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Klewin Building Co.

New York, NY: (Jun-14-07) Seneca Gaming Corp. filed charges against Klewin Building Co., an affiliated business, as well as TD Banknorth, over a construction dispute regarding its Niagara Falls hotel and casino complex. The two-year dispute erupted in August 2005 when Seneca fired Klewin, charging that it failed to pay subcontractors with more than $14.5 million that had been set aside for that purpose. Klewin countersued, alleging that the gaming company mounted a campaign to steal business and destroy its credit.

In a settlement reached, Klewin Building Co. agreed to pay Seneca Gaming $3.6 million to settle its dispute. The settlement, which was reached a month after all three parties were scheduled to begin an arbitration proceeding over the dispute, gives Seneca about a quarter of the $14.6 million that the agreement says Seneca is entitled to receive from Klewin. [CASINO CITY TIMES: CONSTRUCTION DISPUTE]


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Published on Jun-15-07


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