Rock Center
Shortly after the Costa Concordia ran aground off the coast of Italy, leaving at least 32 people dead, Costa Cruises began offering settlements to the survivors of the accident.
Nancy and Mario Lofaro of New Rochelle, N.Y., said they were offered $14,500 by the cruise line following the Jan. 13 incident.
“Well, my first reaction was that I thought it was grossly insulting, but what upset us most is that it almost seemed like they wanted to do this very quickly and get it done so that it could all go away and that’s the part that we have a problem with,” Nancy Lofaro said. “They promised payment within two weeks, we would have had $29,000 between us in two weeks…That’s not what it’s about. This particular incident should not be forgotten and good should come from it somehow.”
The Lofaro family isn’t alone. Six months after the Concordia disaster, hundreds of survivors are challenging the settlements that Costa Cruises has offered.
Costa Cruise’s parent company, Carnival Corporation, is the world’s biggest cruise line. Citing pending litigation, Carnival Corporation denied Rock Center’s request for an interview. No one disputes that the cruise line is acting in accordance with the terms of agreement on each passenger’s ticket.
Getting access to the terms of agreement for a cruise ticket is a difficult and complicated process, said Marc Bern, an attorney for a number of passengers that were on the Concordia when it wrecked. “When you get on a ship, you are covered by the limitations that the law of that ship wants to apply to you and you can’t even find out what those limitations are unless and until you book your trip and you’ve paid for it and you’ve already accepted those limitations,” he said.
He said the print is “extraordinarily fine” and often “buried.”
Most cruise ships are registered in foreign countries which provides enormous tax advantages to the owners and also puts the ships outside U.S. jurisdiction once they’re a few miles off shore.
Bern said that the terms of agreement should be thrown out for those involved the Concordia wreck because of the egregious actions of the ship’s captain. In an interview this week, Captain Francesco Schettino admitted to being distracted on the phone when he navigated the ship off course, hitting the rocks near the Italian island of Giglio. Schettino could face manslaughter charges and was recently released from house arrest.
By the terms of the ticket agreement, passengers who want to challenge the $14,500 settlement offer have to do so in an Italian court. Liability for loss of life is limited to $75,000. That amount is incredibly low compared to what would happen in an airline accident, said Attorney John Arthur Eaves, Jr., who is representing more than a hundred Concordia survivors.
“They’ve offered the people $14,000. That would include their tickets, that would include their property and that would include all their future problems that they have received from this thing. I think that’s disrespectful and I believe it’s horrible to the value of life.”
Families of a person lost in a plane crash, are offered between $2 and $5 million, Eaves said.
Eaves said that the value is important because the higher the cost a company pays out after an accident, the more incentive they have on the front end to train crew members and better prepare for a disaster.
Remo Casilli / Reuters
The Costa Concordia, carrying more than 4,200 passengers, ran aground Jan. 13 off the coast of Italy killing 32 people - including two Americans.
Those on the Concordia on January 13 recount a harrowing night of confusion where crew members seemed ill prepared to help them.
The Lofaros have been on several cruises before and were excited to embark on their winter getaway. At the start of the cruise, they say there was no safety drill to practice what to do in the event of an emergency. When the cruise ship first hit a rock, they were in the ship’s theater.
“We looked at each other and we said, ‘We hit something,’” Mario Lofaro said.
No alarm was sounded until more than an hour after they felt the ship shudder.
The Lofaros said that they were shocked to encounter crew members who they said had no information. At first the passengers were told the ship had an electrical problem.
“With anything that you do in life, there are always risks. But you don't think that a half-a-billion-dollar ship that's almost 1,000 feet long, that does this route every week, week after week-- you would never think that this could happen, even though you know anything can happen,” Nancy Lofaro said. “But what is most concerning is that you put your confidence in the professionals in anything that you do.”
When they heard six short whistles and a seventh long one, the signal to abandon ship and board life boats, the Lofaros said that it seemed the crew members didn’t know how to navigate the boats. They described the life boats bumping into one another like “bumper cars.”
They say when the life boat they were in was lowered, it got hung up on the ship.
“Everybody is thrown to the other side. We went crashing against the ship,” Mario Lofaro said. “the lifeboat released and it went into a freefall.”
Nancy Lofaro added, “That’s the time I actually felt we could die.”
Joan Fleser and Brian Aho, both veteran cruisers, were in the middle of dinner when dishes began raining from the dining tier above them.
“People were screaming. A lot of people were getting up immediately and trying to leave, some people fell down, waiters that were carrying trays, food went flying, dishes and glasses were starting to slide off the tables,” Fleser said. Fleser, Aho and Aho’s daughter, Alana, clung to a pillar to prevent themselves from falling over as the ship began to list to the side.
Six months after the tragedy, it’s hard for the family to contemplate how people lost their lives when the ship was in relatively shallow water and so close to land.
“People died because of this for no reason. I mean, that’s the tragic thing about this,” Fleser said.
Of the ship’s captain diverting off course, she said, “And he was allowed to do this by the cruise line, by the corporation.”
The Aho family is being represented by Eaves and is battling Costa Cruises and Carnival.
“Some people just don’t want to have anything more to do with it and I completely understand that. All the trauma, you just want to get past it and continue on,” Fleser said. “We on the other hand, think that it’s important to try to change something.”
The family’s attorney recently took his fight to the seas. Eaves got the federal court in Texas to send U.S. Marshals to seize the Carnival Triumph which was about to sail from the port of Galveston. The federal court accepted a suit on behalf of the family of a woman killed on the Concordia, thus compelling Carnival to post a $10 million bond before the Triumph could sail.
“We asked the court to seize Carnival Triumph, a large passenger ship, and hold that ship as collateral for the judgment. Just much like you do with a criminal, you know, you capture him. Then he has to post a bond for him to go free, to make sure he'll return to court. We did the same thing with the ship,” Eaves said. “They had to post a bond to make sure that, out of that bond, when we get a verdict, we get a judgment, that they'll pay this family and help them rebuild their lives.”
Of his fight against the cruise line industry, Eaves said, “Oh, it's Goliath, it's Goliath times two…I'm throwing my little slingshot, and I got one or two pebbles that I can throw. I've done thrown a couple of them and I'm going to keep throwing until we find some way to make this better.”
Editor’s Note: Harry Smith’s full report airs Thursday, July 12 at 10pm/9c on NBC’s Rock Center with Brian Williams.
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I'm amused by the one couple who is upset that they would have gotten their money too quick. If the cruise line would have said it would take 2 months to get the money they probably would have been complaining that it would take too long.
I do agree that the amount is way too low for the people who died. But the others should not expect millions of dollars each.
One thing you also have to remember is that was in a foreign country on a foreign ship. American laws do not apply here. Carnival is not getting away free either. I'm sure their sales have dropped. And it will cost a lot to replace that ship.
That $14,500 hurry-up-and-take-it offer was insultingly low.
you're an idoit
Captain @!$%#head didn't get distracted and drift off course. he ordered the vessel to change course, ran aground then in the last great act of cowardice left the vessel before his passengers were off. There should be no protections for a cruise line that employs people like this.
What I got from the article was that it isn't only the money. The laws regarding cruise ships need to change. It isn't just negligence causing this disaster, it's the 200+ people who have just "disappeared" from cruise ships in 10 years. It's the rapes and child molestation that happens on cruise ships. Cruise ships in International Waters are not beholden to the laws of any county. There are no police aboard ships. Employees may be hired from a different country than either the ship is from or the ship is sailing from / to and are not prosecuted because of the confusion of which laws govern them (their home country, the ships country or the country in which the offense occured).
I agree that there are far too many frivolous lawsuits and if the survivors only care about more money, that's disappointing however maybe a large financial burden will cause the company to look at some of these issues and regulate themselves better. My hope is that this lawsuit is about more than money.
Lack of proper training is everywhere. Training is an expense that is usually the first to go when a company looks to "trim some fat", then goes Q&A, then upkeep and maintenance. Just about every place that I have worked has been brimming with untrained, unskilled, unmotivated workers. It's a sign of the times. Companies cutting services and quality to the bone just to squeeze every last cent out of their business. I have seen the sad state of many cruise ships at port when we went on our last cruise. The life boat covers (Faded and ripped open), the faded paint, the rust streaks down the side of the hull, etc. The worst of them were mostly Carnival. Disney and Norwegian seem to have ships that are better maintained. You want to get a better feel for the company you are dealing with? Look at their entire product line. Not just the newer ships, check out the older ones to see what kind of upkeep they receive. If the bright work is shiny, the paint fresh, the lifeboat covers vibrant and not torn, then you can almost assume the rest of the vessel is maintained, and the staff is probably trained and motivated. The pride employees have in a company and their jobs shows vividly, you just have to look to see it.
Extreme negligence by the cruiseline is the real issue. If someone got food poisoning or something like that, then I can see the smaller reimbursement. This goes way beyond that. It may seem greedy to want more, and I agree that family of the deceased should get much more, but the survivors (being exposed to near-death experience due to negligence) should be compensated more than the normal payout stated on the contract. Extenuating circumstances prevail.
There was a tragic loss of life. Criminal charges are, I believe, pending. That's one thing.
Civil cases may be limited by the 'agreement' in the small print. This seems to try to limit any claims - from "Mum died" to "I stubbed my toe" to the same amount; $14000. This raises several points;
a) Why should the families of the dead be limited to $14000 for loss of their loved one? Because the small print says so? Quite possibly, yes. I'm going to be harsh here - you signed a contract, people. If you need generous life insurance, go to a life insurance company and pay the premium.
b) Any money you might take off Carnival won't come from the crew, won't come from the Directors, won't even come from the Captain - it comes from the shareholders. By all means have a go at them - but don't think for one moment that the Captain (or anyone else responsible) will pay any of the money awarded, unless they have shares in the company.
c) We really need to separate the concept of "making someone suffer for these needless deaths" from "and I want some money". Criminal law is the way to make the first one stick; it doesn't matter how rich someone is, a jail sentence will spoil their whole day. And longer.
d) Carnival Line has, I suggest, a moral duty to pay the bills for getting the passengers home, replacing their lost stuff, and any hospital fees. Oh, and refund the price paid for the cruise that never happened. But PTSD is in some danger of becoming the 21st century equivalent of "whiplash"; "boo hoo, give me lots of money". This demeans those who really suffer from it; some of the military, some crime victims, for example. Most of them have no-one to sue. It's not clear to me that cruise liner passengers should be better placed.
e) If the idea is to reinforce the lesson that goofing off while in charge of a cruise liner is not a good idea, then that lesson has probably been learned. If someone really wants to make a point, then by all means sue the Captain personally. You will probably break him - and his family - financially, but Carnival Lines will sail on. A corporation may be a legal person, but it has no heart, no soul, and certainly no morals. Ask any banker.
We just came back from a cruise in December. Thank goodness we were not on the one in question. From the comments above I would believe the following: (1) 90% of the comments are from those that have never been on a cruise and are completely without knowledge (2) The entire event could have easily been avoided if the CAPTAIN and eventually the crew did their job. If the company is allowed to get by with only a slap on the wrist, then the next event of this kind will be worst with significant loss of life.
I can only imagine the terror that was present...As they say you should have been there.
Should we compensate people for being scared? I've cruised and from the looks of the pictures most could have jumped and swam to shore.
Although I know it won't happen I like the idea of taking a vessel out of rotation and holding it hostage. They're a marginal provider and frankly based on my last experience a few years ago they can kiss my sweet white butt. $14K aint nothing by the way.
GE, you may very well be the dumbest person on the face of the earth.
A lot of the people on that ship were hurt, do you all think 14,000.00 is going to pay medical costs for the rest of thier life? Granted I don't think people should sue over any little thing, but lets be reasonable.
There is an old maritime law I believe that states the Captain goes down with the ship. I think that implies responsibility for the passengers and crew to ensure they get out safely. has this law been repealed? The captain is a coward, and the crew woefully inadequate to deal with anything other than the standard, proscribed actions during an unenventful cruise. We last sailed on a Carnival ship over the New Years weekend 2003-2004. What was supposed to be a cruise to Cancun, with a 3 day layover, became 4 days of the ship circling on the Gulf of Mexico for 4 days. People got seasick and all requests for the ship to dock at another port such as New Orleans, were refused. Their excuse was the ship was underpowered for deep water. We lost all fees spent for activities in Mexico, the company gave us $100 gift cards to use on the ship (which was our port fee); meetings were held by passengers and a massive lawsuit filed. This was not a cheap $400 cruise - it was more like $1400 since it was a holiday cruise. The crew did not speak english (some did most did not). The captains dinner never materialized. There was no meet and greet unless you count the captain and bridge crew running across a stage, introducing themselves, then disappearing. They were never seen again. We were never offered any compensation for loss of monies paid out for events in Cancun, nothing. Carnival Cruise Lines said basically it was a sail at your own risk deal. The lawsuit garnered us our cost of the cruise and compensatory damages - not large, but enough to make the company sit up and take notice. We have never again gone on a cruise with this company, never will. I wish the Concordia passengers succcess in their endeavors. I believe they deserve some compensation but I cannot say with any authority what that should be. Have a good day all.
Larry - Larry why must you always call everyone idiots?? Just because they don't agree with your Obama ways.
Kansas - Kansas how fAR from the ocean are you? Are you a marytime lawyer>??
I think Carnival is missing the boat here. According to the laws, they may only be responsible financially up to a certain point, but there's nothing to prevent them from offering the victims more than the minimum as a marketing strategy. By stubbornly going the minimum settlement route,, Carnival is being accurately portrayed as an uncaring bureaucratic monster. I think they could greatly reduce their exposure and lessen the hostile feelings being spread by the victims (and exploited by the press) by simply doubling their settlement offers, + covering victim passenger travel expenses home+ a free cruise to the survivors on any equivalent Carnival owned cruise line besides Costa. Let's face it, Carnival is in the business of providing passengers a fun time. This one was not fun, and was not ruined by weather, but by Carnival employees. Since most people have limited vacation time, investing in a cruise is a significant trust. And that employee caused accident was a betrayal of that trust, regardless of some silly fine print in the contract. If Carnival offers a bigger settlement to surviving victims in this special case, it'll be far more effective than what they spend on TV ads trying to attract business. To the CEO of Carnival:. Stop listening to just your lawyers and do the right thing!
BUY INSURANCE IT'S worth every penny, and if you think you are being riped off, see what Carnival is trying to do! Inurance Is cheap for peace of mind andhealth,250-300 for inurance is agreat price for you saftyand health.
STICK TO THE UNITED STATES RUN FACILITIES
so simple
made in usa also has insured to the gill in the usa
made overseas live with your results simple
and or gl with your fighting a country that doesnt give a dam about out of town peeps
yeah, Thats a great idea. Now tell me if you know any cruise ships operated under a U.S. flag. Better yet, How many Merchant Vessels are operated under the USA flag. Yeah thats what i thought.
Hopefully this will ruin Carnival and they'll go out of business. The cruise line industry is one big ripoff. Let them all sink.
That seems to me like a drop in the bucket. I'll bet the ships owners are probably getting a couple of hundred million dollars for the loss of the ship.
In case you have not caught on to Republicans talk about tort reform, this is an excellent example. It would severley limit the liabilities of corporations who harm and endanger people. This should cost Carnival BILLIONS in settlements. Let me sit on the jury.
We are going on a cruise next month. We will have an excellent time on board. We will do our drill before leaving port as required. We will eat, drink and make Mary.
Mary is my wife. HAHAHAHAHAHAHA
Don't be jealous now.
So Mary is going to have herself some Dick?
Sorry...couldn't resist.
I read some of the posts at the very beginning at didn't see anything about the crew. Apparently the crew of this ship were not very well trained for emergencies. I think that is what is really scarry about this. How can Carnival not train their crew for emergencies? They are responsible for the safety of the people on board and they don't even train their crew? When that woman in the article said her rescue boat was hitting the ship and then dropped into the water I can understand the fear they must have felt. I think Carnival has some culpablity here.
I'm sure the crew was trained very well, but these are PEOPLE!!! They are not making tons of money. They know the drill but when the ship starts sinking they panicked too...just like everyone else. I'm sure the guy making $25k a year isn't about to risk his life..he's getting the hell off the ship. You can train them all you want but survival instinct and fear will kick in for alot of people. Give them a break.
Read what I wrote. I was not blaming the crew I was blaming Carnival for not training the crew. Somehow I doubt that all the crew panicked if they did then they need to look at getting a different job. You make it sound like it's ok to panic when something goes wrong in your job even though the job has some risk associated with it. Part of their training should be teaching them how to handle their fear.
The settlements should be higher - period. There is no way to determine the amount of physical and psychological medical bills that will incur now and in the future, due to this trauma, for every person on board. As well, the expectation that you should have a competent captain of the ship and crew is a given and they just plain failed. They ARE going to pay more and they SHOULD. They should also hang their head in shame..... For Americans, who are doing good to get two, maybe three, weeks of vacation per YEAR - it's bad enough that their holiday was destroyed. But, how do we even comprehend that this cruise line KILLED 32 people as well??? What level of compensation can possibly console the families of those victims? There is no amount of money that will change the fact that their loved ones are dead, ripped from their lives forever because of such a stupid, incompetent act that should never have happened.
Yeah..they can't sleep at night...night tremors..headaches...flashbacks...can't go near water...afraid of boats...blah, blah, blah. We've heard the lawyer speak a million times when there's a chance for a payday.
Only the physically injured or killed have a right to extra compensation. The rest should take their $14k, stfu and go home. Greedy bastards!!!
OMG the ignorance of some people amazes me. Remember, for a lawyer to be involved in a lawsuit they need a client. There are good and bad lawyers just like there are good and bad in every profession. Blame the lawyers all you want but remember that businesses and corporations are just as greedy as people are.
$29K and they weren't hurt? That is the more than fair, as long as it covers their out-of-pocket costs/losses, and probably whatever pay they'd lose taking another vacation if they had to take time off to do it. Add it up, and whichever is more, that's what the check is for. Only a scumbag would try to profit.
Plus they've got a great story to tell their grandkids. They'll be repeating this story for the rest of their lives.