033. Zulueta vs. Pan Am

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\ZULUETA vs. PAN AMRafael Zulueta et al vs. Pan American World Airways, Inc.January 8, 1973Concepcion, C.J.Motions for reconsideration of a decision of the Supreme Court

FACTS

Rafael Zulueta was in Wake Island with his wife and children. They were supposed to leave via a Pan AmericanWorld Airways plane. Shortly before the flight, Rafael informed the airport manager that he will look for a place torelieve himself (apparently he went to the beach which was 400 yards from the terminal). He returned only afteran hour and thus caused delay for everyone. As he was reached the ramp leading to the plane, Capt. Zentner

barked at him What do you think you are? in an intemperate and arrogant tone and attitude, impelling Rafale toanswer in the same vein.

An altercation between the two ensued. Capt. Zentner then ordered that all the Zuluetas be off-loaded, includingtheir luggage. Rafael requested that the ladies be allowed to continue the trip Thus, only Rafael was off-loaded.However, only 3 of his 4 pieces of luggage were returned to him. The fourth one remained in the plane.

After he was left behind, the airport manager sent him a note stating that he will stay there for a minimum of 1week and the charge would be $13.30/day. However, Rafael was able to secure a flight from Wake to Hawaii,where he boarded a plane to Japan and was eventually able to return to the Philippines.

THE COURT, IN THIS CASE, ANSWERED THE ARGUMENTS RAISED BY PAN AM IN ITS MOTION FORRECONSIDERATION. (ILL JUST FOLLOW THE ORDER SO WE WONT GET LOST IN THE STORY)

1. Pan Am argues that Zuluetas story that he went to the beach to relieve himself is incredible. Pan Amasserts that he could just have gone to the toilets in the plane or in the terminal or if he indeed went to the

beach, it wouldnt have taken him one hour. Thus Pan Am says that the reason Zulueta was off-loaded wasa bomb scare which arose when Zulueta was late for the flight and refused to have his bags inspected.

Courts answer: Pan Am was not able to adduce evidence to support its bomb-scare claim. If indeed there was abomb scare, Pan Ams agents would have had the passengers and their luggage frisked and searched. Also, as Mrs.Zulueta and Miss Zulueta were in the plane, Rafael couldnt have brought a bomb. Taking into consideration thepossibilities that the terminal toilets were occupied and the distance of the beach from the terminal and Zuluetas

ill condition at the time, the Court finally said that it was not prepared to hold that it could not have taken Rafaelan hour to relieve himself.

2. Pan Am argues that the amount of damages awarded was excessive (P700,00), citing the damagesawarded in previous cases to passengers of airlines. (Northwest Airlines, Inc. vs. Cuenca et al, Lopez et al

vs. Pan American World Airways, Air France vs. Carrascoso) + no right to recover exemplary damages +no right to recover attorneys fees

Courts Answer: None of the cases cited were in point. Said cases referred to passengers who were merelyconstrained to take a tourist class accommodation despite their first class tickets. In this case, Rafael was off-loaded for having dared to retort to Pan Ams agent in a tone and manner matching, if not befitting, hisintemperate language and arrogant attitude.

Zentner even referred to the Zuluetas as monkeys in the presence of the other passengers and crew a racialinsult not made openly and publicly in the cited cases. Rafael was off-loaded, not to protect the safety of theaircraft and its passengers, but to retaliate and punish him for the embarrassment and loss of face suffered by Pan

Ams agent (Zentner).

Neither may criminal cases, nor the cases for libel and slander cited in the defendant's motion for reconsideration,be equated with the present case. Indeed, in ordinary criminal cases, the award for damages is, in actual practice,of purely academic value, for the convicts generally belong to the poorest class of society. There is, moreover, afundamental difference between said cases and the one at bar.

The Zuluetas had a contract of carriage with the defendant, as a common carrier, pursuant to which the latter wasbound,for a substantial monetary consideration paid by the former, not merely to transport them to Manila, but,


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also, to do so with "extraordinary diligence" or "utmost diligence. (Articles 1733 and 1755, CC) The responsibilityof the common carrier, under said contract, as regards the passenger's safety, is of such a nature, affecting as itdoes public interest, that it "cannot be dispensed with" or even "lessenedby stipulation, by the posting of notices,

by statements on tickets, or otherwise. (Article 1757)

In the present case, the defendant did not onlyfailto comply with its obligation to transport Mr. Zulueta toManila, but, also, acted in a manner calculatedto humiliate him, to chastise him, to make him suffer, to cause tohim the greatest possible inconvenience, by leaving him in a desolate island, in the expectation that he would be

stranded there for a "minimum of one week" and, in addition thereto, charged therefor $13.30 a day.

It is urged by the defendant that exemplary damages are not recoverable in quasi-delicts, pursuant to Article 2231of our Civil Code, except when the defendant has acted with "gross negligence," and that there is no specificfinding that it had so acted. It is obvious, however, that in off-loading plaintiff at Wake Island, under thecircumstances heretofore adverted to, defendant's agents had acted with malice aforethought and evident badfaith. If "gross negligence" warrants the award of exemplary damages, with more reason is its imposition justified

when the act performed is deliberate, malicious and tainted with bad faith.

Article 2208 of our Civil Code expressly authorizes the award of attorney's fees "when exemplary damages areawarded," as they are in this case as well as "in any other case where the court deems it just and equitable thatattorney's fees ... be recovered," and We so deem it just and equitable in the present case, considering the"exceptional" circumstances obtaining therein.

3. Pan Am assails the Courts non-enforcement of the compromise agreement between Pan Am and Mrs.Zulueta wherein Mrs. Zulueta agreed to withdraw the case for P50,000.

Mrs. Zulueta filed a motion for the dismissal of the case, as far as she was concerned, having receivedP50,000, without prejudice to this sum being deducted from the award made in the previous decision.

Courts Answer: The payment made to Mrs. Zulueta is effective, insofar as the amount of P50,000 wasdeductible from the award. However, the compromise agreement is ineffective, insofar as the conjugal partnershipis concerned.

While it is true that the law favors and encourages the settlement of litigations by compromise agreement betweenthe contending parties, it does not favour a settlement with one of the spouses, both of whom are plaintiffs ordefendants in a common cause, such as the defense of the rights of the conjugal partnership, when the effect, even

if indirect, of the compromise is to jeopardize the solidarity of the family.

Pan Am asserts that the damages in this case are not among those forming part of the conjugal partnershippursuant to Article 153 of the Old Civil Code (NOW ARTICLE 117, which is in the syllabus).

Art. 117. The following are conjugal partnership properties:

(1) Those acquired by onerous title during the marriage at the expense of the common fund, whether theacquisition be for the partnership, or for only one of the spouses;

(2) Those obtained from the labor, industry, work or profession of either or both of the spouses;

(3) The fruits, natural, industrial, or civil, due or received during the marriage from the common property, as wellas the net fruits from the exclusive property of each spouse;

(4) The share of either spouse in the hidden treasure which the law awards to the finder or owner of the propertywhere the treasure is found; ***(This is the only reference to hidden treasure I could find. This is not even in thecase because Article 153 of the Old Civil Code mentions only the first 3 numbers here. But this case is under rightto hidden treasure in our syllabus. I dont know why)

(5) Those acquired through occupation such as fishing or hunting;

(6) Livestock existing upon the dissolution of the partnership in excess of the number of each kind brought to themarriage by either spouse; and


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(7) Those which are acquired by chance, such as winnings from gambling or betting. However, losses therefromshall be borne exclusively by the loser-spouse. (153a, 154a, 155, 159)

Considering that the damages in question have arisen from a breach of Zuluetas' contract of carriage with Pan Am,for which Zuluetas paid their fare with funds presumably belonging to the conjugal partnership, it was held thatsaid damages fall under paragraph (1) of said Article 153, the right thereto having been "acquired by onerous titleduring the marriage ... ." This conclusion is bolstered up by Article 148 of Old Civil Code, according to which:

ART. 148 (now Article 109). The following shall be the exclusive property of each spouse:(1) That which is brought to the marriage as his or her own;(2) That which each acquires, during the marriage, by lucrative title;(3) That which is acquired by right of redemption or by exchange with other property belonging toonly one of the spouses;(4) That which is purchased with exclusive money of the wife or of the husband.

The damages involved in the case at bar do not come under any of these provisions. What is more, if "(t)hat whichis acquired by right of redemption or by exchange with other property belonging to only one of the spouses," and"(t)hat which is purchased with exclusive money of the wife or of the husband," belong exclusively to such wife orhusband, it follows necessarily that that which is acquired with money of the conjugal partnership belongs theretoor forms part thereof.

There is no proof as to the purpose of the Zuluetas trip, neither is there any evidence that the money used to payfor the plane tickets came from the conjugal funds. Absence such proof, the presumption is that the purpose of thetrip was for the common benefit of the Zuluetas and the money had come from the conjugal funds, unless there isproof to the contrary (Manresa, Codigo Civil Espanol). Also, there is a presumption that all property acquiredduring the marriage belongs to the conjugal property of the spouses (Article 116, NCC, then Art. 160).In the present case, the contract of carriage was concededly entered into, and the damages claimed by theplaintiffs were incurred, during marriage. Hence, the rights accruing from said contract, including those resultingfrom breach thereof by the defendant, are presumed to belong to the conjugal partnership of Mr. and Mrs. Zulueta.

DISPOSITIVE: First Supreme Court decision is affirmed.

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033. Zulueta vs. Pan Am