Ruby Princess passengers reject $15 million settlement from cruise line over COVID-19 outbreak in March 2020

Ruby Princess passengers have rejected a $15 million settlement from the cruise line over its handling of the COVID-19 outbreak that started on the ship in March 2020.

One year since Ruby Princess docked in Sydney

Ruby Princess cruise passengers have rejected a $15 million settlement from the cruise line over its handling of the COVID-19 outbreak on the vessel.

In October 2023, the Federal Court found Carnival was negligent in its duty of care, misleading its passengers about safety onboard before the ship made its voyage in March 2020.

On Wednesday, Justice Angus Stewart ordered Carnival to pay the lead plaintiff, Susan Kaprik, and her legal team the costs of running the case up until the $15 million settlement offer was made on October 5, 2022.

He will not decide who will be responsible for the costs of the remainder of the case until the amount of compensation payable to all passengers is determined.

In October 2023, the Federal Court found Carnival was negligent in its duty of care, misleading its passengers about safety. Picture: James D. Morgan/Getty Images.
In October 2023, the Federal Court found Carnival was negligent in its duty of care, misleading its passengers about safety. Picture: James D. Morgan/Getty Images.

Before the trial began in October 2022, Carnival initially offered to settle the case for $15 million, but the offer was rejected by the passengers, according to AAP.

Instead, the cruise passengers responded with a counteroffer of $69 million, which Carnival rejected, leading to Justice Angus Stewart's October 2023 judgment. 

In his findings, the judge ordered Carnival to pay the lead plaintiff, Susan Karpik, $4,423 plus interest for her medical expenses.

Ms Karpik initially sought more than $360,000 for damages for injuries, distress and disappointment following the incident. 

Justice Stewart reportedly said it was impossible at this stage to estimate the amount Carnival would have to pay. Picture: Adam Yip/News Corp Australia
Justice Stewart reportedly said it was impossible at this stage to estimate the amount Carnival would have to pay. Picture: Adam Yip/News Corp Australia

The Ruby Princess left Sydney for New Zealand on a 13-day trip with about 2,600 passengers.

However, the trip came to an abrupt end after 11 days when Australia announced pandemic restrictions later that month, arriving back to Sydney's Overseas Passenger Terminal on March 19. 

The ship was controversially allowed to disembark, with 663 of the 1682 Australian passengers on board confirmed to have the virus.

A total of 28 lives were lost as a result.

Coral Princess COVID-19 outbreak ‘nothing like’ Ruby Princess

Due to legal fees falling within the range of $5.85 million and $6.75 million, Karpik argued the decision to reject Carnival's offer was reasonable as passengers would have been left with only a "relatively modest amount".

Justice Stewart reportedly said it was impossible at this stage to estimate the amount Carnival would have to pay as there was no way to determine who was eligible for compensation and to what extent.

As lead plaintiff, Karpik's claim centred on her husband Henry who was placed in an induced coma for about a month after contracting the virus, requiring ongoing care.

The court will hear the matter on April 12.