Hmmm.. Who's the contractor? This miserable excuse of a customer service person in the AA baggage dept. has an employer.
BTW, I am no lawyer, but I am surprised to hear that attempting to arrest soene on false pretenses - twice, at that - is not somehow a violation of some law.
I do hope AA comes to its senses and makes some attempt at restitution for your baggage and compensation for your aggravation and abuse at the hands of their contracted agency.