Current Edition- California Business Practice

The Peacemaker Quarterly- April 2014

Thursday, January 19, 2012

Costa Concordia Cruise Ship Disaster

http://www.nytimes.com/2012/01/19/world/europe/cruise-lines-use-law-and-contracts-to-limit-liability.html

In regards to the recent Carnival Cruise Ship (Costa Concordia) Disaster-

Specifically to Professor Custin:

The New York Times article begins with humorous (but ultimately accurate) quote: "The wreck of the Costa Concordia has attracted those habitual companions of disaster: lawyers."

Carnival Cruise Lines must have had some pretty savvy attorneys draw up the contracts each passenger is mandated to sign upon purchase of cruse tickets, because the company is placing all blame of the disaster on the captain's negligence:

"For its part, the company is heaping blame on the ship’s captain, Francesco Schettino, calling the accident “human error” and contending that the captain diverted the ship from its authorized route...Such forceful criticism of the captain may be intended to help the company avoid liability under international agreements like the Convention on Limitation of Liability for Maritime Claims. The convention is referred to on the Web site of the International Maritime Organization as ‘a virtually unbreakable system of limiting liability” for the owners of ships after accidents.’"

Not only is Carnival relinquishing blame unto the captain, but the contract each passenger must sign is so ingeniously strict, that it is questionable what type, if any, lawsuit will be brought up in court against the company.

“Costa’s contract states that the line will pay no more in cases of death, personal injury and property loss than about $71,000 per passenger. It allows no recovery for mental anguish or psychological damages. It bars class-action suits.”

Also, because the cruise did not dock in a United States port, “the contract states, any litigation must be brought in Genoa, Italy, and be governed by Italian law.” This might discourage lawsuits from United States passengers. Moreover, the contract allows the company to take full advantage of international treaties or laws that favor the owner of the ship: “the Carrier shall be entitled to invoke whichever provisions provide the greatest limitations and immunities to the Carrier.”

Almost makes one reconsider travel plans including a cruise.

1 comment:

  1. I think it is well played...but ridiculous by the cruise line to totally side step responsibility. There is no way I agree with it as the company MUST know what is going on with their own cruise ship and its captain. But because or the very wordy contract that they have passengers sign, it seems that there isn't much passengers can do in terms of going after the company.

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