Law, disrupted
Law, disrupted is a podcast that dives into the legal issues emerging from cutting-edge and innovative subjects such as SPACs, NFTs, litigation finance, ransomware, streaming, and much, much more! Your host is John B. Quinn, founder and chairman of Quinn Emanuel Urquhart & Sullivan LLP, a 900+ attorney business litigation firm with 29 offices around the globe, each devoted solely to business litigation. John is regarded as one of the top trial lawyers in the world, who, along with his partners, has built an institution that has consistently been listed among the “Most Feared” litigation firms in the world (BTI Consulting Group), and was called a “global litigation powerhouse” by The Wall Street Journal. In his podcast, John is joined by industry professionals as they examine and debate legal issues concerning the newest technologies, innovations, and current events—and ask what’s next?
Law, disrupted
Inside $1.6 Billion Judgment Against China Construction America
John is joined by Jacob Buchdahl, partner at Susman Godfrey. They discuss the landmark $1.6 billion judgment Jacob recently won in New York state court on behalf of BML Properties against China Construction America, Inc. (CCA). The case concerned allegations of fraud and breach of contract over the failed development of the Baha Mar Resort, a luxury property in the Bahamas. Jacob explains that BML Properties envisioned the Baha Mar Resort as a competitor to the Atlantis resort in the Bahamas. Following the 2007 financial crisis, BML secured funding from a Chinese policy bank, which required hiring CCA as the contractor as part of China’s Belt and Road initiative. CCA, a subsidiary of the state-owned China State Construction Engineering Corporation, also became an investor in the project. The relationship soured as construction delays mounted, culminating in late 2014 when CCA promised that the resort would open in March 2015. Relying on these assurances, BML incurred significant expenses to prepare for the opening. However, internal CCA documents obtained during discovery showed that CCA knew it could not meet the deadline and withheld this information. Worse, the documents suggested CCA intentionally delayed completion to maintain leverage over BML, leading to a liquidity crisis, bankruptcy, and the loss of BML’s $800 million investment. Jacob explains his legal strategy, including narrowing the case to focus on fraudulent acts at the critical late stages of the project and contractual breaches that were clearly distinguishable from the fraud allegations. He explains that the trial featured crucial evidence from internal communications and expert testimony on damages and financial mismanagement. He also explains that the judgment is nearly twice BML’s damages because of New York’s high pre-trial interest rates. Despite CCA’s appeal and potential bankruptcy, Jacob remains optimistic about enforcing the judgment and securing justice for his client.
Podcast Link: Law-disrupted.fm
Host: John B. Quinn
Producer: Alexis Hyde
Music and Editing by: Alexander Rossi
