Settlement reached in trial of flawed Vegas hotel

A last-minute settlement has avoided trial in a massive breach-of-contract lawsuit involving casino giant MGM Resorts International and six of seven contractors on a never-opened Las Vegas Strip hotel tower. Terms of the agreement announced Tuesday between six of the seven parties in the case were confidential.

“Each party was fairly confident in their legal position, and so it would take a good faith effort and compromise on everybody's part to reach a resolution that they [would] find mutually acceptable,” said Chief Judge Jennifer Togliatti, who served as settlement judge.

Togliatti said it took about 15 months of marathon sessions with both groups to reach a deal.

“It's between the parties and known to them, but just like any case the parties are going to have to accept a compromise to move forward to the businesses that they do,” she said.

Clark County District Court Judge Elizabeth Gonzalez dismissed a jury seated for a trial that was expected to take at least a year.

“They resolved the case. They accepted a resolution that they thought was in the best interest of their clients and their companies, and so everyone is a winner including the jury who didn't have to serve for 15 months to two years,” Togliatti said.

Work on the City Center tower stopped about halfway in 2008, after inspectors found steel used on the first 26 stories wouldn't support the remaining 22 floors.

The rest of the glassy $8.5 billion development opened in 2009.

General contractor Tutor Perini Corp. argued MGM Mirage failed to pay bills.

MGM argued the contractor was responsible for building flaws.


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