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Harmon Hotel Lawsuit Settled

By Chuckmonster on Tuesday, 16th December 2014 12:21pm
  » filed under Las Vegas  comments: 6


Ending what would've been years of litigation, lawyers representing Harmon Hotel owners MGM Resorts International and building contractor Perini have settled their lawsuit over the botched construction of CityCenter boutique hotel as it is slowly being dismantled.

The lawsuit stems from construction defects discovered in 2008, which led to the cessation of construction and eventual condemnation in 2010, a story VT broke. Terms of the settlement are confidential, but we can guess that Perini paid out the yin yang.

For historical context, might I link to MGM's admission that construction at Veer and Harmon was botched and evidence that Mandarin may have been botched as well (complete with MGM PR response)..

Can we now say, without hesitation, that Jim Murren's urban planning dream of building a city within a city - where casino workers will bunk up near tourists and take the City Center Choo Choo to buy certified free trade organic GMO free quinoa at Whole Foods together - concept was a complete failure?

Tagged: harmon   murren   failure   demolition   lawsuits   city center   


Comments & Discussion:

Here's a little something from the RJ:
"shortly after the settlement was announced, MGM Resorts filed a notice with the Securities and Exchange Commission saying the company would pay a total of $173 million to resolve the lawsuit, with $20 million going to CityCenter and $153 million to Perini."

Here's the entirety of the 8k filing:

On December 12, 2014, MGM Resorts International (the “Company”) and CityCenter Holdings, LLC (“CityCenter”), which is 50% owned by a wholly owned subsidiary of the Company and 50% owned by Infinity World Development Corp (a wholly owned subsidiary of Dubai World), entered into a Settlement Agreement with Perini Building Company, Inc. (“Perini”), general contractor for CityCenter, the remaining Perini subcontractors and relevant insurers to resolve all outstanding project lien claims and CityCenter’s counterclaims relating to the Harmon Hotel and Spa (“Perini Settlement Agreement”). The settlement is subject to execution of a global settlement agreement by all parties by December 31, 2014 and CityCenter’s procurement by January 15, 2015 of acceptable insurance to replace the general liability policies which comprised the Owner Controlled Insurance Program for construction-related and workers compensation claims (which replacement insurance costs are not included in the settlement amounts reported herein).
The Perini Settlement Agreement, combined with prior Harmon-related insurance settlement proceeds of about $85 million, will result in total settlement proceeds to CityCenter of approximately $195 million on its Harmon construction defect claims, approximately $20 million of which will be a Company contribution pursuant to the third amended and restated completion and cost overrun guarantee (“Completion Guarantee”), among other sources of funds. Under the Perini Settlement Agreement, together with previous settlement agreements relating to the non-Harmon related lien claims, the Company has made or will make cash payments of approximately $153 million to Perini to resolve the non-Harmon-related lien claims, which is also a Completion Guarantee obligation. The Company’s obligation will be offset by the $72 million of condominium proceeds received and held in escrow by CityCenter, which are available to fund construction lien claims upon final resolution of the Perini litigation. The Perini Settlement Agreement, together with previous settlement agreements relating to the non-Harmon related lien claims, resolves all of Perini’s and the subcontractors’ lien claims against CityCenter, MGM Resorts International Design (formerly known as MGM MIRAGE Design Group) and certain direct or indirect subsidiaries of CityCenter, and all of CityCenter’s claims against Perini and the Harmon subcontractors. The Perini Settlement Agreement was entered into solely by way of compromise and settlement and is not in any way an admission of liability or fault by the Company or CityCenter.

This is a settlement not a legal finding, but it looks like MGM is saying "Oops, sorry, Perini, didn't mean to muddle your good name there, sorry about whatever it was we did to fuck up this project. But, hey! At least we don't have MORE rooms unfilled in this damn economy!"

Although this could be unpaid bills that MGM refused to pay because things were botched, and MGM previously withheld a whole heckalot (in infernal units, which btw is less than a cubic buttload).

^ well put as always sir.

I stiil say they should have made marbles out of the Harmon glass and gave them away as trinkets.

being that the payments are for non-Harmon work it seems more likely that MGM never paid Perini for the rest of the work they did on CC. In turn Perini is kicking in some amount of money that, when mixed in with the rest of the Harmon claims, amounts 195 million to be paid back to MGM and Dubai World. Or something like that. Gotta love LLC law. @_@

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