Legal Definitions - Agreement Relating to Liability Limitation of the Warsaw Convention

The term Agreement Relating to Liability Limitation of the Warsaw Convention refers to a specific arrangement, often known as the Montreal Agreement of 1966. This agreement was a significant step taken by airlines, primarily those operating flights to, from, or through the United States, to voluntarily increase the financial compensation limits for passengers in cases of injury, death, or baggage loss/damage during international air travel.

Before this agreement, the original Warsaw Convention set relatively low limits on an airline's liability. The Montreal Agreement effectively raised these limits for participating airlines, providing greater protection and potential compensation for travelers without requiring a full renegotiation of the international treaty itself. It served as a stopgap measure until a more comprehensive international convention (the Montreal Convention of 1999) could be adopted, which further modernized and increased liability limits globally.

Here are some examples illustrating how this agreement applies:

• Example 1: Passenger Injury Compensation

  Imagine a passenger flying from London to New York on an airline that was party to the Montreal Agreement. During the flight, due to turbulence, the passenger sustains a serious injury requiring extensive medical treatment. Under the original Warsaw Convention, the airline's liability for such an injury might have been capped at a relatively low amount. However, because the airline adhered to the Montreal Agreement, the passenger would be entitled to seek compensation up to the significantly higher liability limits established by that agreement, providing more substantial financial relief for medical bills and other damages.

• Example 2: Lost Baggage Claim

  A traveler checks a valuable suitcase for an international flight from Paris to Chicago. Upon arrival, the suitcase is declared lost. If the airline was a signatory to the Montreal Agreement, the compensation for the lost baggage would be calculated based on the higher per-kilogram or per-item limits set by that agreement, rather than the much lower limits of the original Warsaw Convention. This means the traveler would receive a more equitable reimbursement for their lost belongings, reflecting the increased liability the airline voluntarily assumed.

• Example 3: Fatal Accident Claim

  In the unfortunate event of an international flight accident resulting in fatalities, the families of the deceased passengers would seek compensation from the airline. If the flight route involved the United States and the airline was bound by the Montreal Agreement, the agreement would ensure that the airline's liability for each passenger's death was subject to a substantially higher limit than what the original Warsaw Convention allowed. This increased limit provided a more meaningful level of financial support for the affected families, acknowledging the greater value placed on human life and the need for adequate compensation in such tragic circumstances.