Annual Report 2012 - Alaska Department of Law

Transportation
The Transportation Section assists the Department of Transportation
and Public Facilities and other state agencies with transportation and
infrastructure projects and operations. Section attorneys advise the
agencies on everything from construction issues, real property and right-ofway
acquisition and disputes, funding issues, airport and Marine Highway
System operations, legislation and regulations, environmental permitting
and compliance issues, and even media contracts for television shows
like “Ice Road Truckers.” Most of the section’s efforts are spent helping
its client agencies operate effectively within existing legal frameworks.
However, big projects inevitably spawn big disputes, and to protect
the State’s interests, section attorneys regularly engage in both the
administrative dispute resolution process and litigation—such as the fast
ferry case described below.
Fast Ferry Litigation
• Shortly after the fast ferries Chenega
and Fairweather were delivered
to the State, the engines in both
vessels began rapidly degrading.
Despite numerous attempts at repair,
it appears the engine life will be
substantially less than what the State
was originally promised.
• The State sued both the shipyard
that built the vessels and the
engine manufacturer, alleging, in
part, breach of contract, breach of
warranty, misrepresentation, and
unfair trade practices.
• The State is seeking either
replacement engines or recovery of
the cost of replacement, estimated
to be in excess of $30 million.
• The case was delayed after the
shipyard filed for bankruptcy
protection last spring, but trial
against the engine manufacturer is
scheduled for April 2013.
18 Annual Report 2012 ~ Alaska Department of Law