Insurer settles with owner, operator of ship that hit Baltimore's Key Bridge amid effort to limit liability in collapse
The company that insured Baltimore's Francis Scott Key Bridge has reached a $350 million settlement with the owner and operator of the cargo ship that hit the bridge in 2024.
The settlement for ACE American was revealed with few details in Baltimore federal court on Thursday during a status hearing regarding the lawsuit the insurer and others have against the Dali's owner and operator for damages.
$350 million is the same amount ACE American paid out to Maryland less than two months after the collapse.
The city of Baltimore, the state of Maryland, local businesses and other parties are involved in the lawsuit.
While this new settlement was reached, U.S. District Court Judge James Bredar advised counsel on both sides that, even if more settlements come, the remaining parties need to be ready for trial.
Limiting liability
For years, the ship's owner, Grace Ocean Private Limited, and the ship's operator, Synergy Marine Group, have tried to limit their liability in the collapse to around $44 million. The basis of which is rooted in a centuries-old maritime law.
However, claimants in the lawsuit — Baltimore, Maryland, among others — are looking for billions in damages.
The bench trial that will decide if the Dali's owner and operator can limit their liability starts June 1. In court, Bredar made it clear that all remaining parties need to be ready to go.
"The schedule has to be given tip top priority," he told counsel.
Before the start of the trial, there is a pre-trial hearing scheduled for May 5.
Progress on Key Bridge rebuild
Thursday's hearing comes exactly a week after the state marked two years since the collapse.
While the reopening date of the new bridge has been pushed back from 2028 to 2030, and the rebuild costs have more than doubled, state leaders say things are still going well.
The Port of Baltimore has reported its second-best year on record, and the design for the new bridge is 70% complete. That's something state leaders have said normally takes years to accomplish.
"At a time when too many people wonder whether building big and great things is still possible in our country, Maryland once again is going to lead the way and show what's possible," Gov. Wes Moore said last week. "There has been historic speed that we have been able to move at, but we have not at all had to compromise safety. We have not had to compromise design within that process because those were tantamount to anything else that was happening."
