Harcourt Nevada, a subsidiary of Harcourt Developments is currently building a 600m euro scheme in Las Vegas, called Sullivan Square.

The company contracted a local developer Glen, Smith and Glen (GSG) as a 40% minority partner in the project, which involves construction of 1,300 apartments, office buildings, a 1.5 acre park and 25 shops in one of America's premier resorts.

However, GSG filed two claims in a Nevada court, alleging that there had been a breach of fiduciary duty and that Harcourt was attempting to dilute its involvement in the scheme.

The potential court action set off alarm bells as far away as Jersey, in the Channel Islands, where Harcourt Developments is involved in another high profile project, Esplanade Quarter. Jersey's parliament ordered an audit of Harcourt's finances in relation to the St Helier project and is requiring that its preferred developer agreement be reconfirmed.

Harcourt Developments released a statement this week, which said: "Given the level of recent press interest in the matter, we would like to communicate the progress of the court action against Harcourt's subsidiary in Las Vegas. On August 7, 2008, the order of the Clark County District Court dismissed the claims of breach of contract and breach of fiduciary duty made against Harcourt Nevada."

One further claim remains against the Nevada subsidiary, that the company failed to repay GSG $2.1m which it had spent on the project. However, Harcourt "unequivocally denies these claims were within the approved budget and the approved business plan".

A counter claim is currently being prepared.

The company is also facing a suit due to be heard in Dublin's Commercial Court next month. Three individuals claim to have been excluded from the partnership set up to develop the Jersey scheme.