Irish Ferries hit by adverse legal ruling about compensating passengers

Court of Justice of the EU ruled that EU regulations providing that compensation is payable to sea passengers affected by cancelled sailings applied to Irish Ferries

Irish Ferries contends that a decision by the National Transport Authority requiring it to pay compensation to many of the 20,000-plus passengers who had to change their travel plans is invalid. Picture: Sam Boal / RollingNews.ie

Irish Ferries – which is owned by ICG – has suffered a setback in its legal challenge to avoid paying compensation to thousands of passengers whose trips were cancelled on sailings between Ireland and France in the summer of 2018.

The ferry company contends that a decision by the National Transport Authority (NTA) requiring it to pay compensation to many of the 20,000-plus passengers who had to change their travel plans is invalid, irrational, disproportionate and in breach of its rights under the Constitution and EU law.

However, a legal opinion issued by the Court of Justice of the EU (CJEU) ruled that the EU regulations providing that compensation is payable to sea passengers affected by cancelled sailings applied to the Irish Ferries case.

Additional costs

It also found Irish Ferries should pay any additional costs incurred by passengers who availed of re-routing options.

Although the legal opinion is not binding on the CJEU, its recommendation is followed in the vast majority of cases. 

Shares in its owner, Irish Continental Group, or ICG, fell 3% in the latest session.   

Irish Ferries was forced to cancel its 2018 summer sailings on the Dublin-Cherbourg route due to the delay in the delivery of a new €144m vessel, the WB Yeats, from a German shipyard.

The case was referred to the CJEU by the High Court in Dublin to determine if the NTA had correctly applied EU regulations governing the rights of sea passengers.

Cancelled all sailings

Irish Ferries cancelled all sailings between Dublin and Cherbourg in two tranches after delivery of the WB Yeats, which was scheduled for May-June in 2018, ultimately did not take place until December of that year. 

The company was unable to charter a replacement vessel and had to offer and arrange alternative sailings on its other ship, the Oscar Wilde, between Ireland and France or re-routing via Britain.