Major Settlement Reached Over Baltimore Port Case Involving Singapore Firms

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Singapore-based companies Grace Ocean and Synergy Marine agree to pay $101.9 million to settle with the U.S. Department of Justice over the Baltimore port disaster.

At a Glance

  • Two Singaporean firms fined $101.9 million for Baltimore bridge collapse incident
  • Settlement covers federal cleanup costs, not bridge reconstruction
  • Incident killed six workers and caused major shipping disruptions
  • Nearly 50,000 tons of debris removed from the channel
  • Maryland pursuing separate claim for bridge rebuilding costs

DOJ Secures Swift Settlement for Baltimore Disaster

In a swift resolution to the March 2024 Baltimore port catastrophe, the U.S. Department of Justice has secured a $101.9 million settlement from two Singapore-based companies. Grace Ocean Private Limited and Synergy Marine Private Limited, owners of the ill-fated cargo ship Motor Vessel Dali, agreed to the substantial payout to cover federal cleanup costs following the collapse of the Francis Scott Key Bridge.

The settlement, announced just over a month into litigation, marks a significant victory for the DOJ in holding the responsible parties accountable. Principal Deputy Associate Attorney General Benjamin C. Mizer emphasized the importance of this resolution, stating, “Nearly seven months after one of the worst transportation disasters in recent memory, which claimed six lives and caused untold damage, we have reached an important milestone with today’s settlement.”

Tragic Incident and Its Aftermath

The disaster unfolded on March 26 when the Motor Vessel Dali lost power and collided with the Francis Scott Key Bridge, causing its catastrophic collapse. The incident resulted in six fatalities and led to significant disruptions in shipping activities across the region. The collision blocked the Fort McHenry Channel, effectively shutting down Baltimore’s crucial port and severing a vital highway connection.

“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,” Mizer added, underscoring the DOJ’s commitment to protecting public interests.

In the wake of the disaster, federal, state, and local agencies collaborated in an extensive cleanup operation, removing over 50,000 tons of debris from the channel. Their efforts allowed for the resumption of shipping activities by June, following the establishment of temporary channels.

Legal Maneuvers and Swift Justice

Initially, Grace Ocean and Synergy attempted to limit their liability to $43.7 million by invoking the Limitation of Liability Act of 1851. However, the DOJ countered this move, arguing that the crash was “entirely avoidable” due to improper maintenance and configuration of the ship’s systems. The department’s swift action and compelling case led to the significantly higher settlement amount.

“This is a tremendous outcome that fully compensates the United States for the costs it incurred in responding to this disaster and holds the owner and operator of the DALI accountable,” stated Principal Deputy Assistant Attorney General Brian M. Boynton, highlighting the effectiveness of the DOJ’s litigation strategy.

While this settlement addresses federal cleanup costs, it does not cover the reconstruction of the Francis Scott Key Bridge. Maryland state attorneys have filed a separate claim for damages related to rebuilding the bridge, a process that will likely require additional funding and negotiations.

As the Port of Baltimore works to recover from this catastrophic event, the swift resolution of this case demonstrates the U.S. government’s commitment to holding responsible parties accountable and ensuring that taxpayers are not burdened with the costs of such disasters.

Sources:

  1. Singaporean firms whose ship ignited the Baltimore Bridge catastrophe fined $100 million
  2. DOJ settles Baltimore bridge lawsuit with ship interests for over $100 million
  3. Owners of Ship Involved in Baltimore Bridge Collapse Settle DOJ Lawsuit for $100 Million

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