Not sure AA can sustain their position on compensation for personal belongings if you are able to prove that you don't live in LA. I would consider a complaint to the DOT over that issue. As for the rest, the airlines seem to be adopting a position in which they are not responsible for anything that happens to your luggage. Your only recourse is bad publicity. Unless you are talented, like the United Breaks Guitars guy on Youtube. Suddenly United wanted to compensate him...and apologise. Funny that...
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