Legal Summary
The Jakubecs brought a civil lawsuit against Air Canada seeking damages for pain and suffering as a result of the death of their dog Sila while in Air Canada's control. The lawsuit claimed that Sila likely died of carbon monoxide poisoning (confirmed by autopsy report), and that Air Canada's negligent actions caused this. Damages were claimed because that is virtually the only remedy you can seek in a lawsuit, and as a way to send a message to Air Canada that it ought to take more care in its handling of animals, so as to avoid this penalty in the future.
Air Canada's tariff rule says it is excluded from all liability for any injury, sickness, loss or damage to or death of any animal in its control - regardless of the cause or fault. But the Jakubecs argued that since they were never notified by Air Canada of this rule (until after Sila was killed) Air Canada could not rely on it to avoid liability.
Historically, Canadian courts have failed to award much in the way of damages for pain and suffering to people from the loss of a companion animal, and have instead only awarded “market value” of the animal. This equates the animal to a piece of furniture, and suggests its only value is what was paid for it (meaning pound animals are worthless, under this theory). However recently courts have started to catch up to reality and have awarded pain and suffering damages for loss of an animal caused by someone else - but the amounts are still too low.
The Jakubecs settled the case with Air Canada, given the high costs of going to court, and the risks of getting a judge who was not prepared to follow the recent trend.