British VS Ca

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BRITISH AIRWAYS VS CA

FACTS:

On April 16, 1989, Mahtani decided to visit his relatives in Bombay, India. He asked Mr.
Gumar to prepare his travel plans.
Mr. Gumar purchased a ticket from British Airways (BA).
Since BA had no direct flights from Manila to Bombay, Mahtani had to take a flight to
Hongkong via PAL, and upon arrival in Hongkong he had to take a connecting flight to
Bombay on board BA.
Before departure, Mahtani checked in at PAL counter his two pieces of luggage
containing his clothings and personal effects, confident that upon reaching Hongkong, the
same would be transferred to the BA flight bound for Bombay.
when Mahtani arrived in Bombay he discovered that his luggage was missing and that
upon inquiry from the BA representatives, he was told that the same might have been
diverted to London.
After waiting for 1 week, BA finally advised him to file a claim by accomplishing the
"Property Irregularity Report.
In the Philippines, on June 11, 1990 Mahtani filed his complaint for damages and
attorney's fees5 against BA and Mr. Gumar before the RTC.L alleging that the reason for
the non-transfer of the luggage was due to the latter's late arrival in Hongkong, thus
leaving hardly any time for the proper transfer of Mahtani's luggage to the BA aircraft
bound for Bombay.
The RTC rendered its decision in favor of Mahtani.
BA is ordered to pay Mahtani P7,000 for the value of the 2 suitcases
$400 for the value of the contents of the luggage
P50,000 for moral and exemplary damages and 20% for attorney’s fees and cost of the
action.
This decision was affirmed by CA.
ISSUE: WON the award of the damages was without basis since Mahtani failed to
declare a higher valuation w/ respect to his luggage.
RULING: The SC ruled in the negative.
the nature of an airline's contract of carriage partakes of two types, namely: a contract to
deliver a cargo or merchandise to its destination and a contract to transport passengers to
their destination. A business intended to serve the traveling public primarily, it is imbued
with public interest, hence, the law governing common carriers imposes an exacting
standard. 14 Neglect or malfeasance by the carrier's employees could predictably furnish
bases for an action for damages. 
Admittedly, in a contract of air carriage a declaration by the passenger of a higher value
is needed to recover a greater amount. Article 22(1) of the Warsaw Convention
However, , we have held that benefits of limited liability are subject to waiver such as
when the air carrier failed to raise timely objections during the trial when questions and
answers regarding the actual claims and damages sustained by the passenger were asked. 
Given the foregoing postulates, the inescapable conclusion is that BA had waived the
defense of limited liability when it allowed Mahtani to testify as to the actual damages he
incurred due to the misplacement of his luggage, without any objection.
Indeed, it is a well-settled doctrine that where the proponent offers evidence deemed by
counsel of the adverse party to be inadmissible for any reason, the latter has the right to
object. However, such right is a mere privilege which can be waived. Necessarily, the
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objection must be made at the earliest opportunity, lest silence when there is opportunity
to speak may operate as a waiver of objections. 25 BA has precisely failed in this regard.
To compound matters for BA, its counsel failed, not only to interpose a timely objection,
but even conducted his own cross-examination as well. 

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