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El-Ad Suffers Setback in Brokerage Fee Lawsuit

LAS VEGAS-El-Ad Properties' motion for summary judgment is denied and its objection to having its owner, Israeli billionaire Yitzhak Tshuva, deposed, is also rejected by the court.

By Brian K. Miller | Updated on July 16, 2008

LAS VEGAS-Some key decisions were handed down last week with regard to locally-based Resort Properties of America’s $12-million lawsuit against El-Ad Properties NY LLC, an affiliate of El-Ad Group, a Tel Aviv-based company owned principally by Israeli billionaire Yitzhak Tshuva. On July 10, US District Judge Larry R. Hicks denied El-Ad Properties’ motion for summary judgment against the plaintiff and also overruled its objection to having Tshuva deposed.

Resort Properties of America, owned by David Atwell, is suing El-Ad for the 1% brokerage fee he believes he is owed for helping to initiate El-Ad’s $1.2-billion acquisition of the former New Frontier casino property on the Las Vegas Strip from Wichita billionaire Phil Ruffin, who owned the property with Margaret Elardi.

Atwell alleges he brought Tshuva and Ruffin together in New York in June 2006 to discuss a deal. Ruffin ultimately rejected the first offer but Tshuva then personally contacted Ruffin and ultimately flew to Wichita with his wife to meet with Ruffin and resurrect the deal, which he successfully did, according to depositions of key players.

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