Court overturns Wynn decision

Thursday, March 20, 2003 | 11:18 a.m.

CARSON CITY -- The Nevada Supreme Court on Wednesday voided a temporary order stating that casino developer Steve Wynn must pay more than 80 percent of the security costs for the Desert Inn Estates in Las Vegas.

It was the latest blow in an ongoing battle between Wynn and homeowners remaining at Desert Inn Estates who have refused to sell their property to Wynn, who is building the $1 billion Le Reve resort on the site.

Wynn acquired 48 of the 58 exterior lots and all 15 of the interior lots on the site. He then dissolved the homeowners association and notified residents that security services would be discontinued.

Wednesday's decision overturned a ruling by District Judge Mark Denton, who had earlier issued a temporary injunction requiring Wynn's company Valvino Lamore to contribute its share to the security costs.

Wynn appealed Denton's decision to the Supreme Court, which ruled that Denton's order was an abuse of discretion. The court said Wynn's company appears to have complied with the law in the dissolution of the homeowners association.

The court said homeowners who filed suit against Wynn will be able to recover compensatory damages from Wynn if they win at trial.

Valvino officials said the company should not be forced to pay for security services it no longer wants or requires.

The court said "it would be wasteful for Valvino to spend significant money protecting homes that will ultimately be destroyed" for the new resort.