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Deutsche Bank offers partial refund to Cosmo's West Tower homebuyers

Some of the homebuyers at the Cosmopolitan are getting their money back.

On Oct. 20, Clark County District Court Judge Elizabeth Gonzalez approved a deal between plaintiffs and defendant Deutsche Bank AG to return a portion of deposits on 1,322 condominium residences inside Cosmopolitan's 600-foot-tall West Tower.


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  • The $3.9 billion development consists of two hotel-condominium towers perched atop a multilevel retail, casino and entertainment podium.

    Deutsche Bank bought the 3,000-unit development complex, on 8.5 acres, during a foreclosure sale last summer. It's tentatively expected to finish construction next year.

    The court settlement will return 74.4 percent of homebuyer deposits, which average about $140,000 a piece.

    Deutsche Bank spokesman John Gallagher declined to comment on the case.

    Homebuyers have until Dec. 4 to opt out of the settlement. Checks could be mailed out in time for Christmas.

    "We are pleased with the decision and feel that it represents a fair settlement, which makes economic sense for everyone," Marquis & Aurbach managing principal Terry Coffing said. "We believe the checks will be distributed by the end of December."

    Las Vegas-based law firm Marquis & Aurbach represents owners of 430 units inside Cosmopolitan's West Tower, or 32.5 percent of the total building. Homebuyers had claimed numerous breaches of contract, including late completion of the resort.

    But not everyone is happy with the deal.

    "The offer by Deutsche Bank is insulting," said Daniel Park, a partner with Los Angeles-based Lurie & Park, which represents more than 20 homebuyers inside the West Tower. "This would be a windfall profit for Cosmopolitan, resulting from their failure to honor the promises made to buyers."

    Lurie & Park intends to represent homebuyers unwilling to settle for partial payment.

    "Buyers of units are being told that they must agree, or opt out of the settlement by early December," added Lurie & Park associate attorney Sonia Taylor. "This is a pressure tactic that is unseemly."

    Cosmopolitan's East Tower, meanwhile, remains mired in litigation. Purchase pacts for the 800-unit high-rise are structured differently, which makes a settlement agreement unlikely, say legal experts. The fight for return deposits is expected to head to court. A sold-out East Tower represents around $112 million in deposits.

    A worsening economic outlook has many Cosmopolitan homebuyers scrambling to get out from underneath their purchases, as many face challenges finding funds and securing mortgages amid a frozen credit market. Luxury condominiums are being valued differently today than a few years ago during the real estate boom.

    Contact reporter Tony Illia at tonyillia@aol.com or 702-303-5699.

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    Lawyer 123 wrote on October 29, 2009 12:58 PM: This Article is pretty accurate, the only thing that is missing here is that the Law Offices of Sigal Chattah, along with LA Firm Girardi Keese (as in Erin Brockovich settlement)have been litigating this case with Deutche Bank, have consolidated their lawsuit with the Class Action and continue to represent the Opt Outs. Law Offices of Sigal Chattah also is representing the Inside Agents in their own lawsuit against Deutche Bank and Cosmopolitan. For more information call either Girardi Keese at (213) 481-1014 or Law Offices of Sigal Chattah at
    (702)360-6200.


    American Gaming Guru wrote on October 28, 2009 12:21 PM: This whole project was ill-conceived from the beginning.