Delta Air Lines, Inc. v. Barnard
799 So. 2d 208, 2001 Ala. Civ. App. LEXIS 185, 2001 WL 470219 (2001)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
An airline's contractual limitation of liability for lost baggage is enforceable as a matter of law when the airline complies with the federal notice requirements set forth in 14 C.F.R. §§ 253 and 254 by providing conspicuous written notice to the passenger.
Facts:
- Dr. Henry H. Barnard II purchased a round-trip ticket on Delta Air Lines from a travel agent for a flight from Mobile, Alabama to Brunswick, Georgia, and back.
- On his return flight, Dr. Barnard checked a hard-plastic carrying case containing his golf clubs and equipment, valued at $3,292.50, for the flight from Brunswick to Mobile via Atlanta.
- The case was marked with multiple identification tags showing Dr. Barnard's name, address, and phone number, and he watched an airline agent affix a baggage seal.
- Dr. Barnard saw the agent place the case into the luggage chute, which was the last time he saw the case.
- Upon arrival in Mobile, the carrying case with the golf clubs did not arrive.
- After several days, a Delta manager informed Dr. Barnard that the case was likely lost and that Delta's liability was limited to $1,250, offering him a check for that amount, which Dr. Barnard returned.
- The back of Dr. Barnard's ticket contained language incorporating contract terms by reference, including baggage liability limitations.
- The travel agent who issued the ticket testified that a two-page insert, detailing the baggage liability limitation of at least $1,250 per passenger as required by federal rules, accompanied Dr. Barnard's ticket packet.
Procedural Posture:
- Dr. Henry H. Barnard II sued Delta Air Lines, Inc. in the District Court of Mobile County for claims including breach of contract and conversion.
- The district court granted Delta's summary judgment motion, limiting its potential liability to $1,250, and subsequently entered a judgment for Dr. Barnard in that amount.
- Dr. Barnard appealed to the Circuit Court of Mobile County for a trial de novo.
- At the conclusion of the trial, the jury returned a general verdict for Dr. Barnard for $30,000.
- The circuit court reduced the verdict to the district court's jurisdictional limit of $10,000 and entered judgment.
- Delta, as appellant, appealed the circuit court's judgment to the Alabama Court of Civil Appeals, with Dr. Barnard as appellee.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Is an airline's contractual limitation of liability for lost baggage, incorporated by reference into the contract of carriage, enforceable as a matter of law when the airline provides notice consistent with federal regulations?
Opinions:
Majority - Yates, J.
Yes. An airline's contractual limitation of liability for lost baggage is enforceable as a matter of law when it complies with federal notice requirements. The court reasoned that while state-law tort claims related to airline services (like conversion) are preempted by the Airline Deregulation Act (ADA), state-law breach-of-contract claims are not. However, the terms of that contract are governed by federal law. Federal regulations, specifically 14 C.F.R. §§ 253 and 254, permit airlines to limit their liability for lost domestic baggage to a minimum of $1,250, provided they give passengers conspicuous written notice of this limitation. The evidence showed that the language on the back of Dr. Barnard's ticket and the informational insert provided by the travel agent satisfied these federal notice requirements. Because Delta complied with the notice rules, the $1,250 limitation of liability was effectively incorporated into the contract of carriage and is legally enforceable.
Analysis:
This decision clarifies that an airline's adherence to the specific notice procedures outlined in federal regulations is sufficient to enforce its baggage liability limitations as a matter of law. It reinforces the principle that while the Airline Deregulation Act preempts state tort claims related to airline services, contract claims survive but are interpreted according to their federally compliant terms. The ruling provides a clear safe harbor for airlines; by following the prescribed notice procedures, they can rely on their contractual liability limits, thereby creating uniformity and predictability in resolving lost baggage claims and shielding them from larger, varied state-law damage awards.
Unlock the full brief for Delta Air Lines, Inc. v. Barnard