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A view of the Dali cargo vessel which crashed into the Francis Scott Key Bridge causing it to collapse in Baltimore, Maryland, U.S., March 26, 2024. REUTERS/Julia Nikhinson

A view of the Dali cargo vessel which crashed into the Francis Scott Key Bridge causing it to collapse in Baltimore, Maryland, U.S., March 26, 2024. REUTERS/Julia Nikhinson

Foreign Shipping Companies Reach $102 Million Settlement With DOJ Over Baltimore Bridge Collapse

Mike Schuler
Total Views: 2699
October 24, 2024

Singapore-based companies Grace Ocean Private Limited and Synergy Marine Private Limited, the owner and operator of the M/V DALI, have agreed to a $101,980,000 settlement with the U.S. government to resolve claims related to the catastrophic collapse of Baltimore’s Francis Scott Key Bridge.

The collapse, which occurred on March 26, 2024, claimed six lives and brought shipping in and out of the Port of Baltimore to a standstill.

“Nearly seven months after one of the worst transportation disasters in recent memory, we have reached an important milestone with today’s settlement,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “This resolution ensures that the costs of the federal government’s cleanup efforts in the Fort McHenry Channel are borne by Grace Ocean and Synergy, not the American taxpayer.”

The incident occurred in the early hours of March 26, when the containership DALI lost power while navigating the Fort McHenry Channel, causing it to strike the Francis Scott Key Bridge. The collapse killed six people and left the wreckage of the bridge and the vessel obstructing the channel, forcing a halt to shipping traffic and severing a critical highway link in the region.

Federal, state, and local agencies led an intensive response, working to remove approximately 50,000 tons of steel, concrete, and debris from the channel in the months following the incident. Temporary shipping lanes were established to alleviate the port’s bottleneck until the Fort McHenry Channel was cleared and reopened on June 10.

The U.S. Department of Justice filed a civil lawsuit in September, seeking over $100 million in damages from the companies for their failure to address known risks with the vessel’s power systems, which contributed to the disaster. According to the lawsuit, the companies neglected to resolve known vibration issues that could lead to power outages and configured the ship’s systems in a way that prevented rapid restoration of propulsion and steering during the incident.

“This was an entirely avoidable catastrophe,” said Principal Deputy Assistant Attorney General Brian M. Boynton. “The owner and operator of the DALI failed to prevent a series of foreseeable errors, leading to this tragic outcome.”

The settlement addresses the United States’ claims under the Rivers and Harbors Act, the Oil Pollution Act, and general maritime law, totaling $103 million in damages. The funds will be allocated to the U.S. Treasury and various federal agencies involved in the response to the disaster.

The settlement does not cover the costs of reconstructing the Francis Scott Key Bridge, which the State of Maryland, as the bridge’s owner and operator, is pursuing through a separate legal claim. Funds recovered by Maryland will be used to reduce the project costs borne by federal taxpayers. This settlement is in addition to $97,294 already paid by Grace Ocean to the Coast Guard National Pollution Fund Center for oil pollution abatement costs arising from the incident.

“This accident happened because of the careless and grossly negligent decisions made by Grace Ocean and Synergy, who recklessly chose to send an unseaworthy vessel to navigate a critical waterway and ignored the risks to American lives and the nation’s infrastructure,” said Acting Deputy Assistant Attorney General Chetan Patil of the Civil Division.

The Department’s claim came after the two companies filed a legal action shortly after the accident, seeking to either be exonerated or have their liability limited to approximately $44 million.

The case was handled by the Civil Division’s Aviation, Space & Admiralty Litigation Section and the U.S. Attorney’s Office for the District of Maryland.

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