Claims worth millions likely

Press, 28 April 1981, Page 3

Claims worth millions likely

PA Auckland Air New Zealand is about to get claims totalling millions of dollars from lawyers acting for victims of the Mount Erebus DCIO crash. After publication of the Royal Commission’s report late yesterday lawyers representing 190 of the 257 victims met in Auckland to discuss plans for filing a High Court writ against the airline and the Civil Aviation Division of the Ministry, of Transport. i Claims will be lodged for more than 100 of the 190 victims the group of lawyers represented at the inquiry’s ~ hearings. i The writ will be on behalf I of estates where claims are | sought in excess of the

$42,000 airline liability fixed by the Carriage by Air Act. Although no figures are yet available, the claims are certain to total millions of dollars, based on formulas relating to financial losses to relatives and the potential earnings if victims had survived. It is likely attempts will be made to reach a settlement before the case goes to court. To succeed in their action, the claimants will have to prove not only that the airline was at fault, but that its fault was wilful and reckless. Air New Zealand says its insurance cover is “adequate” for any likely claims. It hinted its total cover was up to $4OO million. The airline is said to be

settling claims already where estates are valued at less than the $42,000 limit of liability. Because the crash was outside New Zealand, passengers were not covered by accident compensation, although all crew members were.

Some crew were among the 190 estates the group of lawyers represented at the Royal Commission, but it is understood only estates of passengers will be covered in the writ.

It is not yet firmly known whether any foreign victims will be included in the writ. The lawyers represented 23 Japanese as well as 167 New Zealanders at the Royal Commission.

The lawyers formally wound up the consortium which acted at the inquiry and began a second, or claimants’ consortium.

A spokesman, who asked not to be named, said court action was being prepared against Air New Zealand and the Civil Aviation Division.

The spokesman said it was inappropriate to comment on the commission's report, which was still being studied.

Claims of up to $5 million a person have been awarded in recent overseas air crashes, but it is unlikely the big sums claimed in some American suits will be sought in this country.