Southwest Gas trial set for November

Friday, May 25, 2001 | 11:31 a.m.

A federal judge in Phoenix on Wednesday denied a request to reconsider a December decision to dismiss state and federal racketeering claims against the dominant natural gas utility in Southern Nevada.

The Arizona Republic reported that U.S. District Judge Roslyn Silver dismissed charges filed under the Racketeer Influenced Corrupt Organizations Act in the case, filed by Houston-based Southern Union Co. in 1999 against Southwest Gas Corp., Las Vegas, ONEOK Inc., Tulsa, Okla., and Arizona Corporation Commissioner James Irvin.

The corruption charges could have led to a tripling of the $750 million in damages sought against the defendants, the Republic said.

Other civil charges, including fraud and breach of contract, still stand. A trial has been set for Nov. 12 in Phoenix before Silver, the Republic reported.

"We are extremely pleased that the court has dismissed all of Southern Union's federal and state RICO claims against Southwest and its officers and directors," said Thomas Hartley, Southwest's chairman of the board. "For months, Southern Union has overstated through press releases and in briefings the substance of its allegations and its alleged damages."

A representative of Southern Union could not be reached for comment today.

The suit was a result of Southern Union's failed bid in 1999 to acquire Southwest Gas, which is Nevada's and Arizona's largest supplier of natural gas. It alleges that Irvin and former Corporation Commission Executive Secretary Jack Rose conspired with ONEOK Inc., to persuade Southwest's board to approve its offer to buy Southwest over a higher bid submitted by Southern Union.