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SABENA BELGIAN WORLD AIRLINES v. CA

## FACTS:

Ma. Paula San Agustin filed a complaint against Sabena Belgian World Airlines for the loss of her luggage. On August 21, 1987, San Agustin was a passenger on Flight SN 284 from Casablanca to Brussels, on her way back to Manila. She checked in her luggage with valuables worth $4,265 and was given Tag No. 71423. However, upon arriving in Manila on September 2, 1987, her luggage was missing. San Agustin filed a report and followed up her claim, but the luggage remained missing. On September 30, 1987, she was informed that the luggage was found but was lost for the second time. San Agustin demanded compensation from the airline, but Sabena argued that the loss was due to her negligence for not declaring the valuable items and for failing to claim her baggage in Brussels. The trial court ruled in favor of San Agustin and ordered Sabena to pay damages. Sabena appealed to the Court of Appeals, which upheld the trial court's decision.

## ISSUES:

  1. Whether the airline's liability for the lost luggage is limited to US$20.00 per kilo under the Warsaw Convention and general conditions of carriage, considering the passenger did not declare the value of the items in the checked luggage.

  2. Whether the airline can be held responsible for gross negligence in handling the passenger's luggage despite the stipulations in the ticket and the passenger's failure to retrieve the luggage upon arrival in Brussels.

## RULING:

  1. The Supreme Court affirmed that the airline is liable for the value claimed by the passenger for the lost luggage, despite the lack of declaration of the value of the luggage's contents at check-in and the stipulations in the ticket limiting liability. The Court found that the airline was grossly negligent in losing the luggage twice, overshadowing any limitation on liability stated in the Warsaw Convention or the carrier's general conditions.

  2. The Supreme Court held the airline responsible for gross negligence, evidenced by the loss of the luggage not once but twice, and rejected the defense of the airline that the passenger's absence of retrieval or declaration of the luggage's content at intermediate points mitigated or nullified the carrier’s responsibility.

## PRINCIPLES:

  • Airlines owe a duty of extraordinary diligence in the custody and transport of passenger's luggage.

  • The presumption of fault or negligence on the part of the carrier arises when goods are lost, destroyed, or deteriorated while in its custody.

  • Gross negligence on the part of the carrier voids any liability limitations under the Warsaw Convention.

  • The Warsaw Convention does not restrict the liability of an airline for damages arising out of wilful misconduct or default equivalent to wilful misconduct.

  • Moral and exemplary damages can be awarded against a carrier in instances of gross negligence or bad faith equivalent to fraud.