Dynamic Engineering loses $242M breach of contract suit against gov’t

Finding no evidence of breach of contract, High Court Judge Sandra Kurtzious last Monday dismissed a $242 million lawsuit filed against the government by Dynamic Engineering Construction Company Limited.

This is according to a release from the Attorney General’s (AG) Chambers, which had been named a respondent in the action, along with the former Ministry of Public Infrastructure.

The release detailed that Dynamic Engineering, in its statement of claim, alleged that the previous A Partnership for National Unity + Alliance for Change (APNU+AFC) administration had breached an agreement with it to design and construct the Kurubrong Bridge as part of the Amaila Falls Hydro Electricity Project.

The release said that the construction of the bridge was part of a larger body of works aimed at completing the Amaila Project which had been proposed by the previous People’s Progressive Party/Civic (PPP/C) government in 2009.

According to the release, however, in 2016 the project was abandoned by the APNU+AFC, which cited financing concerns.

Dynamic Engineering, the release said, then claimed that the government breached the contract after the Ministry of Public Infrastructure sent a notice ordering it to halt all works.

According to Attorney General Anil Nandlall SC, counsel for the state argued, among other things, that the contract had not been breached, while advancing that Dynamic did not provide evidence of the loss, loss of profit, or other damages.

The AG said that as they had argued, Justice Kurtzious on Monday ruled that there had been no breach of contract by the government and accordingly dismissed Dynamic’s action—imposing against it court costs in the sum of $75,000, which it has to pay to the state.

Dynamic had been claiming for damages in excess of $121,000,000 million for breach of contract, loss of profit and loss damage;

It was also seeking the sum of $121, 879,552 million for loss of profit and other loss or damage.

It also wanted to be paid interest at a rate of 6% per annum from the date of filing to the date of judgement and at a rate of 4% per annum until fully paid, in accordance with the Law Reform (Miscellaneous Provisions) Act.