Court Dismisses Breach of Contract Claims Against Southwest Arising from December 2022 Flight Cancellations
In Re: Sw. Airlines Co. Flight Disruption Litig., 2024 WL 4983147 (S.D. Cal. Dec. 4, 2024)
A California federal court applying Texas law dismissed the breach of contract claims asserted in a putative class action brought against Southwest Airlines arising from Southwest’s cancellation of flights during the 2022 holiday season.
The plaintiffs, individuals who purchased Southwest tickets on canceled flights, alleged that Southwest breached various provisions in its contract of carriage.
As to canceled flights, Southwest’s contract of carriage provided in pertinent part:
In the event the Carrier cancels or fails to operate any flight according to Southwest Airlines published schedule, or significantly changes the schedule of any flight, or there is a significant delay, Carrier will, at the request of a Passenger with a confirmed ticket on such flight, take one of the following actions:
Transport the Passenger at no additional charge on Southwest Airlines’ next flight(s) on which space is available to the Passenger’s intended destination, in accordance with Southwest Airlines established re-accommodation practices or
Following a request by the Customer, refund the unused portion of the Customer’s fare…
Further, Southwest’s contract of carriage limited Southwest’s liability. The contract of carriage provided:
Unless specifically stated otherwise herein or where any limitation would expressly violate any applicable law, the Carrier shall not be liable for any consequential, compensatory, indirect, incidental, or punitive damages arising out of or in connection with the performance of its obligations under this Contract of Carriage.
As to Southwest’s failure or delay in operating a flight, the contract of carriage provided:
Except to the extent provided [in the contract of carriage], the Carrier shall not be liable for any failure or delay in operating any flight, with or without notice, for reasons of aviation safety or when advisable, in its sole discretion, due to Force Majeure Events, as defined above. For the avoidance of doubt, under no circumstances will Carrier be liable to Passenger or Customer for consequential damages.
The plaintiffs argued that Southwest failed to provide them with travel accommodations within a reasonable period after their flights were canceled. They argued that such accommodations were required within a reasonable time because, under Texas law, if a contract is silent as to the time fixed for performing an act, there is a presumption that the parties intended the act to be performed within a “reasonable time.”
The court found that Southwest’s Contract of Carriage did provide a fixed time to provide an alternative flight in case of a flight cancellation and, therefore, was not subject to the “reasonable time” requirement under Texas law. Expressly, Southwest agreed to transport passengers on its next available flight to the passenger’s intended destination. The plaintiffs did not allege that Southwest had space available on alternative flights to their intended destination that were not offered to them.
The plaintiffs further argued that Southwest breached its contract of carriage by failing to provide ticket refunds within seven days for canceled tickets purchased with credit cards based on Southwest’s reference to its compliance with applicable regulations in its contract of carriage.
The court found that Southwest’s reference to the need to comply with applicable laws and regulations in its contract of carriage was insufficient to create a self-imposed obligation to comply with such laws and regulations. Southwest’s contract of carriage did not specifically identify the DOT regulations for refunds, nor did the contract indicate any intent to incorporate such rules.
Even if Southwest had breached its contract of carriage, the court found that Southwest’s limitation of liability provision was valid and precluded recovery of damages on top of the refunds already provided by Southwest.
