Air Canada Overturns $2,079 Baggage Compensation Verdict

Post by : Mina Rahman

In a significant legal victory, Air Canada has successfully overturned a Canadian Transportation Agency (CTA) ruling mandating a payment of $2,079 for delayed baggage compensation.

Justice Michael Manson from the Federal Court deemed the 2024 CTA decision unreasonable, instructing for a review by a new officer within the CTA.

The case originated in 2022 when Alaa Tannous and his spouse flew from Toronto to Vancouver. Their checked luggage arrived a day late, prompting them to seek additional compensation after Air Canada initially offered only $250.

Air Canada contended that the CTA's compensation was overly generous, citing that some expenditures were for luxury items and a portion occurred after the luggage was recovered. Justice Manson concurred, stating that the rationale behind linking post-delivery purchases to the delay was insufficiently explained in the original ruling.

Tannous presented receipts amounting to $3,435, with only $1,691.98 corresponding to costs incurred before the luggage's arrival. Post-return purchases included $433.61 sneakers and a $1,310.40 monogrammed suitcase, which Tannous claimed were bought without knowledge that their luggage had been returned, and the suitcase was intended for carrying substitute items back home.

The court mandated a new CTA officer to perform a logical and reasoned evaluation of the claim, addressing what constitutes reasonable expenses related to delayed baggage.

Currently, the federal regulations permit both passengers and airlines to challenge CTA decisions in Federal Court to clarify the appropriateness of awarded compensation.