To: The OP, please take a look at this:
"Section 254.4 states that an air carrier “shall not limit its liability for provable direct or consequential damages [emphasis added]” relating to lost, damaged or delayed baggage to less than $3,300 per passenger. To meet the requirements of Part 254 and the requirements implicit in 49 U.S.C. § 41712, carriers should remain willing to cover all reasonable, actual and verifiable expenses related to baggage loss, damage or delay up to the amount stated in Part 254."
This is an excerpt from a DOT regulation.
There is a thread on this forum started by PHXFlyer headed "
Government to airlines: limiting lost-luggage compensation “a violation” of regulation" on 10/10/09 in the General Discussion section from which you can find the DOT notice.