In a landmark ruling, Air Canada (AC) has been ordered to pay $18,500 to security company Brink’s after a $20 million gold shipment theft at Toronto Pearson International Airport (YYZ) in 2023. The Federal Court’s decision underscores the airline’s limited liability under the Montreal Convention, despite the massive financial loss.
Air Canada’s Liability in the Gold Heist
The theft occurred on April 17, 2023, when a shipment from Zurich containing 6,600 gold bars and $2.5 million in foreign currency was offloaded at Air Canada’s cargo facility in Toronto. However, by the time Brink’s representatives arrived to collect it, the shipment was missing.
Key Developments in the Case:
- Suspects: Peel Regional Police charged 10 individuals, including a former and a current Air Canada employee, for their involvement.
- Modus Operandi: One suspect used a fraudulent airway bill to access the cargo and load it onto a truck, which then vanished.
- Recovered Gold: Police believe some of the stolen gold was melted into bracelets, with six pieces worth $89,000 recovered.
- Remaining Gold: The majority of the gold remains unaccounted for, with some suspected to have been melted in a Toronto-area jewelry store basement.
Despite Brink’s seeking full compensation, the court ruled that Air Canada’s liability is capped under the Montreal Convention, limiting the airline’s financial responsibility.
Brink’s Allegations Against Air Canada
In its lawsuit, Brink’s accused Air Canada of negligence, arguing that the airline’s staff:
- Allowed an unauthorized person to collect the shipment.
- Failed to verify the fraudulent airway bill.
- Did not follow proper security protocols for high-value cargo.
Air Canada’s Defense
Air Canada denied the allegations, asserting that:
- It fulfilled its contractual obligations for secure cargo handling.
- It did not act negligently in managing the shipment.
The airline argued that Brink’s did not take additional security measures, which could have changed the legal outcome.
Court Ruling & Montreal Convention Limitations
Federal Court Judge Cecily Strickland ruled that Air Canada’s liability is restricted under the Montreal Convention, an international treaty that limits airline responsibility for baggage and cargo loss unless:
- The shipper makes a special declaration of interest in the cargo.
- An extra fee is paid for enhanced security.
Since Brink’s did neither, the court capped Air Canada’s liability at 9,988 Special Drawing Rights (SDRs), which equates to $18,500—a fraction of the stolen shipment’s value.
The Significance of the Toronto Gold Heist
The 2023 Toronto gold heist is considered one of Canada’s largest cargo thefts. The incident has raised serious concerns about security at major airports, particularly regarding:
- Lax verification protocols for high-value shipments.
- Internal security breaches, as employees were involved in the theft.
- The effectiveness of airline liability laws in protecting financial interests.
The case highlights the risks associated with transporting valuable cargo and may lead to stricter security regulations for high-value shipments in the future.
While Brink’s sought full reimbursement for the $20 million gold theft, the Federal Court’s ruling under the Montreal Convention has significantly limited Air Canada’s liability. The airline will only have to pay $18,500, despite the massive financial loss.
The Toronto gold heist remains a high-profile case, with the majority of the stolen gold still missing. The investigation continues, raising critical questions about security protocols and the legal limitations of airline liability in cargo transport.
