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Shuttle disaster raises questions; Contractor liability may be limited.(News)

Business Insurance, February, 2003 by Hofmann, Mark A.

Byline: MARK A. HOFMANN As the National Aeronautics and Space Administration investigates the cause of the second major disaster in its space shuttle program, a 1988 Supreme Court decision could help limit the legal liability of contractors that participated in the manufacture and maintenance of the Space Shuttle Columbia.

In addition, the survivors of the five military personnel among the seven astronauts who died in the Feb. 1 destruction of the Columbia face another hurdle, as federal law precludes lawsuits by military personnel against the government for wrongful death. In a case stemming from the last shuttle disaster-the Jan. 27, 1986, explosion of the Challenger-a federal court dismissed a suit filed by a widow of one of the military crewmembers....

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