Dali Owners Sue Manufacturer After Baltimore Bridge Collapse

The Dali Cargo Vessel Crash and the Legal Fallout

The tragic crash of the Dali cargo vessel into Baltimore's Francis Scott Key Bridge in March 2024 has sparked a series of legal actions, with the ship's owner and operator now taking legal action against the ship’s builder. The incident led to significant damage, loss of life, and long-term disruptions to maritime traffic in the region.

Grace Ocean Private Limited, the owner of the Dali, and Synergy Marine Private Limited, its operator, have filed a lawsuit against Hyundai Heavy Industries (HHI), the company responsible for building the vessel. The lawsuit was submitted on June 31 in the U.S. District Court for the Eastern District of Pennsylvania. The plaintiffs claim that HHI was negligent in the design and manufacturing of a critical switchboard on the ship, which ultimately contributed to the power outages that led to the collision.

During the Dali's voyage out of the Port of Baltimore, the switchboard lost power at 1:25 a.m., followed by a second outage just two minutes later. These outages caused the ship's engine service to shut down, leaving the crew unable to adjust the vessel's course or speed in time to avoid the bridge. As a result, the Maersk-chartered Dali struck one of the bridge's support pillars, causing it to collapse into the Patapsco River. Six construction workers were killed in the accident.

The incident had a major impact on the Port of Baltimore, effectively closing off traffic for over two months. Vessels were forced to reroute to other East Coast ports, including the Ports of New York & New Jersey, the Port of Virginia, and the Port of Philadelphia. This disruption significantly affected the region’s trade and logistics operations.

In their lawsuit, the plaintiffs argue that HHI designed and manufactured the switchboard in a way that left wiring connections insecure and vulnerable to disconnection during normal operation. They also claim that the signal wire was not properly secured to the terminal block, making the switchboard and the vessel "unreasonably dangerous and in a defective condition."

Additionally, the plaintiffs accuse HHI of breaching implied warranties by selling the vessel under the assumption that it would be fit for its intended purpose, safe, seaworthy, and otherwise merchantable. They further allege that HHI was aware of the risks associated with loose wires in the switchboard but failed to disclose this information.

The incident resulted in "significant" damages for both Grace Ocean and Synergy Marine, including physical damage to the Dali and reputational harm. Both companies have been involved in multiple lawsuits following the crash, including a $102 million civil penalty settlement with the Department of Justice last October. This payment covered federal costs related to clearing the wreckage from the channel but did not include the cost of rebuilding the bridge, which is expected to be completed by fall 2028.

The State of Maryland, which owned and operated the bridge, has also filed a lawsuit against the Singaporean shipping companies, seeking compensation for the bridge's collapse, lost toll revenues, emergency response costs, and infrastructure wear and tear. In addition, the city of Baltimore and local businesses have joined legal actions against the companies, with the families of victims and insurance providers also filing claims.

Dockworkers at the Port of Baltimore have also taken legal action, with three branches of the International Longshoremen's Association (ILA) filing a class-action lawsuit. They are seeking compensation for wages lost due to the port's closure after the disaster.

According to a preliminary report from the National Transportation Safety Board, the Dali experienced electrical blackouts approximately 10 hours before leaving the Port of Baltimore and during the period leading up to the collision. The findings highlight the ongoing investigation into the causes of the crash and the potential systemic issues that may have contributed to the tragedy.

As the legal battles continue, the case underscores the complex web of responsibilities and liabilities in maritime operations and the far-reaching consequences of such incidents.