As costs soar, who foots the bill for Baltimore bridge collapse?

Apr 4

Jack Aylmer Anchor

By Jack Aylmer (Anchor), Evan Hummel (Producer), Jake Maslo (Video Editor)

Bias Distribution Powered by Ground News™

The Francis Scott Key Bridge collapse, which killed six people in Baltimore, could see insured losses between $2 billion to $4 billion. The figures could make it “the most expensive marine insured loss in history.” However, who will pay and how much depends on who is asked.

President Joe Biden, who is scheduled to visit Baltimore on Friday, April 5, has vowed the federal government will pay, but Republicans in Congress stand in his way.

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Meanwhile, the owner and manager of the ship that crashed into the bridge are trying to escape some of the costs. They filed jointly using a pre-Civil War provision in maritime law, which limits their liability to the “value of the vessel’s remains.” In total, it would cap their reported expenses at $43.6 million.

However, at least one legal expert said that the provision likely won’t allow the company to escape that much liability. Instead, what the provision does is force all subsequent claims to be filed in one place.

Around 100 insurance companies are reported to be involved in the case. The insurance companies cover everything from cargo on the ship, the ship itself, the bridge, and even the Port of Baltimore. Those insurance companies will likely front the costs eventually, according to a legal analyst.

Once an investigation is complete, and it is determined who is at fault, insurance companies will reportedly sue the responsible party in an attempt to recoup their losses.

The ship’s owner, who is based out of Singapore, argues that they were not previously aware of the vessel’s mechanical issues that led to the crash.

Meanwhile, the Biden administration has already approved $60 million to help clear debris and for rebuilding efforts. That’s just a fraction of what’s needed, as costs to repair the bridge alone could be as high as $1.2 billion. The emergency funds that the Biden administration provided are also limited, and Congress would need to approve additional funding for bridge reconstruction.

Many Republicans, including former Republican House Speaker Newt Gingrich, said it should not be the government’s responsibility to pay; rather, the insurance companies should foot the bill.

As the debate over who should pay continues, efforts to remove the wreckage from the Patapsco River are underway. Sonar images have revealed that there is still debris at the waterway, and divers were swimming in “virtual darkness.” Cranes are also assisting by lifting hundreds of tons of wreckage to clear the channels.

Gov. Wes Moore, D-Md., said efforts will need to include more than just rebuilding the bridge. Moore said that he’s also focused on the victims and the long-term economic impact.

“Our work with these families does not end with recovery,” Moore said. “Both federal and state partners are meeting with families of the victims to offer them support.”

Moore went on to say that this is not just about a bridge but “it’s about our nation’s economy.”

Tags: Baltimore, Baltimore Bridge Collapse, Economy, Joe Biden, Maryland, U.S. Economy, Wes Moore

[JACK AYLMER]

WHEN ALL IS SAID AND DONE, THE DEADLY COLLAPSE OF THE FRANCIS SCOTT KEY BRIDGE IN BALTIMORE COULD SEE INSURED LOSSES BETWEEN TWO AND FOUR BILLION DOLLARS.

ONE CREDIT RATING AGENCY SAYING IT COULD BE “THE MOST EXPENSIVE MARINE INSURED LOSS IN HISTORY.”

BUT WHO WILL PAY AND HOW MUCH, DEPENDS ON WHO YOU ASK.

PRESIDENT BIDEN, WHO IS SET TO VISIT BALTIMORE FRIDAY, VOWED THE FEDERAL GOVERNMENT WILL PAY, BUT REPUBLICANS IN CONGRESS SAY NOT SO FAST.

MEANWHILE, THE OWNER AND MANAGER OF THE SHIP THAT CRASHED INTO THE BRIDGE ARE TRYING TO ESCAPE SOME OF THE COST.

THEIR JOINT-FILING USES A PRE-CIVIL WAR PROVISION IN MARITIME LAW–

TO LIMIT THEIR LIABILITY TO THE “VALUE OF THE VESSEL’S REMAINS.”

THIS WOULD CAP THEIR EXPENSES AT JUST UNDER $44-MILLION.

BUT THE FILING MIGHT NOT END UP LIMITING THE SHIP OWNER’S LIABILITY AFTER ALL– INSTEAD IT SERVES ANOTHER PURPOSE– PUTTING ALL THE CLAIMS FILED IN ONE PLACE.

ABOUT 100 INSURANCE COMPANIES ARE INVOLVED, WHICH INCLUDES INSURANCE FOR THE BOAT, CARGO, BRIDGE ITSELF, AND EVEN THE PORT OF BALTIMORE.

THOSE INSURANCE COMPANIES WILL LIKELY FRONT THE COSTS EVENTUALLY, ACCORDING TO A LEGAL ANALYST.

ONCE AN INVESTIGATION IS COMPLETE, AND THEY DETERMINE WHO IS AT FAULT–

INSURANCE COMPANIES WILL REPORTEDLY SUE THE RESPONSIBLE PARTY– IN ATTEMPT TO RECOUP THEIR LOSSES.

THE SHIP’S OWNER WHO IS BASED OUT OF SINGAPORE, ARGUES THEY WEREN’T PREVIOUSLY AWARE OF THE VESSEL’S MECHANICAL ISSUES THAT LED TO THE CRASH.

MEANWHILE, THE BIDEN ADMINISTRATION ALREADY APPROVED $60 MILLION TO HELP CLEAR DEBRIS AND REBUILDING EFFORTS.

HOWEVER, TOTAL RECONSTRUCTION COULD BE AS HIGH AS ONE-POINT-TWO-BILLION DOLLARS FOR THE BRIDGE ALONE.

AND THE EMERGENCY FUNDS THE ADMINISTRATION USED IS LIMITED.

MEANING CONGRESS WOULD HAVE TO APPROVE MORE FUNDING TO REBUILD THE BRIDGE.

MANY REPUBLICANS, INCLUDING FORMER HOUSE SPEAKER NEWT GINGRICH, SAY IT SHOULD NOT BE THE GOVERNMENT’S RESPONSIBILITY TO PAY– RATHER THE INSURANCE COMPANIES.

EFFORTS TO REMOVE WRECKAGE FROM THE RIVER ARE UNDERWAY.

AND SONAR IMAGES REVEAL THERE IS STILL DEBRIS AT THE BOTTOM OF THE WATERWAY– DIVERS WERE SWIMMING IN “VIRTUAL DARKNESS” — AND CRANES HAVE LIFTED HUNDREDS OF TONS OF WRECKAGE TO CLEAR THE CHANNEL. BUT STILL WORK REMAINS. ONLY ONE OF THE THREE TEMPORARY CHANNELS FOR SHIPS HAS REOPENED, AND IT IS A FRACTION OF THE DEPTH OF THE FORMER ROUTE.

MARYLAND GOVERNOR WES MOORE SAYS EFFORTS WILL NEED TO INCLUDE MORE THAN JUST REBUILDING. HE’S ALSO FOCUSED ON THE VICTIMS’ FAMILIES AND THE LONG-TERM ECONOMIC IMPACT.

[WES MOORE]

OUR WORK WITH THESE FAMILIES DOES NOT END WITH RECOVERY. BOTH FEDERAL AND STATE PARTNERS ARE MEETING WITH THE FAMILIES OF THE VICTIMS TO OFFER THEM SUPPORTS.

[JACK AYLMER]

MOORE SAID THIS IS NOT JUST ABOUT A BRIDGE –

“IT’S ABOUT OUR NATION’S ECONOMY.”