Brown announces ‘settlement in principle’ with ship owner in Key Bridge collapse lawsuit

The owner and operator of a cargo ship that caused the deadly collapse of the Francis Scott Key Bridge two years ago has reached a settlement with the state.

Maryland Attorney General Anthony Brown announced the “settlement in principle” in a press release Thursday.

“For two years, Maryland workers, families, and communities have carried the weight of a disaster that should never have happened. The Dali’s crash into the Key Bridge disrupted the Port of Baltimore, devastated livelihoods, and sent economic shockwaves across our State that are still being felt today,” Brown said in a statement. “Our work is not finished, but this settlement is an important step toward making Maryland whole.”

Details of the settlement, including a dollar amount, were not available Thursday. The agreement with Grace Ocean Private Limited and Synergy Marine Pte Ltd., the owner and operator of the cargo ship Dali, is being finalized.

The settlement in principle does not resolve claims Maryland may have against Hyundai, the company which built the Dali.

Brown said his office would have no further comment.

“This agreement marks a decisive step forward and brings a measure of accountability to the tragedy of the Key Bridge,” said Senate President Bill Ferguson (D-Baltimore City). “Marylanders have shown resilience through a crisis that upended communities across our state, and the Senate remains committed to fully supporting our families, workers, and neighborhoods.”

Representatives for Gov. Wes Moore (D) and House Speaker Joseline Peña-Melnyk (D-Prince George’s and Anne Arundel) declined to comment.

Maryland officials two weeks ago observed the second anniversary of the collapse. The observance highlighted ongoing efforts to replace the bridge.

The cost of that replacement is currently estimated at $4.3 billion to $5.2 billion. It is not expected to open until the end of 2030 — about two years later than originally projected.

Maryland’s case is one of about a dozen tied to the March 26, 2024, collapse of the Key bridge.

The Dali was leaving the Port of Baltimore early that morning when it lost power. The fully loaded 985-foot ship went dark. It drifted and eventually struck one of the piers of the bridge.

Within seconds, much of the span collapsed into the Patapsco River. Six road workers on the bridge deck that morning died.

The collapse caused the temporary closure of the Port of Baltimore.

The ship, trapped under bridge decking, remained in place for weeks. State, federal and private crews pulled 50,000 tons of steel and concrete from the shipping channel.

The National Transportation Safety Board, in a report issued in November, said the collapse was the result of a power outage linked to a loose wire. But the agency also cited what it called “woefully inadequate” infrastructure protecting the Key Bridge.

The announcement of a settlement in principle signals another step toward resolving a complex federal lawsuit.

Maryland filed its case in September 2024, about six months after the collapse. The lawsuit sought an unspecified amount of damages.

In the days immediately after the collapse, officials said a replacement could cost between $1.7 and $1.9 billion.

The ship’s owners and operators initially tried to limit their liability in the incident to $43.7 million under maritime law. The amount was tied to the value of the cargo on the ship at the time.

In the hours after the collapse, then-President Joe Biden vowed the federal government would cover 100% of the cost of a replacement span.

The state received a $350 million payout from the insurer of the bridge, ACE American Insurance Co. The owners and operators of the Dali reached a separate settlement earlier this month to repay the insurance company.

Efforts to replace the toll bridge are underway.

Despite the promise of federal funding, Maryland has skin in the game.

The state is on the hook for forward funding — and financing — stages of the rebuild. It can then seek reimbursement from a federal government that at times has been hostile and even threatened the promised replacement costs.

Maryland Transportation Authority officials were already expecting to consider toll increases in the coming year. The effort to replace the bridge likely ensures those increases will be discussed.

Any settlement recovered by the state will eventually have repay the federal government.

In 2024, the state hired Nebraska-based Kiewit Infrastructure to begin designing a new span.

The state also hired Bridging Maryland Partnership, a consortium of three firms, to manage the project.

The state has paid out about $300 million to Kiewit and others.