Culinary wins legal decision against Adelson

Monday, Jan. 22, 2001 | 11:14 a.m.

The Culinary Union's campaign to block construction of Sheldon Adelson's Venetian megaresort on the Las Vegas Strip did not violate an old contract between the union and Adelson's Las Vegas Sands Inc., a federal judge ruled.

U.S. District Judge Philip Pro issued the ruling last week in a high-profile lawsuit Adelson filed against the Culinary in 1997 challenging the Culinary's efforts to stall or kill the Venetian.

The union and Adelson have been at odds since Adelson closed the Las Vegas Sands in 1996. The Sands had a contract with the union, but Adelson has refused to recognize the union as the bargaining agent for his employees at the Venetian, which he built at the Sands site.

The 1997 lawsuit accused the union of "applying political pressure to delay or deny the necessary licenses, permits and approvals in an effort to force LVSI to recognize the union."

Adelson accused the Culinary of unfairly pressuring the Clark County Commission, the state Gaming Control Board and the Nevada Gaming Commission. He claimed the union also worked against the Venetian by contacting Adelson's business associates like finance company Goldman, Sachs & Co.

Adelson said these activities violated the union's contract with Las Vegas Sands in which the union agreed not to engage in "economic action or interference with the employer's business."

But Pro ruled the union's campaign was against Venetian Casino Resort LLC, another Adelson company, and was not directed against Las Vegas Sands.

"The meaning of the term 'employers' business' is clearly limited to only LVSI's business as the Sands Hotel Casino and not the business of LVSI as a whole," Pro ruled.

He ordered the parties to engage in settlement talks for other outstanding issues in the lawsuit.