U.S. Justice Department Reaches $103 Million Settlement with Grace Ocean and Synergy Marine

The U.S. Justice Department announced that Singapore-based Grace Ocean and Synergy Marine, operators of the vessel Dali that caused the collapse of the Francis Scott Key Bridge, have agreed to settle $103 million in civil damages claims.

This settlement resolves $103 million in civil damage claims sought by the United States under the Rivers and Harbors Act, Oil Pollution Act, and fundamental maritime law. Funds obtained from the settlement will be transferred to the U.S. Treasury and to the budgets of various government departments directly affected by or involved in the response efforts.

Benjamin C. Mizer, Deputy Associate Attorney General of the Justice Department, stated: "Nearly seven months have passed since one of the worst transportation disasters in recent times, and today's settlement represents a significant milestone. Through the intensive work of Justice Department attorneys from the very first day of this disaster, we were able to secure this early settlement just one month after the lawsuit was filed. This resolution ensures that Grace Ocean and Synergy bear the costs of the federal government's cleanup efforts in the Fort McHenry Channel and that American taxpayers are not burdened."

Brian M. Boynton, Head of the Civil Division of the Justice Department, added: "This is an excellent outcome that fully covers the costs incurred by the United States in responding to this disaster and holds the owner and operator of the Dali accountable. The swift resolution of this matter also avoids the expenses of a complex case that could potentially span many years."

Motor Vessel Dali departed Baltimore Harbor bound for Sri Lanka on the morning of March 26. As it passed through the Fort McHenry Channel, the vessel lost power, regained it, and then lost it again before striking the bridge. Six people lost their lives when the bridge collapsed into the river. Additionally, the Dali's collision and the bridge debris blocked navigation in the river, bringing all vessel traffic entering and leaving Baltimore Harbor to a standstill.

The United States led response operations involving hundreds of federal, state, and local organizations to remove approximately 50,000 tons of steel, concrete, and asphalt from the channel and the Dali. As cleanup operations continued, the United States created temporary channels to relieve congestion at the port and mitigate some of the economic devastation caused by the Dali. As of June 10, the Fort McHenry Channel had been cleared and commercial navigation at Baltimore Harbor resumed.

On September 18, the Justice Department filed a civil complaint in the U.S. District Court for the District of Maryland seeking damages exceeding $100 million against Grace Ocean and Synergy. The department's claims were part of a civil case in which the shipping companies sought to limit or eliminate their liability to $43.7 million.

Grace Ocean also paid $97,294 to the Coast Guard National Pollution Fund Center to mitigate oil pollution caused by the incident. The settlement does not cover any damages for the reconstruction of the Francis Scott Key Bridge. The State of Maryland, which constructed, owns, and maintains the bridge, filed a separate claim for its losses. Under applicable law, funds obtained by the State of Maryland for bridge restoration will be used to reduce project costs initially financed with taxpayer dollars.

The civil case was resolved by attorneys from the Aviation, Space, and Admiralty Litigation Section of the Civil Division of the Justice Department and the U.S. Attorney's Office for the District of Maryland, Baltimore Division.

Key Points:

• The U.S. Justice Department secured a $103 million settlement with Grace Ocean and Synergy Marine.

• The settlement covers civil damages claims related to the accident involving the vessel Dali, which caused the collapse of the Francis Scott Key Bridge.

• Six people died in the accident, and commerce at Baltimore Harbor came to a standstill.

• The cleanup operations involved the removal of approximately 50,000 tons of debris.

• The settlement does not cover the costs necessary for the reconstruction of the bridge; the State of Maryland filed a separate claim for this.

News Link: https://www.porttechnology.org/news/us-obtains-100-million-settlement-for-baltimore-bridge-collapse/

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