Court Upholds $1.7 Billion Judgment Against CCA as Baha Mar Eyes Major Expansion

Last fall, the state Supreme Court ruled in favor of Izmirlian, the original developer of the Baha Mar resort in Nassau, Bahamas, after it was found that contractor China Construction America (CCA), a subsidiary of China State Construction Engineering Corporation (CSCEC), had defrauded him.

In a decision issued by Justice Andrew Borrok, the court concluded that CCA had knowingly made false promises about meeting development deadlines despite being aware of its inability to do so. Additionally, CCA was found to have repeatedly violated its best-interest agreement, engaged in fraudulent acts, and sabotaged the progress of the megaresort project.

CCA’s Actions Lead to Bankruptcy, Court Upholds $1.7 Billion Damages Against Contractor

The actions of CCA resulted in significant financial damage to Izmirlian’s company, BML Properties (BMLP), ultimately forcing them to file for Chapter 11 bankruptcy. In 2016, after a prolonged legal battle, the Hong Kong conglomerate Chow Tai Fook Enterprises purchased the Baha Mar resort, completed its construction, and continues to operate it. However, the legal and financial ramifications of the project’s troubled history were far from over.

Following the trial court’s decision, CCA filed an appeal, claiming that the judgment was based on flawed reasoning. The contractor argued that BMLP’s own mismanagement, including overborrowing, overspending, and mishandling the bankruptcy process, was responsible for the losses suffered.

CCA also contended that BMLP had secretly placed the project into bankruptcy without informing its partners or the Bahamian government. However, on April 8, the New York court upheld the original ruling, reaffirming the $1.6 billion in damages, which had since accrued interest, bringing the total to over $1.7 billion.

Izmirlian Responds to Court Ruling as Baha Mar Plans Major Expansion and Growth

In a statement following the ruling, Izmirlian expressed gratitude toward the appellate court and emphasized his commitment to enforcing his rights against CCA, CSCEC, and all parties involved in the fraud. He urged them to settle quickly to minimize further disruptions to their operations.

In contrast, a spokesperson for CCA and its affiliates expressed disappointment in the decision, citing multiple points of law that they believed were misinterpreted. They also reiterated their intention to appeal the case to the New York Court of Appeals, promising that the legal battle was far from over.

Despite the legal battles, Baha Mar has become one of the leading casino resorts in Nassau. The resort is now preparing for a significant $350 million expansion that is set to begin in 2026 and open in 2029. The planned development will span 12 acres of waterfront and include 350 hotel rooms, 50 villas, four new restaurants, a large spa, and ample event space.

Graeme Davis, president of Baha Mar, highlighted the project’s potential to stimulate economic growth and job creation in the Bahamas, marking a bright future for the resort and the region’s economy.