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IFTTA Slides On Montreal Convention

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IFTTA Slides on Montreal

Convention
Airline Liability for Passenger Harm
On international travel by aircraft airline
liability governed by agreement between
states called the ‘Montreal Convention’
Sponsored by UN body responsible for
international civil aviation – ICAO, based in
Montreal
Montreal Convention
Gradually replaces previous law – Warsaw
Convention 1929 as amended by various
protocols
Creates global uniform legal rules governing
airline liability to compensate passengers for
injury, baggage loss and delay during
international travel by aircraft
Montreal …
Benefit of having global rules is that airlines are
judged by same substantive rules no matter where
sued
Disadvantage is that case outcomes not necessarily
same because some Montreal rules are so general
It allows different interpretations in different states
Montreal …
No overall Montreal court to resolve
differences of interpretation
Also airline can still be sued in different states
for the same accident
Though many claims are consolidated and end
up in US courts because …
Montreal applies
To all (paying or free) international passenger
travel by aircraft (including helicopters)
International means where places of
departure and destination are:
in different states, or
in the same state but with an agreed stopping
point in another state
Montreal applies ….
To travel inside a state that connects with an
international flight (and seen as one trip)
In EU to travel between EU states
In EU to domestic travel inside an EU state
Airline cannot vary/exclude Montreal
As more states ratify Montreal Warsaw applies to
less and less air travel
Montreal or Warsaw?

 Montreal applies to  Warsaw still applies to


return (round) trip single trip arriving in state
departing from state which has not ratified
which ratifies Montreal Montreal
(regardless of where stop  Warsaw still applies to
is) return trip departing from
 Montreal applies to single state which has not
trip when departing and ratified Montreal
arriving states have
ratified Montreal
Montreal applies …
Only to passenger claims against airlines and their
employees and agents
Not to passenger claims against fellow passengers or
airports or to crew claims against passengers
Injured passengers often still try to sue airline
because:
It can be easier to win against an airline
Can potentially sue in a more convenient state
Which airline to sue?
Generally only actual carrier at time of accident or
delay (unless otherwise agreed that first carrier …)
So:
with successive carriers passenger cannot sue airline
which issued the tickets or with whom booking/contract
was made unless it was the actual carrier
with code-share – passive airline cannot be sued
Which airline to sue?
Where contracting airline uses another airline (actual
carrier) to operate the flight, both can be sued
For baggage travelling passenger can sue:
First carrier
Last carrier
Carrier when damage/ delay happened
either individually or collectively
Montreal applies to passenger claims
against airlines for …
Death or bodily (personal) injury – Article 17
(1)
Checked baggage and hand luggage
damage/loss – Article 17 (2)
Passenger/baggage delay – Article 19
Compensation
Only compensatory damages related to
individual loss can be awarded
Loss typically includes:
past/future medical expenses
past/future loss of income or profit
non-material damage such as pain and suffering
Compensation
No punitive, exemplary damages
But a fixed penalty payment (unrelated to variable
individual loss) does not compensate and is not
damages and is allowed
Thus in EU (under EU law, not Montreal) airlines
must pay fixed amounts (€250/400/600) for
overbooking (delay or delay) and for delays caused
by cancelled flights where airline is blameworthy
Airline Defence
General airline defence of contributory
negligence meaning passenger compensation
is reduced (partially/totally) because
passenger harm caused by passenger’s own
act e.g. not heading safety information, not
wearing seat belt, not returning to seat …
Personal Injury …
Article 17 (1) imposes absolute liability for accidents
causing bodily injury on board or during
embarking/disembarking (plane-related)
For claims up to 100,000 SDR’s (artificial unit of currency
used by IMF)
Absolute means its no excuse to say ‘it wasn’t our
fault’ or ‘it was bad weather’ or ‘it was a bomb’
Personal Injury …
For claims above 100,000 SDR’s no absolute
liability, airline has potential defence:
but only if it can prove it took all reasonable care
to prevent the damage, i.e. that it was not to
blame/at fault
Personal Injury …
In order to show it was not to blame airline
has to show how accident happened and then
show its fault did not cause it
If it cannot show how accident happened
airline cannot raise the defence
‘Accident’
An unexpected or unusual event external to
passenger which causes an injury (not the
injury itself)
Covers aviation-related events including
plane/equipment malfunction, pilot error,
collision, crash/emergency landing
Highjacking, terrorist attacks
‘Accident’
Cabin crew injuring passenger (spilling hot
tea/coffee)
Passengers internal reaction to normal flight is not an
‘accident’
Passenger heart/asthma attack, internal medical
complications etc, deep vein thrombosis, fear of
flying during flight (or airline response to it) is
generally not an ‘accident’ because cause is not
external
Non-aviation-related risks?
No consensus whether ‘accident’ includes non-
aviation-related risks
Dominant view that it does
Objects falling from overhead bins, reclining seats
causing injury
Passenger slipping on wet/slippery (toilet) floor
Passenger falling on passenger while getting into/out
of seat
Non-aviation-related risks?
Drunk passengers accidentally/deliberately
causing injury to others/themselves
Angry passenger assaulting another passenger
Passenger sexually assaulting another
passenger
‘Bodily Injury’
Includes physical injury and connected mental
impact
No consensus whether mental impact alone (trauma,
fright etc) is included
Dominant view in English-speaking states is that no
damages can be awarded for this
But many states (including continental EU, Latin
American states) do allow damages for different
types of ‘non-material’ loss including mental injury
Plane-related means …
Inside plane
‘embarking or disembarking’ is wider than getting
in/out of plane
Courts use broad test based on location of event,
airline control of passenger, proximity to plane etc.
Typically includes distance between departure gate
and plane (terminal walkway, walking across apron
to/from plane or in bus to/from plane)
Plane-related …
Can also include inside terminal while queuing up at
departure gate
But probably not while walking to departure gate
(falling on escalator)
Disembarking finishes when passenger enters
terminal
Injury while at passport control or in baggage reclaim
area not governed by Montreal
Suing
When to sue? – within 2 years of scheduled date of
arrival at destination
Where to sue?
Montreal widened passenger choice of jurisdiction in
which to sue airline
But no matter how many different jurisdictions (or
defendants) passenger sues, still cannot obtain more
in aggregation than limits set by Montreal
Suing
Now passenger can sue airline where:
Its domiciled (its headquarters) or has its principal
place of business
the ticket was sold
the plane’s final destination was
passenger lives (principal and permanent
residence - if its a Montreal state) if airline (or a
code-share partner) flies there and owns/leases
premises …
Suing only under Montreal?
Does Montreal provide the only legal ground for
suing an airline for harm arising out of international
air travel?
Relevant article, Article 29, uses ambiguous language
No global consensus on correct interpretation of
Article 29
Dominant view in English-speaking states is that
passenger must sue under Montreal or not at all
Suing only under Montreal?
Which means if claim is for damages for harm
other than personal injury/baggage loss or
delay, no claim/compensation possible
Meaning no compensation for in-cabin false
arrest, defamation, racial/disability/religious
discrimination, in-flight breach of contract etc.
Checked Baggage
Once checked-in if baggage is destroyed, lost
or damaged the airline is automatically liable
to compensate the passenger
No defence of ‘we took reasonable care’ or ‘it
wasn’t our fault’
But with limit up to 1000 SDR’s
Checked Baggage
Declaration of interest at check-in for greater values
No limit if passenger proves damage was done
deliberately/recklessly by airline employee/agent
acting in the course of employment and knowing
damage would probably result
Can be assumed if damage is bad enough
Hand Luggage
If passenger hand luggage is stolen or
damaged passenger must prove airline fault to
win compensation from airline … cap of 1000
SDR’s
Difficult to do unless, say, cabin crew took
hand luggage and placed it in an overhead bin
which passenger did not know about
Delayed Checked Baggage
Airline is liable for damage to passenger
caused by delayed baggage
If delay but no damage, no liability
Airline defence of proving it took all
reasonable measures to avoid (not the delay
but) the damage resulting from the delay, or it
was impossible to … cap of 1,000 SDR’s
Suing for damaged/delayed Baggage
Legal claim can only be made if passenger
complains in writing:
within 7 days (for damaged checked baggage)
Within 21 days (for delayed checked baggage)
Flight Delay
Under Montreal airline is liable (not for
flight delay but) for damage caused by
flight delay to passenger present at airport
and ready and able to travel
Montreal does not apply to delay when
passenger never departs
Flight Delay
Can be delay in departing or in arrival
Airline not liable when delay is caused by
passenger’s own act (spending too much time
in bar/duty-free shop)
Airline can avoid liability if it proves it took all
reasonable measures to avoid the damage or
that it was impossible to take such measures
Flight Delay
Typical examples of reasonable measures to
avoid delay include:
public address announcements of flight departure
adequate signage on how to reach departure
gate,
sometimes time needed to get to departure gate
Flight Delay
Defence not applicable when overbooking
causes delay because …
Max. compensation awardable limited to 4150
SDR’s
Damage (consequential loss) is typically cost
of accommodation, taxis, phone calls etc.
while awaiting same or another flight
Flight Delay
Can also be loss of income while delayed
No consensus whether loss of holiday
time/enjoyment, frustration etc. amounts to
damage
Some states allow it, others do not
Flight Delay
Buying another flight too soon on different
airline to get home quicker is probably not
recoverable as damage
Because delay per se is not a refusal to
perform the contract (and does not entitle
passenger to treat contract as repudiated and
so buy another ticket)
Flight Delay
Because airlines typically make sure flight
times are not part of the travel contract
No consensus on how long passenger must
wait before booking another flight
Weakness of Montreal Flight Delay Rules
Flight delay is an increasing problem for passengers
because …
Montreal delay rules do not address the significant
immediate consequences of flight delay for
passengers
Because passenger needs to wait for any damage
and to see if airline can prove it took reasonable
measures
Airlines do not have to respond immediately to
passenger claims
Weakness ….
So, Montreal does not as such force airlines:
to look after delayed passengers
not leave them waiting long periods inside plane
offer refreshments, food, accommodation
re-route
offer refunds and bring home if necessary
New Trends
Trend now in some states to pass laws
forcing airlines to protect delayed
passengers against immediate
consequences of different types of flight
delay
Airlines can be made subject to a state
regulator or enforceable rights given to
consumers or a combination of both
New Trends
Airlines are resisting this trend and rely on Article 29
of Montreal to say such laws are not allowed
because Article 29 says Montreal’s delay remedy
provides the only remedy airlines can be made
subject to
In EU Regulation 261/2004 (which offers protection
for immediate consequences of delay caused by
overbooking, cancellation and long delay) held by
court to have avoided and not be affected by
Montreal
New Trends
Because it targets generalised passenger
consequences, not individual ones
Also when pre-set fixed sums (€250/400/600)
are awarded to delayed passengers, its not as
compensation (because it does not vary with
individual loss), but as a civil penalty

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