The U.S. Justice Department has reached a settlement with the owners of the cargo ship that crashed into and destroyed the Francis Scott Key Bridge in Baltimore on March 26, according to a Thursday news release.
Singapore-based companies Grace Ocean Private Limited and Synergy Marine Private Limited agreed to pay $101.98 million to resolve the civil claim brought by the U.S. government to recoup costs from the bridge’s collapse.
The settlement resolves the U.S.’s claim for civil damages of $103 million under the Rivers and Harbors Act, Oil Pollution Act and general maritime law, per the release. The money will go to the U.S. Treasury and to the budgets of federal agencies directly impacted by the collapse or involved in the response.
“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 Associate Attorney General Benjamin C. Mizer said in the release.
The DOJ filed the civil lawsuit in U.S. District Court for the District of Maryland on Sept. 18, seeking $100 million in damages. The action came in part from the firms’ attempt to limit their liability to $43.7 million, which is the cost of the ship.
Although Grace Ocean and Synergy Marine agreed to the settlement, the companies reject liability for the event, said Darrell Wilson, a spokesperson from MTI Network, a London-based public relations firm that represents the firms.
“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 a statement Wilson shared with Construction Dive.
The Dali cargo ship left the Port of Baltimore on March 26, bound for Sri Lanka. The ship repeatedly lost power before striking one of the bridge’s piers, sending the majority of the span into the water below, according to the suit.
The DOJ’s suit claimed that the Dali owners were reckless and negligent and that the collapse was preventable. Six construction workers who were performing repair work on potholes on the bridge died when the span fell into the water.
In addition, the debris in the Patapsco River blocked a critical shipping pathway for months, and the loss of the bridge severed a stretch of vital transit infrastructure for the region.
Other suits
Hunt Valley, Maryland-based Brawner Builders, the employer of the workers who died, also filed suit against Grace Ocean and Synergy Marine Group, as have the families of three of the workers.
The settlement with the U.S. does not include any damages for the reconstruction of the Key Bridge. The state of Maryland, which built, owned, maintained and operated the bridge, has also sued the owner and operator of the Dali.
The damages paid via the DOJ agreement are not punitive, and the federal government’s claim differs from other claims in terms of liability, per the firm’s statement.
“Grace Ocean and Synergy are prepared to vigorously defend themselves in the limitation of liability proceedings pending before the Federal Court in Baltimore and to establish that they were not responsible for the incident,” the statement said.
President Joe Biden has promised the federal government would pay to rebuild the span, so should Maryland also recoup dollars through trial or settlement, the funds would be used to repay the federal government.