Dali Civil Trial Delayed to Consider Legal Issue After Most Claims Settle
The U.S. federal district court judge scheduled to hear opening arguments in the civil trial related to the containership Dali expressed frustration while agreeing to instead postpone the trial indefinitely. Most of the claims have now been settled, and all the remaining parties agreed to the delay, in part to consider a legal issue related to the remaining claims.
The owners of the Dali, Grace Ocean, and the manager of the vessel, Synergy Marine, made a last-minute motion on Saturday, May 30, to stay the civil proceedings, and Judge James Bredar ruled on Monday, June 1, to delay the trial instead of proceeding to opening arguments. He said that while it is typical to have last-minute settlements in civil trials, he still expressed general frustration for the court and the public after more than two years of legal process on the case that sought to test the ability of the companies to limit their civil liabilities.
The companies argued that all but 11 of the 54 initial claims filed in the civil case have been settled or voluntarily dismissed. They noted that all the wrongful death claims were settled, as well as the claims from the injured survivors. The court had denied a previous motion for a delay, saying it was time for the families to have their day in court. In addition, all but one cargo claim and one property damage claim (from the City of Baltimore) have been resolved.
Lawyers for the City and County of Baltimore agreed for different reasons that the trial should be delayed. They said a potential criminal conviction would change the remaining case as it would “conclusively demonstrate that petitioners (Grace Ocean and Synergy) cannot invoke the protection of the Limitation of Liability Act.”
Baltimore is claiming property damage for a water main that ran alongside the bridge and under the river that was damaged by the collapse. The remaining claims are economic loss claims.
At issue is a 1927 U.S. Supreme Court decision that bars economic loss recoveries caused by negligence unless there were also physical damages to properties. Most of the remaining claims cite economic losses due to the closure of the port and the loss of the bridge. The judge has given all the parties two weeks to file new motions on this issue. Judge Bredar expects the issue to be fully briefed by mid-July.
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The largest of the settlements was a record $2.25 billion with the State of Maryland, as well as $100 million with the federal government. Terms of the settlements with the families have not been announced. Others, including the employer of the road crew working on the bridge, and cargo claims, such as one from Zim and MSC, have also been settled.
Synergy Marine and one of its port superintendents, however, were indicted by the federal government for issues related to the operation of the Dali. They are also facing charges of providing false information to the investigators, including the National Transportation Safety Board.
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