General

Real estate case with ties to Florida close to settlement

Each year residents of communities throughout the nation, including Orlando, Florida, plan vacations to fun destinations. For many, the destination of choice is Sin City, otherwise known as Las Vegas. Because of the popularity of that city, it seems as though it is constantly expanding with new construction along the area called “The Strip.”

Not all of those building projects go as expected however. The owners of a property known as Fontainebleau know this all too well. They filed for bankruptcy after the real estate crisis left them without enough to finish the $2 billion high rise. Because of ties the owners of the Las Vegas property have to the Miami area, the case was filed in a federal court in South Florida. Earlier this month news came that a settlement in the matter is likely near. Creditors are probably pleased to learn about this.

Creditors to the unfinished building include many contractors. If the federal bankruptcy judge, who is based in Miami, approves the deal the contractors will likely receive approximately a fourth of the amount that is owed for their work. At least one contractor is seeking to have its lawsuit for money owed, protected from the settlement.

Construction cases can be complicated matters. This is in large part due to the amount of money and number of entities involved in most commercial real estate situations. For this reason, to obtain the best result, many engage the assistance of a lawyer who handles construction litigation. While in many situations these types of cases settle, other times they continue on and are resolved at trial.

Source: The Miami Herald, “Settlement appears likely in Fontainebleau Las Vegas bankruptcy case,” Douglas Hanks, Nov. 13, 201 3

Fri Aug 24, 6:33pm