Litigation heats up over NLV strip clubs

Tuesday, April 10, 2001 | 11:17 a.m.

A potential buyer of three North Las Vegas adult clubs has sued the clubs and their owners to stop them from violating the rights it claims to have to acquire the clubs.

Biloxi Investments, which said the clubs' former would-be buyers Steve Polster and Kenneth Rowan allegedly assigned and conveyed to Biloxi their rights and title to the clubs on March 13, 2000, sued Edna Gail Perry, Perry Family Survivors Trust and the Paul and Edna Perry Family Trust.

The defendants are identified in the Clark County District Court lawsuit as co-owners of the Palomino Club, Lacy's and Satin Saddle, a collection of clubs clustered on Las Vegas Boulevard.

Biloxi alleged Polster and Rowan agreed on April 21 to sell it the clubs, seven parcels of land, two warehouses and one retail operation for $8 million.

Perry and the three clubs had earlier sued Polster and Rowan, alleging they reneged on an $8 million agreement to buy the clubs when they allegedly failed to make a $50,000 monthly payment starting June 5.

Perry, who said the defendants' interest in the clubs lapsed when they defaulted on the payments, said her efforts to sell the clubs to other buyers are being hampered by an alleged notice of interest Polster signed on Dec. 7, claiming the plaintiffs had pledged to him an interest in the clubs.

But Biloxi, in its lawsuit, disputed Perry's allegations, saying Polster and Rowan had made the $50,000 payment -- which it claims was acknowledged by Perry on April 17, 2000 -- and were allegedly entitled to take possession of the clubs on April 21.

Biloxi said Perry failed to relinquish the property and is seeking an order to stop Perry, whom it claims is negotiating to sell the property to other buyers, from violating its rights to the property.

Perry declined comment on Biloxi's allegations.