Boeing agrees deal with families of Ethiopia crash victims
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Boeing agrees deal with families of Ethiopia crash victims
Boeing has reached an agreement with the families of the 157 people who died in the Ethiopia 737 Max crash in 2019.
The plane maker accepts liability for their deaths, according to court documents in Chicago.
In return, families of the victims will not seek punitive damages from the company. Lawyers for the victims' families said Boeing would still be held "fully accountable", welcoming the agreement as a significant milestone.
Boeing shares fell 1% to $218.50 on the news.
The agreement opens the way for families outside the US, in countries such as Ethiopia and Kenya, to claim compensation through the US courts, rather than in their home countries, which might be more difficult and result in lower payments.
The plane maker accepts liability for their deaths, according to court documents in Chicago.
In return, families of the victims will not seek punitive damages from the company. Lawyers for the victims' families said Boeing would still be held "fully accountable", welcoming the agreement as a significant milestone.
Boeing shares fell 1% to $218.50 on the news.
The agreement opens the way for families outside the US, in countries such as Ethiopia and Kenya, to claim compensation through the US courts, rather than in their home countries, which might be more difficult and result in lower payments.
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This sort of negotiated narrowing of the dispute between Boeing and the Families is to be expected in these types of case. A welcome development. Most if not all claims will be mediated privately. The aviation liability insurers will probably be looking at an "average" settlement per claim in the region of US$7.5-$10m per passenger.
I wonder how much impact this has on Boeing’s liability insurance. If I was an insurer I’d be paying close attention to the substance of needed change at the company, The signs are not encouraging.
Unless it changed since I retired, Boeing is self insured for liability. So all settlements come from Boeing's pockets.
