Dali Shipowners Sue HD Hyundai Over Alleged Defective Switchboard Linked to Baltimore Bridge Collapse

The operators and owners of the container ship Dali, involved in the catastrophic collapse of the Francis Scott Key Bridge in March 2024, have initiated legal proceedings against HD Hyundai Heavy Industries, asserting that faulty equipment supplied by the South Korean shipbuilder was responsible for the vessel’s critical power failure.

In a complaint filed on July 31 in the U.S. District Court for the Eastern District of Pennsylvania, Grace Ocean (the registered owner of Dali) and Synergy Marine (its technical manager) allege that Hyundai improperly engineered and installed a key component of the ship’s electrical distribution system. The claim centres around an under-voltage release (UVR) mechanism tied to one of the ship’s main circuit breakers. The plaintiffs contend that a wiring connection—designed to carry control signals—was compromised due to the incorrect placement of a labelling band, preventing secure contact within the terminal block. This flaw, they argue, disrupted the power supply and ultimately led to a full-scale electrical shutdown.

The alleged defect resulted in the loss of propulsion and steering capabilities at a critical moment, leaving the ship adrift and unable to avoid striking the bridge structure. Six workers lost their lives, and maritime traffic through the Port of Baltimore was severely impacted.

U.S. federal authorities, including the National Transportation Safety Board and the Coast Guard, had earlier identified issues within the vessel’s electrical infrastructure as pivotal in their investigation. A report released in June confirmed a break in continuity within the control circuit. Additional technical assessments documented loosely secured cabling, which engineers from Hyundai reportedly acknowledged could lead to system failure—a conclusion later substantiated during controlled simulations.

The Dali had experienced prior electrical anomalies, including a blackout while docked in Baltimore shortly before its final voyage. These prior events, combined with reports of degraded maintenance conditions and makeshift onboard repairs, have raised serious concerns over the vessel’s operational integrity and its compliance with maritime safety standards.

Apart from this lawsuit, Grace Ocean and Synergy Marine are also facing significant legal challenges. The U.S. Department of Justice filed a separate $100 million action in September 2024, accusing the companies of knowingly operating an unseaworthy ship and failing to disclose mechanical and electrical deficiencies. The State of Maryland has also launched litigation, seeking financial recovery for damages related to the bridge’s destruction, emergency response costs, and infrastructure restoration.

As a defense strategy, the ship’s owner and operator are seeking to limit their liability through maritime law provisions while redirecting part of the responsibility toward the original equipment manufacturer. Their suit against HD Hyundai includes claims for the cost of vessel repairs and potential compensation across dozens of civil cases involving economic loss, property damage, cargo disruption, personal injuries, and environmental impacts.

Construction of the Dali began in 2014, with delivery completed in 2015. The current product liability action accuses Hyundai of failing to ensure that all electrical connections on the switchboard were properly secured during fabrication and assembly, and that the system was unsafe from the point of delivery. HD Hyundai has been formally notified of the suit and is expected to respond through legal channels in the coming weeks.

This litigation adds a new layer of complexity to an already expansive network of legal proceedings stemming from one of the most consequential maritime incidents in recent U.S. history.

Reference: Taleswind

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