Cruise Law News Round Up: February 19, 2012

A rather ordinary couple of weeks in the world of cruising: 1,000 passengers or so sick with diarrhea and vomiting caused by gastrointestinal outbreaks on five cruise ships, 16 brawling passengers kicked off a cruise, a crewmember (a child activities supervisor no less) arrested on charges of molesting a child, a cruise passenger acquitted of rape due to jurisdictional loopholes, two passengers sentenced to 6 years in prison for smuggling pot, 3 passengers arrested for smuggling 13 kilos of coke, 1 dead and 9 sickened with flu on a cruise in Brazil, and another dead cruise passenger found face down in the water in the Cayman Islands.

All of this is in addition to the continued bad press caused by the Costa Concordia disaster.  The latest bad news out of the Concordia mess is that cocaine was found on a hair sample of Captain Schettino. The news is confusing because the captain's drug tests were reportedly negative.  The cocaine was allegedly found on the hair rather than in the hair - meaning that Schettino apparently did not ingest the drug.  These fine points will undoubtedly be lost on the public who now will associate the word "cocaine," along with "coward" and "womanizer," with the infamous captain.

Last week also saw the filing of an amended lawsuit against Costa and its parent company Carnival in the Miami-Dade courthouse in Miami.  You will recall that non-maritime lawyers from New York announced that they would be filing a "class action" lawsuit, which turned out to be be a dud. They finally filed suit on behalf of just 6 passengers, 2 from New York, Florida and Italy each.  The amended complaint adds an additional 33 passengers for a total of 39 plaintiffs.  The lawyers said that the media mis-characterized the lawsuit as a class action, even though their website advertised the case as a class action.

The lawyers filed suit in Miami, even though the passenger ticket requires the lawsuit to be filed in Genoa, Italy, because Carnival and its deep pockets are located here.  

The lawsuit now seeks $528,000,000, for just the 39 passengers.   

Good luck with that. 

Costa Concordia Cruise Ship  - Lawsuit 

Photo credit:  Reddit

39 Costa Concordia Passengers File $528 Million Lawsuit in Miami - Weird Press Conference Follows

Yesterday, New York lawyers for Costa Concordia cruise survivors filed an amended lawsuit in Miami, adding 33 additional passengers as plaintiffs.  The lawyers are seeking $78 million in compensatory damages and $450 in punitive damages for a total amount of $528 million on behalf of 39 passengers.

Although the lawyers called the original filing a "class action" lawsuit, the case was first filed by only 6 passengers, two from New York, two from Florida and two from Italy.  The amended filing does not seek class action status.

The prospects of this lawsuit filed in state court in Miami surviving a motion to dismiss is slim, Oceanos Sinkingnotwithstanding the ordeal suffered by the completely innocent passengers.  Seeking $528 million dollars for just 39 of the over 3,000 passengers seems like a publicity stunt. 

The lawyers held a press conference yesterday afternoon, which was one of the weirder developments in the Costa Concordia saga.

New York lawyer Marc Bern, of the law firm Napoli Bern Ripka Shkolnik and Associates said "Only one cruise ship has gone down in over 100 years, the Titanic.  Now the Costa Concordia will live in infamy with it." 

Of course, this is not true. Over the years there has been numerous sinkings of cruise ships.

Just five years ago, the Sea Diamond sank after the captain hit a charted reef in Greek water, resulting in the loss of passengers' lives. 

Then there is the infamous sinking of the Oceanos cruise ship (photo above left), where the captain abandoned ship leaving women, children and elderly passengers to die (they miraculously survived). 

The sinking of the Oceanos is featured on my list of top 5 cruise ship disasters - watch the video here

Other spectacular sinkings of cruise ships include the loss of the Sun Vista (photo below right) which burned and sank.

Sinking of the Sun VistaNo one can forget the sinking of the Andrea Doria, which ironically enough was home ported in Genoa, Italy where Costa is based.  It sank in the Atlantic after a collision with another cruise ship (my great aunt was a passenger and was rescued). 

The fire and sinking of the Yarmouth Castle resulted in nearly one hundred dead passengers and crew.

Add to this list, the sinking of the SeaBreeze I, the Majestic Explorer, the Al-Salaam Boccaccio, Explorer, M/V Saurav, Queen Of The North, Senopati Nusantara, M/V Bulgaria and the Mikhail Lermontov (which sank in 100 feet of water off the northern tip of New Zealand’s South Island after hitting a reef).  

One of the goals of the highly publicized $528 million lawsuit is supposedly to make cruising safer.  It's painful to watch non-maritime lawyers seek over one-half billion dollars for 39 survivors without acknowledging the numerous passenger and crew deaths caused by cruise ship sinkings over the years, from the Andrea Doria to the Sea Diamond

February 15, 2012 Update:  A friend emailed me and brought to my attention that I forgot to mention the fire and sinking of the famous Achille Lauro, which sank in 1994 in the Indian Ocean.  

Do you know of additional cruise ship sinkings?   Please leave a comment below.

Costa Concordia Survivors Face February 12th Deadline!

There is a lot of talk in the media about so-called "class action" lawsuits, arising out of the Costa Concordia cruise disaster, seeking hundreds of millions of dollars in compensation and other far fetched claims.  Most of these exaggerated claims are being made by lawyers who have absolutely no experience handling maritime claims.

What is not being discussed in the media is that the Costa Concordia survivors are facing a deadline as early as the end of this week. The deadline pertains to the passenger's claim for their lost luggage, clothing, electronics, jewelry and other personal effects.

According to the terms of the Costa Cruises passenger ticket, passengers must provide written notice to the company identified in the ticket for all claims other than physical or emotional injury, Costa Concordia Cruise Lawsuit Deadlinesillness or death within thirty (30) days of the incident.  Here is the pertinent language: 

" . . . The Carrier shall not be liable for any claims whatsoever, other than for physical or emotional injury, illness or death of the Passenger, unless written notice of the claim with full particulars is delivered to the Carrier or its duly authorized agent within thirty (30) days after the Passenger shall be landed from the Vessel, or in the case the voyage is abandoned within thirty (30) days thereafter.  No legal proceeding whatsoever, other than for personal injury, illness or death, shall be maintainable in any event unless filed within six (6) months after the Passenger shall be landed from the Vessel, or in the case the voyage is abandoned within six (6) months thereafter, and unless valid notice or service is effected upon the Carrier within 120 days after commencement of the proceeding."  (emphasis added) 

Thirty days from the January 13th incident is next Sunday, February 12th.  All passenger intending to make a claim for their personal belonging must send a  "written notice of the claim with full particulars" and deliver it to the carrier identified in the passenger ticket, or its duly authorized agent, within the next week.

If you don't send the notice in timely and to the correct company, the passengers risk not satisfying one of the "conditions precedent" necessary before a lawsuit can be filed.

The fact that Costa has offered 11,000 Euros (around $14,600) for a settlement does not extend a passenger's obligation to provide the required notice within 30 days.

The deadline again is Sunday, February 12, 2012. 

If you need assistance in sending the notice to the correct company and correct address, do not delay.  We will be pleased to assist you free of charge in sending the property damage notice in.

Our firm and our co-counsel, Glenn Holzberg, are also assisting about two dozen passengers who suffered physical and / or psychological injuries during the Costa Concordia disaster.

Unlike many non-maritime lawyers rushing to file suit in the U.S. (and are probably filing suit in the wrong jurisdiction), we are recommending patience to our client once they send in the necessary notices to the cruise line.  We will be negotiating directly with the cruise line to obtain fair compensation for those who have suffering emotional or physical injuries.  We are not charging a fee on any portion of the first $14,600 obtained by our clients.  All passengers are offered this amount and it would not be fair to obtain a percentage of what is already offered. 

Claims for emotional anguish and personal injury and death must be filed within one year, and require a notice letter being sent within 6 months.  

Claims for property losses must be filed in six (6) month for the date of the incident, after the aforementioned notice letter sent within 30 days.

If you are confused about whether to accept the Costa $14,600 offer, or need assistance preparing the correct forms, please send me an email jwalker@cruiselaw.com or give us a call.     

Are Lawyers Taking Costa Cruise Survivors Into Dangerous Legal Waters?

As rescue and recovery attempts continue to try and locate the bodies of passengers missing from the Costa Concordia disaster, law firms in the United States are moving forward to file class action lawsuits against Costa Cruises and its parent company, Carnival Corporation, in Miami, Florida.

One of the firms advertising for such cases and taking a high profile position is the New York firm of Proner & Proner.  On its page "Costa Concordia Passengers: We Are Here for You," the Proner firm states that it intends to seek "at least $160,000 on behalf of each of the passengers aboard Costa Concordia Class Action Lawsuit - Miaimithe ship at the time of the wreck. Those who were injured, as well as those with wrongful death claims, may be able to collect multiple times that amount." 

In a telephone interview with a local reporter in Miami, the Proner firm said it intends to represent passengers of "all nations" from "Peru to Shanghai."  It will be seeking to recover "millions" on behalf of the dead or missing passengers.  During the interview, the New York lawyer said a lawyer was flying to Miami to file the class action lawsuit and would include Carnival as a defendant.

Whoa Nellie!  Lets slow down and collect our thoughts for a second. 

Cases against cruise lines are governed by a specialized area of maritime law which is different than land based law.

The courts have applied maritime law to uphold certain contractual limitations set forth in the passenger ticket issued by the cruise lines.  These terms and conditions of the cruise passenger ticket are quite draconian in nature.  Take a minute and read one of our articles about this issue: Top 10 Shocking Clauses In Your Cruise Contract.

One of the most important contractual terms includes what is called a "forum selection clause."  This clause specifies where the lawsuit must be filed.  The cruise lines identify a location that it convenient for them and inconvenient for the passenger.  The location is usually where the cruise line is located, which gives the cruise line a home court advantage so to speak.  It is inconvenient, time consuming, and expensive for passengers injured during a cruise to travel to the location chosen by the cruise line to file suit.

The cruise lines have been successful in enforcing these type of clauses.  In the case of Shute v. Carnival, the United States Supreme Court required a passenger who lived in Oregon, and injured during a cruise from California to Mexico, to file suit here in Miami.  No the passenger terms and conditions are not fair, but they are routinely enforced.  

For the Concordia disaster, the Costa passenger ticket contains a clause specifying Genoa, Italy as the location for the lawsuit.  Most tickests issued by cruise lines based in Miami like Carnival and Royal Caribbean select Miami as the place where the lawsuit must be filed.  But Costa's ticket is different.  For Costa cruises which call on an U.S. port, the lawsuit has to be filed in Broward County in South Florida.  If the cruise itinerary does not include a U.S. port, the lawsuit must be filed in Italy.

Last year, we wrote about a similar situation.  In Seung v. Regent Seven Seas Cruises, a passenger was injured while cruising on the Paul Gauguin cruise ship, operated by Regent Seven Seas Cruises, in the Pacific Ocean.  After Ms. Seung filed suit in South Florida where the cruise line is based, the defense lawyers moved to dismiss the case arguing that the forum selection claim required the lawsuit to be brought in France.  The federal court here dismissed her case.  The 11th Circuit Court of Appeal affirmed the dismissal and held that the passenger, from California, had to travel to Paris to pursue her remedies.  Our article is entitled Cruise Forum Selection Clauses: Do You Speak French?

As soon as lawsuits are filed against Costa in this jurisdiction, the cruise line will move to dismiss the cases and will cite the Shute and Seung cases discussed above. 

The cruise line defense lawyers will argue that the lawsuits cannot be filed here.  The Costa company is incorporated in Italy and based in Genoa.  The cruise ship is flagged in Italy.  The disaster occurred in Italian waters.  The Italian Coast Guard responded.  The Italian authorities are investigating the cause of the crash and the casualties. The criminal proceedings are taking place in Italy.  The lawyers for the passengers will be hard pressed to explain why the cases should not be filed in Italy. 

The Costa cruise ticket has another curious twist.  It specifies that Italian law should apply.  For death cases, Italian law may actually provide for a more equitable remedy that the U.S. General Maritime Law and statutory law - particularly where the deceased passengers are retired. 

In the U.S., wrongful deaths on the "high seas" (non U.S, territorial waters, including territorial waters of other countries) are governed by a federal statute called the Death On The High Seas Act ("DOHSA").  There is no recovery under DOSHA for pre-death pain and suffering or emotional losses of the surviving family members such as grief and bereavement.  The only recovery is for financial losses such as lost wages of the decedent.   If the decedents are retired or children, then there are no recoverable damages except for burial and funeral expenses assuming the bodies are located. 

So if the wrongful death cases are filed in the U.S., and the court applies U.S. law, there may be no recovery in certain death cases.  Yet if the cases were filed in Italy, there could be recovery under Italian law.  A passenger could conceivably file suit in a more convenient forum in the U.S. yet receive no recovery; whereas if the passenger filed suit in a less convenient location in Italy there may be greater recovery in some cases.

Then there is the matter of Carnival.  Yes it is the parent company of Costa.  And yes, as the Proner lawyers mention to the news reporter, it collects over 14 and 1/2 billion dollars a year.  But  that does not automatically give anyone a basis to sue it in Miami every time one of its subsidiary company's cruise ships around the world suffer a casualty.  

There are often severe consequences of filing suit in the wrong location or against the wrong party, including the assessment of costs and in some circumstances attorney fees. 

We hope that the lawyers who are working faster than the recovery teams in Italy to file suit here in Miami know what they are doing and are not navigating their clients into dangerous legal waters. 

How to Hire a Miami Maritime Lawyer to Sue a Cruise Line

Each year 14,000,000 people (yes 14 million) will go on a cruise.  There are literally hundreds of passengers, as well as crewmembers, who will suffer a serious back injury or break their ankle, leg or hip after slipping and falling while cruising.  Once back home after the cruise, they find it difficult to think of hiring a lawyer who they have never met in order to sue a large corporation in a far-off location like Miami.

But the process of hiring a Miami maritime lawyer to bring a claim against a cruise line like Carnival or Royal Caribbean is simple.

Jim Walker - Miami Maritime LawyerOver 95 percent of our firm's clients live out side of Florida.  If you have a question about an accident on a cruise ship, send us an email.  You can reach me directly: jwalker@cruiselaw.com  

You will receive an answer to your email right away.  We will need answers to four issues: 

When did the accident occur?  Remember that you have only one year to file a lawsuit against a cruise line!  This is a much shorter period of time than most land based injuries.

Which cruise line and which cruise ship were involved?  The majority of the cases we handle are against Royal Caribbean, Celebrity, Carnival and Norwegian cruise lines.  These cases have to be filed here in Miami.  Other cruise lines like Princess Cruises have to be filed in California.  Holland America Line, for example, has to be sued in Seattle.  If we can't help you, we will find someone who can.

What happened and why is the cruise line responsible?  Be prepared to tell us not only how the accident occurred but why you think that the cruise line is liable.     

What injuries did you sustain?   The nature and extent of your injuries are important issues in your case.  Have you undergone surgery?   What type of medical treatment will you need in the future?  Once you retain us, we will quickly obtain copies of all relevant medical records and reports. 

If you prefer to call us, we look forward to speaking with you. We have a toll free number (800) 256-1518.  You will probably initially speak with one of our assistants, like Jan or Betsy (photo right, with client), who will ask you a few questions about the basic information listed above.  I will be pleased to answer any questions you may have.

If you decide to hire us, we work on a contingency fee.  This means that we do not bill you or ask for a retainer.  We are paid only if we are successful and obtain a settlement or a verdict.  You have nothing to lose. 

Miami Florida Maritime Law Firm We will send you four documents.

The first is the contingency fees agreement.  All lawyers who handle these type of cases must have a written contract with the client where everything is spelled out.  The second document is a statement of your rights as a client.  We will also send you a short questionnaire about your cruise accident.  The last document is a medical authorization so that we can obtain copies of your medical records.

We will email these items to you shortly after you email us or speak with us on the telephone.  Just fill out the forms and return them to us.  There is no need to travel to Miami to start your case.

One of the main reasons why cruise lines like Carnival and Royal Caribbean require that all claims be filed in Miami is that they know that it is inconvenient for injured passengers to do so.  That's why we make it easy for our clients to retain us.  Simply send us an email or make a single call.

I'm sure that you may have other questions, and I will be happy to spend as much time as necessary to provide answers for you.  I have been handling maritime injury cases since 1983.  Over ten years ago I was interviewed about the process of filing a claim against a cruise line. 

You can obtain additional basic information by reading the article here - Cruise Passenger Rights and Wrongs - Interview With Maritime Lawyer Jim Walker

Royal Caribbean Stock Fraud Lawsuits - What Did the Cruise Line Executives Know and When Did They Know It?

Two stock fraud lawsuits recently filed against Royal Caribbean Cruises have placed the cruise line's corporate ethics under the microscope.

In the case of Todd Roth v. Royal Caribbean Cruises, Ltd, Richard D. Fain, Brian J. Rice, and Henry L. Pujol, United States District Court, Southern District of Florida, Case No. 22783 - MSC, a stockholder alleges that the cruise lines withheld disclosing certain accounting errors dating back to 2009, misrepresented the company's financial status, and misled investors about the cruise line's financial future. The case was filed by the New York and Louisiana law firm of Kahn, Swick & Foti and the Florida firm of Vianale & Vianale.   

Richard D. Fain - Stock Fraud?The lawsuit alleges that on January 27, 2011, Royal Caribbean issued a press release where it made false and misleading statements that its fourth quarter results for 2010 were better than expected and it anticipated certain positive developments regarding its operations, expenses, costs, ratios and net income for 2010.  

On April 28, 2011, after the first quarter, Royal Caribbean again made misleading statements regarding its financial status.  The lawsuit alleges that CEO Richard Fain (photo left) falsely stated that "the year started off with a roar - strong bookings, low costs and solid profits - and in the first quarter every one of our brands exceeded its forecast . . . " 

However, on July 28, 2011,  Royal Caribbean suddenly and dramatically departed from its rosy projections regarding the company's financial operations.  The cruise line published a release revealing for the first time that it was performing well below expectations and that certain accounting errors (regarding treatment of interest income relating to amortization of certain financing fees) resulted in a drastic downward revision of the company's financial statements.

This news "shocked and alarmed" investors.  Royal Caribbean's stock price then fell precipitously in two days, from $35.75 to $30.50.  This development had a disastrous effect on the investments of individual shareholders.  The stockholder who filed suit, Todd Roth, had purchased 5,000 shares on July 26, 2011 at a price of $36.65 a share.  Three days later, with the stock trading at $30.50, he lost over $30,000. 

Included as defendants in the lawsuit are the CEO (Richard Fain), the Chief Financial Officer (Brian Rice) and the Corporate Financial Controller (Henry Pujol).  On January 28, 2011, the day after touting the financial strength of the cruise line, CEO Fain sold 200,000 shares at a price of $46.63 for a what the lawsuit alleges are total illicit proceeds of $9,326,000.  CFO Rice (photo right, below) quickly followed suit, selling 88,872 shares in the $46 to $47 range from February 1 - 14, 2011 for over Brian C. Rice - Stock Fraud$4,100,000 in illicit proceeds. 

Although not named personally in the lawsuit, Royal Caribbean President Adam Goldstein sold over 40,000 shares between February 1 - 16, 2011 - for a total of over $1,900,000.  Six other executives sold stock between January 28 and February 16, 2011, which combined with the stock sold by the named defendants totaled over $20,000,000.  

The lawsuit alleges that these individual defendants knew that the negative financial information had not been disclosed to the public and was being concealed, and they were participants in a "fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of Royal Caribbean securities . . . "      

Earlier this year, in an article entitled Royal Caribbean Executives Get Richer While Crew Members Get Poorer, I reported that  Royal Caribbean increased its 2010 compensation paid to CEO Richard Fain almost 60% to $8,600,000.  Royal Caribbean increased the compensation paid to the company's four other named executives from 18.5% to almost 50%.  The largest compensation increase of the four executives went to President Adam Goldstein whose total compensation increased to over $4,000,000. 

These increases were primarily incentive based, meaning that the executives claimed that they met or exceeded certain financial goals for the corporation.  With this recent revelation that the company's financial performance was overstated and that the executives allegedly committed fraud or recklessly misrepresented the cruise line's financial data, the question arises whether the incentive based millions of dollars in compensation should be returned voluntarily to the corporation or disgorged in the pending lawsuits.    

The Roth lawsuit seeks class action status for what is referred to as either hundreds or thousands of other shareholders who were defrauded by the cruise line between January 27, 2011 and July 28, 2011. 

A second lawsuit seeking class action status was reportedly filed yesterday by the Pomerantz law firm with offices in New York, Chicago and Washington D.C.  It is on behalf of stockholder Stanley Wolfe and was filed in the United States District Court, Southern District of Florida, Case No. 22855.  This lawsuit seeks class certification for stockholders who purchased securities between April 23, 2009 and July 27, 2011.

Royal Caribbean Stock Chart

It will be interesting to see how these lawsuits turn out.  What did the cruise line executives know about the accounting errors?  When did they learn of the irregularities?  What did they do once they learned that the cruise line was performing substantially under expectations?  Did they dump their stock realizing that the price was artificially high?  Or did they act prudently and responsibly once the accounting mistakes were brought to their attention? 

 

Photo credits:  www.azamaraclubcruises.com

Chart credit:  Rick + Rick law firm

M/V Clipper Adventurer Sues Canada After Running Aground in Northwest Passage

CBC News in Canada is reporting that the owners of the M/V Clipper Adventurer, which ran aground last summer in the Nothwest Passage, is suing the Canadian government. 

Adventurer Owner Ltd. of Nassau, Bahamas, is seeking at least $15 million from Canada, including $12 million in repair and salvage costs for damage to the vessel's hull, $2.6 million for loss of business, and $350,000 in other costs.

Clipper Adventurer Sues CanadaThe ship's owners blame Canada's Department of Fisheries and Oceans for failing to inform the vessel owners and other mariners about an underwater rock shelf.

The nautical charts on board the Clipper Adventurer at the time of the grounding indicated there were 29 meters of water when in fact there there were only three meters of water at the location of the grounding. 

We blogged about this last year:

Clipper Adventurer Cruise Ship Runs Aground in the Arctic

"Uncharted Rocks" and Other Tall Tales - Clipper Adventurer Ran Into A Charted Hazard

Although Canada has an obligation to update maps and charts for its waters, this seems to be a difficult case for the vessel owners.  They were in the rugged waters of the Northwest Passage and apparently were not using a local pilot who was familiar with the waters.  Were they using a depth sounder?  Sounds like they were not exercising diligence sailing in these waters without a pilot or correct charts.

Some observers are suggesting that Canada should counter sue the vessel owners for the expenses of the Canadian Coast Guard for rescuing the passengers.

 

Photo: Canadian Coast Guard/Canadian Press via CBC News

Charleston Groups to Sue Carnival Cruise Lines

A local Charleston South Carolina television station (WCIV  ABC-4) is reporting that the Southern Environmental Law Center in Charleston is preparing to file a lawsuit against Carnival Cruise Lines to make the cruise line subject to city and state regulations.

The lawsuit is the latest development in the debate about the suitability of cruise ships in this quaint old southern city.  Many citizens are concerned with the scale of the cruise industry's presence in Charleston, as well as air emissions, waste discharge, noise and passenger congestion.  

Carnival - Charleston South Carolina LawsuitThe Coastal Conservation League and the Historic Ansonborough Neighborhood are named as plaintiffs in the proposed lawsuit.

These groups in Charleston are wise to hold Carnival accountable to laws and regulations. Other than the states of Alaska and California, few places have taken steps to hold cruise lines accountable to public health and community standards.  In March, we reported on a landmark legal decision from the Ninth Circuit Court of Appeals which ruled that the state of California can regulate the shipping and cruise industries and require vessels that call on the state’s ports to use cleaner  fuel.

One of the problems with the cruise industry is that cruise ship use diesel and nasty bunker fuels which spew toxic particulate matter into the air.  Unlike most states, California requires that ships use cleaner fuel starting 24 nautical miles from California’s shore.  The cruise industry unsuccessfully tried to avoid the public health law by arguing that it was not subject to state law.  

Last year, Charleston went through quite an ordeal with the cruise industry when four consecutive sailings of the Celebrity Mercury cruise ship from its port were plagued by massive norovirus outbreaks until the Centers for Disease Control (CDC) issued a rare "no sail" order for the cruise line to clean up its cruise ship. 

The South Carolina Post and Courier ran an interesting article "Norovirus Confirmed Aboard Mercury" which reported on the concern that the Celebrity Mercury cruise ship - with over 400 norovirus infected passengers - could infect people living in Charleston.  

The newspaper reports that Katie Zimmerman, a project manager with the Coastal Conservation League, received frantic calls and e-mails from residents concerned not only about infected passengers entering the city but also about trash from the ship entering local waters.

Cruise ships like the Mercury can dump completely untreated sewage 12 miles offshore.  Although the article concludes that waste from the Mercury poses no risk to marine life or people who eat local seafood, there is a risk of contaminated water infecting shellfish which filter-feed. 

In this day and age, it is barbaric to think that hundreds of cruise ships routinely dump human waste into the sea.  Cruise lines dump waste because they register their cruise ships outside of U.S. jurisdiction in places like Liberia and Panama which don't care what the cruise lines do. 

The thought of a cruise ship like the Mercury dumping hundreds of thousands of gallons of norovirus infected feces just 12 miles offshore South Carolina is particularly disgusting. 

Cruise lines like Carnival and Royal Caribbean are corporate felons for environmental crimes and lying to the U.S. Coast Guard.  Trusting them to act responsibly is foolish.  That's why South Carolina is smart to protect its waters and its people by holding the cruise ships accountable to local regulations and ordinances.  

 

Royal Caribbean Sued for Passenger Death on Storm Tossed Brilliance of the Seas

The Scottish and British press are reporting on a lawsuit filed (or to be filed) against Royal Caribbean following the death passenger who was thrown about her cabin during the December 14, 2010 storm and lapsed into a coma.  Barbara Davey, age 56, was cruising on Royal Caribbean's Brilliance of the Seas when the cruise ship failed to make port in Alexandria before a storm hit the ship.

One article: "Passenger Dies after Cruise Ship Sails into 80mph Storm" mentions that the passenger died from what is described as a "brain ­hemorrhage" after the cruise ship was hit by a ­Brilliance of the Seas - Royal Caribbean - Cruise ship"horrific 80 mph storm."

In another article, the passenger's husband, John Davey, describes the ordeal as follows: "Barbara was tossed around like a ragdoll and was seriously hurt. When the storm calmed, the ship's interior was smashed to pieces . . .  Three days later, she lapsed into unconsciousness before my eyes, fell into a coma, and never woke up."  Her husband recently made the difficult decision to remove his wife from life support.

We have written a number of article about the poor seamanship and the cruise line's effort to down play the incident:

Ferocious Storm Batters Royal Caribbean's Brilliance of the Seas

Royal Caribbean Calls on "Captain Hollywood" to the Rescue Following the Latest Brilliance of the Seas Debacle

Will Royal Caribbean Release CCTV Video of the Brilliance of the Seas During the Storm?

 

January 31, 2011 Update:  Royal Caribbean plays hardball:  Royal Caribbean Releases Private Medical Information About Dead Passenger

 

Photo credit:  anspics Flickr page

The Splendor Cruise Ship Fire - Three Reasons Why You Will Lose If You Sue Carnival

Carnival Splendor Cruise Ship Fire - Lawsuit?Now that the disabled Carnival Splendor is back in a U.S. port, some lawyers are advertising that the passengers should consider filing a lawsuit.  One cruise site, offering "cruise insider expert advice," is shilling for a Miami lawyer: "Now is the time to join the November 7, 2010 passengers in a joint effort for compensation. Contact us if you were on this cruise."

Such desperate solicitation like this never ceases to amaze me. 

Any time there is a cruise disaster, the issue of lawsuits arises.  Sometimes there is a basis to file a lawsuit, and sometimes - like this time - there is clearly not.  Many passengers from the Carnival Splendor have contacted our office seeking a maritime lawyer to sue the cruise line for damages.  We have told them that there is no basis to consider suing Carnival under these circumstances.  They are wasting their time and money if they file a lawsuit, for these three reasons:

  • In order to have a legitimate case for compensation, a cruise passenger has to suffer a personal injury.  Experiencing inconvenience and unpleasant circumstances does not constitute a personal injury unless there is a physical injury.  If you fall down a flight of stairs in the dark and break your hip, that's a personal injury.  But taking cold showers, smelling toilets that can't be flushed, eating Spam sandwiches in the dark or other similar "cruise from hell" stories are not compensable. 
  • The cruise ticket drafted by Carnival protects the cruise line:  “If the performance of the proposed voyage is hindered or prevented by . . . breakdown of the vessel . . . Carnival may cancel the proposed voyage without liability to refund passage money or fares paid in advance.”  The passenger ticket also requires passengers to file suit in Miami, which the United States Supreme Court has upheld.      
  • Carnival has already offered to refund the passengers' fare and travel expenses and a free cruise of equal value in the future.  So if you are foolish enough to file suit (in Miami), you simply will not do any better than what is already being offered now.  Plus you will incur legal expenses and travel expenses pursuing a case in Miami which you are certain to lose.

Carnival's offer after this fire should be compared to its response to the fire aboard the Carnival Tropicale cruise ship in 1999.  Like the Splendor, the Tropicale was disabled by an engine room fire and the cruise ship bobbed around in the Gulf of Mexico.  Carnival offered the passengers only a 25% discount - which the passengers felt was a slap in the face and created a public relations nightmare.   

Carnival Splendor Cruise Ship Fire - Lawsuit?Carnival has handled this fire knowing that its response will be scrutinized in the court of public opinion.  Its CEO traveled from Miami to San Diego and held a press conference where he apologized and offered a full refund, reimbursement of travel expenses and a free future cruise. 

Most Americans think that Carnival's offer is fair.  MSNBC ran a story yesterday "Free Cruise Should Be Enough for Splendor Passengers."  In a poll of over 10,000 readers, MSNBC asked should the passengers stuck on the Carnival Splendor consider legal action?  88% said: "No - Carnival's compensation package is more than generous."  Only 8% said: "Yes - Days at sea in miserable conditions is worth more than money back and a future cruise."  (The remaining 4% said: "Unsure - Passengers may have a tough time since they signed an air-tight contract.") 

Although the passengers on the Splendor were inconvenienced by the fire and the elderly undoubtedly suffered the most, sometimes a cruise line will step up to the plate and make a fair offer.  But if you decide to reject it, please don't call us.  Most jurors will not have much patience for vacationers complaining about eating Pop Tarts on a cruise ship, when some of the jurors cannot afford a cruise in the first place and our U.S. troops have been eating MRE meals in the middle of the desert in Iraq and Afghanistan.    

November 14, 2010 Update:

A reader of Senior Cruise Director John Heald's blog sums up Canival's compensations as follows: 

  • Full refund
  • Future credit equal to total of what was paid to be applied to a future cruise and must be used within 2 years.
  • Refund of transportation costs to the pier and from San Diego back home. One person said they took a bus from Las Vegas to the pier and Carnival (besides putting them up in San Diego is flying them home.)
  • Overnight stay in San Diego for those who requested it AND a daily stipend.
  • For those who had flights Carnival made the changes for them.
  • Any charges made on Sunday on the guests “Sign and Sail card were forgiven!!!  (This included spa treatments, alcohol, purchases in the gift shop AND even gambling losses in the casino slots!!!)
  • All photos taken by Carnival of the guests were put out in the photo shop and guests were invited to come get their pictures at no charge!
  • On Tuesday and Wednesday Carnival opened some bars. Alcohol, wine and beer was given to the guests.
  • Carnival advised the guests that everything in their mini bars was free! (My minibar had 6 sodas, 6 beers, and 10 or 12 shot bottles of alcohol.)
     

Update:

This blog article went  viral and was discussed by:

The Wall Street Journal Blog: "Plaintiffs’ Lawyer to Splendor Passengers: Don’t Bother Suing."

USA Today: "Sue Carnival over Splendor incident? Don't bother, says top cruise lawyer."

Fox News: "Cruise Line Crisis and Compensation."

American Bar Association Journal: "Cruise Ship Lawyer: Smelly Toilets and Cold Showers Won’t Support a Lawsuit."

Gadling: "Should Splendor Passengers Sue Carnival after their Ship Broke Down?"

U.K. Mirror: "Splendor Passengers Back Carnival."

 

Slate Magazine: "Lawyers to Carnival Passengers: Don't Come Crying to Me."

Photo credit:

Top - CBS News video

Bottom - Washington Post video

Carnival Cruise Line Settlement Keeps Getting Publicity

Yesterday I reported on a settlement which a passenger from Texas reached after she was seriously injured while trying to step off a tender boat onto the dock in Grand Cayman.  The case illustrates the liability of cruise lines when they fail to safely transfer their passengers from the cruise ship to shore during ports of call.     

The passenger was seriously injured and underwent surgery with the insertion of plates and screw.  This type of injury is painful, the surgery and recovery are painful, and the medical expenses are substantial.  After fling suit, the Carnival passenger reached a $125,000 settlement with Carnival cruise line.  

The settlement was picked up by a local news station, CBS News 4 in Miami, and then I blogged about it, and then it was discussed by the very popular USA Today cruise blog called "CruiseLog" this morning, and by the afternoon a news station Cayman 27 in Grand Cayman was reporting about the settlement.    

The CruiseLog readers, who are usually conservative, pro-cruise and anti-lawuit minded, concluded that the settlement was too much, which is strange because it seems to be a rather modest settlement.  But the interesting thing is that such a modest settlement received so much attention - from a local news station in Miami - to a national newspaper - to a news station in the Caribbean.

Settlements like this are usually confidential because the cruise lines require secrecy.  Cruise lines hate publicity like this.  It is inconsistent with the image cruise lines try and project, and the cruise lines think that it encourages others to file suit.  But the truth is that cruise lines like Carnival make billions upon billions of dollars each year and pay no taxes by incorporating in foreign countries like Panama and flying foreign flags on their cruise ships.  Carnival also has literally billions of dollars in insurance.   

Anytime a passenger falls between a tender boat and a dock, it is going to be a case of liability.  Cruise lines have a duty of "high care" for getting passengers, particularly elderly passengers, safely to shore.  So a settlement like this is almost a certainty. 

Although this case has received alot of interest in the media, a $125,000 settlement is pocket change for a corporation like Carnival when it lets a passenger fall between a tender and a dock.  

  

 

 

Video credit:      Cayman 27 News

Cruise Passenger Rights and Wrongs - Interview With Maritime Lawyer Jim Walker

Over ten years ago, I was interviewed by Linda Coffman who has a very nice and exceedingly polite blog called CruiseDiva. Ms. Coffman's Twitter handle is @CruiseDiva

It was my first interview by anyone as best as I recall, long before I was interviewed on Larry King Live and Greta Van Sustern and the endless cable news talking heads.  I was a heck of a lot skinnier and had a nice head of hair ten years ago. What the heck, 500 or 600 cases later, I certainly know a lot more now than I did then.

I have always felt a great appreciation to Ms. Coffman for the thoughful interview a decade ago, which is below:

CRUISES . . .  LIKE NO OTHER VACATION IN THE WORLD

Things that go bump in the night happen. And when they happen on a ship, the horror of the possibilities are heightened. Who would have paid to see the movie Titanic if the ship hadn't sunk? No one embarks on a cruise expecting the worst and no major cruise line purposely puts their guest and ships in danger, but the unexpected and unavoidable can occur during any voyage. In my travels, I've been rousted in the middle of the night by a fire alarm, spent the day at a Red Cross evacuation center, and suffered the indignity of Norovirus--all on dry land.

Cruise divaPerhaps the idyllic and carefree perception of cruise vacations is as much to blame as anything for passenger discontent when the slightest out-of-the-ordinary incident crops up. Cruise lines tout their products as 'simply the best' and 'like no other vacation on earth.' Are they telling the truth? Absolutely. It's true--the worst day on a cruise is better than any day on land. Unless, of course, your ship is on fire, the plumbing doesn't work, or you're dead in the water with a tropical storm fast approaching.  

No cruise line or ship's officers would purposely put their passengers and vessels in harms way. That simply wouldn't make sense. Often decisions to change course and skip a port are beyond their control, particularly when Mother Nature is calling the shots. And there are accidents. However, "unavoidable" is not much consolation to a cruising couple celebrating twenty-five years of marriage on the second honeymoon of a lifetime. 

Distracted by glamorous photos or dreams of moonlit walks on deck and midnight buffets, few passengers take the time to read the fine print, either in the cruise brochure or their ticket. Even if they do read it, the legal language can intimidate the average person.  

For an explanation of passengers' rights and assistance in translating the "contract of carriage" (cruise ticket), I turned to James M. Walker.  A specialist in maritime law, Mr. Walker is a member of the Maritime Law Association and serves on the Admiralty Law Committee of the Florida Bar. In addition to having the unique perspective of representing both cruise lines and passengers, he has handled cases for clients throughout the United States, Canada, Europe, and South America.  

Mr. Walker graciously answered my questions, providing insight into passenger rights and what to do if things go terribly wrong on your vacation. 

How did you become involved in maritime law involving cruise ships? 

I grew up in a port city and our family traveled a lot. Our vacations seemed to revolve around the water - a trip down the Rhine, vacation in Malta, sailing in the Mediterranean Sea, and so on. I have always had an interest in the water. This turned into an interest in maritime law once I started law school at Tulane University, which has a pretty good maritime curriculum. Once I moved to Miami, rightfully called the “cruise ship capital of the world,” I joined a large firm which defended some of the larger cruise lines.  

Now that I am exclusively representing passengers and crew employees, I find myself traveling again on a regular basis. My practice provides me with the opportunity to travel to beautiful places like Vancouver and London, as well as small towns across the heartland of the United States, to meet with our clients.

What are your thoughts as a maritime lawyer regarding the collision involving the Norwegian Dream in the English Channel and the fire aboard Carnival’s Tropicale in the Gulf of Mexico some time back? 

These incidents raise important questions whether the cruise lines are devoting sufficient resources to protect passengers’ health and personal safety. Unfortunately, these mishaps are not isolated incidents. 

Cruise ship fireTake the fire aboard the Tropicale. Despite wide spread media coverage, few major news organizations reported the Tropicale’s prior problems which could be traced back to 1982 when a fire broke out during its inaugural cruise. 

Before the Tropicale fire, Carnival’s Ecstasy caught fire the previous year. Between those two incidents, the Sun Vista ignited off of the coast of Malaysia and 1,000 passengers found themselves in lifeboats in the Straits of Malacca. The video images of the Ecstasy on fire off of Miami Beach are hard to forget, but few people remember that the Ecstasy caught fire in 1996 as well. Carnival‘s experience with ship fires is not limited to the Tropicale or the Ecstasy. Remember the fire aboard Carnival’s Celebration in 1995 which forced 1,700 passengers to evacuate? All of this, and more, occurred in just four years.

Cruise ship fireAfter each incident of this type, the cruise lines immediately offer a reimbursement of some type and, perhaps, a free cruise. Inevitably, the story becomes old and everyone - including the cruise line - forgets about what happened, until the next collision, fire, or other mishap occurs.

A LOOK AT COMPENSATION

What do you think of the practice of some cruise lines offering free cruises to “compensate” for these type of mishaps?

It’s a good start, but is it adequate compensation? Lets look at the “cruise from hell” stories from the Tropicale. These passengers included families who brought their minor children aboard, couples honeymooning, or elderly citizens who used their limited savings for a relaxing vacation. Through no fault of their own, these nice people quickly found themselves in a nightmare - drifting in the Gulf of Mexico, nauseated, with a tropical storm approaching. Carnival’s offer of a full refund and a free cruise is a good idea, but is it adequate remuneration for their experiences? Does this reflect a greater commitment to safety, or just a more savvy public relations department?

The cruise lines are more likely to offer free cruises now than just a few years ago. Compare Carnival’s approach today with its attitude just a few years ago. In 1996, hundreds of passengers became sick and frightened when highs seas rocked the Tropicale as Hurricane Roxanne approached. 600 passengers signed a petition for a full refund. They believed that the captain threatened their safety by taking the cruise ship too close to the hurricane. Carnival responded with a $40 shipboard credit to make up for port charges on the missed ports in Grand Cayman and Cozumel. Does anyone really think this was sufficient compensation? Or was this just a public relations nightmare?       

Do you have any feel for how the passengers themselves regard these offers? 

Some passengers appreciate the “full-refund-plus-a-free-cruise” offer. But many people are not satisfied. The last thing they want to do is to step foot on a particular cruise ship again. 

Cruise law Of course, the debate of a “free cruise or not” ignores the real issue of passenger safety. The important question is whether the cruise industry is devoting adequate financial resources to make their fleet as safe as possible for families and their children. Things like state of the art sprinkler systems, sophisticated security monitoring, and vigorous background checks on their employees.    

Remember, this industry earns literally billions each year in profits, and pays less than one percent in U.S. taxes by registering their vessels in Liberia and Panama. The notion that the traveling public should be happy with a free cruise and a tote bag trivializes the fundamental issue of protecting the precious lives and personal safety of millions of passengers every year.

What is the most common complaint you hear from a cruise passenger?

There are two general types of complaints. The first is what I call the “disappointed expectation” complaint. A passenger becomes disappointed because he or she feels that the service was poor, the weather was bad, their cabin had too much engine noise, or something like this. These type of complaints generally do not belong in a courtroom.

The second type of problem is when a passenger has been injured aboard the cruise ship, due to an accident, food poisoning, or an assault. The most common situation is when a passenger slips on a deck, trips on an elevated threshold, or falls down a flight of stairs. It happens on every cruise.

The most common complaint we hear is when a passenger writes to the cruise line regarding a particular problem, and does not receive a response after several months. Most passengers who contact us are not the least bit “lawsuit-minded.” Yet, they find themselves frustrated by the cruise line’s lack of response after they return home.

What are some of the interesting cases you have handled?

When we defended several of the cruise lines in Miami and Fort Lauderdale, we saw virtually every imaginable type of claim. Of course, with more than five million people sailing on cruises from U. S. ports each year - and everyone attempting to escape from reality - there are a lot of unrealized dreams which turn into strange lawsuits. Single women sue claiming that there were not enough single men aboard the cruise ship. The next week, single men sue claiming that there were not enough single women.

My favorite story involves an elderly widow from Miami Beach who loved to sail aboard from Miami at least three times a year. Unfortunately, she would trip or slip or fall every other cruise. She would file suit every year in December and then try to settle the case as soon as possible for at least two free cruises - first class no less. She still sends me a holiday greeting card every December. 

You would agree that there is no constitutional or absolute right to a perfect vacation or cruise?

True.

So what are the types of things which go wrong that are not the cruise line’s responsibility?

Most problems which fall into the “disappointed expectation” category are not the cruise maritime lawyerline’s legal responsibility. An example would be when cruise lines change the itinerary and the passengers miss a popular port.

The courts determine whether a cruise line is legally responsible to a passenger by reviewing the terms of the passenger ticket. I saw one judge literally pull out a magnifying glass to read the fine print buried in the ticket. The passenger invariably loses when this occurs, which is not surprising. The cruise lines have spent considerable effort drafting language which protects them from virtually every imaginable situation. The exception is when a passenger has been injured or assaulted - there is a federal statute which prohibits cruise lines from limiting their liability in these circumstances. However, this exception may not apply if the cruise ship does not call on a U.S. port. 

Cruise lines reserve the right to change their itineraries at their discretion. Do passengers have any right to compensation or a refund (other than port charges) if such a change is made?

No, based on the “fine print” in the ticket. For example, Royal Caribbean’s language says that it “may at any time and without prior notice cancel, advance, postpone or deviate from any scheduled sailing or port of call.” As a public relations gesture, some cruise lines offer $100 or so for missing a port. But this is dependent entirely on the cruise line; they hold all of the cards in these type of situations. 

Theft from staterooms is pretty uncommon on cruise ships, but if something disappears mysteriously from my cabin, what recourse do I have?      

Virtually none. Again, most tickets limit the cruise line’s liability for theft. Carnival excludes any liability for money, jewelry, or other valuables “left lying about the vessel or cabin.” This Cruise attorneyseems reasonable enough. But even if the cruise lines is negligent, there is a $100 limit of liability for lost valuables, and a $500 limit if the valuables are deposited in a safe-deposit box in the purser’s office and then lost or stolen. 

One reported case involved a passenger who reported the loss of several hundred thousands of dollars in jewelry. The court dismissed the case based on the language in the passenger’s ticket limiting the cruise line’s liability to $100. My only advice is to leave your priceless jewelry at home, or buy insurance before you sail. 
 
STEPS TO A RESOLUTION
 
Before seeking the assistance of an attorney, what steps should a passenger take to resolve a claim?

First, read your ticket and take steps to protect your rights! Passengers who are injured have to send a letter to the cruise lines within a short period, usually six months, advising the cruise line that they intend to seek compensation. Also, passengers have a very short period - usually only one year - in which to file suit when they have been injured. If they are one day late, they lose their right to seek compensation.    

When a passenger is injured on a cruise ship, what proof should they present to substantiate a claim for personal injury?

Of course, not all injuries are compensable. There are two issues to consider. The first issue is liability - it is the passenger’s burden to prove that the cruise line is legally responsible for the accident. The second issue is damages - medical expenses, lost wages, and other intangible losses caused by an injury. This issue is simple; keep receipts of all of your out-of-pocket expenses, insurance claims, and medical bills. Be sure to request your shipboard medical records before you disembark. The cruise lines will usually try to put you off the ship without them, but remember - these are records of your health, and you are absolutely entitled to obtain a copy before you leave. 

The most important issue is liability. A passenger will need proof that the cruise line was negligent. First, passengers have to establish that there was a danger aboard the ship, such as an unexpected step-down without any warning signs. Secondly, they must establish that cruise lawyerthe cruise line knew or should have known of the hazard, yet failed to correct the hazard or warn passengers of the danger. This is often quite difficult to establish.  

As a practical matter, passengers need to take photographs and video of the accident scene, take notes and document what occurred, and record the names and addresses of all witnesses. In seventeen years of practicing law, I have never seen a cruise line respond to a passenger’s complaint by saying “yes, we are responsible - sorry, here is your check.” Cruise lines are not in the business of giving away their money. You have to be prepared to fight for what you are entitled.   

What is the most important thing for a passenger to remember if they intend to seek compensation from a cruise line?  

Don’t forget the one year limitations period! Many cruise lines correspond, quite pleasantly, back and forth with passengers regarding their claims. They invite the passenger to submit medical reports. A month or two later, they request other documents, implying that additional information is necessary to evaluate the claim. The cruise lines never mention the one year limitations period, but they know that the clock is ticking away on the passenger’s rights. On the 365th day, when the limitations period has expired, they notify the passenger that the claim is barred. I cannot tell you how many times passengers contact us after the one year period has expired. The ball game is over! There is very little we can do at this point.

Could you explain what steps you take to negotiate a resolution between a passenger and a cruise line?

If we believe that the cruise line is at fault, our approach is always to send correspondence to the cruise line’s risk management department and attempt to establish a dialog.  

Cruise lawyerMany lawyers by-pass the negotiation stage and file suit immediately. This is not always in a passenger’s best interest. The passenger usually lives in a distant state or in Canada or Europe. All cruise lines require that the lawsuit must be filed in a certain city, such as Miami. The passengers will therefore have to travel to Miami to appear for a deposition and for trial. Over 90% of our clients live outside of Florida, and over 30% live abroad. It is expensive to travel to and from Miami, and these expenses usually cannot be recovered from the cruise line even if they are found responsible.     

We therefore try to make a good faith effort to present our client’s case efficiently, and to submit the medical documentation necessary for the cruise lines to make a reasonable offer without the necessity of a lawsuit. Certain cruise lines offer fair compensation in meritorious cases. Other companies play “hard ball” on every claim. They will not offer anything until the lawsuit is filed and the trial date is approaching.

When all else fails and a lawsuit is the last resort, how long can a passenger expect the process to take?

It depends from jurisdiction to jurisdiction. In Florida, it can take a year to two years before the case is tried. Then there is the potential for another year if an appeal is taken. Patience is a desirable trait to develop.

Is there anything you’d like to add?

We hope that your readers have a safe and enjoyable cruise. 

 

Photo Credits 

Linda Coffman   Ms. Linda Coffman

Sun Vista cruise ship      Sun Vista "Were You There?" website