Air N.Z. to face claims in U.S. court

Press, 29 April 1981, Page 1

Air N.Z. to face claims in U.S. court

NZPA Washington An American judge has ruled that Air New Zealand must face five pending lawsuits, claiming millions of dollars in damages on behalf of dependants of Mount Erebu crash victims, in a United States court.

The airline had sought permission to 'transfer the cases to New Zealand courts where allowable damages are restricted by law’. Air New Zealand asserted that the United States District Court in Los Angeles did not have jurisdiction on the cases.

La w yers involved yesterday' confirmed that the judge had rejected this motion.

A hearing on the cases, which have been consolidated, is not expected to begin before early next year.

Air New Zealand’s Los Angeles lawyer, Mr Frank Silane, said that 14 claims on behalf of Americans who died in the crash had been settled out of court. He declined to give details of the settlements.

Mr Dan Cathcart, who specialises in aviation damages claims, is representing four of the five passengers involved in the lawsuits which are outstanding.

Mr Cathcart, who has. said he will accuse Air New Zealand of “wilful misconduct” in causing the death of the passengers, said yesterday he was awaiting a copy of the official report on the crash.

A finding of “wilful misconduct” enables juries to award damages well beyond the $42,000 maximum set by New . Zealand’s Carriage By Air Act and the Warsaw Convention on Air Accidents.

From Tokyo “The Press’’ correspondent Bruce Roscoe reports that

the Japanese legal representation for the bereaved of the 24 Japanese who died in the Mount Erebus disaster would demand an average compensation of 5U5125.000 per death, bringing total Japanese claims against Air New Zealand to about SUS 3 million. The sources. who declined to be named, said SUS 125.000 per victim was a “reasonable figure” for Japan, but emphasised that each case differed and depended on the age. number of dependents, and earning power of the victims. Mr Shigeaki Momo, the Japanese lawyer for the Erebus association of the Bereaved, said that he would not accent the application of New Zealand law in tins litigation. He said the reported fig-, ure of about 5U590.000 per death in the Erebus’ case was “far toe low.” Road traffic deaths in Japan, he said, had resulted in compensation pav- ’ ments in excess of SUS 100.000. While declining to disclose the amounts he would demand, Mr Momo described the figures as “quite high amounts.” He said negotiations with air New Zealand’s legal representation in Tokyo were continuing. Mr Momo. however, said yesterday that the “establishment of conclusive airline culpabilitv would work in our favour in the negotiations.” Air New Zealand’s manager for Japan. Mr Mike Sano, reported no commercial reaction against Air New Zealand. He said Air New Zealand flights from Tokyo were “nearly fully booked.” .There had been no cancellations in favour of Japan Air Lines flights to New' Zealand.

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