Lufthansa German Airlines v. Intermediate Appellate Court

Summary

This case involves a breach of contract action against Lufthansa German Airlines for losing one piece of luggage during international air transport from Teheran to Manila. The Supreme Court affirmed lower courts' awards of P200,000.00 actual damages, ruling that Lufthansa waived the liability limitations of the Warsaw Convention by offering higher settlement amounts and failing to timely object to evidence regarding actual damages during trial. The Court established that the Warsaw Convention does not provide absolute immunity from liability and carriers can waive its protections through conduct. The decision reinforces that common carriers bear the burden of proving they were not negligent when goods are lost in their custody, and procedural rules regarding timely objections to evidence must be strictly observed to preserve rights under international conventions.