Aldrich Law Firm, Ltd.
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Henderson, final parties in stadium litigation trying mediation

In the latest chapter in the commercial litigation, the city of Henderson and two of the people involved in the proposed multi-sports stadium complex deal have failed to reach a settlement over accusations of fraud. The two sides are turning to mediation, which is a common form of alternative dispute resolution that many businesses in legal disputes use as a lower cost alternative to court.

The would-be developer and his attorneys have settled their portion of the litigation, as we have previously discussed, most recently on March 15. That left the developer’s land consultant and public relations/lobbyist director. An attorney representing the city of Henderson, who approved the sale of federal land to the developer for $10.5 million for the construction of football, basketball, and other professional-sized arenas, said on March 28 that the city had been negotiating a settlement with the remaining defendants but could not reach agreements with either one.

The next step appears to be that the parties will turn to mediation, with a retired district court judge serving as mediator. Mediation takes place outside of the court system. A session is typically less formal than a trial. In business disputes that go to mediation, the mediator works with each side to try to reach a resolution to which both sides can agree. Many businesses prefer to at least try mediation or another form of ADR before pursuing the dispute in civil court.

Interestingly, the land sale may not be dead. Financial backers of the developer recently paid the city $250,000 to keep it alive at least until May 13, when they will owe the city $4.25 million to close escrow.

Source: VEGAS INC, “No deal reached: Stadium developer’s team heads to mediation,” Eli Segall, March 28, 2013

· For more information about business disputes, please visit our Las Vegas business litigation page.

John P. Aldrich
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