MAS can be sued over MH370, say legal experts
Not knowing what happened to the missing Malaysia Airlines (MAS) flight 370 does not absolve the airline from its financial responsibilities to the families of the 239 people on board, said legal experts.
Speaking to CNN, they said while the claims process would be complicated, it is difficult for MAS to plead absence of negligence.
"The negligence may have even begun in the process of accepting stolen passports," said Brian Havel, a law professor and director of the International Aviation Law Institute at DePaul University, referring to the earlier discovery that two Iranians had boarded the plane using stolen passports.
Under the Montreal Convention adopted by members of the International Civil Aviation Organisation (ICAO), an airline must pay initial compensation of between US$150,000 and US$175,000 (RM494,000 and RM578,000) to relatives of each passenger killed in an air crash.
And unless the airline can prove it took all necessary measures to prevent an accident, the relatives can sue for further damages.
A lawyer who has dealt with passenger claims said not knowing what happened to the aircraft would present "some significant hurdles", but from a legal point of view, it was not unprecendented, said Dan Rose, as quoted by CNN.
Legal experts said Boeing, the plane's manufacturer, can also be held liable if a mechanical flaw is ruled as the cause, but this could be difficult if the plane was not recovered.
Monica Kelly, an attorney at Ribbeck Law Chartered who plans to file a suit against Malaysia Airlines and Boeing, told CNN that based on her experience, families could receive between US$400,000 (RM1.3 million) and US$3 million (RM9.9 million) in damages.
However, it could take two years before they see the money, she said.
The CNN report said a lot would depend on where the lawsuits are filed.
According to aviation lawyer Mike Danko, plaintiffs tend to be awarded much larger sums in US courts than in other countries, with some awards touching US$6 million to US$8 million.
Lawsuits could be filed in several countries as there are at least 14 nationals on board flight MH370.
CNN reported that US lawyers are already in Beijing.
Chinese citizens make up 153 of those on board the MAS plane.
Havel, meanwhile, believed that most claims would be settled out of court.
The CNN report said uncertainty about the passengers' fate could slow the legal process but most countries would allow judges to rule that a passenger was presumed dead if there was no news for months.
This will enable the families to file claims including for life insurance.
CNN said much of MAS's expenses would be covered by insurance policies which cover a plane and its passengers.
"Coverage averages between US$2 billion and US$2.5 billion per aircraft, including about US$10 million per passenger," Havel told the network.
The first claims for the missing aircraft has already been paid.
Allianz had confirmed that it is the lead insurer covering the MAS aircraft and said the company and other co-reinsurers of the MAS aviation hull and liability policy had made initial payments.
"This is in agreement with the insurance broker, Willis, and is in line with normal market practice and our contractual obligations where an aircraft is reported as missing," the German insurer said on Wednesday.
The search for the Malaysian jet is the longest in modern passenger-airline history. The previous record was the 10-day search for a Boeing 737-400 operated by Indonesia’s PT Adam Skyconnection Airlines, which went missing off the coast of that country’s Sulawesi island on January 1, 2007. – March 22, 2014.
