Deputy Solicitor General Andrew Bing argued for the state.
James Hacker of Hacker Murphy in Latham represented the plaintiffs.
"I think this suit makes it abundantly clear that anyone who's hurt as a result of a negligent act by New York state, their rights are severely hampered," Hacker told the Associated Press. "This is the end of the road for this case."
Shoreline Cruises, the owner of the Ethan Allen, and its captain, Richard Paris, pleaded guilty in 2007 to one misdemeanor charge each of operating a public vessel without sufficient crew. The rule called for at least two crew, but Paris was alone when the boat capsized. Both Shoreline Cruises and Paris were fined $250.
Shoreline Cruises also settled claims filed by 17 Ethan Allen passengers or their survivors.
Matthew Quirk, whose family owned and operated Shoreline Cruises, was found dead in September 2009 in Warren County. Authorities ruled his death a suicide.
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