Baltimore Bridge Collapse Sets Stage for Multi-Billion Dollar Liability Claims

The aftermath of the devastating cargo ship collision with Baltimore’s Francis Scott Key Bridge has set in motion a complex legal battle likely to involve billions of dollars in liability claims, raising questions about the parties responsible and the extensive damages incurred.

With numerous stakeholders involved and intricate maritime laws dating back centuries, the process of determining liability, assessing damages, and addressing the aftermath of the tragedy is expected to be protracted and convoluted.

According to John Miklus, president of the American Institute of Marine Underwriters, the potential liability claims stemming from the incident could exceed a billion dollars, with litigation anticipated to stretch over several years. Analysts at Barclays project that insurance claims related to the disaster could reach as high as $3 billion.

The cargo ship, named Dali and owned by Singapore-based Grace Ocean Private, is insured by the Britannia Protection and Indemnity Club, which is part of the International Group of P&I Clubs. These insurers, along with approximately 80 reinsurers, are poised to bear a significant portion of the financial burden arising from the collision.

While the exact cost of damages and reconstruction efforts remains uncertain, initial estimates suggest that the bridge alone could be valued at over $1.2 billion. Additionally, liabilities for wrongful death and business interruption claims are expected to further compound the financial fallout.

Complicating matters further, the ship’s owner may seek to limit its liability under a century-old maritime law, potentially capping the damages it is required to pay.

In response to the catastrophe, President Joe Biden has pledged federal support for the reconstruction of the Francis Scott Key Bridge. However, the logistics and funding for this endeavor remain unclear, raising questions about the allocation of resources and the timeline for recovery efforts.

While businesses in the area are likely to suffer significant economic losses, maritime law expert Martin Davies notes that recovering purely economic damages from the ship’s owner may prove challenging. Nevertheless, efforts are underway to provide assistance to affected workers and mitigate the broader societal impact of the tragedy.

As Maryland lawmakers draft emergency measures to address the fallout from the bridge collapse, the road to recovery promises to be arduous, with both legal and logistical hurdles to overcome in the quest for justice and restitution.