$100M Settlement for US Bridge Destruction

Ship Owner Pays $100M for Bridge Damage

“This resolution ensures that the costs of the federal government's cleanup...”

A ship owner and operator will pay $100 million in damages for destroying a US bridge.

The Department of Justice announced a landmark settlement exceeding $100 million with Grace Ocean Private Limited, owner of the container ship Dali, and its manager, Synergy Marine Group. The lawsuit alleged negligence and mismanagement leading to the collapse of Baltimore's Francis Scott Key Bridge.

Federal authorities accused the defendants of “jury-rigging” the vessel and prioritizing cost-cutting measures over safety. This compromised the ship's reliability, culminating in a blackout and subsequent collision with the bridge earlier this year.

The Justice Department sought reimbursement for the costs incurred to clear the wreckage from the Patapsco River and reopen the bridge. The settlement holds the ship's owner and manager accountable for their actions.

Details:

• Settlement amount: Over $100 million
• Defendants: Grace Ocean Private Limited (owner) and Synergy Marine Group (manager)
• Allegations: Negligence, mismanagement, and “jury-rigging” the vessel
• Incident: Collision with Francis Scott Key Bridge, Baltimore
• Consequences: Bridge collapse, Patapsco River wreckage

Principal Deputy Associate Attorney General Benjamin Mizer stated, “This resolution ensures that the costs of the federal government's cleanup efforts in the Fort McHenry Channel are borne by Grace Ocean and Synergy and not the American taxpayer.” This announcement comes as part of a larger settlement where Grace Ocean Private Limited, the owner of the container ship Dali, and Synergy Marine Group, its manager, have agreed to pay over $100 million to settle a lawsuit filed by the Department of Justice.

The lawsuit alleged that the Dali's owner and manager were negligent and mismanaged the vessel, leading to the collapse of the Francis Scott Key Bridge in Baltimore on March 26. The incident occurred after the 984-foot-long container ship experienced multiple power losses and slammed into a critical support pier, causing six bridge workers to lose their lives.

A criminal investigation into the collapse is ongoing, with FBI agents conducting raids on the Dali's sister ship in Baltimore last month and the Dali itself in April. Additionally, the National Transportation Safety Board is conducting an inquiry into the incident.

Ongoing Legal Actions:

Criminal Investigation: Ongoing, with FBI raids conducted on the Dali's sister ship and the Dali itself.

National Transportation Safety Board Inquiry: Underway to determine the cause of the incident.

Victims' Family Complaints: Outstanding complaints against Synergy Marine and Grace Ocean remain.

Synergy Marine Group has expressed sympathy for those affected and is cooperating with investigators. The company has also provided support to the crew, including counseling services and daily food deliveries.

The captain of the Dali failed to inform the Maryland pilot guiding the ship out of Baltimore's port and through the Chesapeake Bay about the vessel's history of mechanical and electrical defects, power losses, and other critical issues.

Investigations by the Justice Department uncovered alarming safety violations aboard the Dali, including:

• A transformer damaged by excessive vibrations due to improper rigging
• A recklessly disabled backup system
• Loose bolts, nuts, and washers, and broken electrical cable ties in transformers and switchboards
• Poor electrical equipment that prompted an agency to halt testing due to safety concerns

These deficiencies led to a catastrophic sequence of failures during the emergency, as four critical systems designed to control the Dali malfunctioned.

Additional Findings:

• Undisclosed power losses and mechanical issues
• Improperly rigged transformer
• Disabled backup system
• Poor electrical equipment
• Multiple safety violations

These alarming lapses in safety protocols and maintenance contributed to the tragic collapse of the Francis Scott Key Bridge, resulting in loss of life and significant damage.

On the night of the catastrophe, a Maryland-licensed pilot boarded the Dali to guide it out of Baltimore's Seagirt Marine Terminal. The captain assured the pilot that the ship was in good working order, but this assurance proved catastrophically false.

As the Dali approached the Key Bridge, it lost power when a transformer tripped open. According to the Department of Justice's filing, the ship should have automatically switched to a backup circuit system within seconds, restoring steering capability. However, the automation feature had been “recklessly disabled.” Engineers scrambled in the dark to reset tripped circuit breakers, losing precious time.

The delay of about a minute was critical, government lawyers emphasized. Maritime regulations require emergency generators to kick in within 45 seconds, but the Dali's took over a minute to power on.

Investigations revealed that the transformer and breakers had “long suffered the effects of heavy vibrations, a well-known cause of transformer and electrical failure.” Instead of addressing the root issue, the crew took a dangerous shortcut. As Justice Department lawyers wrote, “Instead of taking steps to eliminate the source of excessive vibrations, [the crew] jury-rigged their ship.”

Further Findings:

• Captain assured pilot of ship's good working order despite knowledge of mechanical issues
• Transformer tripped due to excessive vibrations
• Backup system “recklessly disabled”
• Emergency generator failed to meet 45-second activation requirement
• Crew's “jury-rigging” compromised ship's safety

These alarming lapses in safety protocols and maintenance contributed to the tragic collapse of the Francis Scott Key Bridge.

“They retrofitted the transformer with anti-vibration braces, one of which had cracked over time, had been repaired with welds, and had cracked again. And they wedged a metal cargo hook between the transformer and a nearby steel beam, in a makeshift attempt to limit vibration.”

With catastrophe imminent, the Maryland pilot issued an emergency order to release the Dali's anchor, hoping to pull the vessel away from the bridge, authorities stated. However, the anchor was not ready for immediate release, violating legal requirements.

“By the time the ship finally dropped anchor, less than half a ship's length from the bridge, it was too late to have an effect,” the court filing noted.

Even after engineers restored power following the initial blackout, the Dali remained crippled. The main engine was still down, rendering the propeller inoperable.

As the court filing emphasized, restoring the main engine would have given the pilot crucial time to slow or steer the ship.

Instead, the Dali suffered a second power loss, again due to negligence.

 Findings:

• Emergency anchor release failed due to non-compliance with legal requirements
• Main engine failure left propeller inoperable
• Second power loss resulted from negligence
• Lack of operational anchor and propeller sealed the tragic outcome

These critical failures, stemming from reckless disregard for safety protocols, directly contributed to the devastating bridge collapse.

Sources:

Department of Justice court filing

Authorities' investigation reports