Bankrupt Mesquite casino operator sued by former employees

Friday, May 26, 2000 | 10:57 a.m.

Two former employees of the defunct Mesquite Star Hotel & Casino are seeking more than $500,000 in restitution for unpaid health insurance and wage claims.

Mesquite Star was owned by Nevstar Gaming & Entertainment Corp. of Las Vegas, which filed for Chapter 11 bankruptcy protection in December. But a bankruptcy judge dismissed the petition, forcing the hotel-casino to close on March 6. All the property at the casino, except for the building, was liquidated.

Two former workers, Bonna Johnson and John Paul, who said they are acting in behalf of the 68 employees who were terminated when Nevstar closed, filed a lawsuit Thursday in Clark County District Court, alleging Nevstar allowed their health insurance coverage to lapse and failed to reimburse them for health insurance outlays.

"A lot of workers were forced to pay out-of-pocket because they no longer have the health insurance coverage and the insurance provider considers the workers to be personally liable for treatments," said Richard Dreitzer, the plaintiffs' attorney.

The plaintiffs said Nevstar specifically reassured them they would continue to receive uninterrupted health insurance coverage despite the company's closure, if they continued to pay their health insurance premiums.

The suit said Nevstar's reassurances were "intended to induce the plaintiffs to continue to provide premiums to Nevstar" and to refrain from taking legal action against the company. The defendants could not be reached for comment.

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