Awarded $3,100 In Damages In Breach-Of-Contract Suit

In hindsight, Continental Airlines probably wishes it had bumped someone else -- anyone else-- off a Christmas 2004 flight from Newark, NJ to Telluride, CO. Instead, the airline bumped Thatcher A. Stone and his daughter from the overbooked plane.

Big mistake, as Stone is a New York-based aviation attorney, according to the Washington Post, as well as a University of Virginia law professor. After sending Continental two complaint letters asking for greater financial compensation that just the cost of the tickets, Stone sued the airline in small claims court over breach of contract.

(Quick show of hands: who didn't see that one coming?)

The incident began last year, when Stone and his 13-year-old daughter, Rebecca, were heading to Telluride for a week-long ski trip. They checked their luggage and skis, and proceeded to their gate -- but as the flight was boarding, Stone and his daughter were told to step aside.

They had been bumped, as no amount of free drink coupons or travel vouchers could convince two other passengers to give up their seats on the overbooked -- as many holiday flights are -- airliner. When that happens, airlines are allowed to bump passengers without their consent.

While Stone was eligible for a $400 reimbursement under federal law -- as the airline was unable to find the two another flight out until two days later -- that amount was hardly enough. According to Stone, he was out $1,350 alone on the non-refundable lodging deposit.

And to make matters worse... remember those checked bags and skis? Yep, they made it to Colorado, making it impossible for Stone to book an alternative ski trip elsewhere -- he and his daughter had no winter clothing.

Continental refunded the $2,000 cost of the two airline tickets, according to the Post. Stone maintained, however, the loss cost him much more than that, and the lawyer sent two letters demanding that Continental reimburse him for the deposits on the ski lodge, lift tickets, and equipment rental, as well as compensation for the lost luggage.

Continental offered an additional $800; in response, Stone sued the airline, and a jury awarded him $3,100 for his trouble -- not a typical result in such cases.

What made the difference, according to Manhattan Civil Court Judge Diane A. Lebedeff, was that Stone sued Continental not for fraud, but for breach of contract -- which is allowed under New York law if the passenger bought a ticket, was denied boarding, refused the airline's compensation offer and suffered damages.
 
"It is well settled that an award for inconvenience, delay and uncertainty is cognizable under New York law," Lebedeff wrote in her 13-page ruling. Lebedeff ruled that Continental failed to offer any compensation to Stone in writing, which was required by law.

In the end, Stone was awarded $1,360 for the non-refundable lodging expenses, $1,000 for his delay and $750 for the loss of the use of the contents in his luggage. The judge also added interest to the monetary awards from Dec. 25, the date of the bumping.

Continental spokesman David Messing declined to comment on whether the airline planned to appeal the ruling -- but he did maintain the airline acted within the letter of the law.

"We are always sorry when this happens, but the Department of Transportation allows overbooking of flights because so many airline customers book flights and then do not show up without previously canceling," Messing said in a statement. "If an oversale occurs, we try to offer alternative flights, refund the ticket, help make other arrangements, or offer some form of denied boarding compensation, but that is not always acceptable to the customer."

While it remains unclear if his case will set a precedent allowing passengers to sue if they get bumped from a flight, Stone urges all passengers to be aware of their rights whenever they fly on a commercial airline.

"Figure out your costs, put all of that together in a letter, and send it to the airline," the attorney said. "If they tell you no, go to small claims court, where you can fight them yourself."

"They were betting that Thatcher Stone was some ignorant [jerk] who didn't know how to get money out of Continental," Stone added. "They picked the wrong guy."

FMI: www.continental.com