Air Canada has successfully overturned a Canadian Transportation Agency (CTA) ruling that ordered the airline to pay $2,079 to a passenger for delayed baggage.
Federal Court Justice Michael Manson ruled the 2024 decision was unreasonable and sent the case back for reassessment by a new CTA officer.
The dispute began in 2022 when Alaa Tannous and his wife flew from Toronto to Vancouver, and their checked luggage arrived a day late. Air Canada initially offered $250, prompting the couple to seek further compensation.
Air Canada argued the CTA award was excessive, pointing out that some purchases were luxury items or made after the luggage was returned. Justice Manson agreed, noting the ruling did not adequately explain why post-delivery purchases were linked to the delay.
Tannous submitted receipts totaling $3,435, though only $1,691.98 were for expenses incurred before the luggage arrived. Purchases made afterward included a $433.61 pair of sneakers and a $1,310.40 monogrammed suitcase. Tannous stated the sneakers were bought before knowing the luggage had returned, and the suitcase was meant to carry replacement items home.
The court emphasized that a new CTA officer must provide a reasoned, logical assessment of the claim, taking into account what constitutes reasonable expenses for delayed baggage.
Under current regulations, passengers and airlines can appeal CTA rulings to Federal Court to clarify the reasonableness of compensation awards.
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