When Lost Luggage Turns Into a Legal Battle

Losing luggage while traveling is a nightmare that many passengers dread. It disrupts plans, adds stress, and often forces travelers to buy essential items out of pocket. But what happens when an airline refuses to reimburse those expenses?

For one Canadian traveler, Alaa Tannous, this unfortunate scenario took an unexpected legal turn when Air Canada sued him after he spent over C$3,000 (approximately $2,100 USD) replacing lost belongings. The airline initially offered only C$250 in compensation, a sum that Tannous found completely unreasonable.

Now, what started as a customer service issue has escalated into a federal court case, raising questions about airline compensation policies and passenger rights.

Lost Luggage: A Common Travel Headache

Losing baggage is a frustrating experience that most frequent travelers can relate to. According to a report by SITA, airlines mishandled nearly 26 million bags worldwide in 2022 alone. While most luggage is eventually recovered, passengers are often left stranded without essentials for hours—or even days.

This was the case for Alaa Tannous and his wife, Nancy, when they flew from Toronto to Vancouver in May 2022 with Air Canada. Upon landing, Alaa was informed that his luggage was missing and, worse, the airline couldn’t even determine its location.

The Canadian couple’s luggage was lost on the way to Vancouver in 2022 (**Getty Stock**)

“They couldn’t even track the luggage, if it was in Toronto or on the way,” he told CBC News. “I was under the impression that the luggage was gone.”

With no clear answers, Air Canada told the couple they could spend a reasonable amount on necessary items while waiting for their bags to be found.

How Much is ‘Reasonable’ When Replacing Lost Items?

Many airlines have policies allowing passengers to purchase necessities if their luggage is lost or delayed. However, what qualifies as a reasonable amount is often unclear.

In Tannous’ case, he and his wife spent over C$3,000 on essential clothing, toiletries, and other items before submitting the receipts for reimbursement. However, Air Canada initially offered just C$250, an amount that the couple rejected.

Unwilling to accept the low compensation, Tannous took the case to the Canadian Transportation Agency (CTA), which ruled in his favor, ordering Air Canada to reimburse him approximately C$2,400.

“I thought it was fair,” Alaa said, satisfied with the CTA’s decision.

But the saga didn’t end there.

Air Canada is suing a passenger after trying to claim over C$3,000 in compensation (**Kevin Carter/Getty Images**)

Air Canada Takes Passenger to Court

Fast forward to Christmas 2024, and instead of a holiday greeting, Alaa received legal documents from Air Canada, informing him that the airline was suing him in Federal Court.

The airline is challenging the CTA’s ruling, claiming that:

Tannous’ luggage was delivered less than 24 hours after he landed in Vancouver.
Some of the items he sought reimbursement for were purchased after his bags were returned.

In a statement posted on LinkedIn, Air Canada defended its lawsuit, stating:

“The customer’s bag was delivered less than 24 hours after their arrival. The flight landed at 11:08 AM on May 25, 2022, and the bag was delivered to their hotel at 9:15 AM on May 26, 2022.”

Additionally, the airline claims that some of the expenses filed for reimbursement included non-essential or luxury items, such as:

C$570 on toiletries
C$300 on lingerie and sleepwear
C$1,600 on clothing and underwear
C$433 on women’s sneakers (purchased the evening after their luggage was returned)
C$1,310.40 on a monogrammed Tumi suitcase (purchased three days later)

These claims raise key legal questions about what counts as reasonable expenses when luggage is delayed.

Some of the receipts reportedly showed purchases after the luggage was returned (**Getty Stock**)

Can Airlines Sue Passengers Over Compensation Claims?

Airlines rarely sue passengers over lost baggage claims, making this case particularly unusual. However, Air Canada argues that it has no choice due to legal restrictions.

“Under current law, Air Canada cannot appeal decisions by the Canadian Transportation Agency directly,” the airline explained. “We must appeal to the Federal Court instead. In this case, we are seeking guidance on what constitutes reasonable expenses that customers can claim.”

Despite the lawsuit, Air Canada clarified that it is not seeking legal costs from Tannous if it wins the case.

Social Media Reacts: Public Outrage Over Air Canada’s Move

As news of the lawsuit broke, social media users were quick to express their outrage. The case sparked viral debates across platforms like Twitter (X), Reddit, and Instagram.

On Twitter (X), one user wrote:

“Air Canada really lost someone’s luggage, refused to compensate them fairly, and now they’re suing the passenger? Corporate greed at its finest.”
— @TravelGripes

Another comment from r/Canada on Reddit read:

“Air Canada charges $40 for a checked bag, but when they lose it, they only offer $250 in compensation? Make it make sense.”

Instagram travel page PassengerShaming also chimed in, posting:

“Imagine paying thousands to replace lost luggage only to get sued by the airline… Absolute clown show 🤡✈️.”

The overwhelming sentiment online has been one of support for Tannous and frustration with airlines for their often poor customer service.

Should You Buy Expensive Items When Your Luggage is Lost?

While it’s understandable to want to replace essential items quickly, the Tannous vs. Air Canada case highlights the fine line between necessary spending and luxury purchases. But how do travelers navigate these tricky situations without risking compensation disputes?

Travel experts advise passengers to prioritize necessities such as toiletries, basic clothing, and undergarments. However, defining what’s essential versus excessive isn’t always straightforward—especially when traveling to destinations with varying weather conditions or attending important events like weddings or business meetings. For instance, if you’re attending a formal event, would purchasing formal wear be considered necessary or extravagant?

Airlines typically offer compensation for reasonable expenses, but without clear guidelines, travelers are often left in the dark. According to IATA’s Baggage Services Resolution, passengers are entitled to claim expenses for essential purchases, but what constitutes reasonable is often open to interpretation.

To protect yourself, consider:

Communication: Always confirm with the airline what items they will reimburse before making any purchases.
Moderation: Buy only what you need for the duration of the delay, not your entire trip.
Documentation: Take photos of your purchases and receipts, along with a timeline of your luggage delivery updates.

Additionally, purchasing expensive brands or luxury items like designer luggage could weaken your claim. Airlines may reject such claims unless there is a compelling reason for those purchases. If you’re unsure, stick to affordable, basic options until your luggage is officially declared lost.

Final Thoughts: A Cautionary Tale for Travelers

The Air Canada vs. Tannous lawsuit serves as a stark reminder of the frustrations travelers face when airlines mishandle luggage. What should have been a straightforward claim turned into a legal battle—costing both sides time, money, and public goodwill.

This case highlights the lack of clear guidelines surrounding lost luggage compensation, leaving passengers vulnerable to disputes. For many travelers, the lawsuit raises an important question: Are airlines genuinely seeking to uphold fair policies, or are they discouraging passengers from claiming compensation altogether?

With social media amplifying passenger experiences, airlines are under increasing pressure to deliver better customer service. Platforms like Twitter and Instagram have become battlegrounds where frustrated customers air their grievances, forcing companies to be more transparent in how they handle complaints.

For passengers, the key takeaway is to know your rights. Research airline compensation policies before your trip, keep all communication in writing, and don’t hesitate to escalate your case to regulatory bodies like the Canadian Transportation Agency or Department of Transportation if you’re not satisfied.

Ultimately, the outcome of this case could set a precedent for future compensation claims—shaping how airlines define reasonable expenses and how passengers are reimbursed. Until then, travelers must remain vigilant, patient, and prepared to advocate for their own rights.

Would you pursue legal action if your airline refused to reimburse your lost luggage expenses? Share your experience and thoughts in the comments below!

Featured Image Credit: Getty Stock Images