No. 71238 March 19, 1992 LUFTHANSA private respondents, so that even if CMAS whose services were engaged for the transit arrangements for
GERMAN AIRLINES v. INTERMEDIATE APPELLATE the remains was indeed at fault, the liability therefor would supposedly still be attributable to private
COURT, ET AL. respondents. While we agree that the actual participation of CMAS has been sufficiently and correctly
established, to hold that it acted as agent for private respondents would be both an inaccurate appraisal
G.R. No. 75308 March 23, 1992 LOPE SARREAL, and an unwarranted categorization of the legal position it held in the entire transaction. It bears
SR. v. JAPAN AIR LINES CO., LTD., ET AL. repeating that CMAS was hired to handle all the necessary shipping arrangements for the transportation
of the human remains of Crispina Saludo to Manila. Hence, it was to CMAS that the Pomierski & Son
G.R. No. 75907 March 23, 1992 FAMILY Funeral Home, as shipper, brought the remains of petitioners’ mother for shipment, with Maria Saludo as
PLANNING ORGANIZATION OF THE PHIL., INC. v.
consignee. Thereafter, CMAS booked the shipment with PAL through the carrier’s agent, Air Care
NATIONAL LABOR RELATIONS COMMISSION, ET AL.
International. With its aforestated functions, CMAS may accordingly be classified as a forwarder which,
G.R. Nos. 8065860 March 23, 1992 PEOPLE OF by accepted commercial practice, is regarded as an agent of the shipper and not of the carrier. As such,
THE PHIL. v. MAXIMINO TINAMPAY, ET AL. it merely contracts for the transportation of goods by carriers, and has no interest in the freight but
receives compensation from the shipper as his agent.
G.R. No. 90519 March 23, 1992 UNION OF
FILIPINO WORKERS v. NATIONAL LABOR RELATIONS 17. ID.; ID.; NOT LIABLE FOR DELAY IN THE ABSENCE OF SPECIAL CONTRACT. — The oftrepeated rule
COMMISSION, ET AL. regarding a carrier’s liability for delay is that in the absence of a special contract, a carrier is not an
insurer against delay in transportation of goods. When a common carrier undertakes to convey goods,
G.R. No. 90527 March 23, 1992 RURAL BANK OF the law implies a contract that they shall be delivered at destination within a reasonable time, in the
BAAO, INC., ET AL. v. NATIONAL LABOR RELATIONS absence of any agreement as to the time of delivery. But where a carrier has made an express contract
COMMISSION, ET AL.
to transport and deliver property within a specified time, it is bound to fulfill its contract and is liable for
any delay, no matter from what cause it may have arisen. This result logically follows from the well
G.R. Nos. 9244243 March 23, 1992 PEOPLE OF
THE PHIL. v. NESTOR DELA CRUZ settled rule that where the law creates a duty or charge, and the party is disabled from performing it
without any default in himself, and has no remedy over, then the law will excuse him, but where the
G.R. No. 92740 March 23, 1992 PHILIPPINE party by his own contract creates a duty or charge upon himself, he is bound to make it good
AIRLINES, INC. v. JAIME J. RAMOS, ET AL. notwithstanding any accident or delay by inevitable necessity because he might have provided against it
by contract. Whether or not there has been such an undertaking on the part of the carrier is to be
G.R. No. 95022 March 23, 1992 COMMISSIONER determined from the circumstances surrounding the case and by application of the ordinary rules for the
OF INTERNAL REVENUE v. COURT OF APPEALS, ET AL. interpretation of contracts.
G.R. No. 95536 March 23, 1992 ANICETO G. 18. ID.; ID.; ID.; SPECIFICATION OF THE FLIGHT AND DATES OF DEPARTURE; NOT A SPECIAL
SALUDO, JR., ET AL. v. COURT OF APPEALS, ET AL. CONTRACT THAT COULD PREVAIL OVER THE PRINTED STIPULATION. — Also, the theory of petitioners
that the specification of the flights and dates of departures and arrivals constitute a special contract that
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G.R. No. 97346 March 23, 1992 RODOLFO could prevail over the printed stipulations at the back of the airway bill is vacuous. To countenance such
YOSORES v. EMPLOYEES’ COMPENSATION a postulate would unduly burden the common carrier for that would have the effect of unilaterally
COMMISSION transforming every single bill of lading or trip ticket into a special contract by the simple expedient of
filling it up with the particulars of the flight, trip or voyage, and thereby imposing upon the carrier duties
G.R. No. 101367 March 23, 1992 PEOPLE OF THE and/or obligations which it may not have been ready or willing to assume had it been timely advised
PHIL. v. ELMO CATUA, ET AL.
thereof. Neither does the fact that the challenged condition No. 5 was printed at the back of the airway
G.R. Nos. 8358384 March 25, 1992
bill militate against its binding effect on petitioners as parties to the contract, for there were sufficient
COMMISSIONER OF INTERNAL REVENUE v. RIO TUBA indications on the face of said bill that would alert them to the presence of such additional condition to
NICKEL MINING CORPORATION, ET AL. put them on their guard. Ordinary prudence on the part of any person entering or contemplating to enter
into a contract would prompt even a cursory examination of any such conditions, terms and/or
G.R. No. 84220 March 25, 1992 BENJAMIN stipulations.
RODRIGUEZ v. COURT OF APPEALS, ET AL.
19. ID.; ID.; CHANGES IN ROUTE; FLIGHTS AND SCHEDULE; WHEN JUSTIFIED. — Just because we have
G.R. No. 84240 March 25, 1992 OLIVIA S. said that Condition No. 5 of the airway bill is binding upon the parties to and fully operative in this
PASCUAL, ET AL. v. ESPERANZA C. PASCUAL transaction, it does not mean, and let this serve as fair warning to respondent carriers, that they can at
BAUTISTA, ET AL. all times whimsically seek refuge from liability in the exculpatory sanctuary of said Condition No. 5 or
arbitrarily vary routes, flights and schedules to the prejudice of their customers. This condition only
G.R. No. 88942 March 25, 1992 PEOPLE OF THE
serves to insulate the carrier from liability in those instances when changes in routes, flights and
PHIL. v. MANOLO S. CARPIO
schedules are clearly justified by the peculiar circumstances of a particular case, or by general
A.M. No. RTJ8798 March 26, 1992 AMELIA B. transportation practices, customs and usages, or by contingencies or emergencies in aviation such as
JUVIDA v. MANUEL SERAPIO, ET AL. weather turbulence, mechanical failure, requirements of national security and the like. And even as it is
conceded that specific routing and other navigational arrangements for a trip, flight or voyage, or
G.R. No. 93044 March 26, 1992 RADIO variations therein, generally lie within the discretion of the carrier in the absence of specific routing
COMMUNICATIONS OF THE PHILIPPINES, INC. v. instructions or directions by the shipper, it is plainly incumbent upon the carrier to exercise its rights with
NATIONAL WAGES COUNCIL, ET AL. due deference to the rights, interests and convenience of its customers.
G.R. No. 96697 March 26, 1992 PEOPLE OF THE 20. ID.; ID.; LIABLE FOR DAMAGES IN CASE OF UNREASONABLE DELAY AS IMMEDIATE AND PROXIMATE
PHIL. v. JAIME COMPETENTE, ET AL. RESULT FROM NEGLECT OF DUTY. — A common carrier undertaking to transport property has the implicit
duty to carry and deliver it within a reasonable time, absent any particular stipulation regarding time of
G.R. No. 45425 & 45965 March 27, 1992 CELSA L.
delivery, and to guard against delay. In case of any unreasonable delay, the carrier shall be liable for
VDA. DE KILAYKO, ET AL. v. ERNESTO TENGCO, ET AL.
damages immediately and proximately resulting from such neglect of duty.
A.C. No. 3724 March 31, 1992 JOAQUIN G.
GARRIDO v. RAMON J. QUISUMBING, ET AL. 21. ID.; ID.; MUST STRICTLY REQUIRE ITS PERSONNEL TO BE MORE ACCOMMODATING TOWARDS
CUSTOMER, PASSENGER AND THE GENERAL PUBLIC; REASONS THEREFOR. — Airline companies are
G.R. No. 64220 March 31, 1992 SEARTH hereby sternly admonished that it is their duty not only to cursorily instruct but to strictly require their
COMMODITIES CORPORATION, ET AL. v. COURT OF personnel to be more accommodating towards customers, passengers and the general public. After all,
APPEALS, ET AL. common carriers such as airline companies are in the business of rendering public service, which is the
primary reason for their enfranchisement and recognition in our law. Because the passengers in a
G.R. No. 68319 March 31, 1992 PEOPLE OF THE contract of carriage do not contract merely for transportation, they have a right to be treated with
PHIL. v. JESUS DELA CRUZ, ET AL. kindness, respect, courtesy and consideration. A contract to transport passengers is quite different in
kind and degree from any other contractual relation, and generates a relation attended with public duty.
G.R. No. 76225 March 31, 1992 ESPIRIDION
The operation of a common carrier is a business affected with public interest and must be directed to
TANPINGCO v. INTERMEDIATE APPELLATE COURT, ET
AL.
serve the comfort and convenience of passengers. Passengers are human beings with human feelings
and emotions; they should not be treated as mere numbers or statistics for revenue.
G.R. No. 87710 March 31, 1992 ROBERTO S.
BENEDICTO v. BOARD OF ADMINISTRATORS OF 22. ID.; CONTRACTS; CONSTRUCTION AND INTERPRETATION THEREOF; RULE. — The hornbook rule on
TELEVISION STATIONS RPN, BBC AND IBC interpretation of contracts consecrates the primacy of the intention of the parties, the same having the
force of law between them. When the terms of the agreement are clear and explicit, that they do not
G.R. No. 94071 March 31, 1992 NEW LIFE justify an attempt to read into any alleged intention of the parties, the terms are to be understood
ENTERPRISES, ET AL. v. COURT OF APPEALS, ET AL. literally just as they appear on the face of the contract. The various stipulations of a contract shall be
interpreted together and such a construction is to be adopted as will give effect to all provisions thereof.
G.R. No. 96319 March 31, 1992 PEOPLE OF THE A contract cannot be construed by parts, but its clauses should be interpreted in relation to one another.
PHIL. v. RENATO ARCEGA The whole contract must be interpreted or read together in order to arrive at its true meaning. Certain
stipulations cannot be segregated and then made to control; neither do particular words or phrases
G.R. No. 97149 March 31, 1992 FIDENCIO Y.
BEJA, SR. v. COURT OF APPEALS, ET AL. necessarily determine the character of a contract. The legal effect of the contract is not to be determined
alone by any particular provision disconnected from all others, but in the ruling intention of the parties as
G.R. No. 101556 March 31, 1992 PEOPLE OF THE gathered from all the language they have used and from their contemporaneous and subsequent acts.
PHIL. v. ROBERTO ESTERA
23. ID.; ID.; CONTRACT OF ADHESION; AS A GENERAL RULE, MUST BE STRICTLY CONSTRUED AGAINST
G.R. No. 103956 March 31, 1992 BLO UMPAR THE PARTY WHO DRAFTED THE SAME; EXCEPTION. — Granting arguendo that Condition No. 5 partakes
ADIONG v. COMMISSION ON ELECTIONS of the nature of a contract of adhesion and as such must be construed strictly against the party who
drafted the same or gave rise to any ambiguity therein, it should be borne in mind that a contract of
adhesion may be struck down as void and unenforceable, for being subversive of public policy, only when
the weaker party is imposed upon in dealing with the dominant bargaining party and is reduced to the
alternative of taking it or leaving it, completely deprived of the opportunity to bargain on equal footing.
However, Ong Yiu v. Court of Appeals, Et Al., instructs us that contracts of adhesion are not entirely
prohibited. The one who adheres to the contract is in reality free to reject it entirely; if he adheres, he
gives his consent. Accordingly, Petitioners, far from being the weaker party in this situation, duly
signified their presumed assent to all terms of the contract through their acceptance of the airway bill
and are consequently bound thereby. It cannot be gainsaid that petitioners were not without several
choices as to carriers in Chicago with its numerous airways and airlines servicing the same.
24. ID.; DAMAGES; MORAL DAMAGES; MAY BE AWARDED FOR WILLFUL OR FRAUDULENT BREACH OF
CONTRACT AND SUCH BREACH IS ATTENDED BY MALICE OR BAD FAITH. — The uniform decisional tenet
in our jurisdiction holds that moral damages may be awarded for willful or fraudulent breach of contract
or when such breach is attended by malice or bad faith. However, in the absence of strong and positive
evidence of fraud, malice or bad faith, said damages cannot be awarded. Neither can, there be an award
of exemplary damages nor of attorney’s fees as an item of damages in the absence of proof that
defendant acted with malice, fraud or bad faith.
25. ID.; ID.; NOMINAL DAMAGES; INTENDED FOR THE VINDICATION OR RECOGNITION OF A RIGHT
VIOLATED OR INVADED. — The censurable conduct of TWA’s employees cannot, however, be said to
have approximated the dimensions of fraud, malice or bad faith. It can be said to be more of a lethargic
reaction produced and engrained in some people by the mechanically routine nature of their work and a
racial or societal culture which stultifies what would have been their accustomed human response to a
human need under a former and different ambience. Nonetheless, the facts show that petitioners’ right to
be treated with due courtesy in accordance with the degree of diligence required by law to be exercised
by every common carrier was violated by TWA and this entitles them, at least, to nominal damages from
TWA alone. Articles 2221 and 2222 of the Civil Code make it clear that nominal damages are not
intended for indemnification of loss suffered but for the vindication or recognition of a right violated or
invaded. They are recoverable where some injury has been done but the amount of which the evidence
fails to show, the assessment of damages being left to the discretion of the court according to the
circumstances of the case. In the exercise of our discretion, we find an award of P40,000.00 as nominal
damages in favor of petitioners to be a reasonable amount under the circumstances of the case.
D E C I S I O N
REGALADO, J.:
Assailed in this petition for review on certiorari is the decision in CAG.R. CV No. 20951 of respondent
Court of Appeals 1 which affirmed the decision of the trial court 2 dismissing for lack of evidence herein
petitioners’ complaint in Civil Case No. R2101 of the then Court of First Instance of Southern Leyte,
Branch I.
chanrobles law library : red
The facts, as recounted by the court a quo and adopted by respondent court after "considering the
evidence on record," are as follows: jgc:chanrobles.com.ph
"After the death of plaintiffs’ mother, Crispina Galdo Saludo, in Chicago, Illinois, (on) October 23, 1976
(Exh. A), Pomierski and Son Funeral Home of Chicago, made the necessary preparations and
arrangements for the shipment of the remains from Chicago to the Philippines. The funeral home had the
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remains embalmed (Exh. D) and secured a permit for the disposition of dead human body on October 25,
1976 (Exh. C). Philippine Vice Consul in Chicago, Illinois, Bienvenido M. Llaneta, at 3:00 p.m. on October
26, 1976 at the Pomierski & Son Funeral Home, sealed the shipping case containing a hermetically sealed
casket that is airtight and waterproof wherein was contained the remains of Crispina Saludo Galdo (sic)
(Exh. B). On the same date, October 26, 1976, Pomierski brought the remains to C.M.A.S. (Continental
Mortuary Air Services) at the airport (Chicago) which made the necessary arrangements such as flights,
transfers, etc.; C.M.A.S. is a national service used by undertakers throughout the nation (U.S.A.), they
furnish the air pouch which the casket is enclosed in, and they see that the remains are taken to the
proper air freight terminal (Exh. 6TWA). C.M.A.S. booked the shipment with PAL thru the carrier’s agent
Air Care International, with Pomierski F.H. as the shipper and Mario (Maria) Saludo as the consignee. PAL
Airway Bill No. 07901180454 Ordinary was issued wherein the requested routing was from Chicago to
San Francisco on board TWA Flight 131 of October 27, 1976, and from San Francisco to Manila on board
PAL Flight No. 107 of the same date, and from Manila to Cebu on board PAL Flight 149 of October 29,
1976 (See Exh. E, also Exh. 1PAL).
"In the meantime, plaintiffs Maria Salvacion Saludo and Saturnino Saludo, thru a travel agent, were
booked with United Airlines from Chicago to California, and with PAL from California to Manila. She then
went to the funeral director of Pomierski Funeral Home who had her mother’s remains and she told the
director that they were booked with United Airlines. But the director told her that the remains were
booked with TWA flight to California. This upset her, and she and her brother had to change reservations
from UA to the TWA flight after she confirmed by phone that her mother’s remains would be on that TWA
flight. They went to the airport and watched from the lookout area. She saw no body being brought. So,
she went to the TWA counter again, and she was told there was no body on that flight. Reluctantly, they
took the TWA flight upon assurance of her cousin, Ani Bantug, that he would look into the matter and
inform her about it on the plane or have it radioed to her. But no confirmation from her cousin reached
her that her mother was on the West Coast.
"Upon arrival at San Francisco at about 5:00 p.m., she went to the TWA counter there to inquire about
her mother’s remains. She was told they did not know anything about it.
"She then called Pomierski that her mother’s remains were not at the West Coast terminal, and Pomierski
immediately called C.M.A.S., which in a matter of 10 minutes informed him that the remains were on a
place to Mexico City, that there were two bodies at the terminal, and somehow they were switched; he
relayed this information to Miss Saludo in California; later C.M.A.S. called and told him they were sending
the remains back to California via Texas (see Exh. 6TWA).
"It turned out that TWA had carried a shipment under PAL Airway Bill No. 079ORD01180454 on TWA
Flight 603 of October 27, 1976, a flight earlier than TWA Flight 131 of the same date. TWA delivered or
transferred the said shipment said to contain human remains to PAL at 1400 H or 2:00 p.m. of the same
date. October 27, 1976 (See Exh. 1TWA).’Due to a switch(ing) in Chicago’, this shipment was withdrawn
from PAL by CMAS at 1805H (or 6:05 p.m.) of the same date, October 27 (Exh. 3PAL, see Exh. 3a
PAL).
"What transpired at the Chicago (A)irport is explained in a memo or incident report by Pomierski (Exh. 6
TWA) to Pomierski’s lawyers who in turn referred to said memo and enclosed it in their (Pomierski’s
lawyers) answer dated July 18, 1981 to herein plaintiff’s counsel (See Exh. 5TWA). In that memo or
incident report (Exh. 6TWA), it is stated that the remains (of Crispina Saludo) were taken to CMAS at
the airport; that there were two bodies at the (Chicago Airport) terminal, and somehow they were
switched, that the remains (of Crispina Saludo) were on a plane to Mexico City; that CMAS is a national
service used by undertakers throughout the nation (U.S.A.), makes all the necessary arrangements, such
as flights, transfers, etc., and see(s) to it that the remains are taken to the proper air freight terminal.
"The following day October 28, 1976, the shipment or remains of Crispina Saludo arrived (in) San
Francisco from Mexico on board American Airlines. This shipment was transferred to or received by PAL
at 1945H or 7:45 p.m. (Exh. 2PAL, Exh. 2aPAL). This casket bearing the remains of Crispina Saludo,
which was mistakenly sent to Mexico and was opened (there), was resealed by Crispin F. Padagas for
shipment to the Philippines (See Exh. B1). The shipment was immediately loaded on PAL flight for
Manila that same evening and arrived (in) Manila on October 30, 1976, a day after its expected arrival on
October 29, 1976." 3
In a letter dated December 15, 1976, 4 petitioners’ counsel informed private respondent Trans World
Airlines (TWA) of the misshipment and eventual delay in the delivery of the cargo containing the remains
of the late Crispina Saludo, and of the discourtesy of its employees to petitioners Maria Salvacion Saludo
and Saturnino Saludo. In a separate letter on June 10, 1977 addressed to corespondent Philippine
Airlines (PAL), 5 petitioners stated that they were holding PAL liable for said delay in delivery and would
commence judicial action should no favorable explanation be given.
chanrobles virtualawlibrary chanrobles.com:chanrobles.com.ph
Both private respondents denied liability. Thus, a damage suit 6 was filed by petitioners before the then
Court of First Instance, Branch III, Leyte, praying for the award of actual damages of P50,000.00, moral
damages of P1,000,000.00, exemplary damages, attorney’s fees and costs of suit.
As earlier stated, the court below absolved the two respondent airline companies of liability. The Court of
Appeals affirmed the decision of the lower court in toto, and in a subsequent resolution, 7 denied herein
petitioners’ motion for reconsideration for lack of merit.
In predictable disagreement and dissatisfaction with the conclusions reached by respondent appellate
court, petitioners now urge this Court to review the appealed decision and to resolve whether or not (1)
the delay in the delivery of the casketed remains of petitioners’ mother was due to the fault of
respondent airline companies, (2) the oneday delay in the delivery of the same constitutes contractual
breach as would entitle petitioners to damages, (3) damages are recoverable by petitioners for the
humiliating, arrogant and indifferent acts of the employees of TWA and PAL, and (4) private respondents
should be held liable for actual. moral and exemplary damages, aside from attorney’s fees and litigation
expenses. 8
At the outset and in view of the spirited exchanges of the parties on this aspect, it is to be stressed that
only questions of law may be raised in a petition filed in this Court to review on certiorari the decision of
the Court of Appeals. 9 This being so, the factual findings of the Court of Appeals are final and conclusive
and cannot be reviewed by the Supreme Court. The rule, however, admits of established exceptions, to
wit: (a) where there is grave abuse of discretion; (b) when the finding is grounded entirely on
speculations, surmises or conjectures; (c) when the inference made is manifestly mistaken, absurd or
impossible; (d) when the judgment of the Court of Appeals was based on a misapprehension of facts; (e)
when the factual findings are conflicting; (f) when the Court of Appeals, in making its findings, went
beyond the issues of the case and the same are contrary to the admissions of both appellant and
appellee; 10 (g) when the Court of Appeals manifestly overlooked certain relevant facts not disputed by
the parties and which, if properly considered, would justify a different conclusion; 11 and (h) where the
findings of fact of the Court of Appeals are contrary to those of the trial court, or are mere conclusions
without citation of specific evidence, or where the facts set forth by the petitioner are not disputed by the
respondent, or where the findings of fact of the Court of Appeals are premised on the absence of
evidence and are contradicted by the evidence on record. 12
To distinguish, a question of law is one which involves a doubt or controversy on what the law is on a
certain state of facts; and, a question of fact, contrarily, is one in which there is a doubt or difference as
to the truth or falsehood of the alleged facts. 13 One test, it has been held, is whether the appellate
court can determine the issue raised without reviewing or evaluating the evidence, in which case it is a
question of law, otherwise it will be a question of fact. 14 Respondent airline companies object to the
present recourse of petitioners on the ground that this petition raises only factual questions. 15
petitioners maintain otherwise or, alternatively, they are of the position that, assuming that the petition
raises factual questions, the same are within the recognized exceptions to the general rule as would
render the petition cognizable and worthy of review by the Court. 16
Since it is precisely the soundness of the inferences or conclusions that may be drawn from the factual
issues which are here being assayed, we find that the issues raised in the instant petition indeed warrant
a second look if this litigation is to come to a reasonable denouement. A discussion seriatim of said issues
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will further reveal that the sequence of the events involved is in effect disputed. Likewise to be settled is
whether or not the conclusions of the Court of Appeals subject of this review indeed find evidentiary and
legal support.
chanrobles virtual lawlibrary
I. Petitioners fault respondent court for "not finding that private respondents failed to exercise
extraordinary diligence required by law which resulted in the switching and/or misdelivery of the remains
of Crispina Saludo to Mexico causing gross delay in its shipment to the Philippines, and consequently,
damages to petitioners." 17
Petitioners allege that private ‘respondents received the casketed remains of petitioners’ mother on
October 26, 1976, as evidenced by the issuance of PAL Air Waybill No. 07901180454 18 by Air Care
International as carrier’s agent; and from said date, private respondents were charged with the
responsibility to exercise extraordinary diligence so much so that for the alleged switching of the caskets
on October 27, 1976, or one day after private respondents received the cargo, the latter must
necessarily be liable.
To support their assertion, petitioners rely on the jurisprudential dictum, both under American and
Philippine law, that" (t)he issuance of a bill of lading carries the presumption that the goods were
delivered to the carrier issuing the bill, for immediate shipment, and it is nowhere questioned that a bill
of lading is prima facie evidence of the receipt of the goods by the carrier. . . . In the absence of
convincing testimony establishing mistake, recitals in the bill of lading showing that the carrier received
the goods for shipment on a specified date control (13 C.J.S. 235)." 19
A bill of lading is a written acknowledgment of the receipt of the goods and an agreement to transport
and deliver them at a specified place to a person named or on his order. Such instrument may be called a
shipping receipt, forwarder’s receipt and receipt for transportation. 20 The designation, however, is
immaterial. It has been held that freight tickets for bus companies as well as receipts for cargo
transported by all forms of transportation, whether by sea or land, fall within the definition. Under the
Tariff and Customs Code, a bill of lading includes airway bills of lading. 21 The twofold character of a bill
of lading is all too familiar: it is a receipt as to the quantity and description of the goods shipped and a
contract to transport the goods to the consignee or other person therein designated, on the terms
specified in such instrument. 22
Logically, since a bill of lading acknowledges receipt of goods to be transported, delivery of the goods to
the carrier normally precedes the issuance of the bill; or, to some extent, delivery of the goods and
issuance of the bill are regarded in commercial practice as simultaneous acts. 23 However, except as
may be prohibited by law, there is nothing to prevent an inverse order of events, that is, the execution of
the bill, of lading even prior to actual possession and control by the carrier of the cargo to be
transported. There is no law which requires that the delivery of the goods for carriage and the issuance
of the covering bill of lading must coincide in point of time or, for that matter, that the former should
precede the latter.
Ordinarily, a receipt is not essential to a complete delivery of goods to the carrier for transportation but,
when issued, is competent and prima facie, but not conclusive, evidence of delivery to the carrier. A bill
of lading, when properly executed and delivered to a shipper, is evidence that the carrier has received
the goods described therein for shipment. Except as modified by statute, it is a general rule as to the
parties to a contract of carriage of goods in connection with which a bill of lading is issued reciting that
goods have been received for transportation, that the recital being in essence a receipt alone, is not
conclusive, but may be explained, varied or contradicted by parol or other evidence. 24
While we agree with petitioners’ statement that "an airway hill estops the carrier from denying receipt of
goods of the quantity and quality described in the bill," a further reading and a more faithful quotation of
the authority cited would reveal that" (a) bill of lading may contain constituent elements of estoppel and
thus become something more than a contract between the shipper and the carrier. . . . (However), as
between the shipper and the carrier, when no goods have been delivered for shipment no recitals in the
bill can estop the carrier from showing the true facts . . . Between the consignor of goods and a receiving
carrier, recitals in a bill of lading as to the goods shipped raise only a rebuttable presumption that such
goods were delivered for shipment. As between the consignor and a receiving carrier, the fact must
outweigh the recital." 25 (Emphasis supplied.)
For this reason, we must perforce allow explanation by private respondents why, despite the issuance of
the airway bill and the date thereof, they deny having received the remains of Crispina Saludo on
October 26, 1976 as alleged by petitioners.
The findings of the trial court, as favorably adopted by the Court of Appeals and which we have earlier
quoted, provide us with the explanation that sufficiently overcomes the presumption relied on by
petitioners in insisting that the remains of their mother were delivered to and received by private
respondents on October 26, 1976. Thus —
". . . Philippine Vice Consul in Chicago, Illinois, Bienvenido M. Llaneta, at 3:00 p.m. on October 26, 1976
at the Pomierski & Son Funeral Home, sealed the shipping case containing a hermetically sealed casket
that is airtight and waterproof wherein was contained the remains of Crispina Saludo Galdo (sic) (Exh.
B). On the same date October 26, 1976, Pomierski brought the remains to C.M.A.S. (Continental
Mortuary Air Services) at the airport (Chicago) which made the necessary arrangements such as flights,
transfers, etc; C.M.A.S. is a national service used by undertakers throughout the nation (U.S.A.), they
furnish the air pouch which the casket is enclosed in, and they see that the remains are taken to the
proper air freight terminal (Exh. GTWA). C.M.A.S. booked the shipment with PAL thru the carrier’s agent
Air Care International, with Pomierski F.H. as the shipper and Mario (Maria) Saludo as the consignee. PAL
Airway Bill No. 079 01180454 Ordinary was issued wherein the requested routing was from Chicago to
San Francisco on board TWA Flight 131 of October 27, 1976, and from San Francisco to Manila on board
PAL Flight No. 107 of the same date, and from Manila to Cebu on board PAL Flight 149 of October 29,
1976 (See Exh. E, also Exh. 1PAL)." 26 (Emphasis supplied.)
Moreover, we are persuaded to believe private respondent PAL’s account as to what transpired on
October 26, 1976: jgc:chanrobles.com.ph
". . . pursuant thereto, on 26 October 1976, CMAS acting upon the instruction of Pomierski, F.H., the
shipper requested booking of the casketed remains of Mrs. Cristina (sic) Saludo on board PAL’s San
FranciscoManila Flight No. PR 107 on October 27, 1976.
"2. To signify acceptance and confirmation of said booking, PAL issued to said Pomierski F.H., PAL Airway
Bill No. 07901180454 dated October 27, 1976 (sic, ‘10/26/76’). PAL confirmed the booking and
transporting of the shipment on board of its Flight PR 107 on October 27, 1976 on the basis of the
representation of the shipper and/or CMAS that. the said cargo would arrive in San Francisco from
Chicago on board United Airlines Flight US 121 on 27 October 1976." 27
In other words,, on October 26, 1976 the cargo containing the casketed remains of Crispina Saludo was
booked for PAL Flight Number PR107 leaving San Francisco for Manila on October 27, 1976. PAL Airway
Bill No. 07901180454 was issued, not as evidence of receipt of delivery of the Cargo on October 26,
1976, but merely as a confirmation of the booking thus made for the San FranciscoManila flight
scheduled on October 27, 1976. Actually, it was not until October 28, 1976 that PAL received physical
delivery of the body at San Francisco, as duly evidenced by the Interline Freight Transfer Manifest of the
American Airline Freight System and signed for by Virgilio Rosales at 1945H, or 7:45 P.M. on said date.
28
Explicit is the rule under Article 1736 of the Civil Code that the extraordinary responsibility of the
common carrier begins from the time the goods are delivered to the carrier. This responsibility remains in
full force and effect even when they are temporarily unloaded or stored in transit, unless the shipper or
owner exercises the right of stoppage in transitu, 29 and terminates only after the lapse of a reasonable
time for the acceptance of the goods by the consignee or such other person entitled to receive them. 30
And, there is delivery to the carrier when the goods are ready for and have been placed in the exclusive
possession, custody and control of the carrier for the purpose of their immediate transportation and the
carrier has accepted them. 31 Where such a delivery has thus been accepted by the carrier, the liability
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of the common carrier commences eo instanti. 32
Hence, while we agree with petitioners that the extraordinary diligence statutorily required to be
observed by the carrier instantaneously commences upon delivery of the goods thereto, for such duty to
commence there must in fact have been delivery of the cargo subject of the contract of carriage. Only
when such fact of delivery has been unequivocally established can the liability for loss, destruction or
deterioration of goods in the custody of the carrier, absent the excepting causes under Article 1734,
attach and the presumption of fault of the carrier under Article 1735 be invoked.
As already demonstrated, the facts, in the case at bar belie the averment that there was delivery of the
cargo to the carrier on October 26, 1976. Rather, as earlier explained, the body intended to be shipped
as agreed upon was, really placed in the possession and control of PAL on October 28, 1976 and it was
from that date that private respondents became responsible for the agreed cargo under their
undertakings in PAL Airway Bill No. 07901180454. Consequently, for the switching of caskets prior
thereto which was not caused by them., and subsequent events caused thereby, private respondents
cannot be held liable. chanrobles.com.ph : virtual law library
Petitioners, proceeding on the premise that there was delivery of the cargo to private respondents on
October 26, 1976 and that the latter’s extraordinary responsibility had by then become operative, insist
on foisting the blame on private respondents for the switching of the two caskets which occurred on
October 27, 1976. It is argued that since there is no clear evidence establishing the fault of Continental
Mortuary Air Services (CMAS) for the mixup, private respondents are presumably negligent pursuant to
Article 1735 of the Civil Code and, for failure to rebut such presumption, they must necessarily be held
liable; or, assuming that CMAS was at fault, the same does not absolve private respondents of liability
because whoever brought the cargo to the airport, or loaded it on the plane did so as agent of private
respondents.
This contention is without merit. As pithily explained by the Court of Appeals: jgc:chanrobles.com.ph
"The airway bill expressly provides that ‘Carrier certifies goods described below were received for
carriage’, and said cargo was ‘casketed human remains of Crispina Saludo’, with ‘Maria Saludo as
Consignee: Pomierski F.H. as Shipper;: Air Care International as carrier’s agent.’ On the face of the said
airway bill, the specific flight numbers, specific routes of shipment and dates of departure and arrival
were typewritten, to wit: Chicago TWA Flight 131/27 to San Francisco and from San Francisco by PAL
107 on October 27, 1976 to Philippines and to Cebu via PAL Flight 149 on October 29, 1976. The airway
bill also contains the following typewritten words, as follows: ‘all documents have been examined (sic).
Human remains of Crispina Saludo. Please return back (sic) first available flight to SFO.
"But, as it turned out and was discovered later the casketed human remains which was issued PAL
Airway Bill #0791180454 was not the remains of Crispina Saludo, the casket containing her remains
having been shipped to Mexico City.
"However, it should be noted that, Pomierski F.H., the shipper of Mrs. Saludo’s remains, hired
Continental Mortuary Services (hereafter referred to as C.M.A.S.), which is engaged in the business of
transporting and forwarding human remains. Thus, C.M.A.S. made all the necessary arrangements —
such as flights, transfers, etc. — for shipment of the remains of Crispina Saludo.
‘The remains were taken on October 26th, 1976, to C.M.A.S. at the airport. These people made al l the
necessary arrangements, such as flights, transfers, etc. This is a national service used by undertakers
throughout the nation. They furnished the air pouch which the casket is enclosed in, and they see that
the remains are taken to the proper air freight terminal. I was very surprised when Miss Saludo called me
to say that the remains were not at the west coast terminal. I immediately called C.M.A.S. They called
me back in a matter of ten minutes to inform me that the remains were on a plane to Mexico City. The
man said that there were two bodies at the terminal, and somehow they were switched. . . (Exh.
6’TWA’, which is the memo or incident report enclosed in the stationery of Walter Pomierski & Sons
Ltd.)’
"Consequently, when the cargo was received from C.M.A.S. at the Chicago airport terminal for shipment,
which was supposed to contain the remains of Crispina Saludo, Air Care International and/or TWA, had
no way of determining its actual contents, since the casket was hermetically sealed by the Philippine
ViceConsul in Chicago and in an air pouch of C.M.A.S., to the effect that Air Care International and/or
TWA had to rely on the information furnished by the shipper regarding the cargo’s content. Neither could
Air Care International and/or TWA open the casket for further verification, since they were not only
without authority to do so, but even prohibited.
"Thus, under said circumstances, no fault and/or negligence can be attributed to PAL (even if Air Care
International should be considered as an agent of PAL) and/or TWA, the entire fault or negligence being
exclusively with C.M.A.S." 33 (Emphasis supplied.)
It can correctly and logically be concluded, therefore that the switching occurred or, more accurately,
was discovered on October 27, 1976; and based on the above findings of the Court of Appeals, it
happened while the cargo was still with CMAS, well before the same was placed in the custody of private
respondents.
Thus, while the Air Cargo Transfer Manifest of TWA of October 27, 1976 34 was signed by Garry Marcial
of PAL at 1400H, or 2:00 P.M., on the same date, thereby indicating acknowledgment by PAL of the
transfer to them by TWA of what was in truth the erroneous cargo, said misshipped cargo was in fact
withdrawn by CMAS from PAL as shown by the notation on another copy of said manifest 35 stating
"Received by CMAS — Due to switch in Chicago 10/271805H," the authenticity of which was never
challenged. This shows that said misshipped cargo was in fact withdrawn by CMAS from PAL and the
correct shipment containing the body of Crispina Saludo was received by PAL only on October 28, 1976,
at 1945H, or 7:45 P.M., per American Airlines Interline Freight Transfer Manifest No. AA204312. 36
Witness the deposition of TWA’s ramp serviceman, Michael Giosso, on this matter: jgc:chanrobles.com.ph
"ATTY. JUAN COLLAS, JR.: chanrob1es virtual 1aw library
On that date, do (sic) you have occasion to handle or deal with the transfer of cargo from TWA Flight No.
603 to PAL San Francisco?
MICHAEL GIOSSO:
chanrob1es virtual 1aw library
Yes, I did.
ATTY. JUAN COLLAS, JR.: chanrob1es virtual 1aw library
What was your participation with the transfer of the cargo?
MICHAEL GIOSSO:
chanrob1es virtual 1aw library
I manifested the freight on a transfer manifest and physically moved it to PAL and concluded the transfer
by signing it off.
ATTY. JUAN COLLAS, JR.: chanrob1es virtual 1aw library
You brought it there yourself?
MICHAEL GIOSSO:
chanrob1es virtual 1aw library
Yes sir.
ATTY. JUAN COLLAS, JR.: chanrob1es virtual 1aw library
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Do you have anything to show that PAL received the cargo from TWA on October 27, 1976?
MICHAEL GIOSSO: chanrob1es virtual 1aw library
Yes, I do.(Witness presenting a document)
ATTY. JUAN COLLAS, JR.: chanrob1es virtual 1aw library
For purposes of clarity, Exhibit I is designated as Exhibit ITWA.
x x x
ATTY. JUAN COLLAS, JR.: chanrob1es virtual 1aw library
This Exhibit ITWA, could you tell what it is, what it shows?
MICHAEL GIOSSO: chanrob1es virtual 1aw library
It shows transfer of manifest on 102776 to PAL at 1400 and verified with two signatures as it
completed the transfer.
ATTY. JUAN COLLAS, JR.: chanrob1es virtual 1aw library
Very good. Who was the PAL employee who received the cargo?
MICHAEL GIOSSO: chanrob1es virtual 1aw library
The name is Garry Marcial." 37
The deposition of Alberto A. Lim. PAL’s cargo supervisor at San Francisco, as deponentwitness for PAL,
makes this further clarification: jgc:chanrobles.com.ph
"ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
You mentioned Airway Bill, Mr. Lim. I am showing to you a PAL Airway Bill Number 01180454 which for
purposes of evidence, I would like to request that the same be marked as evidence Exhibit I for PAL.
x x x
In what circumstances did you encounter Exhibit IPAL?
ALBERTO A. LIM:
chanrob1es virtual 1aw library
If I recall correctly, I was queried by Manila, our Manila office with regard to a certain complaint that a
consignee filed that this shipment did not arrive on the day that the consignee expects the shipment to
arrive.
ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
Okay. Now, upon receipt of that query from your Manila office, did you conduct any investigation to
pinpoint the possible causes of mishandling?
ALBERTO A. LIM:
chanrob1es virtual 1aw library
Yes.
x x x
ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
What is the result of your investigation?
ALBERTO A. LIM:
chanrob1es virtual 1aw library
In the course of my investigation, I found that we received the body on October 28, 1976, from American
Airlines.
ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
What body are you referring to?
x x x
ALBERTO A. LIM:
chanrob1es virtual 1aw library
The remains of Mrs. Cristina (sic) Saludo.
ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
Is that the same body mentioned in this Airway Bill?
ALBERTO A. LIM:
chanrob1es virtual 1aw library
Yes.
ATTY. CESAR P MANALAYSAY: chanrob1es virtual 1aw library
What time did you receive said body on October 28, 1976?
ALBERTO A. LIM:
chanrob1es virtual 1aw library
If I recall correctly, approximately 7:45 of October 28, 1976.
ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
Do you have any proof with you to back the statement?
ALBERTO A. LIM:
chanrob1es virtual 1aw library
Yes. We have on our records a Transfer Manifest from American Airlines Number 204312 showing that we
received a human remains shipment belong to Mrs. Cristina (sic) Saludo or the human remains of Mrs.
Cristina (sic) Saludo.
ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
At this juncture, may I request that the Transfer Manifest referred to by the witness be marked as an
evidence as Exhibit IIPAL.
x x x
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Mr. Lim, yesterday your codefendant TWA presented as their Exhibit I evidence tending to show that on
October 27, 1976 at about 2:00 in the afternoon they delivered to you a cargo bearing human remains.
Could you go over this Exhibit I and please give us your comments as to that exhibit?
ATTY. ALBERTO C. MENDOZA: chanrob1es virtual 1aw library
That is a vague question. I would rather request that counsel propound specific questions rather than
asking for comments on Exhibit ITWA.
ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
In that case, I will reform my question. Could you tell us whether TWA in fact delivered to you the human
remains as indicated in that Transfer Manifest?
ALBERTO A. LIM: chanrob1es virtual 1aw library
Yes, they did.
ATTY. CESAR P. MANALAYSAY: chanrob1es virtual 1aw library
I noticed that the Transfer Manifest of TWA marked as Exhibit ITWA bears the same numbers or the
same entries as the Airway Bill marked as Exhibit IA PAL tending to show that this is the human remains
of Mrs. Cristina (sic) Saludo. Could you tell us whether this is true?
ALBERTO A. LIM: chanrob1es virtual 1aw library
It is true that we received human remains shipment from TWA as indicated on this Transfer Manifest. But
in the course of investigation, it was found out that the human remains transferred to us is not the
remains of Mrs. Cristina (sic) Saludo which is the reason why we did not board it on our flight." 38
Petitioners consider TWA’s statement that it had to rely on the information furnished by the shipper" a
lame, excuse and that its failure to prove that its personnel verified and identified the contents of the
casket before loading the same constituted negligence on the part of TWA. 39
We uphold the favorable consideration by the Court of Appeals of the following findings of the trial
court:
jgc:chanrobles.com.ph
"It was not (to) TWA, but to C.M.A.S. that the Pomierski & Son Funeral Home delivered the casket
containing the remains of Crispina Saludo. TWA would have no knowledge therefore that the remains of
Crispina Saludo were not the ones inside the casket that was being presented to it for shipment. TWA
would have to rely on the representations of C.M.A.S. The casket was hermetically sealed and also sealed
by the Philippine Vice Consul in Chicago. TWA or any airline for that matter would not have opened such
sealed casket just for the purpose of ascertaining whose body was inside and to make sure that the
remains inside were those of the particular person indicated to be by C.M.A.S. TWA had to accept
whatever information was being furnished by the shipper or by the one presenting the casket for
shipment.And so as a matter of fact, TWA carried to San Francisco and transferred to defendant PAL a
shipment covered by or under PAL Airway Bill No. 079ORD01180454, the airway bill for the shipment of
the casketed remains of Crispina Saludo. Only, it turned out later, while the casket was already with PAL,
that what was inside the casket was not the body of Crispina Saludo so much so that it had to be
withdrawn by C.M.A.S. from PAL. The body of Crispina Saludo had been shipped to Mexico. The casket
containing the remains of Crispina Saludo was transshipped from Mexico and arrived in San Francisco the
following day on board American Airlines. It was immediately loaded by PAL on its flight for Manila.
"The foregoing points at C.M.A.S., not defendant TWA much less defendant PAL, as the ONE responsible
for the switching or mixup of the two bodies at the Chicago Airport terminal, and started a chain
reaction of the misshipment of the body of Crispina Saludo and a oneday delay in the delivery thereof to
its destination. 40
Verily, no amount of inspection by respondent airline companies could have guarded against the
switching that had already taken place. Or, granting that they could have opened the casket to inspect its
contents, private respondents had no means of ascertaining whether the body therein contained was
indeed that of Crispina Saludo except, possibly, if the body was that of a male person and such fact was
visually apparent upon opening the casket. However, to repeat, private respondents had no authority to
unseal and open the same nor did they have any reason or justification to resort thereto.
It is the right of the carrier to require good faith on the part of those persons who deliver goods to be
carried, ar enter into contracts with it, and inasmuch as the freight may depend on the value of the
article to be carried, the carrier ordinarily has the right to inquire as to its value. Ordinarily, too, it is the
duty of the carrier to make inquiry as to the general nature of the articles shipped and of their value
before it consents to carry them; and its failure to do so cannot defeat the shipper’s right to recovery of
the full value of the package if lost, in the absence of showing of fraud or deceit on the part of the
shipper. In the absence of more definite information, the carrier has the right to accept shipper’s marks
as to the contents of the package offered for transportation and is not bound to inquire particularly about
them in order to take advantage of a false classification and where a shipper expressly represents the
contents of a package to be of a designated character, it is not the duty of the carrier to ask for a
repetition of the statement nor disbelieve it and open the box and see for itself. 41 However, where a
common carrier has reasonable ground to suspect that the offered goods are of a dangerous or illegal
character, the carrier has the right to know the character of such goods and to insist on an inspection, if
reasonable and practical under the circumstances, as a condition of receiving and transporting such
goods. 42
It can safely be said then that a common carrier is entitled to fair representation of the nature and value
of the goods to be carried, with the concomitant right to rely thereon, and further noting at this juncture
that a carrier has no obligation to inquire into the correctness or sufficiency of such information. 43 The
consequent duty to conduct an inspection thereof arises in the event that there should be reason to
doubt the veracity of such representations. Therefore, to be subjected to unusual search, other than the
routinary inspection procedure customarily undertaken, there must exist proof that would justify cause
for apprehension that the baggage is dangerous as to warrant exhaustive inspection, or even refusal to
accept carriage of the same; and it is the failure of the carrier to act accordingly in the face of such proof
that constitutes the basis of the common carrier’s liability. 44
In the case at bar, private respondents had no reason whatsoever to doubt the truth of the shipper’s
representations. The airway bill expressly providing that "carrier certifies goods received below were
received for carriage," and that the cargo contained "casketed human remains of Crispina Saludo," was
issued on the basis of such representations. The reliance thereon by private respondents was reasonable
and, for so doing, they cannot be said to have acted negligently. Likewise, no evidence was adduced to
suggest even an iota of suspicion that the cargo presented for transportation was anything other than
what it was declared to be, as would require more than routine inspection or call for the carrier to insist
that the same be opened for scrutiny of its contents per declaration.
Neither can private respondents he held accountable on the basis of petitioners’ preposterous proposition
that whoever brought the cargo to the airport or loaded it on the airplane did so as agent of private
respondents, so that even if CMAS whose services were engaged for the transit arrangements for the
remains was indeed at fault, the liability therefor would supposedly still be attributable to private
respondents.
While we agree that the actual participation of CMAS has been sufficiently and correctly established, to
hold that it acted as agent for private respondents would be both an inaccurate appraisal and an
unwarranted categorization of the legal position it held in the entire transaction.
It bears repeating that CMAS was hired to handle all the necessary shipping arrangements for the
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transportation of the human remains of Crispina Saludo to Manila. Hence, it was to CMAS that the
Pomierski & Son Funeral Home, as shipper, brought the remains of petitioners’ mother for shipment, with
Maria Saludo as consignee. Thereafter, CMAS booked the shipment with PAL through the carrier’s agent,
Air Care International. 45 With its aforestated functions, CMAS may accordingly be classified as a
forwarder which, by accepted commercial practice, is regarded as an agent of the shipper and not of the
carrier. As such, it merely contracts for the transportation of goods by carriers, and has no interest in the
freight but receives compensation from the shipper as his agent. 46
At this point, it can be categorically stated that, as culled from the findings of both the trial court and
appellate courts, the entire chain of events which culminated in the present controversy was not due to
the fault or negligence of private respondents. Rather, the facts of the case would point to CMAS as the
culprit. Equally telling of the more likely possibility of CMAS’ liability is petitioners’ letter to and
demanding an explanation from CMAS regarding the statement of private respondents laying the blame
on CMAS for the incident, portions of which, reading as follows: jgc:chanrobles.com.ph
". . . we were informed that the unfortunate a mixup occurred due to your negligence. . .
"Likewise, the two airlines pinpoint the responsibility upon your agents. Evidence were presented to
prove that allegation.
"On the face of this overwhelming evidence we could and should have filed a case against you. . ." 47
clearly allude to CMAS as the party at fault. This is tantamount to an admission by petitioners that they
consider private respondents without fault, or is at the very least indicative of the fact that petitioners
entertained serious doubts as to whether herein private respondents were responsible for the unfortunate
turn of events.
Undeniably, petitioners’ grief over the death of their mother was aggravated by the unnecessary
inconvenience and anxiety that attended their efforts to bring her body home for a decent burial. This is
unfortunate and calls for sincere commiseration with petitioners. But, much as we would like to give
them consolation for their undeserved distress, we are barred by the inequity of allowing recovery of the
damages prayed for by them at the expense of private respondents whose fault or negligence in the very
acts imputed to them has not been convincingly and legally demonstrated.
Neither are we prepared to delve into, much less definitively rule on, the possible liability of CMAS as the
evaluation and adjudication of the same is not what is presently at issue here and is best deferred to
another time and addressed to another forum.
II. Petitioners further fault the Court of Appeals for ruling that there was no contractual breach on the
part of private respondents as would entitle petitioners to damages.
Petitioners hold that respondent TWA, by agreeing to transport the remains of petitioners’ mother on its
Flight 131 from Chicago to San Francisco on October 27, 1976, made itself a party to the contract of
carriage and, therefore, was bound by the terms of the issued airway bill. When TWA undertook to ship
the remains on its Flight 603, ten hours earlier than scheduled, it supposedly violated the express
agreement embodied in the airway bill. It was allegedly this breach of obligation which compounded, if
not directly caused, the switching of the caskets.
In addition, petitioners maintain that since there is no evidence as to who placed the body on board
Flight 603, or that CMAS actually put the cargo on that flight, or that the two caskets at the Chicago
airport were to be transported by the same airline, or that they came from the same funeral home, or
that both caskets were received by CMAS, then the employees or agents of TWA presumably caused the
mixup by loading the wrong casket on the plane. For said error, they contend, TWA must necessarily be
presumed negligent and this presumption of negligence stands undisturbed unless rebutting evidence is
presented to show that the switching or misdelivery was due to circumstances that would exempt the
carrier from liability.
Private respondent TWA professes otherwise. Having duly delivered or transferred the cargo to its co
respondent PAL on October 27, 1976 at 2:00 P.M., as supported by the TWA Transfer Manifest, TWA
faithfully complied with its obligation under the airway bill. Said faithful compliance was not affected by
the fact that the remains were shipped on an earlier flight as there was no fixed time for completion of
carriage stipulated on. Moreover, the carrier did not undertake to carry the cargo aboard any specified
aircraft, in view of the condition on the back of the airway bill which provides: jgc:chanrobles.com.ph
"CONDITIONS OF CONTRACT
x x x
"It is agreed that no time is fixed for the completion of carriage hereunder and that Carrier may without
notice substitute alternate carriers or aircraft. Carrier assumes no obligation to carry the goods by any
specified aircraft or over any particular route or routes or to make connection at any point according to
any particular schedule, and Carrier is hereby authorized to select, or deviate from the route or routes of
shipment, notwithstanding that the same may be stated on the face hereof. The shipper guarantees
payment of all charges and advances." 48
Hence, when respondent TWA shipped the body on an earlier flight and on a different aircraft, it was
acting well within its rights. We find this argument tenable.
The contention that there was contractual breach on the part of private respondents is founded on the
postulation that there was ambiguity in the terms of the airway bill, hence petitioners’ insistence on the
application of the rules on interpretation of contracts and documents. We find no such ambiguity. The
terms are clear enough as to preclude the necessity to probe beyond the apparent intendment of the
contractual provisions.
The hornbook rule on interpretation of contracts consecrates the primacy of the intention of the parties,
the same having the force of law between them. When the terms of the agreement are clear and explicit,
that they do not justify an attempt to read into any alleged intention of the parties, the terms are to be
understood literally just as they appear on the face of the contract. 49 The various stipulations of a
contract shall be interpreted together 50 and such a construction is to be adopted as will give effect to all
provisions thereof. 51 A contract cannot be construed by parts, but its clauses should be interpreted in
relation to one another. The whole contract must be interpreted or read together in order to arrive at its
true meaning. Certain stipulations cannot be segregated and then made to control; neither do particular
words or phrases necessarily determine the character of a contract. The legal effect of the contract is not
to be determined alone by any particular provision disconnected from all others, but in the ruling
intention of the parties as gathered from all the language they have used and from their
contemporaneous and subsequent acts. 52
Turning to the terms of the contract at hand, as presented by PAL Air Waybill No. 07901180454,
respondent court approvingly quoted the trial court’s disquisition on the aforequoted condition appearing
on the reverse side of the airway bill and its disposition of this particular assigned error: jgc:chanrobles.com.ph
"The foregoing stipulation fully answers plaintiffs’ objections to the oneday delay and the shipping of the
remains in TWA Flight 603 instead of TWA Flight 131. Under the stipulation, parties agreed that no time
was fixed to complete the contract of carriage and that the carrier may, without notice, substitute
alternate carriers or aircraft. The carrier did not assume the obligation to carry the shipment on any
specified aircraft.
x x x
"Furthermore, contrary to the claim of plaintiffsappellants, the conditions of the Air Waybill are big
enough to be read and noticed. Also, the mere fact that the cargo in question was shipped in TWA Flight
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603, a flight earlier on the same day than TWA Flight 131, did not in any way cause or add to the one
day delay complained of and/or the switching or mixup of the bodies." 53
Indubitably, that private respondent can use substitute aircraft even without notice and without the
assumption of any obligation whatsoever to carry the goods on any specified aircraft is clearly sanctioned
by the contract of carriage as specifically provided for under the conditions thereof.
Petitioners’ invocation of the interpretative rule in the Rules of Court that written words control printed
words in documents, 54 to bolster their assertion that the typewritten provisions regarding the routing
and flight schedule prevail over the printed conditions, is tenuous. Said rule may be considered only
when there is inconsistency between the written and printed words of the contract.
As previously stated, we find no ambiguity in,the contract subject of this case that would call for the
application of said rule. In any event, the contract has provided for such a situation by explicitly stating
that the above condition remains effective "notwithstanding that the same (fixed time for completion of
carriage, specified aircraft, or any particular route or schedule) may be stated on the face hereof." While
petitioners hinge private respondents’ culpability on the fact that the carrier "certifies goods described
below were received for carriage," they may have overlooked that the statement on the face of the
airway bill properly and completely reads —
"Carrier certifies goods described below were received for carriage subject to the Conditions on the
reverse hereof the goods then being in apparent good order and condition except as noted hereon." 55
(Emphasis supplied.)
Private respondents further aptly observe that the carrier’s certification regarding receipt of the goods for
carriage "was of a Waybill, including Condition No. 5 — and thus if plaintiffsappellants had recognized
the former, then with more reason they were aware of the latter." 56
In the same vein, it would also be incorrect to accede to the suggestion of petitioners that the
typewritten specifications of the flight, routes and dates of departures and arrivals on the face of the
airway bill constitute a special contract which modifies the printed conditions at the back thereof. We
reiterate that typewritten provisions of the contract are to be read and understood subject to and in view
of the printed conditions, fully reconciling and giving effect to the manifest intention of the parties to the
agreement. cralawnad
The oftrepeated rule regarding a carrier’s liability for delay is that in the absence of a special contract, a
carrier is not an insurer against delay in transportation of goods. When a common carrier undertakes to
convey goods, the law implies a contract that they shall be delivered at destination within a reasonable
time, in the absence of any agreement as to the time of delivery. 57 But where a carrier has made an
express contract to transport and deliver property within a specified time, it is bound to fulfill its contract
and is liable for any delay, no matter from what cause it may have arisen. 58 This result logically follows
from the wellsettled rule that where the law creates a duty or charge, and the party is disabled from
performing it without any default in himself, and has no remedy over, then the law will excuse him, but
where the party by his own contract creates a duty or charge upon himself, he is bound to make it good
notwithstanding any accident or delay by inevitable necessity because he might have provided against it
by contract. Whether or not there has been such an undertaking on the part of the carrier is to be
determined from the circumstances surrounding the case and by application of the ordinary rules for the
interpretation of contracts. 59
Echoing the findings of the trial court, the respondent court correctly declared that —
"In a similar case of delayed delivery of air cargo under a very similar stipulation contained in the airway
bill which reads: ‘The carrier does not obligate itself to carry the goods by any specified aircraft or on a
specified time. Said carrier being hereby authorized to deviate from the route of the shipment without
any liability therefore’, our Supreme Court ruled that common carriers are not obligated by law to carry
and to deliver merchandise, and persons are not vested with the right to prompt delivery, unless such
common carriers previously assume the obligation. Said rights and obligations are created by a specific
contract entered into by the parties (Mendoza v. PAL, 90 Phil. 836).
"There is no showing by plaintiffs that such a special or specific contract had been entered into between
them and the defendant airline companies.
"And this special contract for prompt delivery should call the attention of the carrier to the circumstances
surrounding the case and the approximate amount of damages to be suffered in case of delay (See
Mendoza v. PAL, supra). There was no such contract entered into in the instant case." 60
Also, the theory of petitioners that the specification of the flights and dates of departures and arrivals
constitute a special contract that could prevail over the printed stipulations at the back of the airway bill
is vacuous. To countenance such a postulate would unduly burden the common carrier for that would
have the effect of unilaterally transforming every single bill of lading or trip ticket into a special contract
by the simple expedient of filling it up with the particulars of the flight, trip or voyage, and thereby
imposing upon the carrier duties and/or obligations which it may not have been ready or willing to
assume had it been timely advised thereof.
Neither does the fact that the challenged condition No. 5 was printed at the back of the airway bill
militate against its binding effect on petitioners as parties to the contract, for there were sufficient
indications on the face of said bill that would alert them to the presence of such additional condition to
put them on their guard. Ordinary prudence on the part of any person entering or contemplating to enter
into a contract would prompt even a cursory examination of any such conditions, terms and/or
stipulations.
There is a holding in most jurisdictions that the acceptance of a bill of lading without dissent raises a
presumption that all terms therein were brought to the knowledge of the shipper and agreed to by him,
and in the absence of fraud or mistake, he is estopped from thereafter denying that he assented to such
terms. This rule applies with particular force where a shipper accepts a bill of lading with full knowledge
of its contents, and acceptance, under such circumstances makes it a binding contract. In order that any
presumption of assent to a stipulation in a bill of lading limiting the liability of a carrier may arise, it must
appear that the clause containing this exemption from liability plainly formed a part of the contract
contained in the bill of lading. A stipulation printed on the back of a receipt or bill of lading or on papers
attached to such receipt will be quite as effective as if printed on its face, if it is shown that the consignor
knew of its terms. Thus, where a shipper accepts a receipt which states that its conditions are to be
found on the back, such receipt comes within the general rule, and the shipper is held to have accepted
and to be bound by the conditions there to be found. 61
Granting arguendo that Condition No. 5 partakes of the nature of a contract of adhesion and as such
must be construed strictly against the party who drafted the same or gave rise to any ambiguity therein,
it should be borne in mind that a contract of adhesion may be struck down as void and unenforceable, for
being subversive of public policy, only when the weaker party is imposed upon in dealing with the
dominant bargaining party and is reduced to the alternative of taking it or leaving it, completely deprived
of the opportunity to bargain on equal footing. 62 However, Ong Yiu v. Court of Appeals, Et. Al. 63
instructs us that contracts of adhesion are not entirely prohibited. The one who adheres to the contract is
in reality free to reject it entirely; if he adheres, he gives his consent. Accordingly, Petitioners, far from
being the weaker party in this situation, duly signified their presumed assent to all terms of the contract
through their acceptance of the airway bill and are consequently bound thereby. It cannot be gainsaid
that petitioners were not without several choices as to carriers in Chicago with its numerous airways and
airlines servicing the same.
chanrobles law library : red
We wish to allay petitioners’ apprehension that Condition No. 5 of the airway bill is productive of mischief
as it would validate delay in delivery, sanction violations of contractual obligations with impunity or put a
premium on breaches of contract.
Just because we have said that Condition No. 5 of the airway bill is binding upon the parties to and fully
operative in this transaction, it does not mean, and let this serve as fair warning to respondent carriers,
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that they can at all times whimsically seek refuge from liability in the exculpatory sanctuary of said
Condition No. 5 or arbitrarily vary routes, flights and schedules to the prejudice of their customers. This
condition only serves to insulate the carrier from liability in those instances when changes in routes,
flights and schedules are clearly justified by the peculiar circumstances of a particular case, or by general
transportation practices, customs and usages, or by contingencies or emergencies in aviation such as
weather turbulence, mechanical failure, requirements of national security and the like. And even as it is
conceded that specific routing and other navigational arrangements for a trip, flight or voyage, or
variations therein, generally lie within the discretion of the carrier in the absence of specific routing
instructions or directions by the shipper, it is plainly incumbent upon the carrier to exercise its rights with
due deference to the rights, interests and convenience of its customers.
A common carrier undertaking to transport property has the implicit duty to carry and deliver it within a
reasonable time, absent any particular stipulation regarding time of delivery, and to guard against delay.
In case of any unreasonable delay, the carrier shall be liable for damages immediately and proximately
resulting from such neglect of duty. 64 As found by the trial court, the delay in the delivery of the
remains of Crispina Saludo, undeniable and regrettable as it was, cannot be attributed to the fault,
negligence or malice of private respondents, 65 a conclusion concurred in by respondent court and which
we are not inclined to disturb.
We are further convinced that when TWA opted to ship the remains of Crispina Saludo on an earlier
flight, it did so in the exercise of sound discretion and with reasonable prudence, as shown by the
explanation of its counsel in his letter of February 19, 1977 in response to petitioners’ demand letter: jgc:chanrobles.com.ph
"Investigation of TWA’s handling of this matter reveals that although the shipment was scheduled on
TWA Flight 131 of October 27, 1976, it was actually boarded on TWA Flight 603 of the same day,
approximately 10 hours earlier, in order to assure that the shipment would be received in San Francisco
in sufficient time for transfer to PAL. This transfer was effected in San Francisco at 2:00 P.M. on October
27, 1976. 66
Precisely, private respondent TWA knew of the urgency of the shipment by reason of this notation on the
lower portion of the airway bill: "All documents have been certified. Human remains of Cristina (sic)
Saludo. Please return bag first available flight to SFO." Accordingly, TWA took it upon itself to carry the
remains of Crispina Saludo on an earlier flight, which we emphasize it could do under the terms of the
airway bill, to make sure that there would be enough time for loading said remains on the transfer flight
on board PAL.
III. Petitioners challenge the validity of respondent court’s finding that private respondents are not liable
for tort on account of the humiliating, arrogant and indifferent acts of their officers and personnel. They
posit that since their mother’s remains were transported ten hours earlier than originally scheduled,
there was no reason for private respondents’ personnel to disclaim knowledge of the arrival or
whereabouts of the same other than their sheer arrogance, indifference and extreme insensitivity to the
feelings of petitioners. Moreover, being passengers and not merely consignors of goods, petitioners had
the right to be treated with courtesy, respect, kindness and due consideration.
In riposte, TWA claims that its employees have always dealt politely with all clients, customers and the
public in general. PAL, on the other hand, declares that in the performance of its obligation to the riding
public, other customers and clients, it has always acted with justice, honesty, courtesy and good faith.
Respondent appellate court found merit in and reproduced the trial court’s refutation of this assigned
error:
jgc:chanrobles.com.ph
"About the only evidence of plaintiffs that may have reference to the manner with which the personnel of
defendants treated the two plaintiffs at the San Francisco Airport are the following pertinent portions of
Maria Saludo’s testimony:
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‘Q When you arrived there, what did you do, if any?
A I immediately went to the TWA counter and I inquired about whether my mother was there or if they
knew anything about it.
Q What was the answer?
A They said they do not know. So, we waited.
Q About what time was that when you reached San Francisco from Chicago?
A I think 5 o’clock. Somewhere around that in the afternoon.
Q You made inquiry it was immediately thereafter?
A Right after we got off the plane.
Q Up to what time did you stay in the airport to wait until the TWA people could tell you the
whereabouts?
A Sorry, Sir, but the TWA did not tell us anything We stayed there until about 9 o’clock. They have not
heard anything about it. They did not say anything.
Q Do you want to convey to the Court that from 5 up to 9 o’clock in the evening you yourself went back
to the TWA and they could not tell you where the remains of your mother were?
A Yes sir.
Q And after nine o’clock, what did you do?
A I told my brother my Mom was supposed to be on the Philippine Airlines flight.’Why don’t we check
with PAL instead to see if she was there?’ We tried to comfort each other. I told him anyway that was a
shortest flight from Chicago to California. We will be with our mother on this longer flight. So, we
checked with the PAL.
Q What did you find?
A We learned, Yes, my Mom would be on the flight.
Q Who was that brother?
A Saturnino Saludo.
Q And did you find what was your flight from San Francisco to the Philippines?
A I do not know the number. It was the evening flight of the Philippine Airline(s) from San Francisco to
Manila.
Q You took that flight with your mother?
A We were scheduled to, Sir.
Q Now, you could not locate the remains of your mother in San Francisco could you tell us what did you
feel?
A After we were told that my mother was not there?
Q After you learned that your mother could not fly with you from Chicago to California?
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A Well, I was very upset. Of course, I wanted the confirmation that my mother was in the West Coast.
The flight was about 5 hours from Chicago to California. We waited anxiously all that time on the plane. I
wanted to be assured about my mother’s remains. But there was nothing and we could not get any
assurance from anyone about it.
Q Your feeling when you reached San Francisco and you could not find out from the TWA the
whereabouts of the remains, what did you feel?
A Something nobody would be able to describe unless he experiences it himself. It is a kind of panic. I
think it’s a feeling you are about to go crazy. It is something do not want to live through again.’ (Inting,
t.s.n., Aug. 9, 1983, pp. 1418).
"The foregoing does not show any humiliating or arrogant manner with which the personnel of both
defendants treated the two plaintiffs. Even their alleged indifference is not clearly established. The initial
answer of the TWA personnel at the counter that they did not know anything about the remains, and
later, their answer that they have not heard anything about the remains, and the inability of the TWA
counter personnel to inform the two plaintiffs of the whereabouts of the remains, cannot be said to be
total or complete indifference to the said plaintiffs. At any rate, it is any rude or discourteous conduct,
malfeasance or neglect, the use of abusive or insulting language calculated to humiliate and shame
passenger or bad faith by or on the part of the employees of the carrier that gives the passenger an
action for damages against the carrier (Zulueta v. Pan American World Airways, 43 SCRA 397; Air France
v. Carrascoso, Et Al., 18 SCRA 155; Lopez, Et. Al. v. Pan American World Airways, 16 SCRA 431;
Northwest Airlines, Inc. v. Cuenca, 14 SCRA 1063), and none of the above is obtaining in the instant
case." 67
We stand by respondent court’s findings on this point, but only to the extent where it holds that the
manner in which private respondent TWA’s employees dealt with petitioners was not grossly humiliating,
arrogant or indifferent as would assume the proportions of malice or bad faith and lay the basis for an
award of the damages claimed. It must however, be pointed out that the lamentable actuations of
respondent TWA’s employees leave much to be desired, particularly so in the face of petitioners’ grief
over the death of their mother, exacerbated by the tension and anxiety wrought by the impasse and
confusion over the failure to ascertain over an appreciable period of time what happened to her
remains.
chanrobles lawlibrary : rednad
Airline companies are hereby sternly admonished that it is their duty not only to cursorily instruct but to
strictly require their personnel to be more accommodating towards customers, passengers and the
general public. After all, common carriers such as airline companies are in the business of rendering
public service, which is the primary reason for their enfranchisement and recognition in our law. Because
the passengers in a contract of carriage do not contract merely for transportation, they have a right to be
treated with kindness, respect, courtesy and consideration. 68 A contract to transport passengers is quite
different in kind and degree from any other contractual relation, and generates a relation attended with
public duty. The operation of a common carrier is a business affected with public interest and must be
directed to serve the comfort and convenience of passengers. 69 Passengers are human beings with
human feelings and emotions; they should not be treated as mere numbers or statistics for revenue.
The records reveal that petitioners, particularly Maria and Saturnino Saludo, agonized for nearly five
hours, over the possibility of losing their mother’s mortal remains, unattended to and without any
assurance from the employees of TWA that they were doing anything about the situation. This is not to
say that petitioners were to be regaled with extra special attention. They were, however, entitled to the
understanding and humane consideration called for by and commensurate with the extraordinary
diligence required of common carriers, and not the cold insensitivity to their predicament. It is hard to
believe that the airline’s counter personnel were totally helpless about the situation. Common Sense
could and should have dictated that they exert a little extra effort in making a more extensive inquiry, by
themselves or through their superiors, rather than just shrug off the problem with a callous and uncaring
remark that they had no knowledge about it. With all the modern communications equipment readily
available to them, which could have easily facilitated said inquiry and which are used as a matter of
course by airline companies in their daily operations, their apathetic stance while not legally
reprehensible is morally deplorable.
Losing a loved one, especially one’s parent, is a painful experience. Our culture accords the tenderest
human feelings toward and in reverence to the dead. That the remains of the deceased were
subsequently delivered, albeit belatedly, and eventually laid in her final resting place is of little
consolation. The imperviousness displayed by the airline’s personnel, even for just that fraction of time,
was especially condemnable particularly in the hour of bereavement of the family of Crispina Saludo,
intensified by anguish due to the uncertainty of the whereabouts of their mother’s remains. Hence, it is
quite apparent that private respondents’ personnel were remiss in the observance of that genuine human
concern and professional attentiveness required and expected of them.
The foregoing observations, however, do not appear to be applicable or imputable to respondent PAL or
its employees. No attribution of discourtesy or indifference has been made against PAL by petitioners
and, in fact, petitioner Maria Saludo testified that it was to PAL that they repaired after failing to receive
proper attention from TWA. It was from PAL that they received confirmation that their mother’s remains
would be on the same flight to Manila with them.
We find the following substantiation on this particular episode from the deposition of Alberto A. Lim,
PAL’s cargo supervisor earlier adverted to, regarding their investigation of and the action taken on
learning of petitioner’s problem: jgc:chanrobles.com.ph
"ATTY. ALBERTO C. MENDOZA: chanrob1es virtual 1aw library
Yes.
Mr. Lim, what exactly was your procedure adopted in your so called investigation?
ALBERTO A. LIM: chanrob1es virtual 1aw library
I called the lead agent on duty at that time and requested for a copy of airway bill, transfer manifest and
other documents concerning the shipment.
ATTY. ALBERTO C. MENDOZA: chanrob1es virtual 1aw library
Then, what?
ALBERTO A. LIM: chanrob1es virtual 1aw library
They proceeded to analyze exactly where PAL failed, if any, in forwarding the human remains of Mrs.
Cristina (sic) Saludo. And found out that there was not (sic) delay in shipping the remains of Mrs. Saludo
to Manila. Since we received the body from American Airlines on 28 October at 7:45 and we expedited
the shipment so that it could have been loaded on our flight leaving at 9:00 in the evening or just barely
one hour and 15 minutes prior to the departure of the aircraft. That is so (sic) being the case, I reported
to Manila these circumstances." 70
IV. Finally, petitioners insist, as a consequence of the delay in the shipment of their mother’s remains
allegedly caused by willful contractual breach, on their entitlement to actual, moral and exemplary
damages as well as attorney’s fees, litigation expenses, and legal interest.
The uniform decisional tenet in our jurisdiction holds that moral damages may be awarded for willful or
fraudulent breach of contract 71 or when such breach is attended by malice or bad faith. 72 However, in
the absence of strong and positive evidence of fraud, malice or bad faith, said damages cannot be
awarded. 73 Neither can, there be an award of exemplary damages 74 nor of attorney’s fees 75 as an
item of damages in the absence of proof that defendant acted with malice, fraud or bad faith.
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The censurable conduct of TWA’s employees cannot, however, be said to have approximated the
dimensions of fraud, malice or bad faith. It can be said to be more of a lethargic reaction produced and
engrained in some people by the mechanically routine nature of their work and a racial or societal culture
which stultifies what would have been their accustomed human response to a human need under a
former and different ambience.
Nonetheless, the facts show that petitioners’ right to be treated with due courtesy in accordance with the
degree of diligence required by law to be exercised by every common carrier was violated by TWA and
this entitles them, at least, to nominal damages from TWA alone. Articles 2221 and 2222 of the Civil
Code make it clear that nominal damages are not intended for indemnification of loss suffered but for the
vindication or recognition of a right violated or invaded. They are recoverable where some injury has
been done but the amount of which the evidence fails to show, the assessment of damages being left to
the discretion of the court according to the circumstances of the case. 76 In the exercise of our
discretion, we find an award of P40,000.00 as nominal damages in favor of petitioners to be a reasonable
amount under the circumstances of this case.
WHEREFORE, with the modification that an award or P40,000.00 as and by way of nominal damages is
hereby granted in favor of petitioners to be paid by respondent Trans World Airlines, the appealed
decision is AFFIRMED in all other respects.
SO ORDERED.
MelencioHerrera, Paras, Padilla and Nocon, JJ., concur.
Endnotes:
1. Justice Jorge S. Imperial, ponente, with Justices Filemon D. Mendoza and Artemon D.
Luna, concurring; Petition, Annex C; Rollo, 154.
2. Penned by Judge Lucio F. Saavedra; Petition, Annex A; Rollo, 51.
3. Rollo, 159163.
4. Exhibit G, Bill of Exhibits, 7.
5. Exhibit H, ibid., 9.
6. Original Record, 1.
7. Petition, Annex E; Rollo, 200.
8. Rollo, 1617.
9. Section 2, Rule 45, Rules of Court.
10. Ramos, Et. Al. v. Pepsi Cola Bottling Co. of the P.I., Et Al., 19 SCRA 289 (1967);
Malaysian Airline System Bernad v. Court of Appeals, Et Al., 156 SCRA 321 (1987).
11. Abellana, Et. Al. v. Dosdos, etc., Et Al., 13 SCRA 244 (1965); Uytiepo, Et. Al. v.
Aggabao, Et Al., 35 SCRA 186 (1970); Carolina Industries, Inc. v. CMS Stock Brokerage,
Inc., Et Al., 97 SCRA 734 (1980).
12. Garcia v. Court of Appeals, Et Al., 33 SCRA 622 (1970); Sacay v. Sandiganbayan, 142
SCRA 593 (1986); Manlapaz v. Court of Appeals, Et Al., 147 SCRA 236 (1987).
13. Pilar Development Corporation v. Intermediate Appellate Court, Et Al., 146 SCRA 215
(1986).
14. Vda. de Arroyo v. El Beaterio del Santissimo Rosario de Molo, et al, 23 SCRA 525
(1968).
15. Comment of Respondent TWA, 5; Rollo, 206; Comment of Respondent PAL, 1011;
Rollo. 213.
16. Consolidated Reply, ibid., 229.
17. Rollo, 1726.
18. Exhibit E, Bill of Exhibits, 5; Exhibit 1PAL, Bill of Exhibits, 32.
19. Rollo, 20.
20. 13 Am. Jur. 2d. Carriers 771.
21. 4 Alcantara, Commercial Laws of the Philippines, 118 (1987).
22. 13 C.J.S., Carriers, 233.
23. 13 Am. Jur. 2d, Carriers 775.
24. 13 C.J.S., Carriers 232.
25. Op. cit., 240243.
26. Rollo, 160.
27. Memorandum for Private Respondent PAL, 12.
28. Exhibits 2 and 2APAL; Bill of Exhibits, 31.
29. Article 1737, Civil Code.
30. Article 1733, id.
31. 13 Am. Jur. 2d, Carriers 763764.
32. Op. cit., 762763.
33. Rollo, 163165.
34. Exhibit 1TWA, Bill of Exhibits, 33.
35. Exhibit 3PAL, ibid., 30.
36. Exhibit 2PAL, ibid., 101.
37. Exhibit 5PAL, ibid., 3941.
38. Exhibit 5PAL, ibid., 5863, 7173.
39. Rollo, 229230.
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40. Ibid., 166167.
41. 13 C.J.S., Carriers 148.
42. 13 Am. Jur. 2d, Carriers 751.
43. Manuel A. Barcelona, Liabilities of Carriers: Airline Practices and Procedures, in
CURRENT ISSUES AFFECTING AIRLINES IN THE PHILIPPINES, 103 (1989).
44. Nocum v. Laguna Tayabas Bus Co., 30 SCRA 69 (1969).
45. Rollo, 160.
46. 13 C.J.S., Carriers 41; 13 Am. Jur. 2d, Carriers 572.
47. Annex 2, Opposition to Joint Motion to Dismiss, 12, Original Record, 253254;
Memorandum of Private Respondent TWA, 250.
48. Exhibit 2ATWA, Bill of Exhibits, 26.
49. Article 1370, Civil Code; Philippine Airlines v. Philippine Airlines Employees Association,
70 SCRA 180 (1976); Government Service Insurance System v. Court of Appeals, Et Al.,
145 SCRA 311 (1986); Honrado, Jr. v. Court of Appeals, Et Al., 198 SCRA 326 (1991).
50. Article 1374, Civil Code.
51. See Section 9, Rule 130, Rules of Court.
52. Ruiz, Et. Al. v. Sheriff, Et Al., 34 SCRA 83 (1970); National Union Fire Insurance
Company of Pittsburg, Et. Al. v. StoltNielsen Philippines, Inc., Et Al., 184 SCRA 682
(1990).
53. Rollo, 168169.
54. Section 13, Rule 130, Rules of Court.
55. Exhibit E, Bill of Exhibits, 5.
56. Comment of Private Respondent PAL, 9; Rollo, 221.
57. 13 C.J.S., Carriers 390, 392; Mason v. Chicago & N.W. Ry. Co., 262 Ill. App 580.
58. 13 Am. Jur. 2d, Carriers 854; Chicago & A.R. Co. v. Kirby, 225 US 155, 56 Led 1033,
32 Sct 648; Harmony v. Bingham, 12 NY 99.
59. 13 C.J.S., Carriers 395; Frey v. New York Cent., etc., R. Co., 100 N.Y.S. 225, 114 App,
Div. 747.
60. Rollo, 168169.
61. 13 Am. Jur. 2d, Carriers 778779; See Ong Yiu v. Court of Appeals, Et Al., 91 SCRA
223 (1979) and Pan American World Airways, Inc. v. Intermediate Appellate Court, Et Al.,
164 SCRA 263 (1988).
62. Qua Chee Gan v. Law Union and Rock Insurance Co., Ltd., etc., 98 Phil. 85 (1955);
Fieldman’s Insurance Co., Inc. v. Vda. de Songco, 25 SCRA 70 (1968); Sweet Lines, Inc.
v. Teves, 83 SCRA 361 (1978).
63. Supra, Fn. 61.
64. Chicago & A.R. Co. v. Kirby, supra; Warren v. Portland Terminal Co., 121 Me 157, 116
A 411, 26 ALR 304.
65. Petition, Annex A; Rollo, 79.
66. Exhibit F and Exhibit 4TWA, Bill of Exhibits, 6.
67. Petition, Annex C; Rollo, 169172.
68. Alitalia Airways v. Court of Appeals, Et Al., 187 SCRA 763 (1990); cf. Air France v.
Carrascoso, Et Al., 18 SCRA 168 (1966).
69 See Philippine Airlines. Inc. v. Court of Appeals, Et Al., 188 SCRA 461 (1990).
70. Exhibit 5PAL, 5051; Bill of Exhibits, 8384.
71. Article 2220, Civil Code; Tamayo v. Aquino, Et Al., 105 Phil. 949 (1959); China Airlines
Ltd. v. Court of Appeals, Et Al., 169 SCRA 226 (1989).
72. Perez v. Court of Appeals, Et Al., 13 SCRA 137 (1965); Sebena Belgian World Airlines
v. Court of Appeals, Et Al., 171 SCRA 620 (1989).
73. Coscolluela v. Valderrama, 2 SCRA 1095 (1961); Pan American World Airways, Inc. v.
Intermediate Appellate Court, Et Al., 186 SCRA 687 (1990).
74. Article 2232, Civil Code; Davila, Et. Al. v. Philippine Airlines, 49 SCRA 497 (1973);
Philippine National Bank v. Court of Appeals, Et Al., 159 SCRA 433 (1988); Esguerra v.
Court of Appeals, Et Al., 173 SCRA 1 (1989).
75. Article 2208, Civil Code Federation of United NAMARCO Distributors, Inc, Et. Al. v.
National Marketing Corporation, 4 SCRA 867 (1962); Songcuan v. Intermediate Appellate
Court, Et Al., 191 SCRA 28 (1990).
76. See Northwest Airlines, Inc. v. Cuenca, Et Al., 14 SCRA 1063 (1965); RobesFrancisco
Realty & Development Corporation v. Court of First Instance of Rizal (Branch XXXIV), Et
Al., 84 SCRA 59 (1978); Alitalia v. Intermediate Appellate Court, Et Al., 192 SCRA 9
(1990).
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