Federal judge dismisses suit over defective airport terminal project

The federal court on Thursday dismissed a contractor’s lawsuit against Leo A. Daly Company, a Nebraska corporation that designed and constructed the defective terminal addition project at the Francisco C. Ada International Airport.

U.S. District Court for the NMI designated Judge J. Michael Seabright approved the parties’ stipulation for dismissal with prejudice of all claims in the lawsuit filed by Boeing Company.

Dismissal with prejudice means Being Company cannot re-open the case anymore.

Chicago, Illinos-based attorney Michael B. Slade signed the request for dismissal on behalf of the Boeing Company and Boeing Service Company.

San Francisco-California-based attorney Nicholas Merrell signed the request for dismissal on behalf of defendant Leo A. Daly Co.

The parties recently informed the court about their settlement. They did not disclose the terms of the settlement.

Boeing Service Company is a wholly-owned subsidiary of the Boeing Company, a Delaware corporation that is reportedly the world’s largest aerospace company and a leading manufacturer of commercial jetliners and defense, space, and security systems.

Boeing Company worked closely with the federal government to implement upgraded security systems following the terrorist attacks of Sept. 11, 2001.

The Commonwealth Ports Authority contracted with Boeing to procure the design and ultimate construction of the terminal addition project.

Boeing entered into subcontracts with Leo A. Daly Company under which Leo A. Daly was responsible for both the design and construction management of the project.

Boeing Company and Boeing Service Company later sued Leo A. Daly for breach of contract, express contractual indemnity, implied contractual indemnity, professional malpractice, negligence, violation of CNMI Consumer Protection Act, violations of Building Code, bad faith, and contributions.

Boeing asked the court to hold Leo A. Daly liable to pay them over $5 million in damages, and reimburse them of all costs and attorneys’ fees.

Boeing counsel Sean Frink stated that Boeing had no choice but to file the lawsuit because Leo A. Daly refused to fix the structure, to settle the parties’ dispute, or to reimburse Boeing for the damages caused by Leo A. Daly’s errors.

Frink said as a result of Leo A. Daly’s negligent and deficient design, CPA issued a demand to Boeing, asking Boeing to tear down and rebuild the project and pay CPA millions of dollars in damages and attorneys’ fees.

Leo A. Daly, through counsel Patrick J. Kirby, said any injuries or damages allegedly sustained by Boeing Company and Boeing Service Company in the project were caused solely by the conduct of third persons, entities, or parties.

Last August, Judge Seabright dismissed CPA’s lawsuit against Boeing after the parties reached a settlement that has been approved by the Superior Court.

Seabright, however, then ruled that Boeing’s lawsuit against Leo A. Daly, which is also pending before the federal court, will continue.

In its lawsuit, CPA asked the court to order the defendants to pay in excess of $1 million for damages, courts costs, and attorney’s fees.