MV Dali Ship Owner Uses Historic Titanic Law To Limit Liability In Baltimore Bridge Collapse
The owner of the MV Dali cargo ship that hit the Baltimore Bridge may encounter millions of dollars in damage claims after the incident caused considerable damage.
Legal experts say that a Titanic law may help the ship's owner, the Singapore-based Grace Ocean, to reduce its liability for the damages.
The 19th-century law was once invoked by the Titanic’s owner to limit its payout for the 1912 Titanic sinking.
The Titanic law is a way out for shipping giants from suffering heavy losses from disasters at sea.
Martin Davies, director of Tulane University’s Maritime Law Center, says the 1851 law could lower the exposure to tens of millions of dollars.
This can be done by capping the ship owner’s liability at how much the vessel is worth after the crash, plus any earnings it collected from carrying the freight on board.
Also, the ship owner’s insurance would help the company deal with legal risks.
Insurance claims will be based on proving whether the accident was caused by negligence, and if so, by whom, or mechanical failure.
The ship is insured by the Britannia Protection and Indemnity Club, which is a mutual insurance association that’s owned by shipping companies.
Insurance claims for damage to the bridge could reach $1.2 billion.
Claims relating to wrongful death & business interruption are likely to range from $350 million to $700 million.