Italian Cruise Ship Settlements

[Proteas]

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Concordia cruise passengers to get $14,400

Passengers of the Costa Concordia are expected to receive a compensation lump sum of 11,000 euros ($14,400) each, the Italian Association of Tour Operators said in a statement Friday.

The decision was reached during a meeting between Costa Cruises and consumer groups, the association said.

The massive liner struck rocks and rolled over onto its side in shallow waters off an island on Italy's Tuscan coast on January 13, leading to a panicked overnight evacuation and a number of deaths.

A 16th body was found by divers searching the ship Tuesday. Sixteen others are missing from the roughly 4,200 people aboard the cruise liner - 3,200 passengers and 1,000 crew members - at the time of the collision.

The captain of the ill-fated cruise ship is under house arrest and faces possible charges of manslaughter, shipwreck and abandoning ship.

http://news.blogs.cnn.com/2012/01/27/con cordia-cruise-passengers-to-get-14400/

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I've done a little bit of investigating, and according to the website for Costa Cruises, they're not just giving the passengers $14,400 a piece in settlement, they are also give...

%u2022 Reimbursement of the value of the cruise, including harbor taxes;
%u2022 Reimbursement of air and bus transfers included in the cruise package;
%u2022 Full reimbursement of travel expenses to reach the port of embarkation and return home;
%u2022 Reimbursement of any medical expenses resulting from the cruise;
%u2022 Reimbursement of expenses incurred on board during the cruise.

.....

Costa also has pledged not to deduct from this sum any amount paid by any insurance policy stipulated by guests. In addition, the company will return all goods stored in cabin safes, where retrieval is possible.

Costa Crociere also has pledged to provide a program for psychological assistance to any guests that request it. The company has further agreed to offer customers the ability to cancel any upcoming cruise booked before Jan. 13, on any of its routes, without penalty through Feb. 7, 2012

Source: Cost Cruise Lines.

NOW... here's the part I want to discuss; is this ethical for the cruise line to do? Guilt or shady behavior of the cruise ship captain notwithstanding, part of me thinks they're doing this to cover their own ass because they know it's just cheaper to settle with people than it is to be taken to court in a civil trial. And I'm probably right, who knows.

But if you were on that ship, and you and your loved ones were lucky enough to get away unscathed... would you take the money? Or, would you run the risk of trying to sue them is Italian civil court, and wind up going broke in the process?

[Camarohusky]

At 2/1/12 04:15 PM, Proteas wrote: NOW... here's the part I want to discuss; is this ethical for the cruise line to do? Guilt or shady behavior of the cruise ship captain notwithstanding, part of me thinks they're doing this to cover their own ass because they know it's just cheaper to settle with people than it is to be taken to court in a civil trial. And I'm probably right, who knows.

You're exactly right. Not onyl with a settlement do they not have to fight any expensive legal battles or run the risk of higher damages, they can get peace with those who settle and not have any worry of future litigation. It's a commonly used tactic.

But if you were on that ship, and you and your loved ones were lucky enough to get away unscathed... would you take the money? Or, would you run the risk of trying to sue them is Italian civil court, and wind up going broke in the process?

That very much depends. First I would have to ask myself "what did I lose?" If I didn't lose much, or veen just slightly more than the settlement amount (say, up to $20K) I'd take the settlement and run. If I had lost significantly more (say $40K+) I would eagerly decline to settle and go on my own accord. In the middle itd be a tough choice.

Both of these questions can be applied to any settlement offer in any civil case.

[Proteas]

At 2/1/12 04:33 PM, Camarohusky wrote: That very much depends. First I would have to ask myself "what did I lose?" If I didn't lose much, or veen just slightly more than the settlement amount (say, up to $20K) I'd take the settlement and run. If I had lost significantly more (say $40K+) I would eagerly decline to settle and go on my own accord. In the middle itd be a tough choice.

Well, now, the thing you have to consider is that the settlement of $14,400 is that amount paid to each person on board that cruise, regardless of age. So if you and your significant other were on board, you'd stand to gain close to $29K right off the bat, and that's not including them rembursing you the cost of your cruise tickets, travel expenses (round-trip tickets from America to Italy, etc etc), AND they'll cover your medical costs and a shrink visits.

You're looking at a pretty hefty chunk of change just for walking away from it alive.

[Camarohusky]

At 2/1/12 06:15 PM, Proteas wrote: You're looking at a pretty hefty chunk of change just for walking away from it alive.

Exactly. I have personally cashed out on something like this too. I was in a car accident with my son. The insurance company offered my $300 to not sue them regarding my son even though he had no injuries. I took the $300 and left.