Fashion Place sued for $6.6 million in unpaid bills

Since Fashion Place mall opened the new 138,000-square-foot Nordstrom store in March, a roofer, general contractor, cabinetmaker, asphalt company and tile company have sued the mall for some $6.6 million in unpaid bills.

But an attorney who represents most of the construction companies said that he expects an out-of-court settlement of the cases to be inked by noon Monday.

Cafall Tile Inc. is the most recent company to file papers, on Tuesday, asking a 3rd District Court judge to foreclose on a mechanic's lien originally filed with the court May 19.

Fashion Place owes Cafall Tile $183,791, court papers state, and the tile company requests the mall be foreclosed and sold to satisfy the amount due, plus interest, attorneys' costs and fees.

Fashion Place Mall LLC is owned by Chicago-based General Growth Properties Inc., the second largest mall owner in the United States, which filed for Chapter 11 bankruptcy protection in April.

A Salt Lake-based vice president for General Growth Properties declined to comment about the legal actions against Fashion Place. He referred questions to General Growth's spokesman in Chicago.

The spokesman, Jim Graham, said he didn't have a comment, except to remind people that with large-scale construction projects, liens are "not unusual."

"We're working with our creditors to resolve the bankruptcy, and many of those questions of our debts will be answered in that way," Graham said.

Kent Scott is representing Cafall Tile, Clark's Quality Roofing Inc. (seeking foreclosure on mechanic's lien to recover $1.1 million), Metal Line Fabrication Inc. (seeking foreclosure on a lien to recover $14,168), and Camco Construction Inc. (seeking $4.6 million).

"The mall is owned by a lot of different people," Scott said. "If you go to the plat, GGP owns most of it, but Sears owns its own little place, Dillards owns its own little place and Nordstrom owns its own little place."

In addition to the liens against General Growth, Scott has filed liens against Seattle-based Nordstrom Inc. and Marquette Associates LP, which represents Dillards, based in Little Rock, Ark.

The settlement Scott is working on with General Growth will release Nordstrom and Dillards from the liens and reduce the amount General Growth owes on its liens. "The contractors are going to get paid most of their money within the next two weeks," he said.

Contractors have been paid, interestingly, since General Growth filed Chapter 11. But debt incurred before the bankruptcy hasn't been settled.