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The Norway boiler exploded at quayside in Miami in May 2003.
In a new twist, Miami-Dade County and the Public Health Trust of Miami-Dade County have teamed up with the victims to demand that NCL reimburse them for the victims’ medical expenses and the cost of the fire and emergency response, which the county attributes to NCL’s “criminal acts”.
A memorandum filed by these parties with the US District Court for the Southern District of Florida also hints that NCL’s insurers might be entitled to reclaim the amounts they have paid towards Norway settlements.
The Public Health Trust of Miami-Dade County, through its Jackson Memorial Hospital, is said to have spent $823,491 towards treating the victims, and received only $658,792.
In addition to demanding the balance $164,698, the complaint adds: “If the medical bills were paid by NCL’s insurance underwriters, restitution to the underwriters is proper, as it is against public policy to allow a criminal defendant to insure their criminal acts.”
Likewise, the $161,512 spent on fire response is said to “arise directly from NCL’s criminal conduct and should be borne by NCL, not the taxpayers”.
NCL is said to have received $5.3m in charter loss insurance, and its books have shown a further $19.7m accrual towards property damage insurance. NCL must return such money and reimburse its insurers any part of the $12.75m paid to settle Norway cases that came from insurance proceeds, the memorandum notes.
Ten victims listed in the memorandum accuse NCL of making a profit on the Norway disaster, and another profit by selling it for scrap.
“NCL decided not to repair or replace the Norway’s dangerous steam boilers, pegged at $5m to repair and $220m to replace. In doing so, NCL not only kept the money but earned millions of dollars in carrying passengers instead of dry-docking,” the victims state.
The $12.8m NCL has told the court it paid as “full” restitution went only to people represented in civil suits and does not cover other victims, the memorandum notes. The amount represents a civil litigation situation and is not commensurate with restitution in a criminal trial, it adds.
The victims in the memorandum, all of whom are Filipinos, allege that victims from other countries received higher sums under settlements, and want NCL to explain the discrepancy.
The memorandum posits $2m per dead victim and $1m per burn victim as fair restitution, to be applied equally across all nationalities.
The lawsuit follows on NCL’s plea-bargain conviction in April to a criminal count of gross negligence.
Judge Fred Moreno in May ordered the company to pay $13.75m towards full restitution based on NCL’s assertion that it was the sum total of civil cases amicably settled. The judge left the door open to further restitution, subject to a hearing scheduled for June 20. This hearing has been postponed.
The Norway boiler exploded at quayside in Miami in May 2003, killing eight and injuring 17 crew.
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