[jimworcs]

That is outrageous. I would certainly fight. You should also write to British Airways.

There is no indication that our reservations personnel rebooked you on British Airways flight 214. When you checked in at the British Airways counter, they should not have allowed you to check in for the flight knowing there was not a ticket number issued for the flight. At that time, you should have been directed back to the American Airlines ticket counter. I apologize for their error.

The very fact that BA allowed you to check in, and issued a boarding pass, before you had paid any money proves that AA must have recorded something to have put you on the flight. BA would not have allowed you to proceed without something indicating you had a booking. I would definitely take this to court. IT IS SCANDALOUS and that reply is a disgrace.

We can not refund money we did not collect.

That is quote is disingenuous. They need to work with their "partner" and sort it out. Passing the passenger from pillar to post is outrageous. AA and BA/Iberia have just received approval for closer tie up.

By the way, I would write and tell them that you do NOT accept the 20,000 miles as compensation. They could argue in court that you had settled by accepting the miles.