The owner and operator of the container ship Dali, which allided with the Francis Scott Key Bridge resulting in its collapse, have agreed to pay USD 101,980,000 to resolve the US Justice Department’s civil claim. The claim was brought by the United States for costs borne in responding to the collapse of the bridge.

Grace Ocean Private Limited and Synergy Marine Private Limited are the Singaporean corporations that owned and operated the container ship Dali.

Also read: Claims of over $100m for container ship Dali’s owner and operator

Dali hits bridge

In the early morning hours of March 26, 2024, the motor vessel Dali left the Port of Baltimore bound for Sri Lanka. While navigating through the Fort McHenry Channel, the vessel lost power, regained power, and then lost power again before striking the bridge. The bridge collapsed and plunged into the water below, killing six people.

The wreck of the Dali and the remnants of the bridge obstructed the navigable channel and brought all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in the transportation infrastructure and a key artery for local commuters.

Also read: VIDEO: Container ship Dali refloated and towed to terminal

Response efforts

The United States led the response efforts of dozens of federal, state, and local agencies to remove about 50,000 tonnes of steel, concrete, and asphalt from the channel and from the Dali itself.

While removal operations were underway, the United States set up temporary channels to start relieving the bottleneck at the port and mitigate some of the economic devastation caused by the Dali. The Fort McHenry Channel was cleared by June 10, and the Port of Baltimore was once again open for commercial navigation.

Also read: What happened in the minutes leading up to the Key Bridge collapse

Settlement

On September 18, the Justice Department filed a civil lawsuit in the US District Court for the District of Maryland, seeking over USD 100 million in damages from Grace Ocean and Synergy. The Department’s claim was part of a legal action that the vessel companies filed shortly after the tragedy, in which they seek exoneration or limitation of their liability to approximately USD 43.7 million.

The settlement now reached resolves the United States’ claims for civil damages for USD 103,078,056 under the Rivers and Harbors Act, Oil Pollution Act, and general maritime law. The settlement monies will go to the US Treasury and to the budgets of several federal agencies directly affected by the allision or involved in the response.

The current settlement is in addition to USD 97,294 recently paid by Grace Ocean to the Coast Guard National Pollution Fund Center for costs incurred to abate the threat of oil pollution arising from the incident.

Also read: Baltimore claims container ship Dali was unseaworthy before bridge allision

One month into litigation

Principal Deputy Associate Attorney General Benjamin C. Mizer: ‘Thanks to the hard work of the Justice Department attorneys since day one of this disaster, we were able to secure this early settlement of our claim, just over one month into litigation. 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 and not the American taxpayer.’

‘This is a tremendous outcome that fully compensates the United States for the costs it incurred in responding to this disaster and holds the owner and operator of the Dali accountable,’ adds Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. ‘The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.’

Also read: Shipping channel in Baltimore fully restored

Another claim for damages to bridge

The settlement does not include any damages for the reconstruction of the Francis Scott Key Bridge. The State of Maryland built, owned, maintained, and operated the bridge, and attorneys on the state’s behalf filed their own claim for those damages. Pursuant to the governing regulation, funds recovered by the State of Maryland for reconstruction of the bridge will be used to reduce the project costs paid for in the first instance by federal tax dollars.

Picture: Wreckage of the Francis Scott Key Bridge and M/V Dali cargo ship, April 17, 2024 (photo Key Bridge Response 2024 Unified Command/U.S. Navy photo by Mass Communication Specialist 2nd Class Theodore C. Lee).