Las Vegas Sun

March 31, 2015

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Another lawsuit alleges unpaid work at Fontainebleau

Another lawsuit was filed Tuesday over allegedly unpaid Fontainebleau construction costs, this one naming resort developer Jeffrey Soffer personally.

Since Fontainebleau Las Vegas builder Turnberry West Construction has not filed for bankruptcy, subcontractors claiming to be owed money by Turnberry West have been filing lawsuits in Clark County District Court along with claims against a Turnberry West bonding company.

Contractors with claims against Fontainebleau itself have been filing their claims in a Miami bankruptcy court, where the stalled Fontainebleau hotel-casino filed for reorganization last month.

A company that says it issued a $50,000 bond required for contractors to Turnberry West, Western Surety Co., on Tuesday filed suit in Clark County District Court against Soffer, Turnberry West and six companies that have made claims against the bond.

Western Surety says the claims far exceed the bond amount and asks the court for permission to deposit the $50,000 with the court, less its costs, and that the claims of the contractors be dealt with by that court.

Western Surety also alleges Turnberry West and Soffer agreed to indemnify Western Surety for any losses, liability and costs associated with the bond, but have failed to do so.

"Turnberry and Soffer ... have failed and refused ... to fulfill their obligations under the indemnity agreement and provide plaintiff with the funds due and owing pursuant to the terms of the indemnity agreement," charged Western Surety, which said it has expended funds investigating and dealing with the claims against the bond.

Fontainebleau is not commenting on pending litigation, a spokesman said.

Western Surety also sued the companies making claims against the bond, seeking a court order that they pursue their claims against the bond only through its lawsuit, called an interpleader action.

The companies sued and the amount claimed against the bond are Cashman Equipment Co. ($85,286), Embassy Glass Inc. (not specified), F. Rogers Corp. ($7.462 million), PCI Group LLC ($60,000), Steel Engineers Inc. ($12,643) and Tracy & Ryder Landscape Inc. (not specified).

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