MH370 puzzle seen leading to out-of-court settlements

May 11, 2014

MH370_puzzleKuala Lumpur, May 11: The lack of any evidence indicating what caused flight MH370's disappearance raises a legal conundrum that is expected to force Malaysia Airlines into out-of-court settlements with angry next-of-kin, aviation law experts said.

More than two months since MH370 disappeared, no wreckage has been found to even confirm a crash, let alone apportion blame.

But relatives of the 239 people on board can still come after Malaysia Airlines because under international aviation law it is an airline's responsibility to prove it was not to blame for an accident.

"On the surface, (Malaysia Airlines) is responsible," said Jeremy Joseph, a Malaysian attorney specializing in transport law.

The "burden of proof" rests on the national carrier to clear its name, he added.

Under International Civil Aviation Organisation rules, next-of-kin in an air crash are entitled to an automatic minimum of about $175,000 per passenger, regardless of fault, payable by an airline's insurance company.

But Malaysia Airlines is also vulnerable to civil lawsuits for potentially greater damages by hundreds of relatives already infuriated over the lack of information on the case.

The Beijing-bound plane disappeared on March 8 and is believed to have crashed in the Indian Ocean. Theories on what happened include a terror act, rogue pilot action, or mechanical problems.

No significant legal moves have yet been made as families closely monitor an immensely difficult search in vast ocean depths that has so far found nothing.

"When there is no cause identified, it is hard to see how the airline has or has not shown the absence of fault," said Alan Tan, a professor of aviation law at the National University of Singapore.

The size of any damages would depend on where lawsuits are filed. Next-of-kin can file in the country where an airline is based, where tickets were purchased, where the passengers were headed or where they lived.

Since most passengers were from China or Malaysia, most cases could be filed in the two countries, where courts are more conservative in awarding damages compared to countries like the United States.

Damages are typically based on the lost lifetime earnings of a victim and thus could total in the hundreds of millions for all passengers combined.

"In the US, settlements usually are in the $1 million-$3 million range. For Malaysians or Chinese, salaries are lower, and hence, recoveries will be lower," said Paul Stephen Dempsey, director of the Institute of Air and Space Law at Canada's McGill University.

A US law firm is already planning a "multi-million-dollar" lawsuit against Malaysia Airlines and aircraft maker Boeing, on behalf of an Indonesian passenger's family.

But legal experts said few cases will likely end up in court. They expect undisclosed out-of-court settlements between families and Malaysia Airlines and its lead insurer, German giant Allianz.

This would allow the loss-making carrier — which was struggling amid intense competition even before MH370 disappeared — to quietly lay the matter to rest and focus on rebuilding its image.

"Because of its unprecedented nature, the courts are going to look at (MH370) very carefully. That is something the airline will try to avoid unless settlement expectations from the victims families are perceived by Malaysia Airlines as unreasonable," said Malaysian attorney Joseph.

Adds Tan: "This avoids court uncertainties and protracted litigation, and most claims will end up being negotiated and settled this way, particularly those outside the US."

In the case of Air France flight 447, which crashed in the Atlantic with 228 people aboard in June 2009, the airline's insurers made compensation payments to relatives.

Only a small number of lawsuits were filed, with a Brazilian court awarding one family an equivalent of more than half a million US dollars, before its flight data recorders were recovered in 2011.

A combination of mechanical failure and pilot error were eventually blamed.

Allianz would bear the brunt of any payouts for MH370, sparing the already financially struggling airline.

Malaysia Airlines told AFP its insurance coverage is adequate for all eventualities, declining to give details. But experts said the carrier will likely face higher future premiums.

Courts are considered unlikely to apportion any blame to Boeing, engine manufacturer Rolls Royce, or other parties without evidence implicating them.

Alleging incompetence and secrecy by Malaysia's government and the airline, about 300 next-of-kin already have banded together to press for answers.

Malaysia Airlines has begun making some payouts to families under an "advance compensation process" but has declined to reveal details.

Lawsuits must be filed within two years of an accident. Families are holding off for now as they await news on the search, seeking confirmation of a crash, and emotional closure.

"If today someone cut off your limb, can you buy your limb back?" Yik-Kiong Hue, an MH370 next-of-kin, said in an email.

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News Network
July 9,2020

Washington, Jul 9: The United States recorded 55,000 new coronavirus cases in 24 hours on Wednesday (Thursday in Malaysia), a tally by Johns Hopkins University showed, bringing its total to 3,046,351 recorded infections since the pandemic began.

The country, the hardest-hit in the world, had earlier on Wednesday passed the grim milestone of three million infections. The actual number is likely far higher due to issues over getting tested in March and April.

The US also added an additional 833 virus deaths, bringing the death toll to 132,195, the Baltimore-based institution showed at 8.30pm (0030 GMT Thursday).

US President Donald Trump regularly downplays the numbers, attributing them to an increase in testing capacity during the month of June.

Coronavirus cases are surging in several southern hotspots including Texas, Florida, Louisiana and Arizona, but the pandemic has almost entirely receded from its former epicentre in New York and the north-east.

Several states have been forced to suspend their reopening processes or even reverse course, with some ordering bars to close again.

On Wednesday morning, Trump called on schools throughout the country to reopen in the fall, lashing out at his own top health agency to ease health and safety requirements aimed at slowing the spread of the virus, such as social distancing.

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News Network
January 8,2020

Sydney, Jan 8:  Authorities in Australia will begin five-day campaign to kill thousands of camels in the country as they drink too much water amid the wildfires.  The government will send helicopters to kill up to 10,000 camels in a five-day campaign starting Wednesday, The Hill reported citing The Australian.

Marita Baker, an Anangu Pitjantjatjara Yankunytjatjara (APY) (large, sparsely-populated local government area for Aboriginal Australians) executive board member, said that the camels were causing problems in her community of Kanypi.

"We have been stuck in stinking hot and uncomfortable conditions, feeling unwell, because the camels are coming in and knocking down fences, getting in around the houses and trying to get to water through air conditioners,'' she said.

The planned killing of the camels comes at a time the country is ravaged by wildfires since November. The disaster has killed more than a dozen people and caused the displacement or deaths of 480 million animals, according to University of Sydney researchers.

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News Network
February 2,2020

Feb 2: The Philippines on Sunday reported the first death from a new virus outside of China, where authorities delayed the opening of schools in the worst-hit province and tightened quarantine measures in a city that allow only one family member to venture out to buy supplies.

The Philippine Department of Health said a 44-year-old Chinese man from Wuhan was admitted on Jan. 25 after experiencing a fever, cough, and sore throat. He developed severe pneumonia, and in his last few days, “the patient was stable and showed signs of improvement, however, the condition of the patient deteriorated within his last 24 hours resulting in his demise.”

The man’s 38-year-old female companion, also from Wuhan, also tested positive for the virus and remains in hospital isolation in Manila.

President Rodrigo Duterte approved a temporary ban on all travelers, except Filipinos, from China and its autonomous regions. The U.S., Japan, Singapore and Australia have imposed similar restrictions despite criticism from China and an assessment from the World Health Organization that they were unnecessarily hurting trade and travel.

The death toll in China climbed by 45 to 304 and the number of cases by 2,590 to 14,380, according to the National Health Commission, well above the number of those infected in in the 2002-03 outbreak of SARS, or severe acute respiratory syndrome, which broke out in southern China and spread worldwide.

Meanwhile, six officials in the city of Huanggang, neighboring the epicenter of Wuhan in Hubei province, have been fired over “poor performance” in handling the outbreak, the official Xinhua News Agency reported.

It cited the mayor as saying the city’s “capabilities to treat the patients remained inadequate and there is a severe shortage in medical supplies such as protective suits and medical masks.”

After Huanggang, the trading center of Wenzhou in coastal Zhejiang province also confined people to homes, allowing only one family member to venture out every other day to buy necessary supplies.

With the outbreak showing little sign of abating, authorities in Hubei and elsewhere have extended the Lunar New Year holiday, due to end this week, well into February. The annual travel crunch of millions of people returning from their hometowns to the cities is thought to pose a major threat of secondary infection at a time when authorities are encouraging people to avoid public gatherings.

All Hubei schools will postpone the opening of the new semester until further notice and students from elsewhere who visited over the holiday will also be excused from classes.

Far away on China’s southeast coast, the manufacturing hub of Wenzhou put off the opening of government offices until Feb. 9, private businesses until Feb. 17 and schools until March 1.

With nearly 10 million people, Wenzhou has reported 241 confirmed cases of the virus, one of the highest levels outside Hubei. Similar measures have been announced in the provinces and cities of Heilongjiang, Shandong, Guizhou, Hebei and Hunan, while the major cities of Shanghai and Beijing were on indefinite leave pending developments.

Despite imposing drastic travel restrictions at home, China has chafed at those imposed by foreign governments, criticizing Washington’s order barring entry to most non-citizens who visited China in the past two weeks. Apart from dinging China’s international reputation, such steps could worsen a domestic economy already growing at its lowest rate in decades.

The crisis is the latest to confront Chinese leader Xi Jinping, who has been beset by months of anti-government protests in the semi-autonomous Chinese city of Hong Kong, the reelection of Taiwan’s pro-independence president and criticism over human rights violations in the traditionally Muslim northwestern territory of Xinjiang. Economically, Xi faces lagging demand and dramatically slower growth at home while the tariff war with the U.S. remains largely unresolved.

Among a growing number of airlines suspending flights to mainland China was Qatar Airways. The Doha-based carrier said on its website that its flights would stop Monday. It blamed “significant operational challenges caused by entry restrictions imposed by a number of countries” for the suspension of flights.

Oman also halted flights to China, as did Saudi Arabia’s flagship national carrier, Saudia.

Saudi Arabia’s state-run TV reported that 10 Saudi students were evacuated from Wuhan on a special flight. It said the students would be screened upon arrival, but did not say whether they would be quarantined for 14 days.

This weekend, South Korea and India flew hundreds of their citizens out of Wuhan. They went into a two-week quarantine.

On Sunday, South Korea reported three more cases for a total of 15. They include an evacuee, a Chinese relative of a man who tested positive and a man who returned from Wuhan. India reported a second case, also in southern Kerala state.

South Korea also barred foreigners who have stayed or traveled to Hubei province within the last 14 days from entering the country.

Indonesia flew back 241 nationals from Wuhan on Sunday and quarantined them on the remote Natuna Islands for two weeks. Several hundred residents protested the move, with one saying, “This is not because we do not have a sense of solidarity with fellow nationals. But because we fear they could infect us with the deadly virus from China.”

A Turkish military transport plane carrying 42 people arrived in Ankara from Wutan Saturday night. The 32 Turkish, six Azerbaijani, three Georgian nationals and an Albanian will remain under observation for 14 days, together with 20 personnel who participated in the evacuation, Health Minister Fahrettin Koca said.

Vietnam counted its seventh case, a Vietnamese-American man who had a two-hour layover in Wuhan on his way from the U.S. to Ho Chi Minh City.

The virus’ rapid spread in two months prompted the WHO on Thursday to declare it a global emergency.

That declaration “flipped the switch” from a cautious attitude to recommending governments prepare for the possibility the virus might spread, said the WHO representative in Beijing, Gauden Galea. Most cases reported so far have been people who visited China or their family members.

WHO said it was especially concerned that some cases abroad involved human-to-human transmission.

“Countries need to get ready for possible importation in order to identify cases as early as possible and in order to be ready for a domestic outbreak control, if that happens,” Galea told The Associated Press.

Both the new virus and SARS are from the coronavirus family, which also includes those that cause the common cold.

The death rate in China is falling, but the number of confirmed cases will keep growing because thousands of specimens from suspected cases have yet to be tested, Galea said.

“The case fatality ratio is settling out at a much lower level than we were reporting three, now four, weeks ago,” he said.

Although scientists expect to see limited transmission of the virus between people with family or other close contact, they are concerned about cases of infection spreading to people who might have less exposure.

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