Judge orders Venetian to pay contractor in first successful lien case against casino

David Strow

Monday, Oct. 30, 2000 | 11:10 a.m.

A state judge has ruled the Venetian must pay a subcontractor $1.33 million for work performed during the resort's construction.

The case is the first mechanics lien case successfully brought against the Venetian. However, the Venetian still has the option of appealing the decision to the Nevada Supreme Court.

In an Oct. 25 decision, Senior District Judge James Brennan awarded Superior Tile Co. $1.33 million, the full amount the contractor had demanded in its mechanics lien. Brennan's ruling followed the recommendation of a special master, attorney Erika Pike Turner, who had recommended full payment after a hearing between Superior Tile and the Venetian on the case.

The Venetian had asked for the ruling to be dismissed, arguing that Superior Tile's work was defective, and would cost more than $2 million to fix. Superior Tile installed much of the marble tile in the Venetian, including in the hotel rooms and the casino floor.

Brennan's decision is significant in the on-going battle over more than $300 million in mechanics liens filed against the Venetian. In a hearing earlier this month before Brennan, Venetian attorneys argued the case was a "trailblazer" case that would "define the respective roles of the court and (Pike Turner) in this set of ... cases."

Those cases are the "preferential lien" cases now before Brennan. Preferential lien hearings speed up the lien hearing process so subcontractors can collect funds more quickly. However, a company can only ask for actual costs in these cases, rather than related damages.

To date, six out of more than 100 lienholders have requested preferential trials. No date has been set for hearings on the balance of the claims.

Turning aside the Venetian's objections to Pike Turner's role, Brennan ruled that Nevada law permits the appointment of a "special master" to hear cases that involve "difficult computation of damages," as is the case in the Venetian liens. Brennan further ruled that Pike Turner was asked to make rulings on specific items, not "nearly all of the contested issues."

Brennan then upheld all damage recommendations made by Pike Turner.

Payment under the ruling would come from $470 million in surety bonds the Venetian posted to clear mechanics liens from the property. Without these bonds, a subcontractor could have demanded the sale of the property to satisfy a claim.

The Venetian is expected to appeal Brennan's decision to the Supreme Court, which would prevent Superior Tile from immediately collecting on its claim. A Venetian spokesman had no comment on the ruling.