Maryland Files Claim to Dismiss Dali’s Owner/Manager Liability Limits

The State of Maryland followed the U.S. Federal Government also filling a massive claim against the owners and operators of the containership Dali and seeking to set aside the attempt to limit liability for the destruction of the Francis Scott Key Bridge in Baltimore. The filing came ahead of a court deadline which also prompted claims from businesses impacted by the loss of the bridge and disruption to the Port of Baltimore.

“The owners and managers of the Dali are also asking the court to limit its liability for this disaster to the value of the ship, an amount that would not come close to covering the state's damages. In today's filing, Maryland is asking the court to deny this request and hold Grace Ocean Private Limited and Synergy Marine fully accountable for their negligence, mismanagement, and incompetence,” the state said in announcing its filing.

Maryland contends in a 56-page filing that the state has experienced “immediate and long-lasting harm,” while alleging misconduct by Grace Ocean and Synergy. They cite many of the same issues included in last week’s filing by the U.S. Department of Justice while saying the catastrophe caused “wide-ranging, multifaceted, and significant harm” to the state and its residents.

“The state's investigation has revealed that this massive disaster was entirely preventable. The Dali had experienced two power failures the day before the allision. The ship's owner and operator failed to diagnose or correct these failures prior to leaving its berth and neglected to report them to the two pilots who boarded the ship to guide its departure from the Port. The power failure was caused by a longstanding vibration problem, which caused damage to the transformers and switchboards, including nuts and bolts coming loose and falling out. This damage resulted in a loose connection that caused the first power failure on March 26,” they write in detailing their allegations.

Maryland also cites the “recklessly reconfigured” fuel supply system saying it was “running on the wrong fuel pump,” an allegation also made by DOJ which said the fuel pump was unable to recover from a power failure causing low pressure and the final blackout. Maryland also cites the “ship’s management and crew intentionally circumvented critical safety features,” relating to the automatic system designed to switch over and recover during a power failure while saying the companies also “failed to properly train the ship’s crew to handle this type of emergency.”

The claim cites severe and far-reaching economic disruptions, the discharge of various pollutants and hazardous materials into the Patapsco River, and increased vehicle traffic which contributes to declines in air quality and road wear and tear. Maryland seeks the replacement cost of the bridge (previously estimated at approximately $2 billion), costs associated with the emergency response, salvage, and demolition, as well as lost revenue and benefits paid to affected workers and businesses. 

“There is no question that the state has incurred a massive amount in damages as a result of the Dali's negligence, nor is there any doubt that those damages are continuing to accrue. The full scope of damages will be the subject of expert testimony in the litigation, and the state's investigation is ongoing,” they said in announcing the filing.

In addition to Maryland, the families of the six individuals killed and the two injured have failed claims. The company that was contracted to make the road repairs has also filed a claim. An Australian yacht broker, Marine Motor Yacht Sales, is among the companies impacted that have failed claims. They said the delivery of a $1 million yacht was delayed because it was stuck in Baltimore and could not be shipped to Australia as planned on April 7. The company says it has incurred costs as the boat did not leave Maryland until June. A publishing company, American Publishing, also previously filed a claim for lost revenues from ad sales. In total, 29 separate claimants have filed with the court.

Grace Ocean and Synergy Marine in April invoked an old U.S. maritime law under which they claimed the right to restrict their liability to approximately $44 million, the value of the ship and its cargo. Maryland and the DOJ are leading the arguments to reject the limited liability while also seeking punitive damages.