Baltimore Francis Scott Key Bridge shortly after collapse.

The owners and and operators of the Motor Vessel DALI – that destroyed the Francis Scott Key Bridge in Baltimore – have agreed to pay $101,980,000 to fully compensate the United States for the costs it incurred in responding to this disaster. However, the settlement does not include any damages for the reconstruction of the Francis Scott Key Bridge. Attorneys for the State of Maryland (which built, owned, maintained, and operated the bridge) have filed a different claim for those.

“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,” says 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.”

The US Justice Department says that Grace Ocean Private Limited and Synergy Marine Private Limited, the Singaporean corporations that owned and operated the vessel have agreed to pay the monies to resolve a civil claim brought by the United States for costs borne in responding to the catastrophic collapse of the Francis Scott Key Bridge which happened in March this year.

The settlement resolves the United States’ claims for civil damages for $103,078,056 under the Rivers and Harbors Act, Oil Pollution Act, and general maritime law. The settlement monies will go to the U.S. Treasury and to the budgets of several federal agencies involved in the response.

“Nearly seven months after one of the worst transportation disasters in recent memory, which claimed six lives and caused untold damage, we have reached an important milestone with today’s settlement,” says 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.”

What happened in Baltimore Bridge disaster?

In the early morning hours of March 26, 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, tragically killing six people.

In addition to the loss of life, the wreck of the DALI and the remains of the bridge were left to obstruct the navigable channel, bringing 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 blocked a key artery for local commuters.

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

In May this year a controlled explosion brought down the largest remaining collapsed span of the bridge. Officials confirm the detonation, overseen by US Army explosives experts on Monday (13 May 2024), went as planned. The explosion was designed to break up the bridge’s twisted metal sections into smaller pieces, making it easier for salvage crews to begin removing the wreckage with barges and cranes.

On 18 September the Justice Department filed a civil lawsuit in the U.S. District Court for the District of Maryland, seeking over $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 $43.7 million. This week’s settlement is in addition to $97,294 recently paid by Grace Ocean to the Coast Guard (national pollution fund centre) for costs incurred to abate the threat of oil pollution arising from the incident.

The post Ship owners agree to over $100 million ‘response’ settlement after Baltimore Bridge collapse appeared first on Marine Industry News.