CSCEC Bahamas Ltd. (CSCECB), CCA Bahamas Ltd. (CCAB), and CCA Development, Inc. (CCA) have initiated an enchantment towards the $1.6 billion judgment awarded to Sarkis Izmirlian, the unique developer of the Baha Mar resort. The defendants argue the trial courtroom made important authorized errors and neglected key proof, asserting the decision ought to be overturned.
The enchantment, which was initially introduced in October 2024, focuses on the declare that the resort’s downfall was not brought on by the defendant’s actions however slightly by the gross mismanagement of BML Properties (BML). The defendants allege BML’s reckless monetary practices, poor decision-making, and eventual chapter submitting led to unpaid money owed owed to each the Bahamian authorities and native subcontractors. These elements, they argue, culminated within the liquidation of BML by the Bahamian Supreme Courtroom.
“As our enchantment makes clear, the trial courtroom disregarded black-letter New York legislation and ignored indeniable proof that BMLP’s gross mismanagement, lots of of thousands and thousands of {dollars} in overspending and disastrous unilateral choice to place BML in chapter drove the Baha Mar mission into the bottom,” acknowledged a spokesperson for the defendants, cited by Eye Witness Information. The spokesperson emphasised that CCAB’s efforts to finish 97% of the mission by the agreed deadline highlighted the corporate’s good religion. “The judgment suffers from quite a few, important authorized errors and ought to be reversed in its entirety, as we consider it will likely be,” they added.
Claims of Oversight in Courtroom Ruling
The defendants argue that even when CCAB had achieved full mission completion, BML’s shortcomings would have delayed the resort’s opening. They contend BML’s management, completely underneath the plaintiff’s management, failed to satisfy its tasks, together with delivering crucial facilities similar to eating places, a nightclub, and a spa. Inside emails from BML President Tom Dunlap reportedly acknowledged these lapses. The enchantment additional asserts that even an on-time opening would have resulted in years of monetary losses for the resort.
Further criticisms had been directed on the trial courtroom’s dealing with of contractual obligations. The defendants declare the courtroom improperly modified the unique Traders Settlement, assigning new tasks to CCAB that weren’t a part of the preliminary contract. In addition they highlighted their dedication to workforce enlargement, with over 6,000 employees employed on the mission’s peak in February 2015.
Monetary Misconduct Allegations and Influence
The unique ruling accused CCA of fraud and breach of contract, holding it answerable for BML’s monetary collapse. Key factors of competition included a $54 million buy of the British Colonial resort by CCA, which the courtroom argued exacerbated liquidity points by diverting funds away from Baha Mar’s subcontractors. Moreover, the courtroom criticized a $2.3 million fee to Notarc Administration Group, suggesting it was made to achieve favor with the Bahamian authorities.
Of their protection, CCA sought an emergency keep to delay the judgment’s enforcement. The corporate warned that complying with the judgment might result in insolvency, jeopardizing two different resorts it owns—British Colonial and Margaritaville—together with lots of of Bahamian jobs.
The authorized battle stems from allegations made by Izmirlian, who filed the unique lawsuit in 2017 accusing CCA of participating in “huge fraud” that contributed to the mission’s collapse in 2015. Following the collapse, the Baha Mar resort was bought to Hong Kong-based conglomerate Chow Tai Fook, a key investor in The Star Leisure.
