Baltimore Hires Law Firms to Pursue Claims Against ‘All Entities’ in Key Bridge Tragedy

Baltimore Mayor Brandon M. Scott announced that the city is taking legal steps to address the impact the Key Bridge collapse has had on the city of Baltimore and its residents, including the families of the victims, business owners, and longshoremen and other Port workers.

Baltimore has engaged the law firm DiCello Levitt and the law firm Saltz Mongeluzzi Bendesky to “hold responsible all entities accountable for the Key Bridge tragedy,” Scott said.

DiCello Levitt attorney Adam Levitt said the city will bring “significant economic and environmental loss claims” on behalf of Baltimore and its residents against the cargo Dali’s owner, charterer, manager/operator, manufacturer and others to “hold them accountable for causing one of the largest inner-city maritime disasters in U.S. history” and to hold them accountable for the “emotional toll and the substantial financial losses” that Baltimore and its residents are facing.

The mayor said the tragedy has resulted in not only loss of life, but also economic hardship to businesses and employees who rely upon the Port of Baltimore for revenue and wages, and to the city itself.

The owner of the ship Dali that caused the collapse of the Francis Scott Key Bridge that killed six workers is Grace Ocean Pte Ltd. The owner and the vessel’s operator, Synergy Marine Group, and the firm that chartered the ship, Maersk, are expected to face lawsuits seeking millions of dollars.

Scott said it is necessary for the city to act quickly in light of the Dali ship owner’s move to limit its liability.

“We are continuing to do everything in our power to support everyone impacted here and will continue to recognize the human impact this event has had. Part of that work needs to be seeking recourse from those who may potentially be responsible, and with the ship’s owner filing a petition to limit its liability mere days after the incident, we need to act equally as quickly to protect the City’s interests,” Scott said.

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However, legal experts contend that U.S. maritime law could limit companies’ liability and damages.

In fact, the owner of the ship, along with Synergy Marine, last Monday filed a court petition claiming the collapse of the bridge was “not due to any fault, neglect, or want of care” of the companies and thus they should not be held liable. But they told the federal court in Maryland that if they should be held liable, their damages should be limited to no more than the current value of the ship and its cargo, estimated at $43.7 million.

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Also, due to a 1927 Supreme Court ruling, economic damage claims suffered by the city are likely not recoverable through lawsuits, Martin Davies, director of the Maritime Law Center at Tulane University School of Law, told Reuters. Lawsuits will likely be limited mostly to injuries, death and property damage or losses lin suits brought by government entities.

However, economic damages might be paid under insurance policies. Insurance payouts for the bridge tragedy could be as high as $4 billion, according to one estimate. Lloyd’s of London said this tragedy could be among the largest ever in marine insurance.

The ship’s own hull and machinery (H&M) insurance policy would possibly cover any damage the ship itself as well as salvage operations for the ship, while protection and indemnity (P&I) policies respond to third party liabilities such as rebuilding the bridge, loss of income/revenue for the port and bridge authority, loss of life, injuries, salvage, removal of the bridge debris and more, according to John A. Miklus, president, American Institute of Marine Underwriters (AIMU),

The P&I losses will be handled by a liability pooling arrangement with 12 insurers that serves the global shipping industry. The International Group of Protection and Indemnity (P&I) Clubs collectively insure about 90% of the world’s ocean vessels. One of the group’s members, the Britannia P&I Club, is the indemnity insurer for the Dali and responsible for up to $10 million in claims. Thereafter, the other 11 members of the P&I group will share most claims up to a total of $100 million. After that, up to $3.1 billion in general excess of loss (GXL) reinsurance is available.

While its claims will most likely be subrogated to other insurance, the state of Maryland does have $350 million per occurrence property and business interruption coverage for its bridges and tunnels.