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    Lopez VS Pan Am

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    Dan Anthony Barriga
    Senator Lopez and others made reservations for first class seats on a Pan Am flight from Tokyo to San Francisco, but were not provided those seats when they boarded. Pan Am admitted breaching the contract but denied acting in bad faith. The court found that Pan Am's actions amounted to bad faith, as denying the first class seats promoted their own self-interest in keeping Lopez and others as passengers. As Pan Am admitted facts showing bad faith, Lopez and others were entitled to moral and exemplary damages.

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    © All Rights Reserved
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    Lopez VS Pan Am

    Uploaded by

    Dan Anthony Barriga
    35 views1 page
    Senator Lopez and others made reservations for first class seats on a Pan Am flight from Tokyo to San Francisco, but were not provided those seats when they boarded. Pan Am admitted breaching the contract but denied acting in bad faith. The court found that Pan Am's actions amounted to bad faith, as denying the first class seats promoted their own self-interest in keeping Lopez and others as passengers. As Pan Am admitted facts showing bad faith, Lopez and others were entitled to moral and exemplary damages.

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    LOPEZ VS PAN AM.docx

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    Senator Lopez and others made reservations for first class seats on a Pan Am flight from Tokyo to San Francisco, but were not provided those seats when they boarded. Pan Am admitted breaching the contract but denied acting in bad faith. The court found that Pan Am's actions amounted to bad faith, as denying the first class seats promoted their own self-interest in keeping Lopez and others as passengers. As Pan Am admitted facts showing bad faith, Lopez and others were entitled to moral and exemplary damages.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views1 page

    Lopez VS Pan Am

    Uploaded by

    Dan Anthony Barriga
    Senator Lopez and others made reservations for first class seats on a Pan Am flight from Tokyo to San Francisco, but were not provided those seats when they boarded. Pan Am admitted breaching the contract but denied acting in bad faith. The court found that Pan Am's actions amounted to bad faith, as denying the first class seats promoted their own self-interest in keeping Lopez and others as passengers. As Pan Am admitted facts showing bad faith, Lopez and others were entitled to moral and exemplary damages.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Lopez vs Pan American World Airways (Pan Am)

    Facts:

    Senator Lopez et al made reservations for 1st class accommodations in a flight of Pan Am from Tokyo to
    San Francisco. The reservations were confirmed in a phone call. Tickets were also issued. However,
    Lopez et al were not accommodated in the first class for the reason that there was no accommodation
    for them. They instead took the tourist passengers without prejudice to any claim against Pan Am.
    Subsequently, a suit for damages was filed against Pan Am. Pan Am answered admitting its breach of
    the contract of carriage but however denied the allegation of bad faith. It contends that the failure to
    provide 1st class accommodations was made in honest mistake: That the accommodation was
    mistakenly cancelled, and expecting that there would be subsequent cancellation of bookings, they
    withheld the information regarding the cancellation from Lopez et al.

    Issue: WON Pan Am should be held liable for damages to Lopez et al.

    Held:

    Yes.

    The actuation of Pan Am may have been prompted by nothing more than the promotion of its self-
    interest in holding on to Senator Lopez and party as passengers in its flight and foreclosing on their
    chances to seek the services of other airlines that may have been able to afford them first class
    accommodations. All the time, in legal contemplation such conduct already amounts to action in bad
    faith. For bad faith means a breach of a known duty through some motive of interest or ill-will. “Self-
    enrichment or fraternal interest, and not personal ill-will, may well have been the motive; but it is
    malice nevertheless.”

    There being a clear admission in defendant’s evidence of facts amounting to a bad faith on its part in
    regard to the breach of its contracts with plaintiffs, it becomes unnecessary to further discuss the
    evidence adduced by plaintiffs to establish defendant’s bad faith.

    Among others, Lopez et al can be awarded moral damages (where the defendant acted fraudulently or
    in bad faith) and exemplary damages (where the defendant acted in a wanton, fraudulent, reckless,
    oppressive or malevolent manner).

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