$43 Million Cap: Ship’s Owner Fights to Limit Costs in Baltimore Bridge Disaster
The company that owns and operates a cargo ship that crashed into Baltimore’s Francis Scott Key Bridge, leading to its collapse last week, has asked a court to limit how much money they might have to pay in response to the accident. This request was made through a legal document on Monday, following a procedure common in U.S. maritime law cases. A Maryland federal court will decide who is at fault and the amount of money they should pay for what might be one of the most expensive disasters of its kind.
The ship, named the Dali and owned by Singapore’s Grace Ocean Private Ltd., lost power and hit the Baltimore Bridge last Tuesday. Synergy Marine Pte Ltd., also from Singapore, manages the ship. They are trying to limit their financial responsibility to about $43.6 million, although the ship and its potential earnings from cargo were worth much more before the accident. This amount includes the value of the ship after the accident and subtracts the costs for repairs and salvaging the wreck.
This action is based on a law from 1851 that lets ship owners try to limit their liability to the value of the ship after an accident. This law has been used in many famous maritime disasters, according to James Mercanti, an experienced maritime lawyer. He explained that this is just the beginning of the legal process, and now people who want to claim damages must do so under this court procedure.
Read More: Total Solar Eclipse: April 8, 2024
Legal experts expect the case to take years to resolve. Despite the unusual circumstances, the legal principles are straightforward, according to Martin Davies, who leads the Maritime Law Center at Tulane University Law School. The challenging part will be uncovering the exact details of what went wrong and what could have been done to prevent it.
A report suggests that the bridge collapse could be the most expensive marine disaster ever for insurers, potentially costing between $2 billion and $4 billion. This would surpass the previous record of about $1.5 billion from the 2012 Costa Concordia cruise ship wreck. Eight workers were on the bridge when it collapsed; two were rescued, two were found deceased, and four are still missing and presumed dead.
The collapse has shut down the Port of Baltimore, which is crucial for shipping, leading to potentially huge economic losses. The cost of rebuilding the bridge could be $400 million or more, depending on the new design. The amount of compensation for the families of the victims in wrongful death cases will vary based on several factors, including the deceased’s potential financial support for their families and other losses like funeral expenses and the loss of guidance for their children.
