A recent ruling by an Australian court has found Carnival, the cruise operator, to be "negligent and in breach of its duty of care" in its handling of a Covid-19 outbreak on board one of its cruises at the start of the pandemic.
The case was brought forth by a passenger who contracted Covid-19 while aboard the Ruby Princess, a cruise operated by Carnival's Princess Cruises. Following the class-action lawsuit, the court ordered Carnival to cover the medical expenses of the affected passenger.
In response to this ruling, CarnivalCorp. stock (ticker: CCL) saw a slight drop of 0.7% shortly after the market opened on Wednesday. Similarly, its London-listed Carnival PLC stock experienced a 1.1% decrease.
The Ruby Princess set sail from Sydney on March 8, 2020, carrying over 2,600 passengers for a 13-day cruise to various destinations in New Zealand. Tragically, hundreds of passengers contracted Covid-19, and more than two dozen lost their lives as a result, according to an inquiry initiated by the government of New South Wales.
The court's findings revealed that a previous voyage of the Ruby Princess, which had ended earlier on March 8, had already been affected by an outbreak of acute respiratory infection and influenza-like illness. Justice Angus Stewart, in an online summary, stated that Carnival was aware or should have been aware of the elevated risk of coronavirus infection on the ship, along with the potentially fatal consequences it could pose. Consequently, it was determined that a reasonable course of action for Carnival would have been to cancel the voyage altogether.
Carnival Australia Faces Legal Consequences for Covid Outbreak
Introduction
Carnival Australia, one of the world's largest cruise companies, has been found guilty of providing "misleading" information regarding the safety of passengers during the Covid-19 pandemic. The company was also accused of failing to implement proper monitoring, screening, and sanitation protocols. A recent ruling has ordered Carnival Australia to pay 4,423 Australian dollars (US$2,805) to cover the plaintiff's out-of-pocket medical expenses. Although damages were not awarded, this decision has potentially paved the way for future litigation against the company.
Lack of Safety Measures
According to the plaintiff, Carnival Australia made false claims ensuring the safety of passengers embarking on their cruise ships. This led to an alarming number of over 600 individuals contracting Covid-19 on board. In response to the ruling, Carnival Australia stated that they are currently reviewing the judgment and expressed sympathy for those affected by the pandemic.
Limited Compensation
While the decision did not grant the full amount sought by the passenger, who had initially requested over A$360,000, it is important to note that the ruling only covered medical expenses incurred by the plaintiff. The judge did not award damages for personal injuries, distress, and disappointment, although this aspect could have potentially opened the door for further claims against the company. Legal experts involved in the class action have called for Carnival Australia to compensate all passengers affected by the outbreak.
Future Implications
While the order to pay medical costs may not significantly impact the cruise industry as a whole, it does leave Carnival Australia vulnerable to additional litigation, especially from those who were aboard the Ruby Princess during the outbreak. This case highlights the potential consequences that cruise companies may face if they are found to have neglected safety measures during unforeseen circumstances such as a pandemic.
