Air Canada and Brink's just settled their $20M gold heist lawsuit — and it reveals how little airlines owe for lost valuables

As a result, Brink’s spent nearly two years pursuing legal action against Air Canada over financial liability for the loss. A Federal Court ruling determined that Air Canada’s legal liability was capped at just over C$18,000 — a tiny fraction of the missing assets. The two companies subsequently finalized a confidential settlement, ending the formal appeals process.

While the financial terms remain private, the underlying court ruling established a critical precedent for anyone checking a bag, sending a parcel or shipping valuables: airlines are not legally required to reimburse the full value of lost property. They are only required to pay up to statutory limits set by law.

Why a $20-million loss resulted in an $18,000 liability cap

Air Canada’s liability was capped under the Montreal Convention, an international treaty incorporated into Canadian law via the Carriage by Air Act. The treaty limits a carrier’s financial liability for lost or damaged cargo and checked baggage regardless of the items’ actual market value — unless the shipper or passenger explicitly declares a higher value prior to transit and pays an additional fee for expanded coverage.

In the Federal Court proceeding, the judge found that Brink’s did not file a special value declaration or pay Air Canada for enhanced supervisory handling. Consequently, the claim was restricted to 9,988 Special Drawing Rights (SDR) — an International Monetary Fund reserve asset unit — equating to approximately C$18,500 at the time of calculation.

How treaty caps apply to passenger baggage

The Montreal Convention governs commercial freight as well as consumer checked luggage on international flights arriving in, or departing from, Canada.

• Checked baggage limits: The treaty caps airline liability for lost or damaged baggage at 1,519 SDR per passenger (roughly C$2,858), no matter how many bags were checked or what items were inside.
• Cargo limits: For commercial freight, the liability cap is calculated by weight at 26 SDR per kilogram (approximately C$49 per kg).

High-density, high-value items like electronics, jewellery and precious metals far exceed this per-kilogram rate, creating a massive coverage deficit unless extra protection is purchased in advance.

Common consumer assumptions and coverage gaps

This discrepancy between consumer expectation and legal reality routinely impacts specific groups of travellers:

• Couples travelling with wedding attire, rings or gifts for destination ceremonies.
• Business travellers carrying expensive devices, trade samples or specialized equipment in checked luggage.
• Individuals relocating internationally with family heirlooms or valuables.

Many travellers assume that travel insurance attached to a credit card or a standard airline bag tag guarantees full reimbursement. However, airline liability limits remain separate from private insurance, and baseline travel policies frequently exclude or heavily cap coverage for currency, high-end jewellery and commercial goods.

Essential steps before checking valuables or shipping cargo

• Carry high-value items in cabin baggage: Keep jewellery, electronics, cash and essential documents in your carry-on to bypass checked luggage liability caps entirely.
• Declare excess value when shipping: If sending high-value cargo, formally declare the contents’ full monetary value with the carrier and pay the required surcharge upfront to raise the carrier’s liability limit.
• Secure specialized insurance riders: Purchase dedicated scheduled personal property riders through home, tenant or specialized travel insurance rather than relying on baseline carrier coverage.
• Maintain proof of value: Retain receipts, professional appraisals and photographs. Without documentation, claims are processed strictly according to statutory formulas rather than estimated item value.
• Observe strict reporting windows: File missing or damaged baggage reports immediately upon arrival. Formal written claims must generally be submitted within 21 days of a bag being declared lost.

The bottom line

As the litigation between Brink’s and Air Canada demonstrated, even major commercial shippers backed by legal teams cannot recover losses beyond statutory treaty caps if formal declarations were not made upfront.

Individual passengers have even less leverage after a loss occurs. The practical takeaway is to evaluate the contents of your luggage before departing: if your checked belongings exceed roughly C$2,858 in total value, carry them on board, secure separate insurance or formally declare their value with the airline before check-in.