Search
 

Harcourt Moves to Dismiss $1B Sullivan Square Suit

LAS VEGAS-An entity of Harcourt Developments of Ireland files to dismiss a lawsuit filed by its local development partner.

By Brian K. Miller | Updated on June 17, 2008

LAS VEGAS-Harcourt Developments of Dublin, Ireland has filed a motion to dismiss a lawsuit filed against it over Sullivan Square–a failed 1,300-unit luxury residential-over-retail project at Durango Drive and Interstate 215. Sullivan Square Harcourt LLC, an entity of locally based Glen, Smith & Glen Development, sued Harcourt’s local entity, Harcourt Nevada LLC, claiming Harcourt failed to perform under a contractual agreement to finance up to $800 million for the project.

The lawsuit alleges that Harcourt and Doherty repeatedly promised to meet its funding requirements but never came through. The lawsuit claims the plaintiffs “never had any intention of performing” under the agreement and, as far back as June 2007, “conspired to, intended to, and, in fact, did exploit [Glen, Smith & Glen], obtaining value for the project through the Plaintiffs efforts, all with the eventually intended result of bankrupting or seriously damaging the Plaintiffs so that the Defendants could assume control of the project for their sole benefit.”

In its motion to dismiss, Harcourt Nevada claims the funding requirement was subject to conditions in the operating agreement that were never met. Specifically, Harcourt says the operating agreement specifies that it would be “solely responsible for providing or arranging all of the financing for any and all projects costs” provided that (1) “funding is available on a reasonable terms in the reasonable opinion of [the members of the LLC]” and (2) “ the terms and conditions of loans to the company and its subsidiaries shall be subject to the unanimous approval of the members.” Those conditions were never met, Harcourt claims.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.