Staten Island Ferry damage claims now uncappable

A federal judge today rejected New York City’s attempt to use an obscure 19th-century maritime law to cap its liability in the 2003 crash of the Staten Island Ferry at $14 million.

The ruling exposes the city to tens of millions of dollars in damage awards to relatives of those killed and to scores of people injured when the boat, the Andrew J. Barberi, crashed into a maintenance pier at the Staten Island ferry terminal.

The city had argued that the accident was covered by an 1851 act, aimed at encouraging investment in the shipbuilding industry, that limited a boat owner’s liability to the value of the boat minus the repair costs — in this case $14.4 million.

The city has already paid out $27.6 million to settle two-thirds of the 186 damage claims. Of the 11 people killed in the crash, the estates of only two have settled with the city, for $3 million and $450,000.

The amounts of many settlements were held down, lawyers for the plaintiffs said, by the city’s argument that if it succeeded in capping the liability, the plaintiffs stood to win relatively little.

“The courthouse door is now open for all of the claimants to get just and proper compensation,” said Anthony Bisignano III, a lawyer for 10 of the remaining 65 plaintiffs. Mr. Bisignano said that in addition to the nine outstanding death claims, there were many claims from passengers with serious injuries, including amputations and paralysis.