Settlement Reached in Baltimore Bridge Collapse Case
Grace Ocean and Synergy Marine Agree to $102 Million Settlement
The owner and operator of the cargo ship responsible for a Baltimore bridge collapse have agreed to pay nearly $102 million in a civil lawsuit settlement with the Department of Justice (DOJ), as announced by the DOJ on Thursday. The cargo ship, the Dali, collided with one of the columns of the Francis Scott Key bridge in March due to mechanical issues, resulting in the bridge's collapse and the death of six workers.
Impact of the Bridge Collapse on Baltimore
The accident led to the closure of Baltimore's port and federal channel for several months, significantly slowing commercial shipping traffic through Maryland's largest city. The DOJ announced the settlement with Grace Ocean and Synergy Marine, the owners and operators of the Motor Vessel Dali, on Oct. 24.
Details of the Settlement
This settlement resolves part of the legal dispute that started in September when the DOJ sued the companies for damages related to the federal government’s response to the accident. The $101.9 million settlement will cover the federal government’s costs for cleaning up the wreckage and reopening the port. However, it does not cover the cost of rebuilding the bridge itself, which the state of Maryland is pursuing in a separate claim.
Responses to the Settlement
Benjamin Mizer, principal deputy associate attorney general, praised the settlement, stating, "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." He added that the 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.
In a separate action, Grace Ocean has already paid nearly $100,000 to the Coast Guard to address the oil spill threat caused by the wreck. Brian Boynton, principal deputy assistant attorney general at the DOJ, hailed the settlement as a "tremendous outcome" that fully compensates the United States for the costs it incurred in responding to the disaster and holds the owner and operator of the Dali accountable.
Details of the Disaster
The disaster took place on March 26 when the Motor Vessel Dali lost power while departing the Port of Baltimore for Sri Lanka. After regaining and then losing power again, the ship struck the Francis Scott Key Bridge, causing it to collapse into the water below. The collapse stopped shipping traffic in and out of the port for weeks and severed a critical highway connection. Federal, state, and local agencies worked together to clear over 50,000 tons of debris from the water, and shipping resumed by June after temporary channels were created to alleviate the congestion.
Cost of Rebuilding the Bridge
The $100 million settlement appears to fall short of the estimated costs involved in rebuilding the bridge. Shailen Bhatt, administrator of the Federal Highway Administration, confirmed to lawmakers in May that a preliminary estimate to replace the bridge stands at $1.7 billion to $1.9 billion. The construction is expected to take four years, with completion estimated to be sometime in 2028.
Bottom Line
While the settlement is a significant step towards holding those responsible for the disaster accountable, questions remain about the full financial impact of the incident. The cost of rebuilding the Francis Scott Key Bridge far exceeds the settlement amount, and it remains to be seen how these costs will be covered. What are your thoughts on this matter? Do you think the settlement is fair, or should the companies be liable for more? Share this article with your friends and let us know your thoughts. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
