The Chinese contractor who built the Baha Mar resort in the Bahamas has appealed the New York State Supreme Court judge’s ruling earlier this month that it owed the resort’s original developer $1.6bn in damages as a result of contract breaches and fraud.
In a statement sent to GCR, a spokesperson for the defendants said: “The lower court’s decision is by no means the last word in this matter, and the action we have taken to begin the appeal process is the first step towards correcting a ruling that misapplies basic principles of New York law, misconstrues core facts, and completely overlooks the consistently tireless construction work done by CCA Bahamas that ultimately completed the Baha Mar Resort.”
Following an 11-day, non-jury trial, Supreme Court Justice Andrew Borrok ruled on 18 October that developer BML Properties “more than met its burden in proving” its claim that CCA, a subsidiary of China State Construction Engineering Corporation (CSCEC), breached the Best Interests Obligation of the Investors Agreement at least six times and committed fraud at least four times to cause BML Properties to lose its entire $845m investment in Baha Mar.
On top of that, CCA was ordered to pay interest accruing from the date of the first breach, which the judge identified as 1 May 2014, leading to the $1.6bn figure.
CCA will argue that BML Properties, whose chairman and chief executive Sarkis Izmirlian began developing the resort in 2005, was the cause of its own difficulties.
“Through its own irresponsible actions, BML Properties caused BML to overborrow, overspend and overextend itself and then brought about its own losses by unilaterally and secretly putting the project into a wrongful bankruptcy behind the backs of its partners and the Bahamian Government,” CCA’s statement said.
“BML Properties’ ploy to keep control of the project, which was rejected by independent courts in the United States and The Bahamas, harmed not only CCA Bahamas and CSCEC Bahamas, but also the Bahamian economy. We look forward to presenting our arguments to the appellate court.”
- Subscribe here to get stories about construction around the world in your inbox three times a week
