Las Vegas Sun

March 28, 2024

Court rules against Las Vegas golf developer

CARSON CITY – The Nevada Supreme Court has rejected the petition of Las Vegas golf course developer Billy Walters, who maintains he isn't liable for millions of dollars in a bank loan guaranty in his sale of the Stallion Mountain Golf Course.

The court backed the ruling of District Judge Mark Denton that a trial must be held to determine the amount of money Walters owes for guaranteeing a $15.2 million loan from the Community Bank of Nevada.

The bank since the transaction has been taken over by the Federal Deposit Insurance Corporation.

A Walters group sold the golf course for $24.4 million to 26 investors in February 2006. The new owners put up $9.2 million in cash and financed the rest through a $15.2 million loan from the bank.

Walters agreed with the bank to personally guarantee the loan. The new owners failed to make the payments to the bank, which foreclosed on the property and sought to collect the balance owed by Walters.

Walters, in his suit, said the bank didn't make its demand for the money within the required deadline. He maintained the bank is trying to double collect from him.

Denton rejected Walters’ motion for a pre-trial summary judgment and ruled the case should go to trial to determine how much Walters owes. Denton ruled the bank had filed its “application for deficiency” according to the law and it wasn't trying to double collect from Walters.

Denton ruled the bank was giving credit to Walters for the sales price of the golf course.

The Supreme Court, in the opinion written by Justice Michael Douglas, said there was “a clear recognition that CBN (the bank) was not seeking a double recovery.”

The course is at Flamingo Road and Boulder Highway.

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