The Federal Court has rejected appeals by a Ruby Princess cruise passenger and the tour operator over the Covid-19 outbreak on the ship in 2020.

The full court decision upholds a 2023 Federal Court ruling that the cruise line breached consumer guarantees and its duty of care by failing to cancel the trip and not warning about the heightened risk of covid on the ship.

The judges have also upheld an earlier decision that damages should not exceed refund of the ticket price, and the passenger was not entitled to a personal injury payout.

The passenger had appealed against the damages award, while the cruise line appealed against the findings of negligence.

The Ruby Princess sailed from Sydney in March 2020 for a 13-day cruise to New Zealand, but returned early after an outbreak of the virus.

The incident led to a class action by passengers, executors of the 28 passengers who died, and family members.

Passenger Susan Karpik became lead plaintiff and sought damages of more than $300,000 for personal injuries, distress and disappointment. 

Ms Karpik’s husband, Henry, spent nearly two months in hospital after falling ill. Ms Karpik had to isolate once the ship returned to Sydney and during this time was told her husband was near death but she could not visit him. Mr Karpik had a long recovery, and Ms Karpik claimed the impact on her mental health was significant.

The Full Court upheld the 2023 decision putting damages at no more than the $4400 ticket price and accepted her claim for out-of-pocket medical expenses of about $4423.

Law firm Barry Nilsson says the case demonstrates the potential breadth of protection under consumer law and the courts’ willingness to enforce those protections “even in novel or catastrophic circumstances”.

But the threshold for non-economic loss remains a significant barrier in psychological injury claims, and refunds may extinguish claims for distress and disappointment, it adds.

See the judgment here.