Geraldez vs Ca 230 SCRA 329 (1994)

FACTS
1. Lydia came to know about the respondent through advertisements about tours in Europe and eventually
availed of one of the packages they offered.
2. The package was VOLARE 3 which covered 22-day tour of Europe for 190,000 Php which she paid for
herself and her sister.
3. Her disappointments (because it was contrary to what was in the brochure) during the trip were:
a. There was no European tour manager for their group of tourists
b. The hotels which she and the group were billeted were not first- class
c. The UGC Leather Factory, which was a highlight of the tour, was not visited
d. The Filipino lady tour guide was performing said job for the first time.
4. RTC: granted a writ of preliminary attachment against private respondent on the ground respondent
committed fraud in contracting an obligation (as per petitioners motion) but said writ was also lifted upon
filing a counterbond of Php 990k
5. Lydia also filed other complaints at the Department of Tourism and the Securities and Exchange
Commission which fined the respondent Php 5k and Php 10k respectively.
6. RTC awarded moral damages, nominal damages, exemplary damages, and for attorneys fees to Lydia
Geraldez worth Php 500k, Php 200k, Php 300k and Php 50k respectively. Respondent also had to pay for
the costs of the suit.
7. CA modified the RTCs decision since they found no malice could be imputed against Kenstar Travel
Corporation.
ISSUE: WON private respondent acted in bad faith or with gross negligence in discharging its obligations under the
contract.
HELD
Yes, Kenstar Travel Corporation did commit fraudulent misrepresentations amounting to bad faith to the prejudice of
Lydia Geraldez and the members of the tour group.
Reasoning:
On respondents choice of tour guide. By providing the Volare 3 tourist group with an inexperienced and a first timer
tour escort, KTC manifested its indifference to the convenience, satisfaction and peace of mind of its clients during
the trip. Respondent should have selected an experienced European tour guide, or it could have allowed Zapanta
(the lady guide) to go as an understudy under the guidance, control, and supervision of an experienced and
competent European or Filipino tour guide who couldve given her training. The inability of the group to visit the
leather factory is likewise reflective of the neglect and ineptness of Zapanta in attentively following the itinerary for the
day. This incompetence must necessarily be traced to the lack of due diligence on the part of KTC in the selection of
its employees.
On the European Tour Manager. KTC says the euro tour manager refers to an organization and not to an individual;
Geraldez didnt attend the pre-departure briefing, wherein we explained the concept of the euro tour manager. SC
claimed that the advertisement reveals that the contemplated tour manager contemplated is a natural person not a
juridical one as KTC asserts. Furthermore, the obligation to provide not only a European tour manager, but with local
European tour guides were likewise never made available. One is bound not by what he subjectively intends, but by
what he leads others reasonably to think he intends. KTC relies in the delimitation of its responsibility printed on the
face of its brochure.
Disposition: MORAL DAMAGES Php 100k, EXEMPLARY DAMAGES Php 50k, ATTYS FEES Php 20k and costs
against the respondent KTC. Award for nominal damages is deleted. Note Nominal damages are awarded when
there the complainant suffered actual or substantial damage from the breach of contract.