Carnival Cruises appeals ruling including US passengers in Ruby Princess class action

Carnival Cruises is challenging a ruling that included US passengers in a class action that centres around over 700 cases of Covid-19 and 28 deaths linked to the Ruby Princess.

The Ruby Princess left Sydney on March 8, 2020, and returned on March 19 after sailing through New Zealand. Picture: Dean Lewis.

Bermuda-based Carnival Cruises is appealing a decision that included foreign passengers in a class action over a Covid-19 outbreak on the Ruby Princess cruise ship.

The class action centres around more than 700 cases of Covid-19 and 28 deaths linked to the Ruby Princess, which left Sydney on March 8, 2020, and returned on March 19 after sailing through New Zealand.

Carnival’s appeal follows a ruling by Justice Angus Stewart last September, which held that US and UK passengers could participate in the class action despite ticket agreements that prevented them from filing lawsuits outside the US or participating in class actions against the company.

The judge found that the international passengers needed to be “told explicitly” about the terms limiting their legal rights because they were “unusual and onerous”.

David McLure SC, acting for Carnival, said in a full Federal Court hearing on Monday that Justice Stewart was wrong to include the US passengers in the class action, saying the disputed terms were not “unusual and onerous” as the judge had ruled.

“It is unsustainable … to say an exclusive jurisdiction clause is unusual. It’s just plainly not,” Mr McLure said.

“It may be correct to say it is unusual for some Australian lawyers … but it is not correct to say it’s unusual … in North America.

“Nor is it correct to say it is onerous.”

Mr McLure pointed to US passenger Patrick Ho as an example, saying it was “not unfair”

to include a clause in the ticket agreement barring him from bringing a class action against Carnival. “The reality is he wasn’t interested to read the terms,” Mr McLure said.

The class action was filed by Shine Lawyers on behalf of 2700 passengers, relatives and executors in July 2020, sparked by Susan Karpik, against Carnival PLC and Princess Cruise Lines Ltd, the owner and operator of the boat.

The passengers have alleged Carnival’s subsidiary, Princess Cruise Lines, was negligent and breached its duty of care by letting the voyage proceed despite the Covid-19 outbreak and failing to protect passengers from contracting the virus on board or warn them about the risks.

Carnival is also accused of two breaches of the Australian Consumer Law including failure to provide a “safe, relaxing and pleasurable” holiday as advertised and false, misleading and deceptive conduct by advertising the holiday as above.

Of the 2651 passengers who paid for their tickets onto the boat, 696 bought tickets on US terms and conditions and 159 on UK terms and conditions. The remainder bought the tickets with Australian terms and conditions.

The appeal hearing continues on Tuesday.