According to Chapter 11 Bankruptcy documents filed in federal bankruptcy court, J.A. Tiberti Construction Company’s $29 million arbitration award is the largest debt owed by Bishop Gorman’s landlord: Bishop Gorman Development Corp.

The landlord refuses to take any responsibility for the debt-hole it has created and continues to blame the inability to pay construction costs for the school’s new campus on the Tiberti family.

Determining Responsibility for the Bankruptcy

Bishop Gorman Development Corp., a partnership between leadership in the Catholic Church’s Las Vegas district and local business leaders, argues that Tito Tiberti was not transparent about how much the project would eventually cost. It is alleged that the project was an “obsession” for Tiberti and ballooned the costs in an extraordinary, unnecessary manner.

Paul Hejmanowski, the attorney representing Tiberti Construction, said in a statement that blaming the Tiberti family has offended the family, who are long-time multi-million dollar donors to the school.

“Such misrepresentations are false and unworthy of a church-affiliated entity,” Heimanowski said. “The mistreatment and public misrepresentations by Bishop Gorman are an extreme personal disappointment to the Tiberti family.”

A Variety of Debtors

The unpaid debt to Tiberti comes from unpaid construction bills, professional services, and legal fees.

There are additional individuals and organizations to which Bishop Gorman Development owes money, however, Tiberti Construction Company is the largest debtor. The next largest debtor (though coming in at significantly less than the $29 million owed to the construction company) is Betty Engelstad, philanthropist, and widow of casino developer Ralph Engelstad, whose total claim is listed at $775,000.