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Cruise Co. to Pay $1M to Man's Estate
Jan 4 12:48 PM US/Eastern
By JOHN CHRISTOFFERSEN
Associated Press Writer
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NEW HAVEN, Conn. (AP) - Royal Caribbean Cruises has agreed to pay more than $1 million to the estate of a Connecticut man who vanished from his honeymoon cruise of the Mediterranean in 2005.

The Florida-based company will pay $950,000 to the estate of George Allen Smith IV and reimburse his widow, Jennifer Hagel Smith, for legal costs up to $110,000. Hagel Smith will start a fund in memory of her husband with an initial donation of $25,000 that the cruise line will match, according to a copy of the settlement obtained by The Associated Press.

The agreement was to be filed Thursday afternoon in Greenwich Probate Court, which must approve the deal. Royal Caribbean and Hagel Smith reached the settlement last June, but terms were not disclosed until Thursday.

Smith, 26, of Greenwich, disappeared July 5, 2005, from Royal Caribbean's Brilliance of the Seas between Greece and Turkey after an apparent late night of drinking. The FBI has been investigating, but no one has been charged and no body has been recovered.

Hagel Smith noted that the settlement also gives her access for the first time to records kept by the cruise line, including vessel logs, security reports, door activity records, photographs, witness statements and correspondence with the FBI.

"My single goal continues to be to find answers regarding how George died," Hagel Smith said in a statement. "Reaching a settlement in this case in no way shuts down the investigation. This proposed settlement provides the certainty of obtaining additional meaningful information surrounding George's death in a timely manner, which is very important to me."

Hagel Smith said $100,000 will go to her attorney for investigative costs and another $60,000 will be paid to forensic expert Dr. Henry Lee to continue his investigation.

"I hope it will be recognized that my loyalty to George and his memory can never be measured in media appearances, allegations, lawsuits, or dollars and cents," said Hagel Smith, who appeared on "The Oprah Winfrey Show."

Under state law, Hagel Smith will be entitled to the first $100,000 and 75 percent of the balance of the settlement after estate bills are paid, according to her attorney, Elizabeth Byrne. Smith's parents will be entitled to 25 percent of the balance after the initial $100,000 is paid to his widow, Byrne said.

Maritime law limits settlements to economic damages such as lost wages, rather than other damages such as pain and suffering, Byrne said.

Hagel Smith's settlement caused a rift with Smith's parents and sister, who sued Royal Caribbean, accusing the company of a cover-up that hindered the investigation. The cruise line denies any wrongdoing and does not admit to any liability for Smith's disappearance in the settlement with Hagel Smith.

The lawsuit by Smith's family was dismissed in November, but Smith attorney Brett Rivkind has filed an amended complaint.

Hagel Smith was found passed out on a floor far from the couple's cabin, the cruise line has said. She says she has no recollection of what happened and has said she passed an FBI polygraph test.

Royal Caribbean said when it reached the settlement with Hagel Smith that it wanted to "provide closure and move forward."

The case prompted congressional hearings and new legislation to tighten requirements for reporting when passengers disappear.

Royal Caribbean shares traded on the New York Stock Exchange Thursday morning at $43.60, up 12 cents. The stock has traded between $32.47 and $46.77 over the past year.


Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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