Passengers can sue firms over trauma of crash-landing

Travel companies face massive compensation claims from holidaymakers after a judge allowed 70 air passengers to sue for the psychological distress of a crash-landing.

The decision leaves tour operators liable to claims from air travellers who have suffered post-traumatic stress as a result of troubled flights. Aviation law experts said the judgment could even allow passengers to sue for psychological distress caused by a very bumpy landing or an in-flight emergency.

About 70 passengers were granted permission to sue Thomson Holidays after their Boeing 757 flying from Cardiff crash-landed on arriving at Gerona in Spain. The Britannia Airways flight carrying 236 passengers was torn into three pieces when it bounced and skidded as it landed in a storm at the Costa Brava airport in September 1999.

Judge Graham Jones handed down his reserved ruling yesterday after considering whether the tour operator, Thomson, could claim protection against the claims under the 1929 Warsaw Convention. It now faces a possible six-figure damages payout.

Thomson's lawyers had argued that under the terms of the holiday contracts the company did not have to pay out for psychological injury. They said it was an implied condition that Thomson was covered by the Warsaw Convention which limits compensation to physical injury. But Judge Jones ruled that Thomson was liable because the company had not clearly stated the limit of its liability for such injuries in its conditions of business.

Peter Evans, the solicitor representing the claimants, said: "This ruling raises major issues for the whole travel industry about how they construct their terms and conditions." He said the ruling was a "huge step forward" for the claimants, some of whom still suffer nightmares.

There will be a separate hearing to determine the amount of damages claimants will receive.

A Spanish Aviation Authority report into the crash has still to be published.

In his judgment Judge Jones condemned Thomson Holidays for stating in its Fair Trade Charter that it would fully compensate customers for any injuries suffered, while at the same time attempting to limit that liability in the small print. He described some of the company's arguments in court as "unsustainable" and "disingenuous". He said: "If Thomsons had intended to limit its liability ... they should have spelt out clearly that it intended to exclude liability for psychiatric injury."

The case permits passengers who want to claim for psychological injury to escape the legal restrictions of the Warsaw Convention by suing the travel company rather than the airline. While the airline can limit payouts under the Convention to £85,000 for a "bodily injury" caused by an air accident, tour operators will be liable to larger claims which can include psychiatric stress.

A criminal investigation has cleared the pilot of blame. The passengers are not pursuing legal action against Britannia Airways.

Thomson said: "Although we regret the court's finding that we are unable to rely on the provisions of the Warsaw Convention, we are confident that it will be established that the actions of the Britannia crew demonstrated the highest level of professionalism in difficult circumstances and that they were in no way negligent towards their passengers."