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Major Settlement Reached in Baltimore Bridge Collapse: Over $100 Million Paid by Cargo Vessel Owner

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Posted: 25th October 2024 by
Izabel Modano
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Major Settlement Reached in Baltimore Bridge Collapse: Over $100 Million Paid by Cargo Vessel Owner.

In a significant legal resolution, the owner and operator of the cargo vessel responsible for the tragic collapse of the Baltimore bridge have agreed to pay over $102 million to settle a lawsuit initiated by the Justice Department. This announcement comes after extensive investigations into the incident that claimed six lives and caused considerable disruption to shipping operations.

The settlement will cover cleanup expenses, but it notably excludes any compensation for the reconstruction of the Francis Scott Key Bridge, which officials estimate could cost nearly $2 billion. The state of Maryland has also filed its own claims to recover these damages.

The lawsuit targeted Grace Ocean Private Ltd., the vessel's owner, and its manager, Synergy Marine Group, both based in Singapore. The Justice Department accused the operators of failing to adequately maintain the Dali's electrical and mechanical systems, leading to a power loss that caused the ship to veer off course and collide with a bridge support column in March. At the time, the Dali was departing Baltimore for Sri Lanka when its steering mechanism failed.

Tragically, the incident resulted in the deaths of six workers engaged in pothole repairs during an overnight shift. Recovery teams have been working diligently to remove thousands of tons of debris from the Patapsco River, with the Dali ensnared in the wreckage for nearly two months.

"This resolution ensures that the federal government’s cleanup costs are covered by Grace Ocean and Synergy, rather than being passed on to the American taxpayer," said Principal Deputy Associate Attorney General Benjamin Mizer. The bridge collapse severely impacted commercial shipping at the Port of Baltimore, one of the busiest ports in the nation, particularly for vehicles and agricultural machinery. Many local longshoremen lost their jobs during the channel’s closure, which lasted until June.

Following the incident, Grace Ocean and Synergy sought to limit their legal liability in what could become the most costly marine casualty case on record. Court documents reveal that attorneys from both parties reached a settlement agreement and requested the dismissal of the Justice Department’s claim, which sought $103 million in cleanup costs.

This claim is part of a larger liability case that will ultimately determine the financial responsibilities of the ship’s owner and manager. Other claims related to the victims’ families, affected businesses, and municipalities remain unresolved.

In the wake of the incident, FBI agents boarded the Dali as part of a criminal investigation into the events leading up to the disaster. The civil complaint filed by the Justice Department offered a detailed account of failures that left the crew powerless. It cited “excessive vibrations” as a contributing factor to electrical failures and highlighted the crew's inadequate responses to these issues, including damaged equipment and dislodged cargo.

Grace Ocean Private Limited was established in 2009 with the main office in Singapore. The company specializes in various water transportation services.

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