New bill could raise financial liability up to tenfold for Dali owners

A new bill has been introduced in the US House of Representatives which seeks to significantly increase the liability for foreign-flagged vessels involved in accidents. The bill aims to increase the financial responsibility of owners of the MV Dali container ship which struck the Francis Scott Key Bridge in March 2024, causing it to collapse. The allision claimed the lives of six construction workers who were on the bridge at the time of the accident.

Under current US law, established in 1851, vessel owners can limit their liability in federal court to the value of the vessel and its cargo, minus certain expenses. This provision came into focus following a recent court filing by the Singapore-based owner and manager of MV Dali, Grace Ocean, and Synergy Marine, which sought to cap their liability to US$43.7 million, despite the vessel’s higher valuation of US$90 million. The duo filed the petition in the U.S. District Court for Maryland less than a week after the collision.

The new bill, named the “Justice for Victims of Foreign Vessel Accidents Act” (H.R.9348), proposes raising the liability for foreign-flagged vessels to up to ten times the dollar value of the vessel and its cargo, excluding expenses. Additionally, the bill includes a provision to apply the increased liability limits retroactively to March 25, 2024, the day before the Francis Scott Key Bridge collapse. The proposed legislation would maintain the current liability limits for US-flagged vessels, which are subject to stringent federal and state regulations, including regular inspections by the US Coast Guard. US Representative John Garamendi and US Representative Hank Johnson have proposed the bill.

“If the foreign owners of the cargo vessel that took down the Francis Scott Key Bridge in Baltimore think they can leave American taxpayers holding the bag, I have a message for them: you broke it, you bought it. Access to America’s ports and our consumers is a privilege, not a right. If the foreign owners of the Dalia want to keep that privilege, they can break out their checkbooks, call their insurance company, and pay their fair share of the bridge replacement costs and compensation to the families of the six workers who died tragically that day. In the meantime, I support the Maryland Delegation and President Biden’s ongoing work to rebuild the bridge with federal funding as quickly and safely as possible,” said Congressman Garamendi.

According to the attorney for the victims of the Key Bridge collapse, the families of the victims strongly support the bill.

“This legislation protects all Americans from having their lives shattered by corporate vessels from foreign countries due to preventable failures. This issue is not about whether you are a Democrat or a Republican; it is about whether you love and want to protect Americans. That is why both parties should support this bill and help protect our country when foreign vessels are involved,” said L. Chris Stewart and Justin Miller of Stewart, Miller Simmons Trial Attorneys; Dan Rose and Kevin Mahoney of Kreindler & Kreindler; and Craig Sico of Sico Law Group.