NEW YORK, Jan 16 (Reuters) - Victims of the Italian
cruise ship disaster who might seek to sue in the United States,
where damages lawsuits are a virtual industry, may be barred
from doing so.
The primary reason, legal experts said, is that contracts
written into the tickets state that lawsuits must be brought in
the courts of Genoa, Italy.
The contracts allow exceptions in the case of voyages to
U.S. ports. But the cruise that ended in tragedy on Friday had
just left the port of Civitavecchia near Rome headed for
Barcelona and Majorca.
The ship, one of the biggest passenger vessels ever to be wrecked, foundered after striking a rock. Six bodies have been
found and 16 are missing among the 4,200 passengers and crew.
U.S. citizens seeking to bring claims against cruise
operators have tried to challenge similar contracts in the past,
arguing it is too burdensome to litigate in a foreign country.
But courts have generally upheld the contracts, according to
maritime law experts.
In August 2010, for example, a federal appeals court
affirmed the dismissal of a lawsuit against Regent Seven Seas
Cruises, whose contract required claims over voyages not
involving a U.S. port to be brought in Paris. Nina Janet Seung,
who suffered injuries while on board a Regent cruise within
French Polynesia, claimed she was financially unable to bring a
lawsuit in Paris and that her medical condition prevented her
from traveling there.
But the 11th U.S. Circuit Court of Appeals found that her
arguments were insufficient to override that part of the
contract. The 11th Circuit has appellate jurisdiction over
federal courts in Alabama, Florida and Georgia.
Carnival Corp, the Miami-based parent of operator Costa
Crociere, is also unlikely to face criminal liability in the
United States, since the incident happened in Italian
territorial waters, legal experts said. Most U.S. criminal laws
are not applied outside the United States.
"In the case of Costa, the litigation in the United States
is going to be severely limited," said Jason Margulies of the
law firm Lipcon, Margulies, Alsina & Winkelman, which
specializes in maritime law.
Nevertheless, some U.S. lawyers said the unique
circumstances of this case may merit a challenge, even though
past case law is not on their side.
"When the stakes are high, it makes certain legal battles
worth going forward with," said Brett Rivkind, an attorney with
Rivkind & Margulies, who represents victims in cruise incidents.
LIABILITY CAP
Even if U.S. citizens who suffered injuries aboard the ship
were able to bring a lawsuit in U.S. courts, their damages may
be limited. Under the Athens Convention, which limits the
liability of cruise operators, the cap currently stands about
$80,000 per person, according to legal experts.
One way plaintiffs may be able to overcome this cap would be
to prove willfulness or recklessness, which may be possible in
this case, said attorney Tonya Meister-Griffith of Meister Law.
For example, she said the passengers may be able to show that
the captain was reckless in navigating the ship.
The captain, Francesco Schettino, was arrested on Saturday
and accused of manslaughter and abandoning the ship before all
of the people were evacuated.
"I think there are some good facts in this case to argue
that it doesn't apply," said Meister-Griffith.
Crew members who suffered injuries aboard the Costa will not
have any easier time getting their cases heard in U.S. courts.
Most cruise operators have contracts with their crews that
require them to arbitrate any disputes. U.S. courts have
routinely upheld those provisions, according to maritime law
experts.
The leading case law was established by the 11th Circuit in
a case stemming from a steam boiler explosion on the S/S Norway
on May 25, 2003, in the port of Miami. The estates of six crew
members who were killed in the incident and four members who
were injured sought damages under U.S. maritime law against the
owner of the ship, Norwegian Cruise Line Ltd and its parent,
Star Cruises.
The crew members argued that the part of their employment
contracts that required them to arbitrate their cases was
unfair. They also said their claims could not be adequately
arbitrated in the Philippines, where their contracts were
executed. But in a decision issued on Jan. 25, 2005, the 11th
Circuit affirmed a lower court's order mandating arbitration.
(Reporting by Andrew Longstreth)
Follow us on Twitter: @ReutersLegal