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Federal Circuit narrows $367M award in Port of Alaska case; administration says Port Modernization Program financing still viable
Summary
The Federal Circuit largely vacated a 2021 $367 million award to the Municipality in litigation over the Port of Alaska, sustaining an $11 million damages theory and remanding other claims; municipal manager Becky Winpearson said the Port of Alaska Modernization Program (PAMP) has alternative federal and state funding and legal options will be discussed in executive session.
Becky Winpearson, the municipality’s municipal manager, briefed the body on a Federal Circuit appellate decision that scaled back a 2021 trial‑court award in the Municipality of Anchorage’s litigation against the United States related to the Port of Alaska.
Winpearson said the three‑judge panel “largely vacated the trial court’s decision” that previously awarded about $367 million in damages, and that the court nonetheless upheld an alternate contract theory that the administration expects will result in an $11 million award. She emphasized the decision remands some preserved breach theories for further consideration, and cautioned the remand means the litigation will continue. “So the short story is it means more litigation,” Winpearson said.
On procedural options, Winpearson told members the municipality can ask for an en banc rehearing by the full Federal Circuit panel or pursue alternate arguments at the trial court (the Court of Federal Claims) on remand. The administration plans to discuss legal strategy and preserve arguments in a January 10 executive session with the legal team present.
Winpearson sought to reassure members about the Port Modernization Program’s finance plan. She said the administration had included the $367 million award as a potential component of its finance strategy but had not relied on the award as a required funding source for work already underway. Winpearson listed other funding to be included in a revised January plan of finance: $168.7 million in federal funding and $348.5 million in state funding that staff have identified to date. She said the administration will release an updated finance plan in January outlining options to proceed.
Members expressed support for continuing the Port Modernization Program and urged an aggressive legal posture; Winpearson confirmed the administration will continue to pursue litigation and other remedies while pressing forward on PAMP financing and project work. The body will receive a fuller legal briefing in executive session on January 10.
No formal action was taken in open session; Winpearson recommended that substantive legal questions be discussed in executive session with counsel.
