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Owner/Operator of Dali Agree to Pay U.S. $102M in Baltimore Recovery Costs

Dali Baltimore wreckage
The owner and operator of the Dali agreed to settle U.S. federal claims for the cost of the recovery operation (USCG)

Published Oct 24, 2024 8:55 PM by The Maritime Executive

 

[Updated to include a statement from Grace Ocean and Synergy Marine]


In a surprise development coming just a month after the United States filed suit against the owners and operators of the containership Dali for the costs of the federal recovery efforts in Baltimore, the case has been settled. Grace Ocean and Synergy Marine agreed to pay the federal government $101,980,000 to resolve the civil claim for the costs of the recovery after the Dali hit and destroyed Baltimore’s Francis Scott Key Bridge.

The settlement is only a small part of the massive legal claims the owners and operators face for the March 2024 allision of the containership that killed six people and destroyed the bridge. The companies shortly after the incident had tried to invoke a law that would have limited their liability to approximately $43.7 million in total.

Today’s settlement only covers the federal civil suit claim for the cleanup expenses. The City of Baltimore has also filed suit and the State of Maryland which owned the bridge has filed a claim including seeking the replacement cost of the bridge which could run as high as $2 billion. Families of the victims and businesses impacted by the loss of the bridge and the closing of the harbor for months have also entered claims and a criminal investigation is ongoing based on investigations that found faults in the ship’s electrical systems and maintenance. 

The owners and operators of the Dali issued a statement highlighting that the federal government’s claim was unique and significantly different from other claims, as it fell outside the usual limitation of liability framework. They also noted that no punitive damages were imposed as part of the settlement.

"The settlement strictly covers costs related to clearing the channel, which we would have been responsible for in any case, and is not indicative of any liability, which we expressly reject for the incident that led to the collapse of the Francis Scott Key Bridge," said Grace Ocean and Synergy Marine in a written statement to the Maritime Executive.

Officials from the U.S. Justice Department emphasized the quick resolution of their claim. They also said the settlement ensures Grace Ocean and Synergy Marine, not the American taxpayer bore the cost of the cleanup and recovery. The Department of Justice filed its claim as part of the case in Maryland’s court on September 18 seeking just over $103 million as the costs of the recovery operations.

“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,” said 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.”

Today’s settlement goes to the U.S. treasury and is applied to the budgets of several federal agencies directly affected by the allision or involved in the response. It is in addition to $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.

Lawyers for Grace Ocean and Synergy Marine earlier this week filed with the Maryland court proposing a January 2027 trial. Plaintiffs including the Department of Justice are proposing a December 2025 trial.