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(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: Azure Skies Airlines, a Philippine-registered carrier, conducts international carriage by air from Manila to Tokyo. Passenger Lina Reyes checks a suitcase containing a professional camera valued at PHP 60,000. The suitcase is damaged in transit. Azure Skies Airlines invokes the Montreal Convention and its contract of carriage to limit liability. Is Azure Skies Airlines liable to Lina Reyes for the damage to her checked baggage? If liable, set out the elements Lina must prove and the extent of liability; discuss any defenses Azure Skies Airlines may raise under the Montreal Convention; conclude.

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