Shipping Disruption Sparks Legal Battle in Yacht Sales Industry

Container ship docked at a busy industrial port.

A yacht brokerage in Baltimore sues shipping companies over losses caused by the Francis Scott Key Bridge collapse, joining a wave of legal actions against the vessel’s owners.

At a Glance

Marine Motor Yacht Sales sues Grace Ocean Private Ltd and Synergy Marine PTE Ltd for shipping disruptions
The lawsuit is part of a class action with other companies seeking compensation for losses
The U.S. Department of Justice has filed a separate $100 million lawsuit against the ship’s owners
The FBI has opened a criminal investigation into the collapse
The Limitation of Liability Act of 1851 may cap the shipowners’ liability at $43 million

Baltimore Yacht Brokerage Joins Legal Battle Over Bridge Collapse

Marine Motor Yacht Sales, a Baltimore-based yacht brokerage, has filed a lawsuit against Grace Ocean Private Ltd and Synergy Marine PTE Ltd, the owners and operators of the cargo ship “Dali” that collided with the Francis Scott Key Bridge on March 26. The incident resulted in six fatalities and halted all maritime traffic until June, causing significant financial strain on local businesses. The brokerage claims to have incurred substantial costs while storing a $1 million yacht intended for transport to Australia.

This lawsuit is part of a broader class action involving other companies like American Publishing, all seeking compensation for losses stemming from the bridge collapse and subsequent port closure. The legal action highlights the far-reaching economic impact of the disaster on Baltimore’s business community and maritime industry.

Federal Government Takes Legal Action

In a parallel move, the U.S. Department of Justice has filed a civil lawsuit against Grace Ocean Private Limited and Synergy Marine Private Limited, seeking more than $100 million in damages. The federal government aims to recover costs associated with clearing over 50,000 tons of debris and is also pursuing punitive damages.

“The companies responsible for this avoidable catastrophe must pay for the cleanup and recovery efforts,” Attorney General Merrick Garland said in a statement.

The lawsuit alleges negligence and cost-cutting measures by the companies led to the incident. According to the legal filing, the ship’s crew was ill-prepared, and the vessel was in poor condition with multiple mechanical failures leading up to the collision.

Criminal Investigation and Liability Concerns

Adding another layer of complexity to the case, the FBI has opened a criminal investigation into the collapse. Agents boarded the Dali to conduct “court authorized law enforcement activity,” focusing on whether the crew was aware of the ship’s malfunctions before departure.

“If there was any indication that the ship had pre-existing issues, these guys are not going to get out on a limitation of liability,” a legal expert commented.

However, the shipowners have filed a petition to limit their liability to $43 million under the Limitation of Liability Act of 1851. This act caps shipowners’ liability at the vessel’s post-accident value, potentially limiting their financial responsibility. The move has drawn comparisons to infamous maritime disasters of the past.

Economic Impact and Recovery Efforts

The collapse of the Francis Scott Key Bridge has had severe economic consequences for Baltimore and the surrounding region. The Port of Baltimore, a critical supply chain route, was cut off, and the Fort McHenry Federal Channel was only reopened in June after extensive clearing operations.

“President Biden launched a federal effort to rebuild the Key Bridge. $60 million in emergency funds were released for initial repairs and design, while Maryland seeks full federal funding through the Baltimore BRIDGE Relief Act.”

As the legal battles unfold, the incident continues to highlight the delicate balance between maritime commerce and infrastructure safety, as well as the potential long-term economic impacts of such catastrophic events on local and national economies.