In The Matter Of The Petition Of Grace Ocean Private Limited et al
Case Background
On April 1, 2024, Plaintiff Grace Ocean Private Limited brought an Exoneration and Limitation of Liability claim against the USA in the District Court of Maryland (Case number: 1:24cv941). Judge James K. Bredar presided over the case.
Cause
A catastrophic collision occurred on March 26, 2024, when the containership M/V DALI crashed into the Francis Scott Key Bridge in Baltimore. Before departure, the vessel suffered serious maintenance and safety issues. Its electrical and mechanical systems showed signs of improper maintenance and configuration that violated international shipping safety regulations. The vessel experienced severe vibration problems, affecting its transformer and electrical systems. Previous crew members had reported constant vibrations that loosened cargo lashings and cracked equipment in the engine room.
The disaster unfolded when the DALI lost electrical power approximately four minutes before impact. Circuit breakers for the number 1 step-down transformer tripped, causing a complete blackout in the bridge and engine room. The backup power system, designed to transfer automatically to the number 2 transformer, failed to activate because the crew had disabled this critical safety feature. In darkness, the crew struggled to manually reset the circuit breakers, wasting precious minutes.
A second power failure occurred when the improperly installed “flushing” pump, used to fuel the diesel generators, failed to restart after the initial blackout. This pump, intended only for temporary use when switching fuel types, lacked the automatic restart capability required for emergency situations. The emergency generator also failed to activate within the mandated 45-second window, further compromising the vessel’s control systems.
On September 18, the Justice Department filed a civil lawsuit in the U.S. District Court for the District of Maryland, seeking over $100 million in damages from Grace Ocean and Synergy for Baltimore bridge collapse. This claim was part of a legal action that the vessel companies filed shortly after the tragedy, seeking exoneration or limitation of their liability to approximately $43.7 million.
Injuries
The Baltimore bridge collapse claimed the lives of six construction workers who were performing maintenance on the bridge, while two additional workers sustained injuries. The impact destroyed vital sections of the Francis Scott Key Bridge, sending massive structural components plunging into the Patapsco River.
Damages
The United States government incurred damages exceeding $100 million in response costs and losses for the Baltimore bridge collapse. The wreck blocked the Fort McHenry Channel, severing access to the Port of Baltimore and disrupting critical transportation infrastructure. The government deployed extensive resources for wreck removal, including workforce, vessels, equipment, and technical expertise. The salvage operation required establishing temporary navigation channels to maintain limited port access during the recovery period. Complete restoration of the Fort McHenry Channel took several months, while bridge reconstruction will require years to complete.
Key Arguments and Proceedings
Legal representation
- Plaintiff(s):Grace Ocean Private Limited, as Owner of the M/V DALI | Synergy Marine Pte, Ltd, as Manager of the M/V DALI
- Counsel for Plaintiff: Laurie Goon Furshman| Robert Brooke Hopkins | Alan Weigel | Emma C. Jones | Kierstan Lee Carlson | Neil P. McMillan | Noe S. Hamra | Thomas H. Belknap, Jr. | Tristan Alexander Dietrick | William R. Bennett, III
- Defendant(s):USA | Miguel Leonardo Luna Lemus | Bertalia Verenice Martinez Funez, Individually and as Next Friend of Alexa Michelle Suazo Posadas | Jeffrey D Katz | Bertalia Verenice Martinez Funez, Individually and as Next Friend of Alexa Michelle Suazo Martinez | State of Maryland | Maryland Transportation Authority | Maryland Port Administration
- Counsel for Defendants: Brian M. Boynton| Rodney Patton | Michael A. DiLauro | Michelle T. Delemarre | Thomas M. Brown | Jessica G. Sullivan | Jeanne L. Amy | Guyer S. Bogen | Laine M. Goodhue | Erek L. Barron | Kelly M. Marzullo | Justin D. Miller | L. Chris Stewart | Bruce M. Plaxen | Cesar Ornelas | Matthew H. Simmons | Jeffrey D. Katz | Craig M. Sico | JonCarlo Serna | Margaret Fonshell Ward | Robert A. Scott | Howard Ross Feldman | Alex Brown | Andrew W. Homer | David L. Reisman | Elizabeth B. McIntosh | Elizabeth A. Strunk | Ivan F. Morales | Jessie E. Shifalo | Julia Schuurman | Maria Fernanda Pimienta | Philip D. Robben | R. Keith Jarrett | Raymond Timothy Waid | W. Mark Lanier | William J. Jackson | Priscilla Alden Donovan | Daniel J. Donovan | Michael P. Naughton | Edward P. Flood | Shanshan Liang | Aaron J. Turner
Key Arguments or Remarks by Counsel
“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,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “Thanks to the hard work of the Justice Department attorneys since day one of this disaster, we were able to secure this early settlement of our claim, just over one month into litigation. 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 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,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The prompt resolution of this matter also avoids the expense associated with litigating this complex case for potentially years.”
Claims
Maritime Law Claims:
The vessel owners and operators demonstrated gross negligence through their failure to maintain proper electrical systems and safety equipment. They knowingly operated an unseaworthy vessel in U.S. waterways, violating multiple safety regulations. The emergency systems’ failures directly resulted from improper maintenance and unauthorized modifications.
Rivers and Harbors Act Violations:
The accident created unauthorized obstructions in navigable waters. The DALI’s presence, combined with bridge debris, containers, and other wreckage, blocked essential shipping channels. The vessel’s owners failed to fulfill their legal obligation to immediately remove these obstructions.
Oil Pollution Act Claims:
The Coast Guard monitored and responded to oil pollution threats throughout the salvage operation. The law mandated recovery of all costs associated with oil spill prevention, containment, and cleanup efforts.
Public Nuisance Claims:
The wreck created a significant navigation hazard that impeded public waterway access. The obstruction disrupted commercial shipping operations and posed ongoing safety risks to maritime traffic.
Punitive Damages:
The vessel’s operators demonstrated willful and reckless conduct by knowingly operating an unseaworthy vessel in confined waters. Their decision to disable safety systems and use improper equipment justified punitive measures to deter similar future conduct.
The United States government pursued full cost recovery and damages, rejecting the vessel owners’ attempt to limit their liability to $44 million. The government maintained that the owners’ prior knowledge of the vessel’s deficiencies and their reckless operating decisions voided any right to liability limitation under maritime law.
Defense
The United States filed a defense against Grace Ocean Private Limited and Synergy Marine Pte Ltd regarding the Francis Scott Key Baltimore Bridge collapse incident. The US admitted that on March 26, 2024, the vessel DALI left Baltimore harbor bound for Colombo, Sri Lanka. During its journey, the DALI lost electrical power and propulsion in the Fort McHenry Channel, briefly regained power, lost it again, and veered to the right, resulting in an allision with the bridge. The incident killed six construction workers and injured two others.
Additionally, the US government denied several key claims made by the petitioners and argued that the petitioners were not entitled to limitation of liability under various acts, including the Rivers and Harbors Act and the Oil Pollution Act. Further, the US maintained that the accident and resulting damages were caused solely by the fault, recklessness, negligence, and lack of due care of those responsible for the DALI, including the petitioners and their officers, agents, and employees, as well as the unseaworthiness of the vessel.
Moreover, the US specifically challenged Synergy’s right to liability limitation since it was only the ship’s “technical manager” rather than its owner. The government also contested the proposed limitation fund amount, arguing it was insufficient and less than the post-allision value of the DALI and its pending freight. The US sought full damages, including punitive damages, prejudgment interest, costs, and attorneys’ fees under various legal frameworks, including maritime law, the Rivers and Harbors Act, and the Oil Pollution Act.
Settlement
On October 24, 2024, the Singaporean corporations Grace Ocean Private Limited and Synergy Marine Private Limited reached a settlement with the United States government, agreeing to pay $101,980,000 to resolve civil claims related to the Francis Scott Key Baltimore Bridge collapse. The companies, which owned and operated the Motor Vessel DALI, agreed to this settlement to cover the costs incurred by the U.S. government in its response to the catastrophic Baltimore bridge collapse.
Court Documents:
Available Upon Request
Press Release:
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