Está en la página 1de 1

ARRIETA V. NATIONAL RICE AND CORN CORPORATION, 10 SCRA 79 CATHAY PACIFIC AIRWAYS v.

Spouses Vazquez
G.R. No. 150843 March 14, 2003
FACTS :
Mrs. Paz Arrieta participated in public bidding called by NARIC on May 19,
1952 for the supply of 20,000 metric tons of Burmese rice. Her bid was $ 203.00 per FACTS:
metric ton, it was the lowest thats why the contract was awarded to her. On July
1,1952, Arrieta and NARIC entered into contract. Arrieta was obligated to deliver Cathay is a common carrier engaged in transporting passenger and goods by
20,000 metric ton of Burmese rice at $203.00 per metric ton to NARIC. In return, air. Spouses Vazquez are Gold Card Members of its Marc Polo Club. The Spouses,
NARIC committed itself to pay for the imported rice by means of an irrevocable, with two friends and a maid went to HongKong for business. Spouses have the
confirmed and assignable letter of credit in US currency in favour of Arrieta and/or Business class boarding passes and economy class for the maid. When boarding, the
supplier in Burma (THIRI SETKYA), immediately. NARIC took the first step to ground stewardess declared a seat change from Business class to First Class for the
open the letter of credit on July 30, 1952 by forwarding to the PNB its application for Vazquez. The Spouses refused but after insistence by the stewardess, the spouses gave
commercial letter of credit. Arrieta with the help of a counsel, advised NARIC of the in. When the arrived in Manila, spouses demanded to be indemnified in the amount of
necessity for the opening of the letter because she tender her supplier in Ragoon, one million for the humiliation and embarrassment caused by the employee. RTC
Burma of 5 % of the price of 20,000 tons at $180.70 and if she didnt comply the ruled for the Vazquez ordering Cathay Airways to pay the spouses, stating further that
5% will be confiscated if the required letter of credit is not received by them before there was a breach of contract not because of overbooking but because the latter
August 4, 1952. PNB informed NARIC that their application of credit letter pushed through with the upgrading despite objections of the spouses.
amounting to $3,614,000.00 was approved with the condition of 50% marginal cash
be paid. NARIC does not meet the condition. The allocation of Arrietas supplier in
Ragoon was cancelled and the 5% deposit was forfeited. ISSUE:
ISSUE :
Does NARIC liable for damages? Is an involuntary upgrading of an airlines accommodation at no extra costs
HELD : cause a breach of contract of carriage?
Yes, because the reason of the cancellation of the contract by Arrieta in
Ragoon, Burma was the failure of NARIC to open the letter of credit within a specific RULING:
period of time. One who assumes contractual obligation and fails to perform in which
he knew and was aware when he entered in the contract, should be liable for his The Vazquezes are aware of the privileges, but such privileges may be waived.
failure to do what is required Spouses should have been consulted first. It should not have been imposed on them
over their vehement objection. By insisting of the upgrade, Pacific Airways breached
its contract of carriage with the Vazquezes. Nominal damages are adjudicated in order
that the right of the plaintiff, which have been violated may be vindicated or
recognized and not for indemnifying the plaintiff for any loss suffered by him.
Petition is partly granted. Court of Appeals decision is modified. Moral
damages deleted, nominal damages reduced to P5,000.

También podría gustarte