The company that owns the ship that crashed into the Francis Scott Key Bridge in Baltimore last week is trying to use a 173-year-old law to cap the damages it may have to pay, including potential compensation to families of the six workers killed in the disaster.
The effort comes after Big Oil and shipping interests — including the company that chartered last week’s out-of-control ship — successfully lobbied to block 2010 reforms to this so-called Titanic Law.
The observations about insurance are a bit confusing. Typically, property insurance would be available to pay for the repair/replacement the bridge. This is based on the insurance contract between the bridge owner and its insurer, and the contract calls for payment without regard to fault, unless, of course, the owner intentionally caused the damage. The insurer would then have a subrogation cause of action against the responsible party/parties, which is where the limitation of liability issue is triggered. In the insurer's suit, the Shipowner can assert the limitation of liability provision to partially shield itself against civil liability .