Customers Seek Compensation For $26k Shopping To Replace Lost Luggage

A couple who lost a suitcase full of expensive clothes on a flight to England have lost their argument that Air New Zealand should repay the $26,000 they paid to replace them.

The pair, referred to in court proceedings only as Mr and Mrs Green, flew to England in November 2015 to attend an important event and related social functions.

When they arrived, they discovered their suitcase was stuck in Los Angeles. They did not receive it for nine days.

The couple was told by staff that they could replace the missing items but should keep the receipts.

Mrs Green said she specifically asked whether the clothing could be replaced on a "like-for-like" basis and was told it could.

The couple spent more than $26,000 on replacing the items they had lost. They recovered $1900 from an insurer on a travel policy and sought the rest from Air New Zealand.

They brought a claim in the Disputes Tribunal for $15,000, the extent of the Tribunal's jurisdiction.

Air New Zealand did not argue that the clothes bought were similar to those lost but said the reimbursement was governed by the Montreal Convention, which covers airline's compensation payments, and limited to $2125.90.

But the Disputes Tribunal hearing found the Greens should be reimbursed the full amount because Air New Zealand had made a representation they relied on to their detriment.

Air New Zealand made an application for judicial review of that decision, heard in the High Court. It argued the case would set important issues of principle and precedent.

The judge in the Christchurch High Court found the Disputes Tribunal had made an error of law and set the claim aside.

Air New Zelaand will only have to pay the amount the $2125.90 specified in the convention.