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0 tracked cards Commercial and Taxation Laws

AirNova Philippines, a Philippine-registered carrier, conducts international carriage by air from Manila to Tokyo. Passenger Lila Ramos checks a suitcase containing a professional camera valued at PHP 140,000. She does not declare a higher value at check-in. The suitcase is damaged in transit. AirNova 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 AirNova liable to Lila for the damage to her checked baggage? If liable, set out the elements Lila must prove and the extent of liability; discuss any defenses AirNova may raise under the Montreal Convention; conclude.

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Packaging defects known to the carrier before carriage automatically bar liability and shift responsibility entirely to the passenger in all checked baggage cases. The Montreal Convention does not apply to Manila–Tokyo carriage because the Philippines has not ratified the Convention and thus its provisions do not govern this flight. Claims for damage to checked baggage must be filed within 7 days of delivery or knowledge of damage, otherwise the claim is barred. Under the Montreal Convention, liability for damage to checked baggage in international carriage is capped at 1,131 Special Drawing Rights per passenger unless a higher declared value is recorded in advance and a surcharge paid; since Lila did not declare a higher value, AirNova’s liability is limited to 1,131 SDR; the camera’s PHP 140,000 value exceeds the cap, so compensation cannot exceed 1,131 SDR; AirNova may still raise defenses that it took all necessary measures to avoid the damage or that the damage arose from the nature of the baggage or the passenger’s own actions.

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