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Las Vegas Strip project fails to progress, developers face lawsuit

Las Vegas is a hotspot for real estate and business deals, with the Las Vegas Strip being a prime location to build. Unfortunately, while business owners and investors may have the best intentions in mind, sometimes financing falls through. Locally, the Alon casino project on the Strip has been struggling to gain legs for quite some time and now things have gotten even stickier with an added lawsuit.

Apparently, YWS Design & Architecture, a contractor related to the project, is suing the developers for breach of contract, deceptive trade practices, and copyright infringement, among other things. Alon's CEO has called the allegations baseless, claiming that the contractor actually overbilled them. They plan to file a counterclaim in the matter.

Crown Resorts bought the property in 2014 and hired the contractor the following year. According to YWS, the developer started falling behind on payments and suspended the design work in 2016. They later terminated the contract with YWS. This ordeal prompted the contractor to file a $3.4 million lien against the property which sent the two sides into mediation. Unfortunately, that issue was never resolved and YWS refiled the lien. The casino project is currently halted and the land is now up for sale.

When a business agreement sours and contracts are not upheld, business owners may feel as if they're facing an insurmountable battle. Thankfully these types of contracts are governed by state laws and can be disputed though meditation or litigation. A company may find it helpful to work with a business attorney who is experienced in breach of contract matters.

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