Friday, November 01, 2024

 

Civil Liability Case Over Dali Begins to Take Shape Targeting 2026 Trial

Dali Baltimore wreckage
Lawyers and the judge in the civil liability case met to begin to shape the case (USCG)

Published Oct 30, 2024 2:11 PM by The Maritime Executive

 


The lengthy and complex legal civil liability case surrounding the containership Dali and the destruction of Baltimore’s Francis Scott Key Bridge is beginning to take shape as lawyers for the owner and operators and the 46 claims currently filed met in a U.S. District Court on Tuesday, October 29. Judge James K. Bredar is working to shape the case while also being conscious of the potential it has to reshape maritime law.

During the scheduling conference with three dozen lawyers, the judge reportedly asked, “The Dali is going to be the vessel with which we rewrite maritime law. Is that the hope?” reports the Baltimore Sun. The judge said he would be issuing key rulings to “bring structure to this sprawling and unusual matter.” 

The sides are arguing over everything at this point with the claimants asking for the trial to begin in December 2025 while owners Grace Ocean and operators Synergy Marine proposed January 2027 for the start of the trial. Judge Bredar anticipates a lengthy discovery process and stacks of motions as they proceed toward his target of a trial in early 2026 which he anticipates will take 15 days. However, he also noted that often these cases settle saying his goal was to deliver the case “to the launching pad for settlement.”

Grace Ocean and Synergy Marine reached a settlement agreement with the U.S. Justice Department for the costs of the cleanup and that $102 million settlement was accepted by the court. The Singapore companies however highlighted the “agreement pertains solely to costs related to clearing the channel in Baltimore Harbor, and no punitive damages have been imposed.” They also emphasized they “expressly reject” liability for the event.

During the court hearings, lawyers for the Singapore companies raised what could be a key element of their case to limit liability to $43 million. They cited the responsibilities of Maryland to have installed protections around the bridge as well as shipbuilder Hyundai which they proposed built a faulty electric system that contributed to the failure and the vessel hitting the bridge. 

Maryland claims the ship was not in good repair, used inadequate measures to make repairs, and hid details of its power problems from the authorities and pilots during the fateful trip. Lawyers for the state told the court they had international exports aboard the ship for 10 days and in the filing have documented what they believe was a disregard for safety. 

The Baltimore Sun reports Judge Bredar plans to split the case with the first phase addressing the claims of limited liability and the second phase if the companies are not exonerated to determine the amount of damages. The judge also moved to group the claims into categories including death and injury, property damage, economic loss, and government claims.

Maryland has the largest claim seeking the replacement cost of the bridge as well as the costs it incurred in the clean-up and the environmental damage. Others have direct property claims including the operator of the gas pipeline that was damaged when the bridge collapsed. Legal experts said cases for lost business and more indirect impacts for the loss of the bridge and harbor closure will be more difficult cases. Families of the six victims have also filed claims.

Everyone agrees that it will be one of the most complex cases and has the potential to have lasting impacts on the shipping industry and others. 

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