Sheldon Adelson sues contractor over alleged home mold

By Steve Green

Friday, Aug. 28, 2009 | 2:26 p.m.

Las Vegas Sands Corp. Chairman and Chief Executive Officer Sheldon Adelson is suing a house-building contractor, claiming mold has been growing in one of his luxury homes because of construction defects.

Adelson filed a lawsuit this month in federal court in California against Linden & Associates Inc. of Los Angeles over a 12-year-old, $1.6 million construction contract for the home in Malibu, Calif.

Phone and e-mail messages seeking comment on the lawsuits were left Friday with Linden.

The suit says exterior surfaces of the home have failed, allowing water to enter and damage walls, floors and carpets.

"Excessive moisture has led to a wide range of damage throughout the home such as excessive humidity, excessive condensation, water damage, mold growth, mold infestation and contamination, dryrot, deterioration, staining, cracking, corroding and other water- and moisture-related damage," the suit charges.

The lawsuit alleges Adelson has spent funds assessing and correcting the alleged defects, but that Linden has failed to indemnify Adelson for those costs. The suit alleges breach of warranty, breach of contract and negligence.

The suit was filed on behalf of Adelson by San Francisco attorney Clark Thiel of the firm Howrey LLP. Thiel, practicing in California and Nevada, focuses on construction cases including construction defect claims.

A 1997 contract filed in the case shows the construction manager for the home-building project was Bovis Construction Corp. -- a sister company to Lehrer McGovern Bovis Inc.

Lehrer McGovern Bovis was building Las Vegas Sands' Venetian hotel-casino on the Las Vegas Strip at that time.