Costa Concordia Passengers Offered 11,000 Euros
Passengers on the stricken Costa Concordia have been offered 11,000 Euros each by the Italian company that owns the cruise ship. The owners have offered this after negotiations with Italian consumer groups.
The owners have also said they will refund medical expenses, the cost of the holiday itself and any transport costs so passengers will not be left out of pocket.
What remains to be seen is how many passengers will take up this offer by the cruise ship owners.
Previously a number of American law suits have demanded $160.000 per passenger.
Although the offer that has been made by the owners may seem disproportionate to the trauma each passenger suffered everybody must bear in mind the possible limitations on liability that can arise for claims against the owners of the cruise ship.
The Athens Convention governs the carriage of passengers by sea. This Convention defines the requirements to establish liability, possible defences that can be used by the carrier and limitations on liability.
Under the Athens Convention the liability of the carrier for the loss or damage to luggage cannot exceed certain units of account. These units of account are special drawing rights as defined by the international monetary fund and must be converted into the appropriate currency for where the loss occurred.
It is likely that the owners and the consumer groups negotiating with the owners have kept this limitation in mind when coming to the figure of 11,000 Euros.
Nevertheless, the owners of the company will also be aware of that under the laws governing carriage by sea if it can be proved that the damage resulted from an act or omission of the carrier, servant or agent done with the intent to cause such damage or reckless to this cap of limitation can be removed.
Many passengers may accept this initial offer of compensation from the ship owners as a way of drawing a line under this tragic event, but it will be interesting to see how many of those involved will go on to pursue further legal action against the company.
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