I. Introduction and Applicability
The Montreal Convention for the Unification of Certain Rules for International Carriage by Air (1999) (MC) is the prevailing international treaty governing the rights and liabilities of passengers, shippers, and carriers in international air transportation. In the Philippines, the MC is not merely a treaty but has been transformed into domestic law by virtue of Senate Concurrent Resolution No. 5, ratified on October 6, 2000, and is effective as Philippine law pursuant to Article VII, Section 21 of the 1987 Constitution. It applies to all international carriage of persons, baggage, or cargo performed by aircraft for reward, and to gratuitous carriage by an air transport undertaking. Its provisions apply where the place of departure and the place of destination are within the territories of two State Parties, or within a single State Party if there is an agreed stopping place in another State.
II. Strict Liability for Death or Bodily Injury (Article 17)
The carrier is strictly liable for proven damages sustained in case of death or bodily injury of a passenger upon condition only that the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking or disembarking. The claimant need not prove fault or negligence on the part of the carrier. Liability is limited to 128,821 Special Drawing Rights (SDRs) per passenger. This limit is periodically reviewed.
III. Unlimited Liability and Rebuttable Presumption of Fault (Article 21)
For damages exceeding 128,821 SDRs, the carrier shall not be liable if it proves that: (a) such damage was not due to the negligence or other wrongful act or omission of the carrier or its servants or agents; or (b) such damage was solely due to the negligence or other wrongful act or omission of a third party. This creates a two-tiered system: strict liability up to the limit, and a rebuttable presumption of carrier fault for damages above it, shifting the burden of proof to the carrier to exculpate itself.
IV. Delay of Passengers, Baggage, and Cargo (Articles 19, 22)
The carrier is liable for damage occasioned by delay in the carriage of passengers, baggage, or cargo. However, the carrier is not liable for damage occasioned by delay if it proves that it and its servants and agents took all measures that could reasonably be required to avoid the damage or that it was impossible to take such measures. Liability for passenger delay is limited to 5,346 SDRs. For baggage delay, the limit is 1,288 SDRs per passenger.
V. Destruction, Loss, or Damage to Baggage and Cargo (Articles 17, 18, 22)
The carrier is liable for destruction, loss, or damage to checked baggage upon condition only that the event which caused the damage occurred on board the aircraft or during any period within which the checked baggage was in the charge of the carrier. For cargo, the carrier is liable if the damage occurred during the carriage by air. The carrier is not liable if the damage resulted from inherent defect, quality, or vice of the baggage/cargo. Liability for unchecked baggage (carry-on) is limited to 1,288 SDRs per passenger. For cargo, the limit is 22 SDRs per kilogram.
VI. Documentation: Passenger Ticket, Baggage Check, and Air Waybill (Articles 3, 4, 5)
The Convention sets forth requirements for documentation. Failure to issue a passenger ticket, baggage check, or air waybill does not affect the existence or validity of the contract of carriage, which remains subject to the MC. However, specific provisions regarding the particulars to be included (e.g., places of departure and destination, stopping places) are mandatory. Non-compliance may affect the carrier’s ability to invoke liability limits in certain circumstances.
VII. Jurisdiction and Forum Selection (Article 33)
A plaintiff may bring an action for damages before the courts of: (1) the domicile of the carrier; (2) the carrier’s principal place of business; (3) the place where the carrier has a place of business through which the contract was made; or (4) the place of destination. This last ground is particularly significant, as it allows a passenger whose flight terminates in the Philippines to file suit in Philippine courts, even if the carrier is foreign and the contract was made abroad. The action must be brought within two years from the date of arrival at destination, or the date on which the aircraft ought to have arrived, or the date on which the carriage stopped.
VIII. Exclusivity and Preemption (Article 29)
In the carriage of passengers, baggage, and cargo, any action for damages, however founded, whether under contract, tort (quasi-delict), or otherwise, can only be brought subject to the conditions and limits set out in the Montreal Convention. This is a critical preemption clause. It abolishes the option to file an action for breach of contract under the Civil Code or for quasi-delict if the claim falls within the scope of the Convention. The MC provides the exclusive cause of action and remedy, superseding local laws like the Civil Code provisions on common carriers (Articles 1733-1766) for international carriage.
IX. Practical Remedies
Upon an incident, immediately document all details, secure the passenger ticket and baggage claim tags, and obtain a Property Irregularity Report (PIR) for delayed or damaged baggage from the carrier at the airport. For injury claims, seek immediate medical attention and retain all records. Notify the carrier in writing without delay, and within the prescribed time limits for baggage complaints (21 days for damage, 7 days for delay). Engage counsel to evaluate the claim’s value in SDRs and determine the optimal jurisdiction for filing suit, prioritizing the Philippine courts if the destination was the Philippines. Prepare to litigate the two-year prescriptive period aggressively, as it is strictly applied. For claims above the strict liability limit, develop evidence to counter the carrier’s likely defense that it took “all reasonable measures,” often focusing on operational manuals, maintenance records, and crew training. In settlement negotiations, anchor computations on the SDR limits and current conversion rates to Philippine Pesos as published by the Bangko Sentral ng Pilipinas.
