Fluor Corp. said Tuesday that it has agreed to settle a dispute with the developer of a resort hotel in the Cayman Islands.
A couple of weeks after a judge in New York granted a motion for a second trial, Aliso Viejo-based Fluor said it will reverse $34 million of a $65 million charge the engineering services company already has taken. The initial charge covered the original jury award, estimated attorney fees and interest, and accounts receivable.
The impact of this reversal was not included in Fluor’s third-quarter earnings guidance.
In June, a jury came back with a $28.8 million verdict against Fluor related to its general contractor work on a Ritz-Carlton resort for Humphrey’s Cayman Ltd. At the time, the company recorded a charge of $60 million to cover the verdict, interest and legal fees.
The granting of a new trial set aside the verdict, Fluor said.
The settlement agreement calls for neither side to take liability in the case, “and the action has been dismissed with prejudice,” Fluor said in a statement.
