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0 tracked cards Commercial and Taxation Laws

PearlAir, a Philippine-registered carrier, conducts international carriage by air from Manila to Paris. Passenger Aiko Reyes checks a suitcase containing a professional camera valued at PHP 120,000. She does not declare a higher value at check-in. The suitcase is damaged in transit. PearlAir invokes the Montreal Convention and its contract of carriage to limit liability. (a) Identify the central doctrinal issue governing liability for damage to checked baggage in international carriage by air under the Montreal Convention. (b) Apply to the facts: Is PearlAir liable to Aiko for the damage to her checked baggage? If liable, set out the elements Aiko must prove and the extent of liability; discuss any defenses PearlAir may raise under the Montreal Convention; conclude.

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A claim under the Montreal Convention must be filed within two years; failure to file on time bars the claim regardless of liability. The Montreal Convention applies only to loss, not damage; a damaged camera is not recoverable under the Convention. The cap applies per baggage piece rather than per passenger; because Aiko’s camera is in one bag, the cap applies only to that bag, not to all baggage carried by PearlAir for Aiko. Under the Montreal Convention, liability for damage to checked baggage is strict up to a fixed limit per passenger (1,131 SDR), with higher liability only if a declared value was properly declared and a surcharge paid; Since Aiko did not declare a higher value, PearlAir’s liability is capped at 1,131 SDR; The airline may raise defenses that it took all reasonable measures to avoid damage or that damage was caused by inherent defects or by Aiko's acts.

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