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Tuesday, Dec. 14, 2010 | 4:17 p.m.
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A state judge on Tuesday ordered the Cosmopolitan of Las Vegas not to rent out as hotel rooms about 150 units that are the subject of litigation between the new Strip resort and would-be condominium buyers.
Clark County District Court Judge Elizabeth Gonzalez granted in part a motion for a preliminary injunction sought by condominium buyers who complained the Cosmopolitan wanted to both seize their purchase deposits held in escrow and rent out as hotel rooms the units that are the subject of litigation.
The condominium buyers say that once they see the units they'll decide whether to buy them or demand refunds of some $30 million in deposits they've put up.
One of the law firms involved in the case, in the meantime, announced that some 100-150 condominium purchasers plan to protest the situation at tomorrow's opening of the resort.
"Purchasers of condominiums at the Cosmopolitan of Las Vegas have been trying for years to receive accurate information about the property they purchased and hundreds have retained counsel to either get this information, buy the property as it was promised to them in contract, or get their money back from escrow due to fraudulent behavior from (Cosmopolitan owner) Deutsche Bank and their partners," the law firm of Lurie & Park in Encino, Calif., said. "These purchasers have not been invited to the opening of the property, nor can they get in to see their condominiums that they have put hundreds of thousands of dollars down as down payment."
In their motion for a preliminary injunction, attorneys for some of the condominium purchasers charged: "Defendants are on the verge of opening the Cosmopolitan as a hotel on Dec. 15 and will attempt to rent out the plaintiffs' units to the general public. Since defendants do not own these condominium units, they have no right to do so and renting them out will cause wear and tear and potential damage to those units."
"The Cosmopolitan has also expressed its intent to appropriate the plaintiffs' earnest money deposits" by falsely claiming the buyers have defaulted, the attorneys charged.
The would-be buyers claim it's the Cosmopolitan that's in default since it reduced the number of condominium units from more than 2,100 to 292 and changed the character of the property so that condo owners will be "interspersed among 2,700 noisy, transient hotel guests and receive none of the exclusive owner-amenities they were promised."
Lisa Lawrence, an attorney for the buyers, said today's ruling by Gonzalez affects about 150 of the 200-plus units at the Cosmopolitan now planned as condominium units.
Attorneys for the Cosmopolitan have insisted they're living up to the condominium sales contracts and will deliver condominiums to any of the buyers who still want to buy them.
The story above points out that Deutsche Bank's employees thinking is often illogical. It's very nice to see a judge stand up for what is right.
Will Deutsche Bank change their tune, and refund 100% of the buyers' deposits? Not likely.
This same stubborn bank made the construction loan for at least one of the Nazi death camps.
As to the Cosmopolitan condos: Some institutions never learn.
Deutsche Bank has been particularly foolish and irresponsible with their shareholders' money during the entire real estate bubble, but the above remark about the Nazi death camps is stupid, gratuitous, and irrelevant.
Deutsche Bank continues to demostrate their disengenious attitude toward Las Vegas, and the Las Vegas residents, and now they are being dishonest in their dealings with the patrons who visit our town. Time and time again Deutsche Bank has invested in gaming and has failed to show any positive gains in Nevada. Deutsche Bank should get on their collective knees and thank City Center for opening and providing a way for Deutsche Bank to make a profit, for once, in their business dealing in the State of Nevada. The sad part is Deutsche Bank is not a gaming company, but we see them making huge investments into projects that do not reflect their business model.
I only hope Deutsche Bank does not make a half- effort in supporting the Cosmopolitan management team and somehow the employees and the City and the Gaming Commission is left holding an empty bag of promises.
I think that Deutsche is acting like a bunch of Euro dopes in this matter. Imagine paying top dollar for a condo, and having Larry and his drunken buddies from Toledo in town for March Madness, tearing the place apart right down the hall? Did you know the big casinos have haz-mat teams that enter the rooms when the bed-change lady finds a destroyed room, replete with waste and vomit and God knows what else after a big night?
Seriously, Deutsche is also the cause of the Lake Las Vegas Disaster, and have no clue about this town. I hope the condo owners get their money back, and maybe Deutsche will learn a small lesson...
What's the issue? Duetsche Bank is refunding deposits on units that were sold a couple years ago when the units most likely had a much higher value. Wouldn't these people be glad to get their deposits back on a condo that has clearly lost value vs. being forced to buy at prices from 2+ years ago. Seems like a no brainer to get your money back.
What's the actual issue at hand here?
"Flag What's the issue? Duetsche Bank is refunding deposits"
Wrong. The bank is not refunding the deposits and that is the issue.
Like in China, people who engage in major economic crime (like the people who cheated these buyers)should be given the death penalty. Hopefully, they will do the right thing like Bernie Madoff's son did.
How come the media always goes to this bank to hear from their analysts?
Stealing is stealing...even when it's legal.
The mud is still rising.
End of the recession, huh? Right.