Showing posts with label Las Vegas. Show all posts
Showing posts with label Las Vegas. Show all posts

Wednesday, 18 June 2008

Turning a Deaf Ear

Odd that Senator Walker should have said "There is no legal dispute in Las Vegas", later on in the debate, Mike Jackson contradicts this with precise information, and later Senator Walker denies any court case. Didn't he listen to Mike Jackson? How was Mike Jackson more informed than Senator Walker?
Perhaps that's one of those questions Senator Walker could ask?
Can I emphasise… first of all let me say: "Here we go again", any excuse to get a reference back and to delay taking a decision. But the Deputy did mislead the House in his earlier speeches. There is no legal dispute in Las Vegas. Has there been an issue between Harcourt and one of their proposed partners in Las Vegas? Yes. Has there been a legal suit on the back of it? No.
..........

The Connétable of St. Brelade:

On a point of clarification, Sir, the court case was filed on 30th April this year.

...........

Senator F.H. Walker:

I am sorry, but I do have to re-emphasise the factual nature of the position in Las Vegas. No legal motion has been filed in Las Vegas involving Harcourt in this development and I think the Deputy is again at severe risk of misleading the House

Wednesday, 11 June 2008

Lawsuit not just against Harcourt Subsidiary

It is just the subsidiary company involved in the Las Vegas Lawsuit, according to Harcourt.

Then why does it mention Harcourt Developments, Patrick Doherty, oh yes, and Patrick Power, the person who said it only involved the subsidiary?

Does Mr Power think people can't read?

Or is he unaware that the USA Court records are open to the public domain?

Clearly, he "misspoke"!




http://courtgate.coca.co.clark.nv.us/DistrictCourt/asp/Parties.asp

Online details below!



Case 08-A-562136-B Status ACTIVE
Plaintiff Sullivan Square Harcourt LLC Attorney Louis, Lena M.
Defendant Harcourt Nevada LLC Attorney Morris, Steve L.
Judge Denton, Mark R. Dept. 13


Total of 7 entries, presently displaying 1 through 7.


Party NameParty TypeStatus
Attorney Bar#Attorney NameTotal Attorneys
Answer DateAnswer TypeSummons FiledSummons Served
AddressPhone
Sullivan Square Harcourt LLCPRIMARY PLAINTIFFACTIVE as of 04/30/2008
006398Louis, Lena M.1

Harcourt Nevada LLCPRIMARY DEFENDANTACTIVE as of 04/30/2008
001543Morris, Steve L.1
NV
GSG DSM Holdings LLCPLAINTIFFACTIVE as of 05/20/2008
006398Louis, Lena M.1
NV
Harcourt DevelopmentsDEFENDANTACTIVE as of 05/20/2008
??????## Unknown ##0
NV
Doherty, Patrick JDEFENDANTACTIVE as of 05/20/2008
??????## Unknown ##0
NV
Power, Patrick JDEFENDANTACTIVE as of 05/20/2008
??????## Unknown ##0
NV
Doherty, NicholasDEFENDANTACTIVE as of 05/20/2008
??????## Unknown ##0
NV

The Other Lawsuits

This article gives more information about the murky waters that run deep in Las Vegas.

I would draw the readers eye to the statement made by Harcourt in tonight's CTV

http://www5.channelonline.tv/news/templates/jerseynews2.aspx?articleid=15110&zoneid=1

"the Nevada civil action is against a Harcourt subsidiary, and does not involve anything like the figure which has been quoted in the media as variously $800m and $800bn. $800m was the value of the proposed development, not the legal action, which will involve a massively smaller amount, if anything at all."

I would have thought that the sum which is already mentioned in the additional lawsuits, of more than two million (see below) was still a substantial sum.




http://www.inbusinesslasvegas.com/2008/05/09/realdev.html

The lawsuit alleges that Glen, Smith & Glen has been financially exploited and defrauded by Harcourt, which had committed to finance the project's $800 million construction costs. Harcourt had been paying Glen, Smith & Glen to oversee the project, but quit doing so at the end of last year and owes millions of dollars, the local company's officials say.

"(Harcourt officials) were engaged in a classic force-out," Glen, Smith & Glen attorney John Manly says. "They are trying to steal this project. Essentially, they stopped paying, not because of market conditions ... all of the indications are they plan to build the project. They are forcing (Glen, Smith & Glen) out and taking the profits."

Nancy Rapoport, a law professor at UNLV, says the dynamics of the case will take shape in the upcoming weeks when Harcourt files its answer to the complaint. It will be curious to see if they blame the worldwide credit crunch for the problems, she says.

"The ripple effect, if the project doesn't get completed, will be a bevy of lawsuits from the folks who put down deposits for condos, and those lawsuits may try to argue that the condo depositors shouldn't only get their deposits back plus perhaps interest but also some portion of market appreciation had the project been completed," Rapoport says. "On the other hand, in today's market, that's a dangerous argument to make, because real estate prices are going down, not up, and the condo depositors don't want to put themselves in the position of admitting that they entered into losing contracts."

The problems started last fall when Harcourt made only partial payments to consultants or didn't pay them at all, Smith says. Excavation and utility work started last summer, and Harcourt started pushing the construction timetable back last fall, Smith says.

Eight liens and two lawsuits totaling more than $2 million have been filed by firms against Sullivan Square, and back payments owed to consultants and vendors total another $2 million, Smith says.

The problems started last fall when Harcourt made only partial payments to consultants or didn't pay them at all, Smith says. Excavation and utility work started last summer, and Harcourt started pushing the construction timetable back last fall, Smith says.

He says he met with Doherty two months ago and received assurances the project would be funded and back on track, but nothing happened. That inaction forced him to pursue legal action.

Manly said he will seek lost profits and punitive damages, but didn't know what the amounts would be.

"Foreign developers are welcome to come here and make money, but they have to live within the law and not exploit the local community for monetary gain," Manly says. "I am hoping for a large award to send a message to others that we don't tolerate this type of conduct here."

More than One Lawsuit in Las Vegas

Another bit of information on the Harcourt saga. The whole story is below, but I've highlighted some pertinent facts.

Las Vegas developer Glen, Smith Glen (GSG) and two linked companies are suing Harcourt Developments, its Nevada subsidiary, Mr Doherty himself and a number of others for breach of contract in a Nevada court

So this puts rather a different complexion on Harcourt's claim that the Las Vegas lawsuit is only to do with their US subsidiary. Not only is the main company involved in the lawsuit, but so is the principal, Mr Doherty.

The court papers say that in February, Mr Doherty personally assured GSG that Harcourt would meet its obligations in 24 hours, but failed to do this.

This - if the Court case is true - is evidence of Harcourt making promises and failing to keep them.

Also during February, Harcourt approached GSG and asked it to change the agreement to give a third party a 20 per cent stake in Sullivan Square to secure funding. GSG was to hand over 9 per cent. The plaintiff says that Harcourt subsequently admitted that there was no new third party and that it wanted 9 per cent as a condition for providing funding.

Again if this is true, it indicates that Harcourt have been involved in some pretty slippery business practices. If proven, do the States of Jersey really want to do business with a company that engages in this kind of practice?

This has resulted in contractors and consultants working on the development not being paid. They have taken two other lawsuits against the company.

This is the really interesting one. What are those other lawsuits? Who is making them? Who exactly are they against? What are their claims about Harcourt? So far, we have just heard about one lawsuit, but now it seems there are two more.








http://www.finfacts.com/irishfinancenews/article_1013463.shtml


The Irish Times reports that a company backed by businessman Pat Doherty and former broadcaster Mike Murphy is facing a legal battle in the US over a €500 million Las Vegas property development.

Las Vegas developer Glen, Smith Glen (GSG) and two linked companies are suing Harcourt Developments, its Nevada subsidiary, Mr Doherty himself and a number of others for breach of contract in a Nevada court.

GSG is Harcourt's local partner on its Sullivan Square project, a €550 million mixed apartment and commercial development that the pair are building in Las Vegas. GSG and its co-plaintiff, Sullivan Square Harcourt and GSG DSM Holdings, began proceedings in the court yesterday. According to documents filed with Clark County district court, GSG and Sullivan Square say that Harcourt Developments and Harcourt Nevada have defaulted several times on their obligations to fund the project.

This has resulted in contractors and consultants working on the development not being paid. They have taken two other
lawsuits against the company. Also a number of them are claiming a share in Sullivan Square as compensation. GSG, run by businessmen Alan Glen and Kenneth Smith, owned Sullivan Square and began working on the project itself. An acquaintance introduced them to Mr Doherty and Harcourt. In August 2006, the Irish company agreed to fund the development in return for a 60 per cent share. GSG's complaint states that last October, Harcourt Nevada defaulted on its obligation by "failing to timely provide sufficient funding for development and construction of the project, and failing to fund the overhead for GSG dedicated to the project".

The court papers say that in February, Mr Doherty personally assured GSG that Harcourt would meet its obligations in 24 hours, but failed to do this. Also during February, Harcourt approached GSG and asked it to change the agreement to give a third party a 20 per cent stake in Sullivan Square to secure funding.

GSG was to hand over 9 per cent. The plaintiff says that Harcourt subsequently admitted that there was no new third party and that it wanted 9 per cent as a condition for providing funding. GSG states that it reluctantly agreed to give Harcourt 9 per cent, cutting its share of the project to 31 per cent. The documents state that Harcourt cannot plead inability to pay as the plaintiffs are aware that the defendants "maintained lavish and extravagant lifestyles" during the period. Harcourt Developments principals include Mr Doherty, Mr Murphy, and English businessman, Andrew Parker Bowles, former husband of Camilla Parker Bowles.

The Need to Know

Just heard on BBC Radio Jersey that the Waterfront developers Harcourt say they did know about the lawsuit in Las Vegas, but only after sending reassurances to the Chief Minister on 22 May 2008. Before that they knew it was pending, but that was all.

Questions to be considered.

As the lawsuit was filed on the 30 April, they must have an extremely slow method of communication - passenger pigeon or packet-express steam boat perhaps?

But even so, why they say they didn't tell the Chief Minister - and remember he asked them again just before the debate? They say now that it was not relevant to the financing of their Jersey operations, and after all they have 100 or so projects on the go.

As a recent news report (see below) mentions "unlike European countries, punitive damages can be assessed should the lawsuit be won".

And they didn't think it relevant to mention that?




http://www.lvrealty.net/news

Luck of the Irish: Sullivan Square developer files suit

Another high rise condo project has stalled, this time its the green project Sullivan Square. As with other projects, lack of funding is behind the project's collapse. However, unlike other projects, interest in owning a piece of it were high and the developer had enough funds contractually to complete the mixed use project.

Locally based Glen, Smith & Glen Development is now suing its equity partner in the deal, Harcourt Developments, a private company from Dublin, Ireland, which had agreed to finance up to $800 million for the Sullivan Square project. The lawsuit alleges breach of contract and breach of fiduciary responsibility by Harcourt Nevada for failure and refusal to fulfill its funding responsibilities according to the contract.

According to the contract filed with the lawsuit, Harcourt Nevada and its principal, Patrick Doherty, received a 60% interest in Sullivan Square in return for providing all funds for the development and construction. Oversight of the development and construction was the responsibility of Glen, Smith Glen, who also owned the land and had obtained the entitlements.
Glen, Smith Glen has charged in the suit that Harcourt never provided the necessary funds despite repeated attempts to collect them. It also alleges that Harcourt was trying to force out the Plaintiffs so that they could assume control of the project. Harcourt repeatedly stated that funding was imminent and their principal personally met with them in February of this year.

Unlike European countries, punitive damages can be assessed should the lawsuit be won. In Irish courts the worst that happens is you pay what you owe (seems like there is no consequences for bad behavior). It makes you wonder if Harcourt is just gambling a little to see if they could bankrupt Glen, Smith & Glen and take over the project, thinking that there is minimal risk. They might be in for a big shock after the trial.

So Sullivan Square is now officially in limbo. I'm pretty sure the project will go forward, but as to who will be officially developing it is anyone's guess at this time. One thing is for certain, because of the amount of money involved it is going to be at least a year or two before anything is settled. As to the impact this will have on the Las Vegas high rise condos market, it will probably be minimal.



http://www.industrialnewsupdate.com/archives/2008/01/index.php

Tuesday, 10 June 2008

The Jersey Utopians

A policy is a hypothesis which has to be tested against reality and corrected in the light of experience. Detecting mistakes and inherent dangers by critical examination and discussion beforehand is an altogether more rational procedure, and one as a rule less wasteful of resources, people and time, than waiting till they reveal themselves in practice. (Karl Popper, The Open Society and Its Enemies)

I had to travel into St Helier yesterday evening.

A road accident, which as far as I could see, was not too serious, meant that there was an extensive traffic delay around the inner road at the junction by Benests, Millbrook. As Victoria Avenue was closed, and there was a traffic lights system operating diverting traffic to the inner road, you can probably imagine the slow (mostly stop) speed the traffic progressed at until past Benests.

Of course, when the Avenue is closed - as at present for major road resurfacing - this means there is only one main road into town the inner road. Any accident then causes major problems - just as the flooding of the Avenue caused major problems earlier in the year when the inner road was closed in one direction.

What we have in such cases are unintended consequences, those things which might occur, and which could be considered and planned against. But in most cases the planners are tightly focused on a particular aim, and they do not stop to think "what might happen if..."

It is impossible to plan against all contingencies, but any really good plan should look at some of those, and welcome any criticism because that criticism may highlight deficiencies.

As Karl Popper notes:

Detecting mistakes and inherent dangers by critical examination and discussion beforehand is an altogether more rational procedure, and one as a rule less wasteful of resources, people and time, than waiting till they reveal themselves in practice.

In his "Poverty of Historicism", he notes the kind of planner who wants to push ahead with Utopian schemes, and notes that:

The reason is that every attempt at planning on a very large scale is an undertaking which must cause considerable inconvenience to many people, to put it mildly, and over a considerable span of time. Accordingly there will always be a tendency to oppose the plan, and to complain about it. To many of these complaints the Utopian engineer will have to turn a deaf ear if he wishes to get anywhere at all; in fact, it will be part of his business to suppress unreasonable objections. But with them he must invariably suppress reasonable criticism too. And the mere fact that expressions of dissatisfaction will have to be curbed reduces even the most enthusiastic expression of satisfaction to insignificance. Thus it will be difficult to ascertain the facts, i.e. the repercussions of the plan on the individual citizen; and without these facts scientific criticism is impossible. (Popper, Utopian Planning)

Listen to the debates about the Hopkins Masterplan, I could not be struck by how this rings so true in the case of the way in which the argument has been pushed forward, and criticisms shrugged aside, especially by Frank Walker and James Perchard. On hearing of a Las Vegas lawsuit pending against the developers, the reasonable thing to do (if one didn't know about it) was to suggest that the matter should be looked into before decisions were made, but this was not the case. Instead we had the "deaf ear" and Perchard trying to "suppress reasonable criticism" with what amounted to, in part, an ad hominem attack on Gerard Baudins.

Nevertheless, this "great vision" went through and was voted in, although with elections coming up, and electors raising the matter, I note that Sean Power, not noted usually for being against the Council of Ministers, has been asking questions about the fiasco of Frank Walker's denial. As you may remember, Frank denied categorically a lawsuit against the developers and apology after the vote was taken because he had suddenly been briefed (so conveniently it beggars belief) that there was a lawsuit after all. There may yet be a rescindment motion.

But the harsher issue of why the Waterfront so appealed to States members that they took no stock of unintended consequences, I would turn again to Popper, and his fine critique of Utopian planning. The planners want a clean slate approach, they want a vision of a Waterfront, an ideal that matches the glossy images in the Hopkins plan, something free from the ugliness that we see at the Waterfront at the moment. And there is much ugliness there - the Coast programme on TV noted that the entrance to St Helier, where visitors drive of the ferry, is more like a building site than anything else.

Utopia is always the temptation in the face of such ugliness, to build an iconic and beautiful area, and clear away what has gone before, bury roads, and build a vibrant brave new world. Against this Popper gives a warning:

"This sweep, this extreme radicalism of the Platonic approach (and of the Marxian as well) is, I believe, connected with its aestheticism, i.e. with the desire to build a world which is not only a little better and more rational than ours, but which is free from all its ugliness: not a crazy quilt, an old garment badly patched, but an entirely new gown, a really beautiful new world. This aestheticism is a very understandable attitude; in fact, I believe most of us suffer a little from such dreams of perfection. But this aesthetic enthusiasm becomes valuable only if it is bridled by reason... Otherwise it is a dangerous enthusiasm, liable to develop into a form of neurosis or hysteria." (Popper, The Poverty of Historicism)

Has the Waterfront become "a dangerous enthusiasm". I think so.

Remember....

"Those who promise us paradise on earth never produced anything but a hell." (Karl Popper)




References

The Open Society and Its Enemies, Karl Popper
The Poverty of Historicism, Karl Popper
Conjectures and Refutations, Karl Popper
Karl Popper: Modern Masters, Brian Magee

Monday, 9 June 2008

The Pit of Foul Deceit

The school rhyme used by children goes

"Liar, liar, pants on fire
Hangin' on a telephone wire!"


It is a paraphrased version of the 1810 poem "The Liar" by William Blake

Deceiver, dissembler
Your trousers are alight
From what pole or gallows
Shall they dangle in the night?


In the United Kingdom Parliament, lying in the House is considered in many ways the worse crime, and if the liar can be proven to have deceived the House, then it is invariably a resignation matter.

In the United States, Hillary Clinton was caught out saying she had "misspoke" when she talked about she had to evade sniper fire when she was visiting Bosnia, and the television cameras showed the lie. No sniper fire, but only a little girl with a posie of flowers!

In Jersey, we too, have our own individual who "misspoke". Frank Walker, at the discussion on the Waterfront, categorically denied that the developers Harcourt had any legal problems pending in Las Vegas, and adopted the USA option of apologising, and carrying on in office. What we might call the Clinton Liar Damage Limitation Method!

Frank is carrying on in office despite deceiving the States. But one has to ask: what office? The Office of Chief Minister, a recent creation, has been brought into such disrepute by the Chief Minister himself deceiving the States, that he really should resign for the good of the States, and the good of the Office.

In the UK Parliament, that would be the honourable (and necessary) thing to do. In Jersey, however, he just gives an apology, says the result would have been the same anyway, and carries on as if nothing had happened! Has he no shame, no moral sense, so sense of honour whatsoever? It appears not.

The JEP noted that:

Chief Minister Frank Walker had to apologise for misleading the House yesterday after originally denying the existence of a multi-million-dollar lawsuit against developers Harcourt over Las Vegas's $800m Sullivan Square development. He said he had been misinformed, and that he had only been told about the lawsuit after the debate.

In that case, why did he (and Jim Perchard) deny it so vigorously during the debate? Only a fool would deny information that was being brought to light unless they had been briefed against it. Why did he apologise immediately after the debate? He certainly came up to speed fantastically quickly on the truth of the matter.

As William Blake put it so well, we might ask:

What infernal serpent
Has lent you his forked tongue?
From what pit of foul deceit
Are all these whoppers sprung?


The only silver lining is that he is leaving in October, probably to some well-paid sinecure either in the private sector or arranged by the States (like Pierre Horsfall, who ended up as Chairman of Jersey Finance).

Unfortunately Jim Perchard is around for another three years. Perhaps instead of lunatic schemes for a referendum as to whether we should move to European time (which still means the hour changing), we should have a referendum on whether Jim Perchard should resign from the States?

What red devil of mendacity
Grips your soul with such tenacity?
Will one you cruelly shower with lies
Put a pistol ball between your eyes?







References:
http://uncyclopedia.org/wiki/Liar_Liar_Pants_on_Fire

http://www.thisisjersey.com/2008/06/06/waterfront-developers-sued-for-millions/