We are still discussing the problems that plaintiffs face with claims related to the January, 2012, Costa Concordia cruise ship disaster. The biggest challenge is that the company that operated the ship is based in Italy, but its parent is U.S.-based Carnival Corp. Plaintiffs believe their claims should be filed in U.S. courts against Carnival. Carnival argues that it has an arm's-length relationship with Costa Crociere.
Plaintiffs' hands will be tied in many ways if their cases are heard in Italy. As we mentioned in our last post, damages for emotional distress and pain and suffering there are extremely difficult to get. Nor does Italy allow contingency fee arrangements. Plaintiffs would have to pay for legal services and fees regardless of how their suits played out -- and corporations have deep pockets that make it easier to drag out the discovery process and to pile on expenses.
Shops, restaurants and other businesses along the coast have suffered since the disaster, too. Some have lost more than others, and the total loss may look small to a large corporation but actually has quite an impact on the business' bottom line. One of the most efficient ways for the businesses to recover those losses is to file a class action claim against the cruise line. The problem is that Italian courts do not allow class actions.
In addition to arguing that Costa is a separate company from Carnival, attorneys for the corporations argue that the records from the police investigation as well as other materials pertinent to the accident, not to mention witnesses, are in Italy, not the U.S. As a result, they say, Italy would be the more logical forum.
The legal questions will take some time to answer. Perhaps by that time, the Concordia herself will be a thing of the past, broken up for scrap in a distant shipyard.
Source: Insurance Journal, "U.S. Lawsuits Target Carnival in Italy Cruise Crash," Curt Anderson, Sept. 13, 2012
Our firm helps families and businesses that have suffered a loss because of someone else's negligence. To learn more about our Charleston, West Virginia, firm, please visit our website, especially the personal injury page.
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