Originally Posted by VegasGambler

That's because they generally don't sue. This is what courts are for -- to recover damages. If the damages are legitimate, that's not frivolous.

On one occasion (3 week trip) I had over $8000 worth of clothing in a single suitcase bag (2x $2000 suits, 1x $1500 jacket, 2x $700 pairs of shoes, several shirts @ $100-$200 each, assorted other clothing). I don't think that this situation is THAT uncommon. Now, had my bag been delayed 1-2 days, I probably would have asked for minimal compensation, but, had it been lost or stolen, I certainly would have been going through the courts if they tried to limit their liability at $3500.

Claims that "the law" limits their liability are incorrect. The DOT prevents them from limiting their liability to less than a certain amount. The law says that the airlines have to follow DOT regulations. There is no DOT regulation (and certainly no law) that limits their liability to $3500. They may, in their CoC, attempt to limit their liability to $3500. Whether that is enforceable is a question for the courts. It's certainly not frivolous to bring that question before the court.