(Bloomberg) — China Construction America Inc. was ordered to pay $1.6 billion to the developer of the long-delayed Baha Mar casino resort in the Bahamas as a judge in Manhattan found the contractor had “committed fraud beyond any doubt.”
Judge Andrew Borrock ruled after an 11-day trial in August that CCA’s fraud and contract breaches had cost BML Properties its entire $845 million investment in the luxury resort, located on the northern coast of New Providence, the principal island in the Bahamas. In addition to restoring BML’s investment, the judge awarded interest dating back to May 2014.
BML, led by wealthy Bahamas businessman Sarkis Izmirlian, sued CCA in 2017 claiming the state-owned Chinese contractor pulled off a “massive fraud” to enrich itself at BML’s expense, leading to the collapse of the project in 2015. Delays in the construction of the huge resort had been a drag on the Bahamian economy for several years.
“This is a major vindication for Mr. Izmirlian,” BML’s lead lawyer, Jacob Buchdahl of Susman Godfrey LLP said in a phone interview. “It’s been a long time coming.”
A CCA spokesman said it plans to appeal the ruling, calling it “deeply flawed.”
BML claimed that CCA knew it wouldn’t be able to meet a planned December 2014 deadline to open the resort, but created the appearance that it would in order to remain on the project and collect unearned fees.
Baha Mar opened in April 2017 and includes three hotels with 1,800 rooms, a spa, a convention center, a Jack Nicklaus-designed golf course, shopping and the biggest casino in the Caribbean, according to Baha Mar’s website.
The case is BML Properties Ltd. v. China Construction America Inc., 657550/2017, New York State Supreme Court, New York County (Manhattan).
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Publish date : 2024-10-21 09:42:00
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