Earlier this month, having already dismissed claims against the individual Irish defendants, Eighth Judicial District Court Judge Mark Denton dismissed the counterclaims against the individual local plaintiffs, leaving only entities in the litigation. Attorneys for both sides tell GlobeSt.com that the case is now shifting from pleadings to discovery.

Generally speaking, the defendants agreed to provide all funds for the development and construction of Sullivan Square in exchange for a 60% interest in the development partnership. GSG's lawsuit contends that Harcourt "conspired to, intended to, and, in fact, did exploit [GSG], obtaining value for the project through [GSG's] efforts, all with the eventually intended result of bankrupting or seriously damaging [GSG] so that [Harcourt] could assume control of the project for their sole benefit."

"Harcourt denies the allegations, saying its commitment to fund was based on being able to obtain construction financing for the project at commercially reasonable terms, terms which became unavailable in 2007 due to the lack of sales and the deteriorating market conditions. In its counterclaim, Harcourt alleges that the plaintiffs and the individuals behind them conspired to lie about the pace of condominium sales and made multiple poor decisions that Harcourt claims cost the project tens of millions of dollars. Specifically, Harcourt claims that GSG entered into an exclusive listing agreement Viridian Group LLC, which Harcourt claims never existed and was a "false front" for GSG principal Ken Smith and his spouse, Dale Rowse.

Judge Denton this month dismissed the counterclaim against the individual plaintiffs but did not dismiss the counterclaims against the entities. He also denied Harcourt Development's motion to dismiss GSG's complaint altogether for lack of jurisdiction. Earlier, he dismissed the claims against the individual Ireland-based defendants, but not the defendant entities the individuals were operating.

As a result, the defendants to the complaint are now Harcourt Project Management and Harcourt Development, the two Dublin-based entities, and Harcourt Nevada, their local affiliate, while the plaintiffs are Glen, Smith, Glen Development LLC and GSM DSM Holdings LLC, and the counterclaim defendants are GSG, GSM DSM, and Viridian Group.

To read previous stories on the case, click on any of the following headlines:

• Sullivan Square Hearings Back on Docket
• GSG Attorneys Deny Harcourt Counterclaims
• Sullivan Square Defendant Switches to Offense
• Sullivan Square: One Motion Granted, One Denied
• Sullivan Square Lawsuit Ramping Up Again
• Judge OKs Amended Sullivan Square Complaint
• GSG Seeks Amended Sullivan Square Complaint
• Judge Dismisses Bulk of Claims Against Harcourt
• Harcourt Moves to Dismiss
• Sullivan Square Developer Sues Ireland Partner