Shewaram vs. Philippine Airlines
Shewaram vs. Philippine Airlines
Shewaram vs. Philippine Airlines
PHILIPPINE AIRLINES
Facts:
Parmanand Shewaram, a Hindu from Davao, boarded a PAL plane bound for
Manila from Zamboanga. He checked in 3 baggages: a suitcase and 2 other
bags. PAL’s personnel mistagged his baggage to “Iligan” instead of “Manila.”
o The baggage was said to be tampered when it was found.
Among his baggage was a camera with P800.00 and it was lost. PAL offered
to pay P100.00. Shewaram wanted full payment of P800.00.
A PAL ticket, on the reverse side, stated in fine print: “The liability, if any, for
loss or damage to checked baggage or for delay in the delivery thereof is
limited to its value and, unless the passenger declares in advance a higher
valuation and pay an additional charge therefor, the value shall be
conclusively deemed not to exceed P100.00 for each ticket.”
PAL maintains that in view of the failure of the Shewaram to declare a higher
value for his luggage, and pay the freight on the basis of said declared value
when he checked such luggage at the Zamboanga City airport, pursuant to
the abovequoted condition, appellee can not demand payment from the
appellant of an amount in excess of P100.00.
Issue: Whether the limited liability rule shall apply in the case at bar?
Since this is a stipulation on qualified liability, which operates to reduce the liability
of the carrier, the carrier and the shipper must agree thereupon. Otherwise, the
carrier will be liable for full. PAL is fully liable (for full) because Shewaran did not
agree to the stipulation on the ticket, as manifested by the fact that Shewaram did
not sign the ticket. Ticket should have been signed.
Article 1750 of the New Civil Code which provides as follows: A contract fixing the
sum that may be recovered by the owner or shipper for the loss, destruction, or
deterioration of the goods is valid, if it is reasonable and just under the
circumstances, and has been fairly and freely agreed upon.
In accordance with the above-quoted provision of Article 1750 of the New Civil Code,
the pecuniary liability of a common carrier may, by contract, be limited to a fixed
amount. It is required, however, that the contract must be "reasonable and just
under the circumstances and has been fairly and freely agreed upon."