Former Venetian C2K nightclub official sues

Grace Leong

Wednesday, Jan. 3, 2001 | 9:57 a.m.

A former official of the C2K nightclub at the Venetian hotel-casino who claims to own 50 percent of the club sued to recover more than $1.5 million in damages from C2K's owner, David Horowitz, and his company, Silver Hammer of Nevada LLC.

Stephen Davidovichi, in a Clark County District Court lawsuit filed last week, alleged the defendants breached their fiduciary duty to him as a partner when they gave up the lease and caused the closure of the nightclub -- which he said is valued at more than $3 million -- allegedly without compensating him for his interests.

The suit alleged the nightclub "initially operated under the auspices of Silver Hammer alone" because the defendants' attorneys allegedly told him it would be "quicker and easier to get all licensing if such licenses were originally just in the name of Silver Hammer."

Horowitz paid $5 million through his two companies, Silver Hammer and Sterling Silver of Nevada, to H & H of Nevada to operate the nightclub for 20 years. H & H had leased the space from the Venetian.

Davidovichi, who said he was "rendered unemployed and lost significant income," alleged his reputation was also blemished because the defendants gave the public the impression that "the operation of the nightclub was somehow improper and (he) was in some manner responsible for the nightclub's closing."

John Curtas, Horowitz's attorney, denied the allegations, saying Davidovichi's suit is an "attempt to profit from an unsuccessful enterprise."

"Davidovichi was employed only as a consultant to the nightclub. That's all he insisted on and wanted to be. And now for him to claim money damages from the closing of an enterprise for which he was only an independently paid consultant is ludicrous," he said.

Davidovichi, who said he was a former general manager of the Ra Nightclub at the Luxor hotel-casino before joining C2K, said he rejected an offer in 1998 of a substantial raise and partial ownership of the Ra club from his then employers to manage C2K.

He denied, in the suit, being involved in "certain controversies" in which the defendants were allegedly involved with the landlord and owners of the Venetian hotel.

Venetian officials shut down C2K nightclub on Aug. 30 after receiving numerous complaints about rampant drug abuse, inappropriate sexual behavior and violence. They said the club was shut down because they believed problems there would cost the hotel-casino its gaming license.

Horowitz then sued the hotel-casino, alleging it violated his rights because they didn't notify him of the eviction. But Venetian attorneys claimed they only had to notify H & H. A settlement has since been reached.

Venetian officials said C2K is now solely owned and operated by H & H since the club reopened on Nov. 10. They declined comment on the terms of the settlement.

"We've settled the matter with the Venetian and H & H. One of the main settlement terms is that Silver Hammer cease operating the C2K nightclub. We've since gone our separate ways," Curtas said.