American Airlines Inc v Georgeopoulos

The New South Wales Court of Appeal heard an appeal by American Airlines Inc. against a decision of the District Court of New South Wales. The dispute concerned the carriage of goods by air, specifically the interpretation of certain provisions within the contract of carriage and the applicable international conventions. The respondents, Georgeopoulos and another, had brought proceedings against American Airlines concerning alleged damage to goods during their international transit.

The primary legal issues before the Court of Appeal were whether the contract of carriage was subject to the *Warsaw Convention* (as amended by the *Hague Protocol*) and, if so, the extent to which its provisions limited American Airlines' liability for the damage sustained by the respondents' goods. The court was required to determine the proper construction of the relevant clauses within the air waybill and their interaction with the overriding principles of the Convention.

The Court of Appeal analysed the terms of the air waybill and the nature of the carriage undertaken by American Airlines. It concluded that the carriage was international carriage by air to which the *Warsaw Convention* applied. The court then considered the specific limitations of liability prescribed by the Convention, finding that American Airlines was entitled to rely on these limitations unless the respondents could establish grounds for their exclusion. The court affirmed the principles of contractual interpretation in the context of international conventions, emphasizing that the plain wording of the Convention and the contract would be given effect. The appeal was ultimately allowed in part, with the Court of Appeal varying the damages awarded by the District Court to reflect the limitations imposed by the *Warsaw Convention*.