Question

Discuss the types of liability the exist in Aviation. Research the IATA rules governing limits to liability for commercial air carriers under those adopted standards and post your findings.

Answer 1

What is Liability?

A ‘Liability’ can mean something that is a hindrance or puts an individual or group at a disadvantage, or something that someone is responsible for, or something that increases the chance of something occurring (a cause).

Types Of Liability exist in Aviation :

Legal Liability : (legal binding obligation to pay debts)

Vicarious Liability : (responsibility of the superior for the acts of subordinate) Ex: Refueling Process in Airport

Limited Liability : (responsibility based on investment) Ex: Shareholders attached to an Airport Co. (Legal Entity)

Product Liability : (responsibility not to sell defective product) Ex: Aviation Products Liability-Contracts can cover Engine manufacturers, avionic software producers or similar businesses)

Public Liability : (is part of the Law of Torts – which focuses on Civil Wrongs-based on Duty of Care or Standard of Care)

THE LIABILITY OF THE CARRIER

The Warsaw Convention is also called the “heart”. The most likely reason for setting limits for liability of airlines was the protection of the infant aviation industry which otherwise would not have been able to continue its development. Normally the limitation of liability to a fixed money amount is totally contrary to its general principle of restitution (status quo ante).

A main element of the liability is the presumption of fault of the carrier, meaning that the carrier has to prove that the damage was not his fault instead of the claimant to evince the carrier’s wrongdoing. This principle is called reversed burden of proof and a very important element. The carrier will be unlimited liable if it is proven that he misconducted by purpose or did not do all possible measures to avoid the damage. It is not allowed to reduce the liability limits by bilateral contract.

In case of a lawsuit the plaintiff has the choice between four jurisdictions: Carrier domicile, place of contract creation, flight destination place or the usual place of business of the carrier. Of course those states must be contracting partners of the Convention. Overall the carrier is liable for “…damage sustained in the event of death or wounding of a passenger or any other bodily injury…”. Articles 17-19 also include liability for delays (if not reasonable) and damaged baggage or cargo.

The carrier liability limit was set to 125,000 francs (8,300 USD; 10,000 USD after devaluation) between 1929 and 1968 for death, wounding or other injuries. This however was not always paid but only when the claimant proved that the amount of damage was on this level or above. The limit for loss of or damage to baggage and cargo was set to 250 francs (17 SDRs or 20 USD after devaluation) per kg. Hand luggage has a limit of 400 USD per kg. In two cases the carrier liability does not have a limit: Wilful misconduct (article 25) and when no passenger/ baggage/ air waybill ticket was issued or is missing information or the convention note.