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DOJ Reaches $100M Settlement With Owners, Managers Of Vessel That Destroyed Key Bridge

The owners and managers of the ship that destroyed the Francis Scott Key Bridge earlier this year in Baltimore have reached a settlement exceeding $100 million to offset the government's costs, federal authorities announced late on Thursday.

Francis Scott Key Bridge collapse

Francis Scott Key Bridge collapse

Photo Credit: Baltimore Police Department
Key Bridge Collapse.

Key Bridge Collapse.

Photo Credit: County Executive Angela Alsobrooks
Francis Scott Key Bridge

Francis Scott Key Bridge

Photo Credit: Wikimedia Commons/David Adams / U.S. Army Corps of Engineers, Baltimore District
A daytime view of the cargo ship that crashed into the Francis Scott Key Bridge in Baltimore on Tuesday, Mar. 26, 2024.

A daytime view of the cargo ship that crashed into the Francis Scott Key Bridge in Baltimore on Tuesday, Mar. 26, 2024.

Photo Credit: YouTube - StreamTime Live

Grace Ocean Private Limited and Synergy Marine Private Limited, which owned and operated the DALI vessel that struck the bridge earlier this year, has agreed to pay a $101,980,000 settlement to resolve a civil claim filed earlier this year.

The crash dismantled the bridge, and caused chaos for the Port of Baltimore and left several workers dead.

"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," Principal Deputy AG Benjamin Mizer said in a statement. 

"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.”

Maryland Attorney General Anthony Brown previously said that the fatal collapse - which claimed the lives of six people - has impacted Maryland residents for the past several months, and will "into the foreseeable future." 

"We have grieved the loss of six lives and mourned alongside their families," the AG stated. "We have endured increased traffic and altered work commutes, degrading even the quality of the air we breathe. 

"Our state has lost valuable tax and toll revenues, and Maryland’s economy has been disrupted.

"Maryland will rebuild the Francis Scott Key Bridge, but Marylanders should not have to pay for the DALI owner’s and manager’s negligence and incompetence.”

Federal, state, and local agencies worked around the clock to remove more than 50,000 tons of steel, concrete, and asphalt from the channel, while also clearing temporary channels to relieve some of the bottleneck at the port.

"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 AG Brian Boynton, head of the Justice Department’s Civil Division said. 

“The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.”

Officials have stated that the entire incident was avoidable after the DALI experienced two electrical power failures in rapid succession, leading to the destruction of the bridge.

The ship’s owner and operator failed to diagnose or correct these failures prior to leaving its berth and neglected to report them to the two pilots who boarded the ship to guide its departure from the Port, they said. 

Investigators said that the power failure was caused by a longstanding vibration problem, which caused damage to the transformers and switchboards, including nuts and bolts coming loose and falling out.

"The wreckage from the bridge fell into the Patapsco River, blocked access to most of the Port of Baltimore, and caused enormous disruptions and other significant harms to the State and its residents that will be felt for decades to come," prosecutors stated.

"This damage resulted in a loose connection that caused the first power failure on March 26." 

The AG's lawsuit came after the DOJ sued the owners for more than $100 million and won the case.

"Marylanders rallied and moved in partnership to take bold action following the collapse of the Francis Scott Key Bridge. But the presence of action doesn’t mean the absence of accountability. We can – and we will – pursue both at the same time,” Gov. Wes Moore added. 

“We will continue to work together to come back from this historic catastrophe, rebuild the Francis Scott Key Bridge, and make Marylanders whole.”

The complete complaint from the Maryland Attorney General's Office can be found here.

The DOJ's settlement does not include any damages for the reconstruction of the bridge. Funds recovered by the State of Maryland for reconstruction of the bridge will be used to reduce the project costs paid for in the first instance by federal tax dollars. 

"There is no question that the State has incurred a massive amount in damages as a result of the DALI's negligence, nor is there any doubt that those damages are continuing to accrue," prosecutors added. "The full scope of damages will be the subject of expert testimony in the litigation, and the State’s investigation is ongoing."

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