After three years of legal wrangling, a jury has delivered a verdict in the construction lawsuit surrounding The Ritz-Carlton Hotel and Villas, a luxurious project in Paradise Valley with an estimated value of $2 billion. In the proceedings ending on November 4, the jury sided with the Scottsdale developer Five Star Development on the majority of claims, as reported byABC 15 News. The dispute ignited in 2021 when issues of non-payment arose between Five Star Development and PWI Construction Inc., the Las Vegas-based general contractor initially chosen to lead the project.
The crux of the contention centered on over $7 million in liens filed by PWI against Five Star’s property, alleging missed payments. In return, Five Star Development lodged a breach of contract lawsuit against the contractor, a situation that escalated to fully stop work on the development in the latter half of 2021. Joel Rhiner, an attorney with Stein Ray LLP and representing Five Star, told thePhoenix Business Journal, “The contract between the two parties was signed in June of that year.”
Amidst counterclaims and legal back-and-forth, the jury found that Five Star owed only $428,869 of the $7 million claimed in liens by PWI – a fraction of the amount contended. The specifics of the jury’s decision or further commentary from PWI Construction were not immediately available for disclosure.
Despite the setbacks, the consortium seems to have steadily clawed back progress. In March, it announced the addition of Mott 32, a high-end Chinese restaurant, to the site. This detail was highlighted in an announcement by The Solvere Group, with principal Brendan Mann stating, “All 80 of the condominium units were presold, and a small number of residents are now living in their homes, while others are moving in,” in a statement obtained byPhoenix Business Journal.
Even as litigation has concluded in favor of Five Star, construction continues with a new estimated completion date for the hotel set for fall 2025.
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