Federal appeals court overturns $367M award to Anchorage in lawsuit over faulty port construction

Anchorage Daily News
By Emily Goodykoontz

A federal appeals court panel has overturned a previous decision that awarded more than $367.4 million to the Municipality of Anchorage in its lawsuit against the federal government over failed construction work at the Don Young Port of Alaska.

In an opinion issued Monday, a panel of judges with the U.S. Court of Appeals for the Federal Circuit partially rescinded a 2021 ruling that a federal claims court judge had made in the municipality’s favor and slashed damages awarded to just $11.3 million.

“This is a disappointment, and we are continuing to consider appropriate next steps,” Mayor Suzanne LaFrance said during her opening remarks at Tuesday night’s Assembly meeting.

Anchorage entered a memorandum of agreement with the federal Maritime Administration, or MARAD, back in 2003 to overhaul the facility. The city later discovered much of the work done by subcontractors had been botched.

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