Just out of curiosity, how much room do they actually have in those luggage compartments? I think the OP's main argument here was that they could have stored the pets or her car seat in some other location so that her property would not be damaged. Was this not possible due to lack of space?
Also, why shouldn't cleaning costs be considered damages? Don't the airlines charge an extra fee for pets precisely because they know they're going to be cleaning up the expected extra mess? Under the circumstances, shouldn't the passenger with soiled baggage be entitled to some form of compensation, since the airlines are already getting extra money for the pet mess anyway?
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