SYLMAR, Calif.--(BUSINESS WIRE)--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.
“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, 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.
MGM’s demolition of the Harmon Tower would remove another 400 hotel rooms from MGM’s inventory. This decision is a continuation of the business strategy that MGM adopted in 2008 when it eliminated 22 floors of residential units at the Harmon Tower due to the severe economic downturn in the residential, hospitality and gaming markets.
Hearings have not been concluded on MGM’s original motion and Tutor Perini anticipates that no final order will be entered on Judge Gonzalez’s interim ruling, made on July 19, 2012, until all matters under consideration in the hearing have been heard and decided by the Court.
About Tutor Perini Corporation
Tutor Perini Corporation is a leading civil and building construction company offering diversified general contracting and design/build services to private clients and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large complex projects on time and within budget while adhering to strict quality control measures.
Tutor Perini Corporation website: www.tutorperini.com