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Appeals court reverses $367M award initially granted to Anchorage over faulty port work

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Appeals court reverses 7M award initially granted to Anchorage over faulty port work


ANCHORAGE, Alaska (KTUU) – A panel of federal judges on Monday partially pulled damage awards from a 2021 ruling centered on a Municipality of Anchorage lawsuit against the federal government surrounding faulty construction work at the Don Young Port of Alaska.

The U.S. Court of Appeals for the Federal Circuit opinion, published on Dec. 16, slashes the Municipality of Anchorage’s initially-awarded $367.4 million to a little more than $11 million, more than three years after the court first issued a decision over the suit that sought to prove the United States breached two contracts with the municipality for port improvements.

“This is a disappointment,” said Anchorage Mayor Suzanne LaFrance, who spoke briefly on the published opinion at the most recent meeting of the Anchorage Assembly, calling the decision “unexpected news” on Tuesday night.

“We are continuing to consider appropriate next steps,” she said, adding that the municipal manager “will brief members later this week.”

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The court opinion largely vacates the 2021 U.S. Court of Federal Claims decision but hinges in large part on action from two decades prior, in which the Municipality of Anchorage and the federal government agreed to upgrades and expansions at the aging Port of Alaska.

As referred to in court documents, the municipality and federal government entered into a 2003 Memorandum of Understanding and, later, a supplementary 2011 Memorandum of Agreement, for those improvements to the port. The same documents show the Maritime Administration (MARAD) contracted with Integrated Concepts and Research Corporation (ICRC) in 2003, which in turn subcontracted with others, to complete the project.

“Problems with the project were discovered during a third-party inspection in 2010, when ‘large-scale damage was found in the installed sheet piles,’” according to court documents, “which protect an excavated area from earth and groundwater.

“While ICRC and its subcontractors performed the work, Anchorage ultimately blamed the project issues on MARAD, alleging that MARAD failed to ‘develop project management or inspection protocols,’” according to the opinion, “and ‘abdicated its responsibilities’ to oversee the project.”

These issues precipitated the 2011 agreement, which was designed in part to redefine responsibilities for the project as a whole, with adjustments to oversight including the development of the Port Oversight and Management Organization.

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That same year, however, a subcontractor of the ICRC alleged its work was not being appropriately reimbursed. Without consulting the municipality first, MARAD eventually settled, paying ICRC $11,279,059, court documents show.

In March 2013, the municipality filed its lawsuit against multiple parties – among them, the ICRC and subcontractors – over the “deficient work” at the port, which was settled. The next year, Anchorage filed suit against the federal government in the Court of Federal Claims, claiming MARAD had breached both the 2003 and 2011 memorandums.

On Dec. 9, 2021, the court eventually sided with Anchorage and against MARAD. It also found that the municipality proved its entitlement to claim damages in full, totaling $367,446,809, the following February.

The Court of Appeals, in its opinion this week, affirmed the U.S. Court of Federal Claims determination that the 2011 agreement was breached, given the $11.3 million in subcontractor claims were settled without the municipality’s approval.

However, the appeals court said a “defect-free port” was never required as part of the agreement from 2003, and vacated that portion of the federal claims court’s decision. This cut the damages awarded to Anchorage by more than $169.5 million, as part of the value of the structure the municipality “expected but did not receive”; and nixed an additional $186,607,000, as part of anticipatory costs associated with fixing defects in the existing structure at the time.

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The overturning of this decision pulls a large portion of the funding dedicated for port upgrades, marking the latest in the saga of the years-long modernization project for the port.

According to the port’s website, the Port of Alaska Modernization Project, created in 2014, is meant to support the port continuing to serve as the state’s key inbound cargo gateway, an operation site for national defense infrastructure, and a supporter of consumer goods and emergency needs. Recent data from the port shows imported cargo that moves through the port reaches about 85 percent of all Alaskans.

The next phase of the modernization project is expected to cost up to $2 billion.

Read the full opinion from the Court of Appeals here.

See a spelling or grammatical error? Report it to web@ktuu.com.

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Opinion: Life lessons learned from mushing and old-time Alaska

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Opinion: Life lessons learned from mushing and old-time Alaska


A steel arch commemorating sled dog racing was installed over Fourth Avenue in downtown Anchorage in November 2025. (Marc Lester / ADN)

This is the beginning of the Iditarod spring, signaled by the burst of sun and what used to be the long wait for dog teams to pass under the arch in Nome, the finish line a thousand miles away from Anchorage. For old-timers, it’s the story of the way Alaska used to be. What once was a 30-day wait has become about 10 days for winners to celebrate and the rest of us to shout, “Well done.”

My story is about family that welcomed immigrants from all over the world to be among the last groups of Indigenous people in the country, a life of taking good care of dog teams, and of parents who taught their children how to live in a wild, rugged frontier.

I came to be in a different age, a time of dog teams that ruled the trails to mining camps and where the salmon ran strongest — before the introduction of the snowmachine that revolutionized rural and Native Alaska.

For the Blatchford family, it is a recognition that some things will always stay the same and everything else changes. All four of my grandparents were noncitizens. My mother Lena’s parents of Elim were Alaska Natives, as was my dad Ernie’s mother, Mae, of Shishmaref. The name Blatchford comes from his father, the Englishman who was born in Cornwall and arrived in Nome during the gold rush. His brother, William, was one of the early immigrants, and by 1899 there was a creek just outside Nome named after him. He discovered gold. My grandfather, Percy, found gold, too, but it was a different kind of wealth, a finding that he had found home and never left.

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I was born in Nome, delivered by an Iñupiaq Eskimo midwife in a one-room cabin where the frozen Bering Sea met the treeless tundra’s permafrost. Dad had a dog team. I like to think that the dogs were anxious for me to be born because it was hunting time for Dad to hitch them up and mush out to where the sea mammals, snowshoe hares, ptarmigan and other game thrived in the winter. My earliest memories are of dogs; all of them working as a team to bring home the game so we could have a fine meal cooked by Lena. In the Arctic, dogs were essential for family survival. If you didn’t hunt, you didn’t eat.

There are several memories that remain strong. I suppose I can call them lessons of the Arctic.

The first is to take care of the dogs and treat them well. Dog lovers all over the world know very well that a dog, whatever the breed, is loyal and will die to protect the one who feeds and pets it. If you don’t feed a husky, it won’t pull, and it could mean a long time before the family eats. When a dog team is hungry, it will race back home to be fed a healthy meal. Mother Lena must have been a great cook because Dad said the dog team always raced back to the edge of Nome, where Lena was waiting beside the propane stove. For Mike, Tom and me, our job was to take the rifle, shotgun and .22 into the cabin to be cleaned and oiled. Once that was quickly done, we unhitched the dogs and then fed the team.

All three of us boys had special responsibilities to Tim, Buttons and Girlie. Tim, the lead dog, was brother Mike’s pet; Tom had Buttons, and I had Girlie. We made sure they were healthy and well cared for. Dad would often comment that “Papa,” our grandfather Percy, the Englishman, took good care of his dog teams, being kind to the dogs and feeding them. Dad was the oldest of a large family that lived in Teller and later Nome.

“Papa” Percy was a prospector, fox farmer and a contestant in the All-Alaska Sweepstakes, the dog team race from Nome to the mining camp of Candle, a 400-mile race. He didn’t win, but he finished well, very well. The stories of the Sweepstakes have remained with the family for over a century. At a memorial service in Palmer for “Doc” Blatchford, Aunt Marge, without a question or a prompt, said that Papa took good care of his dogs.

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Percy Blatchford was a legend in the Alaska Territory. As a teacher of Alaska newspapers, I would find headlines similar to one in the Fairbanks Daily News-Miner that blazed on the front page: “Blatchford Wins Solomon Derby.” There was even a story in The New York Times.

There’s probably no other sport in Alaska that brought Alaskans together like dog mushing. When old-timers would visit over strong coffee, dogs and dog team racing would come up. In the territory, there were few high schools and fewer gymnasiums, so the only team sport was dog mushing. It was something to talk about that was unique to Alaskans.

I used to travel in rural Alaska quite a bit. In the smaller communities, I would see the teams and would wonder how long they would power the engines that brought the mail and the foodstuffs down and up the trails. When I think of dog teaming, I think of the Iditarod and wonder, and then come to know, what the strength of the story would mean for bringing generations together from Papa Blatchford to his eldest son Ernie and to the fourth generation of Blatchfords in Alaska.

There are times when I think that old-time Alaska is gone. But then my faith and confidence in the old-time spirit are ignited when I see what others in the Lower 48 see. When I was walking in downtown Philadelphia, I looked up and saw on an ancient federal building a stamped concrete sculpture of a dog musher leaning into a blizzard. Such is the way I think of the Iditarod and the lessons I learned growing up with the dog team, preserved in my memories.

Edgar Blatchford is former mayor of Seward, Mile 0 of the Iditarod Trail.

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These lines are adding Alaska cruises. Is your favorite on the list?

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These lines are adding Alaska cruises. Is your favorite on the list?



New Alaska voyages debut in 2026 as lines like MSC Cruises and Virgin Voyages expand into the booming market.

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Travelers will have new ways to see Alaska this year.

A number of cruise lines are launching sailings to the Last Frontier in 2026, from luxury to large family-friendly and adults-only ships. About 65% of people visiting the state during the summer do so by cruise ship, according to Cruise Lines International Association Alaska, and demand is high.

“I think Alaska is always very popular, but we’re seeing that ships are selling out way quicker than they used to,” Joanna Kuther, a travel agent and owner of Port Side Travel Consultants, told USA TODAY. 

With new inventory opening up this season, here’s what travelers should know about Alaska cruises.

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Which cruise lines are adding Alaska sailings?

  • MSC Cruises will launch its first-ever Alaska sailings aboard MSC Poesia on May 11. The ship will be fresh from dry dock to add enhancements, including the line’s luxe ship-within-a-ship concept, the MSC Yacht Club.
  • Virgin Voyages’ newest ship, Brilliant Lady, will operate the company’s inaugural Alaska cruises. The adults-only cruise line will set sail there starting on May 21.
  • The Ritz-Carlton Yacht Collection will debut its first Alaska cruises this year on its Luminara vessel. The first of those sailings will depart on May 28.

Those join other operators like Holland America Line, Princess Cruises, American Cruise Lines, Norwegian Cruise Line, Royal Caribbean International, Disney Cruise Line, Celebrity Cruises and more.

What are the draws of Alaska cruises?

Glaciers are a major attraction for visitors. “One of the major (draws) is Glacier Bay,” said Kuther. “…And then the other one is definitely the wildlife.”

That includes bears, whales, moose and salmon. In addition to its many natural wonders, the state is also a cultural destination where visitors can learn about its Native peoples.

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When is the best time to take an Alaska cruise?

That depends what you’re looking for. The Alaska cruise season generally runs from April through October, and Kuther said visitors will tend to see more wildlife between the end of June through August.

“That’s super peak season,” she said. “That’s also where you’re going to have more families, more crowds.” Some locals have also said those crowds are putting a strain on the very environment tourists are there to see.

Travelers may find less packed ships and ports by visiting earlier or later in the season – and there are other perks. If passengers go in May “it’s still a little bit snowy, so your scenery is going to be really cool,” Kuther said. Travelers visiting in September or October, meanwhile, could have a better shot at seeing the northern lights.

Where do ships usually sail?

The most popular itinerary is the Inside Passage, according to Kuther. That often sails round-trip from Seattle or Vancouver with stops such as Juneau, Skagway and Ketchikan. “People will go back to Alaska and do different routes,” she said. “This is a very good way to start.” 

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Other options include one-way cruises between Vancouver or Seattle and Anchorage. Travelers can also take cruisetours that combine sailings with land-based exploration, including train rides and tours of Denali National Park and Preserve.

Tips for Alaska cruises

  • Book early: Alaska itineraries sell out quickly, and so do shore excursions. Unique offerings like helicopter tours and dog sledding are popular, and there are only so many spots.
  • Consider a balcony cabin: This is “almost a must” in Kuther’s opinion. Crew members may make announcements about whales or other sightings near the ship, and guests with their own private viewing spot won’t have to race out on deck.
  • Pack carefully: “Packing is an art when it comes to Alaska,” Kuther said. “It really is, because you need so many things.” Her top three picks are bug spray, layers of clothing for the fluctuating temperatures and a waterproof jacket in case of rain.

Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.



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Alaska lawmakers push Trump administration to waive $100k visa fee for international teachers

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Alaska lawmakers push Trump administration to waive 0k visa fee for international teachers


Some Alaska school districts say they can’t afford to hire and retain international teachers after the Trump administration hiked fees for highly skilled worker visas.  Alaska school districts have increasingly hired international teachers through the H-1B program amid an ongoing teacher shortage. Until last September, the annual fee for such visas was $5,000 per person. […]



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