A federal judge has agreed with the owner and manager of the Dali cargo ship responsible for the collapse of Baltimore’s Key Bridge that the bulk of the remaining claims against them for economic damage are invalid.
On August 25, U.S. District Senior Judge James K. Bredar dismissed most of the economic damage claims by the city and county of Baltimore and eight consolidated claims by private entities including insurers.
Citing a 1927 Supreme Court opinion (Robins Dry Dock & Repair Co. v. Flint), Bredar found that the public and private entities that have sued are precluded from recovering economic losses resulting from physical damage to the Key Bridge because they had no proprietary interest in the bridge or other property.
Instead, Dali owner Grace Ocean Private Ltd. and operator Synergy Marine Group can only be held liable for economic losses if there was damage to property owned by the claimant.
In keeping with the Robins precedent, the city may pursue its claim related to alleged damage to the 72-inch water main below the river and the county may proceed to try to prove it has a proprietary interest in damaged waterways and shorelines. Also, four cargo damage claims may proceed.
Since most of the original 54 civil claims have already been settled or voluntarily dropped, the ruling actually dismissed a relatively small number of cases. None of the civil settlements contain an admission of wrongdoing by Grace Ocean or Synergy.
The Francis Scott Key Bridge collapsed in the early morning hours of March 26, 2024, after being struck by the Dali as the vessel departed the Port of Baltimore. The collapse killed six construction workers, obstructed a major shipping channel, and disrupted commerce and traffic in the region.
In addition to dismissing other claims by Baltimore city and county, the ruling throws out unsettled claims for private economic damages by longshoremen, energy, export, manufacturing, construction services, technology, sugar, molasses and publishing firms along with related insurers including Markel, Liberty Mutual, QBE, AXA XL, Evanston and Canopius. These parties had been seeking damages for losses due to business interruption, declines in advertisement and directory revenue, increased shipment costs, lost taxes and economic revenue, among other alleged losses.
The private entities, except for those pressing the four cargo damage claims, were judged to have no proprietary interest in any damaged property.
On April 1, 2024, Grace Ocean and Synergy Marine filed a petition to limit their liability for the bridge collapse. They invoked the Limitation of Liability Act of 1851 to limit their liability to the value of the ship, about $44 million.
Since then, they have settled claims far exceeding that limit.
There have been civil settlements with the federal government ($102 million) for cleanup costs and the state of Maryland ($2.5 million) for environmental damage, lost toll revenue, and broader economic disruption. Also the families of the deceased workers settled for an undisclosed amount for wrongful death. Also Baltimore Gas and Electric Co. settled claims over infrastructure damage for an undisclosed amount.
There have been settlements for reimbursements of workers’ compensation payments made to employees killed and injured in the tragedy, Other settlements have been for cargo losses. Several claims have been dismissed.
