Jersey's Waterfront Enterprise Board has began an investigation after it was revealed Harcourt Developers are facing law suits in America and Ireland.
WEB say no development agreement will be made until matters are resolved.
This week the States agreed WEB should lease what's known as the Esplanade Quarter of the Waterfront to Harcourt for 150 years so they can develop the area.
But WEB say they, and the Chief Minister, didn't know at that time of the debate that Harcourt are fighting a law suit in Las Vegas.
They say they were surprised and disappointed not to have been told and are now carrying out an investigation into the litigation.
Meanwhile, Harcourt say they are currently working on around 100 projects in 11 different countries and legal disputes are not uncommon in the building industry.
They say the disputes have no bearing on their plans for Jersey and they are 100% committed to developing a world-class Waterfront.
Harcourt were the developers for Liberation Station, the new apart-hotel and the new Jersey Tourism building - all of which is on the old abbatoir site.
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