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ALITALIA v. IAC

FACTS:

Dr. Felipa Pablo, an associate professor in the University of the Philippines, and a research grantee of the Philippine Atomic Energy Agency, was invited to attend a meeting in Ispra, Italy. She accepted the invitation and booked a flight with ALITALIA. However, when she arrived in Milan, she was informed that her luggage, which contained her clothing, personal items, and research materials, was delayed and not on the flight from Rome to Milan. Dr. Pablo went to Rome to try to locate her bags herself but was unsuccessful. She returned to Manila without attending the meeting. She demanded compensation from ALITALIA, but they offered her free airline tickets, which she rejected. She then filed an action for damages against ALITALIA. It was later discovered that her suitcases were located and forwarded to Ispra, Italy, but they were not restored to her until several months later. The trial court ruled in favor of Dr. Pablo, awarding her nominal damages and attorney's fees. ALITALIA appealed, but the appellate court affirmed the decision and increased the award of nominal damages. ALITALIA then appealed to the Supreme Court, arguing that the Warsaw Convention should have been applied to limit their liability and that there was no basis for the award of nominal damages and attorney's fees.

ISSUES:

  1. Whether the Warsaw Convention should be applied to limit ALITALIA's liability.

  2. Whether Dr. Pablo is entitled to nominal damages and attorney's fees.

RULING:

  1. The Supreme Court held that the Warsaw Convention is not applicable in this case. The Court reasoned that the Convention only covers damages for death, injury, destruction or loss of luggage, and delays in transportation. However, the present case involves the failure of ALITALIA to deliver Dr. Pablo's luggage, which does not fall within the scope of the Convention.

  2. The Supreme Court affirmed the lower courts' decision to award Dr. Pablo nominal damages and attorney's fees. The Court agreed with the Appellate Court's justification for increasing the amount of nominal damages to compensate for Dr. Pablo's frustration, disappointment, embarrassment, and humiliation. The Court also upheld the award of attorney's fees, as it is within the discretion of the trial court to determine the amount based on the circumstances of the case.

PRINCIPLES:

  • The Warsaw Convention limits the liability of air carriers for damages arising from death, injury, destruction or loss of luggage, and delays in transportation.

  • The Warsaw Convention does not apply if the claim does not fall within its scope.

  • Nominal damages may be awarded to compensate for frustration, disappointment, embarrassment, and humiliation.

  • The award of attorney's fees is discretionary to the trial court based on the circumstances of the case.