On 26 March 2024, the iconic Francis Scott Key Bridge in Baltimore, USA collapsed after it was hit by Dali, a ship owned by Grace Ocean Private in Singapore and insured by Britannia P&I Club.
The losses incurred by this accident vary between direct losses such as the rebuilding cost of the bridge and the compensation for the six- workers killed and the dozens more injured, and consequential losses of business disruption due to the closure of Baltimore port, and the bridge itself which will be put out of service for at least one year from now until its rebuilding.
The resulting damages combined may go up to 4 billion dollars, making this accident the largest single loss in maritime insurance history.
The biggest part of loss coverage will be borne by insurers, and the rest will be the direct liability of the shipowner which would invoke the Limitation of Liability Act from the 19th century to limit its liability to the value of the ship. This law is also known as the Titanic Law as it was used by the owners of Titanic to limit their liability after the tragic accident of Titanic in 1912.
Once the Limitation of Liability action is filed, all claims against the shipowner will be brought in a single courtroom before a single federal judge to be adjudicated by a single judgment.
The claimants on the other hand will try to prove that the shipowner had knowledge of the cause of accident in an attempt to break the limit of liability.
The litigation proceedings will last for years from now and it will be a complicated process until those strings are segregated and it's decided who shall pay what.
Originally published 1 Apr 2024
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