N.Y. lawsuit allowed to proceed

Thursday, May 17, 2001 | 10:44 a.m.

A federal judge has ruled that two New York companies may proceed with one claim in their lawsuit against Park Place Entertainment Corp. of Las Vegas, one of the plaintiffs said in a Wednesday press release.

A subsidiary of Alpha Hospitality Corp., together with Catskill Development LLC, sued Park Place in New York City federal court last November. The companies signed an agreement with the St. Regis Mohawk Tribe to develop a casino at a racetrack in the Catskills in 1996. They allege Park Place engaged in a secret campaign designed to convince the tribe to dump these plans and sign on with the Las Vegas gaming giant.

A federal judge dismissed three of the lawsuit's four claims, but will permit the plaintiffs to proceed on their claims of interference with a business relationship. Alpha said it is seeking $2.1 billion in damages in connection with that claim, and said it was "very pleased with the court's decision that Catskill has property pled a claim that Park Place did interfere with the business relationship between Catskill and the tribe."

Park Place spokeswoman Debbie Munch, however, said the Las Vegas company was pleased three of the four counts were dismissed.

"The court expressed great skepticism about whether the plaintiffs could prove their case on the last count, but they thought it premature to dismiss it at this time," Munch said. "The court also noted that the fourth point might be dismissed before a trial."

Park Place announced last year plans to build a large casino resort in the Catskills, 75 miles north of New York City. The company filed an application with the Bureau of Indian Affairs in March, and approval is expected to take at least six months.