BulletProofBlog the blog on crisis communications

In this regular feature, Bulletproof interviews top plaintiffs' attorneys for their perspective on the crises likely to affect businesses in the near future. Today we talk to James P. Kreindler of Kreindler & Kreindler LLP, arguably the world' s leading aviation plaintiffs' firm. Mr. Kreindler and his partner Steven Pounian have just been named Trial Lawyers of the Year for 2009 by the Trial Lawyers for Public Justice Organization for their work in the Lockerbie, Scotland - Pan Am 103 Litigation.

After a three-month trial, Mr. Kreindler and Mr. Pounian, in a landmark case originally spearheaded by the late Lee Kreindler, recovered more than $500 million from Pan Am for willful misconduct in allowing a bomb to be placed on Flight 103. Kreindler & Kreindler also forced Libya to pay $10,000,000 to each affected family (for a total of $2.7 billion).

We asked Mr. Kreindler to discuss the issues facing the airline industry.

Are the cases you typically handle totally event-related, or are there endemic issues confronting the airline industry?

James Kreindler: For the most part, these cases are event-based especially where U.S. carriers are concerned. For the most part, the U.S. companies do a good job in following safety standards and, fortunately, it' s been a long time since a major disaster and the loss of hundreds of lives involved a U.S. airline. At the same time, the Montreal Convention [which created uniformity in the compensation of the victims of airline-related terrorism] means that cases like our Lockerbie suit are now a thing of the past.

That said, flight volume is way up, which naturally increases the likelihood of future disasters. Unfortunately, not all carriers are as assiduous as the major American companies. In this country, regional carriers have persistent problems.

In particular, many foreign airlines are flying outmoded equipment, and thus the relative frequency of crashes in Africa and elsewhere in developing economies. It' s my impression, based solely on the news reports that I' ve read, that this week' s Bangkok Airways mishap, which killed the pilot and injured 42 passengers, may have been attributable to sub-standard equipment.

Would it then be fair to say that a plaintiffs' aviation practice is an increasingly global practice?

James Kreindler: Yes. The firms that will be the leaders in representing disaster victims are those that already have significant experience litigating such cases on an international basis. Meanwhile, the combination of greater flight volume internationally, and the possibility of more cost-cutting by foreign airlines in the current economy, suggests that there is real exposure for these smaller local and foreign airlines.

While Kreindler & Kreindler is known for aviation and disaster cases, you cite a record wrongful termination verdict for a partner fired by the law firm Cadwalader, Wickersham & Taft, as one of your three proudest achievements. Why?

James Kreindler: I believe that case set a powerful guideline for professional service firms - that you cannot simply ignore a partnership agreement when you fire a partner. The agreement must be honored. Some firms typically use subterfuge to get around their contractual obligation. Some cut partner compensation in an effort to force the issue.

The issues involved have never been as important as they are now in the current economy when law firms and other professional organizations are so eager to reduce their ranks. I hope that the Cadwalader case still provides a warning to firms today, that they incur immense liability and disruptive reputational threats when they try to maneuver their way around their own stipulated commitments.

Larry Smith is Senior Vice President of Levick Strategic Communications and a contributing author to Bulletproof Blog.