Italian cruise ship sinks, mass of troubles ensues

The wreck of  the Costa Concordia has unleashed a legal headache for everyone involved.   First and foremost Captain Francesco Schettino is currently under arrest not just for the shipwreck itself, but also for abandoning a ship when passengers were still on board.

Then, of course, there's the cost to the parent company: Carnival.  Just the wreck itself is estimated to cost them between  $85 million to $95 million in the fiscal year to November, and that's not including the potential loss of ticket sales.

But they might not end up paying as much as they could otherwise, as victims of the disaster are likely to be barred from filing claims in the U.S..  This is because contracts written into the tickets state that lawsuits must be brought in the courts of Genoa, Italy.  Carnival is also unlikely to face criminal liability charges in the US because the sinking happened in Italian territorial waters.  

And even if a lawsuit was brought, there would be a severe cap on the damages Carnival would have to pay out due to the Athens Convention.  If passengers are unable to bring a lawsuit in the U.S. the amount they would receive would be even less: $500 may be all the compensation Carnival cruise line, has to pay back.


This covers their clothing and luggage.


What other options do they have?  Well, they could file a lawsuit in Italy, if they could manage. 


  
 

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