Judge Approves Dali Manager’s Request to Reduce Liability in Baltimore Bridge Collapse Case

A federal judge has allowed the manager of the cargo ship Dali, involved in the tragic collapse of Baltimore’s Francis Scott Key Bridge in March 2024, to proceed with its claims under an 1851 maritime law that limits liability for shipowners.

The state of Maryland and wrongful death claimants sought to prevent Synergy Marine from invoking the Shipowners’ Limitation of Liability Act, arguing that Synergy does not meet the requirements as an owner of the ship and is therefore not entitled to the limited liability protection granted by the law.

Under this maritime law, a shipowner’s liability for a maritime loss or mishap is limited to the value of the ship and her pending freight, provided the mishap occurred without the owner’s privity or knowledge. The stipulated value of the Dali is $43.7 million.

The state and attorneys for wrongful death claimants contended that the law applies only to actual owners of vessels, asserting that Grace Ocean Private Limited is the owner of the cargo ship Dali, while Synergy is merely the manager and thus ineligible under the law.

The filing sought to dismiss Synergy’s petition only; it did not address Grace Ocean’s petition for protection under the act to limit its liability.

U.S. District Court Judge James K. Bredar rejected the state’s bid to dismiss Synergy’s claim at this stage, allowing proceedings to continue. He noted that while there are facts suggesting Synergy is not an owner, there are also facts indicating it could be considered one, making dismissal inappropriate at this time.

Maryland Moves to Deny Liability Limit Sought by Ship Manager in Key Bridge Collapse

According to the state’s filing, Synergy was not an owner because there was never a “complete transfer of possession, command, and navigation of the vessel” from owner Grace Ocean to Synergy.

The state argues that Synergy was not responsible for the vessel’s navigation, did not employ the crew, was subject to daily oversight by the owner, had no financial responsibility for the vessel’s operation, and does not provide insurance for the vessel.

In contrast, Synergy maintains that its documents demonstrate it assumed all responsibility for the ship from Grace Ocean, which relied solely on Synergy for daily oversight and control. The fact that it is an additional insured on Grace Ocean’s insurance policies supports its claim that its control over the ship was substantial enough to expose it to shipowner liability.

The court found competing and undisputed facts regarding Synergy’s financial responsibility, its relationship with the crew, and the extent of its operational control over the ship. These factual disputes are material, leading the court to refuse to rule against Synergy at this time.

Both Grace Ocean and Synergy have claimed that the bridge collapse was “not due to any fault, neglect, or want of care” on their part or that of the vessel or any parties for whom they may be responsible.

Owners of Ship That Crashed Into Baltimore Bridge Sue Vessel’s Builder Hyundai

Grace Ocean and Synergy argue they should not be held liable for any loss or damage from the disaster. However, if they are found liable, they seek to limit their liability under maritime law to no more than the value of the ship and its cargo after the crash, which is $43.7 million. Before the crash, the ship’s value was around $90 million.

The state and wrongful death claimants aim to hold both Grace Ocean and Synergy fully accountable for alleged negligence, mismanagement, and incompetence.

Grace Ocean Private and Synergy Marine have also sued Hyundai Heavy Industries, the builder of their vessel, alleging negligence in the design of a critical switchboard on the ship.

In the early morning hours of March 26, the 984-foot-long containership Dali crashed into the Francis Scott Key Bridge, resulting in its catastrophic collapse, the death of six men, and injuries to others. The wreckage fell into the Patapsco River, blocking access to most of the Port of Baltimore and causing significant disruptions and harm to the state and its residents that will be felt for decades.

Single Loose Wire Led to Blackout That Caused Dali Crash Into Baltimore Bridge

In November, the National Transportation Safety Board (NTSB) released a report indicating that a loose wire in the ship’s electrical system caused a breaker to unexpectedly open, leading to two vessel blackouts and a loss of both propulsion and steering near the 2.37-mile-long Key Bridge.

Photo: Collapsed Francis Scott Key Bridge in Maryland with Cargo Ship Dali. NTSB photo.

Topics
Legislation
Liability

A federal judge has allowed the manager of the cargo ship Dali, involved in the tragic collapse of Baltimore’s Francis Scott Key Bridge in March 2024, to proceed with its claims under an 1851 maritime law that limits liability for shipowners.

The state of Maryland and wrongful death claimants sought to prevent Synergy Marine from invoking the Shipowners’ Limitation of Liability Act, arguing that Synergy does not meet the requirements as an owner of the ship and is therefore not entitled to the limited liability protection granted by the law.

Under this maritime law, a shipowner’s liability for a maritime loss or mishap is limited to the value of the ship and her pending freight, provided the mishap occurred without the owner’s privity or knowledge. The stipulated value of the Dali is $43.7 million.

The state and attorneys for wrongful death claimants contended that the law applies only to actual owners of vessels, asserting that Grace Ocean Private Limited is the owner of the cargo ship Dali, while Synergy is merely the manager and thus ineligible under the law.

The filing sought to dismiss Synergy’s petition only; it did not address Grace Ocean’s petition for protection under the act to limit its liability.

U.S. District Court Judge James K. Bredar rejected the state’s bid to dismiss Synergy’s claim at this stage, allowing proceedings to continue. He noted that while there are facts suggesting Synergy is not an owner, there are also facts indicating it could be considered one, making dismissal inappropriate at this time.

Maryland Moves to Deny Liability Limit Sought by Ship Manager in Key Bridge Collapse

According to the state’s filing, Synergy was not an owner because there was never a “complete transfer of possession, command, and navigation of the vessel” from owner Grace Ocean to Synergy.

The state argues that Synergy was not responsible for the vessel’s navigation, did not employ the crew, was subject to daily oversight by the owner, had no financial responsibility for the vessel’s operation, and does not provide insurance for the vessel.

In contrast, Synergy maintains that its documents demonstrate it assumed all responsibility for the ship from Grace Ocean, which relied solely on Synergy for daily oversight and control. The fact that it is an additional insured on Grace Ocean’s insurance policies supports its claim that its control over the ship was substantial enough to expose it to shipowner liability.

The court found competing and undisputed facts regarding Synergy’s financial responsibility, its relationship with the crew, and the extent of its operational control over the ship. These factual disputes are material, leading the court to refuse to rule against Synergy at this time.

Both Grace Ocean and Synergy have claimed that the bridge collapse was “not due to any fault, neglect, or want of care” on their part or that of the vessel or any parties for whom they may be responsible.

Owners of Ship That Crashed Into Baltimore Bridge Sue Vessel’s Builder Hyundai

Grace Ocean and Synergy argue they should not be held liable for any loss or damage from the disaster. However, if they are found liable, they seek to limit their liability under maritime law to no more than the value of the ship and its cargo after the crash, which is $43.7 million. Before the crash, the ship’s value was around $90 million.

The state and wrongful death claimants aim to hold both Grace Ocean and Synergy fully accountable for alleged negligence, mismanagement, and incompetence.

Grace Ocean Private and Synergy Marine have also sued Hyundai Heavy Industries, the builder of their vessel, alleging negligence in the design of a critical switchboard on the ship.

In the early morning hours of March 26, the 984-foot-long containership Dali crashed into the Francis Scott Key Bridge, resulting in its catastrophic collapse, the death of six men, and injuries to others. The wreckage fell into the Patapsco River, blocking access to most of the Port of Baltimore and causing significant disruptions and harm to the state and its residents that will be felt for decades.

Single Loose Wire Led to Blackout That Caused Dali Crash Into Baltimore Bridge

In November, the National Transportation Safety Board (NTSB) released a report indicating that a loose wire in the ship’s electrical system caused a breaker to unexpectedly open, leading to two vessel blackouts and a loss of both propulsion and steering near the 2.37-mile-long Key Bridge.

Photo: Collapsed Francis Scott Key Bridge in Maryland with Cargo Ship Dali. NTSB photo.

Topics
Legislation
Liability