US Maritime Administration appeals ruling that awarded $367m to Anchorage for breach of contract

In February this year, the Municipality of Anchorage was awarded more than $367m in damages from the US Maritime Administration (MARAD) for failed construction at the Port of Alaska. The judge at the US Court of Federal Claims said in the ruling: “The evidence was clear that the structure left by the Government on Anchorage’s property by MARAD is dangerous, prevents Anchorage from using its property and creates navigational hazards. The evidence was also clear that Anchorage has no choice but to remove the defective structure, and the cost to remove the dangerous structure is clearly recoverable.”

MARAD has now filed a notice of appeal of that ruling.

The case relates to agreements the parties signed in 2003 and 2011. MARAD agreed to provide technical expertise to oversee, design and construct an expansion of the municipality’s port. Dave Bronson, mayor of Anchorage, said in a tweet on February 25 that the damages are due to MARAD’s “design, construction & project management failures.”