CATHAY PACIFIC AIRWAYS, LTD., Petitioner, vs.

SPOUSES DANIEL VAZQUEZ and

MARIA LUISA MADRIGAL VAZQUEZ, Respondents.

Question 1: Make a one-page summary on the case making point on the obligation of
Cathay Pacific to its passengers, the case of the Vazquez family and in your own point of view,
whether or not they have the right to file a case or not for the seat upgrading that they got from
Cathay Pacific.

Answer: The Vazquezes, Dr. Daniel Earnshaw and Maria Luisa Madrigal, and two of
their guests purchased Business Class tickets for their return flight to Manila, which turned out to
be fully packed by the time boarding time arrived. Ms. Clara Chiu, the ground attendant, notified

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them of a seat change and that their reservation had been upgraded to First Class. The Vasquezes

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first declined, believing it would be disrespectful to accept the upgrade and leave their visitors in

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the Business Class Section.

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The Vasquezes seats were upgraded without charge as part of Cathay marketing
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campaign, and they were given priority for seat upgrades since they are frequent Cathay travelers
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and members of the Marco Polo Club.

After the Vasquezes declined the upgrade, Ms. Chiu attempted to rebook them in
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Business Class; however, because the section was completely filled, she advised them that they
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would be denied boarding if they did not take advantage of the opportunity. After consulting with
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their guests, the Vasquezes ultimately opted to book First Class accommodations.

Dr. Daniel Earnshaw Vasquez, the complainant, vs. Cathay Pacific, the respondent, is a
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breach of carriage contract case. A breach of contract happens when one party violates the
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conditions of a legally binding agreement. Cathay Pacific operates as a common carrier, which
means it transports passengers and cargo via air.

The case of Dr. Daniel Earnshaw Vasquez, the complainant, versus Cathay Pacific,
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respondent, constitutes a breach of contract of carriage. A breach of contract occurs when one
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party breaks of the terms of a binding agreement between parties. As a common carrier, Cathay
Pacific is engaged in the business of transporting passenger and goods by air. In this case, the
Vasquezes and Cathay Pacific had a contract of carriage an agreement reached voluntarily and
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freely by both parties with the goal of transporting the Vasquezes from Manila to Hong Kong and
vice versa in the Business Class Section, with the cause of contract (fare) paid by the Vasquezes.

Article 1244 of the Philippine Civil Code states: "The debtor of a thing cannot compel the
creditor to accept something other, even if the latter is of equal or more value than the one owed.
An act of forbearance cannot be replaced by another act of forbearance against the will of the

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 oblige in obligations to do or not perform." Cathay Pacific's contract responsibility was to
transport the Vasquezes in Business Class from Hong Kong to Manila after the service had been
paid for. The Vasquezes booking was upgraded to First Class against their will and in violation of
the carriage contract that both parties had committed to in the first place. The Vasquezes should
have been consulted prior to the seat upgrade to see if they agreed and wanted to take advantage
of the free upgrade. After the other party reacted loudly, Cathay Pacific should not have pushed
the upgrade.

Question 2: By upgrading the seat accommodation of the Vazquezes from Business Class
to First Class, did Cathay breach its contract of carriage with the Vazquezes. Why?

Answer: Yes, because the Vasquez had the right to refuse the upgrade and remain in the
business class accommodations that they had booked, as specified on their boarding passes. Yes,
they should be upgraded first, but they shouldn't have forced it or modified it over their own
answers.

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Question 3: Was the upgrading of seat by Cathay Pacific tainted with fraud or bad faith?

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Answer: No, the Vasquezes seat upgrade was not tainted by deception or ill faith. Cathay

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Pacific did not utilize deception or suppression of information to persuade the complainants to
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accept the upgrade of their seats. Similarly, there was no malice in the upgrade because Cathay
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ground attendant had been forthright in indicating that Business Class was completely booked
and the seats had already been assigned to other customers. The improvement was not performed
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for nefarious intentions because it provided nicer accommodations for the Vasquezes.
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Furthermore, The Civil Aeronautics Boards Economic Regulation No. 7 specifies that
overbooking not exceeding 10% of the aircraft's seating capacity shall not be regarded a
deliberate and willful act of non-accommodation. While Business Class was admittedly
overbooked, there was no proof that the entire flight was overbooked by more than 10%, and no
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passengers were bumped or refused to board.

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Question 4: Are the Vazquezes entitled for damages? Why?

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Answer: The Vasquezes are entitled to nominal damages, as defined by Article 2221 of
the Civil Code. Nominal damages are determined in order to vindicate or recognize a plaintiff's
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right that has been violated or invaded by the defendant, rather than to compensate the plaintiff
for any harm he has suffered. This explains why the moral and exemplary damages do not exist
owing to a lack of proof and why the airline does not truly show any bad faith by breaching the
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contract of carriage.

Question 5: Did Cathay Pacific acted on bad faith when they overbooked the business
class section of the flight? Is overbooking legal or not?

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 Answer: No, as I already stated, I do not believe it was in bad faith. I believe they are
simply trying to cram as many people as possible onto the plane in order to maximize Cathay
Pacific's profits. Overbooking is lawful because it is done to fill in the gaps in the airline's
schedule and maximize revenue.

Question 6: Before Cathay Pacific filed for an appeal in the Court of Appeals, the lower
court ordered Cathay Pacific to pay the Vazquezes of P2 million pesos and P5 million pesos each
for the moral and exemplary damages. Do you think that the lower court is just in ordering a
huge amount of damages in favor of the plaintiff?

Answer: Yes, given that they are already members of society's Elite Filipinos, a sum of
money so large is nevertheless important to the airline. As a result, these damages must still be
thoroughly investigated. However, based on the court's findings, it was reduced to nominal
damages, and the other awards were simply deleted owing to a lack of proof.

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Question 7: If you were the supervisor of Cathay Pacific, will you insist on asking the
passengers to take the upgrade seats even though they don’t want to take it?

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Answer: No, since our clients must remain our top priority. However, if we are in

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desperate need of assistance, we will handle the situation with the best feasible solution and an
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agreement with the holder or customer in order to avoid any losses and to be at peace while also
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solving the problem.

Question 8: Based on the facts presented, do you believe that Ms. Chiu acted in bad
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faith, shouted and humiliated the Vazquezes during the boarding time?
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Answer: No, because I feel it was due to a cultural gap that the Vazquezes misinterpreted
it. Because Ms. Chiu was a Hong Kong Chinese woman whose Chinese was difficult to
understand and whose tone of voice could come across as harsh or loud to Filipinos, the
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Vazquezes may have been afraid or exaggerating the situation.

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