Key Bridge collapse: Dali owners to pay over $100 million to cover federal costs in restoring port access

Key Bridge collapse: Dali owners to pay over $100 million to cover federal costs in restoring port access

The owners and operators of the vessel that crushed the Francis Scott Key Bridge will pay more than $100 million to the federal government in civil damages.

The U.S. Justice Department said Thursday that the funds from Grace Ocean Private Limited and Synergy Marine Private Limited, both Singapore-based corporations, will go to the Treasury and the budgets of federal agencies directly affected by the collision or involved in the response.

“We were able to secure this early settlement of our claim, just over one month into litigation,” Principal Deputy Associate Attorney General Benjamin C. Mizer said in a news release. “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.”

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In April in the immediate aftermath of the collapse, Grace Ocean Private and Synergy Marine Private Limited filed a claim in Baltimore’s U.S. District Court to limit their liability to the value of the ship and the expected revenue from the cargo, which would have been $43.7 million. The claim cited the federal Limitation of Liability Act of 1851, and the companies also hired a lobbying firm to fight against proposed changes to the law in Congress, according to federal lobbying records.

The 984-foot, 100,000-ton Dali lost power March 26, striking one of the Key Bridge’s integral supports and knocking down its main span. Six construction workers who were on the bridge filling potholes were killed in the tragedy.

In its filing, the Justice Department alleged that the ship had long-standing electrical problems. An investigation by the National Transportation Safety Board said the Dali experienced blackouts while in port in Baltimore about 10 hours before leaving.

The new bridge, which is expected to cost $1.7 billion, is expected to open in October 2028.

Mizer called the $101,980,000 settlement “an important milestone.”

The agreement could be the first of many payouts to governments, businesses and families impacted by the destruction of the bridge. The deadline to file lawsuits was Sept. 26.

Maryland, which owns and operates the bridge, filed a lawsuit that day, calling the disaster “entirely preventable.”

The amount of damages the state is seeking has not been quantified, Attorney General Anthony Brown said last month. The state filing includes damages for cleanup, construction of the new bridge, lost toll revenues while the bridge is down, environmental damage to state waterways, increased “wear and tear” on local roads and others.

The families of the six victims and one survivor filed claims against the ship owners and operators last month, also claiming the disaster was preventable.

“Petitioners killed six people and severely injured two others when they recklessly crashed an unseaworthy cargo vessel into the Francis Scott Key Bridge,” the lawsuits said.

Brawner Builders Inc., based in Hunt Valley, the employer of the victims, also filed a civil lawsuit against Grace Ocean Private and Synergy Marine Private Limited.

Have a news tip? Contact Dillon Mullan at [email protected], 302-842-3818 or @DillonMullan on X.