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In the 1983 case of Trans World Airlines, Inc. v. Franklin Mint Corp., the U.S. Supreme Court ruled on a dispute regarding an international air carrier's liability for lost cargo under the Warsaw Convention - an international treaty that governs certain aspects of commercial air travel. The Franklin Mint Corporation had shipped goods via Trans World Airlines (TWA), but some were lost in transit and others arrived damaged, leading to a lawsuit by Franklin Mint against TWA for compensation beyond what was stipulated as maximum liability under Article 22(2) of the Warsaw Convention. The main issue before the court was whether "other damages" referred to in Article 18 could include consequential damages resulting from loss or damage to cargo, thereby allowing claimants like Franklin Mint to seek compensation beyond limits set by Article 22(2). In its decision, however, the Supreme Court held that such consequential damages are not recoverable under Articles 18 and 22(2) of this convention. This ruling effectively limited airlines' liabilities for lost or damaged goods during international carriage by air according to terms specified within these articles of Warsaw Convention.
In the dissenting opinion for Trans World Airlines, Inc. v. Franklin Mint Corp., Justice Blackmun argued that the majority's interpretation of Article 18(3) of the Warsaw Convention was incorrect and inconsistent with its purpose and history. He contended that this provision should not be interpreted to limit liability only in cases where an airline has taken all necessary measures to avoid damage; instead, it should apply whenever an event beyond the carrier's control causes damage. Furthermore, he disagreed with the majority’s view on how U.S courts have historically handled these issues under international law conventions like Warsaw Convention - arguing they had been more flexible than what majority suggested. Finally, he expressed concern about potential negative implications of ruling for future cases involving air carriers' liabilities under international agreements.