Tutor Perini Corporation (NYSE: TPC), a leading civil and building construction company, today announced an interim court ruling on the Harmon Tower project at MGM CityCenter in Las Vegas. Tutor Perini Building Corp., a wholly owned subsidiary of Tutor Perini Corporation, was the lead contractor for the Harmon Tower project.
Judge Gonzalez, of the Nevada state court, determined that MGM can demolish the Harmon Tower as a “business decision,” but that doing so would not in any way be the result of any actions by Tutor Perini Building Corp. during the construction of the project and that the Court’s decision is not “a determination as to whether any design defects exists, any noncompliance with code exists, any nonconformance with plans exists or any construction defects exist.”
Judge Gonzalez ordered that the following instruction be given to the jury at trial:
"CityCenter has made a business decision to demolish the Harmon. The mere fact that the Harmon has been demolished is not evidence of any nonconformance with code or plans. It is not evidence of any constructional defect or any safety issues at the Harmon. You are to make all decisions in this case based upon the evidence presented here in court."Tutor Perini Building Corp. noted that evidence at the hearing demonstrated that the Harmon Tower is safe and that the Court did not make any determination that it cannot be repaired. Additionally, after two years of litigation, MGM has now conceded that the Harmon Tower could be repaired if MGM chose to do so. Tutor Perini remains confident that it will prevail when the issues of safety, repairability and responsibility for the issues facing the Harmon Tower are considered. John A. Martin & Associates, a nationally renowned structural engineering firm that has the most experience in designing high rise towers on the Las Vegas Strip, testified at the hearing, finding that the Harmon Tower suffers from substantial design defects that are MGM’s responsibility. The evidence at the hearing established that the Harmon Tower can be fully repaired for approximately $21 million, more than $15 million of which is due to design defects that are MGM’s responsibility. For over two years MGM has refused to allow these repairs, which would have rendered the building useable for its intended purpose.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV