Venetian bonds may clog LV courts

Bill Gang

Wednesday, Sept. 1, 1999 | 11:37 a.m.

The Venetian hotel-casino and its general contractor have been reducing the number of liens filed by subcontractors by posting bonds that automatically dissolve the liens, but the move has the potential to clog the court system.

The liens, which legally tie up ownership of the property, have been filed over the past few months by disgruntled construction firms that want to be paid for the work they did on the mammoth resort.

The bonds ensure payment should a court decide in favor of the subcontractors.

Such bonds by law must be in an amount 1 1/2 times that alleged to be owed to cover interest and court costs that might be added on.

But under the law when bonds are posted to cover the purported debts, those companies owed money can demand hearings before a district judge within 30 days to resolve their cases.

Normal litigation over a lien, like any lawsuit, can drag on for years.

Currently 13 liens involving about $1 million have been released through the posting of bonds.

If even half of the pending liens are released through the posting of bonds and demands for 30-day hearings are made, it could require most of the 19 district judges be pressed into service to handle the cases.

Senior district judges might also be assigned some of the cases.

Currently all of the lien cases have been consolidated in District Judge Mark Gibbons' courtroom.

The issue is further complicated because Gibbons, who has been specializing in civil cases for two years, will be switching to criminal cases in the next few weeks.

Gibbons' civil caseload will be dropped in the lap of whoever is appointed this week by Gov. Kenny Guinn to replace retiring District Judge Joseph Pavlikowski.