FACTS:
In October 1988, Dr. Cenon E. Curso boarded MV Dona Marilyn of Sulpicio Lines, Inc., bound for Tacloban City. Due to Typhoon Unsang, the ship sank. Dr. Curso's body, along with hundreds others, was not recovered.
At the time of the ship's sinking, Dr. Curso was 48 years old, and was a resident physician at the Naval District Hospital in Naval, Biliran with a basic monthly salary of P3,940.00, and would have retired from government service by December 20, 2004 at the age of 65.
The surviving brothers and sisters of Dr. Curso filed an action for damages against Sulpicio Lines based on breach of contract of carriage by sea. They also prayed for compensatory damages of P1,924,809.00, moral damages of P100,000.00, exemplary damages in the amount deemed proper and just, expenses of litigation of at least P50,000.00, attorney's fees of P50,000.00, and costs of suit.
RTC dismissed the complaint and said there was no basis for the award of damages because the ship had sunk due to force majeure. The RTC also held that the crew and officers acted with diligence and that there was no basis to find the ship not seaworthy since the Special Board of Marine Inquiry absolved Sulpicio Lines of any liability.
CA reversed RTC's findings, saying there was inadequate proof to show Sulpicio Inc., as well as its officers and crew, exercised diligence
ISSUE:
Whether there was basis for the award of moral damages to the brothers and sisters of Dr Curso. -- NO.
HELD:
To be entitled to moral damages, the respondents must have a right based upon law. Moral damages may be recovered in an action upon breach of contract of carriage only when: (a) where death of a passenger results, or (b) it is proved that the carrier was guilty of fraud and bad faith, even if death does not result. Article 2206 of the Civil Code entitles the descendants, ascendants, illegitimate children, and surviving spouse of the deceased passenger to demand moral damages for mental anguish by reason of the death of the deceased.