Maritime Giants Settle for $101.9 Million After Baltimore Incident with DOJ

Department of Justice emblem on the American flag.

A breathtaking collapse of the Francis Scott Key Bridge, caused by the Singaporean firms’ cargo ship, has led to a $101.9 million settlement with the DOJ.

At a Glance

  • Grace Ocean and Synergy Marine pay $101.9 million for incident-related expenses.
  • The Francis Scott Key Bridge collapse resulted in six fatalities.
  • DOJ ensures companies cover federal cleanup costs, not taxpayers.
  • The settlement avoids prolonged litigation over the incident.

Details of the Incident

In March, the Motor Vessel Dali, operated by Grace Ocean and Synergy Marine, lost power and collided with Baltimore’s Francis Scott Key Bridge. The catastrophic event led to the bridge’s collapse, six fatalities, and blocked the vital Fort McHenry Channel. Regional maritime operations faced significant disruptions due to the incident.

This settlement marks the culmination of efforts from the DOJ to ensure responsible parties cover costs associated with the incident. Despite attempts by the companies to limit liability using the Limitation of Liability Act of 1851, they agreed to the DOJ’s settlement terms. This resolution highlights the federal government’s commitment to accountability in such disasters.

Settlement and Legal Proceedings

The $101.9 million settlement covers expenses incurred by the U.S. government in response to the incident. Principal Deputy Associate Attorney General Benjamin C. Mizer remarked on reaching an “important milestone” for justice in the aftermath of the disaster, ensuring costs fall on Grace Ocean and Synergy Marine rather than on American taxpayers.

“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.” stated Principal Deputy Associate Attorney General Benjamin C. Mizer

The Justice Department’s settlement also ensures swift resolution, avoiding extended legal battles. Federal, state, and local agencies coordinated efforts to remove over 50,000 tons of debris. Temporary channels allowed shipping to resume by June, a vital step in restoring regional operations.

Future Implications and Rebuilding

While the settlement addresses federal expenses, Maryland separately pursues rebuilding costs for the Francis Scott Key Bridge. The state’s congressional delegation pushes for federal funding to cover complete reconstruction. The White House has requested $3.1 billion from Congress, including funds related to this emergency.

“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”, Principal Deputy Assistant Attorney General Brian M. Boynton remarked.

The DOJ’s actions send a clear message regarding the importance of ship maintenance and operational safety. The incident, deemed “entirely avoidable,” illustrates the tension between maritime industries and regulatory authorities. As Maryland progresses with bridge reconstruction, attention remains on preventing similar occurrences in the future.

Sources:

Singaporean firms whose ship ignited the Baltimore Bridge catastrophe fined $100 million

DOJ settles Baltimore bridge lawsuit with ship interests for over $100 million

Owners of Ship Involved in Baltimore Bridge Collapse Settle