Legal Definitions - Montreal Agreement

The Montreal Agreement is a private agreement signed by most international airlines. It waives the limitation on liability for death and personal injury cases set by the Warsaw Convention, which is currently about $20,000. It also raises the liability limit per passenger to $75,000 and provides for absolute liability on the part of the carrier for all flights originating, stopping, or terminating in the United States.

For example, if a passenger is injured or killed during a flight that originates, stops, or terminates in the United States, the airline is absolutely liable for the damages up to $75,000 per passenger. This means that the airline cannot use due-care defenses to avoid liability.

The Montreal Agreement was the result of negotiations in 1965 and 1966 following the United States' denunciation of the Warsaw Convention. The United States denounced the convention primarily because of its low liability limits, which were seen as inadequate to compensate passengers for injuries or deaths resulting from air travel.