Maryland strikes deal with owner and operator of Dali in Key Bridge collapse

The State of Maryland has reached a settlement in principle with the Singaporean companies that own and operate the cargo ship at the center of the disaster that destroyed the Francis Scott Key Bridge in Baltimore and killed six construction workers.

Maryland Attorney General Anthony Brown on Thursday announced the agreement with Grace Ocean Private Ltd. and Synergy Marine Group, which own and operate the Dali, respectively. The settlement would resolve the state’s claims against the companies for the destruction of the bridge, harm to the Patapsco River and the sweeping economic losses suffered by Maryland and its residents.

The Dali hit the bridge in the early morning of March 24, 2024, killing six workers who were filling potholes and sending the span into the river.

Brown’s office did not disclose the amount of the settlement and declined to answer questions about the terms, noting that the deal was being finalized. The announcement comes less than two months before a civil trial in U.S. District Court in Baltimore during which the companies are seeking to limit their liability in the disaster.

The settlement does not resolve any of the state’s claims against the shipbuilder, Hyundai.

“For two years, Maryland workers, families, and communities have carried the weight of a disaster that should never have happened,” Brown said in a statement. “Our work is not finished, but this settlement is an important step toward making Maryland whole.”

In a joint statement, Grace Ocean Private and Synergy Marine Group wrote that “significant progress has been made in the resolution of claims.”

The companies noted that settlements with Maryland and ACE American Insurance Company — an insurance carrier that paid out $350 million to the state — “underscore their commitment to a reasonable and structured outcome to this unfortunate incident.”

“These agreements represent a significant step towards resolving the complex litigation surrounding this event and Owners and Managers remain open to negotiating in good faith to reach equitable settlements with other involved parties holding meritorious claims,” the statement continued.

U.S. Senior District Judge James K. Bredar is set on June 1 to preside over a trial to determine whether Grace Ocean Private and Synergy Marine Group can cap their liability in the bridge collapse to about $44 million. The amount represents the estimated value of the ship and its cargo.

Maryland sued the owner and operator of the Dali in 2024, alleging the government and the people of Maryland have suffered massive losses from the bridge collapse and that negligence and shortcuts from the ship’s crew, owner and manager caused the catastrophe.

The state was among a number of parties to make claims in the case. Those remaining include family members of the workers, local governments and businesses.

“We will be ready for trial,” said Todd Lochner, lead counsel for the Private Economic Loss Group, which includes ships that were stuck behind the wreckage of the bridge and in the harbor after the collapse.

Grace Ocean Private and Synergy Marine Group previously agreed to pay more than $100 million to settle a lawsuit from the U.S. Department of Justice that accused the companies of negligence and mismanagement.

If the state had gone to trial, it seemed unlikely that the owner and operator of the Dali would have been able to successfully limit their liability, said Martin Davies, director of the Tulane Maritime Law Center.

Davies said there were strong indications that structural issues, not sailing mistakes, caused the disaster.

The National Transportation Safety Board found that a series of errors led to the catastrophe, including a single loose wire on the Dali that caused electrical failures.

“It’s not particularly surprising that the case settled,” Davies said. “The question will be the number.”

But Davies said he expect that those who have purely economic claims will not prevail. That’s because U.S. Supreme Court decision from 1927.

Rebuilding the bridge is expected to take until 2030 and cost between $4.3 billion and $5.2 billion.