Nebraska corporation settles contractor’s lawsuit

Leo A. Daly Co., a Nebraska corporation that designed and built the defective terminal addition project at the Francisco C. Ada-Saipan International Airport, has settled the lawsuit filed against it by its contractor in federal court.

According to court documents, Leo A. Daly Co. and the Boeing Company have settled the lawsuit.

The settlement conference was held before U.S. District Court Magistrate Judge Kevin S. C. Chang last July 10.

According to the minutes of the conference, the parties will be signing the settlement documents early this week.

The parties are expected to drop the lawsuit in 21 days.

Boeing Service Co. is a wholly-owned subsidiary of the Boeing Co., 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 Co. 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 Co., or LAD, under which LAD was responsible for both the design and construction management of the project.

Boeing Co. and Boeing Service Co. are now suing LAD 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 U.S. District Court for the NMI to hold LAD 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 LAD refused to fix the structure, to settle the parties’ dispute, or to reimburse Boeing for the damages caused by LAD’s errors.

Frink said as a result of LAD’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.

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

LAD is not responsible for the conduct, said Kirby in LAD’s answer to Boeing Co.’s and Boeing Service Co.’s lawsuit against LAD.

Kirby said any injuries or damages allegedly sustained by Boeing were caused solely by Boeing’s own negligence and/or breaches of contract or inactions.

Last August, U.S. District Court for the NMI designated Judge J. Michael Seabright dismissed CPA’s lawsuit against Boeing after the parties reached a settlement that has been approved by the Superior Court.

Seabright, however, ruled that Boeing’s lawsuit against LAD, 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.