500N `s post is informative on costs to date. In legal circles talk is that Litigation is inevitable. The question is who will ultimately bear the costs.
Current search and recovery efforts are focused on a remote area of the Indian Ocean that is seemingly not within the territory of any nation. According to Annex 13 Chapter 5.3, “when the location of the accident or the serious incident cannot definitely be established as being in the territory of any State, the State of Registry shall institute and conduct any necessary investigation of the accident or serious incident.” The “state of registry” refers to the “State on whose register the aircraft is entered.” Presumably, Flight MH370’s state of registry is Malaysia. Chapter 5.3 also permits a state of registry to delegate its investigative responsibility to another state. INMARSAT would appear to have dropped the hot potato in the right place to also create a bit of a dillema for the legal boys.
According to the Montreal Convention the burden is placed on the airline carrier in damages claims exceeding 113,100 SDRs to prove that it did not cause the damages or that a third party is at fault (see Article 21(2)). Absent such a showing, the airline carrier will be liable for all of the claimant’s damages. Regardless of fault, the airline will still be liable up to 113,100 SDRs. The scenario changes dramatically in the event evidence comes to light of mechanical failure for cause. Claims may then be brought in the US against the manufacturer.
But should it be established that cause was intentional act on the part of the crew,then wrongful death claims could significatly higher in value depending on the nation in which a claim is filed. Especially if the claim is brought in the U.S. courts, it’s of significantly more value than if it’s brought in any other. It is said that, “survivors of passengers who were U.S. residents could get as much as $10 million, while families of individuals who lived in other countries would get less than $1 million.”
At a conservative estimate the sums involved may well be in excess of $200m. I fear this could have similar effects on the beleaguered carrier, as was the case with PANAM in the aftermath of Lockerbie.
In all and every aspect the vanishing of MH370 is an unprecedented event in the annals of aviation history.
The excellent post by Low Flier 04/04 @ 17:16, does indeed give us some food for thought on the purpose and prospect of the current search effort.