In the wake of March’s collapse of the Francis Scott Key Bridge, the owner of the shipping vessel at the center of the wreckage, the Dali, used a pre-Civil War law to try to max out its potential liability for the disaster to around $44 million. A California Democrat wants the owner to get with the times.
On Wednesday, Rep. John Garamendi introduced a bill in the House of Representatives that would increase the vessel’s obligation nearly tenfold. The proposed bill is a direct response to the 1851 law that Grace Ocean Private, the Singapore-based owners of the Dali, and Synergy Marine Group, the ship’s operator, used to file for a petition for exoneration from or limitation of liability in U.S. District Court in Baltimore, according to a spokesperson for Garamendi.
“If the foreign owners of the cargo vessel that took down the Francis Scott Key Bridge in Baltimore think they can leave American taxpayers holding the bag, I have a message for them: you broke it, you bought it,” Garamendi said in a press release.
The Dali struck and felled the Key Bridge in the wee hours of March 26 after losing propulsion, killing six construction workers who were repairing potholes on the bridge deck. Fast action by state and federal agencies cleared the wreckage and reopened the Port of Baltimore to ship traffic in a matter of two and a half months. The National Transportation Safety Board is continuing to investigate the exact cause of the disaster and could release a final report as soon as next year.
Rebuilding the bridge — and how to pay for it — is now the focus of Maryland’s years-long recovery process.
Almost immediately after the tragedy, President Joe Biden pledged that the federal government would front the entire cost to rebuild. The effort is now part of a Federal Highway Administration emergency program that typically pays 90% of such projects.
Officials estimate that the future replacement bridge will cost between $1.7 billion and $1.9 billion dollars and take until 2028 to finish. Maryland would be responsible for 10% — between $170 million and $190 million — under the current funding scheme. The state’s congressional delegation has introduced legislation to ensure that the federal government pays the entire cost; they also want taxpayers to get paid back down the road through the state’s insurance policy on the bridge and directly from any entity found liable for the disaster.
But getting paid back could be a long and arduous road if previous U.S. bridge disasters are any indicator.
The 1851 law allows for ship owners to ask to cap their liability at the dollar value of the vessel and the cargo it’s carrying. After the Dali’s owner and operator both filed for such a cap, attorneys for Baltimore City responded by alleging that the companies acted with gross and potentially criminal negligence.
Garamendi’s proposal, which was filed Wednesday and co-sponsored by Georgia Democrat Hank Johnson during a break in the legislative session in Washington, D.C., would increase that price to 10 times a ship’s value and its cargo, minus expenses. It wouldn’t apply to U.S.-flagged vessels and would be used retroactively to include the Dali.
That could mean a liability determination could go from tens of millions to hundreds of millions of dollars.
“This is a crucial step toward ensuring accountability in maritime liability,” said Johnson in the press release. “By enhancing the financial responsibilities of foreign vessel owners, this bill provides essential support to victims and their families in reinforcing our resolve to uphold justice following tragic maritime incidents.”
“I thank Representative Garamendi for his sincere interest in the bridge tragedy that occurred here in Baltimore – he and I have spoken about the matter on several occasions and his concern is genuine,” said Rep. Kweisi Mfume, whose district includes much of Baltimore and the area where the Key Bridge stood.
Mfume also pointed to the Baltimore BRIDGE Relief Act, which would relieve Maryland of its 10% cost share for rebuilding and includes language for recouping costs through insurance and liability determinations. A version of the bill exists in both the Senate and House of Representatives and was sponsored by the entire Maryland delegation in Washington.
“Both bills are still very much alive, and it is my hope that in September we might be able to attach it to what we assume will be a continuing resolution as one of many options to fund the bridge rebuild effort,” Mfume said.
“Those responsible for the damage and collapse of the Francis Scott Key Bridge will be held accountable and the federal government will be reimbursed. We are working hard to rebuild the bridge with full federal support as quickly as possible,” said Sen. Ben Cardin through an email from a spokesperson.
“Federal Team Maryland is united in our commitment to ensuring the state continues to receive the resources necessary to replace the Key Bridge as quickly and safely as possible,” said Sen. Chris Van Hollen through an email from a spokesperson. Van Hollen’s office said the senator is reviewing Garamendi’s proposal and is not opposed to modernizing the 1851 liability law, but remains focused on passing the Baltimore BRIDGE Relief Act.
A spokesperson for Garamendi said there’s interest from other members of the House to move his bill forward for a vote. But she anticipates that Republicans, who control the House, will need some convincing for that to happen.
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