A U.S. judge ordered a new trial late Thursday of a court case that ate away Aliso Viejo-based Fluor’s Corp.’s second-quarter profits.
A District Court Judge in New York granted a motion by Fluor’s Caribbean unit for a second trial in a dispute with the developer of a resort hotel in the Cayman Islands.
In June, a jury came back with a $28.8 million verdict against Fluor. At the time, the company recorded a charge of $60 million to cover the verdict, interest and legal fees.
The charge turned a profit into a $16.4 million loss for the second quarter.
The granting of a new trial sets asides the verdict, Fluor said. The company said it doesn’t plan to restate its second-quarter results pending the new trial.
Fluor Daniel Caribbean Inc. was the general contractor on a Ritz-Carlton resort project for Humphrey’s Cayman Ltd. in the Cayman Islands.
Company officials said they halted work on extra facilities the developer added to the project. Fluor said the developer failed to show adequate funds to pay for the work.
The company continued the original contract base work, according to Fluor.
In early 2004, Fluor filed suit to force collection of invoices for work the company already had performed.
Fluor plans to move its headquarters from Aliso Viejo to the Dallas area next year.
