Ontario judge condemns WestJet’s attempt to include gag order in settlement offer
In a recent landmark decision that could have far-reaching implications for air travel passengers, a 72-year-old Ottawa man, Andrew Douglas, took WestJet to small claims court over a dispute that began more than three years ago. What started as a fight for compensation has now resulted in a ruling that condemns airlines’ use of non-disclosure agreements (NDAs) in settlement offers.
The saga began in January 2022 when Douglas was denied boarding on a flight to Cuba by WestJet, who incorrectly claimed he couldn’t provide proof of a negative Covid test. Despite presenting evidence from the Cuba Tourist Board of Canada that no such test was required, the airline refused to refund his ticket and instead offered him credit for a future flight.
Determined to seek justice, Douglas filed a claim in small claims court and refused multiple settlement offers from WestJet, all of which came with the condition that he sign an NDA. As the trial date approached, WestJet increased their offer but still insisted on the gag order, threatening consequences if Douglas proceeded to trial.
Ultimately, the judge ruled in Douglas’s favor, ordering WestJet to refund his airfare and cover his legal costs while condemning the airline’s use of NDAs. The judge criticized WestJet for trying to silence passengers and emphasized that there should be no strings attached to receiving compensation owed under the law.
Air passenger advocate Gábor Lukács hailed the decision as a victory for passengers’ rights, stating that airlines should not be able to force passengers into silence in exchange for compensation. The ruling sends a clear message to the airline industry that such practices will not be tolerated.
Legal expert Paul Daly praised the decision as well-reasoned and a win for air travel passengers, predicting that it could lead to more transparency in the industry. Douglas, who waited almost three years for his day in court, expressed satisfaction with the judge’s criticism of WestJet’s actions, calling it justified given the mistreatment he endured.
In addition to the financial compensation, the judge imposed a penalty on WestJet for delaying payment to Douglas, citing a power imbalance between the airline and an individual litigant. The ruling serves as a warning to airlines against using hardball tactics in disputes with passengers.
As the dust settles on this legal battle, Douglas is now turning his attention to advocating for stronger protections for air travelers. He has submitted a proposal to the Canadian Transportation Agency regarding the definition of “denied boarding,” hoping to further safeguard passengers’ rights in the future. The decision in his case against WestJet may serve as a precedent for future disputes, setting a new standard for how airlines interact with their customers.
