MH370 FAMILIES LOSE US COURT APPEAL
MH370
The families of victims of missing Malaysia
Airlines Flight MH370 crash have lost an appeal against a court ruling that
lawsuits against Malaysia Airlines, insurer Allianz and manufacturer Boeing do
not belong in the US.
Lawyers for the families had appealed a 2018 ruling
by a US District Court judge that 40 wrongful death and product liability
lawsuits should be heard in Malaysia.
New Boeing CEO takes reins amid
renewed public firestorm.
Malaysia Airlines Flight MH370 disappeared in
March 2014 while flying from Kuala Lumpur to Beijing with 239 people on board
and is believed to have crashed in the Southern Indian Ocean.
Extensive
searches failed to find the wreckage and a final report on the disappearance was
unable to determine a cause for the crash, although a widely held belief is that
it was a murder-suicide involving the plane's captain.
A three-judge
panel with the US Court of Appeals for the District of Columbia Circuit found
that a lower court did not abuse its discretion when it decided the case should
be tried in Malaysia.
The ruling is a setback the families of more than
100 MH370 victims from countries such as Australia, China, India and
Malaysia.
The district court found Malaysia's public interest in hearing
claims arising from the MH370 disappearance "far outweighed" that of the United
States, even when it came to claims made against Boeing.
It also found
that private interest factors tilted strongly in favor of trying the cases in
Malaysia, given the overwhelming amount of evidence located in the South-East
Asian nation and the "potentially insurmountable challenges" of making that
evidence available in a US court.
Lawyers for the victims' families had
argued the court refused to afford any deference to the decision to sue in the
US or to specify the precise degree of deference it had applied.
The
Court of Appeals backed the lower court's decision, describing it as a
well-reasoned opinion and noting it had did not abuse its discretion that the
balance of public and private interests weighed heavily in favor of trying the
case in Malaysia.
It said the district court's analysis reflected a
careful consideration of the foreign families' interests and a thoughtful
balancing of the public and private interest factors" with respect to
individuals.
The lower court also correctly recognized that Thomas Wood,
a US citizen and resident suing on behalf of his dead brother, was entitled to
the greatest degree of deference.
"We find no reversible error in the
district court's reasoning regarding the appropriate levels of deference
afforded to appellants' claims,'' it said.
The issue was further
complicated when Malaysia decided to renationalize the airline in late 2014 and
restructure it by creating a new, separate entity, Malaysia Airlines Berhad
(MAB).
The assets of Malaysia Airlines System were transferred to MAB and
the original company was placed under administration. MAB did not assume the
liabilities related to MH370.
Lawyers for the families were critical of
the district court's analysis of issues related to the MAS/MAB restructure and
its immunity claims.
The panel found it was entirely proper for the
district court to recognize that serious jurisdictional questions existed and
weigh that as a factor in favor of dismissal.
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