Business briefs for March 26, 2001

Monday, March 26, 2001 | 10:57 a.m.

Vote delayed on LVCVA food service contract

The Las Vegas Convention and Visitors Authority has delayed a vote on a new lease agreement with Aramark Sports & Entertainment Services Inc.

LVCVA board members balked at the length of the 15-year contract with Aramark, which provides kitchen and catering services at the Las Vegas Convention Center and Cashman Center.

The LVCVA estimates revenue of $145.2 million over the life of the contract, which also commits Aramark to investing $12.5 million in new food service facilities in the new South Expansion of the convention center, due for completion early next year, and $500,000 for renovations of existing facilities.

In exchange for the investment and a percentage of Aramark's gross receipts, the LVCVA offers Aramark exclusive rights to all food service sales at the facility.

The board will reconsider the contract next month and has asked the LVCVA staff to renegotiate terms of the new lease.

Sale of strip clubs at issue in lawsuit

Three North Las Vegas adult clubs and their owners sued two former potential buyers, alleging they reneged on an $8 million agreement to buy the clubs.

Edna Gail Perry, on behalf of Southern Nevada Investment Corp. doing business as the Palomino Club; Vegas Cowgirl Inc. doing business as Lacy's; and Satin Saddle Inc. doing business as Satin Saddle, sued Steve Polster and the administrator of the estate of Kenneth Rowan in Clark County District Court.

The suit alleged the defendants defaulted on their obligations under an agreement to buy the clubs when they failed to make a $50,000 monthly payment starting June 5.

The suit, which said the defendants' interest in the clubs lapsed when they defaulted on the payments, said the plaintiffs' 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.

The defendants could not be reached for comment.

Kellies of Las Vegas sues Kellies of Las Vegas

A Las Vegas adult entertainment hotline and its owners sued to stop a rival from using its trade name to advertise telephone sex services and to recover allegedly lost revenues.

In a Clark County District Court lawsuit, Kellies of Las Vegas doing business as Tricom and its owner Colleen Michael sued another entity called Kellies of Las Vegas and its alleged principal, Camillo Favaro II.

"We wanted to run an ad on the Internet Yellow Pages for our company, Kellies of Las Vegas. But we found another company by the same name Kellies of Las Vegas already listed," Michael said.

The defendants could not be reached for comment.

LV air carrier expanding commuter deals

America West Airlines has signed a new agreement and restructured another to expand its commuter network operating as America West Express in its three hubs.

Phoenix-based America West restructured its code-share agreement with Mesa Airlines, Phoenix, and signed a new one with Chautauqua Airlines, Indianapolis, that would increase its commuter jet fleet from 22 to 77 by 2005, with options to expand to as many as 129 planes.

America West officials said the new regional jets would be used to link the airline's three hubs -- Las Vegas, Phoenix and Columbus, Ohio -- to small cities within their respective regions.

The new arrangement with Mesa will add 43 jets with capacities ranging from 50 to 80 passengers with aircraft deliveries beginning in April. The Chautauqua agreement will involve operations from the company's Columbus hub.

America West is the second busiest air carrier serving McCarran behind Southwest Airlines, carrying 5.9 million passengers to and from Las Vegas in 2000.

Credit card company sues LV e-commerce operation

Visa International Service Association sued to stop a Las Vegas e-commerce company from using the Visa trademark to offer online credit card processing and payment services.

In a U.S. District Court suit, Visa, which said it owns the websites "e-visa.com" and "visabusiness.com" sued JSL Corp., alleging its "www.evisa.com" website prominently features the Visa trademark and provides a directory of online resources on some of the same categories and topics as Visa's websites.

The Foster City, Calif.-based financial services company said another Visa website "www.visa.com" is also contained in the directory of JSL's website.

The defendant could not be reached for comment.

Las Vegas franchise owner sues over failed sale

The owner of seven Fatburger franchises in Las Vegas sued the fast-food restaurants' former prospective buyer and its representative, alleging they breached an agreement to close their purchase by Jan. 17.

In a Clark County District Court suit, Kempf Enterprises Inc. sued Titan Simplex Corp. and Howard Hughes, also alleging Titan and Hughes lost their rights to prohibit Fatburger franchisor, Fatburger North America Inc., from buying the franchises when Titan failed to close its purchase on Jan. 17.

Kempf also said Titan wrongly tried to block Fatburger North America from buying the franchises by filing a lawsuit against the franchisor and Kempf in California state court.

The defendants could not be reached for comment.

Vegas beer wholesaler sues supplier

A former franchisee of Lowenbrau Beer in Southern Nevada sued its supplier, Labatt USA of Norwalk, Conn., for damages after it allegedly stopped shipping Lowenbrau beer to the wholesaler without "good cause or notice" and transferred the franchise to its rival, Coors of Las Vegas.

In a Clark County District Court lawsuit, Bonanza Beverage Co. Inc. said Labatt bought the Lowenbrau beer brand in 1999 from a former supplier to Nevada, Miller Brewing Co. The suit said Labatt agreed "for an indefinite term" to keep Bonanza as the sole wholesaler of Lowenbrau premium lager and premium dark beer for Clark, Lincoln, Nye Counties and the town of Goldfield in Esmeralda County.

But Labatt, which allegedly failed to provide a 90 day-notice before terminating Bonanza's franchise, violated the state's alcoholic beverage franchise act by entering into a franchise with Coors while it had yet to properly terminate its franchise with Bonanza, the suit alleged.

Labatt also allegedly increased the per-case price of Lowenbrau beer by more than 60 percent to $22.50 a case from $14.50 a case, causing the beer's sales figures to plummet, the suit said. Bonanza, which said it sold 59,379 cases in 1998 and more than 50,000 cases during the first nine months of 1999, said it sold only 4,491 cases from January through October 2000.

The defendant could not be reached for comment.

Trademark at issue in lawsuit

Hertz Publishing Inc. sued to stop a Las Vegas internet company from using its "ILoveVegas" trademark to offer free electronic mail.

In a U.S. District Court lawsuit, Hertz Publishing, which said it operates a website called "www.ilovevegas.com" and owns What's On In Las Vegas magazine, sued LLLV Inc.

Hertz alleges the defendant began using the "I Love Vegas" name to identify an information portal that offers free e-mail at LLLV's alleged website, "ilovevegas.zzn.com."

But Brian Marotta, LLLV's owner, denied the allegations. "The 'ilovevegas.zzn.com' website has nothing to do with us. We own a website called 'www.localslovelasvegas.com,' which offers information about Las Vegas for locals and tourists."