I am sorry to hear of your loss of a family member. The stress of travel added to the emotions of bereavement can be a lot to handle. It's unfortunate that Continental seemed to take an "I don't care" attitude given the situation, however there is possibly an explanation for their actions.
I'm assuming that your daughter lives in the greater Miami area? If so then all airlines, not just Continental, will not provide lodging for extensive delays if the passenger is at the starting point of their journey. What they could have done, however, is re-book your daughter on another airline in order to get her to IAD as long as the delay wasn't weather related. If the delay was due to weather unfortunately the only option is to wait it out.
Hindsight is always 20/20 but may I suggest in the future if there is an urgent need to travel such as a death in the family that you look for an airline with non-stop service. Both United and American have non-stops from MIA to IAD and checking online the fares weren't much more than what Continental was charging. Speaking of the fares, the funeral director you spoke to is misinformed. Last minute trips are always more expensive but the airlines don't "jack them up" just because one is traveling to a funeral. I agree, though, that the 10% bereavement discount offered by Continental is a joke. My father passed away last year and I flew Continental to his funeral. I was aware of the bereavement discount but was informed I would need to mail or fax a copy of his death certificate in order to receive the discount. The round-trip fare was around $600. To obtain a copy of the death certificate would have cost me $25 and I didn't want to bother my step-mom by requesting a copy from her in order to save a lousy $60 so I just let it go.
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