Hi,

I have a small problme which Air Canada will not properly attend to. They directed me to send a ticket for refund from California, where I purchased it, via registered international mail to Calgary. I never received my refund. They say they mailed it - REGULAR mail. They won't replace or reissue it or do anything for me - essentially I'm just out $500.

I want to file a small claims, but I am having a problem. I cannot find an agent for service of process for Air Canada Corporation in California. They only listed jurisdiction I find (I'm using Westlaw public records search) is for Washington DC.

Has anyone successfully sued a foreign carrier for a breach of contract dispute in a USA state small claims court? I am thinking maybe some international convention limits their liability and immunizes them from suit in state court? This would be weird, because they do business in and enter into contracts in California, and it would be strange for them to not have an agent for service of process here.

If anyone has any advice, thanks very much.

Try searching the LLC records at the California Secretary of State's website. There were five entries for various Air Canada LLC's, all listing CT Corporation System as the registered agent for service of process.

California's "long-arm" statutes probably also allow you to serve process by certified mail or via the Secretary of State's office.

For small-claims court purposes, I'd also send, by certified mail return receipt requested, a copy of the court-filed complaint to Air Canada's legal department. This will do two things: First, they might cut you another refund check instead of going to the trouble of finding a local attorney to learn about the case and appear in small claims court. Second, they'll be much harder-pressed to argue before the court that you sued the wrong Air Canada entity since the legal department probably handles work for all the Air Canada entities.

If you do sue Air Canada in small claims court, issue a subpoena to Air Canada for any copies they have of the refund check. If they can't show the check has been paid, then they would be hard pressed to argue why they can't stop payment on the existing check and cut a new one. If they show that the check has been paid, then there'd be a problem with a forged endorsement.

Rest assured, you won't have to travel far if you want to sue Air Canada. They may be able to remove the case to federal court based on a federal or international law, but I seriously doubt that would happen. There's a reason why there's a saying, "Don't make a federal case out of it." It's because federal court cases require a lot more attorney time and thus a higher bill for legal fees.

There must be a mistake. Air Canada is an ethical corporation.

From personal experience, I've found AC to be very good with refunds.

Are you sure you are dealing with the right department? The AC refunds office is in Winnipeg (not sure why they directed you to Calgary). I'd give them a call and restate your case, see if it gets you anywhere. At the very least they should be able to stop payment on the original check, and issue you a new one. You did keep copies of the tickets, and the proof that you mailed them in didn't you?

http://www.aircanada.ca/contact/refunds.html


[This message has been edited by skofarrell (edited 11-21-2001).]

Air Canada stinks. Its rotten. Its terrible. I would rather fly on China Airlines than take them. Staff are rude, phone lines are always busy, they never respond to letters or comments. I have sent three letters certified mail over three years and have never received a response. They are also TERRIBLE with returns and lost luggage claims. I would rather waste three hours to fly on UA than to take a direct AC flight. Its not suprising that so many airlines are having trouble.

If you win your claim please share with the rest of us. Perhaps we can learn from your experience.

Hey tfung you're nuts.

Well, I cannot opine as to whether AC is ethical or not ethical because I have never had a dealing with them outside of the current transaction. However, I can say that i think they are handling THIS transaction unethically.

Here are more details.

I did find those 5 LLCs. I mailed my refund, as directed by Air Canada, via Registered international mail on 9/5/01 to Calgary. They told me to use Registered so there would be no problem with the ticket getting lost in the mail. When I had not heard from them in over one month, on 10/8/01 I did two things: I sent an email to the refund services office and a fax to the customer solutions office. I did not receive any reply to any of those two contacts either. I tried to get a phone number for a live person but I was unable to actually reach a human being. I could only get email and fax numbers.

Therefore, on 10/15/01, I filed a small claims suit in California, listing 2 defendants: one of the LLCs (Air Canada 1995-15-NB, LLC), which I did find a proper CA agent for service of process for, and also Air Canada corporation, and I served this to CT Corporations Systems, which was the LLC's agent and is the agent for about 50% of foreign corporations doing business in California. (CT is also Air Canada Crop's agent in the Wash DC jurisdiction). I knew pretty much for sure this was bad service for the Corporate entity, but I figured I would give it a try because it only was another $7 on my filing fee.

CT returned a letter to both me and the court saying service on the Corporate entity was improper.

The suit being next week, I took one last try to settle. I wanted to contact Air Canada's office of corporate counsel, but I was not successful in getting a contact number, fax or email to there. Therefore, I sent (i) another fax to customer solutions and (ii) a fax to the Ombudsman.

The Ombudsman's office replied that they could nto assist me, since I never received a final disposition from customer solutions! (Pretty clever - one arm refuses to answer my correspondence then the other says I can't be assisted because I don't have final disposition from the first arm!).

I did not receive a reply from customer solutions (but, see below).

Next, I receive a call today from Bank of America's corporate counsel's office telling me that Air Canada 1995-15-NB LLC has nothing to do with Air Canada, it is a Bank of America entity which holds the debt for a leveraged lease on one Canadair regional jet. I believe this to be correct and ethically, I had to agree to dismiss as to this defendant.

I am therefore left with one defendant with no good process and another which is basically not the entity I was in privity with. I have no evidence that the LLC entity is a sub of the Corporate entity. In fact, Bank of America faxed me documents which seem to show otherwise.

That's when I cam to Flyertalk. I am trying to figure out who the hell I can get my money from.

My local small claims says I cannot long arm a corporation into small claims in California. This seems bogus to me, but I'm not sure.

I should note that someone named Kim Swam from Air Canada also called me today. She told me she would "see what she could do." I am not sure if she is in the corporate counsel's office or not. She was not very nice. After all this, I would think they would bend over backwards just to give me my refund. I think she is going to take the position that since I sued and have no good defendant, I can go to hell.

They seem to be "mad" that I sued. What else was I to have done? They would nto help me.

I also filed a DOT complaint in this matter.

So any additional help is much appreciated.

I forgot to mention one thing. I learned from the Ombudsman that Air Canada claims to have sent mail back to me on 9/21/01. I never received it.

It is kind of curious that they tell me I have to pay for registered mail so things don't get lost, then they use regular mail, and when it gets lost/misdelivered/whatever, they refuse to help.

I guess what AC is saying is that they never received your tickets. If you kept a copy of tickets, can't you send them another copy or better yet go to a customer ticket office?

It is a problem. As far as the airlines are concerned your ticket is like money. At the worst, can't you just say it was lost and pay their fee and get the net back. Do you have a receipt for the registered letter. While you can't prove what was in it, if they accepted it, don't they have to fess up what they think was in it? I just don't see why you can't get better cooperation from AC.

Some of the airlines lurker on FlyerTalk. You might move this over to the AC board and tell your tale of woe.

[This message has been edited by VicOsaki (edited 11-21-2001).]

Have you tried calling the refunds office in Winnipeg?

No, they admit getting the ticket.

They say they mailed me back my reply mail.

I have registered mail confirming delivery of what I sent; they did not bother to reply using registered mail.

I have copies of everything I sent and I have faxed this to them several times (to customer solutions twice, to refunds once, tot he ombudsman once). They refuse to do anything else.

Still not understanding. Did they say they sent your tickets back, or did they say they sent you a check?

I'm not actually sure. I would hope they mailed me a check, though I suppose they may have mailed me my ticket back. Either way, I sent them a valuable item and I got nothing in return. I would take a refund (preferred) or at least a credit, at this point.

"I forgot to mention one thing. I learned from the Ombudsman that Air Canada claims to have sent mail back to me on 9/21/01. I never received it."

Since AC admits it send you something. It can only be one of two things. Your original ticket or a check. If it was your original ticket that is lost, then I guess you put in a claim for a refund of a lost ticket. I certainly wouldn't pay their charge. If it was a check. They should just stop payment on it, and issue you another one. What am I missing. It's crucial that you find out what was in the envelope that they sent you.

When you spoke to them, did they say they mailed you a refund or returned your letter?

This is important because if they mailed you a check, and it was never cashed, you have proof there was a screw-up.

If they mailed you the ticket back, and you have record of the ticket number, they should be able to track the ticket through their audit department. If the ticket was not used, again you have proof that it was lost.

Of the two, I think you'll have an easier time if they mailed you a check.

Regardless, I'd start over by calling the Winnipeg number tomorrow, hopefully you'll get a kind rep that can help you sort things out.

I wouldn't mention the lawsuit to the Winnipeg rep.

[This message has been edited by skofarrell (edited 11-21-2001).]