Carnival Corporation's Australian division Carnival Australia has been directed to cover the medical expenses of a woman who contracted COVID-19, as a judge has ruled that the cruise ship operator provided misleading information to passengers regarding safety precautions, marking a landmark class action judgment.
Australia's Federal Court delivered the world's first class-action victory against a cruise shipping company, as affirmed by Shine Lawyers, who represent ~1000 Australian plaintiffs involved in the lawsuit.
Justice Angus Stewart determined that Carnival Australia had misled passengers concerning the effectiveness of its measures to prevent COVID-19 transmission and should have canceled the return voyage from Sydney to New Zealand in March 2020.
The lead plaintiff, Susan Karpik, received compensation totaling A$4,423.48 (US$2,826) to cover out-of-pocket medical expenses, but no additional damages were awarded.
Carnival Australia has stated that it is examining the court's judgment in detail. Legal records reveal that the operator has denied any prior knowledge that the risk of contracting COVID-19 was higher on a cruise ship compared to the general community before the voyage.
Susan Karpik, who, alongside her husband Henry, was a passenger on the Ruby Princess, had sought more than A$360,000 in compensation, partly due to the emotional distress caused by her husband's two-month hospitalization due to the virus, during which he was once given only a few days to live.
The Carnival Corporation is expected to face larger damages when the court evaluates the claims of other parties, particularly those related to Henry Karpik, according to Vicky Antzoulatos, co-head of class actions at Shine Lawyers. Additionally, the number of plaintiffs may increase if Australia's High Court rules that ~700 Americans can participate in the class action.
This case represents a rare legal victory against a cruise ship operator, given that the industry often operates in regions where litigation, especially class action lawsuits, is challenging.
Ruby Princess was a significant source of COVID-19 infections in Australia for a time, with 2,651 passengers disembarking, many of whom were unwell, contributing to the virus's spread within the country and internationally.
Ultimately, ~900 cases and 28 fatalities were connected to the outbreak. A public inquiry in 2020 found that New South Wales state health officials had made "inexcusable" errors in allowing passengers to disembark.