Aeronautics: Unlimited Liability

On tickets issued by most U. S. air transport lines is a contract clause reading: "In the event of the injury or death of the holder due to any cause for which this company is legally liable, the company's liability is limited to" $5,000 or $10,000. A 1931 award set the precedent that all planes operating on regular advertised schedules are "common carriers" like railroads, just as liable as railroads for the death or injury of passengers. Hence in most States the clause is meaningless except in a few Western States which limit liability...

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