Trial in Baha Mar dispute ends – Eye Witness News

NASSAU, BAHAMAS – The long-running fraud and contract dispute between BML Properties Ltd. and China Construction America Inc. (CCA) has been settled in New York State court.

The case, overseen by New York State Supreme Court Justice Andrew Borrok, examined whether BML's $1.5 billion losses were due to the resort developer's excessive indebtedness or construction delays.

BML claims that CCA, the Chinese state-owned construction company responsible for building the Baha Mar luxury resort, concealed significant delays and deliberately sabotaged the project's March 2015 opening date in order to force BML into liquidation. According to BML, this sabotage resulted in the loss of the $745 million investment, which now amounts to $1.55 billion plus interest.

Sarkis Izmirlian, the original developer of the mega-resort, filed a $2.25 billion lawsuit six years ago, claiming CCA committed “massive fraud.” Izmirlian alleged CCA intentionally caused work slowdowns or disruptions, preventing the resort from opening to paying guests on March 27, 2015, and contributing to BML's cash flow crisis. The project was eventually placed into receivership and later sold to its current owner, Hong Kong conglomerate Chow Tai Fook Enterprises.

In his closing argument, CCA's attorney, Mark Goodman of Debevoise & Plimpton LLP, claimed that no evidence of intentional delays by CCA had been presented. Even if there had been violations, Goodman argued that BML's financial mismanagement was the true cause of the losses, rendering the delays irrelevant. He claimed that BML's significant debt and subsequent bankruptcy led to the liquidation losses for which BML now blames CCA.

In response, BML's legal counsel Jacob Buchdahl of Susman Godfrey LLP countered that the developer's substantial debt was based on CCA's assurance that Baha Mar would be completed by the March 2015 deadline. Buchdahl argued that this assurance led BML to spend millions on preparations, hiring and advertising, including a Super Bowl ad.

Buchdahl alleged that BML was driven into bankruptcy by missing the opening date and that CCA manipulated the liquidation process to the detriment of BML's investments in order to pursue its own interests.