Can Oceangate be sued? Waiver form clause explored as possibility lawsuit emerges in wake of catastrophic implosion

US diving company Oceangate has been making headlines ever since one of its submersibles, which had five passengers onboard, went missing on June 18, 2023. Later, on June 22, the US Coast Guard announced that the submersible disappeared on the same day it took its dive, roughly two hours after it began its journey, and was found in pieces on the ocean floor due to a "catastrophic implosion" of its pressure chamber.

In a statement issued to People Magazine, OceanGate confirmed that all five passengers in the submersible have died.

"This is an extremely sad time for our dedicated employees who are exhausted and grieving deeply over this loss."

The five passengers onboard were French explorer Paul-Henri Nargeolet, Pakistani businessman Shahzada Dawood, his son Suleman Dawood, British billionaire Hamish Harding, and OceanGate CEO Stockton Rush, who was also the pilot of the submersible.

Passengers, who reportedly paid up to $250,000 per person for the opportunity to go down 12,500 feet (3,810 meters) below sea level, are thought to have signed liability waivers. The forms reportedly mentioned several pointers that freed the company from any liability or accident which might occur during the eight-hour trip.

---

The OceanGate waiver forms could prevent the diver company to get sued

While speaking to People Magazine, CBS Journalist David Pogue revealed he took a trip with OceanGate Expeditions to the Titanic wreck in July 2022 and had signed waiver forms that highlighted the possibility of dying three times on its opening page itself. He said that the form clearly mentions that the trip could leave you emotionally traumatized, permanently disabled, or even killed.

“The waiver says ‘This vessel has not been inspected or certified by any government body.' So you know very well that it is a one of a kind vessel."

According to the news outlet Reuters, waivers are not always secure, and it is not unusual for judges to decline them if there is proof of gross negligence or dangers that were not fully revealed.

While speaking to the publication, maritime law expert Matthew D. Shaffer said:

“If there were aspects of the design or construction of this vessel that were kept from the passengers or it was knowingly operated despite information that it was not suitable for this dive, that would absolutely go against the validity of the waiver."

However, this necessarily does not mean that OceanGate cannot be sued for certain types of criminal actions since the five passengers now have died. In a conversation with People Magazine, Neama Rahmani, trial lawyer and former federal prosecutor said:

“You can only waive a simple negligence. By law, you can’t waive gross negligence. So this is above and beyond, you know. So, whatever waiver they signed ... You can waive known risks, but you can’t waive something more than that, which again, I’m certainly no expert in these types of vessels, but this seems like something more than simple negligence.”

Even Stanford University's law professor Nora Freeman Engstrom said that a signed waiver does not mean the company can be completely off the hook for wrongful deaths.

"If an operator behaves recklessly, most courts will not let the operator off the hook."

Records show that every year, many lawsuits are made against skydiving, scuba diving, windsurfing, and other extreme activity companies. Some of these cases end in large payouts. The cases, on the other hand, can take years to go to court.

In February 2023, a Scuba company from Montana settled a lawsuit out of the court after one of its guests died in 2000 while diving at Glacier National Park. Soon after, the business was shut down.