Originally Posted by lkar

The problem is the law of collateral estoppel. Sometimes, if you fully and fairly litigate an issue, even if the stakes are low, and it results in a judgment, it can be used against you in future proceedings where the stakes are much higher. Any decision by an airline to litigate issues about its contracts, even in small claims court, is one the legal department needs to take seriously. The law of collateral estoppel is complicated and there are state variations. Presumably, AA had some reason to think this case would not result in any kind of future preclusion effect. But if not, you can turn small cases into big problems.