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  • Kirk Hartley

Carnival Cruises, Contingency Planning and Caremark Duties

Under Caremark, corporate directors are to ensure that the operating staff of a business review and understand contingent risks, and that coping plans are in place – see Professor Bainbridge’s article for specifics. So, how would you feel if you were a director of Carnival Cruise lines, which apparently is failing badly in coping with the highly foreseeable possibility of losing some or all power and other services aboard a cruise ship? And, how big is Carnival’s reputation risk loss with this fiasco as a follow-up to last year’s Concordia disaster, and large amounts of subsequent litigation against Carnival.

Conclusion? Contingency planning really is needed. Just ask BP.

#DOIssues

About Kirk

Since becoming a lawyer in 1983, Kirk’s over 30 years of practice have focused on advising a wide range of corporations, associations, and individuals (as both plaintiffs and defendants) on both tort and commercial law issues centered around “mass torts.”

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