Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8p
ACTION ITEM
Date of Meeting
December 10, 2024
DATE : December 3, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Eileen Francisco, Director, Aviation Project Management
Loren Armstrong, Senior Port Counsel
Pete Ramels, General Counsel
SUBJECT: Commission Authorization to Execute a Settlement Agreement related to the
International Arrivals Facility (IAF) Litigation
Amount payable to the Port:
$28,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a settlement agreement
with the Design-Builder (Clark Construction Group, LLC), which will pay the Port $28,000,000 to
settle the remainder of the Port’s claims against Clark Construction in the pending IAF litigation.
EXECUTIVE SUMMARY
The International Arrivals Facility (IAF) at Seattle-Tacoma International Airport has been in use
since May 2022. However, before completion of the project, the Design-Builder filed a lawsuit
against the Port seeking delay and other damages. The Port filed counterclaims against the
Design-Builder in the litigation for, among other things, liquidated damages for unexcused late
completion, miscellaneous non-conforming and defective work, and a failure by the Design-
Builder to design and build four of the twenty gates on the IAF project to simultaneously
accommodate widebody aircraft usage.
The parties previously executed a partial settlement agreement (approved by the Commission
on May 28, 2024, in Item 8h) that resolved all of the Design-Builder’s claims against the Port
arising out of the IAF project, and it resolved most, but not all, of the Port’s counterclaims against
the Design-Builder.
The Port’s counterclaims that were not resolved by the previous partial settlement agreement
and that were still pending in the ongoing litigation included the Port’s counterclaims related to
the Design-Builder’s failure to design and build four of the twenty gates in the IAF to
COMMISSION AGENDA – Action Item No. 8p Page 2 of 2
Meeting Date: December 10, 2024
Template revised June 27, 2019 (Diversity in Contracting).
simultaneously accommodate widebody aircraft. The current action will approve a settlement of
the Port’s counterclaims that were not resolved by the previous partial settlement agreement.
The resolution is for the Design-Builder to pay the Port $28,000,000.
Commission was briefed on the settlement agreement in executive session.
There are no attachments to this memo.
