Civil Aviation Act 2023

International and domestic carriage of passengers and goods by air - International carriage by air

260: Limitation of liability

You could also call this:

"Rules about how much money airlines must pay if something goes wrong on a flight"

Illustration for Civil Aviation Act 2023

If you are on a plane and something goes wrong, there are rules about how much money the airline has to pay you. These rules are in something called the Montreal Convention and they apply no matter what kind of court case happens. You can find more information about the Montreal Convention in Article 21 and Article 22.

If someone is trying to get money from the airline, the airline's total liability is limited. This limit applies to all court cases in New Zealand and anywhere else in the world. The court can make decisions about how much money to award, considering the Montreal Convention and other court cases.

The court has the power to make decisions that are fair and equitable. You can see how this law has changed over time by comparing it to 1990 No 98 s 91G. The court's powers include being able to award less money than they normally would, or making the award depend on the result of another court case.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS49932.


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Part 8International and domestic carriage of passengers and goods by air
International carriage by air

260Limitation of liability

  1. The limitations on liability referred to in Articles 21 and 22 of the Montreal Convention or in Article 22 of the amended Convention apply whatever the nature of the proceedings by which liability may be enforced.

  2. Without limiting subsection (1),—

  3. the limitations on liability apply where proceedings are brought by a person (person A) to obtain contribution from another person (person B) if person B is the carrier or a servant or an agent of the carrier; and
    1. the limitation for each passenger referred to in Article 21 of the Montreal Convention or in paragraph (1) of Article 22 of the amended Convention applies to the aggregate liability of the carrier in—
      1. all proceedings that may be brought against the carrier under the law of New Zealand; and
        1. any proceedings brought against the carrier outside New Zealand.
        2. A court or the Disputes Tribunal (as relevant) before which proceedings are brought to enforce a liability that is limited by Article 21 or Article 22 of the Montreal Convention or Article 22 of the amended Convention may, at any stage of the proceedings, make any order that appears to the court or the Disputes Tribunal (as relevant) to be just and equitable, in view of—

        3. Article 21 or Article 22 of the Montreal Convention or Article 22 of the amended Convention; and
          1. any other proceedings which have been, or are likely to be, commenced in New Zealand or elsewhere to enforce the liability in whole or in part.
            1. A court or the Disputes Tribunal (as relevant) before which proceedings are brought to enforce a liability that is limited by Article 21 or Article 22 of the Montreal Convention or Article 22 of the amended Convention has jurisdiction, where the liability is, or may be, partly enforceable in other proceedings in New Zealand or elsewhere, to—

            2. award an amount less than the court would have awarded if the limitation applied solely to the proceedings before the court; or
              1. make any part of its award conditional on the result of any other proceedings.
                1. Subsection (4) does not limit the powers conferred on a court or the Disputes Tribunal by subsection (3).

                2. Unless the context otherwise requires, references in this section to Article 22 of the amended Convention are, subject to any necessary modifications, to be read as references to that Article as applied or supplemented by—

                3. Article 25A of the amended Convention; and
                  1. Articles V and VI of the Guadalajara Convention.
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