Source: Cancer institute plans lawsuit against Rhodes
Homebuilder and developer James Rhodes, whose companies filed for bankruptcy protection in March with $400 million in liabilities, will face another legal challenge, according to a public relations official with the Nevada Cancer Institute.
A law firm was prepared to file a lawsuit in Clark County District Court, seeking damages from Rhodes and his wife, Glynda, for failing to pay $11 million in pledged donations, public relations representative Dave Kirvin said.
The lawsuit was not posted on an Web site for the Clark County District Court late Monday, but Kirvin supplied a copy of the planned lawsuit and a statement from Lisa Stark, a spokeswoman for the Nevada Cancer Institute.
“This is an unfortunate situation and an action that we do not take lightly,” she said. “However, in order for us to meet the needs of our patients, supporters and citizens, we take seriously our obligations and the commitments others make to us.”
Attempts to reach a spokesman for Rhodes failed.
The document seeks a judgment for more than $10,000 and states that the institute provided Rhodes with positive publicity.
The couple presented institute representatives a scrapbook that “detailed the philanthropic reputations of others, including (New York City Mayor) Michael Bloomberg,” according to the papers.
In exchange for the pledges, “Nevada Cancer Institute provided the Rhodes with positive publicity, including press releases, numerous news articles, prominent name display at Nevada Cancer Institute, and recognition at the Nevada Cancer Institute’s annual gala, Rock for the Cure,” the papers state.
The cancer institute said it tried to secure the contributions from the Rhodeses without success over 18 months. James Rhodes contributed $600,000 of $1 million he promised, but his wife has not paid any of the $10 million she pledged, according to the papers.
The pleadings recount how Rhodes was criticized in earlier news stories. The pleadings also cite how he hired former County Commissioner Erin Kenny after she was found guilty in a bribery scheme. They mention Rhodes’ illegal campaign contributions that he made to Sen. Harry Reid, D-Nev., and former County Commissioner Dario Herrera. Herrera was later sentenced to prison for 50 months in connection with the bribery scheme.
Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.
