Decision No. 19-C-A-2023

[1] On January 4, 2020, the applicants travelled from Mexico City, Mexico, to Vancouver, Canada, with the respondent. Upon the applicants’ arrival in Vancouver, the checked baggage of Silva Judge was not delivered to them. They reported the baggage missing and provided their contact information to an airport employee, who informed them that the respondent would be notified about the incident.

[2] The applicants seek compensation for the lost baggage in the amount of USD 919.62, as well as compensation for the baggage fees that were paid for the lost baggage.

[3] The respondent did not file an answer. Therefore, the applicants’ claim is uncontested.

Preliminary matters

[4] The Canadian Transportation Agency (Agency) opened pleadings on the application on November 23, 2020. However, the respondent did not file an answer to the application.

[5] On June 11, 2021, for the reasons set out in Decision LET-C-A-43-2021, the Agency stayed the proceedings in this case until December 11, 2021.

[6] On January 26, 2022, for the reasons set out in Decision LET-C-A-4-2022 (Decision), the Agency was of the preliminary view that it should decline to hear the complaint as there is no practical possibility that the applicants could recover compensation if the Agency were to hear the case. The Agency provided the applicants with an opportunity to show cause why the Agency should not decline to hear their complaint. The applicants did not submit a response to the Decision.

[7] On August 30, 2022, the Reuters news agency reported that a judge declared the respondent bankrupt, that the respondent had 185 days to reach an agreement with its creditors and that during that time, the respondent’s payments were suspended. On October 21, 2022, Reuters reported that a judge issued an order against the respondent in a class-action lawsuit and that other affected passengers will have until October 2023, to join the second phase of the class-action lawsuit.

[8] Following these recent developments concerning the respondent, the Agency will hear the applicants’ complaint.

Analysis and Determination

[9] In this decision, the role of the Agency is to decide whether the respondent properly applied the terms and conditions that were applicable to the tickets purchased by the applicants. If the Agency finds that the respondent failed to properly apply its Tariff, it can direct the respondent to take corrective measures that the Agency considers appropriate or to pay compensation for any expense incurred by a person adversely affected by the respondent’s failure.

[10] The respondent’s Tariff incorporates the Montreal Convention and states that the respondent is liable for damage sustained in the case of destruction or loss of, damage to, or delay of, checked baggage, up to a maximum of 1,131 Special Drawing Rights (SDR).

[11] The applicants submit proof, in the form of emails between themselves and the respondent, that they notified the respondent about the missing baggage in writing on January 6, 2020, and that the respondent admitted to the loss of the baggage on March 5, 2020. They also submit a list of items that were contained in the baggage, as well as receipts for several of the items, and estimate the replacement cost at USD 919.62 The Agency finds this amount to be reasonable given the contents of the baggage. Although the applicants also seek compensation for baggage fees that were paid, they did not provide any evidence showing that baggage fees were paid for the lost baggage nor the amount paid; therefore, the Agency will not award compensation for baggage fees.

[12] The applicants submit that they have not received compensation from the respondent. Consequently, the Agency finds that the respondent failed to properly apply its Tariff by not providing the applicants with compensation for the lost baggage. Based on the historical exchange rate published by the Bank of Canada for January 3, 2020, the closest business day to the date the applicants travelled, USD 919.62 was equivalent to CAD 1,194.40. Therefore, the Agency finds that the applicants are entitled to this amount as compensation for their lost baggage.

Order

[13] The Agency orders the respondent to compensate the applicants in the amount of CAD 1,194.40 as soon as possible and by no later than March 28, 2023.