THE Waterfront Enterprise Board has commissioned lawyers to investigate the multi-million dollar lawsuit filed against developers Harcourt in Las Vegas.

And they say that no deal will be signed until bank guarantees are in place to protect the States’ interests, and until an updated report on Harcourt’s finances has been completed.

Following a meeting on Friday, WEB put out a statement saying they were ‘surprised and disappointed’ that they had not been told about the court case, but welcomed the States’ approval of the development.

The States agreed in principle the development plans for the new Waterfront business block on Thursday – but it was revealed shortly afterwards that the developers had been hit by an $800 million lawsuit concerning a development in Nevada.

Deputy Gerard Baudains had raised the lawsuit during the debate, but Chief Minister Frank Walker denied it existed. At the end of the sitting he apologised to Deputy Baudains, saying that Harcourt had confirmed it to him after the vote had been held.

WEB managing director Stephen Izatt (pictured) said that over the next couple of months he expected to receive the report into the Nevada litigation, which will be compiled by law firm Carey Olsen, as well as an updated financial capacity assessment. Once those and independent bank guarantees are in place, he said, the development agreement with Harcourt could be signed.

He said that would secure the States’ position.

Harcourt, he said, had told the Chief Minister on 20 May that there was no court case, but on the same date their attorneys in Las Vegas were served papers for the $800m lawsuit. But Mr Izatt said that the Dublin office were not told about the lawsuit until two days later – after they had denied there were any legal issues.

‘When we raised these reports with Harcourt, Harcourt provided both the Chief Minister and WEB with written assurances that no action had been filed,’ said Mr Izatt.

‘The Chief Minister relayed these assurances to the States during yesterday’s debate. We were surprised and disappointed not to have been informed of the change in circumstances relating to this matter.

‘Carey Olsen is acting for us in this project and we have requested them to undertake an investigation of the litigation. The States and the public can be assured that WEB will not enter into any development agreement with Harcourt until these matters have been resolved to the full satisfaction of WEB, the Chief Minister and the Treasury Minister.’