It’s not the Titanic, but the when the MV Explorer sank in Nov. 2007 in Antarctic Sea, some important legal lessons in crisis communications emerged.

The passengers were saved in lifeboats, but the company that ran the operation, G.A.P. Adventures, now had another problem – how to keep these understandably discontent travelers happy.

After five hours at sea, passengers were picked up by a ship, made their way to King George Island, and were then airlifted by the Chilean Air Force to Punta Arenas, Chile.

G.A.P. Adventures immediately provided them with $200 to purchase clothing and equipment, and later, US$9,300 in reimbursement for their ticket and lost items.

Lack of Satisfaction is All it Takes

But three months after the incident, the company is still dealing with the issue, and meeting with – the lawyers.

David Pett of the National Post explains why,

G.A.P. management are consulting with lawyers, in anticipation that some passengers might file lawsuits in an attempt to get increased compensation.

Michael Allison, a Master of Arts student in professional communication at Royal Roads University in Victoria, British Columbia, elaborates on why this may occur,

…a number of passengers aboard the MV Explorer were not satisfied with their refund amount, and there was the general sense that the event could have been handled better, and in a litigious world a lack of satisfaction is all it takes to open up a legal can of worms.

So although the small company incurred additional expenses after losing one of its major assets and sources of revenue, they may have mitigated even greater financial ruin by doing everything possible to appease their passengers.

Bookings are now up 41%, and the waiting list of passengers is at an all-time high.

Some Tips

Shireen Dindar of the Post shares some tips on how to deal with a disaster:

• identify potential crises specific to your industry that can affect your reputation or interruption of service
• establish a crisis management team to develop procedures in advance to any incidents
• locate a planning room, with infrastructure to allow you to monitor updates and news developments
• identify appropriate spokespersons who will deal with the media
• act quickly to deal with the media and the public
• allow stakeholders to provide feedback, including using a blog with comments or a toll-free number
• maintain confidence of stakeholders to retain future business

Establishing a communication plan prior to a disaster is essential, especially in high-risk industries.
Upcoming Conference

Similar issues are likely to be raised at the World Conference on Disaster Management, the largest international conference on the subject, held annually in Toronto.

This year’s conference will be June 15-18, 2008.

Updates

The OBA is also having a conference on a similar theme on June 2-3, 2008, Emergency Preparedness Best Practices and Critical Legal Issues.