Thursday, May 14, 2009 | 3:20 p.m.
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Sun Archives
- Fontainebleau: Bank wanted to minimize Cosmopolitan competition (5-12-09)
- Fontainebleau glazing contractor no stranger to overcoming adversity (5-6-2009)
- Fontainebleau workers laid off amid funding concerns (4-30-2009)
- Union: Banks putting jobs in jeopardy over Fontainebleau (4-29-2009)
- Sued by Fontainebleau, banks could cite ‘act of God’ as defense for refusing funds (4-29-2009)
- In Fontainebleau's PR battle, banks have yet to talk (4-27-2009)
- Berkley wants talks with Obama administration on Fontainebleau (4-27-2009)
- Fontainebleau files $3 billion suit over funding (4-23-2009)
Sun Coverage
Even as the Fontainebleau resort presses its breach of contract lawsuit against lenders, a contractor is asserting similar claims against Fontainebleau.
CCCS International of Ladson, S.C., sued Fontainebleau in U.S. District Court in Las Vegas on Tuesday, saying the Las Vegas development hired it to fix problems and it did so -- but was fired when it discovered fraud on the part of Fontainebleau and overcharges by its contractors and suppliers.
CCCS also says it hasn't been paid all that it's owed.
Fontainebleau denied the allegations Thursday.
"This is a brazen attempt to extract an unwarranted payment from Fontainebleau," resort spokesman Dave Satterfield said. "CCCS was fired in March 2009 for failing to appropriately perform its duties. The contract allowed us to fire them at will.
"We believe CCCS's allegations of wrongdoing are unfounded, Fontainebleau always strives to run its business responsibly and we have been conducting a review of the allegations by CCCS -- just as we do when anyone makes an allegation of wrongdoing," he added.
CCCS said it was contacted last summer and was told by Fontainebleau officials "the project was severely over budget and Fontainebleau was in need of a construction manager able to provide cost management and auditing services to recover prior unnecessary overpayments."
But, CCCS alleged, Fontainebleau failed to disclose it did not have adequate financing to pay CCCS for its services.
The suit alleges Fontainebleau failed to adequately design, supervise, coordinate, plan and schedule all of the work at the project, causing significant delays, disruptions and hardship on many of the subcontractors, consultants and employees. CCCS claims Fontainebleau wrongfully terminated its contract after it discovered Fontainebleau's "fraudulent billing practices and inappropriate payment methods."
CCCS maintains it discovered more than $40 million in overpayments during just a few months on the job and was well on its way to discovering the benchmark of $130 million in contractor/supplier overcharges when it was removed from the project.
"However, and despite receiving these significant benefits, Fontainebleau has refused to pay CCCS the agreed to compensation," charged CCCS, which maintains it's owed more than $1 million.
The suit was filed by attorneys William Urga and Mindy Fisher of the Las Vegas law firm Jolley Urga Wirth Woodbury & Standish; along with a Michigan law firm.
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