The debacle known as the Harmon Tower may be finally put to rest. The massive 47 tower building was stopped 26 floors into construction when it was determined the steel used was not capable of supporting the remaining floors. For nearly 15 months, MGM Resorts and Perini Building Co. have been ironing out a settlement, which finally reached an agreement.
More than $400 million in damages were initially sought out, but the exact terms of the settlement were to remain confidential. However, MGM Resorts, shortly after, filed a notice with the Security and Exchange Commission, claiming $173 million was the number to be paid out. Of that $173 million, $20 million will go to CityCenter, and the remaining $153 million to Perini. MGM Resorts will pay $101 million out of pocket, with the other $72 million being pulled out of escrow from CityCenter condo sales.
MGM Resorts stated all condominium proceeds were made available to fund construction lien claims after the lawsuit was settled. Due to the case being “incredibly complicated both factually and legally,” Chief District Judge Jennifer Togliatti said, which resulted in a 15-month conference involving a series of meetings, phone calls, and emails. “In that way, it was different than your average settlement conference,” the judge stated.
Togliatti’s work was lauded by District Judge Elizabeth Gonzalez, who said, “Judge Togliatti is a miracle worker.”
The trial was expected to last more than a year, but due to diligent and effective work on Togliatti’s part, all it took was two marathon sessions before the settlement was reached. She urged both parties to consider the risks involved with a jury’s presence, and to consider taking destiny in their owns hands.
Parties involved in the settlement were Century Steel Inc., who subcontracted to Pacific Coast Steel during construction, and CECO Concrete Construction.
MGM released a statement the following Tuesday:
“MGM Resorts International, along with CityCenter Holdings, LLC, has reached a confidential settlement of all disputed claims with Perini Building Company and the remaining subcontractors in the CityCenter Master Construction Litigation pending in Clark County District Court. The settlement resolves any and all claims between the parties.”
“CityCenter thanks Chief Judge Jennifer Togliatti for her efforts in assisting the parties to reach a global settlement. CityCenter also wishes to thank trial Judge Elizabeth Gonzalez and the jurors for their willingness to serve.”
Nearly 6,000 potential jurors were informed of the proceedings before 600 were selected. By the time the trial started, 430 remained, and lawyers picked 20 jurors including 12 alternates.
