Wikinvest Wire

CityCenter contractor to file $492 million suit

Saturday, March 13, 2010

The Las Vegas Sun reports that the $8.5 billion white elephant otherwise known as MGM Mirage/Dubai World's CityCenter project will soon be the proud owner of a nearly half billion dollar "mechanics' lien" as, apparently, some bills are going unpaid.

MGM Mirage said it would dispute the claimed amount and also signaled it has counterclaims over construction defects at the Harmon Hotel part of the project, where construction has been suspended. When work resumes, it's scheduled to be completed at 28 floors, rather than the planned 49 floors.

"CityCenter believes that its actual obligation to the general contractor is substantially less than the amount claimed and that it is also entitled to significant offsets against the claimed amount. CityCenter intends to pursue all of its rights and remedies against the general contractor, including arbitration,'' MGM Mirage said in a regulatory filing.

"While CityCenter’s investigation into the general contractor’s potential liability regarding the Harmon Hotel is continuing, and there can be no assurance at this point as to the ultimate outcome of any action CityCenter may undertake, CityCenter believes that the amount of its claim against the general contractor may exceed the amount of CityCenter’s estimated remaining liability to the general contractor,'' MGM Mirage said in its filing.
There's a bit more detail at the LV Sun and in this report from Reuters - it seems this is not the first time that paying the bills has been a problem for CityCenter managers.

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John S said...

At least the lawyers will get rich. This claim and counterclaim will still be in litigation years after the city of Las Vegas has been abandoned and returned to the desert.

Anonymous said...

John... so true... what a funny comment the lawyers will get rich yes because both parties will be wasting alot of time paying legal fees than using that money to pay someone back what they owe and so forth... Don't people know to wait and sue someone after you have already been paid most of the money??? Don't think you will get paid at all if you were to quick to initiate a lawsuit!

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