Air Canada wins court battle to cancel $2,000 payment to passenger for delayed baggage

Air Canada has successfully overturned a decision by the Canadian Transportation Agency (CTA) that required the airline to pay a passenger $2,079 for delayed baggage.

After an 11-month court battle initiated by Air Canada, Federal Court Judge Michael Manson ruled that a CTA official’s 2024 decision was unreasonable. The case has been referred back to Canada’s transportation regulator CTA for a new official to re-evaluate the compensation claim.

The case involves Flight 2022 Ala Tanous and his wife, Nancy, took from their home city of Toronto to Vancouver. His checked luggage arrived a day after his arrival.

Air Canada originally offered Tanous $250 compensation. Dissatisfied with the amount, he lodged a complaint with CTA.

According to court documents, Air Canada argued that CTA’s order to pay Tanous $2,079 was flawed because the purchases she made to replace the items in her missing suitcase were “excessive, including luxury items” and some of the items were purchased after the suitcase was returned.

In his judgment, Justice Manson agreed that the CTA’s decision was questionable, as it included a portion of the latter’s purchase.

“The officer’s reasons do not address nor show any common sense as to why the post-delivery purchase was associated with the delay,” he wrote.

air Canada He told CBC News in an email that he was satisfied with the judge’s decision.

Tanous said Air Canada served him court papers on Christmas Eve 2024. He said he did not hire a lawyer or participate in the court case because he felt it was a waste of money and time.

He declined to comment on the outcome of the case, except to say it was still active.

More information about those subsequent purchases

in FebruaryTanous told CBC News that, during the Vancouver trip, Air Canada said it could spend a “reasonable amount” on necessities due to the couple’s missing suitcase.

“They can’t even locate the luggage, whether it’s in Toronto or in transit,” he said. “I thought the stuff was gone.”

According to court records, Tanous collected $3,435 in receipts for restitution. Under the rules at the time, passengers were allowed to claim up to about $2,350 for delayed baggage.

The judge said Tanous had made purchases worth $1,691.98 before the bags arrived, yet the CTA awarded her more than $2,000 in compensation.

“I thought it was fair,” Tanous said of it. CTA decision.

Purchases made after the goods arrived – which raised concerns for the judge – There were a pair of sneakers ($433.61) and a personalized monogrammed Tumi suitcase ($1,310.40).

Tanous said the sneakers were purchased after she learned Air Canada had returned the couple’s luggage, and she purchased a Tumi bag to carry the new replacement items home.

Justice Manson said in his decision that Air Canada had also argued that the CTA official should not have included “luxury” items purchased by the couple in the compensation amount.

The judge did not comment directly on the case, but wrote, “It is now up to a different (CTA official) to provide a more reasoned, logical decision in relation to the entire claim.”

The way the rules currently work, after CTA officials issue decisions in cases, if passengers or airlines disagree with the outcome, they can challenge the decision in federal court.

Air Canada said it filed the case against Tanous to seek “guidance on reasonable expenses that customers may claim.”