GES fails in second lawsuit against Adelson

Tuesday, April 4, 2000 | 10:59 a.m.

A Nevada state court threw out a breach of contract lawsuit by GES Exposition Services against the operator of Sheldon Adelson's Sands Expo & Convention Center, which is connected to his Venetian resort.

The lawsuit was the second brought against Adelson's Interface Group by GES over the termination of GES' exclusive contract to provide electrical services to exhibitors at the Sands. Interface terminated this contract in 1996, but GES claimed it had the right to continue work at the center through 2004.

In its state lawsuit, GES claimed this termination violated its right of first refusal to provide electrical and plumbing services to exhibitors.

In its ruling, the court found Interface had adequately provided these services to its exhibitors itself. Since Interface's contract with GES allowed early termination if the services were brought in- house, the court ruled the right of first refusal hadn't been violated.

In a related case, Interface was awarded more than $250,000 in damages by a federal judge last summer. Interface had been seeking disputed commissions from work performed by GES at COMDEX '95, held at the Sands.

GES had countersued in this case, claiming Interface acted improperly in terminating the contract before 2004. GES had sought to force Interface to continue its contract through 2004, as well as $3.13 million in damages. The federal judge denied both claims, leading GES to file the second lawsuit in state court.