Sarkies Tours Philippines v. Honorable Court of Appeals (Tenth Division)

Summary

This Supreme Court case established common carrier liability for lost passenger luggage during bus transportation. Fatima Fortades lost two of three pieces of luggage containing valuable optometry materials and important documents while traveling on Sarkies Tours' bus from Manila to Legazpi City. Despite petitioner's denial of liability and claim that no luggage was declared, the Court found overwhelming evidence of the loss and petitioner's negligence in failing to secure the baggage compartment. The Court applied Civil Code provisions requiring extraordinary diligence from common carriers, holding that petitioner's employee helped load the luggage without requiring declaration or payment, making the company liable regardless. The decision affirmed awards for actual damages, transportation expenses, attorney's fees, and litigation costs, while restoring moral and exemplary damages deleted by the Court of Appeals, recognizing petitioner's bad faith in handling the complaint.