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Francis Scott Key Bridge Collapse: Owner of the Vessel Made to Pay $102M

US secures $102M from the owner & operator of the vessel responsible for the Key Bridge collapse. Funds will cover federal cleanup costs & restoring operations.

US secures 2M from the owner & operator of the vessel responsible for the Key Bridge collapse. Funds will cover federal cleanup costs & restoring operations.

$102 Million Settlement Reached Over Francis Scott Key Bridge Collapse

Tragic Accident Stops Port Operations and Causes Loss of Life

The U.S. Department of Justice has reached a $101.98 million settlement with two Singapore-based companies, Grace Ocean Private Limited and Synergy Marine Private Limited. These companies owned and operated the Motor Vessel DALI, the ship responsible for the Francis Scott Key Bridge collapse on March 26, 2024. This settlement will help cover the costs the federal government incurred while cleaning up the wreck and restoring operations at the Port of Baltimore.

Key Bridge Collapse Claims Lives and Blocks Major Shipping Route

On March 26, the Motor Vessel DALI lost power shortly after leaving the Port of Baltimore. Though the crew regained power briefly, the ship lost it again and crashed into the Francis Scott Key Bridge. The impact caused the bridge to collapse into the water below, killing six people.

This tragic accident disrupted local transportation and blocked the Fort McHenry Channel, an essential shipping route. All shipping operations at the Port of Baltimore stopped, creating delays for freight operators and leaving commuters stranded without access to a key highway.

Fast Response Restores Port Operations

Federal, state, and local agencies quickly worked together to clear the wreckage and reopen the port. Crews removed over 50,000 tons of debris, including concrete, steel, and asphalt from the bridge and the Motor Vessel DALI. To ease the pressure on shipping, temporary channels were set up during the cleanup.

The main channel was finally cleared by June 10, allowing the port to reopen. However, the cleanup operation came at a significant cost, which the U.S. government sought to recover through legal action.

Legal Case Results in Early Settlement

The U.S. government filed a lawsuit against the ship’s owner and operator on September 18, demanding over $100 million in damages. The claims were based on laws such as the Rivers and Harbors Act and the Oil Pollution Act.

Only one month into the lawsuit, the two companies agreed to settle the case by paying $101.98 million. Benjamin C. Mizer, Principal Deputy Associate Attorney General, described the quick settlement as a major step forward:

“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.”

Brian M. Boynton, the head of the Civil Division, added: “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.”

This settlement avoids the need for years of costly legal battles. The funds will be used to reimburse the federal agencies involved in the cleanup, reducing the burden on U.S. taxpayers.

Environmental Risks Also Addressed

In addition to the settlement, the companies have already paid $97,294 to the Coast Guard to address the risk of oil pollution from the wreck. However, the agreement does not cover the costs to rebuild the Francis Scott Key Bridge.

Maryland Seeks Compensation for Bridge Reconstruction

The State of Maryland, which owns and operates the bridge, has filed a separate claim for reconstruction costs. If Maryland wins its case, the recovered funds will help reduce the federal government’s share of the rebuilding expenses.

Looking Ahead

With the legal case resolved, focus now shifts to rebuilding the Francis Scott Key Bridge and restoring the region’s transportation network. The $101.98 million settlement holds the responsible companies accountable and ensures that the cost of the federal response is not passed on to taxpayers.

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