NASSAU, BAHAMAS — The Chinese contractor responsible for constructing the Baha Mar resort has appealed a recent ruling by a New York State Supreme Court judge, which ordered the contractor to pay $1.6 billion in damages to the resort’s original developer for contract breaches and fraud.
CCA Construction, Inc. (formerly China Construction America) and co-defendants CSCEC Bahamas and CCA Bahamas today filed their appeal with the court’s Appellate Division.
A spokesperson for the defendants stated: “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.”
The statement continued: “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. 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.”
Prime Minister Philip Davis has directed Attorney General Ryan Pinder to review the New York Supreme Court’s recent ruling in the case of BML Properties Ltd. v. China Construction America, Inc., as stated by the Office of the Prime Minister.
“The Prime Minister has stated that the Government will await the advice of the Office of the Attorney General and Legal Affairs before making any further comments or decisions regarding the findings of the ruling,” the statement noted.
BML Properties Ltd. was awarded over $1.6 billion in its prolonged New York lawsuit against China Construction America concerning the Baha Mar project, prevailing on all claims.
The bench trial, presided over by New York Supreme Court Justice Andrew Borrok, evaluated whether BML’s $1.5 billion losses were due to excessive debt or construction delays. BML claimed that CCA, the Chinese state-owned construction firm responsible for building Baha Mar, concealed major delays and intentionally hindered the project’s March 2015 opening, forcing BML into liquidation. According to BML, this led to the loss of its $745 million investment, which, with interest, now totals $1.55 billion.
Justice Borrok ruled that CCA, the U.S. arm of China State Construction Engineering Corporation, defrauded BML Properties and breached the investment agreement, directly causing the loss of BML’s $845 million investment in Baha Mar. The court found that CCA’s actions triggered a liquidity crisis, pushing BML out of its investment and leading to Baha Mar’s bankruptcy in June 2015.