I would think the insurance company took over the legal as soon as the boat hit shore. They automatically try to take control of the situation, to minimize the liability they are going to be responcible for. If you are ever in the situation for liability for the death of a diver and you haven't had a lawyer take charge of the situation, you are an idiot. This letter is more a reflection of the lawyer's perspective than those of the captain, DM or the charter. I would hope that the lawyers would protect my interests as much as possible. What gets said on the local news can hang around for years of litigation. If a crew man threw a O2 bottle over the side, the context of doing that may be debatable... For all we know that didn't happen at all. I am not taking sides in this cluster f**k. But it might be better not to read into the incident things that are might or might not be there. I think the take home message is to be discriminating when selecting a charter company.
Probably exactly what happened. Involvement of lawyers is definitely a good idea. But there are several ways to kill your business. You might fail in court because you did something bad or you had incompetent counsel. Or you could simply let your lawyer piss off or scare all your future customers - even if you did nothing wrong. There's more to this than right or wrong or properly defending yourself. Agree with you in principle, but this was handled poorly if the intent was to continue the business (generally what the owner wants). Just a practical observation.