Commonwealth_ China Construction America (CCA) has taken steps to appeal a recent decision by a New York State Supreme Court judge, who ruled in favor of Sarkis Izmirlian, the original developer of the Baha Mar resort in The Bahamas. In mid-October 2024, Judge Andrew Borrok’s ruling awarded Izmirlian over $1.6 billion in damages, citing fraudulent practices and contract breaches by CCA, the project’s primary contractor. CCA has fought back against this decision, saying that the court’s decision was wrong because it misapplied important New York law principles, twisted basic facts, and didn’t take into account the hard work CCA did to make sure the resort was finished in the end.
Baha Mar, a sprawling 1,000-acre resort on New Providence Island, opened in April 2017 after facing several delays and financial setbacks. The resort boasts three luxury hotels with 2,200 rooms, 284 private residences, a 100,000-square-foot casino, a 30,000-square-foot spa, and a prestigious golf course designed by Jack Nicklaus. Izmirlian and his company BML Properties initially launched the project as a transformative development for The Bahamas, promising significant economic benefits. However, the project encountered substantial financial issues, delays, and a prolonged dispute between Izmirlian and CCA, culminating in Izmirlian’s ouster from the project.
Judge Borrok’s ruling stated that CCA misled Izmirlian regarding the timeline for Baha Mar’s substantial completion. CCA had assured him that they would meet the March 27, 2015, deadline, a commitment the judge later described as false. This failure to meet the completion deadline led to a liquidity crisis, forcing BML Properties to seek bankruptcy protection and, ultimately, the loss of control over the project. Judge Borrok’s decision was based on Izmirlian’s contention that CCA’s conduct intentionally or recklessly inflicted cascading financial pressures due to its failure to meet its commitments.
Following the ruling, CCA issued a statement in which it expressed strong disagreement with the court’s findings, describing them as flawed. Alongside its affiliate companies, CSCEC Bahamas and CCA Construction Inc., CCA officially filed a notice of appeal, contending that the court’s judgment overlooked crucial factors related to CCA’s tireless construction efforts. According to CCA, BML Properties, under Izmirlian’s leadership, mismanaged its finances, overextending its borrowing, and ultimately bringing about its own financial distress. The company argued that BML’s decision to unilaterally place the project into bankruptcy—without informing either CCA or the Bahamian government—was a strategic maneuver aimed at retaining control over the resort.
BML’s actions, contested and rejected by both U.S. and Bahamian courts, inflicted harm not only on CCA and its affiliate, CSCEC Bahamas, but also on The Bahamas’ economy, according to CCA’s statement. They expressed optimism about the appellate court’s capacity to re-evaluate the decision, stating their intention to “correct a ruling that misapplies basic principles of New York law” and failing to recognize CCA’s continuous work that eventually brought the resort to fruition.
For The Bahamas, the dispute has been a subject of both economic and political concern. Prime Minister Phillip Davis has directed Attorney General Ryan Pinder to review the New York ruling before the Bahamian government makes any official statement. The Office of the Prime Minister conveyed that Davis’s administration would hold off on public comments or decisions until the Attorney General’s office completes its analysis of the ruling’s implications.
The Baha Mar project’s drawn-out saga has attracted significant public interest due to its economic implications for The Bahamas, as the resort represents one of the largest developments in the Caribbean region. The project’s completion in 2017 brought substantial revenue and job opportunities to The Bahamas, but the controversies surrounding its development continue to impact perceptions of the resort’s legacy. The forthcoming appeal by CCA may add yet another chapter to this protracted legal battle.
