Legal battle unfolds over Toronto airport gold heist

It is suggested stolen cargo did not have insurance coverage

Legal battle unfolds over Toronto airport gold heist

Insurance News

By Mika Pangilinan

An unsolved heist that occurred in Toronto’s Pearson International Airport has sparked a legal dispute between Air Canada and American cash-handling company Brink’s.

The incident involved the theft of 24 gold bars and around $2 million in cash from an airport cargo warehouse, according to a report by The Guardian, with the perpetrators reportedly making use of a fake waybill to claim the cargo.

Legal filings made by Brink’s in October have alleged that Air Canada’s lax security measures created a 42-minute window in which the thieves were able to falsely claim the gold bars and over 50 kilograms of cash stacks.

Air Canada has recently countered this claim, stating that Brink’s failed to declare the true value of the cargo during its transportation from Zurich to Toronto and was thereby unable to secure insurance coverage.

Both companies cited the Montreal Convention, which governs air transportation and sets limits on compensation for lost cargo.

According to Air Canada, the Montreal Convention imposes a financial liability cap. It referred to the damage claims made by Brink’s as “excessive” and “too remote.”

Conversely, Brink’s argued that there is no limit to the compensation it is entitled to under the Montreal Convention. The company also asserted that it paid extra for added security measures, in addition to requesting “special supervision” and marking waybills to alert Air Canada staff about what the cargo contained.

A police investigation regarding the incident is ongoing, according to the Canadian Press.

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