Legal Definitions - Agreement Relating to Liability Limitation of the Warsaw Convention

The Agreement Relating to Liability Limitation of the Warsaw Convention 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.

The Montreal Agreement was the result of negotiations in 1965 and 1966 following the United States' denunciation of the Warsaw Convention. The low liability limits set by the convention were the primary reason for the denunciation.

For example, if a passenger is injured or killed during a flight originating, stopping, or terminating in the United States, the airline is absolutely liable for damages up to $75,000 per passenger, regardless of whether the airline was at fault or not.