New York Appellate Court Affirms Decision to Deny Motion to Compel Arbitration in Multi-Billion Dollar Construction Dispute

BML Properties Ltd. v. China Construction America Inc., et al., 101 N.Y.S. 3d 597 (N.Y. App. Div. 2019)

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R. Zachary Torres-Fowler
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Ryan R. Deroo

On July 2, 2019, a New York appellate court upheld a lower court ruling by Justice Saliann Scarpulla, denying a state-backed Chinese contractor’s attempt to compel international arbitration arising out of a dispute involving the construction of the multibillion Baha Mar mega-resort in the Bahamas.  As a result of the ruling in BML Properties Ltd. v. China Construction America Inc., et al., 101 N.Y.S. 3d 597 (N.Y. App. Div. 2019), aff’ing No. 657550/2017 (N.Y. Sup. Ct. Jan. 24, 2019), the $2.25 billion lawsuit alleging “one of the largest construction-based frauds in this hemisphere” will remain in the New York courts.  As explained below, for those in the international construction industry, the case will be worth following.

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New Conventions, New Problems?: A Pair of Recently Announced International Conventions Aim to Replicate the Success of the New York Convention

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Zachary Torres-Fowler

As many owners and contractors involved in the international construction industry are aware, international arbitration is a popular dispute resolution device for international construction disputes because, in part, international arbitration awards are, broadly speaking, enforceable in practically every jurisdiction in the world. This facet of international arbitration has been set out in the U.N. Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) — a multilateral convention that requires the courts of the contracting states to recognize and enforce arbitration awards made by tribunals seated in other contracting states. Now, with 160 signatory states and the increasing popularity of international arbitration around the world, the New York Convention is widely viewed as one of the most successful international conventions ever.

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Florida Court of Appeals Permits Successor-In-Interest to Pursue Claims Originally Thought to Be Barred by Settlement Agreement

MBlock Investors, LLC v. Bovis Lend Lease, Inc., etc., et al., 44 Fla. L. Weekly d1432 (3d DCA 2019)

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Sophia L. Cahill

A Florida Appellate Court recently reversed a trial court’s decision granting summary judgment finding an issue of fact based upon an expert affidavit.  The underlying matter involved an action by MBlock Investors against Lend Lease (US) Construction, Inc. for latent defects following MBlock’s acquisition of a property commonly known as the Midblock Miami East Project (the “Property”).

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