The federal court has approved a settlement between the Commonwealth Ports Authority and Texas-based contractor Leo A Daly Co. to resolve CPA’s $1-million lawsuit for a defective Tinian airport project.
U.S. District Court for the NMI designated judge Frances Tydingco-Gatewood issued the order on Friday after reviewing the filings in the case.
A check with court files showed that as of Friday afternoon, the settlement agreement was still sealed.
CPA, through counsel Matthew Gregory, and Leo A. Daly, through counsel Robert O’Connor, appeared at the hearing for their joint motion to have the settlement approved.
Attorney Colin Thompson also appeared at the hearing for his client, civil engineer William S. Hofschneider, who, along with AIC Marianas, was sued by Leo A. Daly, in turn, as third-party defendants.
Thompson told the court that Hofschneider had not been released from the case. O’Connor explained that the parties would be able to resolve the issue against Hofschneider within a week whether or not to release the only pending defendant.
CPA filed the lawsuit in February 2012 against Leo Daly for the allegedly faulty construction of the Tinian airport’s departure terminal. Leo Daly then filed a third-party complaint against AIC Marianas.
Leo Daly got the contract in 2003 for $399,000. Leo Daly designed the West Tinian Airport facilities improvement and provided construction management services during construction. It completed its services in December 2008.
CPA contracted AIC Marianas in 2004 for general construction contracting services. In 2005, Leo Daly subcontracted Hofschneider for the construction management services that Leo Daly had agreed to provide CPA.
In 2009, the CNMI government also sued Leo Daly due to the defective design of the Commonwealth Health Center’s dialysis center. The parties reached a $2-million settlement in 2010.