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US DOJ reaches $100 million settlement with owners of Dali

by The Editorial Team
October 25, 2024
in Shipping
maritime law

Credits: Shutterstock

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On October 24, 2024, the U.S. Department of Justice (DOJ) announced a settlement of $101,980,000 with Grace Ocean Private Limited and Synergy Marine Private Limited, the owners and operators of the MV DALI.

This settlement resolves a civil claim for costs related to the catastrophic collapse of the Francis Scott Key Bridge, which occurred after the vessel struck the bridge in March, resulting in six fatalities and significant damage to infrastructure. The funds will cover federal expenses incurred during the cleanup and restoration efforts at the Port of Baltimore, and will be allocated to the U.S. Treasury and various federal agencies involved in the response.

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.

… said Principal Deputy Associate Attorney General Benjamin C. Mizer.

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According to US DOJ, the incident caused substantial disruption, as the wreckage obstructed the Fort McHenry Channel, halting shipping and severing a vital transportation route. Federal, state, and local agencies collectively removed about 50,000 tons of debris, allowing the Port of Baltimore to reopen for commercial navigation by June 10, 2024.

The civil lawsuit filed by the Justice Department in September sought over $100 million in damages and was part of a broader legal action initiated by the vessel companies seeking to limit their liability.

”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. The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.”, commented Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. 

Additionally, Grace Ocean has already paid $97,294 to the Coast Guard for costs related to oil pollution mitigation. Notably, the settlement does not cover the reconstruction costs of the bridge itself, as the State of Maryland has filed a separate claim for those damages.

US DOJ reaches $100 million settlement with owners of DaliUS DOJ reaches $100 million settlement with owners of Dali
US DOJ reaches $100 million settlement with owners of DaliUS DOJ reaches $100 million settlement with owners of Dali
Tags: BaltimorelawsuitUS Department of Justice
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