DOJ Reaches $102 Million Settlement in Baltimore Bridge Collapse
A cargo ship crash at Baltimore’s Key Bridge led to tragic fatalities, environmental havoc, and huge cleanup costs. The ship’s owners settled with the DOJ for $102M.
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In March 2024, a cargo ship, the Dali, operated by Grace Ocean Private Ltd. and managed by Synergy Marine Private Ltd., collided with one of the support columns of Baltimore's Francis Scott Key Bridge. The incident, which occurred as the ship departed Baltimore en route to Sri Lanka, led to a bridge collapse, tragically killing six construction workers and severing a critical transportation artery for the Port of Baltimore. The U.S. Department of Justice (DOJ) quickly initiated a civil lawsuit against the ship's owner and operator, citing severe negligence. The Dali reportedly lost power and propulsion due to defective electrical and mechanical systems, which were known to be problematic and prone to power outages.
The Charges
The DOJ’s case against Grace Ocean and Synergy Marine accused the companies of gross negligence under multiple federal laws, including the Rivers and Harbors Act and the Oil Pollution Act. The lawsuit claimed that the companies knowingly operated an unseaworthy vessel, endangering not only the ship’s crew but also Baltimore's vital infrastructure. Specifically, the DOJ emphasized that the Dali’s faulty systems directly caused the catastrophic accident, triggering significant environmental damage and a prolonged closure of the Fort McHenry Channel, a crucial shipping lane for the U.S. East Coast.
The disaster resulted in more than $103 million in environmental cleanup and recovery costs. For over two months, federal and state agencies worked to remove 50,000 tons of debris, including steel, concrete, and the wrecked cargo ship, from the channel. Despite these efforts, the Port of Baltimore remained closed until June, significantly impacting regional commerce.
The Settlement
On October 24, 2024, the DOJ announced that it had reached a $102 million settlement with Grace Ocean and Synergy Marine. This agreement addresses the U.S. government’s claims for environmental cleanup and other damages resulting from the bridge collapse. As noted by Benjamin C. Mizer, Principal Deputy Associate Attorney General, the settlement ensures that the costs of the government’s extensive cleanup efforts will not be passed on to taxpayers. Instead, the responsible parties, Grace Ocean and Synergy Marine, will bear the financial burden.
Brian M. Boynton, the head of the DOJ’s Civil Division, emphasized that the settlement provides full compensation for the federal government’s response costs, stating, “This is a tremendous outcome that fully compensates the United States for the costs it incurred in responding to this disaster.” The settlement also avoids the prolonged expenses and complexities of potential litigation, ensuring a more efficient resolution to the matter.
The Law Firms Involved
Both sides enlisted experienced legal teams due to the high stakes of the case.
The U.S. government was represented by attorneys from the DOJ’s Civil Division, including Michelle T. Delemarre, Thomas M. Brown, Jessica G. Sullivan, Jeanne L. Amy, and others. Kelly M. Marzullo from the U.S. Attorney's Office for the District of Maryland also played a key role.
Grace Ocean and Synergy Marine were defended by Duane Morris LLP, led by Robert B. Hopkins and Laurie G. Furshman. They were also supported by attorneys from Blank Rome LLP, including William R. Bennett III and Thomas H. Belknap Jr., and Bruce G. Paulsen of Seward & Kissel LLP.
Potential Liabilities
While the $102 million settlement resolves the federal government’s environmental claims, it does not cover other damages, notably the estimated $1.7 billion cost of rebuilding the Francis Scott Key Bridge. The state of Maryland and the city of Baltimore have initiated separate legal actions against Grace Ocean and Synergy Marine to recover the costs of the bridge’s reconstruction, as well as lost revenue from the Port of Baltimore's closure.
The city of Baltimore has alleged that the companies’ negligence caused severe economic harm to the region, citing the substantial economic losses and public disruption caused by the bridge collapse. Maryland Transportation Authority (MDTA) is already in the design phase for a new bridge, which will include updated pier protection systems and improved safety measures to prevent similar incidents.
In addition to Maryland's claims, Grace Ocean and Synergy Marine had earlier filed a petition in April 2024, seeking to limit their liability to approximately $44 million, the ship’s value at the time of the crash. However, the DOJ rejected this move, leading to their eventual agreement to the $102 million settlement.
What’s Next?
The reconstruction of the Francis Scott Key Bridge is expected to be a lengthy and costly endeavor. MDTA has awarded a $73 million contract to Kiewit Infrastructure Co. for the initial phase of the project, with construction slated to begin in 2025. The replacement bridge is expected to be completed by 2028, incorporating improved safety and design features aimed at preventing similar disasters in the future.
Meanwhile, Grace Ocean and Synergy Marine may face additional financial strain as they continue to navigate both the legal repercussions of the collapse and the costs associated with their settlement obligations. Their representation in ongoing litigation suggests that further courtroom battles are likely, particularly as the state of Maryland continues to pursue its claims against the companies.
