Attorneys await high court ruling on Sphere non-payment lawsuit
Attorneys for the MSG Sphere and a cost consultant for the Sphere project are awaiting a Nevada Supreme Court ruling to determine if a key Madison Square Garden Entertainment Co. executive can be questioned about a $3.1 million debt the consultant alleges he’s owed.
The ruling stems from a lawsuit filed in September 2021 by Hawaii-based Rider Levett Bucknall Ltd. that accuses Sphere management of withholding payment for completed work by the cost consultant.
According to court filings, Rider Levett Bucknall was brought in to advise Sphere management on the costs of several aspects of the project. But the consultant accused Sphere officials of failing to pay for completed work.
Sphere officials countersued the consultant.
Among the allegations were that Sphere officials requested “the world’s longest bar” to be built in the venue, but that project was scratched by the developer after work was completed.
This week, Clark County District Court Judge Nancy Allf said she is awaiting a determination from the Supreme Court on whether attorneys for Rider Levett Bucknall can pursue a deposition from James Dolan, executive chairman and CEO of Madison Square Garden Entertainment and Sphere Entertainment, the developers of the Sphere. The Sphere moved to block any deposition, which was affirmed in Clark County, but appealed to the high court.
In the four-count civil suit filed nearly two years ago, defendant MSG Las Vegas LLC was accused of breach of contract, breach of the covenant of good faith and fair deadline, unjust enrichment and for the enforcement of a mechanic’s lien release bond.
The lawsuit said a contract was signed Nov. 4, 2016, with an amendment Jan. 15, 2018. The plaintiff sent requests for payment of $555,320 in March 2020, $538,000 in April 2020, and $468,385 in May 2020. The lawsuit says only $300,000 was paid.
The lawsuit accused MSG of “failing to pay for all work plaintiff performed under the contracts and pursuant to defendants’ direction,” and that total damages were $3.1 million.
MSG also got a protective order from Allf that prohibits representatives from either side from speaking publicly about the case, and some court documents were redacted.
However, a MSG spokesperson issued a statement late Friday: “This lawsuit has no merit as the filings clearly show RLB was fired for cause.”
The $2.3 billion, 17,600-seat Sphere is scheduled to open in late September with the first of 25 concerts by rock band U2. An hourlong feature film, “Postcard from Earth,” debuts Oct. 6.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
